XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.20.4

Shareholders' Equity | 9 Months Ended
--- | ---
Jan. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Shareholders' Equity | Note 8.Shareholders’ Equity Dividends The Company paid dividends totaling $4.1 million and $4.0 million in the three months ended January 30, 2021 and February 1, 2020, respectively. The Company paid dividends totaling $13.2 million and $12.2 million in the nine months ended January 30, 2021 and February 1, 2020, respectively. Dividends paid in the nine months ended January 30, 2021 include $0.9 million of dividends on restricted stock that vested during the period. 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:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | January 30, 2021 |  |  | February 1, 2020 |  |  | January 30, 2021 |  |  | February 1, 2020 |
(Dollars in Millions) |  | (13 Weeks) |  |  | (14 Weeks) |  |  | (39 Weeks) |  |  | (40 Weeks) |
Currency Translation Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  | $ | (4.2 | ) |  | $ | (18.0 | ) |  | $ | (25.9 | ) |  | $ | (13.6 | )
Other Comprehensive Income (Loss) Recognized During the Period, Net of Tax Expense of $0.3 million; $—; $0.6 million; $— |  |  | 18.2 |  |  |  | 1.6 |  |  |  | 39.9 |  |  |  | (2.8 | )
Balance at End of Period |  |  | 14.0 |  |  |  | (16.4 | ) |  |  | 14.0 |  |  |  | (16.4 | )
Derivative Instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at Beginning of Period |  |  | (3.7 | ) |  |  | — |  |  |  | (1.0 | ) |  |  | — |
Other Comprehensive Loss Recognized During the Period, Net of Tax Benefit of $0.6 million; $—; $1.5 million; $— |  |  | (2.1 | ) |  |  | — |  |  |  | (4.8 | ) |  |  | — |
Balance at End of Period |  |  | (5.8 | ) |  |  | — |  |  |  | (5.8 | ) |  |  | — |
Accumulated Other Comprehensive Income (Loss), End of Period |  | $ | 8.2 |  |  | $ | (16.4 | ) |  | $ | 8.2 |  |  | $ | (16.4 | )
Stock-based Compensation The Company has granted stock options, performance-based restricted stock (“PSAs”), performance units (“PUs”), 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 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. As of January 30, 2021, there were 196,288 shares available for award under the 2014 Plan. The Company accounts for stock-based compensation under the fair-value method. Accordingly, equity-classified stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as compensation cost over the requisite service period. The requisite service period generally matches the stated vesting period of the award but may be shorter if the employee is retirement-eligible and, under the award’s terms, may fully vest upon retirement from the Company. The Company recognizes compensation cost for awards that have graded vesting features under the graded vesting method, which considers each separately vesting tranche as though they were, in substance, multiple awards. Performance-based Restricted Stock (“PSAs”) and Performance Units (“PUs”) In the second quarter of fiscal 2021, the Company granted 917,000 PSAs to executive officers and certain non-executives which will be earned based on the achievement of an earnings before net interest, taxes, fixed asset depreciation and intangible asset amortization (“EBITDA”) measure for fiscal 2025. The PSAs will vest ranging from 0% (for performance below threshold) to 100% (target performance) based on the achievement of the EBITDA performance measure and continued employment. In addition, if the target performance is exceeded, an additional 458,500 PUs can be earned that will be settled in cash. At the discretion of the Compensation Committee, the PUs may be settled in shares of common stock. The fair value of the PSAs was based on the closing stock price on the date of grant and earn dividend equivalents during the vesting period, which are forfeitable if the PSAs do not vest. Compensation expense for PSAs are recognized when it is probable the minimum threshold performance criteria will be achieved. Compensation expense for the PUs are recognized when it is probable that the target performance criteria will be achieved. The Company assesses the probability of vesting at each balance sheet date and adjusts compensation costs based on the probability assessment. The cash-settled PUs represent a non-equity unit with a conversion value equal to the fair market value of a share of the Company’s common stock on the vesting date. The PUs are classified as liability awards due to the cash settlement feature and are re-measured at each balance sheet date. In accordance with ASC 718, based on projections of the Company’s current business portfolio, compensation expense has not been recognized for the PSAs or PUs in the three and nine months ended January 30, 2021, as the performance conditions are not probable of being met. Restricted Stock Units (“RSUs”) RSUs granted under the 2014 Plan vest over a pre-determined period of time, up to five years. In the second quarter of fiscal 2021, the Company granted 938,300 RSUs to executive officers and certain non-executives. The fair value of the RSUs was based on the closing stock price on the date of grant and earn dividend equivalents during the vesting periods, which are forfeitable if the RSUs don’t vest. The following table summarizes RSU activity under the 2014 Plan:
|  | RSU Shares |  |  | Wtd. Avg. Grant Date Fair Value |
Non-vested at May 2, 2020 |  |  | 3,100 |  |  | $ | 41.20 |
Awarded |  |  | 938,300 |  |  | $ | 28.30 |
Vested |  |  | — |  |  | $ | — |
Forfeited |  |  | — |  |  | $ | — |
Non-vested at January 30, 2021 |  |  | 941,400 |  |  | $ | 28.34 |
Under the various stock plans, common stock underlying vested RSUs held by certain executives will not be delivered until termination of employment or a change of control of the Company. As of January 30, 2021, common stock to be delivered to these executives totaled 577,055 shares. Director Awards In the nine months ended January 30, 2021 and February 1, 2020, the Company granted 33,000 shares and 30,000 shares, respectively, of common stock to its non-employee directors under the 2014 Plan. The shares vested immediately upon grant. The fair value was determined based on the closing price of the Company’s stock on the date of grant. Stock Options The following table summarizes combined stock option activity under the 2010 Plan and 2007 Plan:
|  | Shares |  |  | Wtd. Avg. Exercise Price |
Outstanding and Exercisable at May 2, 2020 |  |  | 106,668 |  |  | $ | 35.76 |
Exercised |  |  | (5,000 | ) |  | $ | 10.55 |
Forfeited |  |  | (1,668 | ) |  | $ | 37.01 |
Outstanding and Exercisable at January 30, 2021 |  |  | 100,000 |  |  | $ | 37.01 |
Stock-based Compensation Expense All stock-based awards to employees and non-employee directors are recognized in selling and administrative expenses on the condensed consolidated statements of income. The following table summarizes the stock-based compensation expense related to the equity awards:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | January 30, 2021 |  |  | February 1, 2020 |  |  | January 30, 2021 |  |  | February 1, 2020 |
(Dollars in Millions) |  | (13 Weeks) |  |  | (14 Weeks) |  |  | (39 Weeks) |  |  | (40 Weeks) |
PSAs |  | $ | — |  |  | $ | 1.3 |  |  | $ | — |  |  | $ | 3.6 |
RSUs |  |  | 2.4 |  |  |  | 0.3 |  |  |  | 3.4 |  |  |  | 1.1 |
Director Awards |  |  | — |  |  |  | — |  |  |  | 0.9 |  |  |  | 0.9 |
Total Stock-based Compensation Expense |  | $ | 2.4 |  |  | $ | 1.6 |  |  | $ | 4.3 |  |  | $ | 5.6 |

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