Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Apr. 29, 2017 | Jun. 20, 2017 | Oct. 29, 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-K | ||
Document Period End Date | Apr. 29, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 36,787,301 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 29, 2017 | Apr. 30, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 294 | $ 227.8 |
Accounts receivable, less allowance (2017 - $0.6 and 2016 - $0.5) | 165.3 | 175.5 |
Inventories: | ||
Finished products | 10.9 | 11.9 |
Work in process | 8.7 | 9.6 |
Materials | 38.3 | 44.7 |
Total Inventories | 57.9 | 66.2 |
Deferred income taxes | 0 | 11.8 |
Prepaid and refundable income taxes | 0.6 | 1.3 |
Prepaid expenses and other current assets | 12.5 | 13.6 |
TOTAL CURRENT ASSETS | 530.3 | 496.2 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 0.6 | 0.6 |
Buildings and building improvements | 48.2 | 46.9 |
Machinery and equipment | 287.9 | 278.4 |
Property, Plant and Equipment, Gross | 336.7 | 325.9 |
Less allowances for depreciation | 246.1 | 232.9 |
PROPERTY, PLANT AND EQUIPMENT, NET | 90.6 | 93 |
OTHER ASSETS | ||
Goodwill | 1.6 | 1.7 |
Other intangibles, less accumulated amortization | 6.6 | 8.9 |
Cash surrender value of life insurance | 7.8 | 7.4 |
Deferred income taxes | 40.4 | 27.7 |
Pre-production costs | 15.5 | 9.5 |
Other | 11.2 | 11.5 |
TOTAL OTHER ASSETS | 83.1 | 66.7 |
TOTAL ASSETS | 704 | 655.9 |
CURRENT LIABILITIES | ||
Accounts payable | 75.3 | 68.2 |
Salaries, wages and payroll taxes | 18.7 | 17.3 |
Other accrued expenses | 17.7 | 17.3 |
Deferred income taxes | 0 | 2.1 |
Income tax payable | 12.7 | 13 |
TOTAL CURRENT LIABILITIES | 124.4 | 117.9 |
LONG-TERM DEBT | 27 | 57 |
OTHER LIABILITIES | 2.6 | 2.9 |
DEFERRED COMPENSATION | 8.9 | 8 |
SHAREHOLDERS’ EQUITY | ||
Common stock, $0.50 par value, 100,000,000 shares authorized, 38,133,925 shares and 38,181,985 shares issued as of April 29, 2017 and April 30, 2016, respectively | 19.1 | 19.1 |
Additional paid-in capital | 132.2 | 112.3 |
Accumulated other comprehensive loss | (25.7) | (8.4) |
Treasury stock, 1,346,624 shares as of April 29, 2017 and April 30, 2016 | (11.5) | (11.5) |
Retained earnings | 427 | 358.6 |
TOTAL METHODE ELECTRONICS, INC. SHAREHOLDERS’ EQUITY | 541.1 | 470.1 |
Noncontrolling interest | 0 | 0 |
TOTAL EQUITY | 541.1 | 470.1 |
TOTAL LIABILITIES AND EQUITY | $ 704 | $ 655.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 29, 2017 | Apr. 30, 2016 |
CURRENT ASSETS | ||
Allowance, accounts receivable | $ 0.6 | $ 0.5 |
Common Stock: | ||
par value (in dollars per share) | $ 0.50 | $ 0.50 |
shares authorized (in shares) | 100,000,000 | 100,000,000 |
shares issued (in shares) | 38,133,925 | 38,181,985 |
Treasury Stock: | ||
shares issued (in shares) | 1,346,624 | 1,346,624 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 816.5 | $ 809.1 | $ 881.1 |
Cost of products sold | 598.2 | 596.2 | 662.3 |
Gross profit | 218.3 | 212.9 | 218.8 |
Impairment of goodwill and intangible assets | 0 | 0 | 11.1 |
Selling and administrative expenses | 105.2 | 100.8 | 94 |
Amortization of intangibles | 2.3 | 2.4 | 1.5 |
Income from operations | 110.8 | 109.7 | 112.2 |
Gain from sale of business | 0 | 0 | (7.7) |
Interest income, net | (0.4) | (0.7) | (0.7) |
Other income | (4.7) | (0.5) | (0.2) |
Income/(loss) before income taxes | 115.9 | 110.9 | 120.8 |
Income tax expense | 23 | 26.3 | 19.8 |
Net income | 92.9 | 84.6 | 101 |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | (0.1) |
NET INCOME ATTRIBUTABLE TO METHODE ELECTRONICS, INC. | $ 92.9 | $ 84.6 | $ 101.1 |
Basic and diluted income per share: | |||
Basic income per share (in dollars per share) | $ 2.49 | $ 2.21 | $ 2.61 |
Diluted income per share (in dollars per share) | 2.48 | 2.20 | 2.57 |
Cash dividends per share: | |||
Common stock (in dollars per share) | $ 0.36 | $ 0.36 | $ 0.36 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 92.9 | $ 84.6 | $ 101 |
Other comprehensive income/(loss): | |||
Foreign currency translation adjustments | (17.3) | (0.1) | (33) |
Total comprehensive income | 75.6 | 84.5 | 68 |
Comprehensive income/(loss) attributable to non-controlling interest | 0 | 0 | (0.1) |
Comprehensive income attributable to Methode shareholders | $ 75.6 | $ 84.5 | $ 68.1 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Treasury Stock | Retained Earnings | Non-Controlling Interest |
Beginning Balance (in shares) at May. 03, 2014 | 39,262,168 | ||||||
Beginning Balance at May. 03, 2014 | $ 392.2 | $ 19.6 | $ 89.8 | $ 24.7 | $ (11.4) | $ 269.2 | $ 0.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Earned portion of restricted stock awards (in shares) | 39,675 | ||||||
Stock award and stock option amortization expense | 4.3 | 4.4 | (0.1) | ||||
Exercise of options (in shares) | 400,193 | ||||||
Exercise of options | 4 | $ 0.3 | 3.7 | ||||
Tax benefit from stock option exercises | 4.3 | 4.3 | |||||
Foreign currency translation adjustments | (33) | (33) | |||||
Net income for year | 101 | 101.1 | (0.1) | ||||
Cash dividends on common stock | (13.8) | (13.8) | |||||
Ending Balance (in shares) at May. 02, 2015 | 39,702,036 | ||||||
Ending Balance at May. 02, 2015 | 459 | $ 19.9 | 102.2 | (8.3) | (11.5) | 356.5 | 0.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Earned portion of restricted stock awards (in shares) | 430,245 | ||||||
Earned portion of restricted stock awards | 0.1 | $ 0.1 | |||||
Stock award and stock option amortization expense | 7.4 | 7.4 | |||||
Exercise of options (in shares) | 47,002 | ||||||
Exercise of options | $ (7.1) | $ 0.1 | 0.5 | (7.7) | |||
Purchase of common stock (in shares) | (1,997,298) | (1,997,298) | |||||
Purchase of common stock | $ (62.3) | $ (1) | (61.3) | ||||
Tax benefit from stock option exercises | 2.2 | 2.2 | |||||
Foreign currency translation adjustments | (0.3) | (0.1) | (0.2) | ||||
Net income for year | 84.6 | 84.6 | |||||
Cash dividends on common stock | (13.5) | (13.5) | |||||
Ending Balance (in shares) at Apr. 30, 2016 | 38,181,985 | ||||||
Ending Balance at Apr. 30, 2016 | 470.1 | $ 19.1 | 112.3 | (8.4) | (11.5) | 358.6 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Earned portion of restricted stock awards (in shares) | 146,192 | ||||||
Earned portion of restricted stock awards | (1.1) | $ 0.1 | |||||
Stock award and stock option amortization expense | 12.4 | 12.4 | (1.2) | ||||
Exercise of options (in shares) | 147,829 | ||||||
Exercise of options | $ 2.7 | $ 0.1 | 2.6 | 0 | |||
Purchase of common stock (in shares) | (280,168) | (342,081) | |||||
Purchase of common stock | $ (9.8) | $ (0.2) | (9.6) | ||||
Tax benefit from stock option exercises | 4.9 | 4.9 | |||||
Foreign currency translation adjustments | (17.3) | (17.3) | 0 | ||||
Net income for year | 92.9 | 92.9 | |||||
Cash dividends on common stock | (13.7) | (13.7) | |||||
Ending Balance (in shares) at Apr. 29, 2017 | 38,133,925 | ||||||
Ending Balance at Apr. 29, 2017 | $ 541.1 | $ 19.1 | $ 132.2 | $ (25.7) | $ (11.5) | $ 427 | $ 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statement Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
OPERATING ACTIVITIES | |||
Net income | $ 92.9 | $ 84.6 | $ 101 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sale of fixed assets | 0 | (0.7) | 0 |
Impairment of goodwill and intangible assets | 0 | 0 | 11.1 |
Gain on sale of business | 0 | 0 | (7.7) |
Provision for depreciation | 22 | 21.5 | 21.9 |
Amortization of intangibles | 2.3 | 2.4 | 1.5 |
Stock-based compensation | 12.4 | 7.4 | 4.3 |
Provision for bad debt | 0.2 | 0 | 0 |
Change in Deferred income taxes | (3.9) | 8.2 | (0.3) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 5.6 | (6) | (8.6) |
Inventories | 7.4 | 4.5 | (1.6) |
Prepaid expenses and other assets | (4.8) | 0.1 | (1.6) |
Accounts payable and other expenses | 11.1 | (11.3) | 2.9 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 145.2 | 110.7 | 122.9 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | (22.4) | (23.2) | (22.5) |
Sale of business/investment/property | 0.7 | 1.6 | 11.2 |
NET CASH USED IN INVESTING ACTIVITIES | (21.7) | (21.6) | (11.3) |
FINANCING ACTIVITIES | |||
Taxes paid related to net share settlement of equity awards | (1.1) | (7.7) | 0 |
Purchase of common stock | (9.8) | (62.3) | 0 |
Proceeds from exercise of stock options | 2.7 | 0.6 | 4 |
Tax benefit from stock option exercises | 4.9 | 2.2 | 4.3 |
Cash dividends | (13.7) | (13.5) | (13.8) |
Proceeds from borrowings | 0 | 71 | 0 |
Repayment of borrowings | (30) | (19) | (43) |
NET CASH USED IN FINANCING ACTIVITIES | (47) | (28.7) | (48.5) |
Effect of foreign currency exchange rate changes on cash | (10.3) | (0.7) | (11.4) |
INCREASE IN CASH AND CASH EQUIVALENTS | 66.2 | 59.7 | 51.7 |
Cash and cash equivalents at beginning of year | 227.8 | 168.1 | 116.4 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 294 | $ 227.8 | $ 168.1 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Apr. 29, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation. The consolidated financial statements include the accounts and operations of Methode Electronics, Inc. and its subsidiaries. As used herein, “we,” “us,” “our,” the “Company” or “Methode” means Methode Electronics, Inc. and its subsidiaries. Financial Reporting Periods. We maintain our financial records on the basis of a fifty-two or fifty-three week fiscal year ending on the Saturday closest to April 30. Fiscal 2017 , fiscal 2016 and fiscal 2015 represent fifty-two weeks of results. Cash Equivalents. All highly liquid investments with a maturity of three months or less when purchased are classified in the Consolidated Balance Sheets as cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts. We carry accounts receivable at their face amounts less an allowance for doubtful accounts. On a regular basis, we record an allowance for uncollectible receivables based upon past transaction history with customers, customer payment practices and economic conditions. Actual collection experience may differ from the current estimate of net receivables. A change to the allowance for uncollectible amounts may be required if a future event or other change in circumstances results in a change in the estimate of the ultimate collectability of a specific account. We do not require collateral for our accounts receivable balances. Accounts are written off against the allowance account when they are determined to be no longer collectible. Inventories. Inventories are stated at the lower-of-cost (first-in, first-out method) or market, including direct material costs and direct and indirect manufacturing costs. Property, Plant and Equipment. Properties are stated on the basis of cost. We amortize such costs by annual charges to income, computed on the straight-line method using estimated useful lives of 5 to 40 years for buildings and improvements and 3 to 15 years for machinery and equipment for financial reporting purposes. Accelerated methods are generally used for income tax purposes. Income Taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Revenue Recognition. We recognize revenue on product sales when i) persuasive evidence of an agreement exists, ii) the price is fixed or determinable, iii) delivery has occurred or services have been rendered, and iv) collection of the sales proceeds is reasonably assured. Revenue from our product sales not requiring installation, net of trade discounts and estimated sales allowances, is recognized when title passes, which is generally upon shipment. We do not have any additional obligations or customer acceptance provisions after shipment of such products. We handle returns by replacing, repairing or issuing credit for defective products when returned. Return costs were not significant in fiscal 2017 , fiscal 2016 or fiscal 2015 . The Company collects and remits taxes assessed by different governmental authorities that are both imposed on and concurrent with a revenue-producing transaction between the Company and the Company’s customers. These taxes may include, but are not limited to, sales, use, value-added, and some excise taxes. The Company reports the collection of these taxes on a net basis (excluded from revenues). Shipping and Handling Fees and Costs . Shipping and handling fees billed to customers are included in net sales, and the related costs are included in cost of products sold. Foreign Currency Translation. The functional currencies of the majority of our foreign subsidiaries are their local currencies. The results of operations of these foreign subsidiaries are translated into U.S. dollars using average exchange rates during the year, while the assets and liabilities are translated using period-end exchange rates. Adjustments from the translation process are classified as a component of shareholders’ equity. Exchange gains and losses arising from transactions denominated in a currency other than the functional currency of the foreign subsidiary are included in the Consolidated Statements of Income in other income. In fiscal 2017 , fiscal 2016 and fiscal 2015 , we had foreign exchange gains of $0.4 million , $0.5 million and 0.2 million , respectively. Long-Lived Assets. We continually evaluate whether events and circumstances have occurred which indicate that the remaining estimated useful lives of our intangible assets, excluding goodwill, and other long-lived assets, may warrant revision or that the remaining balance of such assets may not be recoverable. In the event that the undiscounted cash flows resulting from the use of the asset group is less than the carrying amount, an impairment loss equal to the excess of the asset’s carrying amount over its fair value is recorded. Goodwill and Other Intangibles. Goodwill represents the excess of cost over fair market value of identifiable net assets acquired through business purchases. We review goodwill for impairment on an annual basis or more frequently if indicators of impairment are identified. We evaluate goodwill using a qualitative assessment to determine whether it is more likely than not that the fair value of any reporting unit is less than its carrying amount. If we determine that the fair value of the reporting unit may be less than its carrying amount, we evaluate goodwill using a two-step impairment test. Otherwise, we conclude that no impairment is indicated and we do not perform the two-step impairment test. Our qualitative screen includes an assessment of certain factors including, but not limited to, the results of prior year fair value calculations, the movement of our share price and market capitalization, the reporting unit and overall financial performance, and macroeconomic and industry conditions. We consider the qualitative factors and weight of the evidence obtained to determine if it is more likely than not that the reporting units' fair value is less than the carrying amount. Although we believe the factors considered in the impairment analysis are reasonable, significant changes in any one of the assumptions used could produce a different result. If, after assessing the qualitative factors, we were to determine that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we would perform a two-step impairment test (a quantitative analysis). We may also elect to proceed directly to the two-step impairment analysis without considering such qualitative factors. In the first step of the two-step impairment test, fair values are primarily established using a discounted cash flow methodology (specifically, the income and market approach). The determination of discounted cash flows is based on our long-range forecasts and requires assumptions related to revenue and operating income growth, asset-related expenditures, working capital levels, and other market participant assumptions. The revenue growth rates included in the forecasts are our best estimates based on current and anticipated market conditions, and the profitability assumptions are projected based on current and anticipated cost structures. Long-range forecasting involves uncertainty which increases with each successive period. Key assumptions, such as revenue growth rates and profitability, especially in the outer years, involve a greater degree of uncertainty. Research and Development Costs . Costs associated with the enhancement of existing products and the development of new products are charged to expense when incurred. Research and development expenses primarily relate to product engineering and design and development expenses and are classified as a component of our cost of goods sold on the Company's Consolidated Statements of Income. Research and development costs for both the fiscal years ended April 29, 2017 and April 30, 2016 were $27.8 million and were $24.5 million for the fiscal year ended May 2, 2015 . Stock-Based Compensation. See Note 4, Shareholders’ Equity for a description of our stock-based compensation plans. Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Fair Value of Other Financial Instruments. The carrying values of our short-term financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate their fair values because of the short maturity of these instruments. We have no material assets or liabilities measured at fair value on a recurring basis. Recently Issued Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The amendments in this update clarify the definition of a business, with the objective of assisting entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted. The standard will be effective for us in fiscal years beginning April 29, 2018. We do not expect this update to have a material impact on our consolidated financial statements, but it may impact how the Company accounts for acquisitions and disposals in the future. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350).” The amendments remove Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The amendments are effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The standard will be effective for us for annual or any interim goodwill impairment tests in fiscal years beginning May 3, 2020. The Company is currently evaluating the impact of the new requirements on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." The ASU includes multiple 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 began 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 (Topic 606).” 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. The standard will be effective for us in the first quarter of fiscal 2019. Earlier adoption is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements. We have started our evaluation by engaging third-party consultants to assist in the process. We have established a project management team to analyze the impact of this standard by reviewing our current accounting policies and practices, customer contracts and arrangements to identify potential differences that would result from the application of this standard. The types of provisions currently being evaluated which could impact the allocation and timing of revenue include contractually guaranteed price reductions and over time recognition of revenue. There are two transition methods available under the new standard, either full retrospective or modified retrospective. We expect to adopt the standard utilizing the modified retrospective method and expect enhanced disclosure requirements post-adoption. In February 2016, the FASB issued ASU 2016-02, "Leases (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 recognized 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 with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, 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 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 began on April 30, 2017. There is currently no impact to the Company from this amendment, but future acquisitions may be impacted. 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 or 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 began on April 30, 2017. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our Consolidated Balance Sheets. Recently Adopted Accounting Pronouncements 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 U.S. 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. The adoption of this standard in fiscal 2017 did not have an impact on our consolidated financial statements. In May 2015, the FASB issued ASU 2015-07, "Fair Value Measurement: Disclosure for Investments in Certain Entities that calculates net asset value per share (or its Equivalent)." This amendment removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share. This new guidance was effective for interim and annual periods that began after December 15, 2015. The adoption of this standard did not have an impact on our consolidated financial statements. |
Divestitures
Divestitures | 12 Months Ended |
Apr. 29, 2017 | |
Business Combinations [Abstract] | |
Divestitures | Divestitures Fiscal 2015 Divestiture On February 3, 2015, we sold our 100% ownership interest in our Trace Laboratories businesses for $11.7 million . The businesses, located in Maryland and Illinois, provided services for qualification testing and certification, and analysis of electronic and optical components. The net assets of the businesses had a book value of $4.0 million . We recorded a pre-tax gain of $7.7 million related to the sale of the net assets. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Apr. 29, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill At the beginning of the fourth quarter of fiscal 2017, we performed a qualitative goodwill screening test of goodwill impairment on our Power Systems Group in the Power Products segment and Hetronic in our Interface segment. We considered the qualitative factors and weighed the evidence obtained and we determined that it is more likely than not that the fair value of the two reporting units is greater than the carrying value, and therefore concluded that the assets were not impaired. At the beginning of the fourth quarter of fiscal 2016, we performed "step one" of the goodwill test on our two reporting units with goodwill. Based on this test, we determined that the fair value for these reporting units exceeded their carrying values by approximately 135% and 163% . Therefore, management concluded, based on the results, that goodwill was not impaired for either of the reporting units. At the end of fiscal 2015, we performed a qualitative goodwill screening test of goodwill impairment on our Power Systems Group in the Power Products segment and Hetronic in our Interface segment. We considered the qualitative factors and weighed the evidence obtained and we determined that it is more likely than not that the fair value of the two reporting units is greater than the carrying value, and therefore concluded that the assets were not impaired. Also at the end of fiscal 2015, we completed "step two" of the goodwill test for our TouchSensor reporting unit which had a fair value less than the carrying value and concluded that goodwill was impaired, and recorded a goodwill impairment charge of $11.1 million in our Interface segment related to these assets. The fair value of our indefinite-lived trade names are estimated and compared to the carrying value. We estimate the fair value of the intangible assets using the relief-from-royalty method, which requires assumptions related to projected revenues from our annual operating budgets; assumed royalty rates that could be payable if we did not own the trademarks; and a discount rate which are considered level 3 inputs in the fair value hierarchy. An impairment loss would be recognized if the estimated fair value of the indefinite-lived intangible asset is less than its carrying value. The fair values of the trademarks tested exceeded their carrying value by approximately 28% , 17% and 64% for fiscal 2017, fiscal 2016 and fiscal 2015, respectively. The following table shows the roll-forward of goodwill. Interface Power Products Total Balance as of May 3, 2014 $ 12.0 $ 1.0 $ 13.0 Impairment (11.1 ) — (11.1 ) Foreign currency translation (0.2 ) — (0.2 ) Balance as of May 2, 2015 0.7 1.0 1.7 Impairment — — — Foreign currency translation — — — Balance as of April 30, 2016 0.7 1.0 1.7 Impairment — — — Foreign currency translation (0.1 ) — (0.1 ) Balance as of April 29, 2017 $ 0.6 $ 1.0 $ 1.6 Intangible Assets The following tables present details of our remaining identifiable intangible assets: As of April 29, 2017 Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Customer relationships and agreements $ 16.3 $ 15.6 $ 0.7 6.8 Trade names, patents and technology licenses 25.8 19.9 5.9 1.4 Covenants not to compete 0.1 0.1 — 0.4 Total $ 42.2 $ 35.6 $ 6.6 As of April 30, 2016 Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization 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 each of the five succeeding fiscal years is as follows: 2018 $ 2.2 2019 $ 2.1 2020 $ 0.2 2021 $ 0.1 2022 $ 0.1 At the end of fiscal 2015, the Company reviewed the estimated useful lives of some of the patents due to current business conditions and shift in strategic direction and changed the remaining useful lives of these assets from 12 years to 4 years . As of April 29, 2017 and April 30, 2016 , the trade names, patents and technology licenses included $1.8 million of trade names that are not subject to amortization. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Apr. 29, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Plan to Repurchase Common Stock In September 2015, the Board of Directors authorized the repurchase of up to $100.0 million of the Company's outstanding common stock through September 1, 2017. The Company purchased and retired 280,168 shares of outstanding common stock for $9.8 million in fiscal 2017 and 1,997,298 shares for $62.3 million in fiscal 2016, for a total under the repurchase plan of 2,277,466 shares for $71.9 million as of April 29, 2017 . The program may be suspended or terminated at any time. Common Stock. The number of shares of common stock, par value $0.50 per share, authorized, issued and outstanding and in treasury, was as follows: April 29, 2017 April 30, 2016 Authorized 100,000,000 100,000,000 Issued and outstanding 38,133,925 38,181,985 In treasury 1,346,624 1,346,624 Dividends We paid dividends totaling $13.7 million , $13.5 million and $13.8 million during fiscal 2017 , 2016 and 2015 , respectively. 2014 Incentive Plan On July 15, 2014, our Board of Directors, on the recommendation of our Compensation Committee, adopted the Methode Electronics, Inc. 2014 Omnibus Incentive Plan (the “2014 Incentive Plan”). The stockholders approved the 2014 Incentive Plan in September 2014. The 2014 Incentive Plan provides for discretionary grants of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units and performance units to key employees and directors. The 2014 Incentive Plan is intended to align the interests of our eligible directors and employees with the interests of our shareholders, recognize the contributions made by our directors and employees, provide additional incentives to our directors and employees to promote the success of our businesses, and improve our ability to attract and retain qualified employees and directors. The number of shares of our common stock that may be issued under the 2014 Incentive Plan is 3,000,000 , less one share for every one share of common stock issued or issuable pursuant to awards made after May 3, 2014 under the 2007 Stock Plan or 2010 Stock Plan. Awards that may be settled only in cash will not reduce the number of shares available for issuance under the 2014 Incentive Plan. Shares issuable under the 2014 Incentive Plan may be authorized but unissued shares or treasury shares. If any award granted under the 2014 Incentive Plan (or, after May 3, 2014, an award under the 2007 Stock Plan or 2010 Stock Plan) expires, terminates, is forfeited or canceled, is settled in cash in lieu of shares of common stock, or is exchanged for a non-stock award under certain circumstances, the shares subject to the award will again be available for issuance under the 2014 Incentive Plan. As of April 29, 2017 , there were 1,187,697 shares available for award under the 2014 Incentive Plan. Restricted Stock and Restricted Stock Units Awarded Under the 2014 Incentive Plan During fiscal 2016, our Compensation Committee awarded a maximum of 1,161,000 shares of common stock subject to performance-based restricted stock awards ("RSAs") to certain executives and non-executive members of management. In fiscal 2017, our Compensation Committee awarded a maximum of 72,000 shares to our new Chief Financial Officer. The RSAs are earned based on the Company's earnings before net interest, taxes, fixed asset depreciation and intangible asset amortization ("EBITDA") during the fiscal year ending May 2, 2020 (fiscal 2020). RSAs of 389,500 may be earned if threshold fiscal 2020 EBITDA of $198.9 million is achieved, 779,000 RSAs (the "Target RSAs") may be earned if target fiscal 2020 EBITDA of $221.0 million is achieved, and the full 1,168,500 RSAs may be earned if the maximum fiscal 2020 EBITDA of $243.1 million is achieved. If the fiscal 2020 EBITDA achieved is less than threshold 2020 EBITDA, then no shares will vest. If the fiscal 2020 EBITDA achieved falls between either threshold performance and target performance levels, or target performance and maximum performance levels, then shares will be issued on a prorated basis. The vesting date is the last day of fiscal 2020. The vesting of the restricted stock awards will be based on the Company's adjusted EBITDA in fiscal 2020. The fiscal 2020 EBITDA is defined as the Company's earnings before net interest, taxes, fixed asset depreciation and intangible asset amortization adjusted to (i) exclude any EBITDA from acquisitions that close during the period from April 29, 2018 to the end of fiscal 2020, (ii) exclude the positive impact of EBITDA from acquisitions that close during the period from the award date to April 28, 2018 and that are not accretive in fiscal 2020, and (iii) include the final four quarters of EBITDA from reporting unit divestitures that were approved by the Company's Board of Directors and close during the period from the award date to the end of fiscal 2020. At target level performance, the expected compensation expense for the RSAs over the five -year period will be $25.0 million . During the fiscal years ended April 29, 2017 and April 30, 2016 , the Company recorded $5.7 million and $2.8 million , respectively, in compensation expense related to the RSAs. As of April 29, 2017 , 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 achieving or exceeding the target is not probable for fiscal 2020, a reversal of expense will be recorded in that period. These amounts could be material to the financial statements. During fiscal 2016, our Compensation Committee awarded 576,000 shares of common stock subject to time-based restricted stock units ("RSUs") to certain executives and non-executive members of management. In fiscal 2017, our Compensation Committee awarded 32,000 RSUs to our new Chief Financial Officer. The RSUs are subject to a five -year vesting period, with 30% vesting on April 28, 2018, 30% vesting on April 27, 2019 and 40% vesting on May 2, 2020. The total compensation expense over the vesting period will be $18.6 million . During the fiscal years ended April 29, 2017 and April 30, 2016 , the Company recorded $5.5 million and $2.8 million , respectively, in compensation expense related to the RSUs. We issued 27,000 shares, 24,000 shares and 13,500 shares in fiscal 2017, fiscal 2016 and fiscal 2015, respectively, to our independent directors all of which vested immediately upon grant under the 2014 Incentive Plan. During the fiscal years ended April 29, 2017 , April 30, 2016 and May 2, 2015 , the Company recorded $0.9 million , $0.8 million and $1.0 million , respectively, in compensation expense related to these shares. The following table summarizes the RSA and RSU activity for fiscal 2015 , fiscal 2016 and fiscal 2017 under the 2014 Incentive Plan: RSA Shares RSU Shares Unvested and unissued at May 3, 2014 — — Awarded 13,500 — Vested (13,500 ) — Forfeited and Canceled — — Unvested and unissued at May 2, 2015 — — Awarded 1,185,000 576,000 Vested (24,000 ) — Forfeited and Canceled — — Unvested and unissued at April 30, 2016 1,161,000 576,000 Awarded 99,000 32,000 Vested (27,000 ) (11,333 ) Forfeited and Canceled (64,500 ) (28,667 ) Unvested and unissued at April 29, 2017 1,168,500 568,000 Weighted Average Value Probable Unearned Compensation Expense at April 29, 2017 Target Unearned Compensation Expense at April 29, 2017 Grant Fiscal Year Number of Shares Unvested Vesting Period 2016 and 2017 779,000 (1) Five-year RSA cliff, performance-based $ 31.41 $ 16.4 $ 16.4 2016 and 2017 568,000 Five-year RSU, 30% in fiscal 2018, 30% in fiscal 2019 and 40% in fiscal 2020 $ 33.45 $ 10.2 $ 10.2 (1) RSA shares based on fiscal 2020 EBITDA target levels 2010 Stock Plan The 2010 Stock Plan permits a total of 2,000,000 shares of our common stock to be awarded to participants in the form of nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, and performance share units. The 2010 Stock Plan is designed to allow for "performance-based compensation" under Section 162(m) of the Internal Revenue Code of 1986, as amended ("Code"). As such, qualified awards payable pursuant to the 2010 Stock Plan should be deductible for federal income tax purposes under most circumstances. In the event of a change in control, the vesting of all outstanding option awards will be accelerated. With the approval of the 2014 Incentive Plan, no further awards shall be granted under the 2010 Stock Plan. Stock Options Awarded Under the 2010 Stock Plan In fiscal 2015, our Compensation Committee awarded options to purchase 108,000 shares of our common stock to our executive officers. There were no options awarded in fiscal 2016 or fiscal 2017 under the 2010 Stock Plan. The stock options have a ten -year term and will vest 33.3% each year over a three -year period. The exercise price is the closing price on the date granted. The following tables summarize the stock option activity and related information for the stock options granted under the 2010 Stock Plan for fiscal 2017 , 2016 and 2015 : Summary of Option Activity Shares Wtd. Avg. Exercise Price Outstanding May 3, 2014 420,001 $ 11.75 Awarded 108,000 37.01 Exercised (285,334 ) 10.47 Canceled — — Outstanding May 2, 2015 242,667 24.50 Awarded — — Exercised (18,668 ) 12.96 Canceled (26,667 ) 32.07 Outstanding April 30, 2016 197,332 24.55 Awarded — — Exercised (125,332 ) 17.40 Canceled — — Outstanding April 29, 2017 72,000 $ 37.01 Options Outstanding Shares Exercise Price Avg. Remaining Life (Years) 72,000 $ 37.01 7.3 Options Exercisable Shares Exercise Price Avg. Remaining Life (Years) 48,000 $ 37.01 7.3 The options outstanding had an intrinsic value of $0.5 million at April 29, 2017 . The intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of fiscal 2017 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all options holders exercised their options on April 29, 2017 . We estimated the fair value of these stock options on the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2010 Stock Plan Fiscal 2015 Awards Average expected volatility 51.00 % Average risk-free interest rate 1.00 % Dividend yield 1.66 % Expected life of options (in years) 4.12 Weighted-average grant-date fair value $ 14.99 Expected volatility was based on the monthly changes in our historical common stock prices over the expected life of the award. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant corresponding to the expected life of the options. Our dividend yield is based on the average dividend yield for the previous two years from the date of grant. The expected life of options is based on historical stock option exercise patterns and the terms of the options. Restricted Stock and Restricted Stock Units Awarded Under the 2010 Stock Plan During fiscal 2012, our Compensation Committee awarded 100,000 shares of common stock subject to performance-based restricted stock awards ("RSAs") to certain non-executive members of management. The performance measure was the Company's internal enterprise value at the end of fiscal 2015. The internal enterprise value was equal to the product of (i) fiscal 2015 EBITDA and (ii) 7.5 (the historic multiple of EBITDA), subject to an adjustment for cash, short-term investments, debt, preferred stock, certain equity issuances, certain acquisitions and the changes in the dividend rate. The restricted stock awards will vest, i.e., the restriction will lapse, one-third as of the end of fiscal 2015, one-third as of the end of fiscal 2016 and the final one-third as of the end of fiscal 2017, based on the enterprise value as of the end of fiscal 2015, to the extent the performance goals have been achieved and provided the employee remains employed. The remaining shares will be forfeited. The Company exceeded the targeted internal enterprise value measure for fiscal 2015. During fiscal 2011, the Compensation Committee awarded 640,000 shares of RSAs to certain executive officers. The performance measure was the Company's internal enterprise value at the end of fiscal 2015. The internal enterprise value was equal to the product of (i) fiscal 2015 EBITDA and (ii) 7.5 (the historic multiple of EBITDA), subject to an adjustment for cash, short-term investments, debt, preferred stock, certain equity issuances, certain acquisitions and the changes in the dividend rate. The Company exceeded the targeted internal enterprise value measure for fiscal 2015 and all awards were delivered in fiscal 2016. During fiscal 2011, our Compensation Committee awarded 320,000 shares of common stock subject to time-based restricted stock units ("RSUs") to certain executive officers. The restricted stock units vested 20% each year on the last day of our fiscal year and were 100% vested on the last day of fiscal 2015. The shares of common stock underlying the vested RSUs will not be delivered to the employee until after the employee terminates employment from the Company or upon change of control. Bonus in Lieu of Dividends - For the performance-based restricted stock awards, bonuses in lieu of dividends will not be paid until the restrictions lapse (i.e., not in first 5 years). At such time as the restrictions lapse, the executive will be paid a “dividend catch-up” bonus calculated based on the dividends declared during the restricted period and the number of shares earned. For the time-based restricted stock units, once the restricted stock units vest and until the shares are delivered, the executive will be paid a quarterly bonus in lieu of dividends calculated based on declared dividends and the total number of vested restricted stock units held. Tandem Cash Award - During fiscal 2011, the executives were also granted RSA tandem cash awards. These cash incentive awards were paid since performance under the RSAs described above exceeded target performance. The amount paid under the RSA tandem cash awards equaled the product of the closing price of our common stock as of May 1, 2015 of $43.59 and 40% of the awarded RSAs. The Company exceeded the targeted internal enterprise value measure for fiscal 2015. In fiscal 2015, we recorded a compensation expense of $5.6 million related to the tandem cash awards. The following table summarizes the RSA and RSU activity for fiscal year 2017 , 2016 and 2015 under the 2010 Stock Plan: RSA Shares RSU Shares Unvested and unissued at May 3, 2014 700,000 60,000 Awarded — — Vested (633,333 ) (60,000 ) Forfeited and Canceled — — Unvested and unissued at May 2, 2015 66,667 — Awarded — — Vested (33,333 ) — Forfeited and Canceled — — Unvested and unissued at April 30, 2016 33,334 — Awarded — — Vested (33,334 ) — Forfeited and Canceled — — Unvested and unissued at April 29, 2017 — — 2007 Stock Plan The 2007 Stock Plan permitted a total of 1,250,000 shares of our common stock to be awarded to participants. Shares issued under the Stock Plan may be either authorized but unissued shares, or treasury shares. If any award terminates, expires, is canceled or forfeited as to any number of shares of common stock, new awards may be granted with respect to such shares. The total number of shares with respect to which awards may be granted to any participant in any calendar year shall not exceed 200,000 shares. With the approval of the 2014 Incentive Plan, no further awards shall be granted under the 2007 Stock Plan. Stock Options Awarded Under the 2007 Stock Plan In fiscal 2015, our Compensation Committee awarded options to purchase 50,500 shares of our common stock to certain non-executive members of the management team that vest one-third per year on each anniversary of the date of the grant. There were no shares awarded for the 2007 Stock Plan in fiscal 2017 or fiscal 2016. The stock options awarded under the 2007 Stock Plan have a ten -year term. The exercise price is the closing price on the date granted. The following tables summarize the stock option activity and related information for the stock options granted under the 2007 Stock Plan for fiscal year 2017 , 2016 and 2015 : Summary of Option Activity Shares Wtd. Avg. Exercise Price Outstanding at May 3, 2014 172,359 $ 10.02 Awarded 50,500 37.01 Exercised (114,859 ) 8.55 Canceled — — Outstanding at May 2, 2015 108,000 24.21 Awarded — — Exercised (28,334 ) 10.99 Canceled — — Outstanding at April 30, 2016 79,666 28.91 Awarded — — Exercised (22,497 ) 21.52 Canceled — — Outstanding at April 29, 2017 57,169 $ 31.82 Options Outstanding Shares Exercise Price Avg. Life (Years) 5,000 $ 10.55 3.3 8,333 $ 17.27 6.3 43,836 $ 37.01 7.3 57,169 $ 31.82 Options Exercisable Shares Exercise Price Avg. Life (Years) 5,000 $ 10.55 3.3 8,333 $ 17.27 6.3 27,002 $ 37.01 7.3 40,335 $ 29.65 We estimated the fair value of these stock options on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Fiscal 2015 Awards Average expected volatility 51.00 % Average risk-free interest rate 1.00 % Dividend yield 1.66 % Expected life of options (in years) 4.12 Weighted-average grant-date fair value $ 14.99 The options outstanding had an intrinsic value of $0.7 million at April 29, 2017 . Restricted Stock Awards Awarded Under the 2007 Stock Plan In April 2007, 225,000 shares of common stock subject to performance-based RSAs granted to our CEO in fiscal 2006 and 2007 were converted to RSUs. The RSUs were subject to the same vesting schedule and other major provisions of the RSAs they replaced, except the shares for stock underlying the RSUs will not be issued and delivered until the earlier of: (1) thirty days after the CEO’s date of termination of employment with the Company and all of its subsidiaries and affiliates; or (2) the last day of our fiscal year in which the payment of common stock in satisfaction of the RSUs becomes deductible to the Company under Section 162(m) of the Code. The RSUs are not entitled to voting rights or dividends, however a bonus in lieu of dividends is paid. The RSU’s were fully vested as of April 29, 2017 . As of April 29, 2017 , 23,188 shares have been delivered in connection with the RSUs with a remaining balance to be delivered of 201,812 shares. At the beginning of fiscal 2015, there were no RSAs outstanding under the 2007 Stock Plan. We issued 13,500 shares in fiscal 2015 of restricted shares under the plan to our independent directors, all of which vested immediately upon grant. The following table summarizes the RSA activity under the 2007 Stock Plan: Fiscal 2015 Unvested at beginning of fiscal year — Awarded 13,500 Vested (13,500 ) Forfeited — Unvested at end of period — Stock-based Compensation We recognize pre-tax compensation expense for stock options, RSA's and RSU's under our 2014 Incentive Plan and our 2010 and 2007 Stock Plans in the selling and administrative section of our Consolidated Statements of Income. Our awards subject to graded vesting are recognized using the accelerated recognition method. As of April 29, 2017 , we had $26.7 million of unrecognized equity-based compensation cost that we expect to recognize over a weighted average period of 3.0 years . The table below summarizes the expense related to the equity awards for fiscal 2017 , 2016 and 2015 . Compensation Expense Fiscal 2017 Fiscal 2016 Fiscal 2015 2014 Incentive Plan: RSAs $ 6.6 $ 3.6 $ 0.5 RSUs 5.5 2.8 — Total 2014 Incentive Plan 12.1 6.4 0.5 2010 Stock Plan: RSAs — — 1.5 RSUs 0.1 0.1 0.1 Stock options 0.1 0.3 1.2 Total 2010 Stock Plan 0.2 0.4 2.8 2007 Stock Plan: RSAs — — 0.5 Stock options 0.1 0.6 0.5 Total 2007 Stock Plan 0.1 0.6 1.0 Total Compensation Expense $ 12.4 $ 7.4 $ 4.3 |
Employee 401(k) Savings Plan
Employee 401(k) Savings Plan | 12 Months Ended |
Apr. 29, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee 401(k) Savings Plan | Employee 401(k) Savings Plan We have an employee 401(k) Savings Plan covering substantially all U.S. employees to which we make contributions equal to 3% of eligible compensation. Our contribution to the employee 401(k) Savings Plan was $1.3 million in fiscal years 2017 , 2016 and 2015 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 29, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Significant components of our deferred tax assets and liabilities were as follows: April 29, April 30, Deferred tax liabilities: Accelerated tax depreciation $ 2.0 $ 4.1 Foreign tax withheld 4.2 2.1 Deferred income 0.4 0.8 Deferred tax liabilities, gross 6.6 7.0 Deferred tax assets: Deferred compensation and stock award amortization 10.1 7.9 Inventory valuation differences 2.9 2.3 Property valuation differences 1.9 2.0 Accelerated book amortization 7.2 8.9 Environmental reserves 0.5 0.7 Bad debt reserves 0.1 0.1 Vacation accruals 1.0 1.1 Foreign investment tax credit 17.9 14.4 Net operating loss carryovers 4.7 4.4 Foreign tax credits — 0.9 Other accruals 2.6 3.0 Deferred tax assets, gross 48.9 45.7 Less valuation allowance 1.9 1.3 Deferred tax assets, net of valuation allowance 47.0 44.4 Net deferred tax assets $ 40.4 $ 37.4 Balance sheet classification: Current asset $ — $ 11.8 Non-current asset 40.4 27.7 Current liability — (2.1 ) $ 40.4 $ 37.4 In addition to the deferred tax assets listed in the table above, the Company had an unrecorded tax benefit of $2.7 million at April 29, 2017 , primarily attributable to the difference between the amount of the financial statement expense and the allowable tax deduction for the Company's common stock issued under the Company's stock compensation plans. Although not recognized for financial reporting purposes, this unrecognized tax benefit is available to reduce future taxable income and is incorporated into our tax attribute carry-forwards, which are discussed below. The Company evaluated all available positive and negative evidence, including past operating results and the 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 state net deferred tax assets. We will continue to maintain a valuation allowance of $1.9 million related to certain state, federal and foreign net operating loss carryovers until we determine that these deferred tax assets are more likely than not realizable. At April 29, 2017 , we had available $2.1 million of federal and $79.7 million of state net operating loss carryforwards (having a tax benefit of $0.7 million and $4.0 million , respectively). If unused, the U.S. federal net operating loss carryforwards will expire in the years 2018 through 2031. The state net operating loss carryforwards will expire in the years 2017 through 2037. The tax laws of Malta provide for investment tax credits of 30% of certain qualified expenditures. Total unused credits are $17.9 million as of April 29, 2017 , of which $16.0 million can be carried forward indefinitely and $1.9 million expire in 2020. We record investment tax credits using the "flow through" method. Components of income before income taxes are as follows: Fiscal Year Ended April 29, April 30, May 2, Domestic source $ 21.6 $ 25.3 $ 39.9 Foreign source 94.3 85.6 80.9 Income before income tax $ 115.9 $ 110.9 $ 120.8 Income taxes consisted of the following: Fiscal Year Ended April 29, April 30, May 2, Current Federal $ 9.2 $ 2.8 $ 5.4 Foreign 17.0 14.7 13.8 State 0.7 0.6 0.9 Subtotal 26.9 18.1 20.1 Deferred Federal and state (1.2 ) 5.5 6.0 Foreign (2.7 ) 2.7 (6.3 ) Subtotal (3.9 ) 8.2 (0.3 ) Total income tax expense $ 23.0 $ 26.3 $ 19.8 A reconciliation of the consolidated provisions for income taxes from continuing operations to amounts determined by applying the prevailing statutory federal income tax rate to pre-tax earnings is as follows: Fiscal Year Ended April 29, April 30, May 2, Income tax at statutory rate $ 40.5 35.0 % $ 38.9 35.0 % $ 42.2 35.0 % Effect of: State income taxes, net of federal benefit 0.9 0.8 % 0.4 0.4 % 0.8 0.6 % Foreign operations with lower statutory rates (14.5 ) (12.5 )% (11.9 ) (10.7 )% (11.5 ) (9.5 )% Foreign losses with no tax benefit — — % — — % 0.1 0.1 % Foreign investment tax credit (4.7 ) (4.1 )% (2.1 ) (1.9 )% (8.3 ) (6.9 )% Change in tax reserve 0.1 0.1 % 0.1 0.1 % 0.2 0.2 % Change in permanent reinvestment assertion — — % — — % 0.3 0.2 % Change in valuation allowance 0.3 0.3 % 0.1 0.1 % (3.6 ) (3.0 )% Other, net 0.4 0.3 % 0.8 0.8 % (0.4 ) (0.3 )% Income tax provision/(benefit) $ 23.0 19.9 % $ 26.3 23.8 % $ 19.8 16.4 % We paid income taxes of $19.0 million in fiscal 2017 , $10.0 million in fiscal 2016 and $9.0 million in fiscal 2015 . No U.S. provision has been made for income taxes on undistributed net income of foreign operations, as we expect them to be indefinitely reinvested within our foreign operations. If the undistributed net income of $407.9 million were distributed as dividends, we would be subject to foreign tax withholdings and incur additional income tax expense of approximately $142.8 million, before available foreign tax credits. It is not practicable to estimate the amount of foreign tax withholdings or foreign tax credits that may be available. As of April 29, 2017 , our gross unrecognized tax benefits totaled $1.3 million , which would favorably affect the effective tax rate if resolved in our favor. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: Balance at April 30, 2016 $ 1.2 Increases for positions related to the prior years — Increases for positions related to the current year 0.1 Decreases for positions related to the prior years — Lapsing of statutes of limitations — Balance at April 29, 2017 $ 1.3 The U.S. federal statute of limitations remains open for fiscal years ended on or after 2014 and for state tax purposes on or after fiscal year 2013. Tax authorities may have the ability to review and adjust net operating losses or tax credits that were generated prior to these fiscal years. In the major foreign jurisdictions, fiscal year 2012 and subsequent periods remain open and subject to examination by taxing authorities. The continuing practice of the Company is to recognize interest and penalties related to income tax matters in the provision for income taxes. We had $0.1 million accrued for interest and no accrual for penalties at April 29, 2017 . |
Income Per Share Attributable t
Income Per Share Attributable to Methode Shareholders | 12 Months Ended |
Apr. 29, 2017 | |
Earnings Per Share [Abstract] | |
Income Per Share Attributable to Methode Shareholders | Income Per Share Attributable to Methode Shareholders Basic income per share attributable to Methode shareholders ("basic earnings per share") is calculated by dividing net earnings by the weighted average number of common shares outstanding for the applicable period. Diluted income per share attributable to Methode shareholders ("diluted income per share") is calculated after adjusting the denominator of the basic income per share calculation for the effect of all potential dilutive common shares outstanding during the period. The following table sets forth the computation of basic and diluted income per share: Fiscal Year Ended April 29, April 30, May 2, Numerator: Net income attributable to Methode Electronics, Inc. $ 92.9 $ 84.6 $ 101.1 Denominator: Denominator for basic earnings per share-weighted average shares outstanding and vested/unissued restricted stock awards 37,283,096 38,333,484 38,686,715 Dilutive potential common shares-employee stock options, restricted stock awards and restricted stock units 202,605 138,128 580,151 Denominator for diluted earnings per share 37,485,701 38,471,612 39,266,866 Basic and diluted income per share: Basic income per share $ 2.49 $ 2.21 $ 2.61 Diluted income per share $ 2.48 $ 2.20 $ 2.57 Options to purchase 138,500 shares and 158,500 shares of common stock were outstanding at April 30, 2016 and May 2, 2015, respectively but were not included in the computation of diluted earnings per share because the exercise price was greater than the average market price of the common shares; therefore, the effect would have been anti-dilutive. RSAs for 779,000 shares and 774,000 have been excluded in the computation of diluted net income per share for both fiscal 2017 and fiscal 2016, respectively, as these awards are contingent on the Company's full year performance in fiscal 2020. |
Environmnetal Matters
Environmnetal Matters | 12 Months Ended |
Apr. 29, 2017 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Matters | Environmental Matters We are not aware of any potential unasserted environmental claims that may be brought against us. We are involved in environmental investigations and/or remediation at two of our plant sites no longer used for operations. We use environmental consultants to assist us in evaluating our environmental liabilities in order to establish appropriate accruals in our financial statements. Accruals are recorded when environmental remediation is probable and the costs can be reasonably estimated. A number of factors affect the cost of environmental remediation, including the determination of the extent of contamination, the length of time remediation may require, the complexity of environmental regulations and the advancement of remediation technology. Considering these factors, we have estimated (without discounting) the costs of remediation, which will be incurred over a period of several years. Recovery from insurance or other third parties is not anticipated. We are not yet able to determine when such remediation activity will be complete, but estimates for certain remediation efforts are projected through fiscal 2018. At April 29, 2017 and April 30, 2016 , we had accruals, primarily based upon independent engineering studies, for environmental matters of $1.3 million and $1.7 million, respectively, of which $0.3 million was classified in other accrued expenses and the remainder was included in other long-term liabilities on our Consolidated Balance Sheets. We believe the provisions made for environmental matters are adequate to satisfy liabilities relating to such matters, however it is reasonably possible that costs could exceed accrued amounts if the selected methods of remediation do not reduce the contaminates at the sites to levels acceptable to federal and state regulatory agencies. In fiscal 2017, we spent $1.2 million on remediation cleanups and related studies, compared with $1.0 million in fiscal 2016 and $0.5 million in fiscal 2015. The costs associated with environmental matters as they relate to day-to-day activities were not material in fiscal 2017, fiscal 2016 or fiscal 2015. |
Pending Litigation
Pending Litigation | 12 Months Ended |
Apr. 29, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Pending Litigation | Pending Litigation Certain litigation arising in the normal course of business is pending against us. We, from time to time, are subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, patent infringements claims, employment-related matters and environmental 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 the opinion of our management, based on the information available, that we have adequate reserves for these liabilities and that the ultimate resolution of these matters will not have a material adverse effect on our consolidated financial statements. 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 and 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, and an affiliated company has filed a suit in front of the European Union Intellectual Property Office seeking to invalidate the company’s NOVA trademark in the EU. 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 April 29, 2017, the matter remains in the discovery stage. |
Material Customers
Material Customers | 12 Months Ended |
Apr. 29, 2017 | |
Risks and Uncertainties [Abstract] | |
Material Customers | Material Customers Sales to two customers in the Automotive segment, either directly or through their tiered suppliers, represented a significant portion of our business. Net sales to these two customers approximated 49.6% and 9.3% of consolidated net sales, respectively, in fiscal 2017; these two customers accounted for 49.5% and 11.5% of consolidated net sales, respectively, in fiscal 2016 and these two customers accounted for 44.8% and 12.8% of consolidated net sales, respectively, in fiscal 2015. At April 29, 2017 and April 30, 2016 , accounts receivable from these two customers in the automotive industry were approximately $90.6 million and $90.0 million, respectively, which included $55.3 million and $51.4 million, respectively, at our North American reporting unit. Accounts receivable are generally due within 30 to 60 days. Credit losses relating to all customers have not been material. |
Line of Credit
Line of Credit | 12 Months Ended |
Apr. 29, 2017 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit On November 18, 2016, the Company replaced its Amended and Restated Credit Agreement with a new Credit Agreement with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Wells Fargo Bank, National Association, as L/C Issuer, and the Lenders named therein (the “Credit Agreement”). In connection with the execution of the Credit Agreement, the Amended and Restated Credit Agreement dated as of February 25, 2011 by and among the Company, Bank of America, N.A., as administrative agent, and certain other financial institutions was terminated. The Credit Agreement has a maturity date of November 18, 2021. The credit facility is in the maximum principal amount of $150.0 million, with an option to increase the principal amount by up to an additional $100.0 million, subject to customary conditions and approval of the lender(s) providing new commitment(s). The credit facility is available for general corporate purposes, including working capital and acquisitions. 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 Credit Agreement is guaranteed by the Company’s wholly-owned U.S. subsidiaries. The Credit Agreement contains customary representations and warranties, financial covenants, restrictive covenants and events of default. At April 29, 2017 , the interest rate on the credit facility was 1.25% plus LIBOR . At April 29, 2017 , we were in compliance with the covenants of the agreement. During fiscal 2017, we had no borrowings and payments of $31.1 million, which includes interest of $1.1 million under this credit facility. As of April 29, 2017 , there were outstanding balances against the credit facility of $27.0 million. There was $123.0 million available to borrow under the credit facility as of April 29, 2017 , which does not include the option to increase the principal amount. We believe the fair value approximates the carrying amount as of April 29, 2017 . |
Segment Information and Geograp
Segment Information and Geographic Area Information | 12 Months Ended |
Apr. 29, 2017 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Area Information | Segment Information and Geographic Area 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), consumer and industrial equipment, aerospace, rail and other transportation industries. 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 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, construction, consumer, material handling, medical, military, mining, point-of-sale, and telecommunications markets. Solutions include conductive polymers, 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. Through fiscal 2017, the Interface segment included our Connectivity reporting unit, which provided solutions for computer and networking markets, including connectors and custom cable assemblies. This reporting unit was shuttered at the end of fiscal 2017 due to market conditions. The Power Products segment manufactures braided flexible cables, current-carrying laminated busbars and devices, custom power-product assemblies, such as our PowerRail solution, high-current low-voltage flexible power cabling systems and powder coated busbars that are used in various markets and applications, including aerospace, computers, industrial and power conversion, military, telecommunications, and transportation. The Other segment is primarily made up of our medical device business, which includes Dabir Surfaces, 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. Through fiscal 2017, the Other segment included our Active Energy Solutions reporting unit, which provided inverters, battery systems and insulated gate bipolar transistor solutions. Due to market conditions, this reporting unit was shuttered at the end of fiscal 2017. In fiscal 2015, the Other segment also included independent laboratories that provided services for qualification, testing and certification, and analysis of electronic and optical components. The independent laboratories were sold in fiscal 2015. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 above. We allocate resources to and evaluate performance of segments based on operating income. Transfers between segments are recorded using internal transfer prices set by us. The tables below present information about our reportable segments. The Interface segment's income from operations for fiscal 2015 includes an impairment of goodwill charge of $11.1 million . Fiscal Year Ended April 29, 2017 Automotive Interface Power Products Other Eliminations/Corporate Consolidated Net sales $ 641.0 $ 128.2 $ 56.5 $ 2.2 $ (11.4 ) $ 816.5 Transfers between segments (8.8 ) (0.8 ) (0.2 ) (1.9 ) 11.7 — Net sales to unaffiliated customers $ 632.2 $ 127.4 $ 56.3 $ 0.3 $ 0.3 $ 816.5 Income/(loss) from operations $ 148.3 $ (0.9 ) $ 11.5 $ (12.4 ) $ (35.7 ) $ 110.8 Gain on sale of business — Interest income, net (0.4 ) Other income, net (4.7 ) Income before income taxes $ 115.9 Depreciation and amortization $ 15.5 $ 4.2 $ 2.8 $ 1.0 $ 0.8 $ 24.3 Identifiable assets $ 462.3 $ 202.5 $ 46.2 $ 5.2 $ (12.2 ) $ 704.0 Fiscal Year ended April 30, 2016 Automotive Interface Power Products Other Eliminations/Corporate Consolidated Net sales $ 623.1 $ 142.6 $ 54.1 $ 0.6 $ (11.3 ) $ 809.1 Transfers between segments (8.8 ) (1.8 ) (0.6 ) (0.3 ) 11.5 — Net sales to unaffiliated customers $ 614.3 $ 140.8 $ 53.5 $ 0.3 $ 0.2 $ 809.1 Income/(loss) from operations $ 136.8 $ 2.7 $ 9.4 $ (8.8 ) $ (30.4 ) $ 109.7 Gain on sale of business — Interest expense, net (0.7 ) Other income, net (0.5 ) Income before income taxes $ 110.9 Depreciation and amortization $ 15.6 $ 4.3 $ 2.3 $ 0.6 $ 1.1 $ 23.9 Identifiable assets $ 418.4 $ 184.8 $ 46.4 $ 5.0 $ 1.3 $ 655.9 Fiscal Year ended May 2, 2015 Automotive Interface Power Products Other Eliminations/Corporate Consolidated Net sales $ 633.0 $ 163.8 $ 86.1 $ 5.5 $ (7.3 ) $ 881.1 Transfers between segments (4.6 ) (2.1 ) (0.4 ) (0.3 ) 7.4 — Net sales to unaffiliated customers $ 628.4 $ 161.7 $ 85.7 $ 5.2 $ 0.1 $ 881.1 Income (loss) from operations $ 124.9 $ 7.0 $ 23.2 $ (6.4 ) $ (36.5 ) $ 112.2 Gain on sale of business (7.7 ) Interest expense, net (0.7 ) Other expense (0.2 ) Income/(loss) before income taxes $ 120.8 Depreciation and amortization $ 16.6 $ 2.8 $ 2.4 $ 0.4 $ 1.2 $ 23.4 Identifiable assets $ 365.5 $ 186.4 $ 38.5 $ 3.7 $ 11.7 $ 605.8 The following table sets forth certain geographic financial information for fiscal years ended April 29, 2017 , April 30, 2016 and May 2, 2015 . Geographic net sales and income are determined based our sales and income from our various operational locations. Fiscal Year Ended April 29, April 30, May 2, Net Sales: U.S. $ 506.9 $ 491.9 $ 564.6 China 127.7 124.8 112.6 Malta 155.5 167.1 153.5 Other 26.4 25.3 50.4 Total Net Sales $ 816.5 $ 809.1 $ 881.1 Property, Plant and Equipment, Net: U.S. $ 44.9 $ 44.0 $ 42.7 China 5.9 7.4 9.0 Malta 26.4 28.7 28.0 Mexico 4.3 3.9 5.8 Other 9.1 9.0 7.8 Total Property, Plant and Equipment, Net $ 90.6 $ 93.0 $ 93.3 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Apr. 29, 2017 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments We lease certain office and manufacturing properties under non-cancelable operating leases expiring at various dates through fiscal 2031. Rental expense under non-cancelable operating leases amounted to $4.9 million, $5.0 million and $5.5 million in fiscal 2017, 2016 and 2015, respectively. Our aggregate minimum rental commitments under all non-cancelable operating leases are summarized in the table below for the next succeeding five fiscal years: 2018 $ 4.0 2019 $ 3.0 2020 $ 2.0 2021 $ 1.2 2022 $ 1.2 |
Pre-production Costs Related to
Pre-production Costs Related to Long-Term Supply Arrangements | 12 Months Ended |
Apr. 29, 2017 | |
Preproduction Costs Related to Long-term Supply Arrangements [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 products produced for our customers under long-term supply agreements. We had $15.5 million and $9.5 million for fiscal year ended April 29, 2017 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 $7.1 million and $8.0 million for the fiscal year ended April 29, 2017 and April 30, 2016, respectively, of Company owned pre-production tooling, which is capitalized within property, plant and equipment. |
Summary of Quarterly Results of
Summary of Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Apr. 29, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations (Unaudited) | Summary of Quarterly Results of Operations (Unaudited) The following is a summary of unaudited quarterly results of operations for the years ended April 29, 2017 and April 30, 2016: Fiscal 2017 July 30 October 29 January 28 April 29 Net sales $ 191.9 $ 209.3 $ 195.6 $ 219.7 Gross profit $ 54.1 $ 55.6 $ 53.4 $ 55.2 Net income attributable to Methode Electronics, Inc. $ 21.2 $ 24.9 $ 23.7 $ 23.1 Net income per basic common share $ 0.57 $ 0.66 $ 0.64 $ 0.62 Net income per diluted common share $ 0.57 $ 0.66 $ 0.63 $ 0.62 Fiscal 2016 Quarter Ended August 1 October 31 January 30 April 30 Net sales $ 203.3 $ 208.4 $ 184.6 $ 212.8 Gross profit $ 53.6 $ 50.9 $ 47.6 $ 60.8 Net income attributable to Methode Electronics, Inc. $ 23.5 $ 21.2 $ 17.2 $ 22.7 Net income per basic common share $ 0.60 $ 0.55 $ 0.45 $ 0.61 Net income per diluted common share $ 0.60 $ 0.54 $ 0.45 $ 0.61 Significant Items for Fiscal 2017 The table below contains items included in fiscal 2017: Fiscal 2017 July 30 October 29 January 28 April 29 Legal fees related to the Hetronic lawsuit $ 4.3 $ 2.3 $ 1.6 $ 2.8 Shut-down costs for two reporting units $ — $ — $ — $ 2.2 Acquisition expenses * $ — $ — $ — $ 1.5 Grant income from foreign government for maintaining certain employment levels $ — $ (1.5 ) $ (1.5 ) $ (1.5 ) * Related to a potential acquisition we elected not to undertake. Significant Items for Fiscal 2016 The first, second, third and fourth quarters include pre-tax legal expenses of $1.2 million , $2.7 million , $2.7 million and $3.3 million , respectively related to the Hetronic lawsuits. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 29, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On June 19, 2017, Methode entered into an agreement to purchase 100% of the stock of Procoplast for an estimated $21.4 million in cash, plus the assumption of debt of $22.5 million . Procoplast is an independent manufacturer of automotive assemblies located close to the Belgian-German border, which is in close proximity to several key automotive customers. Its brand new facility includes automated assembly equipment, injection molding and testing equipment. Procoplast produces high volume products for Bosch, Kiekert, ZF-TRW and others, which will augment our transmission lead-frame business. The closing of the transaction is subject to customary conditions, including, but not limited to, regulatory approvals. The transaction is expected to close in the second quarter of Fiscal 2018. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Apr. 29, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS METHODE ELECTRONICS, INC. AND SUBSIDIARIES (in millions) COL. A COL. B COL. C COL. D. COL. E Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts— Describe Deductions— Describe Balance at End of Period YEAR ENDED APRIL 29, 2017: Reserves and allowances deducted from asset accounts: Allowance for uncollectible accounts $ 0.5 $ 0.1 $ — $ — (2) $ 0.6 Deferred tax valuation allowance $ 1.3 $ (0.6 ) (5) $ 1.9 YEAR ENDED APRIL 30, 2016: Reserves and allowances deducted from asset accounts: Allowance for uncollectible accounts $ 0.5 $ 0.1 $ — $ 0.1 (2) $ 0.5 Deferred tax valuation allowance $ 2.0 $ 0.7 (5) $ 1.3 YEAR ENDED MAY 2, 2015: Reserves and allowances deducted from asset accounts: Allowance for uncollectible accounts $ 0.7 $ 0.1 $ — $ 0.3 (2) $ 0.5 Deferred tax valuation allowance $ 14.0 $ 12.0 (3) $ 2.0 ______________________________________ (1) Impact of foreign currency translation and other reclassifications. (2) Uncollectible accounts written off, net of recoveries. (3) Primarily represents changes in Malta valuation allowance and changes in temporary items. (4) Represents release of the U.S. valuation allowance. (5) Represents change in temporary items. |
Significant Accounting Polici25
Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 29, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts and operations of Methode Electronics, Inc. and its subsidiaries. As used herein, “we,” “us,” “our,” the “Company” or “Methode” means Methode Electronics, Inc. and its subsidiaries. |
Fiscal Reporting Periods | Financial Reporting Periods. We maintain our financial records on the basis of a fifty-two or fifty-three week fiscal year ending on the Saturday closest to April 30. Fiscal 2017 , fiscal 2016 and fiscal 2015 represent fifty-two weeks of results. |
Cash Equivalents | Cash Equivalents. All highly liquid investments with a maturity of three months or less when purchased are classified in the Consolidated Balance Sheets as cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts. We carry accounts receivable at their face amounts less an allowance for doubtful accounts. On a regular basis, we record an allowance for uncollectible receivables based upon past transaction history with customers, customer payment practices and economic conditions. Actual collection experience may differ from the current estimate of net receivables. A change to the allowance for uncollectible amounts may be required if a future event or other change in circumstances results in a change in the estimate of the ultimate collectability of a specific account. We do not require collateral for our accounts receivable balances. Accounts are written off against the allowance account when they are determined to be no longer collectible. |
Inventories | Inventories. Inventories are stated at the lower-of-cost (first-in, first-out method) or market, including direct material costs and direct and indirect manufacturing costs. |
Property, Plant and Equipment | Property, Plant and Equipment. Properties are stated on the basis of cost. We amortize such costs by annual charges to income, computed on the straight-line method using estimated useful lives of 5 to 40 years for buildings and improvements and 3 to 15 years for machinery and equipment for financial reporting purposes. Accelerated methods are generally used for income tax purposes. |
Income Taxes | Income Taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. |
Revenue Recognition | Revenue Recognition. We recognize revenue on product sales when i) persuasive evidence of an agreement exists, ii) the price is fixed or determinable, iii) delivery has occurred or services have been rendered, and iv) collection of the sales proceeds is reasonably assured. Revenue from our product sales not requiring installation, net of trade discounts and estimated sales allowances, is recognized when title passes, which is generally upon shipment. We do not have any additional obligations or customer acceptance provisions after shipment of such products. We handle returns by replacing, repairing or issuing credit for defective products when returned. Return costs were not significant in fiscal 2017 , fiscal 2016 or fiscal 2015 . |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs . Shipping and handling fees billed to customers are included in net sales, and the related costs are included in cost of products sold. |
Foreign Currency Translation | Foreign Currency Translation. The functional currencies of the majority of our foreign subsidiaries are their local currencies. The results of operations of these foreign subsidiaries are translated into U.S. dollars using average exchange rates during the year, while the assets and liabilities are translated using period-end exchange rates. Adjustments from the translation process are classified as a component of shareholders’ equity. Exchange gains and losses arising from transactions denominated in a currency other than the functional currency of the foreign subsidiary are included in the Consolidated Statements of Income in other income. |
Long-Lived Assets | Long-Lived Assets. We continually evaluate whether events and circumstances have occurred which indicate that the remaining estimated useful lives of our intangible assets, excluding goodwill, and other long-lived assets, may warrant revision or that the remaining balance of such assets may not be recoverable. In the event that the undiscounted cash flows resulting from the use of the asset group is less than the carrying amount, an impairment loss equal to the excess of the asset’s carrying amount over its fair value is recorded. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles. Goodwill represents the excess of cost over fair market value of identifiable net assets acquired through business purchases. We review goodwill for impairment on an annual basis or more frequently if indicators of impairment are identified. We evaluate goodwill using a qualitative assessment to determine whether it is more likely than not that the fair value of any reporting unit is less than its carrying amount. If we determine that the fair value of the reporting unit may be less than its carrying amount, we evaluate goodwill using a two-step impairment test. Otherwise, we conclude that no impairment is indicated and we do not perform the two-step impairment test. Our qualitative screen includes an assessment of certain factors including, but not limited to, the results of prior year fair value calculations, the movement of our share price and market capitalization, the reporting unit and overall financial performance, and macroeconomic and industry conditions. We consider the qualitative factors and weight of the evidence obtained to determine if it is more likely than not that the reporting units' fair value is less than the carrying amount. Although we believe the factors considered in the impairment analysis are reasonable, significant changes in any one of the assumptions used could produce a different result. If, after assessing the qualitative factors, we were to determine that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we would perform a two-step impairment test (a quantitative analysis). We may also elect to proceed directly to the two-step impairment analysis without considering such qualitative factors. In the first step of the two-step impairment test, fair values are primarily established using a discounted cash flow methodology (specifically, the income and market approach). The determination of discounted cash flows is based on our long-range forecasts and requires assumptions related to revenue and operating income growth, asset-related expenditures, working capital levels, and other market participant assumptions. The revenue growth rates included in the forecasts are our best estimates based on current and anticipated market conditions, and the profitability assumptions are projected based on current and anticipated cost structures. Long-range forecasting involves uncertainty which increases with each successive period. Key assumptions, such as revenue growth rates and profitability, especially in the outer years, involve a greater degree of uncertainty. |
Research and Development Costs | Research and Development Costs . Costs associated with the enhancement of existing products and the development of new products are charged to expense when incurred. Research and development expenses primarily relate to product engineering and design and development expenses and are classified as a component of our cost of goods sold on the Company's Consolidated Statements of Income. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Fair Value of Other Financial Instruments | Fair Value of Other Financial Instruments. The carrying values of our short-term financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate their fair values because of the short maturity of these instruments. We have no material assets or liabilities measured at fair value on a recurring basis. |
Recently Issued/Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update ("ASU") No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The amendments in this update clarify the definition of a business, with the objective of assisting entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted. The standard will be effective for us in fiscal years beginning April 29, 2018. We do not expect this update to have a material impact on our consolidated financial statements, but it may impact how the Company accounts for acquisitions and disposals in the future. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350).” The amendments remove Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The amendments are effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The standard will be effective for us for annual or any interim goodwill impairment tests in fiscal years beginning May 3, 2020. The Company is currently evaluating the impact of the new requirements on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." The ASU includes multiple 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 began 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 (Topic 606).” 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. The standard will be effective for us in the first quarter of fiscal 2019. Earlier adoption is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements. We have started our evaluation by engaging third-party consultants to assist in the process. We have established a project management team to analyze the impact of this standard by reviewing our current accounting policies and practices, customer contracts and arrangements to identify potential differences that would result from the application of this standard. The types of provisions currently being evaluated which could impact the allocation and timing of revenue include contractually guaranteed price reductions and over time recognition of revenue. There are two transition methods available under the new standard, either full retrospective or modified retrospective. We expect to adopt the standard utilizing the modified retrospective method and expect enhanced disclosure requirements post-adoption. In February 2016, the FASB issued ASU 2016-02, "Leases (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 recognized 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 with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, 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 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 began on April 30, 2017. There is currently no impact to the Company from this amendment, but future acquisitions may be impacted. 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 or 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 began on April 30, 2017. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our Consolidated Balance Sheets. Recently Adopted Accounting Pronouncements 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 U.S. 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. The adoption of this standard in fiscal 2017 did not have an impact on our consolidated financial statements. In May 2015, the FASB issued ASU 2015-07, "Fair Value Measurement: Disclosure for Investments in Certain Entities that calculates net asset value per share (or its Equivalent)." This amendment removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share. This new guidance was effective for interim and annual periods that began after December 15, 2015. The adoption of this standard did not have an impact on our consolidated financial statements. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Apr. 29, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Rollforward | The following table shows the roll-forward of goodwill. Interface Power Products Total Balance as of May 3, 2014 $ 12.0 $ 1.0 $ 13.0 Impairment (11.1 ) — (11.1 ) Foreign currency translation (0.2 ) — (0.2 ) Balance as of May 2, 2015 0.7 1.0 1.7 Impairment — — — Foreign currency translation — — — Balance as of April 30, 2016 0.7 1.0 1.7 Impairment — — — Foreign currency translation (0.1 ) — (0.1 ) Balance as of April 29, 2017 $ 0.6 $ 1.0 $ 1.6 |
Schedule of Identifiable Intangible Assets | The following tables present details of our remaining identifiable intangible assets: As of April 29, 2017 Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Customer relationships and agreements $ 16.3 $ 15.6 $ 0.7 6.8 Trade names, patents and technology licenses 25.8 19.9 5.9 1.4 Covenants not to compete 0.1 0.1 — 0.4 Total $ 42.2 $ 35.6 $ 6.6 As of April 30, 2016 Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization 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 | The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows: 2018 $ 2.2 2019 $ 2.1 2020 $ 0.2 2021 $ 0.1 2022 $ 0.1 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Apr. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock by Class | The number of shares of common stock, par value $0.50 per share, authorized, issued and outstanding and in treasury, was as follows: April 29, 2017 April 30, 2016 Authorized 100,000,000 100,000,000 Issued and outstanding 38,133,925 38,181,985 In treasury 1,346,624 1,346,624 |
Schedule of Expense Related to Equity Awards | The table below summarizes the expense related to the equity awards for fiscal 2017 , 2016 and 2015 . Compensation Expense Fiscal 2017 Fiscal 2016 Fiscal 2015 2014 Incentive Plan: RSAs $ 6.6 $ 3.6 $ 0.5 RSUs 5.5 2.8 — Total 2014 Incentive Plan 12.1 6.4 0.5 2010 Stock Plan: RSAs — — 1.5 RSUs 0.1 0.1 0.1 Stock options 0.1 0.3 1.2 Total 2010 Stock Plan 0.2 0.4 2.8 2007 Stock Plan: RSAs — — 0.5 Stock options 0.1 0.6 0.5 Total 2007 Stock Plan 0.1 0.6 1.0 Total Compensation Expense $ 12.4 $ 7.4 $ 4.3 |
2014 Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Awards and Restricted Stock Units Activity | The following table summarizes the RSA and RSU activity for fiscal 2015 , fiscal 2016 and fiscal 2017 under the 2014 Incentive Plan: RSA Shares RSU Shares Unvested and unissued at May 3, 2014 — — Awarded 13,500 — Vested (13,500 ) — Forfeited and Canceled — — Unvested and unissued at May 2, 2015 — — Awarded 1,185,000 576,000 Vested (24,000 ) — Forfeited and Canceled — — Unvested and unissued at April 30, 2016 1,161,000 576,000 Awarded 99,000 32,000 Vested (27,000 ) (11,333 ) Forfeited and Canceled (64,500 ) (28,667 ) Unvested and unissued at April 29, 2017 1,168,500 568,000 |
Schedule of Restricted Stock Awards and Restricted Stock Units by Grant Year and Vesting Period | Weighted Average Value Probable Unearned Compensation Expense at April 29, 2017 Target Unearned Compensation Expense at April 29, 2017 Grant Fiscal Year Number of Shares Unvested Vesting Period 2016 and 2017 779,000 (1) Five-year RSA cliff, performance-based $ 31.41 $ 16.4 $ 16.4 2016 and 2017 568,000 Five-year RSU, 30% in fiscal 2018, 30% in fiscal 2019 and 40% in fiscal 2020 $ 33.45 $ 10.2 $ 10.2 (1) RSA shares based on fiscal 2020 EBITDA target levels |
2010 Stock Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Awards and Restricted Stock Units Activity | The following table summarizes the RSA and RSU activity for fiscal year 2017 , 2016 and 2015 under the 2010 Stock Plan: RSA Shares RSU Shares Unvested and unissued at May 3, 2014 700,000 60,000 Awarded — — Vested (633,333 ) (60,000 ) Forfeited and Canceled — — Unvested and unissued at May 2, 2015 66,667 — Awarded — — Vested (33,333 ) — Forfeited and Canceled — — Unvested and unissued at April 30, 2016 33,334 — Awarded — — Vested (33,334 ) — Forfeited and Canceled — — Unvested and unissued at April 29, 2017 — — |
Summary of Stock Option Activity and Related Information for Stock Options Granted | The following tables summarize the stock option activity and related information for the stock options granted under the 2010 Stock Plan for fiscal 2017 , 2016 and 2015 : Summary of Option Activity Shares Wtd. Avg. Exercise Price Outstanding May 3, 2014 420,001 $ 11.75 Awarded 108,000 37.01 Exercised (285,334 ) 10.47 Canceled — — Outstanding May 2, 2015 242,667 24.50 Awarded — — Exercised (18,668 ) 12.96 Canceled (26,667 ) 32.07 Outstanding April 30, 2016 197,332 24.55 Awarded — — Exercised (125,332 ) 17.40 Canceled — — Outstanding April 29, 2017 72,000 $ 37.01 |
Summary of Stock Option Activity and Related Information for Stock Options Granted, Options Outstanding and Exercisable | Options Outstanding Shares Exercise Price Avg. Remaining Life (Years) 72,000 $ 37.01 7.3 Options Exercisable Shares Exercise Price Avg. Remaining Life (Years) 48,000 $ 37.01 7.3 |
Schedule of Estimated Fair Value of Stock Options on Date of Grant, Assumptions | We estimated the fair value of these stock options on the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2010 Stock Plan Fiscal 2015 Awards Average expected volatility 51.00 % Average risk-free interest rate 1.00 % Dividend yield 1.66 % Expected life of options (in years) 4.12 Weighted-average grant-date fair value $ 14.99 |
2007 Stock Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Awards and Restricted Stock Units Activity | The following table summarizes the RSA activity under the 2007 Stock Plan: Fiscal 2015 Unvested at beginning of fiscal year — Awarded 13,500 Vested (13,500 ) Forfeited — Unvested at end of period — |
Summary of Stock Option Activity and Related Information for Stock Options Granted | The following tables summarize the stock option activity and related information for the stock options granted under the 2007 Stock Plan for fiscal year 2017 , 2016 and 2015 : Summary of Option Activity Shares Wtd. Avg. Exercise Price Outstanding at May 3, 2014 172,359 $ 10.02 Awarded 50,500 37.01 Exercised (114,859 ) 8.55 Canceled — — Outstanding at May 2, 2015 108,000 24.21 Awarded — — Exercised (28,334 ) 10.99 Canceled — — Outstanding at April 30, 2016 79,666 28.91 Awarded — — Exercised (22,497 ) 21.52 Canceled — — Outstanding at April 29, 2017 57,169 $ 31.82 |
Summary of Stock Option Activity and Related Information for Stock Options Granted, Options Outstanding and Exercisable | Options Outstanding Shares Exercise Price Avg. Life (Years) 5,000 $ 10.55 3.3 8,333 $ 17.27 6.3 43,836 $ 37.01 7.3 57,169 $ 31.82 Options Exercisable Shares Exercise Price Avg. Life (Years) 5,000 $ 10.55 3.3 8,333 $ 17.27 6.3 27,002 $ 37.01 7.3 40,335 $ 29.65 |
Schedule of Estimated Fair Value of Stock Options on Date of Grant, Assumptions | We estimated the fair value of these stock options on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Fiscal 2015 Awards Average expected volatility 51.00 % Average risk-free interest rate 1.00 % Dividend yield 1.66 % Expected life of options (in years) 4.12 Weighted-average grant-date fair value $ 14.99 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 29, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were as follows: April 29, April 30, Deferred tax liabilities: Accelerated tax depreciation $ 2.0 $ 4.1 Foreign tax withheld 4.2 2.1 Deferred income 0.4 0.8 Deferred tax liabilities, gross 6.6 7.0 Deferred tax assets: Deferred compensation and stock award amortization 10.1 7.9 Inventory valuation differences 2.9 2.3 Property valuation differences 1.9 2.0 Accelerated book amortization 7.2 8.9 Environmental reserves 0.5 0.7 Bad debt reserves 0.1 0.1 Vacation accruals 1.0 1.1 Foreign investment tax credit 17.9 14.4 Net operating loss carryovers 4.7 4.4 Foreign tax credits — 0.9 Other accruals 2.6 3.0 Deferred tax assets, gross 48.9 45.7 Less valuation allowance 1.9 1.3 Deferred tax assets, net of valuation allowance 47.0 44.4 Net deferred tax assets $ 40.4 $ 37.4 Balance sheet classification: Current asset $ — $ 11.8 Non-current asset 40.4 27.7 Current liability — (2.1 ) $ 40.4 $ 37.4 |
Schedule of Components of Income before Income Taxes | Components of income before income taxes are as follows: Fiscal Year Ended April 29, April 30, May 2, Domestic source $ 21.6 $ 25.3 $ 39.9 Foreign source 94.3 85.6 80.9 Income before income tax $ 115.9 $ 110.9 $ 120.8 |
Schedule of Income Taxes | Income taxes consisted of the following: Fiscal Year Ended April 29, April 30, May 2, Current Federal $ 9.2 $ 2.8 $ 5.4 Foreign 17.0 14.7 13.8 State 0.7 0.6 0.9 Subtotal 26.9 18.1 20.1 Deferred Federal and state (1.2 ) 5.5 6.0 Foreign (2.7 ) 2.7 (6.3 ) Subtotal (3.9 ) 8.2 (0.3 ) Total income tax expense $ 23.0 $ 26.3 $ 19.8 |
Schedule of Reconciliation of Consolidated Provisions for Income Taxes from Continuing Operations | A reconciliation of the consolidated provisions for income taxes from continuing operations to amounts determined by applying the prevailing statutory federal income tax rate to pre-tax earnings is as follows: Fiscal Year Ended April 29, April 30, May 2, Income tax at statutory rate $ 40.5 35.0 % $ 38.9 35.0 % $ 42.2 35.0 % Effect of: State income taxes, net of federal benefit 0.9 0.8 % 0.4 0.4 % 0.8 0.6 % Foreign operations with lower statutory rates (14.5 ) (12.5 )% (11.9 ) (10.7 )% (11.5 ) (9.5 )% Foreign losses with no tax benefit — — % — — % 0.1 0.1 % Foreign investment tax credit (4.7 ) (4.1 )% (2.1 ) (1.9 )% (8.3 ) (6.9 )% Change in tax reserve 0.1 0.1 % 0.1 0.1 % 0.2 0.2 % Change in permanent reinvestment assertion — — % — — % 0.3 0.2 % Change in valuation allowance 0.3 0.3 % 0.1 0.1 % (3.6 ) (3.0 )% Other, net 0.4 0.3 % 0.8 0.8 % (0.4 ) (0.3 )% Income tax provision/(benefit) $ 23.0 19.9 % $ 26.3 23.8 % $ 19.8 16.4 % |
Schedule of Reconciliation of Unrecognized Tax Benefits | The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: Balance at April 30, 2016 $ 1.2 Increases for positions related to the prior years — Increases for positions related to the current year 0.1 Decreases for positions related to the prior years — Lapsing of statutes of limitations — Balance at April 29, 2017 $ 1.3 |
Income Per Share Attributable29
Income Per Share Attributable to Methode Shareholders (Tables) | 12 Months Ended |
Apr. 29, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of the Computation of Basic and Diluted Income Per Share | The following table sets forth the computation of basic and diluted income per share: Fiscal Year Ended April 29, April 30, May 2, Numerator: Net income attributable to Methode Electronics, Inc. $ 92.9 $ 84.6 $ 101.1 Denominator: Denominator for basic earnings per share-weighted average shares outstanding and vested/unissued restricted stock awards 37,283,096 38,333,484 38,686,715 Dilutive potential common shares-employee stock options, restricted stock awards and restricted stock units 202,605 138,128 580,151 Denominator for diluted earnings per share 37,485,701 38,471,612 39,266,866 Basic and diluted income per share: Basic income per share $ 2.49 $ 2.21 $ 2.61 Diluted income per share $ 2.48 $ 2.20 $ 2.57 |
Segment Information and Geogr30
Segment Information and Geographic Area Information (Tables) | 12 Months Ended |
Apr. 29, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The tables below present information about our reportable segments. The Interface segment's income from operations for fiscal 2015 includes an impairment of goodwill charge of $11.1 million . Fiscal Year Ended April 29, 2017 Automotive Interface Power Products Other Eliminations/Corporate Consolidated Net sales $ 641.0 $ 128.2 $ 56.5 $ 2.2 $ (11.4 ) $ 816.5 Transfers between segments (8.8 ) (0.8 ) (0.2 ) (1.9 ) 11.7 — Net sales to unaffiliated customers $ 632.2 $ 127.4 $ 56.3 $ 0.3 $ 0.3 $ 816.5 Income/(loss) from operations $ 148.3 $ (0.9 ) $ 11.5 $ (12.4 ) $ (35.7 ) $ 110.8 Gain on sale of business — Interest income, net (0.4 ) Other income, net (4.7 ) Income before income taxes $ 115.9 Depreciation and amortization $ 15.5 $ 4.2 $ 2.8 $ 1.0 $ 0.8 $ 24.3 Identifiable assets $ 462.3 $ 202.5 $ 46.2 $ 5.2 $ (12.2 ) $ 704.0 Fiscal Year ended April 30, 2016 Automotive Interface Power Products Other Eliminations/Corporate Consolidated Net sales $ 623.1 $ 142.6 $ 54.1 $ 0.6 $ (11.3 ) $ 809.1 Transfers between segments (8.8 ) (1.8 ) (0.6 ) (0.3 ) 11.5 — Net sales to unaffiliated customers $ 614.3 $ 140.8 $ 53.5 $ 0.3 $ 0.2 $ 809.1 Income/(loss) from operations $ 136.8 $ 2.7 $ 9.4 $ (8.8 ) $ (30.4 ) $ 109.7 Gain on sale of business — Interest expense, net (0.7 ) Other income, net (0.5 ) Income before income taxes $ 110.9 Depreciation and amortization $ 15.6 $ 4.3 $ 2.3 $ 0.6 $ 1.1 $ 23.9 Identifiable assets $ 418.4 $ 184.8 $ 46.4 $ 5.0 $ 1.3 $ 655.9 Fiscal Year ended May 2, 2015 Automotive Interface Power Products Other Eliminations/Corporate Consolidated Net sales $ 633.0 $ 163.8 $ 86.1 $ 5.5 $ (7.3 ) $ 881.1 Transfers between segments (4.6 ) (2.1 ) (0.4 ) (0.3 ) 7.4 — Net sales to unaffiliated customers $ 628.4 $ 161.7 $ 85.7 $ 5.2 $ 0.1 $ 881.1 Income (loss) from operations $ 124.9 $ 7.0 $ 23.2 $ (6.4 ) $ (36.5 ) $ 112.2 Gain on sale of business (7.7 ) Interest expense, net (0.7 ) Other expense (0.2 ) Income/(loss) before income taxes $ 120.8 Depreciation and amortization $ 16.6 $ 2.8 $ 2.4 $ 0.4 $ 1.2 $ 23.4 Identifiable assets $ 365.5 $ 186.4 $ 38.5 $ 3.7 $ 11.7 $ 605.8 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table sets forth certain geographic financial information for fiscal years ended April 29, 2017 , April 30, 2016 and May 2, 2015 . Geographic net sales and income are determined based our sales and income from our various operational locations. Fiscal Year Ended April 29, April 30, May 2, Net Sales: U.S. $ 506.9 $ 491.9 $ 564.6 China 127.7 124.8 112.6 Malta 155.5 167.1 153.5 Other 26.4 25.3 50.4 Total Net Sales $ 816.5 $ 809.1 $ 881.1 Property, Plant and Equipment, Net: U.S. $ 44.9 $ 44.0 $ 42.7 China 5.9 7.4 9.0 Malta 26.4 28.7 28.0 Mexico 4.3 3.9 5.8 Other 9.1 9.0 7.8 Total Property, Plant and Equipment, Net $ 90.6 $ 93.0 $ 93.3 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Apr. 29, 2017 | |
Leases [Abstract] | |
Summary of Aggregate Minimum Rental Commitments under all Non-cancelable Operating Leases | Our aggregate minimum rental commitments under all non-cancelable operating leases are summarized in the table below for the next succeeding five fiscal years: 2018 $ 4.0 2019 $ 3.0 2020 $ 2.0 2021 $ 1.2 2022 $ 1.2 |
Summary of Quarterly Results 32
Summary of Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Apr. 29, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results of Operations | The following is a summary of unaudited quarterly results of operations for the years ended April 29, 2017 and April 30, 2016: Fiscal 2017 July 30 October 29 January 28 April 29 Net sales $ 191.9 $ 209.3 $ 195.6 $ 219.7 Gross profit $ 54.1 $ 55.6 $ 53.4 $ 55.2 Net income attributable to Methode Electronics, Inc. $ 21.2 $ 24.9 $ 23.7 $ 23.1 Net income per basic common share $ 0.57 $ 0.66 $ 0.64 $ 0.62 Net income per diluted common share $ 0.57 $ 0.66 $ 0.63 $ 0.62 Fiscal 2016 Quarter Ended August 1 October 31 January 30 April 30 Net sales $ 203.3 $ 208.4 $ 184.6 $ 212.8 Gross profit $ 53.6 $ 50.9 $ 47.6 $ 60.8 Net income attributable to Methode Electronics, Inc. $ 23.5 $ 21.2 $ 17.2 $ 22.7 Net income per basic common share $ 0.60 $ 0.55 $ 0.45 $ 0.61 Net income per diluted common share $ 0.60 $ 0.54 $ 0.45 $ 0.61 Significant Items for Fiscal 2017 The table below contains items included in fiscal 2017: Fiscal 2017 July 30 October 29 January 28 April 29 Legal fees related to the Hetronic lawsuit $ 4.3 $ 2.3 $ 1.6 $ 2.8 Shut-down costs for two reporting units $ — $ — $ — $ 2.2 Acquisition expenses * $ — $ — $ — $ 1.5 Grant income from foreign government for maintaining certain employment levels $ — $ (1.5 ) $ (1.5 ) $ (1.5 ) * Related to a potential acquisition we elected not to undertake. |
Significant Accounting Polici33
Significant Accounting Policies - Narrative - Financial Reporting Periods (Details) | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Financial Reporting Periods [Line Items] | |||
Fiscal year duration | fifty-two weeks | fifty-two weeks | fifty-two weeks |
Minimum | |||
Financial Reporting Periods [Line Items] | |||
Fiscal year duration | fifty-two weeks | ||
Maximum | |||
Financial Reporting Periods [Line Items] | |||
Fiscal year duration | fifty-three weeks |
Significant Accounting Polici34
Significant Accounting Policies - Narrative - Property, Plant and Equipment (Details) | 12 Months Ended |
Apr. 29, 2017 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 5 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 15 years |
Significant Accounting Polici35
Significant Accounting Policies - Narrative - Foreign Currency Translation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Accounting Policies [Abstract] | |||
Foreign exchange gains | $ 0.4 | $ 0.5 | $ 0.2 |
Significant Accounting Polici36
Significant Accounting Policies - Narrative - Research and Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Accounting Policies [Abstract] | |||
Research and development costs | $ 27.8 | $ 27.8 | $ 24.5 |
Divestitures - Narrative - Fisc
Divestitures - Narrative - Fiscal 2015 Divestitures (Details) - Trace Laboratories $ in Millions | Feb. 03, 2015USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Percentage ownership prior to disposal | 100.00% |
Sale of business | $ 11.7 |
Net assets of business, book value | 4 |
Pre-tax gain on sale of net assets | $ 7.7 |
Intangible Assets and Goodwil38
Intangible Assets and Goodwill - Narrative - Goodwill Impairment Test (Details) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017USD ($) | Apr. 30, 2016USD ($)reporting_unit | May 02, 2015USD ($)reporting_unit | |
Goodwill [Line Items] | |||
Number of reporting units where fair value exceeded carrying value | reporting_unit | 2 | ||
Number of reporting units where Step 1 of goodwill impairment test was performed | reporting_unit | 2 | ||
Goodwill impairment charge | $ 0 | $ 0 | $ 11.1 |
Minimum | |||
Goodwill [Line Items] | |||
Percentage by which fair value exceeded carrying value | 135.00% | ||
Maximum | |||
Goodwill [Line Items] | |||
Percentage by which fair value exceeded carrying value | 163.00% | ||
Interface | |||
Goodwill [Line Items] | |||
Goodwill impairment charge | $ 0 | $ 0 | 11.1 |
TouchSensor | Interface | |||
Goodwill [Line Items] | |||
Goodwill impairment charge | $ 11.1 |
Intangible Assets and Goodwil39
Intangible Assets and Goodwill - Narrative - Indefinite-lived Intangibles Excluding Goodwill, Impairment Test (Details) | Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 |
Trademarks | Interface | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Percentage by which fair value exceeded carrying value | 28.00% | 17.00% | 64.00% |
Intangible Assets and Goodwil40
Intangible Assets and Goodwill - Schedule of Goodwill Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 1.7 | $ 1.7 | $ 13 |
Impairment | 0 | 0 | (11.1) |
Foreign currency translation | (0.1) | 0 | (0.2) |
Ending balance | 1.6 | 1.7 | 1.7 |
Interface | |||
Goodwill [Roll Forward] | |||
Beginning balance | 0.7 | 0.7 | 12 |
Impairment | 0 | 0 | (11.1) |
Foreign currency translation | (0.1) | 0 | (0.2) |
Ending balance | 0.6 | 0.7 | 0.7 |
Power Products | |||
Goodwill [Roll Forward] | |||
Beginning balance | 1 | 1 | 1 |
Impairment | 0 | 0 | 0 |
Foreign currency translation | 0 | 0 | 0 |
Ending balance | $ 1 | $ 1 | $ 1 |
Intangible Assets and Goodwil41
Intangible Assets and Goodwill - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 29, 2017 | Apr. 30, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 42.2 | $ 42.2 |
Accumulated Amortization | 35.6 | 33.3 |
Net | 6.6 | 8.9 |
Customer relationships and agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 16.3 | 16.3 |
Accumulated Amortization | 15.6 | 15.3 |
Net | $ 0.7 | $ 1 |
Wtd. Avg. Remaining Amortization Periods | 6 years 9 months 9 days | 7 years 9 months 15 days |
Trade names, patents and technology licenses | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 25.8 | $ 25.8 |
Accumulated Amortization | 19.9 | 17.9 |
Net | $ 5.9 | $ 7.9 |
Wtd. Avg. Remaining Amortization Periods | 1 year 5 months 9 days | 2 years 4 months 21 days |
Covenants not to compete | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 0.1 | $ 0.1 |
Accumulated Amortization | 0.1 | 0.1 |
Net | $ 0 | $ 0 |
Wtd. Avg. Remaining Amortization Periods | 5 months | 1 year 5 months |
Intangible Assets and Goodwil42
Intangible Assets and Goodwill - Schedule of Estimated Aggregate Amortization Expense (Details) $ in Millions | Apr. 29, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 2.2 |
2,019 | 2.1 |
2,020 | 0.2 |
2,021 | 0.1 |
2,022 | $ 0.1 |
Intangible Assets and Goodwil43
Intangible Assets and Goodwill - Narrative - Intangible Assets (Details) - USD ($) $ in Millions | May 02, 2015 | May 01, 2015 | Apr. 29, 2017 | Apr. 30, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Change in remaining useful lives of some of the patents | 4 years | 12 years | ||
Trade names not subject to amortization | $ 1.8 | $ 1.8 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2007shares | Apr. 29, 2017USD ($)$ / sharesshares | Apr. 30, 2016USD ($)$ / sharesshares | May 02, 2015USD ($)shares | Apr. 28, 2012shares | Apr. 30, 2011shares | Sep. 30, 2015USD ($) | May 01, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ | $ 100,000,000 | |||||||
Purchase of common stock (in shares) | 280,168 | 1,997,298 | ||||||
Common stock repurchased and retired, value | $ | $ 9,800,000 | $ 62,300,000 | ||||||
Shares repurchased (in shares) | 2,277,466 | |||||||
Purchase of common stock | $ | $ 71,900,000 | |||||||
Common stock - par value per share (in dollars per share) | $ / shares | $ 0.50 | $ 0.50 | ||||||
Dividends paid | $ | $ 13,700,000 | $ 13,500,000 | $ 13,800,000 | |||||
Compensation expense | $ | 12,400,000 | 7,400,000 | 4,300,000 | |||||
Share price (in dollars per share) | $ / shares | $ 43.59 | |||||||
Unrecognized equity-based compensation cost | $ | $ 26,700,000 | |||||||
Weighted average period for recognition of unrecognized equity-based compensation cost | 2 years 11 months 28 days | |||||||
2014 Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for grant (in shares) | 3,000,000 | |||||||
Contingent reduction in number of shares authorized for grant (in shares) | 1 | |||||||
Number of shares available for grant (in shares) | 1,187,697 | |||||||
Compensation expense | $ | $ 12,100,000 | $ 6,400,000 | $ 500,000 | |||||
2014 Incentive Plan | RSAs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awarded shares (in shares) | 99,000 | 1,185,000 | 13,500 | |||||
Award vesting period | 5 years | |||||||
Expected compensation expense | $ | $ 25,000,000 | |||||||
Compensation expense | $ | $ 6,600,000 | $ 3,600,000 | $ 500,000 | |||||
Vested (in shares) | 27,000 | 24,000 | 13,500 | |||||
2014 Incentive Plan | RSAs | Executives and non-executive members of management | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense | $ | $ 5,700,000 | $ 2,800,000 | ||||||
2014 Incentive Plan | RSAs | Independent directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense | $ | $ 900,000 | $ 800,000 | $ 1,000,000 | |||||
Number of shares issued (in shares) | 27,000 | 24,000 | 13,500 | |||||
2014 Incentive Plan | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awarded shares (in shares) | 32,000 | 576,000 | 0 | |||||
Award vesting period | 5 years | |||||||
Expected compensation expense | $ | $ 18,600,000 | |||||||
Compensation expense | $ | $ 5,500,000 | $ 2,800,000 | $ 0 | |||||
Vested (in shares) | 11,333 | 0 | 0 | |||||
Unearned compensation expense | $ | $ 10,200,000 | |||||||
2014 Incentive Plan | RSUs | Vesting 2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting percentage | 30.00% | |||||||
2014 Incentive Plan | RSUs | Vesting 2019 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting percentage | 30.00% | |||||||
2014 Incentive Plan | RSUs | Vesting 2020 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting percentage | 40.00% | |||||||
2014 Incentive Plan | RSUs | Chief Financial Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awarded shares (in shares) | 32,000 | |||||||
2014 Incentive Plan | RSUs | Executives and non-executive members of management | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awarded shares (in shares) | 576,000 | |||||||
2010 Stock Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for grant (in shares) | 2,000,000 | |||||||
Compensation expense | $ | $ 200,000 | $ 400,000 | $ 2,800,000 | |||||
2010 Stock Plan | RSAs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awarded shares (in shares) | 0 | 0 | 0 | 100,000 | 640,000 | |||
Compensation expense | $ | $ 0 | $ 0 | $ 1,500,000 | |||||
Annual vesting percentage | 33.30% | |||||||
Vested (in shares) | 33,334 | 33,333 | 633,333 | |||||
Historic multiple of EBITDA, used to calculate internal enterprise value for determining size of awards | 7.5 | 7.5 | ||||||
2010 Stock Plan | Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Compensation expense | $ | $ 100,000 | $ 300,000 | $ 1,200,000 | |||||
Awarded options to purchase number of shares (in shares) | 0 | 0 | 108,000 | |||||
Award term | 10 years | |||||||
Annual vesting percentage | 33.30% | |||||||
Intrinsic value of outstanding options | $ | $ 500,000 | |||||||
2010 Stock Plan | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awarded shares (in shares) | 0 | 0 | 0 | 320,000 | ||||
Compensation expense | $ | $ 100,000 | $ 100,000 | $ 100,000 | |||||
Award vesting percentage | 100.00% | |||||||
Annual vesting percentage | 20.00% | |||||||
Vested (in shares) | 0 | 0 | 60,000 | |||||
2010 Stock Plan | Bonus in Lieu of Dividends | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restriction period for awards | 5 years | |||||||
2010 Stock Plan | Tandem Cash Award | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense | $ | $ 5,600,000 | |||||||
Maximum percentage of RSA award that could be the value of Tandem Cash Award | 40.00% | |||||||
2007 Stock Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for grant (in shares) | 1,250,000 | |||||||
Compensation expense | $ | $ 100,000 | $ 600,000 | $ 1,000,000 | |||||
Total number of shares with respect to which awards may granted to any participant in any calendar year | 200,000 | |||||||
2007 Stock Plan | RSAs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awarded shares (in shares) | 13,500 | |||||||
Compensation expense | $ | $ 0 | 0 | $ 500,000 | |||||
Number of shares issued (in shares) | 27,000 | |||||||
Vested (in shares) | 13,500 | |||||||
Number of shares converted from RSAs to RSUs outstanding (in shares) | 0 | |||||||
2007 Stock Plan | RSAs | Independent directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares issued (in shares) | 13,500 | |||||||
2007 Stock Plan | Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense | $ | $ 100,000 | $ 600,000 | $ 500,000 | |||||
Awarded options to purchase number of shares (in shares) | 0 | 0 | 50,500 | |||||
Award term | 10 years | |||||||
Annual vesting percentage | 33.30% | |||||||
Intrinsic value of outstanding options | $ | $ 700,000 | |||||||
2007 Stock Plan | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares converted from RSAs to RSUs outstanding (in shares) | 201,812 | |||||||
Number of day after termination that awards will be issued and delivered | 30 days | |||||||
Converted RSUs delivered (in shares) | 23,188 | |||||||
2007 Stock Plan | Converted from RSAs to RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares converted from RSAs to RSUs outstanding (in shares) | 225,000 | |||||||
Threshold Performance | 2014 Incentive Plan | RSAs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of RSAs that may be earned (in shares) | 389,500 | |||||||
2020 EBITDA goal | $ | $ 198,900,000 | |||||||
2020 EBITDA Target Performance | 2014 Incentive Plan | RSAs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of RSAs that may be earned (in shares) | 779,000 | |||||||
2020 EBITDA goal | $ | $ 221,000,000 | |||||||
Unearned compensation expense | $ | $ 16,400,000 | |||||||
Maximum Performance | 2014 Incentive Plan | RSAs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of RSAs that may be earned (in shares) | 1,168,500 | |||||||
2020 EBITDA goal | $ | $ 243,100,000 | |||||||
Maximum Performance | 2014 Incentive Plan | RSAs | Chief Financial Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awarded shares (in shares) | 72,000 | |||||||
Maximum Performance | 2014 Incentive Plan | RSAs | Executives and non-executive members of management | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awarded shares (in shares) | 1,161,000 | |||||||
2020 EBITDA Below Threshold Performance | 2014 Incentive Plan | RSAs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of RSAs that may be earned (in shares) | 0 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Stock by Class (Details) - shares | Apr. 29, 2017 | Apr. 30, 2016 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Authorized (in shares) | 100,000,000 | 100,000,000 |
Issued and outstanding (in shares) | 38,133,925 | 38,181,985 |
In treasury (in shares) | 1,346,624 | 1,346,624 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Restricted Stock Awards and Restricted Stock Units Activity (Details) - shares | 12 Months Ended | ||||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | Apr. 28, 2012 | Apr. 30, 2011 | |
2014 Incentive Plan | RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested and unissued - beginning balance (in shares) | 1,161,000 | 0 | 0 | ||
Awarded (in shares) | 99,000 | 1,185,000 | 13,500 | ||
Vested (in shares) | (27,000) | (24,000) | (13,500) | ||
Forfeited and cancelled (in shares) | (64,500) | 0 | 0 | ||
Unvested and unissued - ending balance (in shares) | 1,168,500 | 1,161,000 | 0 | ||
2014 Incentive Plan | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested and unissued - beginning balance (in shares) | 576,000 | 0 | 0 | ||
Awarded (in shares) | 32,000 | 576,000 | 0 | ||
Vested (in shares) | (11,333) | 0 | 0 | ||
Forfeited and cancelled (in shares) | (28,667) | 0 | 0 | ||
Unvested and unissued - ending balance (in shares) | 568,000 | 576,000 | 0 | ||
2010 Stock Plan | RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested and unissued - beginning balance (in shares) | 33,334 | 66,667 | 700,000 | ||
Awarded (in shares) | 0 | 0 | 0 | 100,000 | 640,000 |
Vested (in shares) | (33,334) | (33,333) | (633,333) | ||
Forfeited and cancelled (in shares) | 0 | 0 | 0 | ||
Unvested and unissued - ending balance (in shares) | 0 | 33,334 | 66,667 | ||
2010 Stock Plan | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested and unissued - beginning balance (in shares) | 0 | 0 | 60,000 | ||
Awarded (in shares) | 0 | 0 | 0 | 320,000 | |
Vested (in shares) | 0 | 0 | (60,000) | ||
Forfeited and cancelled (in shares) | 0 | 0 | 0 | ||
Unvested and unissued - ending balance (in shares) | 0 | 0 | 0 | ||
2007 Stock Plan | RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested and unissued - beginning balance (in shares) | 0 | 0 | |||
Awarded (in shares) | 13,500 | ||||
Vested (in shares) | (13,500) | ||||
Forfeited and cancelled (in shares) | 0 | ||||
Unvested and unissued - ending balance (in shares) | 0 |
Shareholders' Equity - Schedu47
Shareholders' Equity - Schedule of Restricted Stock Awards and Restricted Stock Units by Grant Year and Vesting Period (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | May 03, 2014 |
2010 Stock Plan | RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares Unvested (in shares) | 0 | 33,334 | 66,667 | 700,000 |
2010 Stock Plan | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares Unvested (in shares) | 0 | 0 | 0 | 60,000 |
2014 Incentive Plan | RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares Unvested (in shares) | 1,168,500 | 1,161,000 | 0 | 0 |
2014 Incentive Plan | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares Unvested (in shares) | 568,000 | 576,000 | 0 | 0 |
Weighted Average Value (in dollars per share) | $ 33.45 | |||
Unearned compensation expense | $ 10.2 | |||
2014 Incentive Plan | RSUs | Target | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unearned compensation expense | $ 10.2 | |||
2020 EBITDA Target Performance | 2014 Incentive Plan | RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares Unvested (in shares) | 779,000 | |||
Weighted Average Value (in dollars per share) | $ 31.41 | |||
Unearned compensation expense | $ 16.4 | |||
2020 EBITDA Target Performance | 2014 Incentive Plan | RSAs | Target | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unearned compensation expense | $ 16.4 |
Shareholders' Equity - Summar48
Shareholders' Equity - Summary of Stock Option Activity and Related Information for Stock Options Granted (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
2010 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding - beginning balance (in shares) | 197,332 | 242,667 | 420,001 |
Awarded (in shares) | 0 | 0 | 108,000 |
Exercised (in shares) | (125,332) | (18,668) | (285,334) |
Cancelled (in shares) | 0 | (26,667) | 0 |
Outstanding - ending balance (in shares) | 72,000 | 197,332 | 242,667 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Wtd. Avg. Exercise Price, Outstanding - beginning balance (in dollars per share) | $ 24.55 | $ 24.50 | $ 11.75 |
Wtd. Avg. Exercise Price, Awarded (in dollars per share) | 0 | 0 | 37.01 |
Wtd. Avg. Exercise Price, Exercised (in dollars per share) | 17.40 | 12.96 | 10.47 |
Wtd. Avg. Exercise Price, Cancelled (in dollars per share) | 0 | 32.07 | 0 |
Wtd. Avg. Exercise Price, Outstanding - ending balance (in dollars per share) | $ 37.01 | $ 24.55 | $ 24.50 |
2007 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding - beginning balance (in shares) | 79,666 | 108,000 | 172,359 |
Awarded (in shares) | 0 | 0 | 50,500 |
Exercised (in shares) | (22,497) | (28,334) | (114,859) |
Cancelled (in shares) | 0 | 0 | 0 |
Outstanding - ending balance (in shares) | 57,169 | 79,666 | 108,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Wtd. Avg. Exercise Price, Outstanding - beginning balance (in dollars per share) | $ 28.91 | $ 24.21 | $ 10.02 |
Wtd. Avg. Exercise Price, Awarded (in dollars per share) | 0 | 0 | 37.01 |
Wtd. Avg. Exercise Price, Exercised (in dollars per share) | 21.52 | 10.99 | 8.55 |
Wtd. Avg. Exercise Price, Cancelled (in dollars per share) | 0 | 0 | 0 |
Wtd. Avg. Exercise Price, Outstanding - ending balance (in dollars per share) | $ 31.82 | $ 28.91 | $ 24.21 |
Shareholders' Equity - Summar49
Shareholders' Equity - Summary of Stock Option Activity and Related Information for Stock Options Granted, Options Outstanding and Exercisable (Details) - Stock Options | 12 Months Ended |
Apr. 29, 2017$ / sharesshares | |
2010 Stock Plan | $37.01 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding (in shares) | shares | 72,000 |
Options outstanding - exercise price (in dollars per share) | $ / shares | $ 37.01 |
Options outstanding - avg remaining life | 7 years 3 months 16 days |
Options exercisable (in shares) | shares | 48,000 |
Options exercisable - exercise price (in dollars per share) | $ / shares | $ 37.01 |
Options exercisable - avg. remaining life | 7 years 3 months 16 days |
2007 Stock Plan | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding (in shares) | shares | 57,169 |
Options outstanding - exercise price (in dollars per share) | $ / shares | $ 31.82 |
Options exercisable (in shares) | shares | 40,335 |
Options exercisable - exercise price (in dollars per share) | $ / shares | $ 29.65 |
2007 Stock Plan | $10.55 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding (in shares) | shares | 5,000 |
Options outstanding - exercise price (in dollars per share) | $ / shares | $ 10.55 |
Options outstanding - avg remaining life | 3 years 3 months 1 day |
Options exercisable (in shares) | shares | 5,000 |
Options exercisable - exercise price (in dollars per share) | $ / shares | $ 10.55 |
Options exercisable - avg. remaining life | 3 years 3 months 1 day |
2007 Stock Plan | $17.27 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding (in shares) | shares | 8,333 |
Options outstanding - exercise price (in dollars per share) | $ / shares | $ 17.27 |
Options outstanding - avg remaining life | 6 years 3 months 4 days |
Options exercisable (in shares) | shares | 8,333 |
Options exercisable - exercise price (in dollars per share) | $ / shares | $ 17.27 |
Options exercisable - avg. remaining life | 6 years 3 months 4 days |
2007 Stock Plan | $37.01 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding (in shares) | shares | 43,836 |
Options outstanding - exercise price (in dollars per share) | $ / shares | $ 37.01 |
Options outstanding - avg remaining life | 7 years 3 months 16 days |
Options exercisable (in shares) | shares | 27,002 |
Options exercisable - exercise price (in dollars per share) | $ / shares | $ 37.01 |
Options exercisable - avg. remaining life | 7 years 3 months 16 days |
Shareholders' Equity - Schedu50
Shareholders' Equity - Schedule of Estimated Fair Value of Stock Options on Date of Grant, Valuation Assumptions (Details) - Stock Options | 12 Months Ended |
May 02, 2015$ / shares | |
2010 Stock Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average expected volatility | 51.00% |
Average risk-free interest rate | 1.00% |
Dividend yield | 1.66% |
Expected life of options (in years) | 4 years 1 month 13 days |
Weighted-average grant-date fair value (in dollars per share) | $ 14.99 |
2007 Stock Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average expected volatility | 51.00% |
Average risk-free interest rate | 1.00% |
Dividend yield | 1.66% |
Expected life of options (in years) | 4 years 1 month 13 days |
Weighted-average grant-date fair value (in dollars per share) | $ 14.99 |
Shareholders' Equity - Allocate
Shareholders' Equity - Allocated Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | $ 12.4 | $ 7.4 | $ 4.3 |
2014 Incentive Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 12.1 | 6.4 | 0.5 |
2014 Incentive Plan | RSAs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 6.6 | 3.6 | 0.5 |
2014 Incentive Plan | RSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 5.5 | 2.8 | 0 |
2010 Stock Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 0.2 | 0.4 | 2.8 |
2010 Stock Plan | RSAs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 0 | 0 | 1.5 |
2010 Stock Plan | RSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 0.1 | 0.1 | 0.1 |
2010 Stock Plan | Stock Options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 0.1 | 0.3 | 1.2 |
2007 Stock Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 0.1 | 0.6 | 1 |
2007 Stock Plan | RSAs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | 0 | 0 | 0.5 |
2007 Stock Plan | Stock Options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Compensation expense | $ 0.1 | $ 0.6 | $ 0.5 |
Employee 401(k) Savings Plan -
Employee 401(k) Savings Plan - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Employer matching contribution, percent | 3.00% | ||
Employer 401(k) contribution | $ 1.3 | $ 1.3 | $ 1.3 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 29, 2017 | Apr. 30, 2016 |
Deferred tax liabilities: | ||
Accelerated tax depreciation | $ 2 | $ 4.1 |
Foreign tax withheld | 4.2 | 2.1 |
Deferred income | 0.4 | 0.8 |
Deferred tax liabilities | 6.6 | 7 |
Deferred tax assets: | ||
Deferred compensation and stock award amortization | 10.1 | 7.9 |
Inventory valuation differences | 2.9 | 2.3 |
Property valuation differences | 1.9 | 2 |
Accelerated book amortization | 7.2 | 8.9 |
Environmental reserves | 0.5 | 0.7 |
Bad debt reserves | 0.1 | 0.1 |
Vacation accruals | 1 | 1.1 |
Foreign investment tax credit | 17.9 | 14.4 |
Net operating loss carryovers | 4.7 | 4.4 |
Foreign tax credits | 0 | 0.9 |
Other accruals | 2.6 | 3 |
Deferred tax assets, gross | 48.9 | 45.7 |
Less valuation allowance | 1.9 | 1.3 |
Deferred tax assets, net of valuation allowance | 47 | 44.4 |
Net deferred tax assets | 40.4 | 37.4 |
Balance sheet classification: | ||
Current asset | 0 | 11.8 |
Non-current asset | 40.4 | 27.7 |
Current liability | $ 0 | $ (2.1) |
Income Taxes - Tax Credit Carry
Income Taxes - Tax Credit Carryforward Narrative (Details) - USD ($) $ in Millions | Apr. 29, 2017 | Apr. 30, 2016 |
Tax Credit Carryforward [Line Items] | ||
Foreign tax credit carryforward | $ 0 | $ 0.9 |
Federal | ||
Tax Credit Carryforward [Line Items] | ||
Net operating loss carryforwards | 2.1 | |
State | ||
Tax Credit Carryforward [Line Items] | ||
Net operating loss carryforwards | 79.7 | |
Federal income tax benefit | 4 | |
Domestic Tax Authority | ||
Tax Credit Carryforward [Line Items] | ||
Federal income tax benefit | $ 0.7 | |
Foreign tax authority | Investment Tax Credit Carryforward | Malta | ||
Tax Credit Carryforward [Line Items] | ||
Percentage of qualified expenditures subject to investment tax credit | 30.00% | |
Total unused credits | $ 17.9 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Components of Income/(Loss) Before Income Taxes [Abstract] | |||
Domestic source | $ 21.6 | $ 25.3 | $ 39.9 |
Foreign source | 94.3 | 85.6 | 80.9 |
Income/(loss) before income taxes | $ 115.9 | $ 110.9 | $ 120.8 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Current | |||
Federal | $ 9.2 | $ 2.8 | $ 5.4 |
Foreign | 17 | 14.7 | 13.8 |
State | 0.7 | 0.6 | 0.9 |
Subtotal | 26.9 | 18.1 | 20.1 |
Deferred | |||
Federal and state | (1.2) | 5.5 | 6 |
Foreign | (2.7) | 2.7 | (6.3) |
Subtotal | (3.9) | 8.2 | (0.3) |
Total income tax expense | $ 23 | $ 26.3 | $ 19.8 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Consolidated Provisions for Income Taxes from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Income tax at statutory rate | $ 40.5 | $ 38.9 | $ 42.2 |
State income taxes, net of federal benefit | 0.9 | 0.4 | 0.8 |
Foreign operations with lower statutory rates | (14.5) | (11.9) | (11.5) |
Foreign losses with no tax benefit | 0 | 0 | 0.1 |
Foreign investment tax credit | (4.7) | (2.1) | (8.3) |
Change in tax reserve | 0.1 | 0.1 | 0.2 |
Change in permanent reinvestment assertion | 0 | 0 | 0.3 |
Change in valuation allowance | 0.3 | 0.1 | (3.6) |
Other, net | 0.4 | 0.8 | (0.4) |
Total income tax expense | $ 23 | $ 26.3 | $ 19.8 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Income tax at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit (as a percent) | 0.80% | 0.40% | 0.60% |
Foreign operations with lower statutory rates (as a percent) | (12.50%) | (10.70%) | (9.50%) |
Foreign losses with no tax benefit (as a percent) | 0.00% | 0.00% | 0.10% |
Foreign investment tax credit (as a percent) | (4.10%) | (1.90%) | (6.90%) |
Change in tax contingency reserve (as a percent) | 0.10% | 0.10% | 0.20% |
Change in permanent reinvestment assertion (as a percent) | 0.00% | 0.00% | 0.20% |
Change in valuation allowance (as a percent) | 0.30% | 0.10% | (3.00%) |
Other, net (as a percent) | 0.30% | 0.80% | (0.30%) |
Income tax provision/(benefit) (as a percent) | 19.90% | 23.80% | 16.40% |
Income Taxes - Schedule of Re58
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) $ in Millions | 12 Months Ended |
Apr. 29, 2017USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning balance | $ 1.2 |
Increases for positions related to the prior years | 0 |
Increases for positions related to the current year | 0.1 |
Decreases for positions related to the prior years | 0 |
Lapsing of statutes of limitations | 0 |
Ending balance | $ 1.3 |
Income Taxes - Income Tax Narra
Income Taxes - Income Tax Narrative (Details) - USD ($) | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Unrecorded tax benefit | $ 2,700,000 | ||
Valuation allowance | 1,900,000 | $ 1,300,000 | |
Income taxes paid | 19,000,000 | 10,000,000 | $ 9,000,000 |
Provisions made for income taxes on undistributed net income of foreign operations | 0 | ||
Undistributed net income | 407,900,000 | ||
Estimated tax if earnings distributed | 142,800,000 | ||
Gross unrecognized tax benefits | 1,300,000 | 1,200,000 | |
Interest on income taxes accrued | 100,000 | ||
Income tax penalties accrued | 0 | ||
Federal And State Operating Loss Carryforwards | |||
Valuation allowance | $ 1,900,000 | ||
Foreign tax authority | Malta | Investment Tax Credit Carryforward | |||
Total unused credits | 17,900,000 | ||
Tax Credit Carryforward, Period, Indefinite | Foreign tax authority | Malta | Investment Tax Credit Carryforward | |||
Total unused credits | 16,000,000 | ||
Tax Credit Carryforward, Period, 2020 Expiration | Foreign tax authority | Malta | Investment Tax Credit Carryforward | |||
Total unused credits | $ 1,900,000 |
Income Per Share Attributable60
Income Per Share Attributable to Methode Shareholders - Schedule of the Computation of Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Methode Electronics, Inc. | $ 23.1 | $ 23.7 | $ 24.9 | $ 21.2 | $ 22.7 | $ 17.2 | $ 21.2 | $ 23.5 | $ 92.9 | $ 84.6 | $ 101.1 |
Denominator for basic earnings per share-weighted average shares outstanding and vested/unissued restricted stock awards (in shares) | 37,283,096 | 38,333,484 | 38,686,715 | ||||||||
Dilutive potential common shares-employee, restricted stock awards and restricted stock units (in shares) | 202,605 | 138,128 | 580,151 | ||||||||
Denominator for diluted earnings per share (in shares) | 37,485,701 | 38,471,612 | 39,266,866 | ||||||||
Basic income per share (in dollars per share) | $ 2.49 | $ 2.21 | $ 2.61 | ||||||||
Diluted income per share (in dollars per share) | $ 2.48 | $ 2.20 | $ 2.57 |
Income Per Share Attributable61
Income Per Share Attributable to Methode Shareholders - Narrative (Details) - shares | 12 Months Ended | ||
Apr. 30, 2016 | May 02, 2015 | Apr. 29, 2017 | |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 138,500 | 158,500 | |
RSAs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Performance-based Shares Excluded from Diluted Earnings per Share | 774,000 | 779,000 |
Environmnetal Matters - Narrati
Environmnetal Matters - Narrative (Details) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017USD ($)site | Apr. 30, 2016USD ($) | May 02, 2015USD ($) | |
Site Contingency [Line Items] | |||
Number of plant sites subject to environmental investigation and/or remediation | site | 2 | ||
Accruals for environmental matters | $ 1.3 | $ 1.7 | |
Spent on remediation clean-ups and related studies | 1.2 | 1 | $ 0.5 |
Other accrued expenses | |||
Site Contingency [Line Items] | |||
Accruals for environmental matters | $ 0.3 | $ 0.3 |
Material Customers - Narrative
Material Customers - Narrative (Details) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017USD ($)customer | Apr. 30, 2016USD ($)customer | May 02, 2015customer | |
Minimum | |||
Revenue, Major Customer [Line Items] | |||
Accounts receivable - collection terms | 30 days | ||
Maximum | |||
Revenue, Major Customer [Line Items] | |||
Accounts receivable - collection terms | 60 days | ||
Automotive | |||
Revenue, Major Customer [Line Items] | |||
Number of significant customers | customer | 2 | 2 | 2 |
Accounts receivable | $ 90.6 | $ 90 | |
Automotive | Maltese subsidiary | |||
Revenue, Major Customer [Line Items] | |||
Accounts receivable | $ 55.3 | $ 51.4 | |
Automotive | Customer 1 | |||
Revenue, Major Customer [Line Items] | |||
Percentage of consolidated net sales | 49.60% | 49.50% | 44.80% |
Automotive | Customer 2 | |||
Revenue, Major Customer [Line Items] | |||
Percentage of consolidated net sales | 9.30% | 11.50% | 12.80% |
Line of Credit - Narrative (Det
Line of Credit - Narrative (Details) - USD ($) | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 150,000,000 | ||
Optional increase in borrowing capacity, up to | 100,000,000 | ||
Proceeds from borrowings | 0 | $ 71,000,000 | $ 0 |
Repayments in the period | 31,100,000 | ||
Amount outstanding | 27,000,000 | ||
Available borrowing capacity | $ 123,000,000 | ||
Line of credit | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Variable rate basis | LIBOR | ||
Interest expense | $ 1,100,000 |
Segment Information and Geogr65
Segment Information and Geographic Area Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017USD ($)segment | Apr. 30, 2016USD ($) | May 02, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 4 | ||
Goodwill impairment charge | $ 0 | $ 0 | $ 11.1 |
Interface | |||
Segment Reporting Information [Line Items] | |||
Goodwill impairment charge | $ 0 | $ 0 | $ 11.1 |
Segment Information and Geogr66
Segment Information and Geographic Area Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 816.5 | $ 809.1 | $ 881.1 | ||||||||
Net sales to unaffiliated customers | $ 219.7 | $ 195.6 | $ 209.3 | $ 191.9 | $ 212.8 | $ 184.6 | $ 208.4 | $ 203.3 | 816.5 | 809.1 | 881.1 |
Income/(loss) from operations | 110.8 | 109.7 | 112.2 | ||||||||
Gain from sale of business | 0 | 0 | (7.7) | ||||||||
Interest income, net | (0.4) | (0.7) | (0.7) | ||||||||
Other (income) expense, net | 4.7 | 0.5 | 0.2 | ||||||||
Income/(loss) before income taxes | 115.9 | 110.9 | 120.8 | ||||||||
Depreciation and amortization | 24.3 | 23.9 | 23.4 | ||||||||
Identifiable assets | 704 | 655.9 | 704 | 655.9 | 605.8 | ||||||
Transfers between segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Automotive | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 15.5 | 16.6 | |||||||||
Identifiable assets | 462.3 | 462.3 | 365.5 | ||||||||
Automotive | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 641 | 623.1 | 633 | ||||||||
Net sales to unaffiliated customers | 632.2 | 614.3 | 628.4 | ||||||||
Income/(loss) from operations | 148.3 | 136.8 | 124.9 | ||||||||
Depreciation and amortization | 15.6 | ||||||||||
Identifiable assets | 418.4 | 418.4 | |||||||||
Automotive | Transfers between segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (8.8) | (8.8) | (4.6) | ||||||||
Interface | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 4.2 | 2.8 | |||||||||
Identifiable assets | 202.5 | 202.5 | 186.4 | ||||||||
Interface | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 128.2 | 142.6 | 163.8 | ||||||||
Net sales to unaffiliated customers | 127.4 | 140.8 | 161.7 | ||||||||
Income/(loss) from operations | (0.9) | 2.7 | 7 | ||||||||
Depreciation and amortization | 4.3 | ||||||||||
Identifiable assets | 184.8 | 184.8 | |||||||||
Interface | Transfers between segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (0.8) | (1.8) | (2.1) | ||||||||
Power Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 2.8 | 2.4 | |||||||||
Identifiable assets | 46.2 | 46.2 | 38.5 | ||||||||
Power Products | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 56.5 | 54.1 | 86.1 | ||||||||
Net sales to unaffiliated customers | 56.3 | 53.5 | 85.7 | ||||||||
Income/(loss) from operations | 11.5 | 9.4 | 23.2 | ||||||||
Depreciation and amortization | 2.3 | ||||||||||
Identifiable assets | 46.4 | 46.4 | |||||||||
Power Products | Transfers between segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (0.2) | (0.6) | (0.4) | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 1 | 0.4 | |||||||||
Identifiable assets | 5.2 | 5.2 | 3.7 | ||||||||
Other | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2.2 | 0.6 | 5.5 | ||||||||
Net sales to unaffiliated customers | 0.3 | 0.3 | 5.2 | ||||||||
Income/(loss) from operations | (12.4) | (8.8) | (6.4) | ||||||||
Depreciation and amortization | 0.6 | ||||||||||
Identifiable assets | 5 | 5 | |||||||||
Other | Transfers between segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (1.9) | (0.3) | (0.3) | ||||||||
Eliminations/Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (11.4) | (11.3) | (7.3) | ||||||||
Net sales to unaffiliated customers | 0.3 | 0.2 | 0.1 | ||||||||
Income/(loss) from operations | (35.7) | (30.4) | (36.5) | ||||||||
Depreciation and amortization | 0.8 | 1.1 | 1.2 | ||||||||
Identifiable assets | $ (12.2) | $ 1.3 | (12.2) | 1.3 | 11.7 | ||||||
Eliminations/Corporate | Transfers between segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 11.7 | $ 11.5 | $ 7.4 |
Segment Information and Geogr67
Segment Information and Geographic Area Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 219.7 | $ 195.6 | $ 209.3 | $ 191.9 | $ 212.8 | $ 184.6 | $ 208.4 | $ 203.3 | $ 816.5 | $ 809.1 | $ 881.1 |
Property, plant and equipment | 90.6 | 93 | 90.6 | 93 | 93.3 | ||||||
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 506.9 | 491.9 | 564.6 | ||||||||
Property, plant and equipment | 44.9 | 44 | 44.9 | 44 | 42.7 | ||||||
China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 127.7 | 124.8 | 112.6 | ||||||||
Property, plant and equipment | 5.9 | 7.4 | 5.9 | 7.4 | 9 | ||||||
Malta | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 155.5 | 167.1 | 153.5 | ||||||||
Property, plant and equipment | 26.4 | 28.7 | 26.4 | 28.7 | 28 | ||||||
Mexico | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, plant and equipment | 4.3 | 3.9 | 4.3 | 3.9 | 5.8 | ||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 26.4 | 25.3 | 50.4 | ||||||||
Property, plant and equipment | $ 9.1 | $ 9 | $ 9.1 | $ 9 | $ 7.8 |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Leases [Abstract] | |||
Rental expense under non-cancelable operating leases | $ 4.9 | $ 5 | $ 5.5 |
Lease Commitments - Summary of
Lease Commitments - Summary of Aggregate Minimum Rental Commitments under all Non-cancelable Operating Leases (Details) $ in Millions | Apr. 29, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 4 |
2,019 | 3 |
2,020 | 2 |
2,021 | 1.2 |
2,022 | $ 1.2 |
Pre-production Costs Related 70
Pre-production Costs Related to Long-Term Supply Arrangements - Narrative (Details) - USD ($) $ in Millions | Apr. 29, 2017 | Apr. 30, 2016 |
Preproduction Costs Related to Long-term Supply Arrangements [Abstract] | ||
Pre-production tooling costs | $ 15.5 | $ 9.5 |
Company owned pre-production tooling capitalized within property, plant and equipment | $ 7.1 | $ 8 |
Summary of Quarterly Results 71
Summary of Quarterly Results of Operations (Unaudited) - Summary of Unaudited Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Business Exit Costs | $ 2.2 | $ 0 | $ 0 | $ 0 | |||||||
Business Combination, Acquisition Related Costs | 1.5 | 0 | 0 | 0 | |||||||
Revenue from Grants | (1.5) | (1.5) | (1.5) | 0 | |||||||
Net sales | 219.7 | 195.6 | 209.3 | 191.9 | $ 212.8 | $ 184.6 | $ 208.4 | $ 203.3 | $ 816.5 | $ 809.1 | $ 881.1 |
Gross profit | 55.2 | 53.4 | 55.6 | 54.1 | 60.8 | 47.6 | 50.9 | 53.6 | 218.3 | 212.9 | 218.8 |
Net income attributable to Methode Electronics, Inc. | $ 23.1 | $ 23.7 | $ 24.9 | $ 21.2 | $ 22.7 | $ 17.2 | $ 21.2 | $ 23.5 | $ 92.9 | $ 84.6 | $ 101.1 |
Net income per diluted common share (in dollars per share) | $ 0.62 | $ 0.63 | $ 0.66 | $ 0.57 | $ 0.61 | $ 0.45 | $ 0.54 | $ 0.60 | |||
Net income per basic common share (in dollars per share) | $ 0.62 | $ 0.64 | $ 0.66 | $ 0.57 | $ 0.61 | $ 0.45 | $ 0.55 | $ 0.60 | |||
Hetronic Lawsuit | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Legal Fees | $ 2.8 | $ 1.6 | $ 2.3 | $ 4.3 | $ 3.3 | $ 2.7 | $ 2.7 | $ 1.2 |
Summary of Quarterly Results 72
Summary of Quarterly Results of Operations (Unaudited) - Narrative - Significant Items for Fiscal 2016 (Details) - USD ($) $ in Millions | 3 Months Ended | |||||||
Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | |
Hetronic Lawsuit | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Legal Fees | $ 2.8 | $ 1.6 | $ 2.3 | $ 4.3 | $ 3.3 | $ 2.7 | $ 2.7 | $ 1.2 |
Summary of Quarterly Results 73
Summary of Quarterly Results of Operations (Unaudited) - Narrative - Significant Items for Fiscal 2015 (Details) - USD ($) $ in Millions | Feb. 03, 2015 | Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 |
Segment Reporting Information [Line Items] | ||||
Goodwill impairment charge | $ 0 | $ 0 | $ 11.1 | |
Trace Laboratories | ||||
Segment Reporting Information [Line Items] | ||||
Pre-tax gain on sale | $ 7.7 | |||
Interface | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment charge | $ 0 | $ 0 | 11.1 | |
TouchSensor | Interface | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment charge | $ 11.1 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | Jun. 19, 2017USD ($) |
Subsequent Event [Line Items] | |
Percentage voting interests acquired | 100.00% |
Cash consideration | $ 21.4 |
Assumed debt | $ 22.5 |
Schedule II - Valuation and Q75
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2017 | Apr. 30, 2016 | May 02, 2015 | |
Allowance for uncollectible accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 0.5 | $ 0.5 | $ 0.7 |
Charged to Costs and Expenses | 0.1 | 0.1 | 0.1 |
Charged to Other Accounts— Describe | 0 | 0 | 0 |
Deductions— Describe | 0 | 0.1 | 0.3 |
Balance at End of Period | 0.6 | 0.5 | 0.5 |
Deferred tax valuation allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 1.3 | 2 | 14 |
Charged to Costs and Expenses | |||
Charged to Other Accounts— Describe | |||
Deductions— Describe | (0.6) | 0.7 | 12 |
Balance at End of Period | $ 1.9 | $ 1.3 | $ 2 |