XML 23 R10.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Intangible Assets and Goodwill | 12 Months Ended
--- | ---
Apr. 28, 2018
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets and Goodwill | Intangible Assets and Goodwill For goodwill, the Company performs impairment reviews by reporting unit. At the beginning of the fourth quarter of fiscal 2018, the Company performed a quantitative goodwill impairment test on our North American Automotive and European Automotive reporting units in the Automotive segment, Power Systems Group in the Power Products segment and Hetronic in our Interface segment. In determining the estimated fair values of the reporting units, the Company was required to estimate a number of factors, including future cash flows, operating results, discount rates and market conditions. On the basis of these estimates, the analysis indicated the following:
|  | Fair Value of Reporting Unit |  | Carrying Value of Reporting Unit |  | Excess (Deficiency)
North American Automotive |  | $ | 708.5 |  |  | $ | 215.3 |  |  | $ | 493.2 |
European Automotive |  | $ | 386.5 |  |  | $ | 302.1 |  |  | $ | 84.4 |
Power Systems Group |  | $ | 44.0 |  |  | $ | 13.1 |  |  | $ | 30.9 |
Hetronic |  | $ | 77.5 |  |  | $ | 32.0 |  |  | $ | 45.5 |
Since the fair value of each reporting unit listed above exceeded the reporting unit carrying value, there were no goodwill impairment losses reported in the fiscal year ended April 28, 2018. At the beginning of the fourth quarter of fiscal 2017, we performed a qualitative goodwill screening test of goodwill impairment on our Power Systems Group in the Power Products segment and Hetronic in our Interface segment. We considered the qualitative factors and weighed the evidence obtained and we determined that it is more likely than not that the fair value of the two reporting units is greater than the carrying value, and therefore concluded that the assets were not impaired. At the beginning of the fourth quarter of fiscal 2016, we performed "step one" of the goodwill test on our two reporting units with goodwill. Based on this test, we determined that the fair value for these reporting units exceeded their carrying values by approximately 135% and 163%. Therefore, management concluded, based on the results, that goodwill was not impaired for either of the reporting units. As part of the acquisitions of Procoplast and Pacific Insight in fiscal 2018, the Company recorded estimated goodwill of $6.8 million and $50.4 million, respectively, of which none is expected to be deductible for income taxes. The following table shows the roll-forward of goodwill.
|  | Automotive |  | Interface |  | Power Products |  | Total
Balance as of May 2, 2015 |  | $ | — |  |  | $ | 0.7 |  |  | $ | 1.0 |  |  | $ | 1.7 |
Goodwill Acquired |  | — |  |  | — |  |  | — |  |  | — |
Impairment |  | — |  |  | — |  |  | — |  |  | — |
Foreign Currency Translation |  | — |  |  | — |  |  | — |  |  | — |
Balance as of April 30, 2016 |  | — |  |  | 0.7 |  |  | 1.0 |  |  | 1.7 |
Goodwill Acquired |  | — |  |  | — |  |  | — |  |  | — |
Impairment |  | — |  |  | — |  |  | — |  |  | — |
Foreign Currency Translation |  | — |  |  | (0.1 | ) |  | — |  |  | (0.1 | )
Balance as of April 29, 2017 |  | — |  |  | 0.6 |  |  | 1.0 |  |  | 1.6 |
Goodwill Acquired |  | 57.2 |  |  | — |  |  | — |  |  | 57.2 |
Impairment |  | — |  |  | — |  |  | — |  |  | — |
Foreign Currency Translation |  | 0.3 |  |  | 0.1 |  |  | — |  |  | 0.4 |
Balance as of April 28, 2018 |  | $ | 57.5 |  |  | $ | 0.7 |  |  | $ | 1.0 |  |  | $ | 59.2 |
Intangible Assets The fair value of our indefinite-lived trade names are estimated and compared to the carrying value. We estimate the fair value of the intangible assets using the relief-from-royalty method, which requires assumptions related to projected revenues from our annual operating budgets; assumed royalty rates that could be payable if we did not own the trademarks; and a discount rate which are considered level 3 inputs in the fair value hierarchy. An impairment loss would be recognized if the estimated fair value of the indefinite-lived intangible asset is less than its carrying value. The fair values of the trademarks tested exceeded their carrying value by approximately 44%, 28% and 17% for fiscal 2018, fiscal 2017 and fiscal 2016, respectively. As part of the acquisitions of Procoplast and Pacific Insight in fiscal 2018, the Company acquired estimated intangible assets of $19.2 million and $40.1 million, respectively. The following tables present details of the Company's identifiable intangible assets:
| As of April 28, 2018
| Gross |  | Accumulated Amortization |  | Net |  | Wtd. Avg. Remaining Amortization Periods (Years)
Customer Relationships and Agreements | $ | 64.4 |  |  | $ | 18.1 |  |  | $ | 46.3 |  |  | 12.3
Trade Names, Patents and Technology Licenses | 37.7 |  |  | 23.0 |  |  | 14.7 |  |  | 5.3
Total | $ | 102.1 |  |  | $ | 41.1 |  |  | $ | 61.0 |  |  |
| As of April 29, 2017
| Gross |  | Accumulated Amortization |  | Net |  | Wtd. Avg. Remaining Amortization Periods (Years)
Customer Relationships and Agreements | $ | 16.3 |  |  | $ | 15.6 |  |  | $ | 0.7 |  |  | 6.8
Trade Names, Patents and Technology Licenses | 25.8 |  |  | 19.9 |  |  | 5.9 |  |  | 1.4
Covenants Not to Compete | 0.1 |  |  | 0.1 |  |  | — |  |  | 0.4
Total | $ | 42.2 |  |  | $ | 35.6 |  |  | $ | 6.6 |  |  |
The estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows:
2019 | $ | 7.5 |
2020 | $ | 5.5 |
2021 | $ | 5.4 |
2022 | $ | 5.4 |
2023 | $ | 5.4 |
As of April 28, 2018 and April 29, 2017, the trade names, patents and technology licenses included $1.8 million of trade names that are not subject to amortization.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration