XML 21 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

ACQUISITIONS | 3 Months Ended
--- | ---
Jul. 28, 2018
Business Combinations [Abstract] |
ACQUISITIONS | ACQUISITIONS Fiscal 2018 Acquisitions Procoplast S.A. On July 27, 2017, we acquired 100% of the stock of Procoplast S.A. ("Procoplast") for $22.2 million in cash, net of cash acquired. The business, located near the Belgian-German border, is an independent manufacturer of automotive assemblies. The accounts and transactions of Procoplast have been included in the Automotive segment in the consolidated financial statements from the effective date of the acquisition. For goodwill impairment testing purposes, Procoplast has been included in the Company's European Automotive reporting unit. During the fourth quarter of fiscal 2018, the Company completed the allocation of the purchase price to the assets acquired and liabilities assumed. The final allocation of the purchase price to the fair values of the assets acquired and liabilities assumed was:
(Dollars in Millions) |  |
Cash |  | $ | 1.3 |
Accounts Receivable |  | 7.4 |
Inventory |  | 3.5 |
Intangible Assets |  | 19.2 |
Goodwill |  | 6.8 |
Pre-Production Costs |  | 2.3 |
Property, Plant and Equipment |  | 23.8 |
Accounts Payable |  | (4.9 | )
Salaries, Wages and Payroll Taxes |  | (0.8 | )
Other Accrued Expenses |  | (0.7 | )
Income Taxes Payable |  | (0.6 | )
Short-term Debt |  | (3.2 | )
Other Liabilities |  | (2.1 | )
Long-term Debt |  | (20.6 | )
Deferred Income Tax Liability |  | (7.9 | )
Total Purchase Price |  | $ | 23.5 |
The following table presents details of the intangible assets acquired:
(Dollars in Millions) |  | Fair Value at Date of Acquisition |  | Amortization Period
Customer Relationships and Agreements - Significant Customer |  | $ | 12.3 |  |  | 17.0 years
Customer Relationships and Agreements - All Other Customers |  | 2.8 |  |  | 11.5 years
Technology Licenses |  | 2.1 |  |  | 8.5 years
Trade Names |  | 2.0 |  |  | 8.5 years
Total |  | $ | 19.2 |  |  |
Acquisition-related costs of $1.1 million were incurred in relation to the acquisition of Procoplast for the three months ended July 29, 2017, all of which have been reported in selling and administrative expenses on the condensed consolidated statements of operations. Pacific Insight Electronics Corp. On October 3, 2017, we acquired 100% of the outstanding common shares of Pacific Insight Electronics Corp. ("Pacific Insight") in a cash transaction for $108.7 million, net of cash acquired. Pacific Insight, headquartered in Vancouver, British Columbia, Canada, is a global solutions provider offering design, development, manufacturing and delivery of lighting and electronic products and full-service solutions to the automotive and commercial vehicle markets, and has manufacturing facilities in both Canada and Mexico. Its technology in LED-based ambient and direct lighting will expand our presence within the automotive interior, as well as augment our efforts in overhead console and other areas. The accounts and transactions of Pacific Insight have been included in the Automotive segment in the consolidated financial statements from the effective date of the acquisition. For goodwill impairment testing purposes, Pacific Insight has been included in the Company's North American Automotive reporting unit. During the fourth quarter of fiscal 2018, the Company completed the allocation of the purchase price to the assets acquired and liabilities assumed. The final allocation of the purchase price to the fair values of the assets acquired and liabilities assumed was:
(Dollars in Millions) |  |
Cash |  | $ | 4.9 |
Accounts Receivable |  | 18.3 |
Inventory |  | 13.0 |
Prepaid Expenses and Other Current Assets |  | 0.3 |
Income Taxes Receivable |  | 1.2 |
Intangible Assets |  | 40.1 |
Goodwill |  | 50.4 |
Pre-production Costs |  | 0.8 |
Property, Plant and Equipment |  | 13.2 |
Accounts Payable |  | (7.9 | )
Salaries, Wages and Payroll Taxes |  | (0.8 | )
Other Accrued Expenses |  | (2.9 | )
Short-term Debt |  | (0.8 | )
Long-term Debt |  | (3.4 | )
Deferred Income Tax Liability |  | (12.8 | )
Total Purchase Price |  | $ | 113.6 |
The following table presents details of the intangible assets acquired:
(Dollars in Millions) |  | Fair Value at Date of Acquisition |  | Amortization Period
Customer Relationships and Agreements - Automotive |  | $ | 22.6 |  |  | 11.0 years
Customer Relationships and Agreements - Commercial |  | 9.6 |  |  | 13.0 years
Trade Names |  | 6.2 |  |  | 7.5 years
Technology Licenses |  | 1.7 |  |  | 5.5 years
Total |  | $ | 40.1 |  |  |
The following table presents the unaudited pro forma results for the three months ended July 29, 2017. The unaudited pro forma financial information combines the results of operations of Methode and Pacific Insight as though the companies had been combined as of the beginning of fiscal 2017. The pro forma information is presented for information purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at such time. The unaudited pro forma results presented below primarily include amortization charges for acquired intangible assets, depreciation adjustments for property, plant and equipment that has been revalued, adjustments for certain acquisition-related charges and related tax effects.
|  | (Unaudited)
|  | Three Months Ended
(Dollars in Millions) |  | July 29, 2017
Revenues |  | $ | 224.7 |
Net Income |  | $ | 22.0 |
Acquisition-related costs of $1.5 million were incurred in relation to the acquisition of Pacific Insight for the three months ended July 29, 2017, all of which have been reported in selling and administrative expenses on the condensed consolidated statements of income.

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

X
- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
Name: | us-gaap_MergersAcquisitionsAndDispositionsDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration