Segment Information and Geographic Area Information

We are a global manufacturer of component and subsystem devices. We design, manufacture and market devices employing electrical, electronic, wireless, sensing and optical technologies. Our components are found in the primary end-markets of the automotive, appliance, communications (including information processing and storage, networking equipment, wireless and terrestrial voice/data systems), consumer and industrial equipment, aerospace, rail and other transportation industries.

ASC No. 280, “Segment Reporting” establishes annual and interim reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM, as defined by ASC No. 280, is the Company’s President and Chief Executive Officer (“CEO”).

We have multiple operating segments that are aggregated into four reportable segments. Those segments are Automotive, Interface, Power Products and Other.

The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile OEMs, either directly or through their tiered suppliers. Our products include integrated center consoles, hidden switches, ergonomic switches, transmission lead-frames, 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 Interface segment provides a variety of copper and fiber-optic interface and interface solutions for the aerospace, appliance, commercial food service, construction, consumer, material handling, medical, military, mining, point-of-sale, and telecommunications markets. Solutions include conductive polymers, industrial safety radio remote controls, optical and copper transceivers, and solid-state field-effect consumer touch panels. Services include the design and installation of fiber optic and copper infrastructure systems and manufacturing active and passive optical components. Through fiscal 2018, the interface segment included our Methode Development Company business, which provided conductive ink products for the automotive market. The business was shuttered at the end of fiscal 2018 due to a management-driven strategic change in direction. Through fiscal 2017, the Interface segment included our Connectivity reporting unit, which provided solutions for computer and networking markets, including connectors and custom cable assemblies. This reporting unit was shuttered at the end of fiscal 2017 due to market conditions.

The Power Products segment manufactures braided flexible cables, current-carrying laminated busbars and devices, custom power-product assemblies, such as our PowerRail® solution, high-current low-voltage flexible power cabling systems and powder-coated busbars that are used in various markets and applications, including aerospace, computers, industrial, power conversion, military, telecommunications and transportation.

The Other segment is primarily made up of our medical device business, Dabir Surfaces, our surface support technology aimed at pressure injury prevention. Methode is developing the technology for use by patients who are immobilized or otherwise at risk for pressure injuries, including patients undergoing long-duration surgical procedures. Through fiscal 2017, the Other segment included our Active Energy Solutions business, which provided inverters, battery systems and insulated-gate bipolar transistor solutions. Due to market conditions, this business was shuttered at the end of fiscal 2017.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 above. We allocate resources to and evaluate performance of segments based on operating income. Transfers between segments are recorded using internal transfer prices set by us.

The tables below present information about our reportable segments.



	Year Ended April 28, 2018
	Automotive			Interface			Power Products			Other			Eliminations/Corporate			Consolidated
Net Sales	$	738.4		$	116.1		$	63.4		$	0.3		$	(9.9	)	$	908.3
Transfers between Segments	(9.7		)	(0.3		)	(0.2		)	—			10.2			—
Net Sales to Unaffiliated Customers	$	728.7		$	115.8		$	63.2		$	0.3		$	0.3		$	908.3

Income/(Loss) from Operations	$	156.3		$	5.0		$	14.0		$	(11.4	)	$	(45.6	)	$	118.3
Interest Expense, Net																0.9
Other Income, Net																(6.4		)
Income before Income Taxes																$	123.8

Depreciation and Amortization	$	21.3		$	3.5		$	1.6		$	0.8		$	0.9		$	28.1

Identifiable Assets	$	632.7		$	251.4		$	48.5		$	8.1		$	(24.8	)	$	915.9



	Year Ended April 29, 2017
	Automotive			Interface			Power Products			Other			Eliminations/Corporate			Consolidated
Net Sales	$	641.0		$	128.2		$	56.5		$	2.2		$	(11.4	)	$	816.5
Transfers between Segments	(8.8		)	(0.8		)	(0.2		)	(1.9		)	11.7			—
Net Sales to Unaffiliated Customers	$	632.2		$	127.4		$	56.3		$	0.3		$	0.3		$	816.5

Income/(Loss) from Operations	$	148.3		$	(0.9	)	$	11.5		$	(12.4	)	$	(35.7	)	$	110.8
Interest Income, Net																(0.4		)
Other Income, Net																(4.7		)
Income before Income Taxes																$	115.9

Depreciation and Amortization	$	15.5		$	4.2		$	2.8		$	1.0		$	0.8		$	24.3

Identifiable Assets	$	462.3		$	202.5		$	46.2		$	5.2		$	(12.2	)	$	704.0



	Year Ended April 30, 2016
	Automotive			Interface			Power Products			Other			Eliminations/Corporate			Consolidated
Net Sales	$	623.1		$	142.6		$	54.1		$	0.6		$	(11.3	)	$	809.1
Transfers between Segments	(8.8		)	(1.8		)	(0.6		)	(0.3		)	11.5			—
Net Sales to Unaffiliated Customers	$	614.3		$	140.8		$	53.5		$	0.3		$	0.2		$	809.1

Income/(Loss) from Operations	$	136.8		$	2.7		$	9.4		$	(8.8	)	$	(30.4	)	$	109.7
Interest Income, Net																(0.7		)
Other Income, Net																(0.5		)
Income before Income Taxes																$	110.9

Depreciation and Amortization	$	15.6		$	4.3		$	2.3		$	0.6		$	1.1		$	23.9

Identifiable Assets	$	418.4		$	184.8		$	46.4		$	5.0		$	1.3		$	655.9

The following table sets forth certain geographic financial information for fiscal years ended April 28, 2018, April 29, 2017 and April 30, 2016. Geographic net sales and income are determined based on our sales and income from our various operational locations.



	Fiscal Year Ended
	April 28, 2018		April 29, 2017		April 30, 2016
Net Sales:
U.S.	$	487.5	$	506.9	$	491.9
Malta	184.0		155.5		167.1
China	117.3		127.7		124.8
Canada	54.4		—		—
Belgium	26.2		—		—
Other	38.9		26.4		25.3
Total Net Sales	$	908.3	$	816.5	$	809.1

Property, Plant and Equipment, Net:
U.S.	$	63.3	$	44.9	$	44.0
Malta	36.8		26.4		28.7
Belgium	25.0		—		—
Canada	13.9		—		—
Egypt	10.7		8.4		8.2
China	7.2		5.9		7.4
Mexico	4.6		4.3		3.9
Other	0.7		0.7		0.8
Total Property, Plant and Equipment, Net	$	162.2	$	90.6	$	93.0