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Acquisitions | 12 Months Ended
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May 02, 2020
Business Combinations [Abstract] |
Acquisitions | Note 4. Acquisitions Acquisition of Grakon On September 12, 2018, the Company acquired 100% of the stock of Grakon Parent, Inc. (“Grakon) for $422.1 million in cash, net of cash acquired. The business, headquartered in Seattle, Washington, is a manufacturer of custom designed lighting solutions and highly styled engineered components. Grakon’s manufacturing capabilities and products help diversify the Company's product offerings and expand the Industrial segment, which is a key component of the Company's strategic direction. The accounts and transactions of Grakon have been included in the Automotive and Industrial segments in the consolidated financial statements from the effective date of the acquisition. For goodwill impairment testing purposes, Grakon has been included in the Company's North American Automotive and Grakon Industrial reporting units. During the second quarter of fiscal 2020, the Company completed the allocation of the purchase price to the assets acquired and liabilities assumed. Based on the final allocation, goodwill decreased by $0.2 million from the preliminary amount reported in the Company's consolidated financial statements as of April 27, 2019. The final allocation of the purchase price to the fair values of the assets acquired and liabilities assumed were:
(Dollars in Millions) |  |  |  |
Cash |  | $ | 6.9 |
Accounts Receivable |  |  | 36.1 |
Inventory |  |  | 30.8 |
Prepaid Expenses and Other Current Assets |  |  | 1.6 |
Intangible Assets |  |  | 221.9 |
Goodwill |  |  | 175.1 |
Pre-production Costs |  |  | 1.5 |
Property, Plant and Equipment |  |  | 16.2 |
Accounts Payable |  |  | (19.4 | )
Accrued Employee Liabilities |  |  | (4.4 | )
Other Accrued Expenses |  |  | (7.6 | )
Income Tax Payable |  |  | (0.3 | )
Deferred Income Tax Liability |  |  | (29.4 | )
Total Purchase Price |  | $ | 429.0 |
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 |  | $ | 57.0 |  |  | 19.5 years
Customer Relationships and Agreements - All Other Customers |  |  | 125.0 |  |  | 19.5 years
Technology Licenses |  |  | 17.7 |  |  | 11.7 years
Trade Names |  |  | 22.2 |  |  | 8.5 years
Total |  | $ | 221.9 |  |  |
In fiscal 2019, acquisition-related costs of $15.4 million were incurred in relation to the acquisition of Grakon, of which $9.8 million was reported in selling and administrative expenses and $5.6 million was reported in costs of products sold on the consolidated statements of income. Fiscal 2018 Acquisitions On July 27, 2017, the Company 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. On October 3, 2017, the Company acquired 100% of the outstanding common shares of Pacific Insight Electronics Corp. ("Pacific Insight") for $108.7 million in cash, net of cash acquired. Headquartered in Canada, Pacific Insight 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. The purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition dates. Goodwill arising from the acquisition of Procoplast and Pacific Insight are not deductible for tax purposes. The purchase price allocations were finalized at the end of fiscal 2018 and are summarized as follows:
(Dollars in Millions) |  | Procoplast |  |  | Pacific Insight |  |  | Total |
Cash |  | $ | 1.3 |  |  | $ | 4.9 |  |  | $ | 6.2 |
Accounts Receivable |  |  | 7.4 |  |  |  | 18.3 |  |  |  | 25.7 |
Inventory |  |  | 3.5 |  |  |  | 13.0 |  |  |  | 16.5 |
Intangible Assets |  |  | 19.2 |  |  |  | 40.1 |  |  |  | 59.3 |
Goodwill |  |  | 6.8 |  |  |  | 50.4 |  |  |  | 57.2 |
Other Assets |  |  | 2.3 |  |  |  | 2.3 |  |  |  | 4.6 |
Property, Plant and Equipment |  |  | 23.8 |  |  |  | 13.2 |  |  |  | 37.0 |
Accounts Payable |  |  | (4.9 | ) |  |  | (7.9 | ) |  |  | (12.8 | )
Other Accrued Expenses |  |  | (2.1 | ) |  |  | (3.7 | ) |  |  | (5.8 | )
Short-term Debt |  |  | (3.2 | ) |  |  | (0.8 | ) |  |  | (4.0 | )
Other Long-term Liabilities |  |  | (2.1 | ) |  |  | — |  |  |  | (2.1 | )
Long-term Debt |  |  | (20.6 | ) |  |  | (3.4 | ) |  |  | (24.0 | )
Deferred Income Tax Liability |  |  | (7.9 | ) |  |  | (12.8 | ) |  |  | (20.7 | )
Total Purchase Price |  | $ | 23.5 |  |  | $ | 113.6 |  |  | $ | 137.1 |
Intangible assets acquired consisted of customer relationships, technology licenses and trademarks. The weighted average amortization period for the acquired Procoplast and Pacific Insight intangible assets were 14.4 years and 10.7 years, respectively. For goodwill impairment testing purposes, Procoplast is included in the Company's European Automotive reporting unit and Pacific Insight is included in the Company’s North American Automotive reporting unit. The accounts and transactions of Procoplast and Pacific Insight have been included in the Automotive segment in the consolidated financial statements from the effective date of each acquisition. For both acquisitions, combined transaction costs of $6.8 million were incurred in fiscal 2018, of which $6.0 million was reported in selling and administrative expenses and $0.8 million was reported in costs of products sold on the consolidated statements of income. The following table presents unaudited supplemental pro forma results for fiscal 2019 and 2018 as if both the Grakon acquisition had occurred as of the beginning of fiscal 2018 and the Pacific Insight acquisition had occurred as of the beginning of fiscal 2017. The unaudited 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 acquisitions had taken place at such times. 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, interest expense adjustments due to an increased debt level, adjustments for certain acquisition-related charges and related tax effects.
|  | Fiscal Year Ended |
(Dollars in Millions) |  | April 27, 2019 |  |  | April 28, 2018 |
Revenues |  | $ | 1,073.3 |  |  | $ | 1,095.0 |
Net Income |  | $ | 106.4 |  |  | $ | 70.5 |

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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