Cover Page
Cover Page - shares | 9 Months Ended | |
Jan. 30, 2021 | Mar. 01, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | METHODE ELECTRONICS, INC. | |
Entity Central Index Key | 0000065270 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 30, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --05-01 | |
Entity Current Reporting Status | Yes | |
Trading Symbol | MEI | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 38,446,738 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
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 Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $0.50 Par Value | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | |
Income Statement [Abstract] | ||||
Net Sales | $ 295.3 | $ 285.9 | $ 787 | $ 813.3 |
Cost of Products Sold | 222.7 | 206.6 | 588.5 | 589.6 |
Gross Profit | 72.6 | 79.3 | 198.5 | 223.7 |
Selling and Administrative Expenses | 32.4 | 33 | 89.8 | 98.6 |
Amortization of Intangibles | 4.8 | 4.8 | 14.5 | 14.3 |
Income from Operations | 35.4 | 41.5 | 94.2 | 110.8 |
Interest Expense, Net | 1.3 | 2.4 | 4.3 | 8 |
Other Income, Net | (2.4) | (4.9) | (8.4) | (5.8) |
Income before Income Taxes | 36.5 | 44 | 98.3 | 108.6 |
Income Tax Expense | 4.6 | 2.8 | 7.1 | 15.3 |
Net Income | $ 31.9 | $ 41.2 | $ 91.2 | $ 93.3 |
Basic and Diluted Income per Share: | ||||
Basic (in dollars per share) | $ 0.84 | $ 1.10 | $ 2.40 | $ 2.48 |
Diluted (in dollars per share) | 0.83 | 1.09 | 2.39 | 2.47 |
Cash Dividends per Share | $ 0.11 | $ 0.11 | $ 0.33 | $ 0.33 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income | $ 31.9 | $ 41.2 | $ 91.2 | $ 93.3 |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Foreign Currency Translation Adjustments | 18.2 | 1.6 | 39.9 | (2.8) |
Derivative Financial Instruments | (2.1) | (4.8) | ||
Total Comprehensive Income | $ 48 | $ 42.8 | $ 126.3 | $ 90.5 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 30, 2021 | May 02, 2020 |
CURRENT ASSETS | ||
Cash and Cash Equivalents | $ 218.7 | $ 217.3 |
Accounts Receivable, Net | 278.5 | 188.5 |
Inventories | 124 | 131 |
Income Tax Receivable | 5.5 | 12.9 |
Prepaid Expenses and Other Current Assets | 18.3 | 15.9 |
TOTAL CURRENT ASSETS | 645 | 565.6 |
LONG-TERM ASSETS | ||
Property, Plant and Equipment, Net | 205.4 | 201.9 |
Goodwill | 234.8 | 231.6 |
Other Intangible Assets, Net | 233.7 | 244.8 |
Operating Lease Assets, Net | 23.3 | 23.5 |
Deferred Tax Assets | 41.9 | 31.4 |
Pre-production Costs | 22.6 | 37.1 |
Other Long-term Assets | 37.8 | 34.7 |
TOTAL LONG-TERM ASSETS | 799.5 | 805 |
TOTAL ASSETS | 1,444.5 | 1,370.6 |
CURRENT LIABILITIES | ||
Accounts Payable | 117.8 | 73.8 |
Accrued Employee Liabilities | 26.5 | 19.1 |
Other Accrued Liabilities | 32.9 | 18.5 |
Short-term Operating Lease Liability | 6.4 | 5.5 |
Short-term Debt | 15.4 | 15.3 |
Income Tax Payable | 10.2 | 11.6 |
TOTAL CURRENT LIABILITIES | 209.2 | 143.8 |
LONG-TERM LIABILITIES | ||
Long-term Debt | 229.2 | 336.8 |
Long-term Operating Lease Liability | 18.6 | 20.4 |
Long-term Income Tax Payable | 26.2 | 29.3 |
Other Long-term Liabilities | 21.6 | 15.3 |
Deferred Tax Liabilities | 42.1 | 41.6 |
TOTAL LONG-TERM LIABILITIES | 337.7 | 443.4 |
TOTAL LIABILITIES | 546.9 | 587.2 |
SHAREHOLDERS' EQUITY | ||
Common Stock, $0.50 par value, 100,000,000 shares authorized, 39,793,362 shares and 38,438,111 shares issued as of January 30, 2021 and May 2, 2020, respectively | 19.9 | 19.2 |
Additional Paid-in Capital | 154.4 | 150.7 |
Accumulated Other Comprehensive Income (Loss) | 8.2 | (26.9) |
Treasury Stock, 1,346,624 shares as of January 30, 2021 and May 2, 2020 | (11.5) | (11.5) |
Retained Earnings | 726.6 | 651.9 |
TOTAL SHAREHOLDERS' EQUITY | 897.6 | 783.4 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,444.5 | $ 1,370.6 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 30, 2021 | May 02, 2020 |
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) | 39,793,362 | 38,438,111 |
Treasury stock (in shares) | 1,346,624 | 1,346,624 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Retained Earnings |
Beginning balance at Apr. 27, 2019 | $ 689.7 | $ 19.2 | $ 150.4 | $ (13.6) | $ (11.5) | $ 545.2 |
Beginning balance (in shares) at Apr. 27, 2019 | 38,333,576 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of Restricted Stock, Net of Tax Withholding | (0.4) | (0.4) | ||||
Issuance of Restricted Stock, Net of Tax Withholding (in shares) | 104,535 | |||||
Stock-based Compensation Expense | 5.6 | 5.6 | ||||
Other Comprehensive Income (Loss) | (2.8) | (2.8) | ||||
Net Income | 93.3 | 93.3 | ||||
Dividends on Common Stock | (12.5) | (12.5) | ||||
Ending balance at Feb. 01, 2020 | 772.9 | $ 19.2 | 156 | (16.4) | (11.5) | 625.6 |
Ending balance (in shares) at Feb. 01, 2020 | 38,438,111 | |||||
Beginning balance at Oct. 26, 2019 | 732.6 | $ 19.2 | 154.4 | (18) | (11.5) | 588.5 |
Beginning balance (in shares) at Oct. 26, 2019 | 38,438,111 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based Compensation Expense | 1.6 | 1.6 | ||||
Other Comprehensive Income (Loss) | 1.6 | 1.6 | ||||
Net Income | 41.2 | 41.2 | ||||
Dividends on Common Stock | (4.1) | (4.1) | ||||
Ending balance at Feb. 01, 2020 | 772.9 | $ 19.2 | 156 | (16.4) | (11.5) | 625.6 |
Ending balance (in shares) at Feb. 01, 2020 | 38,438,111 | |||||
Beginning balance at May. 02, 2020 | 783.4 | $ 19.2 | 150.7 | (26.9) | (11.5) | 651.9 |
Beginning balance (in shares) at May. 02, 2020 | 38,438,111 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of Restricted Stock, Net of Tax Withholding | (3.9) | $ 0.7 | (0.7) | (3.9) | ||
Issuance of Restricted Stock, Net of Tax Withholding (in shares) | 1,350,251 | |||||
Exercise of Stock Options | 0.1 | 0.1 | ||||
Exercise of Stock Options (in shares) | 5,000 | |||||
Stock-based Compensation Expense | 4.3 | 4.3 | ||||
Other Comprehensive Income (Loss) | 35.1 | 35.1 | ||||
Net Income | 91.2 | 91.2 | ||||
Dividends on Common Stock | (12.6) | (12.6) | ||||
Ending balance at Jan. 30, 2021 | 897.6 | $ 19.9 | 154.4 | 8.2 | (11.5) | 726.6 |
Ending balance (in shares) at Jan. 30, 2021 | 39,793,362 | |||||
Beginning balance at Oct. 31, 2020 | 851.4 | $ 19.4 | 152.5 | (7.9) | (11.5) | 698.9 |
Beginning balance (in shares) at Oct. 31, 2020 | 38,876,362 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of Restricted Stock, Net of Tax Withholding | $ 0.5 | (0.5) | ||||
Issuance of Restricted Stock, Net of Tax Withholding (in shares) | 917,000 | |||||
Stock-based Compensation Expense | 2.4 | 2.4 | ||||
Other Comprehensive Income (Loss) | 16.1 | 16.1 | ||||
Net Income | 31.9 | 31.9 | ||||
Dividends on Common Stock | (4.2) | (4.2) | ||||
Ending balance at Jan. 30, 2021 | $ 897.6 | $ 19.9 | $ 154.4 | $ 8.2 | $ (11.5) | $ 726.6 |
Ending balance (in shares) at Jan. 30, 2021 | 39,793,362 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 01, 2020 | |
OPERATING ACTIVITIES | |||||
Net Income | $ 31.9 | $ 41.2 | $ 91.2 | $ 93.3 | $ 93.3 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||
Depreciation and Amortization | 38.2 | 36 | |||
Stock-based Compensation Expense | 4.3 | 5.6 | |||
Change in Cash Surrender Value of Life Insurance | (1.4) | (0.6) | |||
Amortization of Debt Issuance Costs | 0.5 | 0.5 | |||
Change in Deferred Income Taxes | (5.9) | (0.4) | |||
Other | 1.6 | 0.3 | |||
Changes in Operating Assets and Liabilities: | |||||
Accounts Receivable | (77.1) | (10.5) | |||
Inventories | 11.8 | (9.9) | |||
Prepaid Expenses and Other Assets | 21.3 | (12.8) | |||
Accounts Payable and Other Liabilities | 59.3 | (18.9) | |||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 143.8 | 82.6 | |||
INVESTING ACTIVITIES | |||||
Purchases of Property, Plant and Equipment | (20.1) | (34.9) | |||
Sale of Business/Investment/Property | 0.1 | 0.5 | |||
NET CASH USED IN INVESTING ACTIVITIES | (20) | (34.4) | |||
FINANCING ACTIVITIES | |||||
Taxes Paid Related to Net Share Settlement of Equity Awards | (3.9) | (0.4) | |||
Proceeds from Exercise of Stock Options | 0.1 | ||||
Repayments of Finance Leases | (0.4) | (0.5) | |||
Cash Dividends | (4.1) | (4) | (13.2) | (12.2) | |
Proceeds from Borrowings | 1.5 | 57.3 | |||
Repayments of Borrowings | (111.9) | (93.9) | |||
NET CASH USED IN FINANCING ACTIVITIES | (127.8) | (49.7) | |||
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents | 5.4 | (1.8) | |||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1.4 | (3.3) | |||
Cash and Cash Equivalents at Beginning of the Year | 217.3 | 83.2 | |||
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | $ 218.7 | $ 79.9 | 218.7 | $ 79.9 | 79.9 |
Cash Paid During the Period For: | |||||
Interest | 4.3 | 7.6 | |||
Income Taxes, Net of Refunds | 9.6 | 16.2 | |||
Operating Lease Obligations | $ 6.7 | $ 6.5 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Jan. 30, 2021 | |
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 Description of Business Methode Electronics, Inc. (the "Company" or "Methode") is a global developer of custom engineered and application specific products and solutions with manufacturing, design and testing facilities in Belgium, Canada, China, Egypt, Germany, India, Italy, Lebanon, Malta, Mexico, the Netherlands, Singapore, Switzerland, the United Kingdom and the United States. The Company's primary manufacturing facilities are located in Dongguan and Shanghai, China; Cairo, Egypt; Mriehel, Malta; and Monterrey, Mexico. The Company designs, manufactures and markets devices employing electrical, electronic, LED lighting, sensors and radio remote control technologies. Impact of COVID-19 The COVID-19 pandemic has negatively affected the global economy, disrupted global supply chains, and created significant volatility and disruptions to capital and credit markets in the global financial markets. The Company began to see the impacts of the COVID-19 pandemic at the beginning of its fourth quarter of fiscal 2020 at its China manufacturing facilities, which were initially closed after the Chinese New Year. The Company’s manufacturing facilities in China resumed operations later in the fourth quarter of fiscal 2020, but at lower capacity utilization. However, the major impact to the Company’s business from the COVID-19 pandemic began in mid-March 2020, as the Company’s operations in North America and Europe were adversely impacted by many customers suspending their manufacturing operations due to the COVID-19 pandemic. In the first quarter of fiscal 2021, the Company’s operations in North America and Europe gradually resumed operations, however production levels were still significantly reduced, resulting in lower capacity utilization. In the second quarter of fiscal 2021, production levels returned to pre-COVID levels as a result of increased demand from customers, which continued in the third quarter of fiscal 2021. However, towards the end of the Company’s third quarter of fiscal 2021, many automotive companies announced a slowdown in their production schedules due to a worldwide semiconductor supply shortage. The semiconductor supply shortage is also impacting the Company’s supply chain and its ability to meet demand at some of its non-automotive customers. The Company expects this semiconductor shortage will likely have a short-term impact on its operating results and financial condition in the fourth quarter of fiscal 2021 and possibly into fiscal 2022. Various government programs have been enacted to provide assistance to businesses impacted by the COVID-19 pandemic. The amount of assistance the Company received was $2.7 million and $8.9 million in the three and nine months ended January 30, 2021, respectively, and has been reported as other income. The Company assessed certain accounting matters that require consideration of forecasted financial information, including, but not limited to, its allowance for credit losses, the carrying value of the Company's goodwill, identifiable intangible assets, and other long-lived assets, and valuation allowances in context with the information reasonably available to the Company and the unknown future impacts of the COVID-19 pandemic as of January 30, 2021 January 30, 2021 January 30, 2021 At this time, the ultimate impact of the COVID-19 pandemic cannot be reasonably estimated due to the uncertainty about the extent and duration of the spread of the virus. Therefore, it is possible the COVID-19 pandemic could still have an adverse impact on the Company’s future business, operating results and financial condition. Basis of Presentation The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). All intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP") have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments, except as otherwise disclosed) that management believes are necessary for a fair presentation of the results of operations, financial position and cash flows of the Company for the interim periods presented. These financial statements should be read in conjunction with the consolidated financial statements included in the Company's Form 10-K for the year ended May 2 , 20 20 , filed with the SEC on June 30 , 20 20 . Results may vary from quarter-to-quarter for reasons other than seasonality. 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 2021 is a 52-week year and fiscal 2020 was a 53-week year. For the three months ended January 30, 2021 13 weeks 14 weeks January 30, 2021 39 weeks 40 weeks Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Actual results could differ from these estimates. Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 1, "Description of Business and Summary of Significant Accounting Policies," to the consolidated financial statements included in the Company's Form 10-K for the year ended May 2, 2020. There have been no material changes to the significant accounting policies in the nine months ended January 30, 2021 Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “ Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments The Company adopted this guidance as of May 3, 2020. The guidance allows for various methods for measuring expected credit losses. The Company elected to apply a historical loss rate based on historic write-offs to aging categories. The historical loss rate will be adjusted for current conditions and reasonable and supportable forecasts of future losses as necessary. The adoption of the guidance did not have a material impact on the Company's condensed consolidated financial statements. The allowance for doubtful accounts balance was $0.8 million and $0.6 million as of January 30, 2021 and May 2, 2020, respectively In August 2018, the FASB issued ASU 2018-15, " Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships that reference LIBOR or another rate that is expected to be discontinued , subject to meeting certain criteria . ASU 2020-04 was effective upon issuance and generally can be applied prospectively through December 31, 2022. The Company does not expect a material effect from the adoption of this guidance on its cond ensed consolidated financial statements . New Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, " Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740) |
Revenue
Revenue | 9 Months Ended |
Jan. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 2. Revenue 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. Revenues associated with products which the Company believes have no alternative use, and where the Company has an enforceable right to payment, are recognized on an over time basis. The Company believes the most faithful depiction of the transfer of goods to the customer is based on progress to date, which is typically smooth throughout the production process. As such, the Company recognizes revenue evenly over the production process through transfer of control to the customer. Customers typically 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. The Company treats shipping and handling costs as an activity necessary to fulfill the performance obligation to transfer product to the customer and not as a separate performance obligation. Across all products, the amount of revenue recognized corresponds to the related purchase order. Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. Contract Balances 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 an entity has received consideration, or the amount is due from the customer in advance of revenue recognition. The net changes in the contract asset and contract liability balances for the three and nine months ended January 30, 2021 and February 1, 2020 were not material. Disaggregated Revenue Information Geographic net sales are determined based on the Company's operational locations. Though revenue recognition patterns and contract provisions 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. Three Months Ended January 30, 2021 (13 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: North America $ 107.7 $ 36.6 $ 17.4 $ 0.7 $ 162.4 Europe & Africa 60.1 18.0 — — 78.1 Asia 42.7 11.9 0.2 — 54.8 Total Net Sales $ 210.5 $ 66.5 $ 17.6 $ 0.7 $ 295.3 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 198.9 $ 66.5 $ 17.6 $ 0.7 $ 283.7 Goods Transferred Over Time 11.6 — — — 11.6 Total Net Sales $ 210.5 $ 66.5 $ 17.6 $ 0.7 $ 295.3 Three Months Ended February 1, 2020 (14 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: North America $ 130.3 $ 38.4 $ 14.6 $ 0.6 $ 183.9 Europe & Africa 57.2 12.2 0.1 — 69.5 Asia 22.8 9.5 0.2 — 32.5 Total Net Sales $ 210.3 $ 60.1 $ 14.9 $ 0.6 $ 285.9 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 198.6 $ 60.1 $ 14.9 $ 0.6 $ 274.2 Goods Transferred Over Time 11.7 — — — 11.7 Total Net Sales $ 210.3 $ 60.1 $ 14.9 $ 0.6 $ 285.9 Nine Months Ended January 30, 2021 (39 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: North America $ 301.8 $ 99.0 $ 46.8 $ 1.9 $ 449.5 Europe & Africa 147.1 47.5 — — 194.6 Asia 102.4 39.9 0.6 — 142.9 Total Net Sales $ 551.3 $ 186.4 $ 47.4 $ 1.9 $ 787.0 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 525.7 $ 186.4 $ 47.4 $ 1.9 $ 761.4 Goods Transferred Over Time 25.6 — — — 25.6 Total Net Sales $ 551.3 $ 186.4 $ 47.4 $ 1.9 $ 787.0 Nine Months Ended February 1, 2020 (40 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: North America $ 358.6 $ 133.2 $ 38.9 $ 1.2 $ 531.9 Europe & Africa 158.9 36.6 0.3 — 195.8 Asia 59.1 26.0 0.5 — 85.6 Total Net Sales $ 576.6 $ 195.8 $ 39.7 $ 1.2 $ 813.3 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 546.3 $ 195.8 $ 39.7 $ 1.2 $ 783.0 Goods Transferred Over Time 30.3 — — — 30.3 Total Net Sales $ 576.6 $ 195.8 $ 39.7 $ 1.2 $ 813.3 |
Restructuring
Restructuring | 9 Months Ended |
Jan. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | Note 3 . Restructuring The Company continually monitors market factors and industry trends and takes necessary actions to reduce overall costs and improve operational profitability. In the three and nine months ended January 30, 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. In the three months ended January 30, 2021, the Company recognized $0.7 million of restructuring costs. These charges consist of $0.4 million recorded in cost of products sold and $0.3 million recorded in selling and administrative expenses. In the nine months ended January 30, 2021, the Company recognized $8.3 million of restructuring costs. These charges consist of $5.0 million recorded in cost of products sold and $3.3 million recorded in selling and administrative expenses. 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 right-of-use lease assets and equipment. Contract termination costs are recorded when notification of termination is given to the other party. The following is a rollforward of the Company's restructuring activity for the nine months ended January 30, 2021: Utilization (Dollars in Millions) Accrual as of May 2, 2020 YTD Charges Cash Non-cash Accrual as of January 30, 2021 Employee Termination Benefits $ 0.2 $ 7.1 $ (6.5 ) $ — $ 0.8 Asset Impairment Charges — 0.6 — (0.6 ) — Contract Termination Costs — 0.6 — — 0.6 Total $ 0.2 $ 8.3 $ (6.5 ) $ (0.6 ) $ 1.4 The table below presents restructuring costs by reportable segment: Three Months Ended Nine Months Ended January 30, 2021 February 1, 2020 January 30, 2021 February 1, 2020 (Dollars in Millions) (13 Weeks) (14 Weeks) (39 Weeks) (40 Weeks) Automotive $ 0.5 $ 0.5 $ 6.4 $ 0.7 Industrial — 0.2 0.9 0.4 Interface — — 0.7 — Medical — — — 0.1 Eliminations/Corporate 0.2 0.4 0.3 0.4 Total Restructuring Costs $ 0.7 $ 1.1 $ 8.3 $ 1.6 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 expects to incur additional restructuring costs of approximately $0.2 million during the current fiscal year related to the initiated restructuring programs and may take additional restructuring actions in future periods based upon market conditions and industry trends. |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4 . Income Taxes The provision for income taxes for an interim period is based on an estimated annual effective income tax rate and this rate is applied to ordinary year-to-date earnings or losses. The estimated annual effective income tax rate is determined excluding the effects of unusual or significant one-time items that are reported net of the related tax effects in the period in which they occur. In addition, any material effects of enacted tax law or rate changes as well as the Company’s ability to utilize various tax assets is recognized in the period in which the change occurs. The computation of the estimated annual effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year by jurisdiction, certain book to tax adjustments, and the likelihood of the realizability of deferred tax assets generated in the current year. The volatile global economic conditions resulting from the COVID-19 pandemic, the impacts of which are difficult to predict, may cause fluctuations in the Company’s expected pre-tax income (or loss) for the year, which could create volatility in the estimated annual effective income tax rate. The estimates used to compute the provision or benefit for income taxes may change as new events occur, additional information is obtained or as the Company’s tax environment changes. The Company’s income tax expense and effective tax rate for the three and nine months ended January 30, 2021 and February 1, 2020 were as follows: Three Months Ended Nine Months Ended January 30, 2021 February 1, 2020 January 30, 2021 February 1, 2020 (Dollars in Millions) (13 Weeks) (14 Weeks) (39 Weeks) (40 Weeks) Income before Income Taxes $ 36.5 $ 44.0 $ 98.3 $ 108.6 Income Tax Expense $ 4.6 $ 2.8 $ 7.1 $ 15.3 Effective Tax Rate 12.6 % 6.4 % 7.2 % 14.1 % The income tax provision for the three months ended January 30, 2021 was lower than the U.S. statutory tax rate primarily due to foreign operations with lower statutory tax rates. The income tax provision for the nine months ended January 30, 2021 benefited from various tax credits earned in foreign jurisdictions and foreign operations with lower statutory tax rates. The income tax provision for both the three and nine months ended February 1, 2020 was lower than the U.S. statutory tax rate primarily due to beneficial changes related to U.S. Tax Reform and foreign operations with lower statutory rates. The Company's unrecognized income tax benefits were $5.2 million as of both January 30, 2021 and May 2, 2020. If any portion of the Company’s unrecognized tax benefits is recognized, it would impact the Company’s effective tax rate. The unrecognized tax benefits are reviewed periodically and adjusted for changing facts and circumstances, such as tax audits, lapse of applicable statutes of limitations and changes in tax law. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Jan. 30, 2021 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Note 5. Balance Sheet Components 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. A summary of inventories is shown below: (Dollars in Millions) January 30, 2021 May 2, 2020 Finished Products $ 25.0 $ 45.7 Work in Process 12.9 10.8 Raw Materials 86.1 74.5 Total Inventories $ 124.0 $ 131.0 Property, Plant and Equipment Property, plant and equipment is stated at cost. Maintenance and repair costs are expensed as incurred. Depreciation is calculated using the straight-line method using estimated useful lives of 5 to 40 years for buildings and building improvements and 3 to 15 years for machinery and equipment. A summary of property, plant and equipment is shown below: (Dollars in Millions) January 30, 2021 May 2, 2020 Land $ 3.4 $ 3.3 Buildings and Building Improvements 84.5 87.3 Machinery and Equipment 440.6 412.3 Total Property, Plant and Equipment, Gross 528.5 502.9 Less: Accumulated Depreciation (323.1 ) (301.0 ) Property, Plant and Equipment, Net $ 205.4 $ 201.9 Depreciation expense was $8.7 million and $7.5 million in the three months ended January 30, 2021 and February 1, 2020, respectively. Depreciation expense was $23.7 million and $21.7 million in the nine months ended January 30, 2021 and February 1, 2020, respectively. As of January 30, 2021 and May 2, 2020, capital expenditures recorded in accounts payable totaled $1.1 million and $5.8 million, respectively. Pre-Production Tooling Costs Related to Long-term Supply Arrangements The Company incurs pre-production tooling costs related to certain products produced for its customers under long-term supply arrangements. As of January 30, 2021 and May 2, 2020, the Company had $22.6 million and $37.1 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. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred, unless the costs are reimbursable, as specified in a customer contract. As of January 30, 2021 and May 2, 2020, the Company had $16.3 million and $19.0 million, respectively, of Company owned pre-production tooling, which is capitalized within property, plant and equipment. Derivative Instruments and Hedging Activities The Company is exposed to foreign currency risks that arise from normal business operations. The Company strives to control its exposure to these risks through our normal operating activities and, where appropriate, through derivative instruments. The Company does not hold derivative instruments for trading or speculative purposes. The Company recognizes derivative instruments as either assets or liabilities in the condensed consolidated balance sheets at fair value and classifies the derivatives within Level 2 in the fair value hierarchy. Net Investment Hedges In April 2020, the Company entered into 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 a euro-based subsidiary. The Company entered into the cross-currency swap to mitigate changes in net assets due to changes in U.S. dollar-euro spot exchange rates. T he cross-currency swap was in a liability position with an aggregate fair value of $7.5 million and $1.3 million as of January 30, 2021 and May 2, 2020 , respectively, and is recorded within other long-term liabilities in the condensed consolidated balance sheets. Hedge effectiveness is assessed at the inception of the hedging relationship and quarterly thereafter, under the spot-to-spot method. The Company records changes in fair value attributable to the translation of foreign currencies through accumulated other comprehensive income (loss). The Company recognizes the impact of all other changes in fair value of the derivative through interest expense, which was not material in the three and nine months ended January 30, 2021. Derivatives Not Designated as Hedges In January 2021, the Company began to use 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 co ntracts are recognized in other income (expense), net, along with the foreign currency gains and losses on monetary assets and liabilities in the condensed consolidated statements of income . As of January 30, 2021 January 30, 2021 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jan. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6. Goodwill A summary of the changes in the carrying amount of goodwill, by segment, is shown below: (Dollars in Millions) Automotive Industrial Total Balance as of May 2, 2020 $ 106.2 $ 125.4 $ 231.6 Foreign Currency Translation 0.6 2.6 3.2 Balance as of January 30, 2021 $ 106.8 $ 128.0 $ 234.8 The Company tests indefinite-lived intangible assets and goodwill for impairment by either performing a qualitative evaluation or a quantitative test at least annually, or more frequently if an indication of impairment arises. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit or asset is less than its carrying amount. During the third quarter of fiscal 2021, the Company evaluated the effects of the COVID-19 pandemic and its negative impact on the global economy on each of the Company’s reporting units and indefinite-lived intangible assets. Management reviewed key assumptions, including revisions of projected future revenues for reporting units and the results of the previous annual impairment testing performed during the fourth quarter of fiscal 2020. The Company did not identify an indication of impairment for any of its reporting units or indefinite-lived intangible assets. Although it was determined that a triggering event had not occurred as of January 30, 2021, management will continue to monitor the impacts of the COVID-19 pandemic on the Company and significant changes in key assumptions that could result in future period impairment charges. Other Intangible Assets, Net Details of identifiable intangible assets are shown below: As of January 30, 2021 (Dollars in Millions) Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Definite-lived Intangible Assets: Customer Relationships and Agreements $ 246.7 $ (51.2 ) $ 195.5 15.8 Trade Names, Patents and Technology Licenses 76.1 (39.7 ) 36.4 7.2 Total Definite-lived Intangible Assets 322.8 (90.9 ) 231.9 Indefinite-lived Intangible Assets: Trade Names, Patents and Technology Licenses 1.8 — 1.8 Total Indefinite-lived Intangible Assets 1.8 — 1.8 Total Other Intangible Assets $ 324.6 $ (90.9 ) $ 233.7 As of May 2, 2020 (Dollars in Millions) Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Definite-lived Intangible Assets: Customer Relationships and Agreements $ 243.5 $ (40.8 ) $ 202.7 16.5 Trade Names, Patents and Technology Licenses 75.3 (35.0 ) 40.3 7.8 Total Definite-lived Intangible Assets 318.8 (75.8 ) 243.0 Indefinite-lived Intangible Assets: Trade Names, Patents and Technology Licenses 1.8 — 1.8 Total Indefinite-lived Intangible Assets 1.8 — 1.8 Total Other Intangible Assets $ 320.6 $ (75.8 ) $ 244.8 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: (Dollars in Millions) Fiscal Year: Remainder of 2021 $ 4.8 2022 19.2 2023 19.1 2024 18.7 2025 18.2 Thereafter 151.9 Total $ 231.9 |
Debt
Debt | 9 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 7. Debt A summary of debt is shown below: (Dollars in Millions) January 30, 2021 May 2, 2020 Revolving Credit Facility $ 9.7 $ 108.5 Term Loan 221.9 231.2 Other Debt 14.7 14.6 Unamortized Debt Issuance Costs (1.7 ) (2.2 ) Total Debt 244.6 352.1 Less: Current Maturities (15.4 ) (15.3 ) Total Long-term Debt $ 229.2 $ 336.8 Revolving Credit Facility/Term Loan The Company is a party to an Amended and Restated Credit Agreement (“Credit Agreement”) with Bank of America, N.A., as Administrative Agent, and Wells Fargo Bank, N.A. The Credit Agreement terminates in September 2023 and consists of a senior unsecured revolving credit facility (“Revolving Credit Facility”) of $200.0 million and a senior unsecured term loan (“Term Loan”) of $250.0 million. In addition, the Company has an option to increase the size of the Revolving Credit Facility and Term Loan by up to an additional $200.0 million, subject to customary conditions and approval of the lenders providing new commitments. The Credit Agreement is guaranteed by the Company’s wholly-owned U.S. subsidiaries. For the Term Loan, the Company is required to make quarterly principal payments of 1.25% of the original Term Loan ($3.1 million) through maturity, with the remaining balance due on September 12, 2023. Outstanding borrowings under the Credit Agreement bear interest at variable rates based on the type of borrowing and the Company’s debt to EBITDA financial ratio, as defined in the Credit Agreement. The weighted-average interest rate on outstanding borrowings under the Credit Agreement was 1.63% at January 30, 2021. The Credit Agreement contains customary representations and warranties, financial covenants, restrictive covenants and events of default. As of January 30, 2021, the Company was in compliance with all the covenants in the Credit Agreement. Other Debt One of the Company’s European subsidiaries has debt that consists of 14 notes with maturities ranging from 2021 to 2031. The weighted-average interest rate on this debt was approximately 1.47% at January 30, 2021 and $2.9 million of the debt was classified as short-term. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jan. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shareholders' Equity | Note 8. Dividends The Company paid dividends totaling $4.1 million and $4.0 million in the three months ended January 30, 2021 and February 1, 2020, respectively. The Company paid dividends totaling $13.2 million and $12.2 million in the nine months ended January 30, 2021 and February 1, 2020, respectively. Dividends paid in the nine months ended January 30, 2021 include $0.9 million of dividends on restricted stock that vested during the period. 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: Three Months Ended Nine Months Ended January 30, 2021 February 1, 2020 January 30, 2021 February 1, 2020 (Dollars in Millions) (13 Weeks) (14 Weeks) (39 Weeks) (40 Weeks) Currency Translation Adjustments: Balance at Beginning of Period $ (4.2 ) $ (18.0 ) $ (25.9 ) $ (13.6 ) Other Comprehensive Income (Loss) Recognized During the Period, Net of Tax Expense of $0.3 million; $—; $0.6 million; $— 18.2 1.6 39.9 (2.8 ) Balance at End of Period 14.0 (16.4 ) 14.0 (16.4 ) Derivative Instruments: Balance at Beginning of Period (3.7 ) — (1.0 ) — Other Comprehensive Loss Recognized During the Period, Net of Tax Benefit of $0.6 million; $—; $1.5 million; $— (2.1 ) — (4.8 ) — Balance at End of Period (5.8 ) — (5.8 ) — Accumulated Other Comprehensive Income (Loss), End of Period $ 8.2 $ (16.4 ) $ 8.2 $ (16.4 ) Stock-based Compensation The Company has granted stock options, performance-based restricted stock (“PSAs”), performance units (“PUs”), restricted stock units (“RSUs”) and stock awards to employees and non-employee directors under the Methode Electronics, Inc. 2014 Omnibus Incentive Plan (“2014 Plan”), the Methode Electronics, Inc. 2010 Stock Plan (“2010 Plan”), the Methode Electronics, Inc. 2007 Stock Plan (“2007 Plan”) and the Methode Electronics, Inc. 2004 Stock Plan (“2004 Plan”). The Company can no longer make grants under the 2010 Plan, 2007 Plan and 2004 Plan. The number of shares of common stock originally authorized under the 2014 Plan is 3,000,000. As of January 30, 2021, there were 196,288 shares available for award under the 2014 Plan. The Company accounts for stock-based compensation under the fair-value method. Accordingly, equity-classified stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as compensation cost over the requisite service period. The requisite service period generally matches the stated vesting period of the award but may be shorter if the employee is retirement-eligible and, under the award’s terms, may fully vest upon retirement from the Company. The Company recognizes compensation cost for awards that have graded vesting features under the graded vesting method, which considers each separately vesting tranche as though they were, in substance, multiple awards. Performance-based Restricted Stock (“PSAs”) and Performance Units (“PUs”) In the second quarter of fiscal 2021, the Company granted 917,000 PSAs to executive officers and certain non-executives which will be earned based on the achievement of an earnings before net interest, taxes, fixed asset depreciation and intangible asset amortization (“EBITDA”) measure for fiscal 2025. The PSAs 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, an additional 458,500 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 PSAs was based on the closing stock price on the date of grant and earn dividend equivalents during the vesting period, which are forfeitable if the PSAs do not vest. Compensation expense for PSAs are recognized when it is probable the minimum threshold performance criteria will be achieved. Compensation expense for the PUs are recognized when it is probable that the target performance criteria will be achieved. 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, compensation expense has not been recognized for the PSAs or PUs in the three and nine months ended January 30, 2021, as the performance conditions are not probable of being met. Restricted Stock Units (“RSUs”) RSUs granted under the 2014 Plan vest over a pre-determined period of time, up to five years. In the second quarter of fiscal 2021, the Company granted 938,300 RSUs to executive officers and certain non-executives. The fair value of the RSUs was 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 under the 2014 Plan: RSU Shares Wtd. Avg. Grant Date Fair Value Non-vested at May 2, 2020 3,100 $ 41.20 Awarded 938,300 $ 28.30 Vested — $ — Forfeited — $ — Non-vested at January 30, 2021 941,400 $ 28.34 Under the various stock plans, common stock underlying vested RSUs held by certain executives will not be delivered until termination of employment or a change of control of the Company. As of January 30, 2021, common stock to be delivered to these executives totaled 577,055 shares. Director Awards In the nine months ended January 30, 2021 and February 1, 2020, the Company granted 33,000 shares and 30,000 shares, respectively, of common stock to its non-employee directors under the 2014 Plan. The shares vested immediately upon grant. The fair value was determined based on the closing price of the Company’s stock on the date of grant. Stock Options The following table summarizes combined stock option activity under the 2010 Plan and 2007 Plan: Shares Wtd. Avg. Exercise Price Outstanding and Exercisable at May 2, 2020 106,668 $ 35.76 Exercised (5,000 ) $ 10.55 Forfeited (1,668 ) $ 37.01 Outstanding and Exercisable at January 30, 2021 100,000 $ 37.01 Stock-based Compensation Expense All stock-based awards to employees and non-employee directors are recognized in selling and administrative expenses on the condensed consolidated statements of income. The following table summarizes the stock-based compensation expense related to the equity awards: Three Months Ended Nine Months Ended January 30, 2021 February 1, 2020 January 30, 2021 February 1, 2020 (Dollars in Millions) (13 Weeks) (14 Weeks) (39 Weeks) (40 Weeks) PSAs $ — $ 1.3 $ — $ 3.6 RSUs 2.4 0.3 3.4 1.1 Director Awards — — 0.9 0.9 Total Stock-based Compensation Expense $ 2.4 $ 1.6 $ 4.3 $ 5.6 |
Income per Share
Income per Share | 9 Months Ended |
Jan. 30, 2021 | |
Earnings Per Share [Abstract] | |
Income per Share | Note 9. Income per Share Basic income per share is calculated by dividing net income by the weighted average number of common shares outstanding for the applicable period, but excludes any contingently issued shares where the contingency has not been resolved. 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: Three Months Ended Nine Months Ended January 30, 2021 February 1, 2020 January 30, 2021 February 1, 2020 (13 Weeks) (14 Weeks) (39 Weeks) (40 Weeks) Numerator: Net Income (in millions) $ 31.9 $ 41.2 $ 91.2 $ 93.3 Denominator: Denominator for Basic Income per Share-Weighted Average Shares Outstanding and Vested/Unissued RSUs 38,106,793 37,587,742 38,016,711 37,570,423 Dilutive Potential Common Shares-Employee Stock Options, PSAs and RSUs 293,303 166,229 211,974 150,093 Denominator for Diluted Income per Share 38,400,096 37,753,971 38,228,685 37,720,516 Basic and Diluted Income per Share: Basic Income per Share $ 0.84 $ 1.10 $ 2.40 $ 2.48 Diluted Income per Share $ 0.83 $ 1.09 $ 2.39 $ 2.47 Number of Anti-dilutive Potentially Issuable Shares Excluded from Diluted Common Shares Outstanding 917,000 646,075 678,556 721,604 |
Segment Information
Segment Information | 9 Months Ended |
Jan. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 10. 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 Company has four reporting segments as described below. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile OEMs, either directly or through their tiered suppliers. Products include integrated center consoles, hidden switches, ergonomic switches, transmission lead-frames, LED-based lighting and sensors, which incorporate magneto-elastic sensing and other technologies that monitor the operation or status of a component or system. The Industrial segment manufactures external lighting solutions, industrial safety radio remote controls, braided flexible cables, current-carrying laminated busbars and devices, custom power-product assemblies, such as our PowerRail® solution, high-current low-voltage flexible power cabling systems and powder-coated busbars that are used in various markets and applications, including aerospace, computers, industrial, power conversion, military, telecommunications and transportation. The Interface segment provides a variety of copper and fiber-optic interface and interface solutions for the appliance, commercial food service, construction, consumer, material handling, point-of-sale and telecommunications markets. Solutions include copper transceivers and solid-state field-effect consumer touch panels. 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 tables below present information about the Company's reportable segments: Three Months Ended January 30, 2021 (13 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations /Corporate Consolidated Net Sales $ 211.7 $ 68.3 $ 17.6 $ 0.7 $ (3.0 ) $ 295.3 Transfers between Segments (1.2 ) (1.8 ) — — 3.0 — Net Sales to Unaffiliated Customers $ 210.5 $ 66.5 $ 17.6 $ 0.7 $ — $ 295.3 Income (Loss) from Operations $ 29.6 $ 16.9 $ 3.2 $ (1.0 ) $ (13.3 ) $ 35.4 Interest Expense, Net 1.3 Other Income, Net (2.4 ) Income before Income Taxes $ 36.5 Three Months Ended February 1, 2020 (14 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations /Corporate Consolidated Net Sales $ 211.5 $ 60.8 $ 14.9 $ 0.6 $ (1.9 ) $ 285.9 Transfers between Segments (1.2 ) (0.7 ) — — 1.9 — Net Sales to Unaffiliated Customers $ 210.3 $ 60.1 $ 14.9 $ 0.6 $ — $ 285.9 Income (Loss) from Operations $ 39.2 $ 13.2 $ 0.7 $ (1.6 ) $ (10.0 ) $ 41.5 Interest Expense, Net 2.4 Other Income, Net (4.9 ) Income before Income Taxes $ 44.0 Nine Months Ended January 30, 2021 (39 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations /Corporate Consolidated Net Sales $ 555.0 $ 190.2 $ 47.4 $ 1.9 $ (7.5 ) $ 787.0 Transfers between Segments (3.7 ) (3.8 ) — — 7.5 — Net Sales to Unaffiliated Customers $ 551.3 $ 186.4 $ 47.4 $ 1.9 $ — $ 787.0 Income (Loss) from Operations $ 83.7 $ 40.0 $ 7.4 $ (4.1 ) $ (32.8 ) $ 94.2 Interest Expense, Net 4.3 Other Income, Net (8.4 ) Income before Income Taxes $ 98.3 Nine Months Ended February 1, 2020 (40 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations /Corporate Consolidated Net Sales $ 580.3 $ 197.8 $ 39.8 $ 1.2 $ (5.8 ) $ 813.3 Transfers between Segments (3.7 ) (2.0 ) (0.1 ) — 5.8 — Net Sales to Unaffiliated Customers $ 576.6 $ 195.8 $ 39.7 $ 1.2 $ — $ 813.3 Income (Loss) from Operations $ 101.2 $ 44.8 $ 0.7 $ (4.9 ) $ (31.0 ) $ 110.8 Interest Expense, Net 8.0 Other Income, Net (5.8 ) Income before Income Taxes $ 108.6 (Dollars in Millions) January 30, 2021 May 2, 2020 Identifiable Assets: Automotive $ 797.1 $ 670.9 Industrial 452.6 421.8 Interface 67.3 71.0 Medical 7.4 8.8 Eliminations/Corporate 120.1 198.1 Total Identifiable Assets $ 1,444.5 $ 1,370.6 |
Contingencies
Contingencies | 9 Months Ended |
Jan. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | Note 11. Certain litigation arising in the normal course of business is pending against us. The Company is, from time-to-time, subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, employment-related matters, environmental matters and intellectual property matters. 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 Company's opinion, based on the information available, that it has adequate reserves for these liabilities. Hetronic Germany-GmbH Matters For several years, Hetronic Germany-GmbH and Hydronic-Steuersysteme-GmbH (the “Fuchs companies”) served as our distributors for Germany, Austria and other central and eastern European countries pursuant to their respective intellectual property licenses and distribution and assembly agreements. 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 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 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 have been consolidated into a single appeal. That appeal is fully briefed and has been set for argument on March 8, 2021. The Court will issue a decision sometime thereafter. The Company is working with counsel to collect on the judgment though there are challenges in Europe in doing so while the appeal is pending. Like any judgment, particularly any judgment involving defendants outside of the United States, there is no guarantee that the Company will be able to collect the judgment . |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jan. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). All intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP") have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments, except as otherwise disclosed) that management believes are necessary for a fair presentation of the results of operations, financial position and cash flows of the Company for the interim periods presented. These financial statements should be read in conjunction with the consolidated financial statements included in the Company's Form 10-K for the year ended May 2 , 20 20 , filed with the SEC on June 30 , 20 20 . Results may vary from quarter-to-quarter for reasons other than seasonality. |
Financial Reporting Periods | 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 2021 is a 52-week year and fiscal 2020 was a 53-week year. For the three months ended January 30, 2021 13 weeks 14 weeks January 30, 2021 39 weeks 40 weeks |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Actual results could differ from these estimates. |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 1, "Description of Business and Summary of Significant Accounting Policies," to the consolidated financial statements included in the Company's Form 10-K for the year ended May 2, 2020. There have been no material changes to the significant accounting policies in the nine months ended January 30, 2021 |
Recently Issued/Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “ Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments The Company adopted this guidance as of May 3, 2020. The guidance allows for various methods for measuring expected credit losses. The Company elected to apply a historical loss rate based on historic write-offs to aging categories. The historical loss rate will be adjusted for current conditions and reasonable and supportable forecasts of future losses as necessary. The adoption of the guidance did not have a material impact on the Company's condensed consolidated financial statements. The allowance for doubtful accounts balance was $0.8 million and $0.6 million as of January 30, 2021 and May 2, 2020, respectively In August 2018, the FASB issued ASU 2018-15, " Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships that reference LIBOR or another rate that is expected to be discontinued , subject to meeting certain criteria . ASU 2020-04 was effective upon issuance and generally can be applied prospectively through December 31, 2022. The Company does not expect a material effect from the adoption of this guidance on its cond ensed consolidated financial statements . New Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, " Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740) |
Inventory | 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. |
Property, Plant and Equipment | Property, plant and equipment is stated at cost. Maintenance and repair costs are expensed as incurred. Depreciation is calculated using the straight-line method using estimated useful lives of 5 to 40 years for buildings and building improvements and 3 to 15 years for machinery and equipment. |
Income per Share | Basic income per share is calculated by dividing net income by the weighted average number of common shares outstanding for the applicable period, but excludes any contingently issued shares where the contingency has not been resolved. 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. |
Contingencies | Certain litigation arising in the normal course of business is pending against us. The Company is, from time-to-time, subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, employment-related matters, environmental matters and intellectual property matters. 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 Company's opinion, based on the information available, that it has adequate reserves for these liabilities. |
Revenue | 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. Revenues associated with products which the Company believes have no alternative use, and where the Company has an enforceable right to payment, are recognized on an over time basis. The Company believes the most faithful depiction of the transfer of goods to the customer is based on progress to date, which is typically smooth throughout the production process. As such, the Company recognizes revenue evenly over the production process through transfer of control to the customer. Customers typically 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. The Company treats shipping and handling costs as an activity necessary to fulfill the performance obligation to transfer product to the customer and not as a separate performance obligation. Across all products, the amount of revenue recognized corresponds to the related purchase order. Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Jan. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenue Information | Geographic net sales are determined based on the Company's operational locations. Though revenue recognition patterns and contract provisions 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. Three Months Ended January 30, 2021 (13 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: North America $ 107.7 $ 36.6 $ 17.4 $ 0.7 $ 162.4 Europe & Africa 60.1 18.0 — — 78.1 Asia 42.7 11.9 0.2 — 54.8 Total Net Sales $ 210.5 $ 66.5 $ 17.6 $ 0.7 $ 295.3 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 198.9 $ 66.5 $ 17.6 $ 0.7 $ 283.7 Goods Transferred Over Time 11.6 — — — 11.6 Total Net Sales $ 210.5 $ 66.5 $ 17.6 $ 0.7 $ 295.3 Three Months Ended February 1, 2020 (14 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: North America $ 130.3 $ 38.4 $ 14.6 $ 0.6 $ 183.9 Europe & Africa 57.2 12.2 0.1 — 69.5 Asia 22.8 9.5 0.2 — 32.5 Total Net Sales $ 210.3 $ 60.1 $ 14.9 $ 0.6 $ 285.9 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 198.6 $ 60.1 $ 14.9 $ 0.6 $ 274.2 Goods Transferred Over Time 11.7 — — — 11.7 Total Net Sales $ 210.3 $ 60.1 $ 14.9 $ 0.6 $ 285.9 Nine Months Ended January 30, 2021 (39 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: North America $ 301.8 $ 99.0 $ 46.8 $ 1.9 $ 449.5 Europe & Africa 147.1 47.5 — — 194.6 Asia 102.4 39.9 0.6 — 142.9 Total Net Sales $ 551.3 $ 186.4 $ 47.4 $ 1.9 $ 787.0 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 525.7 $ 186.4 $ 47.4 $ 1.9 $ 761.4 Goods Transferred Over Time 25.6 — — — 25.6 Total Net Sales $ 551.3 $ 186.4 $ 47.4 $ 1.9 $ 787.0 Nine Months Ended February 1, 2020 (40 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: North America $ 358.6 $ 133.2 $ 38.9 $ 1.2 $ 531.9 Europe & Africa 158.9 36.6 0.3 — 195.8 Asia 59.1 26.0 0.5 — 85.6 Total Net Sales $ 576.6 $ 195.8 $ 39.7 $ 1.2 $ 813.3 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 546.3 $ 195.8 $ 39.7 $ 1.2 $ 783.0 Goods Transferred Over Time 30.3 — — — 30.3 Total Net Sales $ 576.6 $ 195.8 $ 39.7 $ 1.2 $ 813.3 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Jan. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring Activity | The following is a rollforward of the Company's restructuring activity for the nine months ended January 30, 2021: Utilization (Dollars in Millions) Accrual as of May 2, 2020 YTD Charges Cash Non-cash Accrual as of January 30, 2021 Employee Termination Benefits $ 0.2 $ 7.1 $ (6.5 ) $ — $ 0.8 Asset Impairment Charges — 0.6 — (0.6 ) — Contract Termination Costs — 0.6 — — 0.6 Total $ 0.2 $ 8.3 $ (6.5 ) $ (0.6 ) $ 1.4 |
Schedule Of Restructuring Costs by Reportable Segment Table Text Block | The table below presents restructuring costs by reportable segment: Three Months Ended Nine Months Ended January 30, 2021 February 1, 2020 January 30, 2021 February 1, 2020 (Dollars in Millions) (13 Weeks) (14 Weeks) (39 Weeks) (40 Weeks) Automotive $ 0.5 $ 0.5 $ 6.4 $ 0.7 Industrial — 0.2 0.9 0.4 Interface — — 0.7 — Medical — — — 0.1 Eliminations/Corporate 0.2 0.4 0.3 0.4 Total Restructuring Costs $ 0.7 $ 1.1 $ 8.3 $ 1.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense And Effective Tax Rate | The Company’s income tax expense and effective tax rate for the three and nine months ended January 30, 2021 and February 1, 2020 were as follows: Three Months Ended Nine Months Ended January 30, 2021 February 1, 2020 January 30, 2021 February 1, 2020 (Dollars in Millions) (13 Weeks) (14 Weeks) (39 Weeks) (40 Weeks) Income before Income Taxes $ 36.5 $ 44.0 $ 98.3 $ 108.6 Income Tax Expense $ 4.6 $ 2.8 $ 7.1 $ 15.3 Effective Tax Rate 12.6 % 6.4 % 7.2 % 14.1 % |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Jan. 30, 2021 | |
Balance Sheet Components [Abstract] | |
Summary of 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. A summary of inventories is shown below: (Dollars in Millions) January 30, 2021 May 2, 2020 Finished Products $ 25.0 $ 45.7 Work in Process 12.9 10.8 Raw Materials 86.1 74.5 Total Inventories $ 124.0 $ 131.0 |
Summary of Property, Plant and Equipment | A summary of property, plant and equipment is shown below: (Dollars in Millions) January 30, 2021 May 2, 2020 Land $ 3.4 $ 3.3 Buildings and Building Improvements 84.5 87.3 Machinery and Equipment 440.6 412.3 Total Property, Plant and Equipment, Gross 528.5 502.9 Less: Accumulated Depreciation (323.1 ) (301.0 ) Property, Plant and Equipment, Net $ 205.4 $ 201.9 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jan. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of the Changes in the Carrying Amount of Goodwill by Segment | A summary of the changes in the carrying amount of goodwill, by segment, is shown below: (Dollars in Millions) Automotive Industrial Total Balance as of May 2, 2020 $ 106.2 $ 125.4 $ 231.6 Foreign Currency Translation 0.6 2.6 3.2 Balance as of January 30, 2021 $ 106.8 $ 128.0 $ 234.8 |
Schedule of Other Intangible Assets, Net | Details of identifiable intangible assets are shown below: As of January 30, 2021 (Dollars in Millions) Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Definite-lived Intangible Assets: Customer Relationships and Agreements $ 246.7 $ (51.2 ) $ 195.5 15.8 Trade Names, Patents and Technology Licenses 76.1 (39.7 ) 36.4 7.2 Total Definite-lived Intangible Assets 322.8 (90.9 ) 231.9 Indefinite-lived Intangible Assets: Trade Names, Patents and Technology Licenses 1.8 — 1.8 Total Indefinite-lived Intangible Assets 1.8 — 1.8 Total Other Intangible Assets $ 324.6 $ (90.9 ) $ 233.7 As of May 2, 2020 (Dollars in Millions) Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Definite-lived Intangible Assets: Customer Relationships and Agreements $ 243.5 $ (40.8 ) $ 202.7 16.5 Trade Names, Patents and Technology Licenses 75.3 (35.0 ) 40.3 7.8 Total Definite-lived Intangible Assets 318.8 (75.8 ) 243.0 Indefinite-lived Intangible Assets: Trade Names, Patents and Technology Licenses 1.8 — 1.8 Total Indefinite-lived Intangible Assets 1.8 — 1.8 Total Other Intangible Assets $ 320.6 $ (75.8 ) $ 244.8 |
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: (Dollars in Millions) Fiscal Year: Remainder of 2021 $ 4.8 2022 19.2 2023 19.1 2024 18.7 2025 18.2 Thereafter 151.9 Total $ 231.9 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt | A summary of debt is shown below: (Dollars in Millions) January 30, 2021 May 2, 2020 Revolving Credit Facility $ 9.7 $ 108.5 Term Loan 221.9 231.2 Other Debt 14.7 14.6 Unamortized Debt Issuance Costs (1.7 ) (2.2 ) Total Debt 244.6 352.1 Less: Current Maturities (15.4 ) (15.3 ) Total Long-term Debt $ 229.2 $ 336.8 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Jan. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
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: Three Months Ended Nine Months Ended January 30, 2021 February 1, 2020 January 30, 2021 February 1, 2020 (Dollars in Millions) (13 Weeks) (14 Weeks) (39 Weeks) (40 Weeks) Currency Translation Adjustments: Balance at Beginning of Period $ (4.2 ) $ (18.0 ) $ (25.9 ) $ (13.6 ) Other Comprehensive Income (Loss) Recognized During the Period, Net of Tax Expense of $0.3 million; $—; $0.6 million; $— 18.2 1.6 39.9 (2.8 ) Balance at End of Period 14.0 (16.4 ) 14.0 (16.4 ) Derivative Instruments: Balance at Beginning of Period (3.7 ) — (1.0 ) — Other Comprehensive Loss Recognized During the Period, Net of Tax Benefit of $0.6 million; $—; $1.5 million; $— (2.1 ) — (4.8 ) — Balance at End of Period (5.8 ) — (5.8 ) — Accumulated Other Comprehensive Income (Loss), End of Period $ 8.2 $ (16.4 ) $ 8.2 $ (16.4 ) |
Summary of Stock-based Compensation Expense Related to Equity Awards | The following table summarizes the stock-based compensation expense related to the equity awards: Three Months Ended Nine Months Ended January 30, 2021 February 1, 2020 January 30, 2021 February 1, 2020 (Dollars in Millions) (13 Weeks) (14 Weeks) (39 Weeks) (40 Weeks) PSAs $ — $ 1.3 $ — $ 3.6 RSUs 2.4 0.3 3.4 1.1 Director Awards — — 0.9 0.9 Total Stock-based Compensation Expense $ 2.4 $ 1.6 $ 4.3 $ 5.6 |
2014 Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of RSA and RSU Activity | The following table summarizes RSU activity under the 2014 Plan: RSU Shares Wtd. Avg. Grant Date Fair Value Non-vested at May 2, 2020 3,100 $ 41.20 Awarded 938,300 $ 28.30 Vested — $ — Forfeited — $ — Non-vested at January 30, 2021 941,400 $ 28.34 |
2010 Plan and 2007 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of combined stock option activity and related information for stock options granted | The following table summarizes combined stock option activity under the 2010 Plan and 2007 Plan: Shares Wtd. Avg. Exercise Price Outstanding and Exercisable at May 2, 2020 106,668 $ 35.76 Exercised (5,000 ) $ 10.55 Forfeited (1,668 ) $ 37.01 Outstanding and Exercisable at January 30, 2021 100,000 $ 37.01 |
Income per Share (Tables)
Income per Share (Tables) | 9 Months Ended |
Jan. 30, 2021 | |
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: Three Months Ended Nine Months Ended January 30, 2021 February 1, 2020 January 30, 2021 February 1, 2020 (13 Weeks) (14 Weeks) (39 Weeks) (40 Weeks) Numerator: Net Income (in millions) $ 31.9 $ 41.2 $ 91.2 $ 93.3 Denominator: Denominator for Basic Income per Share-Weighted Average Shares Outstanding and Vested/Unissued RSUs 38,106,793 37,587,742 38,016,711 37,570,423 Dilutive Potential Common Shares-Employee Stock Options, PSAs and RSUs 293,303 166,229 211,974 150,093 Denominator for Diluted Income per Share 38,400,096 37,753,971 38,228,685 37,720,516 Basic and Diluted Income per Share: Basic Income per Share $ 0.84 $ 1.10 $ 2.40 $ 2.48 Diluted Income per Share $ 0.83 $ 1.09 $ 2.39 $ 2.47 Number of Anti-dilutive Potentially Issuable Shares Excluded from Diluted Common Shares Outstanding 917,000 646,075 678,556 721,604 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jan. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments | The tables below present information about the Company's reportable segments: Three Months Ended January 30, 2021 (13 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations /Corporate Consolidated Net Sales $ 211.7 $ 68.3 $ 17.6 $ 0.7 $ (3.0 ) $ 295.3 Transfers between Segments (1.2 ) (1.8 ) — — 3.0 — Net Sales to Unaffiliated Customers $ 210.5 $ 66.5 $ 17.6 $ 0.7 $ — $ 295.3 Income (Loss) from Operations $ 29.6 $ 16.9 $ 3.2 $ (1.0 ) $ (13.3 ) $ 35.4 Interest Expense, Net 1.3 Other Income, Net (2.4 ) Income before Income Taxes $ 36.5 Three Months Ended February 1, 2020 (14 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations /Corporate Consolidated Net Sales $ 211.5 $ 60.8 $ 14.9 $ 0.6 $ (1.9 ) $ 285.9 Transfers between Segments (1.2 ) (0.7 ) — — 1.9 — Net Sales to Unaffiliated Customers $ 210.3 $ 60.1 $ 14.9 $ 0.6 $ — $ 285.9 Income (Loss) from Operations $ 39.2 $ 13.2 $ 0.7 $ (1.6 ) $ (10.0 ) $ 41.5 Interest Expense, Net 2.4 Other Income, Net (4.9 ) Income before Income Taxes $ 44.0 Nine Months Ended January 30, 2021 (39 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations /Corporate Consolidated Net Sales $ 555.0 $ 190.2 $ 47.4 $ 1.9 $ (7.5 ) $ 787.0 Transfers between Segments (3.7 ) (3.8 ) — — 7.5 — Net Sales to Unaffiliated Customers $ 551.3 $ 186.4 $ 47.4 $ 1.9 $ — $ 787.0 Income (Loss) from Operations $ 83.7 $ 40.0 $ 7.4 $ (4.1 ) $ (32.8 ) $ 94.2 Interest Expense, Net 4.3 Other Income, Net (8.4 ) Income before Income Taxes $ 98.3 Nine Months Ended February 1, 2020 (40 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations /Corporate Consolidated Net Sales $ 580.3 $ 197.8 $ 39.8 $ 1.2 $ (5.8 ) $ 813.3 Transfers between Segments (3.7 ) (2.0 ) (0.1 ) — 5.8 — Net Sales to Unaffiliated Customers $ 576.6 $ 195.8 $ 39.7 $ 1.2 $ — $ 813.3 Income (Loss) from Operations $ 101.2 $ 44.8 $ 0.7 $ (4.9 ) $ (31.0 ) $ 110.8 Interest Expense, Net 8.0 Other Income, Net (5.8 ) Income before Income Taxes $ 108.6 (Dollars in Millions) January 30, 2021 May 2, 2020 Identifiable Assets: Automotive $ 797.1 $ 670.9 Industrial 452.6 421.8 Interface 67.3 71.0 Medical 7.4 8.8 Eliminations/Corporate 120.1 198.1 Total Identifiable Assets $ 1,444.5 $ 1,370.6 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Fiscal period duration | 91 days | 98 days | 273 days | 280 days |
Covid19 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Other Income | $ 2.7 | $ 8.9 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements Costs (Details) - USD ($) $ in Millions | Jan. 30, 2021 | May 02, 2020 |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Allowance for Doubtful Accounts | $ 0.8 | $ 0.6 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 01, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Net Sales | $ 295.3 | $ 285.9 | $ 787 | $ 813.3 | $ 813.3 |
Goods Transferred at a Point in Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 283.7 | 274.2 | 761.4 | 783 | |
Goods Transferred Over Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 11.6 | 11.7 | 25.6 | 30.3 | |
Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 210.5 | 210.3 | 551.3 | 576.6 | |
Auto | Goods Transferred at a Point in Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 198.9 | 198.6 | 525.7 | 546.3 | |
Auto | Goods Transferred Over Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 11.6 | 11.7 | 25.6 | 30.3 | |
Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 66.5 | 60.1 | 186.4 | 195.8 | |
Auto | Goods Transferred at a Point in Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 66.5 | 60.1 | 186.4 | 195.8 | |
Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 17.6 | 14.9 | 47.4 | 39.7 | |
Auto | Goods Transferred at a Point in Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 17.6 | 14.9 | 47.4 | 39.7 | |
Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 0.7 | 0.6 | 1.9 | 1.2 | |
Auto | Goods Transferred at a Point in Time | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 0.7 | 0.6 | 1.9 | 1.2 | |
North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 162.4 | 183.9 | 449.5 | 531.9 | |
North America | Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 107.7 | 130.3 | 301.8 | 358.6 | |
North America | Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 36.6 | 38.4 | 99 | 133.2 | |
North America | Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 17.4 | 14.6 | 46.8 | 38.9 | |
North America | Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 0.7 | 0.6 | 1.9 | 1.2 | |
Europe & Africa | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 78.1 | 69.5 | 194.6 | 195.8 | |
Europe & Africa | Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 60.1 | 57.2 | 147.1 | 158.9 | |
Europe & Africa | Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 18 | 12.2 | 47.5 | 36.6 | |
Europe & Africa | Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 0.1 | 0.3 | |||
Asia | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 54.8 | 32.5 | 142.9 | 85.6 | |
Asia | Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 42.7 | 22.8 | 102.4 | 59.1 | |
Asia | Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | 11.9 | 9.5 | 39.9 | 26 | |
Asia | Auto | |||||
Disaggregation of Revenue [Line Items] | |||||
Net Sales | $ 0.2 | $ 0.2 | $ 0.6 | $ 0.5 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Jan. 30, 2021 | May 02, 2020 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 |
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | $ 1.4 | $ 0.7 | $ 0.2 | $ 1.1 | $ 8.3 | $ 1.6 |
Expected Additional Restructuring Costs | $ 0.2 | 0.2 | 0.2 | |||
Selling and Administrative Expenses [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | 0.3 | 3.3 | ||||
Cost of Products Sold [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | $ 0.4 | $ 5 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Activity (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Jan. 30, 2021 | May 02, 2020 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 |
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | $ 1.4 | $ 0.7 | $ 0.2 | $ 1.1 | $ 8.3 | $ 1.6 |
Cash [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | (6.5) | |||||
Non Cash [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | (0.6) | |||||
Employee Termination Benefits [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | 0.8 | $ 0.2 | 7.1 | |||
Employee Termination Benefits [Member] | Cash [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | (6.5) | |||||
Asset Impairment Charges [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | 0.6 | |||||
Asset Impairment Charges [Member] | Non Cash [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | (0.6) | |||||
Contract Termination [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | $ 0.6 | $ 0.6 |
Restructuring - Schedule of R_2
Restructuring - Schedule of Restructuring Costs by Reportable Segment (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Jan. 30, 2021 | May 02, 2020 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 |
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | $ 1.4 | $ 0.7 | $ 0.2 | $ 1.1 | $ 8.3 | $ 1.6 |
Auto | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | 0.5 | 0.5 | 6.4 | 0.7 | ||
Auto | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | 0.2 | 0.9 | 0.4 | |||
Auto | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | 0.7 | |||||
Auto | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | 0.1 | |||||
Eliminations/Corporate [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring Costs | $ 0.2 | $ 0.4 | $ 0.3 | $ 0.4 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Taxes, Income Tax Expense and Effective Income Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income before Income Taxes | $ 36.5 | $ 44 | $ 98.3 | $ 108.6 | |
Income Tax Expense | $ 4.6 | $ 2.8 | $ 7.1 | $ 15.3 | $ 15.3 |
Effective Tax Rate | 12.60% | 6.40% | 7.20% | 14.10% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Jan. 30, 2021 | May 02, 2020 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 5.2 | $ 5.2 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Inventories (Details) - USD ($) $ in Millions | Jan. 30, 2021 | May 02, 2020 |
Inventory Net Items Net Of Reserve Alternative [Abstract] | ||
Finished Products | $ 25 | $ 45.7 |
Work in Process | 12.9 | 10.8 |
Raw Materials | 86.1 | 74.5 |
Total Inventories | $ 124 | $ 131 |
Balance Sheet Components - Prop
Balance Sheet Components - Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 30, 2021 | May 02, 2020 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | |
Property Plant And Equipment [Line Items] | |||||
Depreciation | $ 8.7 | $ 7.5 | $ 23.7 | $ 21.7 | |
Capital expenditures recorded in accounts payable | $ 5.8 | $ 1.1 | |||
Minimum | Buildings and Building Improvements | |||||
Property Plant And Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 5 years | ||||
Minimum | Machinery and Equipment | |||||
Property Plant And Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Maximum | Buildings and Building Improvements | |||||
Property Plant And Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 40 years | ||||
Maximum | Machinery and Equipment | |||||
Property Plant And Equipment [Line Items] | |||||
Property, plant and equipment, useful life | 15 years |
Balance Sheet Components - Pr_2
Balance Sheet Components - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jan. 30, 2021 | May 02, 2020 |
Property Plant And Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | $ 528.5 | $ 502.9 |
Less: Accumulated Depreciation | (323.1) | (301) |
Property, Plant and Equipment, Net | 205.4 | 201.9 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | 3.4 | 3.3 |
Buildings and Building Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | 84.5 | 87.3 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | $ 440.6 | $ 412.3 |
Balance Sheet Components - Pre-
Balance Sheet Components - Pre-production Tooling Costs Related to Long-term Supply Arrangements - Narrative (Details) - USD ($) $ in Millions | Jan. 30, 2021 | May 02, 2020 |
Preproduction Tooling Costs Relatedto Longterm Supply Arrangements [Abstract] | ||
Pre-production Costs | $ 22.6 | $ 37.1 |
Preproduction costs related to long-term supply arrangements, asset for molds dies and tools owned | $ 16.3 | $ 19 |
Balance Sheet Components - Deri
Balance Sheet Components - Derivative Instruments - Narrative (Details) - Cross-Currency Swap [Member] € in Millions, $ in Millions | Apr. 14, 2020USD ($) | Jan. 30, 2021USD ($) | May 02, 2020USD ($) | Apr. 14, 2020EUR (€) |
Derivative [Line Items] | ||||
Derivative, maturity date | Aug. 31, 2023 | |||
Derivative, notional amount | $ 60 | € 54.8 | ||
Other long-term liabilities, fair value | $ 7.5 | $ 1.3 |
Balance Sheet Components - De_2
Balance Sheet Components - Derivatives Not Designated as Hedges - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Jan. 30, 2021USD ($) | Jan. 30, 2021USD ($) | |
Derivative [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 0.2 | $ 0.2 |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 0.2 | 0.2 |
Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 21.9 | $ 21.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Summary of the Changes in the Carrying Amount of Goodwill by Segment (Details) $ in Millions | 9 Months Ended |
Jan. 30, 2021USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 231.6 |
Foreign Currency Translation | 3.2 |
Ending balance | 234.8 |
Auto | |
Goodwill [Line Items] | |
Beginning balance | 106.2 |
Foreign Currency Translation | 0.6 |
Ending balance | 106.8 |
Auto | |
Goodwill [Line Items] | |
Beginning balance | 125.4 |
Foreign Currency Translation | 2.6 |
Ending balance | $ 128 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets, Net (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jan. 30, 2021 | May 02, 2020 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | $ 322.8 | $ 318.8 |
Accumulated Amortization | (90.9) | (75.8) |
Net / Total | 231.9 | 243 |
Gross | 1.8 | 1.8 |
Net | 1.8 | 1.8 |
Other intangible assets, gross | 324.6 | 320.6 |
Other intangible assets, accumulated amortization | (90.9) | (75.8) |
Other intangible assets, net | 233.7 | 244.8 |
Trade Names, Patents and Technology Licenses | ||
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 | 246.7 | 243.5 |
Accumulated Amortization | (51.2) | (40.8) |
Net / Total | $ 195.5 | $ 202.7 |
Wtd. Avg. Remaining Amortization Periods (Years) | 15 years 9 months 18 days | 16 years 6 months |
Trade Names, Patents and Technology Licenses | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | $ 76.1 | $ 75.3 |
Accumulated Amortization | (39.7) | (35) |
Net / Total | $ 36.4 | $ 40.3 |
Wtd. Avg. Remaining Amortization Periods (Years) | 7 years 2 months 12 days | 7 years 9 months 18 days |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Estimated Aggregate Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | Jan. 30, 2021 | May 02, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2021 | $ 4.8 | |
2022 | 19.2 | |
2023 | 19.1 | |
2024 | 18.7 | |
2025 | 18.2 | |
Thereafter | 151.9 | |
Net / Total | $ 231.9 | $ 243 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Millions | Jan. 30, 2021 | May 02, 2020 |
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Costs | $ (1.7) | $ (2.2) |
Total Debt | 244.6 | 352.1 |
Less: Current Maturities | (15.4) | (15.3) |
Long-term Debt | 229.2 | 336.8 |
Line of credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt | 9.7 | 108.5 |
Term loan | ||
Debt Instrument [Line Items] | ||
Debt | 221.9 | 231.2 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Debt | 14.7 | $ 14.6 |
Less: Current Maturities | $ (2.9) |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility/Term Loan (Details) - Bank of America, N.A., and Wells Fargo Bank, N.A. [Member] - Revolving Credit Facility | 9 Months Ended |
Jan. 30, 2021USD ($) | |
Debt Instrument [Line Items] | |
Credit Agreement terminates | 2023-09 |
Borrowing capacity, increase limit | $ 200,000,000 |
Interest rate (as a percent) | 1.63% |
Line of credit | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 200,000,000 |
Term loan | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 250,000,000 |
Periodic payment, principal, proportion of total borrowing (as a percent) | 1.25% |
Periodic payment, principal | $ 3,100,000 |
Debt - Other Debt (Details)
Debt - Other Debt (Details) $ in Millions | 9 Months Ended | |
Jan. 30, 2021USD ($)note | May 02, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Debt, short-term | $ 15.4 | $ 15.3 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Number of notes | note | 14 | |
Weighted-average interest rate (as a percent) | 1.47% | |
Debt, short-term | $ 2.9 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Cash Dividends | $ (4.1) | $ (4) | $ (13.2) | $ (12.2) |
RSAs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Cash Dividends | $ (0.9) |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | May 02, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | $ 851.4 | $ 732.6 | $ 783.4 | $ 689.7 | |
Ending balance | 897.6 | 772.9 | 897.6 | 772.9 | |
Accumulated Other Comprehensive Income (Loss) | 8.2 | (16.4) | 8.2 | (16.4) | $ (26.9) |
Currency Translation Adjustments | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | (4.2) | (18) | (25.9) | (13.6) | |
Other Comprehensive Income (Loss) Recognized During the Period, Net of Tax Benefit | 18.2 | 1.6 | 39.9 | (2.8) | |
Ending balance | 14 | $ (16.4) | 14 | $ (16.4) | |
Derivative Instruments | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | (3.7) | (1) | |||
Other Comprehensive Income (Loss) Recognized During the Period, Net of Tax Benefit | (2.1) | (4.8) | |||
Ending balance | $ (5.8) | $ (5.8) |
Shareholders' Equity - General
Shareholders' Equity - General (Details) - 2014 Incentive Plan | Jan. 30, 2021shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 3,000,000 |
Number of shares available for award (in shares) | 196,288 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Jan. 30, 2021USD ($)shares | Jan. 30, 2021USD ($)shares | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | ||
Stock-based compensation expense | $ | $ 0 | $ 0 |
PSAs | ||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | ||
Shares granted in period (in shares) | 917,000 | |
Additional stock issuable, shares | 458,500 | 458,500 |
RSUs | ||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | ||
Shares granted in period (in shares) | 938,300 | |
Deferred R S Us | 577,055 | 577,055 |
Minimum | PSAs | ||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | ||
Vesting percentage | 0.00% | |
Maximum | PSAs | ||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | ||
Vesting percentage | 100.00% | |
Maximum | RSUs | ||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | ||
Vesting period | 5 years |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Restricted Stock Awards and Restricted Stock Units Activity (Details) - RSUs - 2014 Incentive Plan | 9 Months Ended |
Jan. 30, 2021$ / sharesshares | |
Shares | |
Non-vested and unissued, beginning balance (in shares) | shares | 3,100 |
Awarded (in shares) | shares | 938,300 |
Non-vested and unissued, ending balance (in shares) | shares | 941,400 |
Wtd. Avg. Grant Date Fair Value | |
Non-vested and unissued, beginning balance (in dollars per share) | $ / shares | $ 41.20 |
Weighted average value, awarded (in dollars per share) | $ / shares | 28.30 |
Non-vested and unissued, ending balance (in dollars per share) | $ / shares | $ 28.34 |
Shareholders' Equity -Director
Shareholders' Equity -Director Awards (Details) - shares | 9 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Director | RSAs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted in period (in shares) | 33,000 | 30,000 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Combined Stock Option Activity and Related Information for Stock Options Granted (Details) - Stock Options - 2010 Plan and 2007 Plan | 9 Months Ended |
Jan. 30, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding [Roll Forward] | |
Outstanding - beginning balance (in shares) | shares | 106,668 |
Exercised (in shares) | shares | (5,000) |
Cancelled (in shares) | shares | (1,668) |
Outstanding - ending balance (in shares) | shares | 100,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Wtd. Avg. Exercise Price, Outstanding - beginning balance (in dollars per share) | $ / shares | $ 35.76 |
Wtd. Avg. Exercise Price, Exercised (in dollars per share) | $ / shares | 10.55 |
Wtd. Avg. Exercise Price, Cancelled (in dollars per share) | $ / shares | 37.01 |
Wtd. Avg. Exercise Price, Outstanding - ending balance (in dollars per share) | $ / shares | $ 37.01 |
Shareholders' Equity - Stock-ba
Shareholders' Equity - Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0 | $ 0 | ||
2014 Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2.4 | $ 1.6 | 4.3 | $ 5.6 |
2014 Incentive Plan | PSAs | Executives and non-executive members of management | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1.3 | 3.6 | ||
2014 Incentive Plan | RSUs | Executives and non-executive members of management | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2.4 | $ 0.3 | 3.4 | 1.1 |
2014 Incentive Plan | RSAs | Director | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0.9 | $ 0.9 |
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 | 3 Months Ended | 9 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 01, 2020 | |
Earnings Per Share [Abstract] | |||||
Net Income | $ 31.9 | $ 41.2 | $ 91.2 | $ 93.3 | $ 93.3 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||
Denominator for Basic Income per Share-Weighted Average Shares Outstanding and Vested/Unissued RSUs | 38,106,793 | 37,587,742 | 38,016,711 | 37,570,423 | |
Dilutive Potential Common Shares-Employee Stock Options, PSAs and RSUs | 293,303 | 166,229 | 211,974 | 150,093 | |
Denominator for Diluted Income per Share | 38,400,096 | 37,753,971 | 38,228,685 | 37,720,516 | |
Basic and Diluted Income per Share: | |||||
Basic Income per Share (in dollars per share) | $ 0.84 | $ 1.10 | $ 2.40 | $ 2.48 | $ 2.48 |
Diluted Income per Share (in dollars per share) | $ 0.83 | $ 1.09 | $ 2.39 | $ 2.47 | $ 2.47 |
Number of Anti-dilutive Potentially Issuable Shares Excluded from Diluted Common Shares Outstanding | 917,000 | 646,075 | 678,556 | 721,604 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 01, 2020 | May 02, 2020 | |
Segment Reporting Information [Line Items] | ||||||
Net Sales | $ 295.3 | $ 285.9 | $ 787 | $ 813.3 | $ 813.3 | |
Income (Loss) from Operations | 35.4 | 41.5 | 94.2 | 110.8 | 110.8 | |
Interest Expense, Net | 1.3 | 2.4 | 4.3 | 8 | 8 | |
Other Income, Net | (2.4) | (4.9) | (8.4) | (5.8) | (5.8) | |
Income before Income Taxes | 36.5 | 44 | 98.3 | $ 108.6 | 108.6 | |
Identifiable Assets | 1,444.5 | 1,444.5 | $ 1,370.6 | |||
Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 210.5 | 210.3 | 551.3 | 576.6 | ||
Income (Loss) from Operations | 29.6 | 39.2 | 83.7 | 101.2 | ||
Interest Expense, Net | 0 | 0 | 0 | 0 | ||
Other Income, Net | 0 | 0 | 0 | 0 | ||
Income before Income Taxes | 0 | 0 | 0 | 0 | ||
Identifiable Assets | 797.1 | 797.1 | 670.9 | |||
Eliminations/Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 0 | 0 | 0 | 0 | ||
Income (Loss) from Operations | (13.3) | (10) | (32.8) | (31) | ||
Interest Expense, Net | 0 | 0 | 0 | 0 | ||
Other Income, Net | 0 | 0 | 0 | 0 | ||
Income before Income Taxes | 0 | 0 | 0 | 0 | ||
Identifiable Assets | 120.1 | 120.1 | 198.1 | |||
Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 66.5 | 60.1 | 186.4 | 195.8 | ||
Income (Loss) from Operations | 16.9 | 13.2 | 40 | 44.8 | ||
Interest Expense, Net | 0 | 0 | 0 | 0 | ||
Other Income, Net | 0 | 0 | 0 | 0 | ||
Income before Income Taxes | 0 | 0 | 0 | 0 | ||
Identifiable Assets | 452.6 | 452.6 | 421.8 | |||
Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 17.6 | 14.9 | 47.4 | 39.7 | ||
Income (Loss) from Operations | 3.2 | 0.7 | 7.4 | 0.7 | ||
Interest Expense, Net | 0 | 0 | 0 | 0 | ||
Other Income, Net | 0 | 0 | 0 | 0 | ||
Income before Income Taxes | 0 | 0 | 0 | 0 | ||
Identifiable Assets | 67.3 | 67.3 | 71 | |||
Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 0.7 | 0.6 | 1.9 | 1.2 | ||
Income (Loss) from Operations | (1) | (1.6) | (4.1) | (4.9) | ||
Interest Expense, Net | 0 | 0 | 0 | 0 | ||
Other Income, Net | 0 | 0 | 0 | 0 | ||
Income before Income Taxes | 0 | 0 | 0 | 0 | ||
Identifiable Assets | 7.4 | 7.4 | $ 8.8 | |||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 295.3 | 285.9 | 787 | 813.3 | ||
Operating Segments | Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 211.7 | 211.5 | 555 | 580.3 | ||
Operating Segments | Eliminations/Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | (3) | (1.9) | (7.5) | (5.8) | ||
Operating Segments | Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 68.3 | 60.8 | 190.2 | 197.8 | ||
Operating Segments | Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 17.6 | 14.9 | 47.4 | 39.8 | ||
Operating Segments | Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 0.7 | 0.6 | 1.9 | 1.2 | ||
Transfers between Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 0 | 0 | 0 | 0 | ||
Transfers between Segments | Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | (1.2) | (1.2) | (3.7) | (3.7) | ||
Transfers between Segments | Eliminations/Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 3 | 1.9 | 7.5 | 5.8 | ||
Transfers between Segments | Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | (1.8) | (0.7) | (3.8) | (2) | ||
Transfers between Segments | Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 0 | 0 | 0 | (0.1) | ||
Transfers between Segments | Auto | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | $ 0 | $ 0 | $ 0 | $ 0 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) $ in Millions | Mar. 02, 2020USD ($) |
Compensatory Damages | |
Loss Contingencies [Line Items] | |
Gain Contingency, Unrecorded Amount | $ 102 |
Punitive Damages | |
Loss Contingencies [Line Items] | |
Gain Contingency, Unrecorded Amount | $ 11 |