SEGMENT 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 and 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”).

Effective October 27, 2018, the Company reorganized the reportable segments within its business to align to its new structure resulting from the acquisition of Grakon. Prior to this reorganization, the Company's four reportable segments were Automotive, Power, Interface and Other. As a result of this change, the Company's four reportable segments are now Automotive, Industrial, Interface and Medical. Historical information has been revised to reflect the new reportable segments. Refer to Note 5, "Goodwill and Intangible Assets," for further information.

A summary of the significant reportable segment changes is as follows:


•	Grakon's automotive business has been included in the Automotive segment, while Grakon's non-automotive business has been included in the Industrial segment.


•	The busbar business, previously included in the Power segment, is now part of the Industrial segment.


•	The radio-remote control business, previously included in the Interface segment, is now part of the Industrial segment.


•	The medical devices business, previously included in the Other segment, now makes up the Medical segment.

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 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, medical, point-of-sale and telecommunications markets. Solutions include optical and copper transceivers and solid-state field-effect consumer touch panels.

The Medical segment is 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.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies in our Form 10-K for the fiscal year ended April 28, 2018, with the exception of accounting policies for revenue, which can be found in Note 3, "Revenue," in this Form 10-Q. We allocate resources to 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.



	Three Months Ended January 26, 2019
	Automotive			Industrial			Interface			Medical			Eliminations/Corporate			Consolidated
Net Sales	$	174.0		$	60.9		$	13.8		$	0.1		$	(1.9	)	$	246.9
Transfers between Segments	(1.1		)	(0.7		)	(0.1		)	—			1.9			—
Net Sales to Unaffiliated Customers	$	172.9		$	60.2		$	13.7		$	0.1		$	—		$	246.9

Income (Loss) from Operations	$	27.0		$	8.9		$	—		$	(1.7	)	$	(8.2	)	$	26.0
Interest Expense, Net																3.2
Other Income, Net																(4.9		)
Income before Income Taxes																$	27.7



	Three Months Ended January 27, 2018
	Automotive			Industrial		Interface			Medical			Eliminations/Corporate			Consolidated
Net Sales	$	187.7		$	25.5	$	17.7		$	0.1		$	(3.0	)	$	228.0
Transfers between Segments	(2.8		)	—		(0.1		)	—			2.9			—
Net Sales to Unaffiliated Customers	$	184.9		$	25.5	$	17.6		$	0.1		$	(0.1	)	$	228.0

Income (Loss) from Operations	$	39.4		$	3.2	$	1.6		$	(2.3	)	$	(6.3	)	$	35.6
Interest Expense, Net															0.3
Other Income, Net															(3.8		)
Income before Income Taxes															$	39.1



	Nine Months Ended January 26, 2019
	Automotive			Industrial			Interface			Medical			Eliminations/Corporate			Consolidated
Net Sales	$	555.0		$	141.8		$	44.2		$	0.7		$	(7.4	)	$	734.3
Transfers between Segments	(5.2		)	(2.0		)	(0.2		)	—			7.4			—
Net Sales to Unaffiliated Customers	$	549.8		$	139.8		$	44.0		$	0.7		$	—		$	734.3

Income (Loss) from Operations	$	96.7		$	21.1		$	0.2		$	(6.3	)	$	(37.9	)	$	73.8
Interest Expense, Net																5.0
Other Income, Net																(4.7		)
Income before Income Taxes																$	73.5



	Nine Months Ended January 27, 2018
	Automotive			Industrial		Interface			Medical			Eliminations/Corporate			Consolidated
Net Sales	$	535.4		$	75.7	$	55.6		$	0.2		$	(7.6	)	$	659.3
Transfers between Segments	(7.3		)	0.3		(0.5		)	—			7.5			—
Net Sales to Unaffiliated Customers	$	528.1		$	76.0	$	55.1		$	0.2		$	(0.1	)	$	659.3

Income (Loss) from Operations	$	118.1		$	8.3	$	5.0		$	(8.1	)	$	(32.6	)	$	90.7
Interest Expense, Net															0.3
Other Income, Net															(2.6		)
Income before Income Taxes															$	93.0