XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.20.2

Shareholders' Equity | 12 Months Ended
--- | ---
May 02, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Shareholders' Equity | Note 13. Shareholders’ Equity Dividends The Company paid dividends totaling $16.3 million in both fiscal 2020 and 2019, and $14.7 million in fiscal 2018. Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. A summary of changes in accumulated other comprehensive income (loss), net of tax is shown below:
|  | Fiscal Year Ended |
(Dollars in Millions) |  | May 2, 2020 |  |  | April 27, 2019 |  |  | April 28, 2018 |
Currency Translation Adjustments: |  |  |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Year |  | $ | (13.6 | ) |  | $ | 13.9 |  |  | $ | (25.7 | )
Other Comprehensive Income (Loss) Recognized During the Period, Net of Tax |  |  | (12.3 | ) |  |  | (27.5 | ) |  |  | 39.6 |
Balance at End of Year |  |  | (25.9 | ) |  |  | (13.6 | ) |  |  | 13.9 |
Derivative Instruments: |  |  |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Year |  |  | — |  |  |  | — |  |  |  | — |
Other Comprehensive Loss Recognized During the Period, Net of Tax |  |  | (1.0 | ) |  |  | — |  |  |  | — |
Balance at End of Year |  |  | (1.0 | ) |  |  | — |  |  |  | — |
Accumulated Other Comprehensive Income (Loss), End of Period |  | $ | (26.9 | ) |  | $ | (13.6 | ) |  | $ | 13.9 |
Stock-Based Compensation The Company has granted stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and stock awards to employees and non-employee directors under the Methode Electronics, Inc. 2014 Omnibus Incentive Plan (“2014 Plan”), the Methode Electronics, Inc. 2010 Stock Plan (“2010 Plan”), the Methode Electronics, Inc. 2007 Stock Plan (“2007 Plan”) and the Methode Electronics, Inc. 2004 Stock Plan (“2004 Plan”). The Company’s stockholders approved the 2014 Plan in September 2014. The Company can no longer make grants under the 2010 Plan, 2007 Plan and 2004 Plan. The number of shares of common stock originally authorized under the 2014 Plan is 3,000,000, less one share for every one share of common stock issued or issuable pursuant to awards made after May 3, 2014 under the 2007 Plan or 2010 Plan. As of May 2, 2020, there were 1,897,442 shares available for award under the 2014 Plan. Stock-Based Compensation Expense All stock-based payments to employees and directors are recognized in selling and administrative expenses on the consolidated statements of income. Awards subject to graded vesting are recognized using the accelerated recognition method over the requisite service period. The table below summarizes the stock-based compensation expense (benefit) related to the equity awards:
|  | Fiscal Year Ended |  |  | Unrecognized Compensation Expense at |
|  | May 2, 2020 |  |  | April 27, 2019 |  |  | April 28, 2018 |  |  |  |
(Dollars in Millions) |  | (53 Weeks) |  |  | (52 Weeks) |  |  | (52 Weeks) |  |  | May 2, 2020 |
RSAs |  | $ | (2.1 | ) |  | $ | 10.9 |  |  | $ | (2.0 | ) |  | $ | — |
RSUs |  |  | 1.5 |  |  |  | 2.2 |  |  |  | 5.0 |  |  |  | — |
Director Awards |  |  | 0.9 |  |  |  | 0.9 |  |  |  | 1.0 |  |  |  | — |
Total Stock-based Compensation Expense |  | $ | 0.3 |  |  | $ | 14.0 |  |  | $ | 4.0 |  |  | $ | — |
2014 Plan The 2014 Plan provides for discretionary grants of stock options, stock appreciation rights, restricted stock awards, restricted stock units and performance units to key employees and directors. The 2014 Plan is intended to promote the success of the Company and to increase stockholder value by providing an additional means to attract, motivate, retain and reward selected employees and eligible directors through the grant of equity awards. Restricted Stock Awards The grant of RSAs under the 2014 Incentive Plan were performance-based awards that vested at the end of fiscal 2020 based on the achievement of an EBITDA hurdle. The fair value of the RSAs granted was based on the closing stock price on the date of grant. All RSAs accrued dividend equivalents based on the awards vested. Per ASC 718, “Compensation - Stock Compensation” stock-based compensation expense is recognized for these performance awards over the vesting period based on the projected probability (70% confidence) of achievement of the EBITDA hurdle in fiscal 2020. In each period, the stock-based compensation expense was subject to adjustment, as necessary, in response to any changes in the Company’s forecast with respect to achieving the fiscal 2020 EBITDA hurdle. In fiscal 2018, the Company determined that only a threshold performance level would be achieved and adjusted its stock-based compensation expense for these awards. The result was a reversal of previously recognized stock-based compensation expense of $6.0 million. Stock-based compensation expense for these awards in fiscal 2018 was a credit of $2.0 million. In fiscal 2019, the Company determined that the target hurdle would be achieved based on the recent acquisition of Grakon and adjusted its stock-based compensation expense for these awards. The result was an additional expense of $7.4 million. Stock-based compensation expense for these awards in fiscal 2019 was $10.9 million. The actual EBITDA hurdle achieved was approximately 69% of target, which was determined in the fourth quarter of fiscal 2020. The target hurdle was not achieved because of among other factors, the impact of the COVID-19 pandemic. The result was a reversal of previously recognized stock-based compensation expense related to prior years of $5.2 million. Stock-based compensation expense for these awards in fiscal 2020 was a credit of $2.1 million. The following table summarizes the RSA activity under the 2014 Incentive Plan:
|  | RSA Shares |  |  | Wtd. Avg. Grant Date Fair Value |
Non-vested at April 29, 2017 |  |  | 1,168,500 |  |  | $ | 33.42 |
Awarded |  |  | 128,738 |  |  | $ | 40.92 |
Vested |  |  | — |  |  | $ | — |
Forfeited |  |  | (126,000 | ) |  | $ | 34.42 |
Non-vested at April 28, 2018 |  |  | 1,171,238 |  |  | $ | 34.13 |
Awarded |  |  | 11,625 |  |  | $ | 38.75 |
Vested |  |  | — |  |  | $ | — |
Forfeited |  |  | (151,455 | ) |  | $ | 34.79 |
Non-vested at April 27, 2019 |  |  | 1,031,408 |  |  | $ | 34.09 |
Awarded |  |  | — |  |  | $ | — |
Vested |  |  | (455,750 | ) |  | $ | 33.89 |
Forfeited |  |  | (575,658 | ) |  | $ | 34.25 |
Non-vested at May 2, 2020 |  |  | — |  |  | $ | — |
As of May 2, 2020, there were 444,500 RSAs that were vested for which shares were issued in the first quarter of fiscal 2021. Restricted Stock Units RSUs granted under the 2014 Plan vest over a pre-determined period of time, generally three to five years from the date of grant. The fair value of the RSUs granted was based on the closing stock price on the date of grant. The following table summarizes RSU activity granted under the 2014 Plan:
|  | RSU Shares |  |  | Wtd. Avg. Grant Date Fair Value |
Non-vested at April 29, 2017 |  |  | 568,000 |  |  | $ | 33.45 |
Awarded |  |  | 30,925 |  |  | $ | 41.82 |
Vested |  |  | (160,553 | ) |  | $ | 33.72 |
Forfeited |  |  | (56,000 | ) |  | $ | 34.42 |
Non-vested at April 28, 2018 |  |  | 382,372 |  |  | $ | 33.87 |
Awarded |  |  | 7,750 |  |  | $ | 38.75 |
Vested |  |  | (152,328 | ) |  | $ | 33.75 |
Forfeited |  |  | (49,950 | ) |  | $ | 32.42 |
Non-vested at April 27, 2019 |  |  | 187,844 |  |  | $ | 34.55 |
Awarded |  |  | — |  |  | $ | — |
Vested |  |  | (176,994 | ) |  | $ | 34.25 |
Forfeited |  |  | (7,750 | ) |  | $ | 38.75 |
Non-vested at May 2, 2020 |  |  | 3,100 |  |  | $ | 41.20 |
As of May 2, 2020, there were 91,694 RSUs that were vested for which shares were issued in the first quarter of fiscal 2021. In addition, 80,800 shares that vested were deferred for issuance. Director Awards During fiscal 2020, fiscal 2019 and fiscal 2018, the Company issued 30,000 shares, 24,000 shares and 24,000 shares, respectively, of common stock to our independent directors, all of which vested immediately upon grant. 2010 Plan and 2007 Plan The following table summarizes combined stock option activity under the 2010 Plan and 2007 Plan:
|  | Shares |  |  | Wtd. Avg. Exercise Price |  |  | Weighted- Average Life (years) |  |  | Aggregate Intrinsic Value (in millions) |
Outstanding and Exercisable at April 29, 2017 |  |  | 129,169 |  |  | $ | 34.71 |  |  |  |  |  |  |  |  |
Exercised |  |  | (13,333 | ) |  | $ | 24.67 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (1,668 | ) |  | $ | 37.01 |  |  |  |  |  |  |  |  |
Outstanding and Exercisable at April 28, 2018 |  |  | 114,168 |  |  | $ | 35.85 |  |  |  | 6.1 |  |  | $ | 0.6 |
Exercised |  |  | — |  |  | $ | — |  |  |  |  |  |  |  |  |
Forfeited |  |  | (7,500 | ) |  | $ | 37.01 |  |  |  |  |  |  |  |  |
Outstanding and Exercisable at April 27, 2019 |  |  | 106,668 |  |  | $ | 35.76 |  |  |  | 5.0 |  |  | $ | 0.1 |
Exercised |  |  | — |  |  | $ | — |  |  |  |  |  |  |  |  |
Forfeited |  |  | — |  |  | $ | — |  |  |  |  |  |  |  |  |
Outstanding and Exercisable at May 2, 2020 |  |  | 106,668 |  |  | $ | 35.76 |  |  |  | 4.0 |  |  | $ | 0.1 |
The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on that date.
Options Outstanding and Exercisable at May 2, 2020 |
Shares |  |  | Exercise Price |  |  | Avg. Remaining Life (Years) |
| 101,668 |  |  | $ | 37.01 |  |  |  | 4.2 |
| 5,000 |  |  | $ | 10.55 |  |  |  | 0.2 |
Deferred RSUs Under the 2014 Plan and 2010 Plan, RSUs that have vested for certain executives, including the Company’s CEO, will not be delivered in common stock until after the executive terminates employment from the Company or upon a change of control. As of May 2, 2020, shares to be delivered to these executives were 121,200 shares under the 2014 Plan and 180,000 shares under the 2010 Plan. Under the 2004 Plan, 225,000 shares of common stock subject to performance based RSAs granted to the Company’s CEO in fiscal 2006 and 2007 were converted to RSUs. The shares of common stock underlying the RSUs will not be issued and delivered until the earlier of: (1) thirty days after the CEO’s date of termination of employment with the Company and all of its subsidiaries and affiliates; or (2) the last day of the Company’s fiscal year in which the payment of common stock in satisfaction of the RSUs becomes deductible to the Company under Section 162(m) of the Code. As of May 2, 2020, 29,945 shares have been delivered in connection with these RSUs with a remaining balance to be delivered of 195,055 shares. The RSUs are not entitled to voting rights or dividends, however a bonus in lieu of dividends are paid. The vested deferred RSUs are considered outstanding for earnings per share calculations.

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

X
- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_ShareholdersEquityAndShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration