Inventories are stated at the lower-of-cost or net realizable value. Cost is determined using the first-in, first-out method. Finished products and work-in-process inventories include direct material costs and direct and indirect manufacturing costs. The Company records reserves for inventory that may be obsolete or in excess of current and future market demand. A summary of inventories is shown below:

(Dollars in Millions)	January 30, 2021		May 2, 2020
Finished Products	$	25.0	$	45.7
Work in Process		12.9		10.8
Raw Materials		86.1		74.5
Total Inventories	$	124.0	$	131.0

Property, plant and equipment is stated at cost. Maintenance and repair costs are expensed as incurred. Depreciation is calculated using the straight-line method using estimated useful lives of 5 to 40 years for buildings and building improvements and 3 to 15 years for machinery and equipment. A summary of property, plant and equipment is shown below:

(Dollars in Millions)	January 30, 2021			May 2, 2020
Land	$	3.4		$	3.3
Buildings and Building Improvements		84.5			87.3
Machinery and Equipment		440.6			412.3
Total Property, Plant and Equipment, Gross		528.5			502.9
Less: Accumulated Depreciation		(323.1	)		(301.0	)
Property, Plant and Equipment, Net	$	205.4		$	201.9

Depreciation expense was $8.7 million and $7.5 million in the three months ended January 30, 2021 and February 1, 2020, respectively. Depreciation expense was $23.7 million and $21.7 million in the nine months ended January 30, 2021 and February 1, 2020, respectively. As of January 30, 2021 and May 2, 2020, capital expenditures recorded in accounts payable totaled $1.1 million and $5.8 million, respectively.

The Company incurs pre-production tooling costs related to certain products produced for its customers under long-term supply arrangements. As of January 30, 2021 and May 2, 2020, the Company had $22.6 million and $37.1 million, respectively, of pre-production tooling costs related to customer-owned tools for which reimbursement is contractually guaranteed by the customer or for which the customer has provided a non-cancelable right to use the tooling. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred, unless the costs are reimbursable, as specified in a customer contract. As of January 30, 2021 and May 2, 2020, the Company had $16.3 million and $19.0 million, respectively, of Company owned pre-production tooling, which is capitalized within property, plant and equipment.

The Company is exposed to foreign currency risks that arise from normal business operations. The Company strives to control its exposure to these risks through our normal operating activities and, where appropriate, through derivative instruments. The Company does not hold derivative instruments for trading or speculative purposes.

The Company recognizes derivative instruments as either assets or liabilities in the condensed consolidated balance sheets at fair value and classifies the derivatives within Level 2 in the fair value hierarchy.

In April 2020, the Company entered into a variable-rate, cross-currency swap, maturing on August 31, 2023, with a

notional value of $60.0 million (€54.8 million). The cross-currency swap is designated as a hedge of the Company's net investment in a euro-based subsidiary. The Company entered into the cross-currency swap to mitigate changes in net assets due to changes in U.S.

dollar-euro spot exchange rates. The cross-currency swap was in a liability position with an aggregate fair value of $7.5 million and $1.3 million as of January 30, 2021 and May 2, 2020, respectively, and is recorded within other long-term liabilities in the condensed consolidated balance sheets. Hedge effectiveness is assessed at the inception of the hedging relationship and quarterly thereafter, under the spot-to-spot method. The Company records changes in fair value attributable to the translation of foreign currencies through accumulated other comprehensive income (loss). The Company recognizes the impact of all other changes in fair value of the derivative through interest expense, which was not material in the three and nine months ended January 30, 2021.

In January 2021, the Company began to use short-term foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-functional currency balance sheet exposures. These forward contracts are not designated as

hedging instruments. Gains and losses on these forward contracts are recognized in other income (expense), net, along with the foreign currency gains and losses on monetary assets and liabilities in the condensed consolidated statements of income.

As of January 30, 2021, the Company held foreign currency forward contracts with a notional value of $21.9 million. The forward contracts were in a liability position with an aggregate fair value of $0.2 million as of January 30, 2021 and are recorded within other accrued liabilities in the condensed consolidated balance sheets. During both the three and nine months ended January 30, 2021, losses of $0.2 million were recorded in earnings within other income (expense), net in the condensed consolidated statements of income.