DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Jul. 30, 2016 | Aug. 30, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | METHODE ELECTRONICS INC | |
Entity Central Index Key | 65,270 | |
Current Fiscal Year End Date | --04-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 36,953,433 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jul. 30, 2016 | Apr. 30, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 249.3 | $ 227.8 |
Accounts receivable, net | 155.8 | 175.5 |
Inventories: | ||
Finished products | 12.5 | 11.9 |
Work in process | 8.9 | 9.6 |
Materials | 44.8 | 44.7 |
Net inventory | 66.2 | 66.2 |
Deferred income taxes | 0 | 11.8 |
Prepaid expenses and other current assets | 16.6 | 14.9 |
TOTAL CURRENT ASSETS | 487.9 | 496.2 |
PROPERTY, PLANT AND EQUIPMENT | 325.3 | 325.9 |
Less allowances for depreciation | 235 | 232.9 |
Net property, plant and equipment | 90.3 | 93 |
GOODWILL | 1.7 | 1.7 |
INTANGIBLE ASSETS, net | 8.4 | 8.9 |
PRE-PRODUCTION COSTS | 13.2 | 9.5 |
DEFERRED INCOME TAXES | 36.7 | |
DEFERRED INCOME TAXES | 27.7 | |
OTHER ASSETS | 17.9 | 18.9 |
Total other long-term assets | 77.9 | 66.7 |
TOTAL ASSETS | 656.1 | 655.9 |
CURRENT LIABILITIES | ||
Accounts payable | 69.3 | 68.2 |
Other current liabilities | 35.9 | 49.7 |
TOTAL CURRENT LIABILITIES | 105.2 | 117.9 |
LONG-TERM DEBT | 54 | 57 |
OTHER LIABILITIES | 2.6 | 2.9 |
DEFERRED COMPENSATION | 8.4 | 8 |
SHAREHOLDERS’ EQUITY | ||
Common stock, $0.50 par value, 100,000,000 shares authorized, 38,300,057 and 38,181,985 shares issued as of July 30, 2016 and April 30, 2016, respectively | 19.2 | 19.1 |
Additional paid-in capital | 117.1 | 112.3 |
Accumulated other comprehensive income | (15.1) | (8.4) |
Treasury stock, 1,346,624 shares as of July 30, 2016 and April 30, 2016 | (11.5) | (11.5) |
Retained earnings | 376.2 | 358.6 |
TOTAL EQUITY | 485.9 | 470.1 |
TOTAL LIABILITIES AND EQUITY | $ 656.1 | $ 655.9 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 30, 2016 | Apr. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.5 | $ 0.5 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 38,300,057 | 38,181,985 |
Treasury stock (in shares) | 1,346,624 | 1,346,624 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2016 | Aug. 01, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 191.9 | $ 203.3 |
Cost of products sold | 137.8 | 149.7 |
Gross profit | 54.1 | 53.6 |
Selling and administrative expenses | 27.4 | 23.2 |
Income from operations | 26.7 | 30.4 |
Interest income, net | 0 | (0.2) |
Other income, net | 0 | (0.3) |
Income before income taxes | 26.7 | 30.9 |
Income tax expense | 5.5 | 7.4 |
NET INCOME ATTRIBUTABLE TO METHODE ELECTRONICS, INC. | $ 21.2 | $ 23.5 |
Amounts per common share attributable to Methode Electronics, Inc.: | ||
Basic (in dollars per share) | $ 0.57 | $ 0.60 |
Diluted (in dollars per share) | 0.57 | 0.60 |
Cash dividends: | ||
Common stock (in dollars per share) | $ 0.09 | $ 0.09 |
Weighted average number of Common Shares outstanding: | ||
Basic (in shares) | 37,322,548 | 38,904,743 |
Diluted (in shares) | 37,469,292 | 39,030,798 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2016 | Aug. 01, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 21.2 | $ 23.5 |
Foreign currency translation adjustment | (6.7) | (6.1) |
Comprehensive income attributable to Methode Electronics, Inc. | $ 14.5 | $ 17.4 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2016 | Aug. 01, 2015 | |
OPERATING ACTIVITIES | ||
Net income | $ 21.2 | $ 23.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for depreciation | 5.2 | 5.6 |
Amortization of intangibles | 0.6 | 0.6 |
Amortization of stock awards and stock options | 3.6 | 0.4 |
Changes in operating assets and liabilities | 3.8 | (11.1) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 34.4 | 19 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (4.2) | (5.9) |
NET CASH USED IN INVESTING ACTIVITIES | (4.2) | (5.9) |
FINANCING ACTIVITIES | ||
Taxes paid related to net share settlement of equity awards | (0.3) | (6.9) |
Proceeds from exercise of stock options | 0.9 | 0 |
Tax benefit from stock option exercises | 0.3 | 3.8 |
Cash dividends | (3.3) | (3.5) |
Repayment of borrowings | (3) | (3) |
NET CASH USED IN FINANCING ACTIVITIES | (5.4) | (9.6) |
Effect of foreign currency exchange rate changes on cash | (3.3) | (3.7) |
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 21.5 | (0.2) |
Cash and cash equivalents at beginning of period | 227.8 | 168.1 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 249.3 | $ 167.9 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Jul. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Methode Electronics, Inc. was incorporated in 1946 as an Illinois corporation and reincorporated in Delaware in 1966. As used herein, “we,” “us,” “our,” the “Company” or “Methode” means Methode Electronics, Inc. and its subsidiaries. Our business is managed and our financial results are reported on a segment basis, with those segments being Automotive, Interface, Power Products and Other. The condensed consolidated financial statements and related disclosures as of July 30, 2016 and results of operations for the three months ended July 30, 2016 and August 1, 2015 are unaudited, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The April 30, 2016 condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, these financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These financial statements should be read in conjunction with the financial statements included in our Form 10-K for the year ended April 30, 2016 , filed with the SEC on June 23, 2016. Results may vary from quarter to quarter for reasons other than seasonality. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Jul. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiples provisions intended to simplify various aspects of the accounting for share-based payments. The amendments in this update are effective for annual periods beginning after December 15, 2016, which is our fiscal 2018, which will begin on April 30, 2017. The Company is currently evaluating the impact of the new requirements on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The core principle is that a company should recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting revenue gross versus net), which clarifies gross versus net revenue reporting when another party is involved in the transaction. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing, which amends the revenue guidance on identifying performance obligations and accounting for licenses of intellectual property. There are two transition methods available under the new standard, either full retrospective or modified retrospective. The standard will be effective for us in the first quarter of fiscal 2019. Earlier adoption is permitted only for annual periods beginning after December 15, 2016. Management is still assessing the impact of adoption on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 Leases, Accounting Standard Codification (ASC ) 842, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e lessees and lessors). The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognize based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. ASC 842 supersedes the previous leases standard, ASC 840 Leases. The amendments in this update are effective for fiscal years beginning after December 15, 2018, which is our fiscal 2020, beginning on April 28, 2019. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this update are effective for fiscal years beginning after December 15, 2017, which is our fiscal 2019, beginning on April 29, 2018. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17 Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This guidance simplifies the balance sheet classification of deferred taxes. Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. This amendment simplifies the presentation to require that all deferred tax liabilities and assets be classified as noncurrent on the balance sheet. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction. The guidance was applied prospectively at the beginning of our current fiscal year which began on May 1, 2016. Prior period information was not adjusted. In September 2015, the FASB issued ASU 2015-16 Business Combinations Simplifying the Accounting for Measurement-Period Adjustments. The standard requires that an acquirer recognize measurement-period adjustments in the period in which the adjustments are determined. The income effects of such measurement-period adjustments are to be recorded in the same period’s financial statements but calculated as if the accounting had been completed as of the acquisition date. The impact of measurement-period adjustments to earnings that relate to prior period financial statements are to be presented separately on the income statement or disclosed by line item. The amendments in this update are effective for fiscal years beginning after December 15, 2016, which is our fiscal 2018, which will begin on April 30, 2017. There is currently no impact to the Company expected upon adoption. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This ASU requires an entity to measure inventory at the lower of cost and net realizable value, rather than at the lower of cost or market. The amendments in this update are effective for fiscal years beginning after December 15, 2016, which is our fiscal 2018, which will begin on April 30, 2017. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In May 2015, the FASB issued ASU 2015-7, Fair Value Measurement: Disclosure for Investments in Certain Entities that calculates net asset value per share (or its Equivalents). This amendment removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net value asset per share. This new guidance was effective for interim and annual periods beginning after December 15, 2015. The adoption of this standard in fiscal 2017 did not have an impact on our consolidated financial statements. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Jul. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS We review our goodwill and other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable, and at least annually in accordance with ASC No. 350, “Intangibles — Goodwill and Others”. The values assigned to goodwill and intangible assets are normally based on estimates and judgments regarding expectations for the success and life cycle of products and technologies acquired. A severe decline in expectations could result in significant impairment charges, which could have a material adverse effect on our financial condition and results of operations. The following table shows the roll-forward of goodwill in the financial statements as of July 30, 2016 : As of July 30, 2016 Power Interface Products Total Balance as of April 30, 2016 $ 0.7 $ 1.0 $ 1.7 Foreign currency translation — — — Balance as of July 30, 2016 $ 0.7 $ 1.0 $ 1.7 The following tables present details of the Company’s intangible assets: As of July 30, 2016 Wtd. Avg. Remaining Accumulated Amortization Gross Amortization Net Periods (Years) Customer relationships and agreements $ 16.3 $ 15.4 $ 0.9 7.5 Trade names, patents and technology licenses 25.8 18.3 7.5 2.2 Covenants not to compete 0.1 0.1 — 1.2 Total $ 42.2 $ 33.8 $ 8.4 As of April 30, 2016 Wtd. Avg. Remaining Accumulated Amortization Gross Amortization Net Periods (Years) Customer relationships and agreements $ 16.3 $ 15.3 $ 1.0 7.8 Trade names, patents and technology licenses 25.8 17.9 7.9 2.4 Covenants not to compete 0.1 0.1 — 1.4 Total $ 42.2 $ 33.3 $ 8.9 The estimated aggregate amortization expense for the current fiscal year and each of the four succeeding fiscal years is as follows: 2017 $2.3 2018 $2.2 2019 $2.1 2020 $0.2 2021 $0.1 As of July 30, 2016 and April 30, 2016 , the trade names, patents and technology licenses include $1.8 million of trade names that are not subject to amortization. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jul. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company evaluated all available positive and negative evidence, including past operating results and projection of future taxable income and determined it is more likely than not that expected future taxable income will be sufficient to utilize substantially all of our foreign, federal and U.S. state net deferred tax assets. The Company maintained a valuation allowance of $1.3 million at July 30, 2016 and April 30, 2016 related to certain state and federal net operating loss carryovers and expects to continue to maintain this allowance until we determine that these deferred tax assets are more likely than not realizable. At July 30, 2016 , we had available $2.1 million of federal and $85.8 million of state net operating loss carry forwards (having a tax benefit of $0.7 million and $3.7 million , respectively) and $0.9 million of foreign tax credit carry forwards. If unused, the U.S. federal net operating loss carry forwards will expire in the fiscal years 2018 through 2031. The state net operating loss carry forwards will expire in the fiscal years 2017 through 2036. The foreign tax credits will expire in the fiscal years 2023 through 2025. The tax laws of Malta provide for investment tax credits of 30% of qualified expenditures. Unused credits of $14.4 million as of July 30, 2016 can be carried forward indefinitely. We record investment tax credits using the "flow through" method. The Company recognized an income tax provision of $5.5 million and $7.4 million for the three months ended July 30, 2016 and August 1, 2015 , respectively. The Company's effective tax rate was 20.6% and 23.9% for the three months ended July 30, 2016 and August 1, 2015 , respectively. The income tax provision for the three months ended July 30, 2016 and August 1, 2015 is lower than the U.S. statutory rate primarily due to foreign investment tax credits and foreign operations with lower statutory rates. We record interest and penalties accrued related to the unrecognized tax benefits in the provision for income taxes. We had approximately $0.1 million accrued at July 30, 2016 for the payment of interest and penalties. The total unrecognized tax benefit as of July 30, 2016 was $1.2 million. The Company and all of its domestic subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. Our foreign subsidiaries file income tax returns in certain foreign jurisdictions since they have operations outside the U.S. The federal and state statute of limitations remains open for the fiscal year ended April 27, 2013. |
COMMON STOCK AND STOCK-BASED CO
COMMON STOCK AND STOCK-BASED COMPENSATION | 3 Months Ended |
Jul. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
COMMON STOCK AND STOCK-BASED COMPENSATION | COMMON STOCK AND STOCK-BASED COMPENSATION In fiscal 2016, the Compensation Committee of the Board of Directors authorized a new long-term incentive program for key employees consisting of performance-based Restricted Stock Awards (“RSAs”) and time-based Restricted Stock Units (“RSUs”). On the first quarter of fiscal 2017, the Compensation Committee awarded RSAs and RSUs to our new Chief Financial officer under the long term incentive program. He is eligible to earn 24,000 RSA shares at threshold performance, 48,000 shares at target performance and 72,000 shares for maximum performance. In addition, he was awarded 32,000 RSUs. In the aggregate, the number of RSAs earned will vary based on performance relative to established goals for fiscal 2020 adjusted EBITDA, with 50% of the target shares earned for threshold performance (representing 411,000 shares), 100% of the target shares earned for target performance (representing 822,000 shares) and 150% of the target shares earned for maximum performance (representing 1,233,000 shares). At the target level of performance, the expected expense for the RSAs over the five -year period will be $24.8 million. During the three months ended July 30, 2016, the Company recorded $1.3 million in compensation expense related to the RSA's. There was no compensation expense recorded for the RSA's for the three months ended August 1, 2015. As of July 30, 2016, the Company is recording the RSA compensation expense based on target performance. In future periods, if management makes a determination that exceeding the target is probable for fiscal 2020, a catch-up adjustment to compensation expense will be recorded in that period. In addition, if management makes a determination that it is probable of not exceeding the target for fiscal 2020, a reversal of expense will be recorded in that period. These amounts could be material to the financial statements. The Company also granted 608,000 RSU's to key employees. The RSU’s are subject to a five -year vesting period, with 30% vesting on each of April 28, 2018 and April 27, 2019 and 40% vesting on May 2, 2020. The total expense for the RSU's is expected to be $18.5 million through 2020. During the three months ended July 30, 2016, the Company recorded $1.3 million of compensation expense related to the RSU's. There was no compensation expense recorded for the RSU's for the three months ended August 1, 2015. During the first quarter of fiscal 2017, the Company issued 27,000 shares of common stock to our independent directors, all of which vested immediately upon grant. We recorded $1.0 million of compensation expense related to these shares during the three months ended July 30, 2016. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Jul. 30, 2016 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Basic net income per share is calculated by dividing net income attributable to Methode shareholders by the weighted average number of common shares outstanding for the applicable period. Diluted net income per share is calculated after adjusting the denominator of the basic net income per share calculation for the effect of all potentially dilutive stock compensation awards outstanding during the period. The following table sets forth the computation of basic and diluted net income per share: Three Months Ended July 30, August 1, Numerator - net income attributable to Methode Electronics, Inc. $ 21.2 $ 23.5 Denominator: — — Denominator for basic net income per share-weighted average shares outstanding and vested/unissued restricted stock awards 37,322,548 38,904,743 Dilutive potential common shares-employee and director stock options, restricted stock awards and restricted stock units 146,744 126,055 Denominator for diluted net income per share 37,469,292 39,030,798 Net income per share: Basic $ 0.57 $ 0.60 Diluted $ 0.57 $ 0.60 For the three months ended July 30, 2016 , options to purchase 138,500 shares have been excluded in the computation of diluted net income per share because the exercise price was greater than the average market price for those periods, and therefore, would have been anti-dilutive. In addition, 158,500 shares have been excluded because the exercise price was greater than the average market price for the three months ended August 1, 2015, as those shares would have been anti-dilutive as well. RSAs for 822,000 shares have been excluded in the computation of diluted net income per share for the three months ended July 30, 2016, as these awards are contingent on the Company's full year performance in fiscal 2020. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Jul. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We are a global manufacturer of component and subsystem devices. We design, manufacture and market devices employing electrical, electronic, wireless, sensing and optical technologies. Our components are found in the primary end markets of the automotive, appliance, communications (including information processing and storage, networking equipment, wireless and terrestrial voice/data systems), aerospace, rail and other transportation industries, and the consumer and industrial equipment markets. ASC No. 280, “Segment Reporting” establishes annual and interim reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM, as defined by ASC No. 280, is the Company’s President and Chief Executive Officer (“CEO”). We have multiple operating segments that are aggregated in four reportable segments. Those segments are Automotive, Interface, Power Products and Other. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile Original Equipment Manufacturers ("OEMs"), either directly or through their tiered suppliers. Our products include integrated center consoles, hidden switches, ergonomic switches, transmission lead frames and sensors which incorporate magneto-elastic sensing and other technologies that monitor the operation or status of a component or system. The Interface segment provides a variety of copper and fiber-optic interface and interface solutions for the aerospace, appliance, commercial food service, computer, construction, consumer, material handling, medical, military, mining, networking, point of sales, storage, and telecommunications markets. Solutions include conductive polymers, connectors, custom cable assemblies, industrial safety radio remote controls, optical and copper transceivers, and solid-state field effect consumer touch panels. Services include the design and installation of fiber optic and copper infrastructure systems, and manufacturing active and passive optical components. The Power Products segment manufactures braided flexible cables, current-carrying laminated bus devices, custom power-product assemblies, such as our PowerRail solution, high-current low voltage flexible power cabling systems and powder coated bus bars that are used in various markets and applications, including aerospace, computers, industrial and power conversion, military, telecommunications, and transportation. The Other segment includes medical devices, inverters and battery systems and insulated gate bipolar transistor solutions. Our medical devices business includes Dabir Surfaces which is our surface support technology aimed at pressure ulcer prevention. Methode is developing the technology for use by patients who are immobilized or otherwise at risk for pressure ulcers, including patients undergoing long-duration surgical procedures. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in our Form 10-K for the fiscal year ended April 30, 2016 . We allocate resources to segments based on operating income. Transfers between segments are recorded using internal transfer prices set by us. Three Months Ended July 30, 2016 Automotive Interface Power Products Other Eliminations/Corporate Consolidated Net sales $ 148.6 $ 33.1 $ 12.1 $ 0.4 $ (2.4 ) $ 191.8 Transfers between segments (1.5 ) (0.2 ) (0.1 ) (0.3 ) 2.2 0.1 Net sales to unaffiliated customers $ 147.1 $ 32.9 $ 12.0 $ 0.1 $ (0.2 ) $ 191.9 Income (loss) from operations $ 36.1 $ (0.7 ) $ 2.5 $ (2.3 ) $ (8.9 ) $ 26.7 Interest income, net — Other income, net — Income before income taxes $ 26.7 Three Months Ended August 1, 2015 Automotive Interface Power Products Other Eliminations/Corporate Consolidated Net sales $ 154.9 $ 34.1 $ 16.5 $ 0.1 $ (2.3 ) $ 203.3 Transfers between segments (1.8 ) (0.4 ) — (0.1 ) 2.3 — Net sales to unaffiliated customers $ 153.1 $ 33.7 $ 16.5 $ — $ — $ 203.3 Income/(loss) from operations $ 35.9 $ 0.7 $ 3.1 $ (2.3 ) $ (7.0 ) $ 30.4 Interest income, net (0.2 ) Other income, net (0.3 ) Income before income taxes $ 30.9 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Jul. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Certain litigation arising in the normal course of business is pending against us. We are from time to time subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, employment-related matters, environmental matters and intellectual property matters. We consider insurance coverage and third-party indemnification when determining required accruals for pending litigation and claims. Although the outcome of potential legal actions and claims cannot be determined, it is our opinion, based on the information available, that we have adequate reserves for these liabilities. Hetronic Germany-GmbH Matters For several years, Hetronic Germany-GmbH and Hydronic-Steuersysteme-GmbH (the “Fuchs companies”) served as our distributors for Germany, Austria and other central and eastern European countries pursuant to their respective intellectual property licenses and distribution and assembly agreements. We became aware that the Fuchs companies and their managing director, Albert Fuchs, had materially violated those agreements. As a result, we terminated all of our agreements with the Fuchs companies. On June 20, 2014, we filed a lawsuit against the Fuchs companies in the Federal District Court for the Western District of Oklahoma alleging material breaches of the distribution and assembly agreements seeking damages, as well as various forms of injunctive relief. The defendants have filed counterclaims alleging breach of contract, interference with business relations and business slander. On April 2, 2015, we amended our complaint against the Fuchs companies to add additional unfair competition and Lanham Act claims and to add additional affiliated parties. As of July 30, 2016, the matter remains in the discovery stage. |
PRE-PRODUCTION COSTS RELATED TO
PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS | 3 Months Ended |
Jul. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS | PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS We incur pre-production tooling costs related to certain products produced for our customers under long-term supply agreements. We had $13.2 million and $9.5 million as of July 30, 2016 and April 30, 2016 , respectively, of pre-production tooling costs related to customer-owned tools for which reimbursement is contractually guaranteed by the customer or for which the customer has provided a non-cancelable right to use the tooling. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred, unless the costs are reimbursable, as specified in a customer contract. We had $7.5 million and $8.0 million as of July 30, 2016 and April 30, 2016, respectively, of Company owned pre-production tooling, which is capitalized within property, plant and equipment. |
DEBT AND CREDIT AGREEMENT
DEBT AND CREDIT AGREEMENT | 3 Months Ended |
Jul. 30, 2016 | |
Debt Disclosure [Abstract] | |
DEBT AND CREDIT AGREEMENT | DEBT AND CREDIT AGREEMENT We are party to an Amended and Restated Credit Agreement with Bank of America, N.A., as administrative agent, and certain other financial institutions, which has a maturity of September 21, 2017. The credit facility is in the aggregate principal amount of $100.0 million, with an option to increase the principal amount by an additional $50.0 million, subject to customary conditions and approval of the lender(s) providing new commitment(s). The credit facility provides for variable rates of interest based on the type of borrowing and the Company's debt to EBITDA financial ratio. The Amended and Restated Credit Agreement is guaranteed by certain of our U.S. subsidiaries. At July 30, 2016, the interest rate on the credit facility was 1.5% plus LIBOR and we were in compliance with the covenants of the agreement. During the first three months of fiscal 2017, we had no borrowings and payments of $3.3 million, which includes interest of $0.3 million, under this credit facility. As of July 30, 2016 , there were outstanding balances against the credit facility of $54.0 million. There was $46.0 million available to borrow under the credit facility as of July 30, 2016 , which does not include the option to increase the principal amount. We believe the fair value approximates the carrying amount as of July 30, 2016 . |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Jul. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Goodwill and Intangible Assets | We review our goodwill and other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable, and at least annually in accordance with ASC No. 350, “Intangibles — Goodwill and Others”. The values assigned to goodwill and intangible assets are normally based on estimates and judgments regarding expectations for the success and life cycle of products and technologies acquired. A severe decline in expectations could result in significant impairment charges, which could have a material adverse effect on our financial condition and results of operations. |
Net Income Per Share | Basic net income per share is calculated by dividing net income attributable to Methode shareholders by the weighted average number of common shares outstanding for the applicable period. Diluted net income per share is calculated after adjusting the denominator of the basic net income per share calculation for the effect of all potentially dilutive stock compensation awards outstanding during the period. |
Segment Information | The accounting policies of the segments are the same as those described in the summary of significant accounting policies in our Form 10-K for the fiscal year ended April 30, 2016 . We allocate resources to segments based on operating income. Transfers between segments are recorded using internal transfer prices set by us. |
Contingencies | Certain litigation arising in the normal course of business is pending against us. We are from time to time subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, employment-related matters, environmental matters and intellectual property matters. We consider insurance coverage and third-party indemnification when determining required accruals for pending litigation and claims. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Jul. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Roll-forward | The following table shows the roll-forward of goodwill in the financial statements as of July 30, 2016 : As of July 30, 2016 Power Interface Products Total Balance as of April 30, 2016 $ 0.7 $ 1.0 $ 1.7 Foreign currency translation — — — Balance as of July 30, 2016 $ 0.7 $ 1.0 $ 1.7 |
Schedule of Intangible Assets | The following tables present details of the Company’s intangible assets: As of July 30, 2016 Wtd. Avg. Remaining Accumulated Amortization Gross Amortization Net Periods (Years) Customer relationships and agreements $ 16.3 $ 15.4 $ 0.9 7.5 Trade names, patents and technology licenses 25.8 18.3 7.5 2.2 Covenants not to compete 0.1 0.1 — 1.2 Total $ 42.2 $ 33.8 $ 8.4 As of April 30, 2016 Wtd. Avg. Remaining Accumulated Amortization Gross Amortization Net Periods (Years) Customer relationships and agreements $ 16.3 $ 15.3 $ 1.0 7.8 Trade names, patents and technology licenses 25.8 17.9 7.9 2.4 Covenants not to compete 0.1 0.1 — 1.4 Total $ 42.2 $ 33.3 $ 8.9 |
Schedule of Estimated Aggregate Amortization Expense of Intangible Assets | The estimated aggregate amortization expense for the current fiscal year and each of the four succeeding fiscal years is as follows: 2017 $2.3 2018 $2.2 2019 $2.1 2020 $0.2 2021 $0.1 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Jul. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share: Three Months Ended July 30, August 1, Numerator - net income attributable to Methode Electronics, Inc. $ 21.2 $ 23.5 Denominator: — — Denominator for basic net income per share-weighted average shares outstanding and vested/unissued restricted stock awards 37,322,548 38,904,743 Dilutive potential common shares-employee and director stock options, restricted stock awards and restricted stock units 146,744 126,055 Denominator for diluted net income per share 37,469,292 39,030,798 Net income per share: Basic $ 0.57 $ 0.60 Diluted $ 0.57 $ 0.60 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Jul. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended July 30, 2016 Automotive Interface Power Products Other Eliminations/Corporate Consolidated Net sales $ 148.6 $ 33.1 $ 12.1 $ 0.4 $ (2.4 ) $ 191.8 Transfers between segments (1.5 ) (0.2 ) (0.1 ) (0.3 ) 2.2 0.1 Net sales to unaffiliated customers $ 147.1 $ 32.9 $ 12.0 $ 0.1 $ (0.2 ) $ 191.9 Income (loss) from operations $ 36.1 $ (0.7 ) $ 2.5 $ (2.3 ) $ (8.9 ) $ 26.7 Interest income, net — Other income, net — Income before income taxes $ 26.7 Three Months Ended August 1, 2015 Automotive Interface Power Products Other Eliminations/Corporate Consolidated Net sales $ 154.9 $ 34.1 $ 16.5 $ 0.1 $ (2.3 ) $ 203.3 Transfers between segments (1.8 ) (0.4 ) — (0.1 ) 2.3 — Net sales to unaffiliated customers $ 153.1 $ 33.7 $ 16.5 $ — $ — $ 203.3 Income/(loss) from operations $ 35.9 $ 0.7 $ 3.1 $ (2.3 ) $ (7.0 ) $ 30.4 Interest income, net (0.2 ) Other income, net (0.3 ) Income before income taxes $ 30.9 |
GOODWILL AND INTANGIBLE ASSET21
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill Roll-forward (Details) $ in Millions | 3 Months Ended |
Jul. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1.7 |
Foreign currency translation | 0 |
Ending balance | 1.7 |
Interconnect | |
Goodwill [Roll Forward] | |
Beginning balance | 0.7 |
Foreign currency translation | 0 |
Ending balance | 0.7 |
Power Products | |
Goodwill [Roll Forward] | |
Beginning balance | 1 |
Foreign currency translation | 0 |
Ending balance | $ 1 |
GOODWILL AND INTANGIBLE ASSET22
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jul. 30, 2016 | Apr. 30, 2016 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | $ 42.2 | $ 42.2 |
Accumulated Amortization | 33.8 | 33.3 |
Net | 8.4 | 8.9 |
Customer relationships and agreements | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | 16.3 | 16.3 |
Accumulated Amortization | 15.4 | 15.3 |
Net | $ 0.9 | $ 1 |
Wtd. Avg. Remaining Amortization Periods (Years) | 7 years 6 months 12 days | 7 years 9 months 15 days |
Trade names, patents and technology licenses | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | $ 25.8 | $ 25.8 |
Accumulated Amortization | 18.3 | 17.9 |
Net | $ 7.5 | $ 7.9 |
Wtd. Avg. Remaining Amortization Periods (Years) | 2 years 1 month 27 days | 2 years 4 months 21 days |
Covenants not to compete | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | $ 0.1 | $ 0.1 |
Accumulated Amortization | 0.1 | 0.1 |
Net | $ 0 | $ 0 |
Wtd. Avg. Remaining Amortization Periods (Years) | 1 year 2 months | 1 year 5 months |
GOODWILL AND INTANGIBLE ASSET23
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Aggregate Amortization Expense of Intangible Assets (Details) $ in Millions | Jul. 30, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 2.3 |
2,017 | 2.2 |
2,018 | 2.1 |
2,019 | 0.2 |
2,020 | $ 0.1 |
GOODWILL AND INTANGIBLE ASSET24
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | Jul. 30, 2016 | Apr. 30, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Trade names not subject to amortization | $ 1.8 | $ 1.8 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 30, 2016 | Aug. 01, 2015 | Apr. 30, 2016 | |
Valuation Allowance [Line Items] | |||
Valuation allowances against deferred tax assets | $ 1.3 | $ 1.3 | |
Federal tax expense (benefit) | (0.7) | ||
State tax expense (benefit) | (3.7) | ||
Foreign tax credit carryforward | 0.9 | ||
Income tax expense | $ 5.5 | $ 7.4 | |
Effective income tax rate | 20.60% | 23.90% | |
Unrecognized tax benefits, income tax penalties and interest accrued | $ 0.1 | ||
Total unrecognized tax benefit | 1.2 | ||
Federal | |||
Valuation Allowance [Line Items] | |||
Operating loss carryforwards | 2.1 | ||
State | |||
Valuation Allowance [Line Items] | |||
Operating loss carryforwards | $ 85.8 | ||
Foreign | Malta | Investment Tax Credit Carryforward | |||
Valuation Allowance [Line Items] | |||
Investment tax credit on qualified expenditures, percent | 30.00% | ||
Unused credits | $ 14.4 |
COMMON STOCK AND STOCK-BASED 26
COMMON STOCK AND STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 60 Months Ended | |||
Jul. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | Jan. 30, 2016 | May 02, 2020 | |
Performance-Based Restricted Stock Awards (RSAs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 1.3 | $ 0 | ||||
Performance-Based Restricted Stock Awards (RSAs) | Independent directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 1 | |||||
Number of shares issued (in shares) | 27,000 | |||||
Performance-Based Restricted Stock Awards (RSAs) | Forecast | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 5 years | |||||
Compensation expense | $ 24.8 | |||||
Performance-Based Restricted Stock Awards (RSAs) | 50% of Target Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percent | 50.00% | |||||
Number of RSAs earned based on performance (in shares) | 411,000 | |||||
Performance-Based Restricted Stock Awards (RSAs) | 50% of Target Shares | Chief Financial Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of RSAs earned based on performance (in shares) | 24,000 | |||||
Performance-Based Restricted Stock Awards (RSAs) | 100% of Target Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percent | 100.00% | |||||
Number of RSAs earned based on performance (in shares) | 822,000 | |||||
Performance-Based Restricted Stock Awards (RSAs) | 100% of Target Shares | Chief Financial Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of RSAs earned based on performance (in shares) | 48,000 | |||||
Performance-Based Restricted Stock Awards (RSAs) | 150% of Target Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percent | 150.00% | |||||
Number of RSAs earned based on performance (in shares) | 1,233,000 | |||||
Performance-Based Restricted Stock Awards (RSAs) | 150% of Target Shares | Chief Financial Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of RSAs earned based on performance (in shares) | 72,000 | |||||
Time-Based Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 5 years | |||||
Compensation expense | $ 1.3 | $ 0 | ||||
Awarded (in shares) | 608,000 | |||||
Time-Based Restricted Stock Units (RSUs) | Chief Financial Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awarded (in shares) | 32,000 | |||||
Time-Based Restricted Stock Units (RSUs) | Forecast | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 18.5 | |||||
Time-Based Restricted Stock Units (RSUs) | April 28, 2018 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percent | 30.00% | |||||
Time-Based Restricted Stock Units (RSUs) | April 27, 2019 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percent | 30.00% | |||||
Time-Based Restricted Stock Units (RSUs) | May 2, 2020 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percent | 40.00% |
NET INCOME PER SHARE - Schedule
NET INCOME PER SHARE - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jul. 30, 2016 | Aug. 01, 2015 | |
Earnings Per Share [Abstract] | ||
Numerator - net income attributable to Methode Electronics, Inc. | $ 21.2 | $ 23.5 |
Denominator for basic net income per share-weighted average shares outstanding and vested/unissued restricted stock awards (in shares) | 37,322,548 | 38,904,743 |
Dilutive potential common shares-employee and director stock options, restricted stock awards and restricted stock units (in shares) | 146,744 | 126,055 |
Denominator for diluted net income per share (in shares) | 37,469,292 | 39,030,798 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.57 | $ 0.60 |
Diluted (in dollars per share) | $ 0.57 | $ 0.60 |
NET INCOME PER SHARE - Narrativ
NET INCOME PER SHARE - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||||
Jul. 30, 2016 | Jan. 30, 2016 | Aug. 01, 2015 | Jan. 31, 2015 | Jan. 30, 2016 | Jan. 31, 2015 | |
Stock options | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities excluded from computation of EPS (in shares) | 138,500 | 138,500 | 158,500 | 158,500 | 138,500 | 158,500 |
Restricted Stock Awards (RSAs) | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities excluded from computation of EPS (in shares) | 822,000 | 684,000 | 684,000 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 3 Months Ended |
Jul. 30, 2016segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 30, 2016 | Aug. 01, 2015 | |
Segment Reporting Information [Line Items] | ||
Net sales to unaffiliated customers | $ 191.9 | $ 203.3 |
Income (loss) from operations | 26.7 | 30.4 |
Interest income, net | 0 | (0.2) |
Other income, net | 0 | (0.3) |
Income before income taxes | 26.7 | 30.9 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | (191.8) | (203.3) |
Transfers between segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0.1 | 0 |
Automotive | ||
Segment Reporting Information [Line Items] | ||
Net sales to unaffiliated customers | 147.1 | 153.1 |
Income (loss) from operations | 36.1 | 35.9 |
Automotive | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | (148.6) | (154.9) |
Automotive | Transfers between segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | (1.5) | (1.8) |
Interface | ||
Segment Reporting Information [Line Items] | ||
Net sales to unaffiliated customers | 32.9 | 33.7 |
Income (loss) from operations | (0.7) | 0.7 |
Interface | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | (33.1) | (34.1) |
Interface | Transfers between segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | (0.2) | (0.4) |
Power Products | ||
Segment Reporting Information [Line Items] | ||
Net sales to unaffiliated customers | 12 | 16.5 |
Income (loss) from operations | 2.5 | 3.1 |
Power Products | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | (12.1) | (16.5) |
Power Products | Transfers between segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | (0.1) | 0 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net sales to unaffiliated customers | 0.1 | 0 |
Income (loss) from operations | (2.3) | (2.3) |
Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | (0.4) | (0.1) |
Other | Transfers between segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | (0.3) | (0.1) |
Eliminations/Corporate | ||
Segment Reporting Information [Line Items] | ||
Net sales to unaffiliated customers | (0.2) | 0 |
Income (loss) from operations | (8.9) | (7) |
Eliminations/Corporate | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2.4 | 2.3 |
Eliminations/Corporate | Transfers between segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 2.2 | $ 2.3 |
PRE-PRODUCTION COSTS RELATED 31
PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS - Narrative (Details) - USD ($) $ in Millions | Jul. 30, 2016 | Apr. 30, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Pre-production tooling costs | $ 13.2 | $ 9.5 |
Company owned pre-production tooling capitalized within property, plant and equipment | $ 7.5 | $ 8 |
DEBT AND CREDIT AGREEMENT - Nar
DEBT AND CREDIT AGREEMENT - Narrative (Details) - USD ($) | 3 Months Ended | |
Jul. 30, 2016 | Aug. 01, 2015 | |
Line of Credit Facility [Line Items] | ||
Repayments in the period | $ 3,000,000 | $ 3,000,000 |
Line of credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 100,000,000 | |
Optional increase in borrowing capacity, up to | $ 50,000,000 | |
Basis spread on variable rate | 1.50% | |
Variable rate basis | LIBOR | |
Proceeds from borrowings | $ 0 | |
Repayments in the period | 3,300,000 | |
Interest expense | 300,000 | |
Amount outstanding | 54,000,000 | |
Available borrowing capacity | $ 46,000,000 |