Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Apr. 29, 2023 | Jun. 15, 2023 | Oct. 28, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | METHODE ELECTRONICS, INC. | ||
Entity Central Index Key | 0000065270 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 29, 2023 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --04-29 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Trading Symbol | MEI | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 37,339,352 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-33731 | ||
Entity Tax Identification Number | 36-2090085 | ||
Entity Address, Address Line One | 8750 West Bryn Mawr Avenue, | ||
Entity Address, Address Line Two | Suite 1000 | ||
Entity Address, City or Town | Chicago, | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60631-3518 | ||
City Area Code | 708 | ||
Local Phone Number | 867-6777 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, $0.50 Par Value | ||
Security Exchange Name | NYSE | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement for the 2023 annual shareholders' meeting to be held on September 13, 2023 are incorporated by reference into Part III of this Form 10-K. | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Chicago, Illinois |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 157 | $ 172 |
Accounts receivable, net | 314.3 | 273.3 |
Inventories | 159.7 | 158.5 |
Income tax receivable | 12.9 | 8.3 |
Prepaid expenses and other current assets | 20.5 | 16.9 |
Total current assets | 664.4 | 629 |
Long-term assets: | ||
Property, plant and equipment, net | 220.3 | 197 |
Goodwill | 301.9 | 233 |
Other intangible assets, net | 256.7 | 207.7 |
Operating lease right-of-use assets, net | 28.4 | 20 |
Deferred tax assets | 33.6 | 36.8 |
Pre-production costs | 36.1 | 27.2 |
Other long-term assets | 37.7 | 38.4 |
Total long-term assets | 914.7 | 760.1 |
Total assets | 1,579.1 | 1,389.1 |
Current liabilities: | ||
Accounts payable | 138.7 | 108.5 |
Accrued employee liabilities | 36.7 | 30 |
Other accrued liabilities | 34.5 | 24.5 |
Short-term operating lease liabilities | 6.8 | 6 |
Short-term debt | 3.2 | 13 |
Income tax payable | 8.1 | 6.6 |
Total current liabilities | 228 | 188.6 |
Long-term liabilities: | ||
Long-term debt | 303.6 | 197.5 |
Long-term operating lease liabilities | 21.8 | 14.8 |
Long-term income tax payable | 16.7 | 22.1 |
Other long-term liabilities | 14.3 | 14 |
Deferred tax liabilities | 41.8 | 38.3 |
Total long-term liabilities | 398.2 | 286.7 |
Total liabilities | 626.2 | 475.3 |
Redeemable noncontrolling interest | 11.1 | |
Shareholders' equity: | ||
Common stock, $0.50 par value, 100,000,000 shares authorized, 37,167,375 shares and 38,276,968 shares issued as of April 29, 2023 and April 30, 2022, respectively | 18.6 | 19.2 |
Additional paid-in capital | 181 | 169 |
Accumulated other comprehensive loss | (19) | (26.8) |
Treasury stock, 1,346,624 shares as of April 29, 2023 and April 30, 2022 | (11.5) | (11.5) |
Retained earnings | 772.7 | 763.9 |
Total shareholders' equity | 941.8 | 913.8 |
Total liabilities, redeemable noncontrolling interest and shareholders' equity | $ 1,579.1 | $ 1,389.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 29, 2023 | Apr. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 37,167,375 | 38,276,968 |
Treasury stock (in shares) | 1,346,624 | 1,346,624 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 1,179.6 | $ 1,163.6 | $ 1,088 |
Cost of products sold | 915.5 | 898.7 | 813.9 |
Gross profit | 264.1 | 264.9 | 274.1 |
Selling and administrative expenses | 154.9 | 134.1 | 126.9 |
Amortization of intangibles | 18.8 | 19.1 | 19.3 |
Income from operations | 90.4 | 111.7 | 127.9 |
Interest expense, net | 2.7 | 3.5 | 5.2 |
Other income, net | (2.4) | (10.3) | (12.2) |
Pre-tax income | 90.1 | 118.5 | 134.9 |
Income tax expense | 13 | 16.3 | 12.6 |
Net income | 77.1 | 102.2 | 122.3 |
Net income attributable to Methode | $ 77.1 | $ 102.2 | $ 122.3 |
Basic and diluted income per share attributable to Methode: | |||
Basic | $ 2.14 | $ 2.74 | $ 3.22 |
Diluted | 2.10 | 2.70 | 3.19 |
Cash dividends per share | $ 0.56 | $ 0.56 | $ 0.44 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 77.1 | $ 102.2 | $ 122.3 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 10.7 | (42) | 37.4 |
Derivative financial instruments | (2.9) | 9.1 | (4.4) |
Other comprehensive income (loss): | 7.8 | (32.9) | 33 |
Comprehensive income (loss) | 84.9 | 69.3 | 155.3 |
Total comprehensive income attributable to Methode | $ 84.9 | $ 69.3 | $ 155.3 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | 12 Months Ended | 25 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | Apr. 29, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 913.8 | $ 918 | $ 783.4 | |
Issuance of restricted stock, net of tax withholding | (0.5) | (0.3) | (3.9) | |
Stock-based compensation expense | 10.5 | 11 | 6.8 | |
Exercise of stock options | 1.5 | 0.5 | 0.8 | |
Purchases of common stock | $ (48.1) | $ (63.7) | (7.5) | $ (119.3) |
Purchases of common stock (in shares) | (1,197,236) | (1,425,190) | (2,790,375) | |
Other comprehensive income (loss) | $ 7.8 | $ (32.9) | 33 | |
Net income | 77.1 | 102.2 | 122.3 | |
Dividends on common stock | (20.3) | (21) | (16.9) | |
Ending balance | 941.8 | 913.8 | 918 | $ 941.8 |
Redeemable Noncontrolling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Acquired redeemable noncontrolling interest | 11.3 | |||
Dividend declared to noncontrolling interest | (0.2) | |||
Ending balance | 11.1 | 11.1 | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 19.2 | $ 19.8 | $ 19.2 | |
Beginning balance (in shares) | 38,276,968 | 39,644,913 | 38,438,111 | |
Issuance of restricted stock, net of tax withholding | $ 0.1 | $ 0.7 | ||
Issuance of restricted stock, net of tax withholding (in shares) | 47,643 | 44,245 | 1,350,251 | |
Exercise of Stock Options (in shares) | 40,000 | 13,000 | 24,500 | |
Purchases of common stock | $ (0.6) | $ (0.7) | $ (0.1) | |
Purchases of common stock (in shares) | (1,197,236) | 1,425,190 | (167,949) | |
Ending balance | $ 18.6 | $ 19.2 | $ 19.8 | $ 18.6 |
Ending balance (in shares) | 37,167,375 | 38,276,968 | 39,644,913 | 37,167,375 |
Additional Paid-in Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 169 | $ 157.6 | $ 150.7 | |
Issuance of restricted stock, net of tax withholding | (0.1) | (0.7) | ||
Stock-based compensation expense | 10.5 | 11 | 6.8 | |
Exercise of stock options | 1.5 | 0.5 | 0.8 | |
Ending balance | 181 | 169 | 157.6 | $ 181 |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (26.8) | 6.1 | (26.9) | |
Other comprehensive income (loss) | 7.8 | (32.9) | 33 | |
Ending balance | (19) | (26.8) | 6.1 | (19) |
Treasury Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (11.5) | (11.5) | (11.5) | |
Ending balance | (11.5) | (11.5) | (11.5) | (11.5) |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 763.9 | 746 | 651.9 | |
Issuance of restricted stock, net of tax withholding | (0.5) | (0.3) | (3.9) | |
Purchases of common stock | (47.5) | (63) | (7.4) | |
Net income | 77.1 | 102.2 | 122.3 | |
Dividends on common stock | (20.3) | (21) | (16.9) | |
Ending balance | $ 772.7 | $ 763.9 | $ 746 | $ 772.7 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Operating activities: | |||
Net income | $ 77.1 | $ 102.2 | $ 122.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 49.5 | 52.6 | 51.5 |
Stock-based compensation expense | 11.5 | 11.8 | 6.8 |
Change in cash surrender value of life insurance | 0.3 | 0.1 | (2) |
Amortization of debt issuance costs | 0.7 | 0.7 | 0.7 |
Loss (gain) on sale of property, plant and equipment | 0.6 | (0.3) | 1.3 |
Impairment of long-lived assets | 0.7 | 3.1 | 0.6 |
Change in deferred income taxes | (4.6) | (2.1) | (9.6) |
Other | 0.5 | 0.5 | 1.4 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (21) | (2) | (81.9) |
Inventories | 8.9 | (39.3) | 11.3 |
Prepaid expenses and other assets | (25.4) | 1.5 | 17.9 |
Accounts payable | 19.8 | (8.7) | 44 |
Other liabilities | 14.2 | (21.3) | 15.5 |
Net cash provided by operating activities | 132.8 | 98.8 | 179.8 |
Investing activities: | |||
Purchases of property, plant and equipment | (42) | (38) | (24.9) |
Acquisition of businesses, net of cash acquired | (114.6) | ||
Proceeds from disposition of property, plant and equipment | 3.5 | 0.6 | 0.1 |
Net cash used in investing activities | (153.1) | (37.4) | (24.8) |
Financing activities: | |||
Taxes paid related to net share settlement of equity awards | (0.5) | (0.3) | (3.9) |
Repayments of finance leases | (0.4) | (0.7) | (0.5) |
Debt issuance costs | (3.2) | ||
Proceeds from exercise of stock options | 1.5 | 0.5 | 0.8 |
Purchases of common stock | (48.1) | (64.5) | (6.7) |
Cash dividends | (19.8) | (20.4) | (17.4) |
Proceeds from borrowings | 344.7 | 1.5 | |
Repayments of borrowings | (271) | (29.2) | (116.7) |
Net cash provided by (used in) financing activities | 3.2 | (114.6) | (142.9) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 2.1 | (8) | 3.8 |
(Decrease) increase in cash and cash equivalents | (15) | (61.2) | 15.9 |
Cash and cash equivalents at beginning of the year | 172 | 233.2 | 217.3 |
Cash and cash equivalents at end of the year | 157 | 172 | 233.2 |
Cash paid during the period for: | |||
Interest | 5.6 | 3.6 | 5.3 |
Income taxes, net of refunds | $ 25.6 | $ 32.3 | $ 16 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Note 1. Description of Business and Summary of Significant Accounting Policies Methode Electronics, Inc. (the “Company” or “Methode”) is a leading global supplier of custom engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. The Company designs, engineers and produces mechatronic products for Original Equipment Manufacturers (“OEMs”) utilizing its broad range of technologies for user interface, light-emitting diode (“LED”) lighting system, power distribution and sensor applications. The Company’s solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing infrastructure, construction equipment, consumer appliance and medical devices. Financial reporting periods. The Company maintains its financial records on the basis of a 52 or 53-week fiscal year ending on the Saturday closest to April 30. Fiscal 2023 ended on April 29, 2023, fiscal 2022 ended on April 30, 2022 and fiscal 2021 ended on May 1, 2021, and each represented 52 weeks of results. Basis of presentation. The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts and operations of the Company and its wholly and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Impact of global supply chain disruptions, geopolitical conditions and the COVID-19 pandemic. Fiscal 2023 was marked by global economic uncertainty, supply chain interruptions, which have been impacted by inflationary cost pressures, ongoing recovery from the COVID-19 pandemic, and geopolitical instability due to the military conflict between Russia and Ukraine. The Company experienced increased inflationary cost pressures in fiscal 2023 resulting from global supply chain disruptions impacting the availability and price of materials (primarily semiconductors) and logistics costs. Geopolitical instability exacerbated inflationary cost pressures, which the Company expects to continue for the foreseeable future. The Company has not experienced significant direct impacts from the Russia-Ukraine conflict, as it does not have operations nor sales in either Russia or Ukraine. While much of the Company's customer demand and shipments have recovered from the impact of the COVID-19 pandemic, the Company cannot predict the overall extent of the impact of any resurgence of COVID-19, its variants or any future pandemic on its operating results, cash flows, liquidity, and financial condition, which will depend on certain developments, including the duration and spread of such outbreak and its impact on the Company's customers, employees, suppliers, and other partners. Use of estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Due to impacts from the worldwide semiconductor shortage, geopolitical conflicts (including the Russian invasion of Ukraine) and the COVID-19 pandemic, there has been and will continue to be uncertainty and disruption in the global economy and financial markets. The Company has made estimates and assumptions taking into consideration certain possible impacts due to the COVID-19 pandemic and the Russian invasion of Ukraine. These estimates may change, as new events occur, and additional information is obtained. Actual results may differ from previously estimated amounts, and such differences may be material to the consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they occur. Cash and cash equivalents. Cash and cash equivalents consist of cash and highly liquid investments with a maturity of three months or less. Highly liquid investments include money market funds which are classified within Level 1 of the fair value hierarchy. As of April 29, 2023 and April 30, 2022, the Company had a balance of $ 1.3 million and $ 40.0 million, respectively, in money market accounts. Accounts receivable and allowance for doubtful accounts. Accounts receivable are customer obligations due under normal trade terms and are presented net of an allowance for doubtful accounts. The Company establishes an allowance for doubtful accounts based on the current expected credit loss impairment model. The Company applies a historical loss rate based on historic write-offs to aging categories. The historical loss rate is adjusted for current conditions and reasonable and supportable forecasts of future losses as necessary. The Company may also record a specific reserve for individual accounts when it becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer’s operating results or financial position. The allowance for doubtful accounts balance was $ 1.3 million and $ 1.0 million as of April 29, 2023 and April 30, 2022 , respectively. Concentration of credit risk. Financial assets that subject the Company to concentration of credit risk consist primarily of cash equivalents, derivative contracts, and accounts receivable. The Company’s counterparties for cash equivalents and derivative contracts are banks and financial institutions that meet the Company’s requirement of high credit standing. However, the balances with U.S. financial institutions often exceed the amount of insurance provided on such accounts by the Federal Deposit Insurance Corporation. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers. The Company generally does not require collateral, but rather performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customers’ current credit worthiness. The following customers in the Automotive segment accounted for more than 10% of net sales: Fiscal Year Ended April 29, 2023 April 30, 2022 May 1, 2021 Customer A 18.7 % 23.3 % 27.5 % Customer B 10.8 % * * * less than 10% At April 29, 2023 , no customer accounted for greater than 10 % of the Company's accounts receivable. At April 30, 2022 , Customer A accounted for approximately 15.4 % of the Company's accounts receivable. Inventories. Inventories are stated at the lower-of-cost or net realizable value. Cost is determined using the first-in, first-out method. Finished products and work-in-process inventories include direct material costs and direct and indirect manufacturing costs. The Company records reserves for inventory that may be obsolete or in excess of current and future market demand. See Note 5, “Inventory” for additional information. Property, plant and equipment. Property, plant and equipment are recorded at cost less accumulated depreciation, with the exception of assets acquired through acquisitions, which are initially recorded at fair value. Equipment acquired under a finance lease is recorded at the present value of the future minimum lease payments. Depreciation is computed using the straight-line method over the estimated useful lives of 5 to 40 years for buildings and building improvements and 3 to 15 years for machinery and equipment. Costs of additions and major improvements are capitalized, whereas maintenance and repairs that do not improve or extend the life of the asset are charged to expense as incurred. See Note 6, “Property, Plant and Equipment” for additional information. Business combinations. The Company accounts for business combinations using the acquisition method. The purchase price of an acquired business is allocated to its identifiable assets and liabilities based on estimated fair values. Determining the fair values of assets acquired and liabilities assumed requires management’s judgment, the utilization of independent appraisal firms and often involves the use of significant estimates and assumptions with respect to the timing and amount of future cash flows, market rate assumptions, actuarial assumptions, and appropriate discount rates, among other items. Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. Identifiable intangible assets with finite lives are amortized over their useful lives. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. See Note 3, “Acquisition” for additional information. Goodwill. Goodwill is not amortized but is tested for impairment on at least an annual basis. Goodwill is evaluated at the reporting unit level by comparing the fair value of the reporting unit with its carrying amount including goodwill. An impairment of goodwill exists if the carrying amount of the reporting unit exceeds its fair value. The impairment loss is the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to that reporting unit. In performing the goodwill impairment test, the Company may first assess qualitative factors to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. See Note 7, “Goodwill and Other Intangible Assets” for additional information regarding the Company’s goodwill impairment assessment for fiscal 2023 . Amortizable intangible assets . Amortizable intangible assets consist primarily of fair values assigned to customer relationships and trade names. Amortization is recognized over the useful lives of the intangible assets, generally up to 20 years , using the straight-line method. See Note 7, “Goodwill and Other Intangible Assets” for additional information. Impairment of long-lived assets. The Company evaluates whether events and circumstances have occurred which indicate that the remaining estimated useful lives of its intangible assets, excluding goodwill, and other long-lived assets, may warrant revision or that the remaining balance of such assets may not be recoverable. If impairment indicators exist, the Company performs an impairment analysis by comparing the undiscounted cash flows resulting from the use of the asset group to the carrying amount. If the carrying amount exceeds the undiscounted cash flows, an impairment loss is recognized based on the excess of the asset’s carrying amount over its fair value. Pre-production costs related to long-term supply arrangements. The Company incurs pre-production tooling costs related to products produced for its customers under long-term supply arrangements. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred, unless the costs are reimbursable by the customer. As of April 29, 2023 and April 30, 2022, the Company had $ 36.1 million and $ 27.2 million, 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. Costs for molds, dies and other tools used in products produced for its customers under long-term supply arrangements for which the Company has title are capitalized in property, plant and equipment and amortized over the shorter of the life of the arrangement or over the estimated useful life of the assets. Company owned tooling was $ 12.2 million and $ 14.6 million as of April 29, 2023 and April 30, 2022 , respectively. Leases. The Company determines if an arrangement is a lease at inception. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company estimates the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company utilizes certain practical expedients, including the election not to reassess its prior conclusions about lease identification, lease classification and initial direct costs, as well as the election not to separate lease and non-lease components for arrangements where the Company is a lessee. The Company elects to recognize a right-of-use asset and related lease liability for leases with a lease term of 12 months or less for all classes of underlying assets. Lease expense is recognized on a straight-line basis over the lease term. See Note 16, “Leases” for additional information. Derivative financial instruments. The Company uses derivative financial instruments, including swaps and forward contracts, to manage exposures to changes in currency exchange rates and interest rates. The Company does not enter into or hold derivative financial instruments for trading or speculative purposes. See Note 8, “Derivative Financial Instruments and Hedging Activities” for additional information. Redeemable noncontrolling interest. The Company reports noncontrolling interests in the mezzanine (“temporary equity”) section, between liabilities and equity, of the consolidated balance sheets, to the extent that such noncontrolling interests have redemption features that are not solely within the control of the Company. The carrying amount of the redeemable noncontrolling interest, initially valued at fair value as part of acquisition accounting, is adjusted each reporting period to equal the greater of the (i) redemption value or (ii) carrying value of the noncontrolling interest, adjusted each reporting period for income or loss attributable to the noncontrolling interest and any distributions made to date. Refer to Note 3, “Acquisition” for additional information. Income taxes. Income taxes are calculated using the asset and liability method, under which deferred tax assets and liabilities are determined based on temporary differences between the financial statement amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining whether an uncertain tax position exists, the Company determines, based solely on its technical merits, whether the tax position is more likely than not to be sustained upon examination, and if so, a tax benefit is measured on a cumulative probability basis that is more likely than not to be realized upon the ultimate settlement. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. See Note 11, “Income Taxes” for additional information. Revenue recognition. Revenue is recognized in accordance with Accounting Standards Codification (“ASC”) 606, “ Revenue from Contracts with Customers. ” Revenue is measured based on consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. From time to time, customers may negotiate annual price downs. Management has evaluated these price downs and determined that in some instances, these price downs give rise to a material right. In instances that a material right exists, a portion of the transaction price is allocated to the material right and recognized over the life of the contract. Across all products, the amount of revenue recognized corresponds to the related purchase order and is adjusted for variable consideration (such as discounts). Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. The Company’s performance obligations are typically short-term in nature. As a result, the Company has elected the practical expedient that provides an exemption from the disclosure requirements regarding information about remaining performance obligations on contracts that have original expected durations of one year or less. See Note 2, “Revenue” for further information. 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. Restructuring expense. Restructuring expense includes costs directly associated with exit or disposal activities. Such costs include employee severance and termination benefits, asset impairment charges, contract termination fees, and other exit or disposal costs. Employee termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable. Asset impairment charges relate to the impairment of ROU lease assets and equipment. Contract termination costs are recorded when notification of termination is given to the other party. See Note 4, “Restructuring” for additional information. Foreign currency translation. The functional currencies of the majority of the Company’s foreign subsidiaries are their local currencies. The results of operations of these foreign subsidiaries are translated into U.S. dollars using average monthly rates, while the assets and liabilities are translated using period-end exchange rates. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains and losses arising from transactions denominated in a currency other than the functional currency, except certain long-term intercompany transactions, are included in the consolidated statements of income in other income, net. Government incentives and grants. From time to time, the Company receives government grants in the form of cash grants and other incentives in return for past or future compliance with certain conditions. The Company accounts for funds received from government grants by analogy to International Accounting Standards 20, “ Accounting for Government Grants and Disclosure of Government Assistance. ” Accordingly, the Company recognizes government grants in the consolidated statement of income when there is reasonable assurance that it will comply with the conditions associated with the grant and the grants will be received. Government grants are recorded in the consolidated financial statements in accordance with their purpose as a reduction of expenses, a reduction of asset costs, or other income. Incentives related to specific operating activities are offset against the related expense in the period the expense is incurred. The Company recorded $ 9.7 million of government grants as other income, net in fiscal 2023 . The Company recorded $ 0.6 million of government grants as a reduction of cost of goods sold and selling and administrative expense in fiscal 2023. Some government grants are paid over a period of years and are recorded at amortized cost on the Company’s consolidated balance sheets. As of April 29, 2023 and April 30, 2022 , grant receivables outstanding were $ 17.8 million and $ 12.7 million, respectively. The short-term and long-term portion of grant receivables are recorded on the consolidated balance sheets within accounts receivable, net and other long-term assets, respectively. 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 cost of goods sold on the consolidated statements of income. Research and development costs were $ 35.0 million, $ 35.7 million and $ 37.1 million for fiscal 2023, fiscal 2022 and fiscal 2021 , respectively. Stock-based compensation. The Company recognizes compensation expense for the cost of awards of equity compensation using a fair value method in accordance with ASC 718, “ Stock-based Compensation .” See Note 13, “Shareholders’ Equity” for additional information. Product warranty. The Company’s warranties are standard, assurance-type warranties only. The Company does not offer any additional service or extended term warranties to its customers. As such, warranty obligations are accrued when its probable that a liability has been incurred and the related amounts are reasonably estimable. Fair value measurement. ASC 820, “ Fair Value Measurement ,” provides a framework for measuring fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy under ASC 820 requires an entity to maximize the use of observable inputs. The Company groups assets and liabilities at fair value in three levels as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities; • Level 2 - Observable inputs for similar assets or liabilities adjusted for terms specific to the asset or liability; • Level 3 - Unobservable inputs in which little or no market activity exists, requiring the Company to develop its own assumptions that market participants would use to value the asset or liability. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes to the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The carrying values of the Company’s 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. Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, “ Government Assistance (Topic 832) ,” which requires annual disclosures when an entity has received government assistance. This guidance is intended to improve the transparency of government assistance received by requiring disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on the registrant’s financial statements. The Company adopted this standard effective April 29, 2023 on a prospective basis. See related policy discussion above. New Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU No. 2021-08, “ Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ,” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured at the acquisition date in accordance with ASC 606, as if the acquirer had originated the contracts. Prior to the issuance of this ASU, contract assets and liabilities were recognized at fair value on the acquisition date. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within that fiscal year, with early adoption permitted, and should be applied on a prospective basis. This ASU will be effective for the Company in the first quarter of fiscal 2024. The Company believes the adoption of this ASU will not have a material impact on its consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Apr. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 2. Revenue The Company generates revenue from manufacturing of products for customers in diversified global markets. The majority of the Company’s revenue is recognized at a point in time. The Company has determined that the most definitive demonstration that control has transferred to a customer is physical shipment or delivery, depending on the contractual shipping terms, except for consignment transactions. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon the customer’s usage. Revenue associated with products which the Company believes have no alternative use (such as highly customized parts), and where the Company has an enforceable right to payment, are recognized on an over time basis. Revenue is recognized based on progress to date, which is typically even over the production process through transfer of control to the customer. Estimating total contract revenue may require judgment as certain contracts contain pricing discount structures, early payment discounts or other provisions that can impact the transaction price. The Company generally estimates variable consideration utilizing the most likely amount to which it expects to be entitled. When the contract provides the customer with the right to return eligible products, the Company reduces revenue at the point of sale using current facts and historical experience by using an estimate for expected product returns. The Company adjusts these estimates at the earlier of when the most likely amount of consideration that is expected to be received changes or when the consideration becomes fixed. Accordingly, an increase or decrease to revenue is recognized at that time. The Company’s payment terms with its customers are typically 30 - 45 days from the time control transfers. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606 to not assess whether a contract has a significant financing component. Costs to fulfill/obtain a contract The Company incurs pre-production tooling costs related to products produced for customers under long-term supply arrangements. These costs are capitalized and recognized into income upon acceptance. The Company concluded that pre-production tooling and engineering costs do not represent a promised good or service under ASC 606, and as such, reimbursements received are accounted for as a reimbursement of the expense, not revenue. The Company has not historically incurred material costs to obtain a contract. In the instances that costs to obtain contracts are incurred, the Company will capitalize and amortize those over the life of the contract. Contract balances The Company receives payment from customers based on the contractual billing schedule and specific performance requirements established in the contract. Billings are recorded as accounts receivable when an unconditional right to the contractual consideration exists. A contract asset is an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer. A contract liability exists when the Company has received consideration, or the amount is due from the customer in advance of revenue recognition. Contract assets and contract liabilities are recognized in other current assets and other liabilities, respectively, in the Company's consolidated balance sheets. Unbilled receivables (contract assets) - Pursuant to the over-time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled receivable is recorded to reflect revenue that is recognized over time. Unbilled receivables were $ 0.5 million and $ 0.4 million as of April 29, 2023 and April 30, 2022, respectively. During fiscal 2023 , $ 0.4 million of previously unbilled receivables were recorded into accounts receivable. There were no impairments of contract assets as of April 29, 2023 or April 30, 2022. Deferred revenue (contract liabilities) - For certain of the price reductions offered by the Company, the amount of the reduction cannot be attributed entirely to production efficiencies gained. In these cases, the annual price-downs are considered to be material rights as the customer, as part of their current contract, are purchasing an option that they would not have received without the contract to purchase future product. When a contract contains a material right, a portion of the transaction price is allocated to the material right for which revenue recognition is deferred until the customer exercises its option. Deferred revenue was $ 0.1 million and $ 0.2 million as of April 29, 2023 and April 30, 2022 , respectively. Previously deferred revenue of $ 0.1 million was recorded into revenue during fiscal 2023. Disaggregated revenue information The following table represents a disaggregation of revenue from contracts with customers by segment and geographical location. Net sales are attributed to regions based on the location of production. Though revenue recognition patterns and contracts are generally consistent, the amount, timing and uncertainty of revenue and cash flows may vary in each reportable segment due to geographic and economic factors. Fiscal Year Ended April 29, 2023 (in millions) Automotive Industrial Interface Medical Total Geographic net sales: North America $ 349.0 $ 160.5 $ 54.7 $ 3.6 $ 567.8 Europe, the Middle East & Africa ("EMEA") 231.2 139.9 — — 371.1 Asia 156.0 84.5 0.2 — 240.7 Total net sales $ 736.2 $ 384.9 $ 54.9 $ 3.6 $ 1,179.6 Timing of revenue recognition: Goods transferred at a point in time $ 717.4 $ 384.9 $ 54.9 $ 3.6 $ 1,160.8 Goods transferred over time 18.8 — — — 18.8 Total net sales $ 736.2 $ 384.9 $ 54.9 $ 3.6 $ 1,179.6 Fiscal Year Ended April 30, 2022 (in millions) Automotive Industrial Interface Medical Total Geographic net sales: North America $ 400.9 $ 177.2 $ 59.3 $ 4.1 $ 641.5 EMEA 216.5 80.8 — — 297.3 Asia 164.1 60.1 0.5 0.1 224.8 Total net sales $ 781.5 $ 318.1 $ 59.8 $ 4.2 $ 1,163.6 Timing of revenue recognition: Goods transferred at a point in time $ 758.4 $ 318.1 $ 59.8 $ 4.2 $ 1,140.5 Goods transferred over time 23.1 — — — 23.1 Total net sales $ 781.5 $ 318.1 $ 59.8 $ 4.2 $ 1,163.6 Fiscal Year Ended May 1, 2021 (in millions) Automotive Industrial Interface Medical Total Geographic net sales: North America $ 406.4 $ 142.9 $ 61.0 $ 2.7 $ 613.0 EMEA 212.3 68.2 — — 280.5 Asia 137.0 56.8 0.6 0.1 194.5 Total net sales $ 755.7 $ 267.9 $ 61.6 $ 2.8 $ 1,088.0 Timing of revenue recognition: Goods transferred at a point in time $ 722.1 $ 267.9 $ 61.6 $ 2.8 $ 1,054.4 Goods transferred over time 33.6 — — — 33.6 Total net sales $ 755.7 $ 267.9 $ 61.6 $ 2.8 $ 1,088.0 |
Acquisition
Acquisition | 12 Months Ended |
Apr. 29, 2023 | |
Business Combinations [Abstract] | |
Acquisition | N ote 3. Acquisition On April 20, 2023, the Company acquired 92.2 % of the outstanding shares in Nordic Lights Group Corporation (“Nordic Lights”), a premium provider of high-quality lighting solutions for heavy duty equipment headquartered in Finland, for € 121.8 million ($ 134.2 million) in cash. The acquisition of Nordic Lights complements the Company’s existing LED lighting solution offerings. The acquisition was funded through a combination of borrowings under the Company's revolving credit facility and cash on hand. The results of the operations of Nordic Lights are reported within the Industrial segment from the date of acquisition. The acquisition was accounted for as a business combination. The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase price, were as follows: (in millions) Cash and cash equivalents $ 19.6 Accounts receivable 17.1 Inventories 9.6 Property, plant and equipment 12.9 Identifiable intangible assets 68.1 Accounts payable ( 10.8 ) Long-term debt ( 24.4 ) Other assets and liabilities, net ( 2.8 ) Deferred tax liabilities ( 13.4 ) Total identifiable net assets acquired 75.9 Goodwill 69.6 Total fair value of net assets acquired 145.5 Less: redeemable noncontrolling interest ( 11.3 ) Total purchase price $ 134.2 The noncontrolling interest was recognized at fair value, which was determined to be the noncontrolling interest’s proportionate share of the fair value of net assets acquired, as of the acquisition date. The noncontrolling interest is classified as a redeemable noncontrolling interest on the consolidated balance sheets as minority shareholders owning less than 10 % of the outstanding shares in a company in Finland have the right to require the Company to redeem their shares. As of April 29, 2023, the Company considered these amounts to be provisional because it is still in the process of gathering and reviewing information to support the valuations of the assets acquired, liabilities assumed and related tax positions. Goodwill arising from the acquisition was included in the Industrial segment as of April 29, 2023 and was attributable to potential synergies and an assembled workforce. The Company does no t expect any recognized goodwill from this acquisition to be deductible for income tax purposes. Intangible assets primarily include customer relationships, technology licenses and trademarks. The weighted average amortization period for the acquired intangible assets is approximately 16.4 years. On April 24, 2023, the Company paid off the long-term debt acquired from Nordic Lights utilizing borrowings under the Company's revolving credit facility and cash on hand. The results of operations for Nordic Lights from the acquisition date through April 29, 2023 were not material. The pro-forma effects of this acquisition would not materially impact the Company’s operating results for any period presented, and as a result no pro-forma financial statements were presented. Acquisition costs of $ 6.8 million were incurred in relation to the acquisition of Nordic Lights and were reported in selling and administrative expenses. From May 1, 2023 to June 16, 2023, the Company acquired an additional 7.2 % of the outstanding shares of Nordic Lights for € 9.3 million ($ 10.2 million) increasing the Company’s ownership to 99.4 %. The Company has commenced redemption proceedings in order to obtain ownership of all the issued and outstanding shares in Nordic Lights. The Company expects the redemption proceedings to be completed by October 31, 2023 . |
Restructuring
Restructuring | 12 Months Ended |
Apr. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Note 4. Restructuring The Company continually monitors market factors and industry trends and takes restructuring actions to reduce overall costs and improve future operational profitability as appropriate. Restructuring actions generally result in charges for employee termination benefits, plant closures, asset impairments and contract termination costs. Asset impairment charges recognized in fiscal 2023 primarily related to a facility shutdown and consolidation into an existing location in the Industrial segment. In fiscal 2022, the Company initiated a restructuring plan to consolidate one of its operations within the Industrial segment in response to logistics and tariff issues. This action resulted in a facility shutdown and consolidation of activities into an existing location. In fiscal 2021, the Company initiated certain restructuring actions in response to the adverse impacts from the COVID-19 pandemic. These actions included plant consolidations and workforce reductions in the Automotive, Industrial and Interface segments. Employee termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable. Asset impairment charges relate to the impairment of ROU lease assets and equipment. Contract termination costs are recorded when notification of termination is given to the other party. Components of restructuring costs were as follows: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Employee termination benefits $ 0.3 $ 0.4 $ 7.1 Asset impairment charges 0.7 3.1 0.6 Contract termination charges — 0.1 0.5 Total restructuring costs $ 1.0 $ 3.6 $ 8.2 The table below presents restructuring costs by reportable segment: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Automotive $ 0.4 $ 0.2 $ 6.2 Industrial 0.5 3.4 1.0 Interface — — 0.7 Medical — — — Eliminations/Corporate 0.1 — 0.3 Total restructuring costs $ 1.0 $ 3.6 $ 8.2 Recognized in: Cost of products sold $ 0.5 $ 1.3 $ 4.8 Selling and administrative expenses 0.5 2.3 3.4 $ 1.0 $ 3.6 $ 8.2 The Company's restructuring liability was $ 0.0 million and $ 0.1 million as of April 29, 2023 and April 30, 2022 , respectively. Estimates of restructuring costs are based on information available at the time such charges are recorded. Due to the inherent uncertainty involved in estimating restructuring costs, actual amounts paid for such activities may differ from amounts initially recorded. Accordingly, the Company may record revisions of previous estimates by adjusting previously established accruals. The Company may take additional restructuring actions in future periods based upon market conditions and industry trends. |
Inventory
Inventory | 12 Months Ended |
Apr. 29, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 5. Inventory A summary of inventories is shown below: (in millions) April 29, 2023 April 30, 2022 Finished products $ 36.6 $ 31.8 Work in process 14.4 12.9 Raw materials 108.7 113.8 Total inventories $ 159.7 $ 158.5 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Apr. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 6. Property, Plant and Equipment A summary of property, plant and equipment is shown below: (in millions) April 29, 2023 April 30, 2022 Land $ 3.0 $ 3.3 Buildings and building improvements 98.8 89.2 Machinery and equipment 414.3 407.5 Construction in progress 40.6 21.5 Total property, plant and equipment, gross 556.7 521.5 Less: accumulated depreciation ( 336.4 ) ( 324.5 ) Property, plant and equipment, net $ 220.3 $ 197.0 Depreciation expense was $ 30.7 million, $ 33.5 million and $ 32.2 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively. As of April 29, 2023, April 30, 2022 and May 1, 2021, capital expenditures recorded in accounts payable totaled $ 4.5 million, $ 4.4 million and $ 5.5 million, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Apr. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 7. Goodwill and Other Intangible Assets Goodwill The Company tests goodwill for impairment on an annual basis as of the beginning of the fourth quarter each year, or more frequently if indicators of potential impairment exist. Goodwill impairment testing is conducted at the reporting unit level, which is generally defined as an operating segment or one level below an operating segment (also known as a reporting unit), for which discrete financial information is available and segment management regularly reviews the operating results of that reporting unit. At the beginning of the fourth quarter of fiscal 2023, the annual goodwill impairment assessment was completed. The Company performed a qualitative assessment for two reporting units within the Industrial segment and a quantitative assessment for one reporting unit within the Industrial segment and two reporting units within the Automotive segment. The qualitative assessments indicated that it was more likely than not that the fair value of each reporting unit exceeded its respective carrying value. For the quantitative assessment, the Company utilized the income approach to estimate the fair value of the reporting units. Cash flow projections were based on management’s estimates of revenue growth rates and earnings before interest, taxes, depreciation and amortization (“EBITDA”) margins, taking into consideration business and market conditions for the countries and markets in which the reporting unit operates. The Company calculates the discount rate based on a market-participant, risk-adjusted weighted average cost of capital, which considers industry specific rates of return on debt and equity capital for a target industry capital structure, adjusted for risks associated with business size, geography and other factors specific to the reporting unit. The quantitative assessment of the reporting units indicated that the fair value exceeded the carrying value. The Company will continue to assess its goodwill for impairment as events and circumstances change. Any deterioration in the Company’s forecasted revenue and EBITDA margins, could result in an impairment of a portion or all of its goodwill. The amount of such impairment would be recognized as an expense in the period the goodwill is impaired. A summary of the changes in goodwill by reportable segment is as follows: (in millions) Automotive Industrial Total Balance as of May 2, 2020 $ 106.2 $ 125.4 $ 231.6 Foreign currency translation 0.5 3.5 4.0 Balance as of May 1, 2021 106.7 128.9 235.6 Foreign currency translation ( 0.8 ) ( 1.8 ) ( 2.6 ) Balance as of April 30, 2022 105.9 127.1 233.0 Acquisitions — 69.6 69.6 Foreign currency translation 0.3 ( 1.0 ) ( 0.7 ) Balance as of April 29, 2023 $ 106.2 $ 195.7 $ 301.9 A summary of goodwill by reporting unit is as follows: (in millions) April 29, 2023 April 30, 2022 Grakon Industrial $ 124.5 $ 125.5 North American Automotive 99.8 99.8 Nordic Lights 69.6 — European Automotive 6.4 6.1 Other 1.6 1.6 Total $ 301.9 $ 233.0 Other intangible assets, net Details of identifiable intangible assets are shown below: As of April 29, 2023 (in millions) Gross Accumulated Net Weighted average remaining useful life (years) Amortized intangible assets: Customer relationships and agreements $ 286.7 $ ( 68.2 ) $ 218.5 14.8 Trade names, patents and technology licenses 71.6 ( 35.2 ) 36.4 6.0 Total amortized intangible assets 358.3 ( 103.4 ) 254.9 Unamortized trade name 1.8 — 1.8 Total other intangible assets $ 360.1 $ ( 103.4 ) $ 256.7 As of April 30, 2022 (in millions) Gross Accumulated Net Weighted average remaining useful life (years) Amortized intangible assets: Customer relationships and agreements $ 232.3 $ ( 55.1 ) $ 177.2 14.7 Trade names, patents and technology licenses 58.0 ( 29.3 ) 28.7 6.2 Total amortized intangible assets 290.3 ( 84.4 ) 205.9 Unamortized trade name 1.8 — 1.8 Total other intangible assets $ 292.1 $ ( 84.4 ) $ 207.7 The Company performed an impairment test for its indefinite-lived trade name intangible asset and determined that no impairment existed as of April 29, 2023 . Based on the current amount of intangible assets subject to amortization, the estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter is as follows: (in millions) Fiscal Year: 2024 $ 23.0 2025 22.4 2026 21.6 2027 20.9 2028 18.6 Thereafter 148.4 Total $ 254.9 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Apr. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Note 8. Derivative Financial Instruments and Hedging Activities In the normal course of business, the Company is exposed to various market risks including, but not limited to, foreign currency exchange rates and market interest rates. The Company strives to control its exposure to these risks through our normal operating activities and, where appropriate, through the use of derivative financial instruments. Derivative financial instruments are measured at fair value on a recurring basis. For a designated cash flow hedge, the effective portion of the change in the fair value of the derivative financial instrument is recorded in AOCI in the consolidated balance sheets. When the underlying hedged transaction is realized, the gain or loss previously included in AOCI is recorded in earnings and reflected in the consolidated statements of income on the same line as the gain or loss on the hedged item attributable to the hedged risk. The gain or loss associated with changes in the fair value of derivatives not designated as hedges are recorded immediately in the consolidated statements of income on the same line as the associated risk. For designated net investment hedges, the effective portion of the change in the fair value is recorded as a cumulative translation adjustment in AOCI in the consolidated balance sheets. Gains and losses reported in AOCI are reclassified to earnings only when the related currency translation adjustments are required to be reclassified, usually upon sale or liquidation of the investment. Net investment hedges The Company is exposed to the risk that adverse changes in foreign currency exchange rates could impact its net investment in non-U.S. subsidiaries. To manage this risk, the Company designates certain qualifying derivative and non-derivative instruments, including cross-currency swaps and foreign currency-denominated debt, as net investment hedges of certain non-U.S. subsidiaries. The Company has a variable-rate, cross-currency swap, maturing on August 31, 2023 , with a notional value of $ 60.0 million (€ 54.8 million). The cross-currency swap is designated as a hedge of the Company’s net investment in its euro-denominated subsidiaries. Hedge effectiveness is assessed at the inception of the hedging relationship and quarterly thereafter, under the spot-to-spot method. The Company recognizes the impact of all other changes in fair value of the derivative, which represents the interest rate differential of the cross-currency swap, through interest expense. For fiscal 2023 and fiscal 2022 , the Company recorded gains of $ 1.3 million and $ 0.2 million, respectively, in interest expense, net in the consolidated statements of income. The Company has also designated its euro-denominated long-term borrowings of $ 145.4 million under the Credit Agreement as a hedge of the Company's investment in its euro-denominated subsidiaries. The objective of the hedge is to protect the net investment in the foreign operation against adverse changes in the euro exchange rate. The change in the value of the euro-denominated long-term borrowings, which is due to changes in foreign exchange rates, is recorded in the currency translation section of AOCI, net of tax. For the year ended April 29, 2023 , the transaction loss associated with the net investment hedge reported in AOCI was $ 0.6 million. Interest rate swaps The Company has interest rate swaps, maturing on August 31, 2023 , with a notional value of $ 100.0 million, to manage its exposure to, and to mitigate the impact of, interest rate variability. The interest rate swaps are designated as cash flow hedges. Hedge effectiveness is assessed at the inception of the hedging relationship and quarterly thereafter. The effective portion of the periodic changes in fair value is recognized in AOCI. Subsequently, the accumulated gains and losses recorded in AOCI are reclassified to income in the period during which the hedged cash flow impacts earnings, which are expected to be immaterial over the next 12 months. No ineffectiveness was recognized in fiscal 2023 or fiscal 2022. Derivatives not designated as hedges The Company uses short-term foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-functional currency balance sheet exposures. These forward contracts are not designated as hedging instruments. Gains and losses on these forward contracts are recognized in other income, net, along with the foreign currency gains and losses on monetary assets and liabilities in the consolidated statements of income. As of April 29, 2023 and April 30, 2022 , the Company held foreign currency forward contracts with a notional value of $ 59.9 million and $ 38.6 million, respectively. In fiscal 2023 and fiscal 2022 , the Company recognized a loss of $ 4.1 million and a gain of $ 0.1 million, respectively, related to foreign currency forward contracts in the consolidated statements of income. Fair value of derivative instruments on the balance sheet The fair value of derivative instruments are classified as Level 2 within the fair value hierarchy and are recorded in the balance sheets as follows: Asset/(Liability) (in millions) Financial Statement Caption April 29, 2023 April 30, 2022 Derivatives designated as hedging instruments: Net investment hedges Other accrued liabilities $ ( 0.5 ) $ — Net investment hedges Other long-term assets $ — $ 1.9 Interest rate swaps Prepaid expenses and other current assets $ 1.6 $ — Interest rate swaps Other long-term assets $ — $ 3.0 Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other current assets $ 0.1 $ — Foreign currency forward contracts Other accrued liabilities $ ( 0.1 ) $ ( 0.2 ) Effect of derivative instruments on comprehensive income (loss) Gross amounts recorded in other comprehensive income (loss) were as follows: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Net investment hedges $ ( 2.4 ) $ 8.7 $ ( 5.5 ) Interest rate swaps ( 1.4 ) 3.2 ( 0.2 ) Total $ ( 3.8 ) $ 11.9 $ ( 5.7 ) |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Apr. 29, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Note 9. Retirement Benefits Defined contribution plans The Company has an employee 401(k) Savings Plan covering substantially all U.S. employees to which it makes contributions equal to 3 % of eligible compensation. In addition, certain of the Company’s foreign subsidiaries also have defined contribution savings plans. Company contributions to these plans were $ 1.2 million, $ 1.2 million and $ 1.2 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively. Non-qualified deferred compensation plan The Company maintains a non-qualified deferred compensation plan (“NQDC Plan”) for certain eligible employees and members of the Board of Directors. Under the NQDC Plan, employees may elect to defer up to 75 % of their annual base salary and 100 % of their annual cash incentive compensation, with an aggregate minimum deferral of $ 3,000 . Directors may defer all or a portion of their annual directors’ fees or annual stock awards. The minimum period of deferral is three years . Participants are immediately 100 % vested. The Company does no t make any contributions to the NQDC Plan. The deferred compensation liability for the NDQC Plan was $ 9.4 million and $ 7.6 million as of April 29, 2023 and April 30, 2022 , respectively. The Company has purchased life insurance policies on certain employees, which are held in a Rabbi trust, to potentially offset these unsecured obligations. These life insurance policies are recorded at their cash surrender value of $ 7.7 million and $ 7.8 million as of April 29, 2023 and April 30, 2022, respectively, and are included in other long-term assets in the consolidated balance sheets. The Company also owns and is the beneficiary of a number of life insurance policies on the lives of former key executives that are unrestricted as to use. These life insurance policies are recorded at their cash surrender value of $ 10.4 million and $ 9.9 million as of April 29, 2023 and April 30, 2022, respectively, and are included in other long-term assets in the consolidated balance sheets. The cash surrender value of the life insurance policies approximates its fair value and is classified within Level 2 of the fair value hierarchy. |
Debt
Debt | 12 Months Ended |
Apr. 29, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 10. Debt A summary of debt is shown below: (in millions) April 29, 2023 April 30, 2022 Revolving credit facility $ 305.4 $ — Term loan — 206.3 Other debt 4.7 5.1 Unamortized debt issuance costs ( 3.3 ) ( 0.9 ) Total debt 306.8 210.5 Less: current maturities ( 3.2 ) ( 13.0 ) Total long-term debt $ 303.6 $ 197.5 Revolving credit facility/term loan On October 31, 2022, the Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”) among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the Lenders and other parties named therein. The Credit Agreement amends and restates the Amended and Restated Credit Agreement, dated September 12, 2018 and as previously amended (the “Prior Credit Agreement”), among the Company, 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. Among other things, the Credit Agreement (i) increased the multicurrency revolving credit commitments under the Prior Credit Agreement to $ 750,000,000 , (ii) refinanced in full and terminated the term loan facility under the Prior Credit Agreement, and (iii) made certain other changes to the covenants, terms, and conditions under the Prior Credit Agreement. In addition, the Credit Agreement permits the Company to increase the revolving commitments and/or add one or more tranches of term loans under the Credit Agreement from time to time by up to an amount equal to (i) $ 250,000,000 plus (ii) an additional amount so long as the leverage ratio would not exceed 3.00 :1.00 on a pro forma basis, subject to, among other things, the receipt of additional commitments from existing and/or new lenders. The Credit Agreement matures on October 31, 2027 . Loans denominated in US dollars under the Credit Agreement bear interest at either (a) an adjusted base rate or (b) an adjusted term Secured Overnight Financing Rate (“SOFR”) rate or term SOFR daily floating rate (in each case, as determined in accordance with the provisions of the Credit Agreement) in each case plus an applicable rate (the “Applicable Rate”) ranging between 0.375 % and 1.25 %, in the case of adjusted base rate loans, and between 1.375 % and 2.25 %, in the case of adjusted term SOFR rate loans and term SOFR daily floating rate loans. Loans denominated in Euros will bear interest at the Euro Interbank Offered Rate plus an Applicable Rate ranging between 1.375 % and 2.25 %. The Applicable Rate is set based on the Company’s consolidated leverage ratio. As of April 29, 2023, the outstanding balance under the revolving credit facility includes $ 145.4 million of euro-denominated borrowings which was primarily used to fund the Company's acquisition of Nordic Lights. The Company has designated the euro-denominated borrowings as a net investment hedge of the foreign currency exposure of its investments in euro-denominated subsidiaries. Refer to Note 8, "Derivative Financial Instruments and Hedging Activities" for further information. In connection with the Credit Agreement, the Company paid debt issuance costs of approximately $ 3.2 million which was capitalized and, along with the previous unamortized debt issuance costs of $ 0.6 million, is amortized into interest expense over the term of the Credit Agreement. The weighted-average interest rate on outstanding borrowings under the Credit Agreement was approximately 5.4 % as of April 29, 2023. The Credit Agreement contains customary representations and warranties, financial covenants, restrictive covenants and events of default. As of April 29, 2023, the Company was in compliance with all the covenants in the Credit Agreement. The fair value of borrowings under the Credit Agreement approximates book value because the interest rate is variable. Other debt One of the Company’s European subsidiaries has debt that consists of three notes with maturities ranging from 2023 to 2031. The weighted-average interest rate was approximately 1.4 % as of April 29, 2023 and $ 3.2 million of the debt was classified as short-term. The fair value of other debt was $ 4.5 million at April 29, 2023 and was based on Level 2 inputs on a non-recurring basis. Scheduled maturities As of April 29, 2023, scheduled principal payments of debt are as follows: (in millions) Fiscal Year: 2024 $ 3.2 2025 0.2 2026 0.2 2027 0.2 2028 305.6 Thereafter 0.7 Total $ 310.1 |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes Income tax provision The U.S. and foreign components of income before income taxes and the provision for income taxes are as follows: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Pre-tax income: U.S. $ ( 3.6 ) $ 31.2 $ 28.3 Foreign 93.7 87.3 106.6 Total pre-tax income $ 90.1 $ 118.5 $ 134.9 Income tax expense: Current: U.S. (federal and state) $ 0.1 $ 5.2 $ 5.8 Foreign 16.9 13.5 15.9 Total current expense 17.0 18.7 21.7 Deferred: U.S. (federal and state) ( 5.7 ) 0.2 1.3 Foreign 1.7 ( 2.6 ) ( 10.4 ) Total deferred benefit ( 4.0 ) ( 2.4 ) ( 9.1 ) Total income tax expense $ 13.0 $ 16.3 $ 12.6 A reconciliation of income tax expense to the U.S. statutory federal income tax rate of 21 % is as follows: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Income tax at statutory rate $ 18.9 $ 24.9 $ 28.3 Effect of: State income taxes, net of federal benefit — 0.6 0.1 Reorganization of a foreign owned subsidiary ( 7.3 ) — — Acquisition costs 1.4 — — Withholding taxes 3.4 2.5 2.7 Non-deductible compensation 1.6 2.1 0.5 Foreign tax differential ( 11.6 ) ( 8.1 ) ( 10.8 ) U.S. tax on foreign income 2.9 ( 1.7 ) 2.8 Foreign investment tax credit 5.0 — ( 7.2 ) Research and development ( 1.5 ) ( 2.6 ) ( 2.2 ) Change in tax reserve ( 0.6 ) ( 0.1 ) 0.1 Change in valuation allowance — ( 2.0 ) 1.8 Tax rate change, foreign 0.2 0.1 ( 0.1 ) Other, net 0.6 0.6 ( 3.4 ) Income tax expense $ 13.0 $ 16.3 $ 12.6 Effective income tax rate 14.4 % 13.8 % 9.3 % In fiscal 2023, the effective income tax rate was favorably impacted by the amount of income earned in foreign jurisdictions with lower tax rates. In addition, the Company received a benefit of approximately $ 7.3 million related to the reorganization of a foreign owned subsidiary. These benefits were partially offset by a reduction in foreign investment tax credits of $ 5.0 million and non-deductible acquisition costs of $ 1.4 million. In fiscal 2022, the effective income tax rate was favorably impacted by the amount of income earned in foreign jurisdictions with lower tax rates and the release of a valuation allowance of $ 2.0 million due to a tax law change. In addition, the Company benefited from less U.S. tax on foreign income of $ 1.7 million attributable to lower earnings in non-U.S. jurisdictions which was partially offset with non-deductible compensation of $ 2.1 million. In fiscal 2021, the effective income tax rate was favorably impacted by the amount of income earned in foreign jurisdictions with lower tax rates, tax credits and various deductions allowed in foreign jurisdictions. The Company received a benefit of approximately $ 7.2 million related to a favorable tax ruling in a foreign jurisdiction. Deferred income taxes and valuation allowances Significant components of the Company's deferred income tax assets and liabilities were as follows: (in millions) April 29, 2023 April 30, 2022 Deferred tax liabilities: Fixed assets $ ( 2.7 ) $ ( 4.3 ) Amortization ( 55.4 ) ( 48.1 ) Foreign tax ( 4.5 ) ( 3.1 ) Lease assets ( 6.8 ) ( 4.5 ) Derivative financial instruments ( 0.6 ) ( 1.1 ) Other liabilities — ( 0.6 ) Deferred tax liabilities, gross ( 70.0 ) ( 61.7 ) Deferred tax assets: Deferred compensation and stock award amortization 7.9 6.9 Inventory 5.1 3.5 Lease liabilities 6.8 4.7 Foreign investment tax credit 25.2 29.8 Research expenditures 2.4 — Net operating loss carryforwards 13.5 17.4 Foreign tax credits 1.2 1.3 Unrealized foreign exchange gain/loss 0.8 — Interest carryforwards 2.5 — Other 3.2 3.4 Deferred tax assets, gross 68.6 67.0 Less valuation allowance ( 6.8 ) ( 6.8 ) Deferred tax assets, net of valuation allowance 61.8 60.2 Net deferred tax liability $ ( 8.2 ) $ ( 1.5 ) Balance sheet classification: Long-term asset $ 33.6 $ 36.8 Long-term liability ( 41.8 ) ( 38.3 ) Net deferred tax liability $ ( 8.2 ) $ ( 1.5 ) The Company recorded a net deferred tax liability for U.S. and foreign income taxes of $ 8.2 million and $ 1.5 million for fiscal 2023 and 2022, respectively. In assessing the realizability of the deferred tax assets, the Company considers whether it is more likely than not that some portion or the entire deferred tax asset will be realized. Ultimately, the realization of the deferred tax asset is dependent upon the generation of sufficient earnings in future periods in which these temporary items can be utilized. In that regard, the Company has a valuation allowance of $ 6.8 million related to federal, state, and foreign net operating loss carryovers and other credits and determined that these deferred tax assets did not reach the more likely than not realizable standard. As noted in Note 3, "Acquisition," in fiscal 2023, the Company acquired Nordic Lights, which increased the overall amount of deferred tax assets and liabilities. This included an increase in the deferred tax liabilities of intangible assets and fixed assets, and a deferred tax asset for inventory and interest carryforwards. As of April 29, 2023 , the Company had available $ 35.1 million of federal, $ 71.8 million of state and $ 0.3 million of foreign gross operating loss carryforwards with a valuation allowance of $ 24.2 million for federal, $ 26.1 million for state and $ 0.0 million for foreign. The U.S. federal net operating loss carryforwards will substantially start to expire in 2026 and beyond. The state net operating loss carryforwards will substantially start to expire in 2036 and beyond. Total unused credits are $ 25.2 million as of April 29, 2023, the majority of which can be carried forward indefinitely. Indefinite reinvestment The Company has not provided for deferred income taxes on the undistributed earnings of foreign subsidiaries except for certain identified amounts. The amount the Company expects to repatriate is based on a variety of factors including current year earnings of the foreign subsidiaries, foreign investment needs, and U.S. cash flow considerations. The Company considers the remaining undistributed foreign earnings that are not specifically identified to be indefinitely reinvested of $ 330.6 million. It is not practicable to determine the amount of deferred tax liability on such foreign earnings as the actual tax liability is dependent on circumstances that exist when the remittance occurs. Unrecognized tax benefits The Company operates in multiple jurisdictions throughout the world and the income tax returns of its subsidiaries in various jurisdictions are subject to periodic examination by the tax authorities. The Company regularly assesses the status of these examinations and the various outcomes to determine the adequacy of its provision for income taxes. The amount of gross unrecognized tax benefits totaled $ 4.5 million and $ 5.1 million as of April 29, 2023 and April 30, 2022 , respectively. These amounts represent the amount of unrecognized benefits that, if recognized, would favorably impact the effective tax rate if resolved in the Company’s favor. The Company recognizes interest and penalties related to income tax uncertainties in income tax expense. Accrued interest and penalties were $ 0.2 million at both April 29, 2023 and April 30, 2022. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: (in millions) April 29, 2023 April 30, 2022 Balance at beginning of period $ 5.1 $ 5.3 Increases for positions related to the current year 0.3 — Lapsing of statutes of limitations ( 0.9 ) ( 0.2 ) Balance at end of period $ 4.5 $ 5.1 At April 29, 2023, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits in the next twelve months. The U.S. federal statute of limitations remains open for fiscal years ended on or after 2020 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 2016 and subsequent periods remain open and subject to examination by taxing authorities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Environmental matters The Company is not aware of any potential unasserted environmental claims that may be brought against us. The Company is involved in environmental investigations and/or remediation at two of its United States plant sites no longer used for operations and one currently operating site in Mexico. The Company uses environmental consultants to assist us in evaluating its environmental liabilities in order to establish appropriate accruals in its consolidated 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, the Company has 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. The Company is not yet able to determine when such remediation activity will be complete, but estimates for certain remediation efforts are projected through fiscal 2024. As of April 29, 2023 and April 30, 2022 , the Company had accruals, primarily based upon independent estimates, for environmental matters of $ 1.1 million and $ 1.0 million, respectively. The accrual as of April 29, 2023 consists of $ 0.8 million classified in other accrued expenses and the remainder was included in other long-term liabilities on the consolidated balance sheet. The accrual as of April 30, 2022 consists of $ 0.7 million classified in other accrued expenses and the remainder was included in other long-term liabilities on the consolidated balance sheet. The Company believes 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 2023, fiscal 2022 and fiscal 2021, the Company spent $ 1.1 million, $ 0.5 million, and $ 0.5 million, respectively, on remediation cleanups and related studies. The costs associated with environmental matters as they relate to day-to-day activities were not material in fiscal 2023, fiscal 2022 or fiscal 2021. Litigation The Company, from time to time, is subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, patent infringement claims, employment-related matters and environmental matters. The Company considers 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 the Company's management, based on the information available, that the Company has adequate reserves for these liabilities and that the ultimate resolution of these matters will not have a material adverse effect on the Company's 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. The Company became aware that the Fuchs companies and their managing director, Albert Fuchs, had materially violated those agreements. As a result, the Company terminated all of its agreements with the Fuchs companies. On June 20, 2014, the Company 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 filed counterclaims alleging breach of contract, interference with business relations and business slander. On April 2, 2015, the Company amended its complaint against the Fuchs companies to add additional unfair competition and Lanham Act claims and to add additional affiliated parties. A trial with respect to the matter began in February 2020. During the trial, the defendants dismissed their one remaining counterclaim with prejudice. On March 2, 2020, the jury returned a verdict in favor of the Company. The verdict included approximately $ 102 million in compensatory damages and $ 11 million in punitive damages. On April 22, 2020, the District Court entered a permanent injunction barring defendants from selling infringing products and ordering them to return Hetronic’s confidential information. Defendants appealed entry of the permanent injunction. On May 29, 2020, the District Court held defendants in contempt for violating the permanent injunction and entered the final judgment. Defendants appealed entry of the final monetary judgment as well. The appeal of the permanent injunction and the appeal of the final judgment were consolidated into a single appeal before the U.S. Court of Appeals for the Tenth Circuit. On August 24, 2021, the Tenth Circuit issued a decision affirming the lower court’s ruling with the exception that it instructed the District Court to modify the injunction from the entire world to all of the countries in which Hetronic sells its products. On April 20 and 21, 2022, the District Court held a hearing related to modifying the injunction pursuant to the Tenth Circuit’s opinion, and the parties have filed post-hearing briefs. The defendants also filed a petition for certiorari with the United States Supreme Court seeking to further appeal the extraterritorial application of the Lanham Act in this case. The Company opposed that petition. The Supreme Court requested the views of the Solicitor General on the petition for certiorari, and the Solicitor General recommended granting the petition. On November 4, 2022, the Supreme Court granted the petition. The Supreme Court heard arguments in this matter on March 21, 2023. At the conclusion of the hearing, the Supreme Court took the matter under advisement. Like any judgment, particularly a judgment involving defendants outside of the United States, there is no guarantee that the Company will be able to collect all or any portion of the judgment. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Apr. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Shareholders' Equity | Note 13. Shareholders’ Equity Share buyback program On March 31, 2021, the Board of Directors authorized the purchase of up to $ 100.0 million of the Company’s outstanding common stock through March 31, 2023. On June 16, 2022, the Board of Directors authorized an increase in the share buyback program of an additional $ 100.0 million, and extended the expiration of the program to June 14, 2024. Purchases may be made in private transactions or on the open market, including pursuant to purchase plans designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934. The following table summarizes the Company’s stock buyback activity under this share buyback program: Fiscal Year Ended April 29, 2023 April 30, 2022 Shares purchased 1,197,236 1,425,190 Average price per share $ 40.14 $ 44.73 Total cost (in millions) $ 48.1 $ 63.7 As of April 29, 2023, a total of 2,790,375 shares have been purchased at a total cost of $ 119.3 million since the commencement of the share buyback program. All purchased shares were retired and are reflected as a reduction of common stock for the par value of shares, with the excess applied as a reduction to retained earnings. As of April 29, 2023, the dollar value of shares that remained available to be purchased by the Company under this share buyback program was approximately $ 80.7 million. Dividends The Company paid dividends totaling $ 19.8 million in fiscal 2023 , $ 20.4 million in fiscal 2022 and $ 17.4 million in fiscal 2021 . Dividends paid in fiscal 2021 includes $ 0.9 million of dividends on restricted stock that vested during the period. The Company increased its quarterly dividend from $ 0.11 per share to $ 0.14 per share beginning in fiscal 2022. Accumulated other comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. A summary of changes in accumulated other comprehensive income (loss), net of tax is shown below: (in millions) Currency translation adjustments Derivative Total Balance as of May 2, 2020 $ ( 25.9 ) $ ( 1.0 ) $ ( 26.9 ) Other comprehensive income (loss) 38.6 ( 5.7 ) 32.9 Tax benefit (expense) ( 1.2 ) 1.3 0.1 Net current period other comprehensive income (loss) 37.4 ( 4.4 ) 33.0 Balance as of May 1, 2021 11.5 ( 5.4 ) 6.1 Other comprehensive income (loss) ( 42.4 ) 11.9 ( 30.5 ) Tax benefit (expense) 0.4 ( 2.8 ) ( 2.4 ) Net current period other comprehensive income (loss) ( 42.0 ) 9.1 ( 32.9 ) Balance as of April 30, 2022 ( 30.5 ) 3.7 ( 26.8 ) Other comprehensive income (loss) before reclassifications 12.9 ( 3.8 ) 9.1 Amounts reclassified from accumulated other comprehensive income (loss) ( 2.1 ) — ( 2.1 ) Tax (expense) benefit ( 0.1 ) 0.9 0.8 Net current period other comprehensive income (loss) 10.7 ( 2.9 ) 7.8 Balance as of April 29, 2023 $ ( 19.8 ) $ 0.8 $ ( 19.0 ) Stock-based compensation The Company has granted stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance units (“PUs”) and stock awards to employees and non-employee directors under the Methode Electronics, Inc. 2022 Omnibus Incentive Plan (“2022 Plan”), the Methode Electronics, Inc. 2014 Omnibus Incentive Plan (“2014 Plan”), the Methode Electronics, Inc. 2010 Stock Plan (“2010 Plan”) and the Methode Electronics, Inc. 2004 Stock Plan (“2004 Plan”). The Company’s stockholders approved the 2022 Plan on September 14, 2022. The Company can no longer make grants under the 2014 Plan, 2010 Plan and 2004 Plan. Subject to adjustment as provided in the 2022 Plan and the 2022 Plan’s share counting provisions, the number of shares of the Company's common stock that will be available for all awards under the 2022 Plan is 5,550,000 , less one share for every one share of common stock subject to an option or SAR award granted after April 30, 2022 under the 2014 Plan and 2.28 shares for every one share that was subject to an award other than an option or SAR granted after April 30, 2022 under the 2014 Plan. As of April 29, 2023 , there were 5,189,956 shares available for award under the 2022 Plan. Stock-based compensation expense All stock-based payments to employees and directors are recognized in selling and administrative expenses on the consolidated statements of income. Awards subject to graded vesting are recognized using the accelerated recognition method over the requisite service period. The table below summarizes the stock-based compensation expense related to the equity awards: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 RSUs $ 9.9 $ 10.3 $ 5.9 Deferred non-employee director awards 1.0 0.8 — Non-employee director awards 0.6 0.7 0.9 Total stock-based compensation expense $ 11.5 $ 11.8 $ 6.8 Restricted stock awards and performance units As of April 29, 2023 , the Company had 933,674 RSAs outstanding which will be earned based on the achievement of an EBITDA measure for fiscal 2025. The RSAs will vest ranging from 0 % (for performance below threshold) to 100 % (target performance) based on the achievement of the EBITDA performance measure and continued employment. In addition, if the target performance is exceeded, up to an additional 466,837 PUs can be earned that will be settled in cash. At the discretion of the Compensation Committee, the PUs may be settled in shares of common stock The fair value of the RSAs was based on the closing stock price on the date of grant and the RSAs earn dividend equivalents during the vesting period, which are forfeitable if the RSAs do not vest. Compensation expense for the RSAs is recognized when it is probable the minimum threshold performance criteria will be achieved. Compensation expense for the PUs is recognized when it is probable that the target performance criteria will be exceeded. The Company assesses the probability of vesting at each balance sheet date and adjusts compensation costs based on the probability assessment. The cash-settled PUs represent a non-equity unit with a conversion value equal to the fair market value of a share of the Company’s common stock on the vesting date. The PUs are classified as liability awards due to the cash settlement feature and are re-measured at each balance sheet date. In accordance with ASC 718, based on projections of the Company’s current business portfolio, no compensation expense has been recognized for the RSAs or PUs to date, as the performance conditions are not probable of being met. Unrecognized stock-based compensation expense for RSAs at target level of performance is $ 26.8 million as of April 29, 2023 . The following table summarizes the RSA activity: Restricted Weighted Non-vested at May 2, 2020 — $ — Awarded 928,412 $ 28.50 Vested — $ — Forfeited — $ — Non-vested at May 1, 2021 928,412 $ 28.50 Awarded — $ — Vested — $ — Forfeited — $ — Non-vested at April 30, 2022 928,412 $ 28.50 Awarded 21,262 $ 38.41 Vested — $ — Forfeited ( 16,000 ) $ 28.28 Non-vested at April 29, 2023 933,674 $ 28.73 Restricted stock units RSUs granted vest over a pre-determined period of time, up to five years from the date of grant. The fair value of the RSUs granted are based on the closing stock price on the date of grant and earn dividend equivalents during the vesting periods, which are forfeitable if the RSUs don’t vest. The following table summarizes RSU activity: Restricted Weighted Non-vested at May 2, 2020 3,100 $ 41.20 Awarded 949,712 $ 28.49 Vested ( 25,201 ) $ 29.87 Forfeited — $ — Non-vested at May 1, 2021 927,611 $ 28.50 Awarded 46,300 $ 48.41 Vested ( 37,520 ) $ 36.55 Forfeited — $ — Non-vested at April 30, 2022 936,391 $ 29.16 Awarded 127,277 $ 40.11 Vested ( 307,333 ) $ 29.88 Forfeited ( 28,868 ) $ 33.53 Non-vested at April 29, 2023 727,467 $ 30.60 As of April 29, 2023 , there were 264,133 RSUs that were vested for which shares were issued in the first quarter of fiscal 2024. As of April 29, 2023 , unrecognized share-based compensation expense for RSUs was $ 7.4 million which will be recognized over a weighted-average amortization period of 1.9 years. Non-employee director stock awards The Company grants stock awards to its non-employee directors as a component of their compensation. The stock awards vest immediately upon grant. Non-employee directors may elect to defer receipt of their shares under the Company’s non-qualified deferred compensation plan. The following table summarizes awards granted to non-employee directors: Non-employee director awards Deferred non-employee director awards Total Weighted Outstanding at May 2, 2020 — — — $ — Awarded 33,000 — 33,000 $ 28.76 Issued ( 33,000 ) — ( 33,000 ) $ 28.76 Outstanding at May 1, 2021 — — — $ — Awarded 14,775 17,956 32,731 $ 47.37 Issued ( 14,775 ) — ( 14,775 ) $ 47.39 Outstanding at April 30, 2022 — 17,956 17,956 $ 47.35 Awarded 15,540 27,794 43,334 $ 36.13 Issued ( 15,540 ) — ( 15,540 ) $ 36.04 Outstanding at April 29, 2023 — 45,750 45,750 $ 40.56 Stock options The following table summarizes stock option activity: Stock Weighted average exercise price Weighted- Aggregate Outstanding and exercisable at May 2, 2020 106,668 $ 35.76 4.0 $ 0.1 Exercised ( 24,500 ) $ 31.61 Forfeited ( 9,168 ) $ 37.01 Outstanding and exercisable at May 1, 2021 73,000 $ 37.01 3.2 $ 0.6 Exercised ( 13,000 ) $ 37.01 Forfeited — $ — Outstanding and exercisable at April 30, 2022 60,000 $ 37.01 2.2 $ 0.5 Exercised ( 40,000 ) $ 37.01 Forfeited — $ — Outstanding and exercisable at April 29, 2023 20,000 $ 37.01 1.2 $ 0.1 The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on that date. The total intrinsic value of options exercised in fiscal 2023 was $ 0.4 million. Deferred RSUs Under the 2014 Plan and 2010 Plan, RSUs that have vested for certain executives, including the Company’s CEO, will not be delivered in common stock until after the executive terminates employment from the Company or upon a change of control. As of April 29, 2023 , shares to be delivered to these executives were 202,000 shares under the 2014 Plan and 180,000 shares under the 2010 Plan. Under the 2004 Plan, 225,000 shares of common stock subject to performance based RSAs granted to the Company’s CEO in fiscal 2006 and 2007 were converted to RSUs. The shares of common 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 the Company’s 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. As of April 29, 2023 , 29,945 shares have been delivered in connection with these RSUs with a remaining balance to be delivered of 195,055 shares. The RSUs are not entitled to voting rights or dividends, however a bonus in lieu of dividends is paid. The vested deferred RSUs are considered outstanding for earnings per share calculations. |
Income Per Share
Income Per Share | 12 Months Ended |
Apr. 29, 2023 | |
Earnings Per Share [Abstract] | |
Income Per Share | Note 14. Income Per Share Basic income per share attributable to Methode is calculated by dividing net income attributable to Methode, by the number of weighted average common shares outstanding for the applicable period. The weighted average number of common shares used in the diluted income per share calculation is determined using the treasury stock method which includes 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, 2023 April 30, 2022 May 1, 2021 Numerator: Net income attributable to Methode (in millions) $ 77.1 $ 102.2 $ 122.3 Denominator: Denominator for basic income per share - weighted average shares outstanding and vested/unissued RSUs 36,016,686 37,234,086 38,038,615 Dilutive potential common shares - stock options, RSAs and RSUs 758,749 583,360 267,671 Denominator for diluted income per share 36,775,435 37,817,446 38,306,286 Basic and diluted income per share attributable to Methode: Basic income per share $ 2.14 $ 2.74 $ 3.22 Diluted income per share $ 2.10 $ 2.70 $ 3.19 Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 938,281 928,412 738,167 |
Segment Information and Geograp
Segment Information and Geographic Area Information | 12 Months Ended |
Apr. 29, 2023 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Area Information | Note 15. Segment Information and Geographic Area Information 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 is the Company’s President and Chief Executive Officer (“CEO”). The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile OEMs, either directly or through their tiered suppliers. The Company's products include integrated center consoles, hidden switches, ergonomic switches, transmission lead-frames, complex insert molded solutions, LED-based lighting solutions, and sensors which incorporate magneto-elastic sensing, eddy current or other sensing technologies that monitor the operation or status of a component or system. The Industrial segment manufactures external lighting solutions, including driving, work, and signal lights, industrial safety radio remote controls, braided flexible cables, current-carrying laminated and powder-coated busbars, high-voltage high current connector and contracts, custom power-product assemblies, such as its PowerRail® solution, high-current low-voltage flexible power cabling systems that are used in various markets and applications, including aerospace, cloud computing, commercial vehicles, construction equipment, industrial, military, power conversion and transportation. The Interface segment provides a variety of copper-based transceivers and related accessories for the cloud computing hardware equipment and telecommunications broadband equipment markets, user interface solutions for the appliance, commercial food service, and point-of-sale equipment markets, and fluid-level sensors for the marine/recreational vehicle and sump pump markets. The Medical segment is made up of the Company’s medical device business, Dabir Surfaces, with its surface support technology aimed at pressure injury prevention. Methode has developed the technology for use by patients who are immobilized or otherwise at risk for pressure injuries, including patients undergoing long-duration surgical procedures. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1, “Description of Business and Summary of Significant Accounting Policies.” The CODM allocates resources to and evaluates the performance of each operating segments based on operating income. Transfers between segments are recorded using internal transfer prices set by the Company. The tables below present information about the Company’s reportable segments. Fiscal Year Ended April 29, 2023 (in millions) Automotive Industrial Interface Medical Eliminations/ Consolidated Net sales $ 742.1 $ 403.2 $ 55.1 $ 3.6 $ ( 24.4 ) $ 1,179.6 Transfers between segments ( 5.9 ) ( 18.3 ) ( 0.2 ) — 24.4 — Net sales to unaffiliated customers $ 736.2 $ 384.9 $ 54.9 $ 3.6 $ — $ 1,179.6 Income (loss) from operations $ 67.0 $ 93.1 $ 5.5 $ ( 6.1 ) $ ( 69.1 ) $ 90.4 Interest expense, net 2.7 Other income, net ( 2.4 ) Pre-tax income $ 90.1 Purchases of property, plant and equipment $ 31.8 $ 7.7 $ 0.1 $ 0.1 $ 2.3 $ 42.0 Depreciation and amortization $ 31.7 $ 14.5 $ 0.2 $ 1.0 $ 2.1 $ 49.5 Identifiable assets $ 700.2 $ 672.3 $ 127.2 $ 6.2 $ 73.2 $ 1,579.1 Fiscal Year Ended April 30, 2022 (in millions) Automotive Industrial Interface Medical Eliminations/ Consolidated Net sales $ 786.3 $ 325.7 $ 59.8 $ 4.2 $ ( 12.4 ) $ 1,163.6 Transfers between segments ( 4.8 ) ( 7.6 ) — — 12.4 — Net sales to unaffiliated customers $ 781.5 $ 318.1 $ 59.8 $ 4.2 $ — $ 1,163.6 Income (loss) from operations $ 92.6 $ 67.1 $ 9.9 $ ( 5.5 ) $ ( 52.4 ) $ 111.7 Interest expense, net 3.5 Other income, net ( 10.3 ) Pre-tax income $ 118.5 Purchases of property, plant and equipment $ 27.4 $ 2.4 $ — $ 0.2 $ 8.0 $ 38.0 Depreciation and amortization $ 34.4 $ 14.9 $ 0.2 $ 1.0 $ 2.1 $ 52.6 Identifiable assets $ 689.8 $ 455.3 $ 108.1 $ 7.9 $ 128.0 $ 1,389.1 Fiscal Year Ended May 1, 2021 (in millions) Automotive Industrial Interface Medical Eliminations/ Consolidated Net sales $ 761.8 $ 273.2 $ 61.6 $ 2.8 $ ( 11.4 ) $ 1,088.0 Transfers between segments ( 6.1 ) ( 5.3 ) — — 11.4 — Net sales to unaffiliated customers $ 755.7 $ 267.9 $ 61.6 $ 2.8 $ — $ 1,088.0 Income (loss) from operations $ 107.6 $ 64.3 $ 8.9 $ ( 4.6 ) $ ( 48.3 ) $ 127.9 Interest expense, net 5.2 Other income, net ( 12.2 ) Pre-tax income $ 134.9 Purchases of property, plant and equipment $ 22.5 $ 2.1 $ — $ — $ 0.3 $ 24.9 Depreciation and amortization $ 34.3 $ 14.3 $ 0.3 $ 0.9 $ 1.7 $ 51.5 Identifiable assets $ 739.5 $ 461.6 $ 90.4 $ 7.6 $ 167.9 $ 1,467.0 The following tables set forth net sales and tangible long-lived assets by geographic area where the Company operates. Tangible long-lived assets include property, plant and equipment and operating lease assets. Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Net sales: U.S. $ 472.6 $ 547.4 $ 510.8 China 239.9 224.3 193.7 Malta 201.2 178.4 173.5 Mexico 78.8 76.2 87.4 Egypt 72.6 67.2 58.4 Other 114.5 70.1 64.2 Total net sales $ 1,179.6 $ 1,163.6 $ 1,088.0 (in millions) April 29, 2023 April 30, 2022 Tangible long-lived assets, net: U.S. $ 75.9 $ 74.2 Malta 42.1 38.6 Egypt 38.7 22.8 China 27.5 30.1 Mexico 21.7 21.0 Belgium 21.0 20.2 Other 21.8 10.1 Total tangible long-lived assets, net $ 248.7 $ 217.0 |
Leases
Leases | 12 Months Ended |
Apr. 29, 2023 | |
Leases [Abstract] | |
Leases | Note 16. Leases The Company leases real estate, automobiles and certain equipment under both operating and finance leases. The Company does not have any significant arrangements where it is the lessor. The majority of the Company's global lease portfolio represents leases of real estate, such as manufacturing facilities, warehouses and buildings. As of April 29, 2023 , the Company's leases have remaining lease terms of up to 23.5 years, some of which include optional renewals or terminations, which are considered in the Company’s assessments when such options are reasonably certain to be exercised. Any variable payments related to the lease will be recorded as lease expense when and as incurred. The Company’s lease payments are largely fixed. As of April 29, 2023, the operating leases that the Company has signed but have not yet commenced are immaterial. In addition to the operating lease assets presented on the consolidated balance sheets, assets under finance leases of $ 0.6 million and $ 0.7 million are included in property, plant and equipment, net on the consolidated balance sheets as of April 29, 2023 and April 30, 2022 , respectively. Finance lease obligations were $ 0.6 million and $ 0.8 million as of April 29, 2023 and April 30, 2022 , respectively, and are split between other accrued expenses for the short-term portion and other long-term liabilities for the long-term portion on the consolidated balance sheets. The Company had an immaterial amount of finance lease expense in the years ended April 29, 2023 and April 30, 2022. The components of lease expense were as follows: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Lease cost: Operating lease cost $ 9.5 $ 8.9 $ 8.4 Variable lease cost 0.7 1.6 1.6 Total lease cost $ 10.2 $ 10.5 $ 10.0 Supplemental cash flow and other information related to operating leases was as follows: Fiscal Year Ended April 29, 2023 April 30, 2022 May 1, 2021 Operating cash flows: Cash paid related to operating lease obligations, including lease termination payment (in millions) $ 8.8 $ 10.8 $ 9.3 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations (in millions) $ 11.7 $ 7.7 $ 5.7 Weighted-average remaining lease term (years) 5.1 5.3 5.0 Weighted-average discount rate 5.2 % 4.4 % 4.6 % Maturities of operating lease liabilities as of April 29, 2023, are shown below: (in millions) Fiscal Year: 2024 $ 7.8 2025 6.0 2026 5.2 2027 5.0 2028 3.3 Thereafter 5.8 Total lease payments 33.1 Less: imputed interest ( 4.5 ) Present value of lease liabilities $ 28.6 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Apr. 29, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION A ND QUALIFYING ACCOUNTS METHODE ELECTRONICS, INC. AND SUBSIDIARIES (in millions) Description Balance at (Benefits)/ Deductions Other Balance at Fiscal Year Ended April 29, 2023 Allowance for uncollectible accounts $ 1.0 $ 0.3 $ — $ — $ 1.3 Deferred tax valuation allowance $ 6.8 $ — $ — $ — $ 6.8 Fiscal Year Ended April 30, 2022 Allowance for uncollectible accounts $ 0.7 $ 0.3 $ — $ — $ 1.0 Deferred tax valuation allowance $ 9.3 $ ( 2.5 ) $ — $ — $ 6.8 Fiscal Year Ended May 1, 2021 Allowance for uncollectible accounts $ 0.7 $ — $ — $ — $ 0.7 Deferred tax valuation allowance $ 7.5 $ 1.8 $ — $ — $ 9.3 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of presentation. The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts and operations of the Company and its wholly and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Impact of global supply chain disruptions, geopolitical conditions and the COVID-19 pandemic. Fiscal 2023 was marked by global economic uncertainty, supply chain interruptions, which have been impacted by inflationary cost pressures, ongoing recovery from the COVID-19 pandemic, and geopolitical instability due to the military conflict between Russia and Ukraine. The Company experienced increased inflationary cost pressures in fiscal 2023 resulting from global supply chain disruptions impacting the availability and price of materials (primarily semiconductors) and logistics costs. Geopolitical instability exacerbated inflationary cost pressures, which the Company expects to continue for the foreseeable future. The Company has not experienced significant direct impacts from the Russia-Ukraine conflict, as it does not have operations nor sales in either Russia or Ukraine. While much of the Company's customer demand and shipments have recovered from the impact of the COVID-19 pandemic, the Company cannot predict the overall extent of the impact of any resurgence of COVID-19, its variants or any future pandemic on its operating results, cash flows, liquidity, and financial condition, which will depend on certain developments, including the duration and spread of such outbreak and its impact on the Company's customers, employees, suppliers, and other partners. |
Use of Estimates | Use of estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Due to impacts from the worldwide semiconductor shortage, geopolitical conflicts (including the Russian invasion of Ukraine) and the COVID-19 pandemic, there has been and will continue to be uncertainty and disruption in the global economy and financial markets. The Company has made estimates and assumptions taking into consideration certain possible impacts due to the COVID-19 pandemic and the Russian invasion of Ukraine. These estimates may change, as new events occur, and additional information is obtained. Actual results may differ from previously estimated amounts, and such differences may be material to the consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they occur. |
Cash and Cash Equivalents | Cash and cash equivalents. Cash and cash equivalents consist of cash and highly liquid investments with a maturity of three months or less. Highly liquid investments include money market funds which are classified within Level 1 of the fair value hierarchy. As of April 29, 2023 and April 30, 2022, the Company had a balance of $ 1.3 million and $ 40.0 million, respectively, in money market accounts. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable and allowance for doubtful accounts. Accounts receivable are customer obligations due under normal trade terms and are presented net of an allowance for doubtful accounts. The Company establishes an allowance for doubtful accounts based on the current expected credit loss impairment model. The Company applies a historical loss rate based on historic write-offs to aging categories. The historical loss rate is adjusted for current conditions and reasonable and supportable forecasts of future losses as necessary. The Company may also record a specific reserve for individual accounts when it becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer’s operating results or financial position. The allowance for doubtful accounts balance was $ 1.3 million and $ 1.0 million as of April 29, 2023 and April 30, 2022 , respectively. |
Concentration of Credit Risk | Concentration of credit risk. Financial assets that subject the Company to concentration of credit risk consist primarily of cash equivalents, derivative contracts, and accounts receivable. The Company’s counterparties for cash equivalents and derivative contracts are banks and financial institutions that meet the Company’s requirement of high credit standing. However, the balances with U.S. financial institutions often exceed the amount of insurance provided on such accounts by the Federal Deposit Insurance Corporation. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers. The Company generally does not require collateral, but rather performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customers’ current credit worthiness. The following customers in the Automotive segment accounted for more than 10% of net sales: Fiscal Year Ended April 29, 2023 April 30, 2022 May 1, 2021 Customer A 18.7 % 23.3 % 27.5 % Customer B 10.8 % * * * less than 10% At April 29, 2023 , no customer accounted for greater than 10 % of the Company's accounts receivable. At April 30, 2022 , Customer A accounted for approximately 15.4 % of the Company's accounts receivable. |
Inventories | Inventories. Inventories are stated at the lower-of-cost or net realizable value. Cost is determined using the first-in, first-out method. Finished products and work-in-process inventories include direct material costs and direct and indirect manufacturing costs. The Company records reserves for inventory that may be obsolete or in excess of current and future market demand. See Note 5, “Inventory” for additional information. |
Property, Plant and Equipment | Property, plant and equipment. Property, plant and equipment are recorded at cost less accumulated depreciation, with the exception of assets acquired through acquisitions, which are initially recorded at fair value. Equipment acquired under a finance lease is recorded at the present value of the future minimum lease payments. Depreciation is computed using the straight-line method over the estimated useful lives of 5 to 40 years for buildings and building improvements and 3 to 15 years for machinery and equipment. Costs of additions and major improvements are capitalized, whereas maintenance and repairs that do not improve or extend the life of the asset are charged to expense as incurred. See Note 6, “Property, Plant and Equipment” for additional information. |
Business Combinations | Business combinations. The Company accounts for business combinations using the acquisition method. The purchase price of an acquired business is allocated to its identifiable assets and liabilities based on estimated fair values. Determining the fair values of assets acquired and liabilities assumed requires management’s judgment, the utilization of independent appraisal firms and often involves the use of significant estimates and assumptions with respect to the timing and amount of future cash flows, market rate assumptions, actuarial assumptions, and appropriate discount rates, among other items. Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. Identifiable intangible assets with finite lives are amortized over their useful lives. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. See Note 3, “Acquisition” for additional information. |
Goodwill | Goodwill. Goodwill is not amortized but is tested for impairment on at least an annual basis. Goodwill is evaluated at the reporting unit level by comparing the fair value of the reporting unit with its carrying amount including goodwill. An impairment of goodwill exists if the carrying amount of the reporting unit exceeds its fair value. The impairment loss is the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to that reporting unit. In performing the goodwill impairment test, the Company may first assess qualitative factors to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. See Note 7, “Goodwill and Other Intangible Assets” for additional information regarding the Company’s goodwill impairment assessment for fiscal 2023 . |
Amortizable Intangible Assets | Amortizable intangible assets . Amortizable intangible assets consist primarily of fair values assigned to customer relationships and trade names. Amortization is recognized over the useful lives of the intangible assets, generally up to 20 years , using the straight-line method. See Note 7, “Goodwill and Other Intangible Assets” for additional information. |
Impairment of Long-Lived Assets | Impairment of long-lived assets. The Company evaluates whether events and circumstances have occurred which indicate that the remaining estimated useful lives of its intangible assets, excluding goodwill, and other long-lived assets, may warrant revision or that the remaining balance of such assets may not be recoverable. If impairment indicators exist, the Company performs an impairment analysis by comparing the undiscounted cash flows resulting from the use of the asset group to the carrying amount. If the carrying amount exceeds the undiscounted cash flows, an impairment loss is recognized based on the excess of the asset’s carrying amount over its fair value. |
Pre-Production Costs Related to Long-Term Supply Arrangements | Pre-production costs related to long-term supply arrangements. The Company incurs pre-production tooling costs related to products produced for its customers under long-term supply arrangements. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred, unless the costs are reimbursable by the customer. As of April 29, 2023 and April 30, 2022, the Company had $ 36.1 million and $ 27.2 million, 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. Costs for molds, dies and other tools used in products produced for its customers under long-term supply arrangements for which the Company has title are capitalized in property, plant and equipment and amortized over the shorter of the life of the arrangement or over the estimated useful life of the assets. Company owned tooling was $ 12.2 million and $ 14.6 million as of April 29, 2023 and April 30, 2022 , respectively. |
Leases | Leases. The Company determines if an arrangement is a lease at inception. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company estimates the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company utilizes certain practical expedients, including the election not to reassess its prior conclusions about lease identification, lease classification and initial direct costs, as well as the election not to separate lease and non-lease components for arrangements where the Company is a lessee. The Company elects to recognize a right-of-use asset and related lease liability for leases with a lease term of 12 months or less for all classes of underlying assets. Lease expense is recognized on a straight-line basis over the lease term. See Note 16, “Leases” for additional information. |
Derivative Financial Instruments | Derivative financial instruments. The Company uses derivative financial instruments, including swaps and forward contracts, to manage exposures to changes in currency exchange rates and interest rates. The Company does not enter into or hold derivative financial instruments for trading or speculative purposes. See Note 8, “Derivative Financial Instruments and Hedging Activities” for additional information. |
Redeemable Noncontrolling Interest | Redeemable noncontrolling interest. The Company reports noncontrolling interests in the mezzanine (“temporary equity”) section, between liabilities and equity, of the consolidated balance sheets, to the extent that such noncontrolling interests have redemption features that are not solely within the control of the Company. The carrying amount of the redeemable noncontrolling interest, initially valued at fair value as part of acquisition accounting, is adjusted each reporting period to equal the greater of the (i) redemption value or (ii) carrying value of the noncontrolling interest, adjusted each reporting period for income or loss attributable to the noncontrolling interest and any distributions made to date. Refer to Note 3, “Acquisition” for additional information. |
Income Taxes | Income taxes. Income taxes are calculated using the asset and liability method, under which deferred tax assets and liabilities are determined based on temporary differences between the financial statement amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining whether an uncertain tax position exists, the Company determines, based solely on its technical merits, whether the tax position is more likely than not to be sustained upon examination, and if so, a tax benefit is measured on a cumulative probability basis that is more likely than not to be realized upon the ultimate settlement. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. See Note 11, “Income Taxes” for additional information. |
Revenue Recognition | Revenue recognition. Revenue is recognized in accordance with Accounting Standards Codification (“ASC”) 606, “ Revenue from Contracts with Customers. ” Revenue is measured based on consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. From time to time, customers may negotiate annual price downs. Management has evaluated these price downs and determined that in some instances, these price downs give rise to a material right. In instances that a material right exists, a portion of the transaction price is allocated to the material right and recognized over the life of the contract. Across all products, the amount of revenue recognized corresponds to the related purchase order and is adjusted for variable consideration (such as discounts). Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. The Company’s performance obligations are typically short-term in nature. As a result, the Company has elected the practical expedient that provides an exemption from the disclosure requirements regarding information about remaining performance obligations on contracts that have original expected durations of one year or less. See Note 2, “Revenue” for further information. |
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. |
Restructuring Expense | Restructuring expense. Restructuring expense includes costs directly associated with exit or disposal activities. Such costs include employee severance and termination benefits, asset impairment charges, contract termination fees, and other exit or disposal costs. Employee termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable. Asset impairment charges relate to the impairment of ROU lease assets and equipment. Contract termination costs are recorded when notification of termination is given to the other party. See Note 4, “Restructuring” for additional information. |
Foreign Currency Translation | Foreign currency translation. The functional currencies of the majority of the Company’s foreign subsidiaries are their local currencies. The results of operations of these foreign subsidiaries are translated into U.S. dollars using average monthly rates, while the assets and liabilities are translated using period-end exchange rates. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”). Gains and losses arising from transactions denominated in a currency other than the functional currency, except certain long-term intercompany transactions, are included in the consolidated statements of income in other income, net. |
Government Incentives and Grants | Government incentives and grants. From time to time, the Company receives government grants in the form of cash grants and other incentives in return for past or future compliance with certain conditions. The Company accounts for funds received from government grants by analogy to International Accounting Standards 20, “ Accounting for Government Grants and Disclosure of Government Assistance. ” Accordingly, the Company recognizes government grants in the consolidated statement of income when there is reasonable assurance that it will comply with the conditions associated with the grant and the grants will be received. Government grants are recorded in the consolidated financial statements in accordance with their purpose as a reduction of expenses, a reduction of asset costs, or other income. Incentives related to specific operating activities are offset against the related expense in the period the expense is incurred. The Company recorded $ 9.7 million of government grants as other income, net in fiscal 2023 . The Company recorded $ 0.6 million of government grants as a reduction of cost of goods sold and selling and administrative expense in fiscal 2023. Some government grants are paid over a period of years and are recorded at amortized cost on the Company’s consolidated balance sheets. As of April 29, 2023 and April 30, 2022 , grant receivables outstanding were $ 17.8 million and $ 12.7 million, respectively. The short-term and long-term portion of grant receivables are recorded on the consolidated balance sheets within accounts receivable, net and other long-term assets, respectively. |
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 cost of goods sold on the consolidated statements of income. Research and development costs were $ 35.0 million, $ 35.7 million and $ 37.1 million for fiscal 2023, fiscal 2022 and fiscal 2021 , respectively. |
Stock-Based Compensation | Stock-based compensation. The Company recognizes compensation expense for the cost of awards of equity compensation using a fair value method in accordance with ASC 718, “ Stock-based Compensation .” See Note 13, “Shareholders’ Equity” for additional information. |
Product Warranty | Product warranty. The Company’s warranties are standard, assurance-type warranties only. The Company does not offer any additional service or extended term warranties to its customers. As such, warranty obligations are accrued when its probable that a liability has been incurred and the related amounts are reasonably estimable. |
Fair Value | Fair value measurement. ASC 820, “ Fair Value Measurement ,” provides a framework for measuring fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy under ASC 820 requires an entity to maximize the use of observable inputs. The Company groups assets and liabilities at fair value in three levels as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities; • Level 2 - Observable inputs for similar assets or liabilities adjusted for terms specific to the asset or liability; • Level 3 - Unobservable inputs in which little or no market activity exists, requiring the Company to develop its own assumptions that market participants would use to value the asset or liability. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes to the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The carrying values of the Company’s 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. |
Recently Issued/Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-10, “ Government Assistance (Topic 832) ,” which requires annual disclosures when an entity has received government assistance. This guidance is intended to improve the transparency of government assistance received by requiring disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on the registrant’s financial statements. The Company adopted this standard effective April 29, 2023 on a prospective basis. See related policy discussion above. New Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU No. 2021-08, “ Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ,” which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured at the acquisition date in accordance with ASC 606, as if the acquirer had originated the contracts. Prior to the issuance of this ASU, contract assets and liabilities were recognized at fair value on the acquisition date. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within that fiscal year, with early adoption permitted, and should be applied on a prospective basis. This ASU will be effective for the Company in the first quarter of fiscal 2024. The Company believes the adoption of this ASU will not have a material impact on its consolidated financial statements. |
Income Per Share | Basic income per share attributable to Methode is calculated by dividing net income attributable to Methode, by the number of weighted average common shares outstanding for the applicable period. The weighted average number of common shares used in the diluted income per share calculation is determined using the treasury stock method which includes the effect of all potential dilutive common shares outstanding during the period. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Customer Concentration | The following customers in the Automotive segment accounted for more than 10% of net sales: Fiscal Year Ended April 29, 2023 April 30, 2022 May 1, 2021 Customer A 18.7 % 23.3 % 27.5 % Customer B 10.8 % * * * less than 10% |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenue Information | The following table represents a disaggregation of revenue from contracts with customers by segment and geographical location. Net sales are attributed to regions based on the location of production. Though revenue recognition patterns and contracts are generally consistent, the amount, timing and uncertainty of revenue and cash flows may vary in each reportable segment due to geographic and economic factors. Fiscal Year Ended April 29, 2023 (in millions) Automotive Industrial Interface Medical Total Geographic net sales: North America $ 349.0 $ 160.5 $ 54.7 $ 3.6 $ 567.8 Europe, the Middle East & Africa ("EMEA") 231.2 139.9 — — 371.1 Asia 156.0 84.5 0.2 — 240.7 Total net sales $ 736.2 $ 384.9 $ 54.9 $ 3.6 $ 1,179.6 Timing of revenue recognition: Goods transferred at a point in time $ 717.4 $ 384.9 $ 54.9 $ 3.6 $ 1,160.8 Goods transferred over time 18.8 — — — 18.8 Total net sales $ 736.2 $ 384.9 $ 54.9 $ 3.6 $ 1,179.6 Fiscal Year Ended April 30, 2022 (in millions) Automotive Industrial Interface Medical Total Geographic net sales: North America $ 400.9 $ 177.2 $ 59.3 $ 4.1 $ 641.5 EMEA 216.5 80.8 — — 297.3 Asia 164.1 60.1 0.5 0.1 224.8 Total net sales $ 781.5 $ 318.1 $ 59.8 $ 4.2 $ 1,163.6 Timing of revenue recognition: Goods transferred at a point in time $ 758.4 $ 318.1 $ 59.8 $ 4.2 $ 1,140.5 Goods transferred over time 23.1 — — — 23.1 Total net sales $ 781.5 $ 318.1 $ 59.8 $ 4.2 $ 1,163.6 Fiscal Year Ended May 1, 2021 (in millions) Automotive Industrial Interface Medical Total Geographic net sales: North America $ 406.4 $ 142.9 $ 61.0 $ 2.7 $ 613.0 EMEA 212.3 68.2 — — 280.5 Asia 137.0 56.8 0.6 0.1 194.5 Total net sales $ 755.7 $ 267.9 $ 61.6 $ 2.8 $ 1,088.0 Timing of revenue recognition: Goods transferred at a point in time $ 722.1 $ 267.9 $ 61.6 $ 2.8 $ 1,054.4 Goods transferred over time 33.6 — — — 33.6 Total net sales $ 755.7 $ 267.9 $ 61.6 $ 2.8 $ 1,088.0 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Business Combinations [Abstract] | |
Provisional Estimated Acquisition-date Fair Values of Major Classes of Assets Acquired and Liabilities Assumed | The provisional estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase price, were as follows: (in millions) Cash and cash equivalents $ 19.6 Accounts receivable 17.1 Inventories 9.6 Property, plant and equipment 12.9 Identifiable intangible assets 68.1 Accounts payable ( 10.8 ) Long-term debt ( 24.4 ) Other assets and liabilities, net ( 2.8 ) Deferred tax liabilities ( 13.4 ) Total identifiable net assets acquired 75.9 Goodwill 69.6 Total fair value of net assets acquired 145.5 Less: redeemable noncontrolling interest ( 11.3 ) Total purchase price $ 134.2 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Components of Restructuring Costs | Components of restructuring costs were as follows: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Employee termination benefits $ 0.3 $ 0.4 $ 7.1 Asset impairment charges 0.7 3.1 0.6 Contract termination charges — 0.1 0.5 Total restructuring costs $ 1.0 $ 3.6 $ 8.2 |
Schedule Of Restructuring Costs By Reportable Segment | The table below presents restructuring costs by reportable segment: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Automotive $ 0.4 $ 0.2 $ 6.2 Industrial 0.5 3.4 1.0 Interface — — 0.7 Medical — — — Eliminations/Corporate 0.1 — 0.3 Total restructuring costs $ 1.0 $ 3.6 $ 8.2 Recognized in: Cost of products sold $ 0.5 $ 1.3 $ 4.8 Selling and administrative expenses 0.5 2.3 3.4 $ 1.0 $ 3.6 $ 8.2 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | A summary of inventories is shown below: (in millions) April 29, 2023 April 30, 2022 Finished products $ 36.6 $ 31.8 Work in process 14.4 12.9 Raw materials 108.7 113.8 Total inventories $ 159.7 $ 158.5 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | A summary of property, plant and equipment is shown below: (in millions) April 29, 2023 April 30, 2022 Land $ 3.0 $ 3.3 Buildings and building improvements 98.8 89.2 Machinery and equipment 414.3 407.5 Construction in progress 40.6 21.5 Total property, plant and equipment, gross 556.7 521.5 Less: accumulated depreciation ( 336.4 ) ( 324.5 ) Property, plant and equipment, net $ 220.3 $ 197.0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the Changes in Goodwill by Reportable Segment | A summary of the changes in goodwill by reportable segment is as follows: (in millions) Automotive Industrial Total Balance as of May 2, 2020 $ 106.2 $ 125.4 $ 231.6 Foreign currency translation 0.5 3.5 4.0 Balance as of May 1, 2021 106.7 128.9 235.6 Foreign currency translation ( 0.8 ) ( 1.8 ) ( 2.6 ) Balance as of April 30, 2022 105.9 127.1 233.0 Acquisitions — 69.6 69.6 Foreign currency translation 0.3 ( 1.0 ) ( 0.7 ) Balance as of April 29, 2023 $ 106.2 $ 195.7 $ 301.9 |
Summary of Goodwill by Reporting Unit | A summary of goodwill by reporting unit is as follows: (in millions) April 29, 2023 April 30, 2022 Grakon Industrial $ 124.5 $ 125.5 North American Automotive 99.8 99.8 Nordic Lights 69.6 — European Automotive 6.4 6.1 Other 1.6 1.6 Total $ 301.9 $ 233.0 |
Schedule of Other Intangible Assets, Net | Details of identifiable intangible assets are shown below: As of April 29, 2023 (in millions) Gross Accumulated Net Weighted average remaining useful life (years) Amortized intangible assets: Customer relationships and agreements $ 286.7 $ ( 68.2 ) $ 218.5 14.8 Trade names, patents and technology licenses 71.6 ( 35.2 ) 36.4 6.0 Total amortized intangible assets 358.3 ( 103.4 ) 254.9 Unamortized trade name 1.8 — 1.8 Total other intangible assets $ 360.1 $ ( 103.4 ) $ 256.7 As of April 30, 2022 (in millions) Gross Accumulated Net Weighted average remaining useful life (years) Amortized intangible assets: Customer relationships and agreements $ 232.3 $ ( 55.1 ) $ 177.2 14.7 Trade names, patents and technology licenses 58.0 ( 29.3 ) 28.7 6.2 Total amortized intangible assets 290.3 ( 84.4 ) 205.9 Unamortized trade name 1.8 — 1.8 Total other intangible assets $ 292.1 $ ( 84.4 ) $ 207.7 |
Schedule of Estimated Aggregate Amortization Expense of Intangible Assets | Based on the current amount of intangible assets subject to amortization, the estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter is as follows: (in millions) Fiscal Year: 2024 $ 23.0 2025 22.4 2026 21.6 2027 20.9 2028 18.6 Thereafter 148.4 Total $ 254.9 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments Classified as Level 2 Within Fair Value Recorded in the Balance Sheet | The fair value of derivative instruments are classified as Level 2 within the fair value hierarchy and are recorded in the balance sheets as follows: Asset/(Liability) (in millions) Financial Statement Caption April 29, 2023 April 30, 2022 Derivatives designated as hedging instruments: Net investment hedges Other accrued liabilities $ ( 0.5 ) $ — Net investment hedges Other long-term assets $ — $ 1.9 Interest rate swaps Prepaid expenses and other current assets $ 1.6 $ — Interest rate swaps Other long-term assets $ — $ 3.0 Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepaid expenses and other current assets $ 0.1 $ — Foreign currency forward contracts Other accrued liabilities $ ( 0.1 ) $ ( 0.2 ) |
Schedule of Derivative Instruments Effect on Other Comprehensive Income (Loss) | Gross amounts recorded in other comprehensive income (loss) were as follows: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Net investment hedges $ ( 2.4 ) $ 8.7 $ ( 5.5 ) Interest rate swaps ( 1.4 ) 3.2 ( 0.2 ) Total $ ( 3.8 ) $ 11.9 $ ( 5.7 ) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Debt | A summary of debt is shown below: (in millions) April 29, 2023 April 30, 2022 Revolving credit facility $ 305.4 $ — Term loan — 206.3 Other debt 4.7 5.1 Unamortized debt issuance costs ( 3.3 ) ( 0.9 ) Total debt 306.8 210.5 Less: current maturities ( 3.2 ) ( 13.0 ) Total long-term debt $ 303.6 $ 197.5 |
Scheduled Principal Payments of Debt | As of April 29, 2023, scheduled principal payments of debt are as follows: (in millions) Fiscal Year: 2024 $ 3.2 2025 0.2 2026 0.2 2027 0.2 2028 305.6 Thereafter 0.7 Total $ 310.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | The U.S. and foreign components of income before income taxes and the provision for income taxes are as follows: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Pre-tax income: U.S. $ ( 3.6 ) $ 31.2 $ 28.3 Foreign 93.7 87.3 106.6 Total pre-tax income $ 90.1 $ 118.5 $ 134.9 Income tax expense: Current: U.S. (federal and state) $ 0.1 $ 5.2 $ 5.8 Foreign 16.9 13.5 15.9 Total current expense 17.0 18.7 21.7 Deferred: U.S. (federal and state) ( 5.7 ) 0.2 1.3 Foreign 1.7 ( 2.6 ) ( 10.4 ) Total deferred benefit ( 4.0 ) ( 2.4 ) ( 9.1 ) Total income tax expense $ 13.0 $ 16.3 $ 12.6 |
Schedule of Reconciliation of Income Tax Expense | A reconciliation of income tax expense to the U.S. statutory federal income tax rate of 21 % is as follows: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Income tax at statutory rate $ 18.9 $ 24.9 $ 28.3 Effect of: State income taxes, net of federal benefit — 0.6 0.1 Reorganization of a foreign owned subsidiary ( 7.3 ) — — Acquisition costs 1.4 — — Withholding taxes 3.4 2.5 2.7 Non-deductible compensation 1.6 2.1 0.5 Foreign tax differential ( 11.6 ) ( 8.1 ) ( 10.8 ) U.S. tax on foreign income 2.9 ( 1.7 ) 2.8 Foreign investment tax credit 5.0 — ( 7.2 ) Research and development ( 1.5 ) ( 2.6 ) ( 2.2 ) Change in tax reserve ( 0.6 ) ( 0.1 ) 0.1 Change in valuation allowance — ( 2.0 ) 1.8 Tax rate change, foreign 0.2 0.1 ( 0.1 ) Other, net 0.6 0.6 ( 3.4 ) Income tax expense $ 13.0 $ 16.3 $ 12.6 Effective income tax rate 14.4 % 13.8 % 9.3 % |
Schedule of Deferred Income Tax Assets and Liabilities | Significant components of the Company's deferred income tax assets and liabilities were as follows: (in millions) April 29, 2023 April 30, 2022 Deferred tax liabilities: Fixed assets $ ( 2.7 ) $ ( 4.3 ) Amortization ( 55.4 ) ( 48.1 ) Foreign tax ( 4.5 ) ( 3.1 ) Lease assets ( 6.8 ) ( 4.5 ) Derivative financial instruments ( 0.6 ) ( 1.1 ) Other liabilities — ( 0.6 ) Deferred tax liabilities, gross ( 70.0 ) ( 61.7 ) Deferred tax assets: Deferred compensation and stock award amortization 7.9 6.9 Inventory 5.1 3.5 Lease liabilities 6.8 4.7 Foreign investment tax credit 25.2 29.8 Research expenditures 2.4 — Net operating loss carryforwards 13.5 17.4 Foreign tax credits 1.2 1.3 Unrealized foreign exchange gain/loss 0.8 — Interest carryforwards 2.5 — Other 3.2 3.4 Deferred tax assets, gross 68.6 67.0 Less valuation allowance ( 6.8 ) ( 6.8 ) Deferred tax assets, net of valuation allowance 61.8 60.2 Net deferred tax liability $ ( 8.2 ) $ ( 1.5 ) Balance sheet classification: Long-term asset $ 33.6 $ 36.8 Long-term liability ( 41.8 ) ( 38.3 ) Net deferred tax liability $ ( 8.2 ) $ ( 1.5 ) |
Schedule of Reconciliation of Unrecognized Tax Benefits | The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: (in millions) April 29, 2023 April 30, 2022 Balance at beginning of period $ 5.1 $ 5.3 Increases for positions related to the current year 0.3 — Lapsing of statutes of limitations ( 0.9 ) ( 0.2 ) Balance at end of period $ 4.5 $ 5.1 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock Buyback Activity Under Share Buyback Program | The following table summarizes the Company’s stock buyback activity under this share buyback program: Fiscal Year Ended April 29, 2023 April 30, 2022 Shares purchased 1,197,236 1,425,190 Average price per share $ 40.14 $ 44.73 Total cost (in millions) $ 48.1 $ 63.7 |
Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | A summary of changes in accumulated other comprehensive income (loss), net of tax is shown below: (in millions) Currency translation adjustments Derivative Total Balance as of May 2, 2020 $ ( 25.9 ) $ ( 1.0 ) $ ( 26.9 ) Other comprehensive income (loss) 38.6 ( 5.7 ) 32.9 Tax benefit (expense) ( 1.2 ) 1.3 0.1 Net current period other comprehensive income (loss) 37.4 ( 4.4 ) 33.0 Balance as of May 1, 2021 11.5 ( 5.4 ) 6.1 Other comprehensive income (loss) ( 42.4 ) 11.9 ( 30.5 ) Tax benefit (expense) 0.4 ( 2.8 ) ( 2.4 ) Net current period other comprehensive income (loss) ( 42.0 ) 9.1 ( 32.9 ) Balance as of April 30, 2022 ( 30.5 ) 3.7 ( 26.8 ) Other comprehensive income (loss) before reclassifications 12.9 ( 3.8 ) 9.1 Amounts reclassified from accumulated other comprehensive income (loss) ( 2.1 ) — ( 2.1 ) Tax (expense) benefit ( 0.1 ) 0.9 0.8 Net current period other comprehensive income (loss) 10.7 ( 2.9 ) 7.8 Balance as of April 29, 2023 $ ( 19.8 ) $ 0.8 $ ( 19.0 ) |
Summary of Stock-based Compensation Expense Related to Equity Awards | The table below summarizes the stock-based compensation expense related to the equity awards: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 RSUs $ 9.9 $ 10.3 $ 5.9 Deferred non-employee director awards 1.0 0.8 — Non-employee director awards 0.6 0.7 0.9 Total stock-based compensation expense $ 11.5 $ 11.8 $ 6.8 |
Summary of RSA and RSU Activity | The following table summarizes the RSA activity: Restricted Weighted Non-vested at May 2, 2020 — $ — Awarded 928,412 $ 28.50 Vested — $ — Forfeited — $ — Non-vested at May 1, 2021 928,412 $ 28.50 Awarded — $ — Vested — $ — Forfeited — $ — Non-vested at April 30, 2022 928,412 $ 28.50 Awarded 21,262 $ 38.41 Vested — $ — Forfeited ( 16,000 ) $ 28.28 Non-vested at April 29, 2023 933,674 $ 28.73 The following table summarizes RSU activity: Restricted Weighted Non-vested at May 2, 2020 3,100 $ 41.20 Awarded 949,712 $ 28.49 Vested ( 25,201 ) $ 29.87 Forfeited — $ — Non-vested at May 1, 2021 927,611 $ 28.50 Awarded 46,300 $ 48.41 Vested ( 37,520 ) $ 36.55 Forfeited — $ — Non-vested at April 30, 2022 936,391 $ 29.16 Awarded 127,277 $ 40.11 Vested ( 307,333 ) $ 29.88 Forfeited ( 28,868 ) $ 33.53 Non-vested at April 29, 2023 727,467 $ 30.60 |
Summary of Awards Granted to Non-employee Directors | The following table summarizes awards granted to non-employee directors: Non-employee director awards Deferred non-employee director awards Total Weighted Outstanding at May 2, 2020 — — — $ — Awarded 33,000 — 33,000 $ 28.76 Issued ( 33,000 ) — ( 33,000 ) $ 28.76 Outstanding at May 1, 2021 — — — $ — Awarded 14,775 17,956 32,731 $ 47.37 Issued ( 14,775 ) — ( 14,775 ) $ 47.39 Outstanding at April 30, 2022 — 17,956 17,956 $ 47.35 Awarded 15,540 27,794 43,334 $ 36.13 Issued ( 15,540 ) — ( 15,540 ) $ 36.04 Outstanding at April 29, 2023 — 45,750 45,750 $ 40.56 |
Summary of combined stock option activity and related information for stock options granted | The following table summarizes stock option activity: Stock Weighted average exercise price Weighted- Aggregate Outstanding and exercisable at May 2, 2020 106,668 $ 35.76 4.0 $ 0.1 Exercised ( 24,500 ) $ 31.61 Forfeited ( 9,168 ) $ 37.01 Outstanding and exercisable at May 1, 2021 73,000 $ 37.01 3.2 $ 0.6 Exercised ( 13,000 ) $ 37.01 Forfeited — $ — Outstanding and exercisable at April 30, 2022 60,000 $ 37.01 2.2 $ 0.5 Exercised ( 40,000 ) $ 37.01 Forfeited — $ — Outstanding and exercisable at April 29, 2023 20,000 $ 37.01 1.2 $ 0.1 |
Income Per Share (Tables)
Income Per Share (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of 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, 2023 April 30, 2022 May 1, 2021 Numerator: Net income attributable to Methode (in millions) $ 77.1 $ 102.2 $ 122.3 Denominator: Denominator for basic income per share - weighted average shares outstanding and vested/unissued RSUs 36,016,686 37,234,086 38,038,615 Dilutive potential common shares - stock options, RSAs and RSUs 758,749 583,360 267,671 Denominator for diluted income per share 36,775,435 37,817,446 38,306,286 Basic and diluted income per share attributable to Methode: Basic income per share $ 2.14 $ 2.74 $ 3.22 Diluted income per share $ 2.10 $ 2.70 $ 3.19 Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 938,281 928,412 738,167 |
Segment Information and Geogr_2
Segment Information and Geographic Area Information (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments | The tables below present information about the Company’s reportable segments. Fiscal Year Ended April 29, 2023 (in millions) Automotive Industrial Interface Medical Eliminations/ Consolidated Net sales $ 742.1 $ 403.2 $ 55.1 $ 3.6 $ ( 24.4 ) $ 1,179.6 Transfers between segments ( 5.9 ) ( 18.3 ) ( 0.2 ) — 24.4 — Net sales to unaffiliated customers $ 736.2 $ 384.9 $ 54.9 $ 3.6 $ — $ 1,179.6 Income (loss) from operations $ 67.0 $ 93.1 $ 5.5 $ ( 6.1 ) $ ( 69.1 ) $ 90.4 Interest expense, net 2.7 Other income, net ( 2.4 ) Pre-tax income $ 90.1 Purchases of property, plant and equipment $ 31.8 $ 7.7 $ 0.1 $ 0.1 $ 2.3 $ 42.0 Depreciation and amortization $ 31.7 $ 14.5 $ 0.2 $ 1.0 $ 2.1 $ 49.5 Identifiable assets $ 700.2 $ 672.3 $ 127.2 $ 6.2 $ 73.2 $ 1,579.1 Fiscal Year Ended April 30, 2022 (in millions) Automotive Industrial Interface Medical Eliminations/ Consolidated Net sales $ 786.3 $ 325.7 $ 59.8 $ 4.2 $ ( 12.4 ) $ 1,163.6 Transfers between segments ( 4.8 ) ( 7.6 ) — — 12.4 — Net sales to unaffiliated customers $ 781.5 $ 318.1 $ 59.8 $ 4.2 $ — $ 1,163.6 Income (loss) from operations $ 92.6 $ 67.1 $ 9.9 $ ( 5.5 ) $ ( 52.4 ) $ 111.7 Interest expense, net 3.5 Other income, net ( 10.3 ) Pre-tax income $ 118.5 Purchases of property, plant and equipment $ 27.4 $ 2.4 $ — $ 0.2 $ 8.0 $ 38.0 Depreciation and amortization $ 34.4 $ 14.9 $ 0.2 $ 1.0 $ 2.1 $ 52.6 Identifiable assets $ 689.8 $ 455.3 $ 108.1 $ 7.9 $ 128.0 $ 1,389.1 Fiscal Year Ended May 1, 2021 (in millions) Automotive Industrial Interface Medical Eliminations/ Consolidated Net sales $ 761.8 $ 273.2 $ 61.6 $ 2.8 $ ( 11.4 ) $ 1,088.0 Transfers between segments ( 6.1 ) ( 5.3 ) — — 11.4 — Net sales to unaffiliated customers $ 755.7 $ 267.9 $ 61.6 $ 2.8 $ — $ 1,088.0 Income (loss) from operations $ 107.6 $ 64.3 $ 8.9 $ ( 4.6 ) $ ( 48.3 ) $ 127.9 Interest expense, net 5.2 Other income, net ( 12.2 ) Pre-tax income $ 134.9 Purchases of property, plant and equipment $ 22.5 $ 2.1 $ — $ — $ 0.3 $ 24.9 Depreciation and amortization $ 34.3 $ 14.3 $ 0.3 $ 0.9 $ 1.7 $ 51.5 Identifiable assets $ 739.5 $ 461.6 $ 90.4 $ 7.6 $ 167.9 $ 1,467.0 |
Schedule of Geographic Financial Information | The following tables set forth net sales and tangible long-lived assets by geographic area where the Company operates. Tangible long-lived assets include property, plant and equipment and operating lease assets. Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Net sales: U.S. $ 472.6 $ 547.4 $ 510.8 China 239.9 224.3 193.7 Malta 201.2 178.4 173.5 Mexico 78.8 76.2 87.4 Egypt 72.6 67.2 58.4 Other 114.5 70.1 64.2 Total net sales $ 1,179.6 $ 1,163.6 $ 1,088.0 (in millions) April 29, 2023 April 30, 2022 Tangible long-lived assets, net: U.S. $ 75.9 $ 74.2 Malta 42.1 38.6 Egypt 38.7 22.8 China 27.5 30.1 Mexico 21.7 21.0 Belgium 21.0 20.2 Other 21.8 10.1 Total tangible long-lived assets, net $ 248.7 $ 217.0 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Leases [Abstract] | |
Lease Costs | The components of lease expense were as follows: Fiscal Year Ended (in millions) April 29, 2023 April 30, 2022 May 1, 2021 Lease cost: Operating lease cost $ 9.5 $ 8.9 $ 8.4 Variable lease cost 0.7 1.6 1.6 Total lease cost $ 10.2 $ 10.5 $ 10.0 |
Supplemental Cash Flow | Supplemental cash flow and other information related to operating leases was as follows: Fiscal Year Ended April 29, 2023 April 30, 2022 May 1, 2021 Operating cash flows: Cash paid related to operating lease obligations, including lease termination payment (in millions) $ 8.8 $ 10.8 $ 9.3 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations (in millions) $ 11.7 $ 7.7 $ 5.7 Weighted-average remaining lease term (years) 5.1 5.3 5.0 Weighted-average discount rate 5.2 % 4.4 % 4.6 % |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of April 29, 2023, are shown below: (in millions) Fiscal Year: 2024 $ 7.8 2025 6.0 2026 5.2 2027 5.0 2028 3.3 Thereafter 5.8 Total lease payments 33.1 Less: imputed interest ( 4.5 ) Present value of lease liabilities $ 28.6 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 157 | $ 172 | |
Fiscal period duration | 364 days | 364 days | 364 days |
Money Market Accounts | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 1.3 | $ 40 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Allowance for Credit Loss [Abstract] | ||
Allowance for doubtful accounts receivable | $ 1.3 | $ 1 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies - Concentration of Credit Risk - Customer Concentration (Details) - Net Sales - Product Concentration Risk - Automotive | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Customer A | |||
Concentration Risk [Line Items] | |||
Percentage of net sales | 18.70% | 23.30% | 27.50% |
Customer B | |||
Concentration Risk [Line Items] | |||
Percentage of net sales | 10.80% |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Accounts Receivable - Credit Concentration Risk - USD ($) | 12 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Concentration Risk [Line Items] | ||
Accounts receivable, net | $ 0 | |
Minimum | ||
Concentration Risk [Line Items] | ||
Percentage of net sales | 10% | |
Customer A | ||
Concentration Risk [Line Items] | ||
Percentage of net sales | 15.40% |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Apr. 29, 2023 | |
Buildings and Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Buildings and Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies - Amortizable Intangible Assets (Details) | 12 Months Ended |
Apr. 29, 2023 | |
Customer Relationships and Trade Names | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful life | 20 years |
Description of Business and _10
Description of Business and Summary of Significant Accounting Policies - Pre-production Tooling Costs Related to Long-term Supply Arrangements (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Accounting Policies [Abstract] | ||
Pre-production costs | $ 36.1 | $ 27.2 |
Preproduction costs related to long-term supply arrangements, asset for molds dies and tools owned | $ 12.2 | $ 14.6 |
Description of Business and _11
Description of Business and Summary of Significant Accounting Policies - Government Incentives and Grants (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Accounting Policies [Abstract] | ||
Grants receivable | $ 17.8 | $ 12.7 |
Government Grants Income | 9.7 | |
Reduction of government grants cost of goods sold and selling and administrative expense | $ (0.6) |
Description of Business and _12
Description of Business and Summary of Significant Accounting Policies - Research and Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Accounting Policies [Abstract] | |||
Research and development costs | $ 35 | $ 35.7 | $ 37.1 |
Description of Business and _13
Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - ASU 2021-10 | Apr. 29, 2023 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle, accounting standards update, adoption date | Apr. 29, 2023 |
Revenue (Details)
Revenue (Details) | 12 Months Ended |
Apr. 29, 2023 | |
Minimum | |
Accounts Receivable and Allowance for Doubtful Accounts [Line Items] | |
Accounts receivable collection terms | 30 days |
Maximum | |
Accounts Receivable and Allowance for Doubtful Accounts [Line Items] | |
Accounts receivable collection terms | 45 days |
Revenue - Contract Assets and L
Revenue - Contract Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Unbilled receivables | $ 500,000 | $ 400,000 |
Unbilled receivables recorded into accounts receivable | (400,000) | |
Impairment of contract assets | 0 | 0 |
Deferred revenue | 100,000 | $ 200,000 |
Deferred revenue recorded into revenue | $ (100,000) |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,179.6 | $ 1,163.6 | $ 1,088 |
Goods Transferred at a Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,160.8 | 1,140.5 | 1,054.4 |
Goods Transferred Over Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 18.8 | 23.1 | 33.6 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 567.8 | 641.5 | 613 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 371.1 | 297.3 | 280.5 |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 240.7 | 224.8 | 194.5 |
Automotive | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 736.2 | 781.5 | 755.7 |
Automotive | Goods Transferred at a Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 717.4 | 758.4 | 722.1 |
Automotive | Goods Transferred Over Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 18.8 | 23.1 | 33.6 |
Automotive | North America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 349 | 400.9 | 406.4 |
Automotive | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 231.2 | 216.5 | 212.3 |
Automotive | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 156 | 164.1 | 137 |
Industrial | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 384.9 | 318.1 | 267.9 |
Industrial | Goods Transferred at a Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 384.9 | 318.1 | 267.9 |
Industrial | North America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 160.5 | 177.2 | 142.9 |
Industrial | EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 139.9 | 80.8 | 68.2 |
Industrial | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 84.5 | 60.1 | 56.8 |
Interface | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 54.9 | 59.8 | 61.6 |
Interface | Goods Transferred at a Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 54.9 | 59.8 | 61.6 |
Interface | North America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 54.7 | 59.3 | 61 |
Interface | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0.2 | 0.5 | 0.6 |
Medical | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3.6 | 4.2 | 2.8 |
Medical | Goods Transferred at a Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3.6 | 4.2 | 2.8 |
Medical | North America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 3.6 | 4.1 | 2.7 |
Medical | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 0.1 | $ 0.1 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - Finland € in Millions | 2 Months Ended | |||
Apr. 20, 2023 EUR (€) | Apr. 20, 2023 USD ($) | Jun. 16, 2023 EUR (€) | Jun. 16, 2023 USD ($) | |
Nordic Lights | Maximum | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage of minority shareholders | 10% | |||
Nordic Lights | ||||
Business Acquisition [Line Items] | ||||
Percentage acquired | 92.20% | |||
Payments to acquire business in cash | € 121.8 | $ 134,200,000 | ||
Expected goodwill recognized to be deductible for income tax purposes | $ 0 | |||
Weighted average amortization period for acquired intangible assets | 16 years 4 months 24 days | 16 years 4 months 24 days | ||
Acquisition cost incurred | $ 6,800,000 | |||
Nordic Lights | Subsequent Event | ||||
Business Acquisition [Line Items] | ||||
Percentage acquired | 99.40% | 99.40% | ||
Payments to acquire business in cash | € 9.3 | $ 10,200,000 | ||
Additional percentage acquired | 7.20% | 7.20% | ||
Expected completion date of redemption proceedings | Oct. 31, 2023 | Oct. 31, 2023 |
Acquisition - Provisional Estim
Acquisition - Provisional Estimated Acquisition-date Fair Values of Major Classes of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 20, 2023 | Apr. 30, 2022 | May 01, 2021 | May 02, 2020 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Goodwill | $ 301.9 | $ 233 | $ 235.6 | $ 231.6 | |
Nordic Lights | Finland | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Cash and cash equivalents | $ 19.6 | ||||
Accounts receivable | 17.1 | ||||
Inventories | 9.6 | ||||
Property, plant and equipment | 12.9 | ||||
Identifiable intangible assets | 68.1 | ||||
Accounts payable | (10.8) | ||||
Long-term debt | (24.4) | ||||
Other assets and liabilities, net | (2.8) | ||||
Deferred tax liabilities | (13.4) | ||||
Total identifiable net assets acquired | 75.9 | ||||
Goodwill | 69.6 | ||||
Total fair value of net assets acquired | 145.5 | ||||
Less: redeemable noncontrolling interest | (11.3) | ||||
Total purchase price | $ 134.2 |
Restructuring - Schedule of Com
Restructuring - Schedule of Components of Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | $ 1 | $ 3.6 | $ 8.2 |
Employee Termination Benefits | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | 0.3 | 0.4 | 7.1 |
Asset Impairment Charges | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | $ 0.7 | 3.1 | 0.6 |
Contract Termination Charges | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | $ 0.1 | $ 0.5 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Costs by Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | $ 1 | $ 3.6 | $ 8.2 |
Cost of Products Sold | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | 0.5 | 1.3 | 4.8 |
Selling and Administrative Expenses | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | 0.5 | 2.3 | 3.4 |
Automotive | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | 0.4 | 0.2 | 6.2 |
Industrial | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | 0.5 | $ 3.4 | 1 |
Interface | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | 0.7 | ||
Eliminations/Corporate | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Costs | $ 0.1 | $ 0.3 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Restructuring Cost And Reserve [Line Items] | ||
Expected additional restructuring costs | $ 0 | $ 0.1 |
Inventory - Summary of Inventor
Inventory - Summary of Inventories (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Inventory Net Items Net Of Reserve Alternative [Abstract] | ||
Finished products | $ 36.6 | $ 31.8 |
Work in process | 14.4 | 12.9 |
Raw materials | 108.7 | 113.8 |
Total inventories | $ 159.7 | $ 158.5 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | $ 556.7 | $ 521.5 |
Less: accumulated depreciation | (336.4) | (324.5) |
Property, plant and equipment, net | 220.3 | 197 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | 3 | 3.3 |
Buildings and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | 98.8 | 89.2 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | 414.3 | 407.5 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | $ 40.6 | $ 21.5 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 30.7 | $ 33.5 | $ 32.2 |
Capital expenditures recorded in accounts payable | $ 4.5 | $ 4.4 | $ 5.5 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of the Changes in Goodwill by Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Goodwill [Line Items] | |||
Beginning balance | $ 233 | $ 235.6 | $ 231.6 |
Acquisitions | 69.6 | ||
Foreign currency translation | (0.7) | (2.6) | 4 |
Ending balance | 301.9 | 233 | 235.6 |
Automotive | |||
Goodwill [Line Items] | |||
Beginning balance | 105.9 | 106.7 | 106.2 |
Foreign currency translation | 0.3 | (0.8) | 0.5 |
Ending balance | 106.2 | 105.9 | 106.7 |
Industrial | |||
Goodwill [Line Items] | |||
Beginning balance | 127.1 | 128.9 | 125.4 |
Acquisitions | 69.6 | ||
Foreign currency translation | (1) | (1.8) | 3.5 |
Ending balance | $ 195.7 | $ 127.1 | $ 128.9 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Goodwill by Reporting Unit (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | May 02, 2020 |
Goodwill [Line Items] | ||||
Goodwill | $ 301.9 | $ 233 | $ 235.6 | $ 231.6 |
Grakon Industrial | ||||
Goodwill [Line Items] | ||||
Goodwill | 124.5 | 125.5 | ||
North American Automotive | ||||
Goodwill [Line Items] | ||||
Goodwill | 99.8 | 99.8 | ||
Nordic Lights | ||||
Goodwill [Line Items] | ||||
Goodwill | 69.6 | |||
European Automotive | ||||
Goodwill [Line Items] | ||||
Goodwill | 6.4 | 6.1 | ||
Other | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 1.6 | $ 1.6 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | $ 358.3 | $ 290.3 |
Accumulated Amortization | (103.4) | (84.4) |
Net/Total | 254.9 | 205.9 |
Other intangible assets, gross | 360.1 | 292.1 |
Other intangible assets, accumulated amortization | (103.4) | (84.4) |
Other intangible assets, net | 256.7 | 207.7 |
Unamortized Trade Name | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | 1.8 | 1.8 |
Net | 1.8 | 1.8 |
Customer Relationships and Agreements | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | 286.7 | 232.3 |
Accumulated Amortization | (68.2) | (55.1) |
Net/Total | $ 218.5 | $ 177.2 |
Weighted average remaining useful life (years) | 14 years 9 months 18 days | 14 years 8 months 12 days |
Trade Names, Patents and Technology Licenses | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | $ 71.6 | $ 58 |
Accumulated Amortization | (35.2) | (29.3) |
Net/Total | $ 36.4 | $ 28.7 |
Weighted average remaining useful life (years) | 6 years | 6 years 2 months 12 days |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Aggregate Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 23 | |
2025 | 22.4 | |
2026 | 21.6 | |
2027 | 20.9 | |
2028 | 18.6 | |
Thereafter | 148.4 | |
Net/Total | $ 254.9 | $ 205.9 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 USD ($) | Apr. 30, 2022 USD ($) | Apr. 29, 2023 EUR (€) | |
Derivatives, Fair Value [Line Items] | |||
Derivative, maturity date | Aug. 31, 2023 | ||
Derivative, notional amount | $ 60 | € 54.8 | |
Gains on derivative | 1.3 | $ 0.2 | |
Transaction loss associated with net investment hedge reported in AOCI | 0.6 | ||
Euro-denominated long-term borrowings under Credit Agreement as hedge | $ 145.4 | ||
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, maturity date | Aug. 31, 2023 | ||
Derivative, notional amount | $ 100 | ||
Foreign Exchange Forward | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, notional amount | 59.9 | 38.6 | |
Gain (loss) on foreign currency derivatives recorded in earnings, net | $ (4.1) | $ 0.1 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Schedule of Fair Value of Derivative Instruments Classified as Level 2 Within Fair Value Recorded in the Balance Sheets (Details) - Level 2 - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Derivatives Designated as Hedging Instruments | Net Investment Hedges | Other Accrued Liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative instruments assets (liabilities) net | $ (0.5) | |
Derivatives Designated as Hedging Instruments | Net Investment Hedges | Other Long-term Assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative instruments assets (liabilities) net | $ 1.9 | |
Derivatives Designated as Hedging Instruments | Interest Rate Swap | Other Long-term Assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative instruments assets (liabilities) net | 3 | |
Derivatives Designated as Hedging Instruments | Interest Rate Swap | Prepaid Expenses and Other Current Assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative instruments assets (liabilities) net | 1.6 | |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Forward | Other Accrued Liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative instruments assets (liabilities) net | (0.1) | $ (0.2) |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Forward | Prepaid Expenses and Other Current Assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of derivative instruments assets (liabilities) net | $ 0.1 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Schedule of Derivative Instruments Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gross amounts recorded in other comprehensive income (loss) Net | $ (3.8) | $ 11.9 | $ (5.7) |
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gross amounts recorded in other comprehensive income (loss) Net | (1.4) | 3.2 | (0.2) |
Net Investment Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gross amounts recorded in other comprehensive income (loss) Net | $ (2.4) | $ 8.7 | $ (5.5) |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Employer matching contribution, percent | 3% | ||
Employer 401(k) contribution | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 |
Deferred Compensation Plan, maximum deferral percentage, annual base salary | 75% | ||
Deferred Compensation Plan, maximum deferral percentage, annual cash incentive | 100% | ||
Deferred Compensation Plan, aggregate minimum deferral | $ 3,000 | ||
Deferred Compensation Plan, minimum deferral period | 3 years | ||
Deferred Compensation Plan, vesting percentage | 100% | ||
Deferred Compensation Plan, employer discretionary contribution amount | $ 0 | ||
Deferred compensation | 9,400,000 | 7,600,000 | |
Asset Held in Trust | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Cash surrender value of life insurance | 7,700,000 | 7,800,000 | |
Key Individual Life Insurance | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Cash surrender value of life insurance | $ 10,400,000 | $ 9,900,000 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Oct. 31, 2022 | Apr. 30, 2022 |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (3.3) | $ (0.6) | $ (0.9) |
Total debt | 306.8 | 210.5 | |
Less: current maturities | (3.2) | (13) | |
Long-term debt | 303.6 | 197.5 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt | 305.4 | ||
Term loan | |||
Debt Instrument [Line Items] | |||
Debt | 206.3 | ||
Other Debt | |||
Debt Instrument [Line Items] | |||
Debt | 4.7 | $ 5.1 | |
Less: current maturities | $ (3.2) |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility/Term Loan (Details) | Oct. 31, 2022 USD ($) | Apr. 29, 2023 USD ($) | Apr. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 600,000 | $ 3,300,000 | $ 900,000 |
Bank of America, N.A., and Wells Fargo Bank, N.A. [Member] | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.40% | ||
Nordic Lights | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Euro-denominated outstanding borrowings under revolving credit facility | $ 145,400,000 | ||
Term loan | Bank of America, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Increase in revolving commitments | 250,000,000 | ||
Line of credit | Bank of America, N.A., and Wells Fargo Bank, N.A. [Member] | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 750,000,000 | ||
Line of credit | Bank of America, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Leverage ratio on pro forma basis | 3 | ||
Credit agreement termination date | Oct. 31, 2027 | ||
Debt issuance costs | $ 3,200,000 | ||
Line of credit | Base Rate | Minimum | Bank of America, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Adjusted interest rate | 0.375% | ||
Line of credit | Base Rate | Maximum | Bank of America, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Adjusted interest rate | 1.25% | ||
Line of credit | SOFR Daily Floating Rate Loans | Minimum | Bank of America, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Adjusted interest rate | 1.375% | ||
Line of credit | SOFR Daily Floating Rate Loans | Maximum | Bank of America, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Adjusted interest rate | 2.25% | ||
Line of credit | Euro Interbank Offered Rate Plus | Minimum | Bank of America, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Adjusted interest rate | 1.375% | ||
Line of credit | Euro Interbank Offered Rate Plus | Maximum | Bank of America, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Adjusted interest rate | 2.25% |
Debt - Other Debt (Details)
Debt - Other Debt (Details) $ in Millions | 12 Months Ended | |
Apr. 29, 2023 USD ($) Note | Apr. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Debt, short-term | $ 3.2 | $ 13 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Number of notes | Note | 3 | |
Weighted-average interest rate (as a percent) | 1.40% | |
Debt, short-term | $ 3.2 | |
Debt, fair value | $ 4.5 |
Debt - Scheduled Principal Paym
Debt - Scheduled Principal Payments of Debt (Details) $ in Millions | Apr. 29, 2023 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2024 | $ 3.2 |
2025 | 0.2 |
2026 | 0.2 |
2027 | 0.2 |
2028 | 305.6 |
Thereafter | 0.7 |
Total | $ 310.1 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Income Tax Contingency [Line Items] | |||
Pre-tax income | $ 90.1 | $ 118.5 | $ 134.9 |
Current Income Tax Expense | 17 | 18.7 | 21.7 |
Deferred Income Tax Benefit | (4) | (2.4) | (9.1) |
Total income tax expense | 13 | 16.3 | 12.6 |
Domestic Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Pre-tax income | (3.6) | 31.2 | 28.3 |
Current Income Tax Expense | 0.1 | 5.2 | 5.8 |
Deferred Income Tax Benefit | (5.7) | 0.2 | 1.3 |
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Pre-tax income | 93.7 | 87.3 | 106.6 |
Current Income Tax Expense | 16.9 | 13.5 | 15.9 |
Deferred Income Tax Benefit | $ 1.7 | $ (2.6) | $ (10.4) |
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, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax at statutory rate (as a percent) | 21% | 21% | 21% |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Income tax at statutory rate | $ 18.9 | $ 24.9 | $ 28.3 |
State income taxes, net of federal benefit | 0.6 | 0.1 | |
Reorganization of a foreign owned subsidiary | (7.3) | ||
Acquisition costs | 1.4 | ||
Withholding taxes | 3.4 | 2.5 | 2.7 |
Non-deductible compensation | 1.6 | 2.1 | 0.5 |
Foreign tax differential | (11.6) | (8.1) | (10.8) |
U.S. tax on foreign income | 2.9 | (1.7) | 2.8 |
Foreign investment tax credit | 5 | (7.2) | |
Research and development | (1.5) | (2.6) | (2.2) |
Change in tax reserve | (0.6) | (0.1) | 0.1 |
Change in valuation allowance | (2) | 1.8 | |
Tax rate change, foreign | 0.2 | 0.1 | (0.1) |
Other, net | 0.6 | 0.6 | (3.4) |
Total income tax expense | $ 13 | $ 16.3 | $ 12.6 |
Effective income tax rate | 14.40% | 13.80% | 9.30% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Tax Credit Carryforward [Line Items] | |||
Reorganization of a foreign owned subsidiary | $ 7.3 | ||
Foreign investment tax credit | (5) | $ 7.2 | |
Change in valuation allowance | $ 2 | (1.8) | |
U.S. tax on foreign income | 2.9 | (1.7) | 2.8 |
Non-deductible compensation | 1.6 | 2.1 | 0.5 |
Withholding taxes | 3.4 | 2.5 | 2.7 |
Non-deductible acquisition costs | 1.4 | ||
Change in tax reserve | (0.6) | (0.1) | 0.1 |
Income tax expense (benefit) | 13 | 16.3 | 12.6 |
Deferred Tax Liabilities, Net | 8.2 | 1.5 | |
Valuation allowance | 6.8 | 6.8 | |
Undistributed Earnings of Foreign Subsidiaries | 330.6 | ||
Gross unrecognized tax benefits | 4.5 | 5.1 | $ 5.3 |
Income tax penalties and interest accrued | 0.2 | $ 0.2 | |
Federal | |||
Tax Credit Carryforward [Line Items] | |||
Gross operating loss carryforwards | 35.1 | ||
Federal income tax benefit | 24.2 | ||
State | |||
Tax Credit Carryforward [Line Items] | |||
Gross operating loss carryforwards | 71.8 | ||
Federal income tax benefit | 26.1 | ||
Foreign Tax Authority | |||
Tax Credit Carryforward [Line Items] | |||
Gross operating loss carryforwards | 0.3 | ||
Federal income tax benefit | 0 | ||
Foreign Tax Authority | Tax Credit Carryforward, Period, Indefinite | Investment Tax Credit Carryforward | MALTA | |||
Tax Credit Carryforward [Line Items] | |||
Total unused credits | $ 25.2 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Deferred tax liabilities: | ||
Fixed assets | $ (2.7) | $ (4.3) |
Amortization | (55.4) | (48.1) |
Foreign tax | (4.5) | (3.1) |
Lease assets | (6.8) | (4.5) |
Derivative financial instruments | (0.6) | (1.1) |
Other liabilities | (0.6) | |
Deferred tax liabilities, gross | (70) | (61.7) |
Deferred tax assets: | ||
Deferred compensation and stock award amortization | 7.9 | 6.9 |
Inventory | 5.1 | 3.5 |
Lease liabilities | 6.8 | 4.7 |
Foreign investment tax credit | 25.2 | 29.8 |
Research expenditures | 2.4 | |
Net operating loss carryforwards | 13.5 | 17.4 |
Foreign tax credits | 1.2 | 1.3 |
Unrealized foreign exchange gain/loss | 0.8 | |
Interest carryforwards | 2.5 | |
Other | 3.2 | 3.4 |
Deferred tax assets, gross | 68.6 | 67 |
Less valuation allowance | (6.8) | (6.8) |
Deferred tax assets, net of valuation allowance | 61.8 | 60.2 |
Net deferred tax liability | (8.2) | (1.5) |
Balance sheet classification: | ||
Long-term asset | 33.6 | 36.8 |
Long-term liability | (41.8) | (38.3) |
Net deferred tax liability | $ (8.2) | $ (1.5) |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 5.1 | $ 5.3 |
Increases for positions related to the current year | 0.3 | |
Lapsing of statutes of limitations | (0.9) | (0.2) |
Ending balance | $ 4.5 | $ 5.1 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended | |||
Apr. 29, 2023 USD ($) Site | Apr. 30, 2022 USD ($) | May 01, 2021 USD ($) | Mar. 02, 2020 USD ($) | |
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 1.1 | $ 1 | ||
Accrued Environmental Loss Contingencies, Current | $ 0.8 | $ 0.7 | ||
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current | ||
Environmental remediation expense | $ 1.1 | $ 0.5 | $ 0.5 | |
United States | ||||
Loss Contingencies [Line Items] | ||||
Site contingency, number of sites subject to environmental investigation or remediation | Site | 2 | |||
Mexico | ||||
Loss Contingencies [Line Items] | ||||
Site contingency, number of sites subject to environmental investigation or remediation | Site | 1 | |||
Compensatory Damages | ||||
Loss Contingencies [Line Items] | ||||
Gain Contingency, Unrecorded Amount | $ 102 | |||
Punitive Damages | ||||
Loss Contingencies [Line Items] | ||||
Gain Contingency, Unrecorded Amount | $ 11 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase Program (Details) - USD ($) $ in Millions | 12 Months Ended | 25 Months Ended | ||||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | Apr. 29, 2023 | Jun. 16, 2022 | Mar. 31, 2021 | |
Equity Class Of Treasury Stock [Line Items] | ||||||
Shares purchased | 1,197,236 | 1,425,190 | 2,790,375 | |||
Stock repurchase cost | $ 48.1 | $ 63.7 | $ 7.5 | $ 119.3 | ||
Remaining authorized repurchase amount | $ 80.7 | $ 80.7 | ||||
Stock repurchase program, additional authorized amount | $ 100 | |||||
Maximum | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, Authorized amount | $ 100 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Stock Buyback Activity Under Share Buyback Program (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 25 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | Apr. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||||
Shares purchased | 1,197,236 | 1,425,190 | 2,790,375 | |
Average price per share | $ 40.14 | $ 44.73 | ||
Total cost | $ 48.1 | $ 63.7 | $ 7.5 | $ 119.3 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cash dividends | $ 19.8 | $ 20.4 | $ 17.4 |
Description of changes in dividends rate | increased its quarterly dividend from $0.11 per share to $0.14 per share | ||
Increased quarterly dividend per share | $ 0.14 | $ 0.11 | |
RSAs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cash dividends | $ 0.9 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ 913.8 | $ 918 | $ 783.4 |
Other comprehensive income (loss) before reclassifications | 9.1 | (30.5) | 32.9 |
Amounts reclassified from accumulated other comprehensive income (loss) | (2.1) | ||
Tax benefit (expense) | 0.8 | (2.4) | 0.1 |
Other comprehensive income (loss): | 7.8 | (32.9) | 33 |
Ending balance | 941.8 | 913.8 | 918 |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (30.5) | 11.5 | (25.9) |
Other comprehensive income (loss) before reclassifications | 12.9 | (42.4) | 38.6 |
Amounts reclassified from accumulated other comprehensive income (loss) | (2.1) | ||
Tax benefit (expense) | (0.1) | 0.4 | (1.2) |
Other comprehensive income (loss): | 10.7 | (42) | 37.4 |
Ending balance | (19.8) | (30.5) | 11.5 |
Derivative Instruments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 3.7 | (5.4) | (1) |
Other comprehensive income (loss) before reclassifications | (3.8) | 11.9 | (5.7) |
Tax benefit (expense) | 0.9 | (2.8) | 1.3 |
Other comprehensive income (loss): | (2.9) | 9.1 | (4.4) |
Ending balance | 0.8 | 3.7 | (5.4) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (26.8) | 6.1 | (26.9) |
Other comprehensive income (loss): | 7.8 | (32.9) | 33 |
Ending balance | $ (19) | $ (26.8) | $ 6.1 |
Shareholders' Equity - General
Shareholders' Equity - General (Details) - shares | 12 Months Ended | |
Apr. 29, 2023 | Sep. 14, 2022 | |
2014 Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares common stock subject an option granted | 1 | |
Number of shares common stock subject an other than option granted | 2.28 | |
2022 Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares available for award (in shares) | 5,189,956 | 5,550,000 |
Stock-based compensation, description | the number of shares of the Company's common stock that will be available for all awards under the 2022 Plan is 5,550,000, less one share for every one share of common stock subject to an option or SAR award granted after April 30, 2022 under the 2014 Plan and 2.28 shares for every one share that was subject to an award other than an option or SAR granted after April 30, 2022 under the 2014 Plan. As of April 29, 2023, there were 5,189,956 shares available for award under the 2022 Plan. |
Shareholders' Equity - Stock-ba
Shareholders' Equity - Stock-based Compensation Expense (Details) - 2014 Incentive Plan - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 11.5 | $ 11.8 | $ 6.8 |
RSUs | Management | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 9.9 | 10.3 | 5.9 |
RSUs | Deferred Non-Employee Director Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 1 | 0.8 | |
RSUs | Non-Employee Director Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 0.6 | $ 0.7 | $ 0.9 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | May 02, 2020 | |
2014 Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 11.5 | $ 11.8 | $ 6.8 | |
Deferred RSU's | 202,000 | |||
2010 Stock Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Deferred RSU's | 180,000 | |||
RSAs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares granted in period (in shares) | 933,674 | |||
Additional stock issuable, shares | 466,837 | |||
Unrecognized stock-based compensation cost | $ 26.8 | |||
RSUs | 2014 Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation cost | $ 7.4 | |||
Number of restricted stock vested for which shares issued | 264,133 | |||
Weighted average amortization period | 1 year 10 months 24 days | |||
RSUs | 2014 Incentive Plan | Management | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 9.9 | $ 10.3 | $ 5.9 | |
RSUs | 2004 Stock Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares converted from RSAs to RSUs outstanding (in shares) | 29,945 | |||
Converted RSUs delivered (in shares) | 195,055 | |||
Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Intrinsic value of options exercised | $ 0.4 | |||
Deferred share outstanding | 20,000 | 60,000 | 73,000 | 106,668 |
Converted from Restricted Stock Awards to Restricted Stock Units | 2004 Stock Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares converted from RSAs to RSUs outstanding (in shares) | 225,000 | |||
Minimum | RSAs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage | 0% | |||
Maximum | RSAs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting percentage | 100% | |||
Maximum | RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 5 years |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Restricted Stock Awards and Restricted Stock Units Activity (Details) - $ / shares | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
RSAs | Management | 2020 EBITDA Maximum Performance | |||
Shares | |||
Non-vested Outstanding beginning balance (in shares) | 928,412 | 928,412 | 0 |
Awarded (in shares) | 21,262 | 0 | 928,412 |
Vested (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | (16,000) | 0 | 0 |
Non-vested Outstanding ending balance (in shares) | 933,674 | 928,412 | 928,412 |
Weighted average grant date fair value | |||
Weighted average grant date fair value - beginning balance (in dollars per share) | $ 28.50 | $ 28.50 | $ 0 |
Weighted average grant date fair value, awarded (in dollars per share) | 38.41 | 0 | 28.50 |
Weighted average value, vested (in dollars per share) | 0 | 0 | 0 |
Weighted average value, forfeited (in dollars per share) | 28.28 | 0 | 0 |
Weighted average grant date fair value - ending balance (in dollars per share) | $ 28.73 | $ 28.50 | $ 28.50 |
RSUs | |||
Shares | |||
Non-vested Outstanding beginning balance (in shares) | 936,391 | 927,611 | 3,100 |
Awarded (in shares) | 127,277 | 46,300 | 949,712 |
Vested (in shares) | (307,333) | (37,520) | (25,201) |
Forfeited (in shares) | (28,868) | 0 | 0 |
Non-vested Outstanding ending balance (in shares) | 727,467 | 936,391 | 927,611 |
Weighted average grant date fair value | |||
Weighted average grant date fair value - beginning balance (in dollars per share) | $ 29.16 | $ 28.50 | $ 41.20 |
Weighted average grant date fair value, awarded (in dollars per share) | 40.11 | 48.41 | 28.49 |
Weighted average value, vested (in dollars per share) | 29.88 | 36.55 | 29.87 |
Weighted average value, forfeited (in dollars per share) | 33.53 | 0 | 0 |
Weighted average grant date fair value - ending balance (in dollars per share) | $ 30.60 | $ 29.16 | $ 28.50 |
Shareholders' Equity - Summar_4
Shareholders' Equity - Summary of Awards Granted to Non-employee Directors (Details) - Non-employee Directors - $ / shares | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested Outstanding beginning balance (in shares) | 17,956 | ||
Awarded (in shares) | 43,334 | 32,731 | 33,000 |
Issued (in shares) | (15,540) | (14,775) | (33,000) |
Non-vested Outstanding ending balance (in shares) | 45,750 | 17,956 | |
Weighted average grant date fair value | |||
Weighted average grant date fair value - beginning balance (in dollars per share) | $ 47.35 | ||
Weighted average grant date fair value, awarded (in dollars per share) | 36.13 | $ 47.37 | $ 28.76 |
Weighted average grant date fair value, issued (in dollars per share) | 36.04 | 47.39 | $ 28.76 |
Weighted average grant date fair value - ending balance (in dollars per share) | $ 40.56 | $ 47.35 | |
Non-Employee Director Awards | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Awarded (in shares) | 15,540 | 14,775 | 33,000 |
Issued (in shares) | (15,540) | (14,775) | (33,000) |
Deferred Non-Employee Director Awards | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested Outstanding beginning balance (in shares) | 17,956 | ||
Awarded (in shares) | 27,794 | 17,956 | |
Non-vested Outstanding ending balance (in shares) | 45,750 | 17,956 |
Shareholders' Equity - Summar_5
Shareholders' Equity - Summary of Combined Stock Option Activity and Related Information for Stock Options Granted (Details) - Share-based Payment Arrangement, Option - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | May 02, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding [Roll Forward] | ||||
Outstanding - beginning balance (in shares) | 60,000 | 73,000 | 106,668 | |
Exercised (in shares) | (40,000) | (13,000) | (24,500) | |
Forfeited (in shares) | 0 | 0 | (9,168) | |
Outstanding - ending balance (in shares) | 20,000 | 60,000 | 73,000 | 106,668 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Weighted average exercise price, Outstanding - beginning balance (in dollars per share) | $ 37.01 | $ 37.01 | $ 35.76 | |
Weighted average exercise price, Exercised (in dollars per share) | 37.01 | 37.01 | 31.61 | |
Weighted average exercise price, Forfeited (in dollars per share) | 0 | 0 | 37.01 | |
Weighted average exercise price, Outstanding - ending balance (in dollars per share) | $ 37.01 | $ 37.01 | $ 37.01 | $ 35.76 |
Weighted-average life of outstanding options | 1 year 2 months 12 days | 2 years 2 months 12 days | 3 years 2 months 12 days | 4 years |
Intrinsic value of outstanding options | $ 0.1 | $ 0.5 | $ 0.6 | $ 0.1 |
Income Per Share - Schedule of
Income Per Share - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Earnings Per Share [Abstract] | |||
Net income attributable to Methode (in millions) | $ 77.1 | $ 102.2 | $ 122.3 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Denominator for basic income per share - weighted average shares outstanding and vested/unissued RSUs | 36,016,686 | 37,234,086 | 38,038,615 |
Dilutive potential common shares - stock options, RSAs and RSUs (in shares) | 758,749 | 583,360 | 267,671 |
Denominator for diluted income per share | 36,775,435 | 37,817,446 | 38,306,286 |
Basic income per share attributable to Methode: | |||
Basic income per share (in dollars per share) | $ 2.14 | $ 2.74 | $ 3.22 |
Diluted income per share attributable to Methode: | |||
Diluted income per share (in dollars per share) | $ 2.10 | $ 2.70 | $ 3.19 |
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding | 938,281 | 928,412 | 738,167 |
Segment Information and Geogr_3
Segment Information and Geographic Area Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,179.6 | $ 1,163.6 | $ 1,088 |
Income (loss) from operations | 90.4 | 111.7 | 127.9 |
Interest expense, net | 2.7 | 3.5 | 5.2 |
Other income, net | (2.4) | (10.3) | (12.2) |
Pre-tax income | 90.1 | 118.5 | 134.9 |
Purchases of property, plant and equipment | 42 | 38 | 24.9 |
Depreciation and amortization | 49.5 | 52.6 | 51.5 |
Identifiable assets | 1,579.1 | 1,389.1 | 1,467 |
Automotive | |||
Segment Reporting Information [Line Items] | |||
Net sales | 736.2 | 781.5 | 755.7 |
Income (loss) from operations | 67 | 92.6 | 107.6 |
Purchases of property, plant and equipment | 31.8 | 27.4 | 22.5 |
Depreciation and amortization | 31.7 | 34.4 | 34.3 |
Identifiable assets | 700.2 | 689.8 | 739.5 |
Industrial | |||
Segment Reporting Information [Line Items] | |||
Net sales | 384.9 | 318.1 | 267.9 |
Income (loss) from operations | 93.1 | 67.1 | 64.3 |
Purchases of property, plant and equipment | 7.7 | 2.4 | 2.1 |
Depreciation and amortization | 14.5 | 14.9 | 14.3 |
Identifiable assets | 672.3 | 455.3 | 461.6 |
Interface | |||
Segment Reporting Information [Line Items] | |||
Net sales | 54.9 | 59.8 | 61.6 |
Income (loss) from operations | 5.5 | 9.9 | 8.9 |
Purchases of property, plant and equipment | 0.1 | 0 | 0 |
Depreciation and amortization | 0.2 | 0.2 | 0.3 |
Identifiable assets | 127.2 | 108.1 | 90.4 |
Medical | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3.6 | 4.2 | 2.8 |
Income (loss) from operations | (6.1) | (5.5) | (4.6) |
Purchases of property, plant and equipment | 0.1 | 0.2 | 0 |
Depreciation and amortization | 1 | 1 | 0.9 |
Identifiable assets | 6.2 | 7.9 | 7.6 |
Eliminations/Corporate | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Income (loss) from operations | (69.1) | (52.4) | (48.3) |
Purchases of property, plant and equipment | 2.3 | 8 | 0.3 |
Depreciation and amortization | 2.1 | 2.1 | 1.7 |
Identifiable assets | 73.2 | 128 | 167.9 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,179.6 | 1,163.6 | 1,088 |
Operating Segments | Automotive | |||
Segment Reporting Information [Line Items] | |||
Net sales | 742.1 | 786.3 | 761.8 |
Operating Segments | Industrial | |||
Segment Reporting Information [Line Items] | |||
Net sales | 403.2 | 325.7 | 273.2 |
Operating Segments | Interface | |||
Segment Reporting Information [Line Items] | |||
Net sales | 55.1 | 59.8 | 61.6 |
Operating Segments | Medical | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3.6 | 4.2 | 2.8 |
Operating Segments | Eliminations/Corporate | |||
Segment Reporting Information [Line Items] | |||
Net sales | (24.4) | (12.4) | (11.4) |
Transfers between Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Transfers between Segments | Automotive | |||
Segment Reporting Information [Line Items] | |||
Net sales | (5.9) | (4.8) | (6.1) |
Transfers between Segments | Industrial | |||
Segment Reporting Information [Line Items] | |||
Net sales | (18.3) | (7.6) | (5.3) |
Transfers between Segments | Interface | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0.2 | 0 | 0 |
Transfers between Segments | Medical | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Transfers between Segments | Eliminations/Corporate | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 24.4 | $ 12.4 | $ 11.4 |
Segment Information and Geogr_4
Segment Information and Geographic Area Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,179.6 | $ 1,163.6 | $ 1,088 |
Total Tangible Long-lived Assets, Net | 248.7 | 217 | |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 472.6 | 547.4 | 510.8 |
Total Tangible Long-lived Assets, Net | 75.9 | 74.2 | |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 239.9 | 224.3 | 193.7 |
Total Tangible Long-lived Assets, Net | 27.5 | 30.1 | |
Malta | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 201.2 | 178.4 | 173.5 |
Total Tangible Long-lived Assets, Net | 42.1 | 38.6 | |
Mexico | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 78.8 | 76.2 | 87.4 |
Total Tangible Long-lived Assets, Net | 21.7 | 21 | |
Egypt | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 72.6 | 67.2 | 58.4 |
Total Tangible Long-lived Assets, Net | 38.7 | 22.8 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 114.5 | 70.1 | $ 64.2 |
Belgium | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Tangible Long-lived Assets, Net | 21 | 20.2 | |
Other Countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Tangible Long-lived Assets, Net | $ 21.8 | $ 10.1 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Apr. 29, 2023 | Apr. 30, 2022 |
Lessee, Lease, Description [Line Items] | ||
Finance lease, right-of-use asset | $ 0.6 | $ 0.7 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Finance lease obligations | $ 0.6 | $ 0.8 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 23 years 6 months |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 9.5 | $ 8.9 | $ 8.4 |
Variable lease cost | 0.7 | 1.6 | 1.6 |
Total lease cost | $ 10.2 | $ 10.5 | $ 10 |
Leases - Supplemental Lessee In
Leases - Supplemental Lessee Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Leases [Abstract] | |||
Cash paid related to operating lease obligations, including lease termination payment (in millions) | $ 8.8 | $ 10.8 | $ 9.3 |
Right-of-use assets obtained in exchange for lease obligations (in millions) | $ 11.7 | $ 7.7 | $ 5.7 |
Weighted-average remaining lease term (years) | 5 years 1 month 6 days | 5 years 3 months 18 days | 5 years |
Weighted-average discount rate | 5.20% | 4.40% | 4.60% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity (Details) $ in Millions | Apr. 29, 2023 USD ($) |
Fiscal Year: | |
2024 | $ 7.8 |
2025 | 6 |
2026 | 5 |
2027 | 5.2 |
2028 | 3.3 |
Thereafter | 5.8 |
Total lease payments | 33.1 |
Less: imputed interest | (4.5) |
Present value of lease liabilities | $ 28.6 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | May 01, 2021 | |
Allowance for uncollectible accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 1 | $ 0.7 | $ 0.7 |
(Benefits)/ charges to income | 0.3 | 0.3 | 0 |
Deductions | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Balance at end of period | 1.3 | 1 | 0.7 |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 6.8 | 9.3 | 7.5 |
(Benefits)/ charges to income | 0 | (2.5) | 1.8 |
Deductions | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Balance at end of period | $ 6.8 | $ 6.8 | $ 9.3 |