{"url_path":"/sec/mei/10-k/2026/item-16","section_key":"item-16","section_title":"Item 16 Form 10-K Summary","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-24","source_url":"https://www.sec.gov/Archives/edgar/data/65270/0000065270-26-000031-index.html","accession_number":"0000065270-26-000031","cik":"0000065270","ticker":"MEI","issuer_name":"METHODE ELECTRONICS INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/65270/0000065270-26-000031-index.html","primary_entity_key":"0000065270","primary_entity_name":"METHODE ELECTRONICS INC"},"word_count":20810,"has_tables":true,"body_markdown":"Item 16. Form 10-K Summary\n\nNone.\n\n \n\n38\n\n \n\n[Table of Contents](#toc_page)\n\n \n\nSIGNATURES\n\nPursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant has duly caused this annual report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.\n\n \n\n \n\nMETHODE ELECTRONICS, INC.\n\n \n\n(Registrant)\n\n \n\n \n\n \n\nBy:\n\n/s/ Laura Kowalchik\n\n \n\nLaura Kowalchik\n\n \n\nChief Financial Officer\n\n \n\n(Principal Financial Officer)\n\n \n\nDated: June 24, 2026\n\n39\n\n \n\n[Table of Contents](#toc_page)\n\n \n\nPursuant to the requirements of the Securities Exchange Act of 1934, this annual report on Form 10-K has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.\n\n \n\nSignature\n\n \n\nTitle\n\n \n\nDate\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n/s/ MARK D. SCHWABERO\n\n \n\nChairman of the Board\n\n \n\nJune 24, 2026\n\nMark D. Schwabero\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n/s/ JONATHAN DEGAYNOR\n\n \n\nChief Executive Officer\n\n \n\nJune 24, 2026\n\nJonathan DeGaynor\n\n \n\n \n\n(Principal Executive Officer)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n/s/ LAURA KOWALCHIK\n\n \n\nChief Financial Officer\n\n \n\nJune 24, 2026\n\nLaura Kowalchik\n\n \n\n \n\n(Principal Financial Officer)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n/s/ STACIE SCHULZ\n\n \n\nChief Accounting Officer\n\n \n\nJune 24, 2026\n\nStacie Schulz\n\n \n\n \n\n(Principal Accounting Officer)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n/s/ DAVID P. BLOM\n\n \n\nDirector\n\n \n\nJune 24, 2026\n\nDavid P. Blom\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n/s/ THERESE M. BOBEK\n\n \n\nDirector\n\n \n\nJune 24, 2026\n\nTherese M. Bobek\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n/s/ BRIAN J. CADWALLADER\n\n \n\nDirector\n\n \n\nJune 24, 2026\n\nBrian J. Cadwallader\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n/s/ BRUCE K. CROWTHER\n\n \n\nDirector\n\n \n\nJune 24, 2026\n\nBruce K. Crowther\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n/s/ MARY A. LINDSEY\n\n \n\nDirector\n\n \n\nJune 24, 2026\n\nMary A. Lindsey\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n40\n\n \n\n[Table of Contents](#toc_page)\n\n \n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\n \n\nINDEX TO CONSOLIDATED FINANCIAL STATEMENTS\n\nAND FINANCIAL STATEMENT SCHEDULE\n\n \n\n \n\n \n\nConsolidated Financial Statements:\n\nPage\n\n \n\n \n\n \n\n \n\n[Report of Independent Registered Public Accounting Firm](#report_of_independent_registered_public_) (PCAOB ID: 42)\n\nF-2\n\n \n\n \n\n \n\n \n\n[Consolidated Balance Sheets — May 2, 2026 and May 3, 2025](#consolidated_balance_sheets)\n\nF-5\n\n \n\n \n\n \n\n \n\n[Consolidated Statements of Operations — Years Ended May 2, 2026, May 3, 2025 and April 27, 2024](#consolidated_statements_income)\n\nF-6\n\n \n\n \n\n \n\n \n\n[Consolidated Statements of Comprehensive Income (Loss) — Years Ended May 2, 2026, May 3, 2025 and April 27, 2024](#consolidated_statements_comprehensive_in)\n\nF-7\n\n \n\n \n\n \n\n \n\n[Consolidated Statements of Shareholders’ Equity — Years Ended May 2, 2026, May 3, 2025 and April 27, 2024](#consolidated_statements_shareholders_equ)\n\nF-8\n\n \n\n \n\n \n\n \n\n[Consolidated Statements of Cash Flows — Years Ended May 2, 2026, May 3, 2025 and April 27, 2024](#consolidated_statements_cash_flows)\n\nF-9\n\n \n\n \n\n \n\n \n\n[Notes to Consolidated Financial Statements](#notes_to_consolidated_financial_statemen)\n\nF-10\n\n \n\n \n\n \n\n \n\nConsolidated Financial Statement Schedule:\n\n \n\n \n\n \n\n \n\n \n\n[Schedule II — Valuation and Qualifying Accounts](#schedule_iivaluation_qualifying_accounts)\n\nF-40\n\nAll other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are immaterial and, therefore, have been omitted.\n\nF-1\n\n[Table of Contents](#toc_page)\n\n \n\nReport of Independent Registered Public Accounting Firm\n\nTo the Shareholders and the Board of Directors of Methode Electronics, Inc.\n\n \n\nOpinion on the Financial Statements\n\nWe have audited the accompanying consolidated balance sheets of Methode Electronics, Inc. and subsidiaries (the Company) as of May 2, 2026 and May 3, 2025, the related consolidated statements of operations, comprehensive income (loss), shareholders' equity and cash flows for each of the three years in the period ended May 2, 2026, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at May 2, 2026 and May 3, 2025, and the results of its operations and its cash flows for each of the three years in the period ended May 2, 2026, in conformity with U.S. generally accepted accounting principles.\n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of May 2, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated June 24, 2026 expressed an unqualified opinion thereon.\n\nBasis for Opinion\n\nThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\nCritical Audit Matter\n\nThe critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\nGoodwill Impairment Assessment of the Grakon Industrial Reporting Unit\n\nDescription of the Matter\n\n \n\nAt May 2, 2026, the Company’s Grakon Industrial reporting unit had $125.1 million of goodwill, as disclosed in Note 7 to the consolidated financial statements. Goodwill is tested for impairment at least annually or when impairment indicators are present. The Company determined the fair value of its Grakon Industrial reporting unit exceeded the carrying value.\n\nAuditing management’s goodwill impairment assessment of the Grakon Industrial reporting unit was complex and subjective, and required increased audit efforts, including the use of internal valuation specialists. The more subjective assumptions used in the fair value estimate were projected earnings before interest, taxes, depreciation and amortization margin, revenue growth rates, and the discount rate, which are all affected by expectations about future market or economic conditions.\n\nHow We Addressed the Matter in Our Audit\n\n \n\nWe obtained an understanding, evaluated the design and tested the operating effectiveness of relevant internal controls over the Company’s goodwill impairment assessment process for the Grakon Industrial reporting unit, including controls over management’s review of the significant assumptions discussed above. We also tested management’s controls over the completeness and accuracy of the underlying data used in the valuation.\n\nF-2\n\n[Table of Contents](#toc_page)\n\n \n\n \n\n \n\nTo test the estimated fair value of the Grakon Industrial reporting unit, our audit procedures included, among others, assessing methodologies and testing the significant assumptions described above and the underlying data used by the Company in its analysis. For example, we compared significant assumptions to historical performance and other guideline companies within the same industry. We performed a sensitivity analysis of the significant assumptions when necessary to evaluate the change in the fair value of the reporting unit resulting from changes in the assumptions. We also assessed the historical accuracy of management’s forecasting process and involved our valuation specialists to evaluate the model, methods, and certain significant assumptions, such as the discount rate.\n\n \n\n \n\n/s/ Ernst & Young LLP\n\nWe have served as the Company’s auditor since 1966.\n\nDetroit, Michigan\n\nJune 24, 2026\n\n \n\n \n\nF-3\n\n[Table of Contents](#toc_page)\n\n \n\nReport of Independent Registered Public Accounting Firm\n\nTo the Shareholders and the Board of Directors of Methode Electronics, Inc.\n\n \n\nOpinion on Internal Control Over Financial Reporting\n\nWe have audited Methode Electronics, Inc. and subsidiaries’ internal control over financial reporting as of May 2, 2026, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Methode Electronics, Inc. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of May 2, 2026, based on the COSO criteria.\n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of May 2, 2026 and May 3, 2025, the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity and cash flows for each of the three years in the period ended May 2, 2026, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) and our report dated June 24, 2026 expressed an unqualified opinion thereon.\n\nBasis for Opinion\n\nThe Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.\n\nOur audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.\n\nDefinition and Limitations of Internal Control Over Financial Reporting\n\nA company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.\n\n \n\n/s/ Ernst & Young LLP\n\nDetroit, Michigan\n\nJune 24, 2026\n\n \n\nF-4\n\n[Table of Contents](#toc_page)\n\n \n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nCONSOLIDATED BALANCE SHEETS\n\n(in millions, except share and per share data)\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\nASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n\n$\n\n139.6\n\n \n\n \n\n$\n\n103.6\n\n \n\nAccounts receivable, net\n\n \n\n \n\n257.3\n\n \n\n \n\n \n\n241.0\n\n \n\nInventories, net\n\n \n\n \n\n178.7\n\n \n\n \n\n \n\n194.1\n\n \n\nIncome tax receivable\n\n \n\n \n\n3.2\n\n \n\n \n\n \n\n4.1\n\n \n\nPrepaid expenses and other current assets\n\n \n\n \n\n21.2\n\n \n\n \n\n \n\n17.1\n\n \n\nTotal current assets\n\n \n\n \n\n600.0\n\n \n\n \n\n \n\n559.9\n\n \n\nLong-term assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\nProperty, plant and equipment, net\n\n \n\n \n\n209.3\n\n \n\n \n\n \n\n221.6\n\n \n\nGoodwill\n\n \n\n \n\n174.9\n\n \n\n \n\n \n\n172.7\n\n \n\nOther intangible assets, net\n\n \n\n \n\n218.9\n\n \n\n \n\n \n\n238.4\n\n \n\nOperating lease right-of-use assets, net\n\n \n\n \n\n20.5\n\n \n\n \n\n \n\n23.7\n\n \n\nDeferred tax assets\n\n \n\n \n\n39.5\n\n \n\n \n\n \n\n37.8\n\n \n\nPre-production costs\n\n \n\n \n\n18.2\n\n \n\n \n\n \n\n31.7\n\n \n\nOther long-term assets\n\n \n\n \n\n24.8\n\n \n\n \n\n \n\n20.0\n\n \n\nTotal long-term assets\n\n \n\n \n\n706.1\n\n \n\n \n\n \n\n745.9\n\n \n\nTotal assets\n\n \n\n$\n\n1,306.1\n\n \n\n \n\n$\n\n1,305.8\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLIABILITIES AND SHAREHOLDERS' EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable\n\n \n\n$\n\n134.1\n\n \n\n \n\n$\n\n125.9\n\n \n\nAccrued employee liabilities\n\n \n\n \n\n49.1\n\n \n\n \n\n \n\n32.0\n\n \n\nOther accrued liabilities\n\n \n\n \n\n45.6\n\n \n\n \n\n \n\n50.2\n\n \n\nShort-term operating lease liabilities\n\n \n\n \n\n8.9\n\n \n\n \n\n \n\n7.4\n\n \n\nShort-term debt\n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n0.2\n\n \n\nIncome tax payable\n\n \n\n \n\n15.6\n\n \n\n \n\n \n\n17.5\n\n \n\nTotal current liabilities\n\n \n\n \n\n253.5\n\n \n\n \n\n \n\n233.2\n\n \n\nLong-term liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nLong-term debt\n\n \n\n \n\n324.8\n\n \n\n \n\n \n\n317.4\n\n \n\nLong-term operating lease liabilities\n\n \n\n \n\n14.8\n\n \n\n \n\n \n\n18.2\n\n \n\nOther long-term liabilities\n\n \n\n \n\n5.8\n\n \n\n \n\n \n\n16.9\n\n \n\nDeferred tax liabilities\n\n \n\n \n\n29.7\n\n \n\n \n\n \n\n26.8\n\n \n\nTotal long-term liabilities\n\n \n\n \n\n375.1\n\n \n\n \n\n \n\n379.3\n\n \n\nTotal liabilities\n\n \n\n \n\n628.6\n\n \n\n \n\n \n\n612.5\n\n \n\nShareholders' equity:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCommon stock, $0.50 par value, 100,000,000 shares authorized, 36,806,583 shares and 37,151,365 shares issued as of May 2, 2026 and May 3, 2025, respectively\n\n \n\n \n\n18.4\n\n \n\n \n\n \n\n18.6\n\n \n\nAdditional paid-in capital\n\n \n\n \n\n200.1\n\n \n\n \n\n \n\n191.8\n\n \n\nAccumulated other comprehensive loss\n\n \n\n \n\n(8.8\n\n)\n\n \n\n \n\n(29.8\n\n)\n\nTreasury stock, 1,346,624 shares as of May 2, 2026 and May 3, 2025\n\n \n\n \n\n(11.5\n\n)\n\n \n\n \n\n(11.5\n\n)\n\nRetained earnings\n\n \n\n \n\n479.3\n\n \n\n \n\n \n\n524.2\n\n \n\nTotal shareholders' equity\n\n \n\n \n\n677.5\n\n \n\n \n\n \n\n693.3\n\n \n\nTotal liabilities and shareholders' equity\n\n \n\n$\n\n1,306.1\n\n \n\n \n\n$\n\n1,305.8\n\n \n\n \n\n \n\nSee notes to consolidated financial statements.\n\nF-5\n\n[Table of Contents](#toc_page)\n\n \n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\n(in millions, except per share data)\n\n \n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n \n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nNet sales\n\n \n\n$\n\n1,019.2\n\n \n\n \n\n$\n\n1,048.1\n\n \n\n \n\n$\n\n1,114.5\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCost of products sold\n\n \n\n \n\n817.0\n\n \n\n \n\n \n\n884.7\n\n \n\n \n\n \n\n935.7\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nGross profit\n\n \n\n \n\n202.2\n\n \n\n \n\n \n\n163.4\n\n \n\n \n\n \n\n178.8\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSelling and administrative expenses\n\n \n\n \n\n170.3\n\n \n\n \n\n \n\n163.9\n\n \n\n \n\n \n\n160.9\n\n \n\nGoodwill impairment\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n105.9\n\n \n\nAmortization of intangibles\n\n \n\n \n\n23.1\n\n \n\n \n\n \n\n23.4\n\n \n\n \n\n \n\n24.0\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIncome (loss) from operations\n\n \n\n \n\n8.8\n\n \n\n \n\n \n\n(23.9\n\n)\n\n \n\n \n\n(112.0\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest expense, net\n\n \n\n \n\n23.3\n\n \n\n \n\n \n\n22.0\n\n \n\n \n\n \n\n16.7\n\n \n\nOther expense (income), net\n\n \n\n \n\n(3.8\n\n)\n\n \n\n \n\n4.2\n\n \n\n \n\n \n\n(0.6\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPre-tax income (loss)\n\n \n\n \n\n(10.7\n\n)\n\n \n\n \n\n(50.1\n\n)\n\n \n\n \n\n(128.1\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIncome tax expense (benefit)\n\n \n\n \n\n25.0\n\n \n\n \n\n \n\n12.5\n\n \n\n \n\n \n\n(4.8\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income (loss) attributable to Methode\n\n \n\n$\n\n(35.7\n\n)\n\n \n\n$\n\n(62.6\n\n)\n\n \n\n$\n\n(123.3\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIncome (loss) per share attributable to Methode:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic\n\n \n\n$\n\n(1.01\n\n)\n\n \n\n$\n\n(1.77\n\n)\n\n \n\n$\n\n(3.48\n\n)\n\nDiluted\n\n \n\n$\n\n(1.01\n\n)\n\n \n\n$\n\n(1.77\n\n)\n\n \n\n$\n\n(3.48\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash dividends per share\n\n \n\n$\n\n0.22\n\n \n\n \n\n$\n\n0.56\n\n \n\n \n\n$\n\n0.56\n\n \n\n \n\nSee notes to consolidated financial statements.\n\nF-6\n\n[Table of Contents](#toc_page)\n\n \n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)\n\n(in millions)\n\n \n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n \n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nNet income (loss)\n\n \n\n$\n\n(35.7\n\n)\n\n \n\n$\n\n(62.6\n\n)\n\n \n\n$\n\n(123.3\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther comprehensive income (loss), net of tax:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForeign currency translation adjustments\n\n \n\n \n\n17.9\n\n \n\n \n\n \n\n8.3\n\n \n\n \n\n \n\n(16.7\n\n)\n\nDerivative financial instruments\n\n \n\n \n\n3.1\n\n \n\n \n\n \n\n(1.4\n\n)\n\n \n\n \n\n(1.0\n\n)\n\nOther comprehensive income (loss)\n\n \n\n \n\n21.0\n\n \n\n \n\n \n\n6.9\n\n \n\n \n\n \n\n(17.7\n\n)\n\nComprehensive income (loss) attributable to Methode\n\n \n\n$\n\n(14.7\n\n)\n\n \n\n$\n\n(55.7\n\n)\n\n \n\n$\n\n(141.0\n\n)\n\n \n\nSee notes to consolidated financial statements.\n\nF-7\n\n[Table of Contents](#toc_page)\n\n \n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nCONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY\n\n(in millions, except share data)\n\n \n\n \n\n \n\nCommon\nstock\nshares\n\n \n\n \n\nCommon\nstock\n\n \n\n \n\nAdditional\npaid-in\ncapital\n\n \n\n \n\nAccumulated\nother\ncomprehensive\nloss\n\n \n\n \n\nTreasury\nstock\n\n \n\n \n\nRetained\nearnings\n\n \n\n \n\nTotal\nshareholders'\nequity\n\n \n\nBalance as of April 29, 2023\n\n \n\n \n\n37,167,375\n\n \n\n \n\n$\n\n18.6\n\n \n\n \n\n$\n\n181.0\n\n \n\n \n\n$\n\n(19.0\n\n)\n\n \n\n$\n\n(11.5\n\n)\n\n \n\n$\n\n772.7\n\n \n\n \n\n$\n\n941.8\n\n \n\nIssuance of restricted stock, net of tax withholding\n\n \n\n \n\n255,120\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(3.8\n\n)\n\n \n\n \n\n(3.8\n\n)\n\nCancellation of restricted stock\n\n \n\n \n\n(144,000\n\n)\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nStock-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2.6\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2.6\n\n \n\nPurchases of common stock\n\n \n\n \n\n(627,586\n\n)\n\n \n\n \n\n(0.3\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(13.6\n\n)\n\n \n\n \n\n(13.9\n\n)\n\nOther comprehensive income (loss)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(17.7\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(17.7\n\n)\n\nNet income (loss)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(123.3\n\n)\n\n \n\n \n\n(123.3\n\n)\n\nDividends on common stock\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(19.7\n\n)\n\n \n\n \n\n(19.7\n\n)\n\nBalance as of April 27, 2024\n\n \n\n \n\n36,650,909\n\n \n\n \n\n \n\n18.3\n\n \n\n \n\n \n\n183.6\n\n \n\n \n\n \n\n(36.7\n\n)\n\n \n\n \n\n(11.5\n\n)\n\n \n\n \n\n612.3\n\n \n\n \n\n \n\n766.0\n\n \n\nIssuance of restricted stock, net of tax withholding\n\n \n\n \n\n715,781\n\n \n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4.3\n\n)\n\n \n\n \n\n(4.1\n\n)\n\nCancellation of restricted stock\n\n \n\n \n\n(79,325\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(0.2\n\n)\n\nStock-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6.5\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6.5\n\n \n\nPurchases of common stock\n\n \n\n \n\n(136,000\n\n)\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1.5\n\n)\n\n \n\n \n\n(1.6\n\n)\n\nConversion of cash bonus to RSUs\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n2.1\n\n \n\nOther comprehensive income (loss)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6.9\n\n \n\nNet income (loss)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(62.6\n\n)\n\n \n\n \n\n(62.6\n\n)\n\nDividends on common stock\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(19.7\n\n)\n\n \n\n \n\n(19.7\n\n)\n\nBalance as of May 3, 2025\n\n \n\n \n\n37,151,365\n\n \n\n \n\n \n\n18.6\n\n \n\n \n\n \n\n191.8\n\n \n\n \n\n \n\n(29.8\n\n)\n\n \n\n \n\n(11.5\n\n)\n\n \n\n \n\n524.2\n\n \n\n \n\n \n\n693.3\n\n \n\nIssuance of restricted stock, net of tax withholding\n\n \n\n \n\n365,567\n\n \n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1.4\n\n)\n\n \n\n \n\n(1.4\n\n)\n\nCancellation of restricted stock\n\n \n\n \n\n(710,349\n\n)\n\n \n\n \n\n(0.4\n\n)\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nStock-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n8.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n8.1\n\n \n\nOther comprehensive income (loss)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n21.0\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n21.0\n\n \n\nNet income (loss)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(35.7\n\n)\n\n \n\n \n\n(35.7\n\n)\n\nDividends on common stock\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(7.8\n\n)\n\n \n\n \n\n(7.8\n\n)\n\nBalance as of May 2, 2026\n\n \n\n \n\n36,806,583\n\n \n\n \n\n$\n\n18.4\n\n \n\n \n\n$\n\n200.1\n\n \n\n \n\n$\n\n(8.8\n\n)\n\n \n\n$\n\n(11.5\n\n)\n\n \n\n$\n\n479.3\n\n \n\n \n\n$\n\n677.5\n\n \n\n \n\nSee notes to consolidated financial statements.\n\nF-8\n\n[Table of Contents](#toc_page)\n\n \n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(in millions)\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n \n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nOperating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income (loss)\n\n \n\n$\n\n(35.7\n\n)\n\n \n\n$\n\n(62.6\n\n)\n\n \n\n$\n\n(123.3\n\n)\n\nAdjustments to reconcile net income (loss) to net cash provided by operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n\n \n\n58.8\n\n \n\n \n\n \n\n58.5\n\n \n\n \n\n \n\n57.9\n\n \n\nStock-based compensation expense\n\n \n\n \n\n8.5\n\n \n\n \n\n \n\n7.4\n\n \n\n \n\n \n\n3.6\n\n \n\nAmortization of debt issuance costs\n\n \n\n \n\n1.6\n\n \n\n \n\n \n\n1.1\n\n \n\n \n\n \n\n0.8\n\n \n\nPartial write-off of unamortized debt issuance costs\n\n \n\n \n\n0.6\n\n \n\n \n\n \n\n1.2\n\n \n\n \n\n \n\n—\n\n \n\n(Gain) loss on sale of property, plant and equipment\n\n \n\n \n\n(0.4\n\n)\n\n \n\n \n\n(0.5\n\n)\n\n \n\n \n\n(1.9\n\n)\n\n(Gain) loss on sale of business\n\n \n\n \n\n(11.2\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nImpairment of long-lived assets\n\n \n\n \n\n1.2\n\n \n\n \n\n \n\n1.1\n\n \n\n \n\n \n\n2.3\n\n \n\nInventory obsolescence\n\n \n\n \n\n8.0\n\n \n\n \n\n \n\n20.4\n\n \n\n \n\n \n\n10.4\n\n \n\nGoodwill impairment\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n105.9\n\n \n\nChange in deferred income taxes\n\n \n\n \n\n1.7\n\n \n\n \n\n \n\n(5.8\n\n)\n\n \n\n \n\n(20.8\n\n)\n\nOther\n\n \n\n \n\n(0.9\n\n)\n\n \n\n \n\n1.9\n\n \n\n \n\n \n\n(0.8\n\n)\n\nChanges in operating assets and liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts receivable, net\n\n \n\n \n\n(12.3\n\n)\n\n \n\n \n\n22.7\n\n \n\n \n\n \n\n48.0\n\n \n\nInventories, net\n\n \n\n \n\n7.9\n\n \n\n \n\n \n\n(25.7\n\n)\n\n \n\n \n\n(41.1\n\n)\n\nPrepaid expenses and other assets\n\n \n\n \n\n4.7\n\n \n\n \n\n \n\n17.3\n\n \n\n \n\n \n\n6.9\n\n \n\nAccounts payable\n\n \n\n \n\n7.4\n\n \n\n \n\n \n\n(5.4\n\n)\n\n \n\n \n\n(4.7\n\n)\n\nOther liabilities\n\n \n\n \n\n(1.9\n\n)\n\n \n\n \n\n(5.2\n\n)\n\n \n\n \n\n4.3\n\n \n\nNet cash provided (used) by operating activities\n\n \n\n \n\n38.0\n\n \n\n \n\n \n\n26.4\n\n \n\n \n\n \n\n47.5\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInvesting activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPurchases of property, plant and equipment\n\n \n\n \n\n(22.4\n\n)\n\n \n\n \n\n(41.6\n\n)\n\n \n\n \n\n(50.2\n\n)\n\nProceeds from redemption of life insurance\n\n \n\n \n\n3.2\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n10.8\n\n \n\nProceeds from settlement of net investment hedge\n\n \n\n \n\n—\n\n \n\n \n\n \n\n3.1\n\n \n\n \n\n \n\n0.6\n\n \n\nProceeds from disposition of assets\n\n \n\n \n\n5.3\n\n \n\n \n\n \n\n5.6\n\n \n\n \n\n \n\n21.3\n\n \n\nProceeds from sale of business\n\n \n\n \n\n15.2\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nNet cash provided (used) by investing activities\n\n \n\n \n\n1.3\n\n \n\n \n\n \n\n(32.9\n\n)\n\n \n\n \n\n(17.5\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFinancing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTaxes paid related to net share settlement of equity awards\n\n \n\n \n\n(1.4\n\n)\n\n \n\n \n\n(4.3\n\n)\n\n \n\n \n\n(3.8\n\n)\n\nRepayments of finance leases\n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n(0.2\n\n)\n\nDebt issuance costs\n\n \n\n \n\n(1.6\n\n)\n\n \n\n \n\n(1.8\n\n)\n\n \n\n \n\n(1.1\n\n)\n\nPurchases of common stock\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1.6\n\n)\n\n \n\n \n\n(13.7\n\n)\n\nCash dividends\n\n \n\n \n\n(8.3\n\n)\n\n \n\n \n\n(20.4\n\n)\n\n \n\n \n\n(19.9\n\n)\n\nPurchase of redeemable noncontrolling interest\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(10.9\n\n)\n\nProceeds from borrowings\n\n \n\n \n\n88.5\n\n \n\n \n\n \n\n138.0\n\n \n\n \n\n \n\n237.9\n\n \n\nRepayments of borrowings\n\n \n\n \n\n(91.2\n\n)\n\n \n\n \n\n(168.6\n\n)\n\n \n\n \n\n(207.2\n\n)\n\nNet cash provided (used) by financing activities\n\n \n\n \n\n(14.2\n\n)\n\n \n\n \n\n(58.9\n\n)\n\n \n\n \n\n(18.9\n\n)\n\nEffect of foreign currency exchange rate changes on cash and cash equivalents\n\n \n\n \n\n10.9\n\n \n\n \n\n \n\n7.5\n\n \n\n \n\n \n\n(6.6\n\n)\n\nIncrease (decrease) in cash and cash equivalents\n\n \n\n \n\n36.0\n\n \n\n \n\n \n\n(57.9\n\n)\n\n \n\n \n\n4.5\n\n \n\nCash and cash equivalents at beginning of the year\n\n \n\n \n\n103.6\n\n \n\n \n\n \n\n161.5\n\n \n\n \n\n \n\n157.0\n\n \n\nCash and cash equivalents at end of the year\n\n \n\n$\n\n139.6\n\n \n\n \n\n$\n\n103.6\n\n \n\n \n\n$\n\n161.5\n\n \n\n \n\n \n\n \n\nSupplemental cash flow information:\n\n \n\n \n\n \n\nCash paid during the period for:\n\n \n\n \n\n \n\nInterest\n\n$\n\n20.9\n\n \n\n$\n\n23.4\n\n \n\n$\n\n17.0\n\n \n\nIncome taxes, net of refunds\n\n$\n\n24.6\n\n \n\n$\n\n22.3\n\n \n\n$\n\n15.0\n\n \n\n \n\nSee notes to consolidated financial statements.\n\nF-9\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nNote 1. Description of Business and Summary of Significant Accounting Policies\n\nMethode Electronics, Inc. (the “Company” or “Methode”) is a leading global supplier of custom engineered solutions with sales, engineering, and manufacturing locations in North America, Europe, the Middle East, and Asia. The Company designs, engineers, and manufactures mechatronic products for Original Equipment Manufacturers (“OEMs”) and tiered suppliers across mobility, industrial, and commercial markets. The Company’s capabilities include power distribution, including busbars, smart connect systems, battery disconnect units, and integrated circuit boards; as well as user interface components, specialized light-emitting diode (“LED”) lighting solutions, and sensor applications.\n\nThe Company’s products are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing and data center infrastructure, construction equipment and consumer appliance.\n\nFinancial reporting periods. The Company’s fiscal year ends on the Saturday closest to April 30 of the following year, typically resulting in a 52-week year, but occasionally giving rise to an additional week, resulting in a 53-week year. The fiscal year ended May 2, 2026 was a 52-week fiscal year. Fiscal 2025 ended on May 3, 2025 and was a 53-week fiscal year and fiscal 2024 ended on April 27, 2024 and was a 52-week fiscal year.\n\nBasis of presentation. The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The consolidated financial statements include the accounts and operations of the Company and its wholly and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.\n\nReclassifications. Certain prior period amounts have been reclassified to conform to the current year presentation.\n\nUse of estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates and assumptions are subject to an inherent degree of uncertainty and may change, as new events occur, and additional information is obtained. As a result, actual results may differ from previously estimated amounts, and such differences may be material to the consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they occur.\n\nCash and cash equivalents. Cash and cash equivalents consist of cash and highly liquid investments with a maturity of three months or less. Highly liquid investments include money market funds which are classified within Level 1 of the fair value hierarchy. As of May 2, 2026 and May 3, 2025, the Company had a balance of $0.2 million and $0.2 million, respectively, in money market accounts.\n\nAccounts receivable and allowance for doubtful accounts. Accounts receivable are customer obligations due under normal trade terms and are presented net of an allowance for doubtful accounts. The Company establishes an allowance for doubtful accounts based on the current expected credit loss impairment model. The Company applies a historical loss rate based on historic write-offs to aging categories. The historical loss rate is adjusted for current conditions, and reasonable and supportable forecasts of future losses as necessary. The Company may also record a specific reserve for individual accounts when it becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer’s operating results or financial position. The allowance for doubtful accounts balance was $2.7 million and $3.0 million as of May 2, 2026 and May 3, 2025, respectively.\n\nConcentration of credit risk. Financial assets that subject the Company to concentration of credit risk consist primarily of cash equivalents, derivative contracts, and accounts receivable. The Company’s counterparties for cash equivalents and derivative contracts are banks and financial institutions that meet the Company’s requirement of high credit standing. However, the balances with U.S. financial institutions often exceed the amount of insurance provided on such accounts by the Federal Deposit Insurance Corporation.\n\nFor accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers. The Company generally does not require collateral, but rather performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customers’ current credit worthiness. The following customers accounted for more than 10% of net sales:\n\n \n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\nApril 27, 2024\n\n \n\nCustomer A\n\n \n\n*\n\n \n\n \n\n*\n\n \n\n \n\n14.6\n\n%\n\nCustomer B\n\n \n\n \n\n10.9\n\n%\n\n \n\n*\n\n \n\n*\n\n \n\n* less than 10%\n\nAt May 2, 2026 and May 3, 2025, no customer accounted for greater than 10% of the Company’s accounts receivable.\n\nF-10\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nInventories. 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. See Note 5, “Inventories” for additional information.\n\nProperty, plant and equipment. Property, plant and equipment are recorded at cost less accumulated depreciation, with the exception of assets acquired through acquisitions, which are initially recorded at fair value. Equipment acquired under a finance lease is recorded at the present value of the future minimum lease payments. Depreciation is computed using the straight-line method over the estimated useful lives of 5 to 40 years for buildings and building improvements, 7 to 15 years for machinery and equipment, and 3 years for computer equipment. Costs of additions and major improvements are capitalized, whereas maintenance and repairs that do not improve or extend the life of the asset are charged to expense as incurred. See Note 6, “Property, Plant and Equipment” for additional information.\n\nSale of assets and assets held for sale. The Company classifies long-lived assets to be sold as held for sale in the period in which all of the required criteria under Accounting Standards Codification (“ASC”) 360 “Impairment or disposal of long-lived assets” are met. The Company initially measures a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon determining that a long-lived asset meets the criteria to be classified as held for sale, the Company ceases depreciation and reports long-lived assets as “Assets held for sale” on the consolidated balance sheets. There were no assets held for sale for the year ended May 2, 2026 and May 3, 2025. See Note 3, “Acquisitions and Dispositions” for additional information.\n\nBusiness combinations. The Company accounts for business combinations using the acquisition method. The purchase price of an acquired business is allocated to its identifiable assets and liabilities based on estimated fair values. Determining the fair values of assets acquired and liabilities assumed requires management’s judgment, the utilization of independent appraisal firms and often involves the use of significant estimates and assumptions with respect to the timing and amount of future cash flows, market rate assumptions, actuarial assumptions, and appropriate discount rates, among other items. Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. Identifiable intangible assets with finite lives are amortized over their useful lives. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date.\n\nGoodwill. Goodwill is not amortized but is tested for impairment on at least an annual basis as of the beginning of the fourth quarter each year, or more frequently if indicators of potential impairment exists. Goodwill is evaluated at the reporting unit level by comparing the fair value of the reporting unit with its carrying amount including goodwill. An impairment of goodwill exists if the carrying amount of the reporting unit exceeds its fair value. The impairment is the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to that reporting unit.\n\nIn performing the goodwill impairment test, the Company may first assess qualitative factors to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. See Note 7, “Goodwill and Other Intangible Assets” for additional information regarding the Company’s goodwill impairment assessment for fiscal 2026.\n\nAmortizable intangible assets. Amortizable intangible assets consist primarily of fair values assigned to customer relationships and trade names. Amortization is recognized over the useful lives of the intangible assets, generally up to 20 years, using the straight-line method. See Note 7, “Goodwill and Other Intangible Assets” for additional information.\n\nImpairment of long-lived assets. The Company evaluates whether events and circumstances have occurred which indicate that the remaining estimated useful lives of its intangible assets, excluding goodwill, and other long-lived assets, may warrant revision or that the remaining balance of such assets may not be recoverable. If impairment indicators exist, the Company performs an impairment analysis by comparing the undiscounted cash flows resulting from the use of the asset group to the carrying amount. If the carrying amount exceeds the undiscounted cash flows, an impairment loss is recognized based on the excess of the asset’s carrying amount over its fair value. Fair value is determined using either the market approach, cost approach or anticipated cash flows discounted at a rate commensurate with the risk involved. See Note 4, “Restructuring and Asset Impairment Charges” for additional information.\n\nF-11\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nPre-production costs related to long-term supply arrangements. The Company incurs pre-production tooling costs related to products produced for its customers under long-term supply arrangements. Engineering, testing, and other costs incurred in the design and development of production parts are expensed as incurred, unless the costs are reimbursable by the customer. As of May 2, 2026 and May 3, 2025, the Company had $18.2 million and $31.7 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.\n\nCosts for molds, dies and other tools used in products produced for its customers under long-term supply arrangements for which the Company has title are capitalized in property, plant and equipment and depreciated over the shorter of the life of the arrangement or over the estimated useful life of the assets. Company owned tooling was $9.6 million and $12.9 million as of May 2, 2026 and May 3, 2025, respectively.\n\nLeases. The Company determines if an arrangement is a lease at inception. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company estimates the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company utilizes certain practical expedients, including the election not to reassess its prior conclusions about lease identification, lease classification, and initial direct costs, as well as the election not to separate lease and non-lease components for arrangements where the Company is a lessee. The Company elects to recognize a right-of-use asset and related lease liability for leases with a lease term of 12 months or less for all classes of underlying assets. Lease expense is recognized on a straight-line basis over the lease term. See Note 16, “Leases” for additional information.\n\nDerivative financial instruments. The Company uses derivative financial instruments, including swaps and forward contracts, to manage exposures to changes in currency exchange rates and interest rates. The Company does not enter into or hold derivative financial instruments for trading or speculative purposes. See Note 8, “Derivative Financial Instruments and Hedging Activities” for additional information.\n\nIncome taxes. Income taxes are calculated using the asset and liability method, under which deferred tax assets and liabilities are determined based on temporary differences between the financial statement amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining whether an uncertain tax position exists, the Company determines, based solely on its technical merits, whether the tax position is more likely than not to be sustained upon examination, and if so, a tax benefit is measured on a cumulative probability basis that is more likely than not to be realized upon the ultimate settlement. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. The Company has made an accounting policy election to reflect the effect of global intangible low-tax income (“GILTI”) taxes, if any, as a current period tax expense when incurred. See Note 11, “Income Taxes” for additional information.\n\nRevenue recognition. Revenue is recognized in accordance with ASC 606, “Revenue from Contracts with Customers.” Revenue is measured based on consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. From time to time, customers may negotiate annual price downs. Management has evaluated these price downs and determined that in some instances, these price downs give rise to a material right. In instances that a material right exists, a portion of the transaction price is allocated to the material right and recognized over the life of the contract.\n\nAcross all products, the amount of revenue recognized corresponds to the related purchase order and is adjusted for variable consideration (such as discounts). Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue.\n\nThe Company’s performance obligations are typically short-term in nature. As a result, the Company has elected the practical expedient that provides an exemption from the disclosure requirements regarding information about remaining performance obligations on contracts that have original expected durations of one year or less. See Note 2, “Revenue” for additional information.\n\nShipping and handling fees and costs. Shipping and handling fees billed to customers are included in net sales, and the related costs are included in selling and administrative expenses.\n\nF-12\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nRestructuring expense. Restructuring expense includes costs directly associated with exit or disposal activities. Such costs include employee severance and termination benefits, asset impairment charges, contract termination fees, and other exit or disposal costs. Employee termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable. Asset impairment charges relate to the impairment of ROU lease assets, and property, plant and equipment. Contract termination costs are recorded when notification of termination is given to the other party. See Note 4, “Restructuring and Asset Impairment Charges” for additional information.\n\nForeign currency translation. The functional currencies of the majority of the Company’s foreign subsidiaries are their local currencies. The results of operations of these foreign subsidiaries are translated into U.S. dollars using average monthly rates, while the assets and liabilities are translated using period-end exchange rates. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) (“AOCI(L)”). Gains and losses arising from transactions denominated in a currency other than the functional currency, except certain long-term intercompany transactions, are included in the consolidated statements of operations in other expense (income), net. Net foreign exchange losses were $7.7 million, $5.5 million and $2.2 million in fiscal 2026, fiscal 2025, and fiscal 2024, respectively.\n\nGovernment incentives and grants. From time to time, the Company receives government grants in the form of cash grants and other incentives in return for past or future compliance with certain conditions. The Company accounts for funds received from government grants by analogy to International Accounting Standards 20, “Accounting for Government Grants and Disclosure of Government Assistance.” Accordingly, the Company recognizes government grants in the consolidated statements of operations when there is reasonable assurance that it will comply with the conditions associated with the grant and the grants will be received.\n\nGovernment grants are recorded in the consolidated financial statements in accordance with their purpose as a reduction of expenses, a reduction of asset costs, or other income. Incentives related to specific operating activities are offset against the related expense in the period the expense is incurred. The Company recorded $0.7 million, $2.2 million and $0.5 million of government grants as other income, net in fiscal 2026, fiscal 2025, and fiscal 2024, respectively. The Company recorded $0.1 million, $0.1 million and $0.3 million of government grants as a reduction of cost of goods sold and selling and administrative expense in fiscal 2026, fiscal 2025, and fiscal 2024, respectively.\n\nSome government grants are paid over a period of years and are recorded at amortized cost on the consolidated balance sheets. As of May 2, 2026 and May 3, 2025, grant receivables outstanding were $9.1 million and $13.6 million, respectively. The short-term and long-term portion of grant receivables are recorded on the consolidated balance sheets within accounts receivable, net and other long-term assets, respectively.\n\nResearch and development costs. Costs associated with the enhancement of existing products and the development of new products are charged to expense when incurred. Research and development expenses primarily relate to product engineering, and design and development expenses and are classified as a component of cost of goods sold on the consolidated statements of operations. Research and development costs were $37.5 million, $41.8 million and $49.1 million for fiscal 2026, fiscal 2025 and fiscal 2024, respectively.\n\nStock-based compensation. The Company recognizes compensation expense for the cost of awards of equity compensation using a fair value method in accordance with ASC 718, “Stock-based Compensation.” See Note 13, “Shareholders’ Equity” for additional information.\n\nProduct warranty. The Company’s warranties are standard, assurance-type warranties only. The Company does not offer any additional service or extended term warranties to its customers. As such, warranty obligations are accrued when it’s probable that a liability has been incurred and the related amounts are reasonably estimable.\n\nRelated party transactions. The Company identifies related party transactions for disclosure in accordance with ASC 850, “Related Party Disclosures.” See Note 17, “Related Party Transactions” for additional information.\n\nFair value measurement. ASC 820, “Fair Value Measurement,” provides a framework for measuring fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy under ASC 820 requires an entity to maximize the use of observable inputs. The Company groups assets and liabilities at fair value in three levels as follows:\n\n•\nLevel 1 - Quoted prices in active markets for identical assets or liabilities;\n\n•\nLevel 2 - Observable inputs for similar assets or liabilities adjusted for terms specific to the asset or liability;\n\n•\nLevel 3 - Unobservable inputs in which little or no market activity exists, requiring the Company to develop its own assumptions that market participants would use to value the asset or liability.\n\nF-13\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nAssets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Changes to the observability of valuation inputs may result in a reclassification of levels for certain assets and liabilities within the fair value hierarchy.\n\nRecently Adopted Accounting Pronouncements\n\nIn December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” ASU No. 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The Company adopted this ASU on May 2, 2026. See to Note 11, “Income Taxes” for the new required disclosures.\n\nNew Accounting Pronouncements Not Yet Adopted\n\nIn November 2024, the FASB issued ASU 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures.” ASU 2024-03 requires public entities to disclose more detailed information about certain costs and expenses presented in the income statement, including inventory purchases, employee compensation, selling expenses and depreciation. ASU 2024-03 will become effective for the Company’s annual periods beginning in fiscal 2028. Early adoption is permitted. The Company is currently evaluating the effect of this ASU on its financial statement disclosures.\n\nIn November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements”. The amendments clarify and enhance certain aspects of the hedge accounting guidance in ASC Topic 815. ASU No. 2025-09 will become effective for the Company’s annual periods beginning in fiscal 2028. The Company is currently evaluating the effects of this ASU on its financial statements and disclosures.\n\nThere have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a material effect on the Company’s consolidated financial statements. Further, at May 2, 2026, there are no other pronouncements pending adoption that are expected to have a material effect on the Company’s consolidated financial statements.\n\nNote 2. Revenue\n\nThe Company generates revenue from manufacturing products for its customers in diversified global markets under multi-year programs. Typically, these programs do not contain a firm commitment by the customer for volume or price and do not reach the level of a performance obligation until the Company receives either a purchase order and/or a materials release from the customer for a specific quantity at a specified price, at which point an enforceable contract exists. Contracts may also provide for annual price reductions over the production life of a program, and prices may be adjusted on an ongoing basis to reflect changes in product content/cost and other commercial factors.\n\nThe majority of the Company’s revenue is recognized at a point in time. The Company has determined that the most definitive demonstration that control has transferred to a customer is physical shipment or delivery, depending on the contractual shipping terms, except for consignment transactions. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon the customer’s usage. The Company’s revenue also includes customer cost recoveries, which represent reimbursements the Company receives from customers for incremental costs associated with spot purchases of raw materials and premium freight incurred in fulfilling its performance obligation to the customer. Given these cost recoveries are generally negotiated after contract inception, the Company accounts for these cost recoveries as a modification to the existing contract. The Company recognizes cost recoveries as revenue when (or as) the remaining performance obligations per the contract are satisfied, or on the modification date if all performance obligations under the contract have been previously satisfied.\n\nRevenue associated with products which the Company believes have no alternative use (such as highly customized parts), and where the Company has an enforceable right to payment, are recognized on an over time basis. Revenue is recognized based on progress to date, which is typically even over the production process through transfer of control to the customer. For fiscal 2026, fiscal 2025, and fiscal 2024, revenue recognized over time was $9.2 million, $10.7 million, and $14.8 million respectively.\n\nThe Company’s payment terms with its customers are typically 30-60 days from the time control transfers. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606 to not assess whether a contract has a significant financing component.\n\nF-14\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nCosts to fulfill/obtain a contract\n\nThe Company incurs pre-production tooling costs related to products produced for customers under long-term supply arrangements. These costs are capitalized and recognized into income upon acceptance. The Company concluded that pre-production tooling and engineering costs do not represent a promised good or service under ASC 606, and as such, reimbursements received are accounted for as a reimbursement of the expense, not revenue.\n\nThe Company has not historically incurred material costs to obtain a contract. In the instances that costs to obtain contracts are incurred, the Company will capitalize the payment as an asset and amortize the asset as a reduction of revenue over the life of the contract.\n\nContract balances\n\nThe Company receives payment from customers based on the contractual billing schedule and specific performance requirements established in the contract. Billings are recorded as accounts receivable when an unconditional right to the contractual consideration exists. A contract asset is an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer. A contract liability exists when an entity has received consideration, or the amount is due from the customer in advance of revenue recognition. Contract assets and contract liabilities are recognized in other current assets and other accrued liabilities, respectively, in the consolidated balance sheets and were immaterial as of May 2, 2026 and May 3, 2025.\n\nDisaggregated revenue information\n\nThe following table shows disaggregated revenue from contracts with customers by segment and geographical location. Net sales are attributed to regions based on the location of production. Though revenue recognition patterns and contracts are generally consistent, the amount, timing and uncertainty of revenue and cash flows may vary in each reportable segment due to geographic and economic factors.\n\n \n\n \n\nFiscal Year Ended May 2, 2026 (52 Weeks)\n\n \n\n(in millions)\n\n \n\nAutomotive\n\n \n\n \n\nIndustrial\n\n \n\n \n\nInterface\n\n \n\n \n\nMedical\n\n \n\n \n\nTotal\n\n \n\nGeographic net sales:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNorth America\n\n \n\n$\n\n188.1\n\n \n\n \n\n$\n\n184.2\n\n \n\n \n\n$\n\n27.2\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n399.5\n\n \n\nEurope, the Middle East & Africa (\"EMEA\")\n\n \n\n \n\n246.5\n\n \n\n \n\n \n\n211.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n457.6\n\n \n\nAsia\n\n \n\n \n\n33.1\n\n \n\n \n\n \n\n129.0\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n162.1\n\n \n\nTotal net sales\n\n \n\n$\n\n467.7\n\n \n\n \n\n$\n\n524.3\n\n \n\n \n\n$\n\n27.2\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,019.2\n\n \n\n \n\n \n\n \n\nFiscal Year Ended May 3, 2025 (53 Weeks)\n\n \n\n(in millions)\n\n \n\nAutomotive\n\n \n\n \n\nIndustrial\n\n \n\n \n\nInterface\n\n \n\n \n\nMedical\n\n \n\n \n\nTotal\n\n \n\nGeographic net sales:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNorth America\n\n \n\n$\n\n237.1\n\n \n\n \n\n$\n\n179.3\n\n \n\n \n\n$\n\n51.8\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n468.2\n\n \n\nEMEA\n\n \n\n \n\n239.5\n\n \n\n \n\n \n\n177.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n417.3\n\n \n\nAsia\n\n \n\n \n\n32.3\n\n \n\n \n\n \n\n130.3\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n162.6\n\n \n\nTotal net sales\n\n \n\n$\n\n508.9\n\n \n\n \n\n$\n\n487.4\n\n \n\n \n\n$\n\n51.8\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,048.1\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFiscal Year Ended April 27, 2024 (52 Weeks)\n\n \n\n(in millions)\n\n \n\nAutomotive\n\n \n\n \n\nIndustrial\n\n \n\n \n\nInterface\n\n \n\n \n\nMedical\n\n \n\n \n\nTotal\n\n \n\nGeographic net sales:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNorth America\n\n \n\n$\n\n265.6\n\n \n\n \n\n$\n\n186.2\n\n \n\n \n\n$\n\n53.8\n\n \n\n \n\n$\n\n2.3\n\n \n\n \n\n$\n\n507.9\n\n \n\nEMEA\n\n \n\n \n\n216.2\n\n \n\n \n\n \n\n174.2\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n390.4\n\n \n\nAsia\n\n \n\n \n\n116.4\n\n \n\n \n\n \n\n99.7\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n216.2\n\n \n\nTotal net sales\n\n \n\n$\n\n598.2\n\n \n\n \n\n$\n\n460.1\n\n \n\n \n\n$\n\n53.8\n\n \n\n \n\n$\n\n2.4\n\n \n\n \n\n$\n\n1,114.5\n\n \n\nCommercial Agreements\n\nDuring the fiscal year ended May 2, 2026, the Company was engaged in commercial negotiations with certain customers for performance obligations completed in the ordinary course of business. After year-end, and prior to the issuance of these consolidated financial statements, the Company executed final settlement agreements with these customers resolving measurement uncertainty that existed at the balance sheet date. Under the terms of the agreements, the transaction price was allocated between past and future\n\nF-15\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nperformance obligations. Accordingly, the Company adjusted the contract transaction price to reflect the finalized terms resulting in the recognition of $22.5 million in revenue for the fiscal year ended May 2, 2026, and $11.0 million in accounts receivable and $13.3 million in notes receivable as of May 2, 2026. The remaining $1.7 million has been recorded as a contract liability (deferred revenue), $0.2 million within other current liabilities and $1.5 million in other long-term liabilities as of May 2, 2026, which will be recognized as revenue in future periods as those remaining performance obligations are satisfied.\n\n \n\nNote 3. Acquisitions and Dispositions\n\nDispositions\n\nIn the fourth quarter of fiscal 2026, the Company entered into and closed on an asset purchase agreement with a third-party pursuant to which the Company sold substantially all of the assets of its dataMate business (the “Transaction”). The aggregate consideration for the Transaction consists of a purchase price of $16.4 million, subject to customary working capital adjustments, and the Company recorded a gain on the sale of $11.2 million which was included in other expense (income), net on the Company’s consolidated statements of operations in the fourth quarter of fiscal 2026. The Company recorded transaction costs of $1.4 million which was included in selling and administrative expenses on the Company’s consolidated statements of operations in the fiscal year ended May 2, 2026. The sale of the dataMate business does not qualify as a discontinued operations as it does not represent a strategic shift that would have a major effect on the Company’s operations or financial results.\n\nOn April 30, 2026, the Company sold one of its locations to a third party pursuant to a purchase and sale agreement for a purchase price of $4.7 million. The Company recognized a gain on the transaction of $1.0 million in the fourth quarter of fiscal 2026, which was included in other expense (income), net on the consolidated statements of operations.\n\nOn the July 14, 2025, the Company sold a warehouse to a third party pursuant to a purchase and sale agreement for a purchase price of $1.3 million. The Company recognized a gain on the transaction of $0.5 million in the first quarter of fiscal 2026, which was included in other expense (income), net on the consolidated statements of operations.\n\nIn the first quarter of fiscal 2024, the Company made the decision to initiate the discontinuation of its Dabir Surfaces business in the Medical segment. On October 13, 2023, the Company sold certain assets and contracts of its Dabir Surfaces business to a third party for consideration of $1.5 million. In the second quarter of fiscal 2024, the Company recorded a loss on the sale, including transaction costs, of $0.6 million, which was included in other expense (income), net on the Company’s consolidated statements of operations. The discontinuation of the Dabir Surfaces business does not qualify as a discontinued operation as it does not represent a strategic shift that would have a major effect on the Company’s operations or financial results.\n\nIn fiscal 2024, the Company sold the company aircraft for a sales price of $19.4 million, generating a gain on sale of $2.4 million. The gain on sale was included in other expense (income), net on the consolidated statements of operations.\n\n \n\nNote 4. Restructuring and Asset Impairment Charges\n\nRestructuring and impairment charges includes costs related to restructuring actions taken by the Company as well as long-lived asset impairments.\n\nThe Company continually monitors market factors and industry trends and takes restructuring actions to reduce overall costs and improve operational profitability as appropriate. Restructuring actions generally result in charges for employee termination benefits, plant closures, asset impairments, and/or contract termination costs.\n\nComponents of restructuring and asset impairment charges were as follows:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n(in millions)\n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nEmployee termination benefits\n\n \n\n$\n\n3.8\n\n \n\n \n\n$\n\n1.6\n\n \n\n \n\n$\n\n1.3\n\n \n\nAsset impairment charges\n\n \n\n \n\n1.2\n\n \n\n \n\n \n\n1.1\n\n \n\n \n\n \n\n2.4\n\n \n\nTotal\n\n \n\n$\n\n5.0\n\n \n\n \n\n$\n\n2.7\n\n \n\n \n\n$\n\n3.7\n\n \n\n \n\nF-16\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nThe table below presents restructuring and asset impairment charges by reportable segment:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n(in millions)\n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nAutomotive\n\n \n\n$\n\n1.8\n\n \n\n \n\n$\n\n0.9\n\n \n\n \n\n$\n\n0.7\n\n \n\nIndustrial\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n0.8\n\n \n\n \n\n \n\n0.7\n\n \n\nInterface\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.1\n\n \n\nMedical\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1.1\n\n \n\nEliminations/Corporate\n\n \n\n \n\n2.8\n\n \n\n \n\n \n\n1.0\n\n \n\n \n\n \n\n1.1\n\n \n\nTotal\n\n \n\n$\n\n5.0\n\n \n\n \n\n$\n\n2.7\n\n \n\n \n\n$\n\n3.7\n\n \n\nRecognized in:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCost of products sold\n\n \n\n$\n\n0.8\n\n \n\n \n\n$\n\n1.1\n\n \n\n \n\n$\n\n1.7\n\n \n\nSelling and administrative expenses\n\n \n\n \n\n4.2\n\n \n\n \n\n \n\n1.6\n\n \n\n \n\n \n\n2.0\n\n \n\n \n\n \n\n$\n\n5.0\n\n \n\n \n\n$\n\n2.7\n\n \n\n \n\n$\n\n3.7\n\n \n\nThe Company’s restructuring liability was $1.0 million and $0.7 million as of May 2, 2026 and May 3, 2025, respectively. Estimates of restructuring costs are based on information available at the time such charges are recorded. Due to the inherent uncertainty involved in estimating restructuring costs, actual amounts paid for such activities may differ from amounts initially recorded. Accordingly, the Company may record revisions of previous estimates by adjusting previously established accruals. The Company may take additional restructuring actions in future periods based upon market conditions and industry trends.\n\nIn fiscal 2026, the Company entered into a sublease agreement to exit its corporate headquarters in Chicago, Illinois, resulting in a $0.5 million impairment charge associated with certain leasehold improvements and a $0.6 million impairment charge on the corresponding right of use operating lease asset; see Note 16, “Leases” for additional information.\n\n \n\n \n\nNote 5. Inventories\n\nA summary of inventories, net is shown below:\n\n(in millions)\n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\nFinished products\n\n \n\n$\n\n52.9\n\n \n\n \n\n$\n\n44.3\n\n \n\nWork-in-process\n\n \n\n \n\n22.9\n\n \n\n \n\n \n\n20.7\n\n \n\nRaw materials\n\n \n\n \n\n129.8\n\n \n\n \n\n \n\n158.0\n\n \n\nGross inventories\n\n \n\n \n\n205.6\n\n \n\n \n\n \n\n223.0\n\n \n\nInventory reserves\n\n \n\n \n\n(26.9\n\n)\n\n \n\n \n\n(28.9\n\n)\n\nTotal inventories, net\n\n \n\n$\n\n178.7\n\n \n\n \n\n$\n\n194.1\n\n \n\n \n\nNote 6. Property, Plant and Equipment\n\nA summary of property, plant and equipment, net is shown below:\n\n(in millions)\n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\nLand\n\n \n\n$\n\n2.6\n\n \n\n \n\n$\n\n3.3\n\n \n\nBuildings and building improvements\n\n \n\n \n\n101.9\n\n \n\n \n\n \n\n104.6\n\n \n\nMachinery and equipment\n\n \n\n \n\n453.8\n\n \n\n \n\n \n\n424.2\n\n \n\nConstruction in progress\n\n \n\n \n\n35.5\n\n \n\n \n\n \n\n47.9\n\n \n\nTotal property, plant and equipment, gross\n\n \n\n \n\n593.8\n\n \n\n \n\n \n\n580.0\n\n \n\nLess: accumulated depreciation\n\n \n\n \n\n(384.5\n\n)\n\n \n\n \n\n(358.4\n\n)\n\nProperty, plant and equipment, net\n\n \n\n$\n\n209.3\n\n \n\n \n\n$\n\n221.6\n\n \n\nDepreciation expense was $35.7 million, $35.1 million, and $33.9 million in fiscal 2026, fiscal 2025 and fiscal 2024, respectively. As of May 2, 2026, May 3, 2025 and April 27, 2024, capital expenditures recorded in accounts payable totaled $1.3 million, $3.3 million, and $6.1 million, respectively.\n\n \n\nF-17\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nNote 7. Goodwill and Other Intangible Assets\n\nGoodwill\n\nA summary of the changes in goodwill by reportable segment is as follows:\n\n(in millions)\n\n \n\nAutomotive\n\n \n\n \n\nIndustrial\n\n \n\n \n\nTotal\n\n \n\nBalance as of April 29, 2023\n\n \n\n$\n\n106.2\n\n \n\n \n\n$\n\n195.7\n\n \n\n \n\n$\n\n301.9\n\n \n\nAcquisition\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(24.3\n\n)\n\n \n\n \n\n(24.3\n\n)\n\nImpairment\n\n \n\n \n\n(105.9\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(105.9\n\n)\n\nForeign currency translation\n\n \n\n \n\n(0.3\n\n)\n\n \n\n \n\n(1.5\n\n)\n\n \n\n \n\n(1.8\n\n)\n\nGross balance\n\n \n\n \n\n105.9\n\n \n\n \n\n \n\n169.9\n\n \n\n \n\n \n\n275.8\n\n \n\nAccumulated impairment\n\n \n\n \n\n(105.9\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(105.9\n\n)\n\nBalance as of April 27, 2024\n\n \n\n \n\n—\n\n \n\n \n\n \n\n169.9\n\n \n\n \n\n \n\n169.9\n\n \n\nForeign currency translation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n2.8\n\n \n\n \n\n \n\n2.8\n\n \n\nGross balance\n\n \n\n \n\n105.9\n\n \n\n \n\n \n\n172.7\n\n \n\n \n\n \n\n278.6\n\n \n\nAccumulated impairment\n\n \n\n \n\n(105.9\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(105.9\n\n)\n\nBalance as of May 3, 2025\n\n \n\n \n\n—\n\n \n\n \n\n \n\n172.7\n\n \n\n \n\n \n\n172.7\n\n \n\nForeign currency translation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n2.2\n\n \n\n \n\n \n\n2.2\n\n \n\nGross balance\n\n \n\n \n\n105.9\n\n \n\n \n\n \n\n174.9\n\n \n\n \n\n \n\n280.8\n\n \n\nAccumulated impairment\n\n \n\n \n\n(105.9\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(105.9\n\n)\n\nBalance as of May 2, 2026\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n174.9\n\n \n\n \n\n$\n\n174.9\n\n \n\n \n\nA summary of goodwill by reporting unit is as follows:\n\n(in millions)\n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\nGrakon Industrial\n\n \n\n$\n\n125.1\n\n \n\n \n\n$\n\n124.7\n\n \n\nNordic Lights\n\n \n\n \n\n48.2\n\n \n\n \n\n \n\n46.4\n\n \n\nOther\n\n \n\n \n\n1.6\n\n \n\n \n\n \n\n1.6\n\n \n\nTotal\n\n \n\n$\n\n174.9\n\n \n\n \n\n$\n\n172.7\n\n \n\nFiscal 2026 Impairment Assessment\n\nAt the beginning of the fourth quarter of fiscal 2026, the annual goodwill impairment assessment was completed. Based upon the results of the analyses, the estimated fair value of all reporting units with goodwill exceeded their carrying values. Refer to Note 8, “Derivative Financial Instruments and Fair Value” for further discussion of the valuation methodologies and related inputs, which are Company-specific, as observable inputs are not available (level 3).\n\nFiscal 2025 Impairment Assessment\n\nAt the beginning of the fourth quarter of fiscal 2025, the annual goodwill impairment assessment was completed. Based upon the results of the quantitative impairment test, the Company determined that the fair value exceeded its carrying value for both Grakon Industrial and Nordic Lights. However, the fair value of the Nordic Lights reporting unit exceeded its carrying value by less than 10%. For the Nordic Lights reporting unit, if all other assumptions are held constant, a hypothetical increase of more than 100 basis points in the discount rate could have resulted in a partial goodwill impairment.\n\nFiscal 2024 Impairment Assessment\n\nOctober 28, 2023 interim goodwill impairment assessment\n\nDuring the three months ended October 28, 2023, the Company identified an impairment triggering event associated with a sustained decrease in the Company’s publicly quoted share price, market capitalization, and lower than expected operating results. These factors suggested that the fair value of one or more of the Company’s reporting units may have fallen below their carrying amounts, and accordingly the Company performed a quantitative assessment. The reporting units that were quantitatively assessed were North American Automotive (“NAA”) and European Automotive (“EA”).\n\nBased upon the results of the quantitative impairment test, the Company determined the carrying value of the NAA and EA reporting units each exceeded their fair value at October 28, 2023. As a result, the Company recognized a non-cash goodwill impairment charge of $56.5 million ($50.4 million for NAA and $6.1 million for EA) in the three months ended October 28, 2023, which was determined as the excess carrying value over fair value of the respective reporting unit up to the carrying value of the goodwill immediately prior to the impairment.\n\nF-18\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nApril 27, 2024 goodwill impairment assessment\n\nIn March and April 2024, subsequent to the annual goodwill impairment assessment, there was a further decline in the Company’s publicly quoted share price and market capitalization. In addition, operating results for NAA were lower than expected and future cash flow projections were lowered. As a result, the Company determined that a triggering event occurred requiring another quantitative impairment test for NAA as of April 27, 2024. Based upon the results of the quantitative impairment test, the Company determined the carrying value of the NAA reporting unit exceeded its fair value at April 27, 2024. As a result, the Company recognized a non-cash goodwill impairment charge of $49.4 million in the three months ended April 27, 2024, which was determined as the excess carrying value over fair value of the NAA reporting unit up to the carrying value of the goodwill immediately prior to the impairment. As of April 27, 2024, the NAA reporting unit had no remaining goodwill.\n\nOther intangible assets, net\n\nDetails of identifiable intangible assets are shown below:\n\n \n\n \n\nMay 2, 2026\n\n \n\n(in millions)\n\n \n\nGross\n\n \n\n \n\nAccumulated\namortization\n\n \n\n \n\nNet\n\n \n\n \n\nWeighted average remaining useful life (years)\n\n \n\nAmortized intangible assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCustomer relationships and agreements\n\n \n\n$\n\n315.6\n\n \n\n \n\n$\n\n(120.2\n\n)\n\n \n\n$\n\n195.4\n\n \n\n \n\n \n\n13.2\n\n \n\nTrade names, patents and technology licenses\n\n \n\n \n\n77.4\n\n \n\n \n\n \n\n(55.7\n\n)\n\n \n\n \n\n21.7\n\n \n\n \n\n \n\n5.9\n\n \n\nTotal amortized intangible assets\n\n \n\n \n\n393.0\n\n \n\n \n\n \n\n(175.9\n\n)\n\n \n\n \n\n217.1\n\n \n\n \n\n \n\n \n\nUnamortized trade name\n\n \n\n \n\n1.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1.8\n\n \n\n \n\n \n\n \n\nTotal other intangible assets\n\n \n\n$\n\n394.8\n\n \n\n \n\n$\n\n(175.9\n\n)\n\n \n\n$\n\n218.9\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMay 3, 2025\n\n \n\n(in millions)\n\n \n\nGross\n\n \n\n \n\nAccumulated\namortization\n\n \n\n \n\nNet\n\n \n\n \n\nWeighted average remaining useful life (years)\n\n \n\nAmortized intangible assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCustomer relationships and agreements\n\n \n\n$\n\n311.8\n\n \n\n \n\n$\n\n(102.3\n\n)\n\n \n\n$\n\n209.5\n\n \n\n \n\n \n\n14.0\n\n \n\nTrade names, patents and technology licenses\n\n \n\n \n\n76.5\n\n \n\n \n\n \n\n(49.4\n\n)\n\n \n\n \n\n27.1\n\n \n\n \n\n \n\n6.4\n\n \n\nTotal amortized intangible assets\n\n \n\n \n\n388.3\n\n \n\n \n\n \n\n(151.7\n\n)\n\n \n\n \n\n236.6\n\n \n\n \n\n \n\n \n\nUnamortized trade name\n\n \n\n \n\n1.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1.8\n\n \n\n \n\n \n\n \n\nTotal other intangible assets\n\n \n\n$\n\n390.1\n\n \n\n \n\n$\n\n(151.7\n\n)\n\n \n\n$\n\n238.4\n\n \n\n \n\n \n\n \n\n \n\nFor the annual impairment test performed in the fourth quarter of 2026, the estimated fair value of the indefinite-lived trade name intangible asset exceeded its carrying value.\n\nBased on the current amount of intangible assets subject to amortization, the estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter is as follows:\n\n \n\n(in millions)\n\n \n\n \n\n \n\nFiscal Year:\n\n \n\n \n\n \n\n2027\n\n \n\n$\n\n22.4\n\n \n\n2028\n\n \n\n \n\n20.2\n\n \n\n2029\n\n \n\n \n\n19.0\n\n \n\n2030\n\n \n\n \n\n17.9\n\n \n\n2031\n\n \n\n \n\n17.5\n\n \n\nThereafter\n\n \n\n \n\n120.1\n\n \n\nTotal\n\n \n\n$\n\n217.1\n\n \n\n \n\n \n\n \n\n \n\n \n\nF-19\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nNote 8. Derivative Financial Instruments and Fair Value\n\nThe Company is exposed to various market risks including, but not limited to, foreign currency exchange rates and market interest rates. The Company strives to control its exposure to these risks through our normal operating activities and, where appropriate, through the use of derivative financial instruments. Derivative financial instruments are measured at fair value on a recurring basis using various pricing models that incorporate observable market parameters, such as interest rate yield curves and foreign currency rates, and are classified as Level 2 within the fair value hierarchy.\n\nFor a designated cash flow hedge, the effective portion of the change in the fair value of the derivative financial instrument is recorded in AOCI(L) in the consolidated balance sheets. When the underlying hedged transaction is realized, the gain or loss previously included in AOCI(L) is recorded in earnings and reflected in the consolidated statements of operations on the same line as the gain or loss on the hedged item attributable to the hedged risk. The gain or loss associated with changes in the fair value of derivatives not designated as hedges are recorded immediately in the consolidated statements of operations on the same line as the associated risk. For a designated net investment hedge, the effective portion of the change in the fair value of the derivative financial instrument is recorded as a cumulative translation adjustment in AOCI(L) in the consolidated balance sheets.\n\nNet investment hedges\n\nThe Company is exposed to the risk that adverse changes in foreign currency exchange rates could affect its net investment in non-U.S. subsidiaries. To manage this risk, the Company designates certain qualifying derivative and non-derivative instruments, including cross-currency swaps and foreign currency-denominated debt, as net investment hedges of certain non-U.S. subsidiaries.\n\nThe Company had a fixed-rate, cross-currency swap, with a notional value of $60.0 million (€54.8 million), that settled in December 2024 with a gross gain of approximately $3.1 million. The cross-currency swap was designated as a hedge of the Company’s net investment in its euro-denominated subsidiaries. The gain will remain in AOCI(L) until the hedged net investment is sold or substantially liquidated.\n\nHedge effectiveness is assessed at the inception of the hedging relationship and quarterly thereafter, under the spot-to-spot method. The Company recognizes the changes in fair value of the derivative, which represents the interest rate differential of the cross-currency swap, through interest expense. In fiscal 2025 and fiscal 2024, the Company recorded gains of $0.7 million and $0.7 million, respectively, in interest expense, net in the consolidated statements of operations.\n\nDuring fiscal 2025, the Company had €275.0 million of long-term borrowings under its Amended Credit Agreement which was designated as a net investment hedge of the foreign currency exposure of its investment in its euro-denominated subsidiaries. On December 18, 2024, the Company de-designated the euro-denominated borrowings as a net investment hedge. As of the date of de-designation, the cumulative gain, net of tax, of $9.0 million remained recorded in accumulated other comprehensive loss (“AOCI(L)”) and will continue to be reclassified only upon a substantial liquidation of the Company’s investment in its euro-denominated subsidiaries. Due to changes in the value of the euro-denominated long-term borrowings designated as a net investment hedge, in fiscal 2025 (through the date of de-designation), a gain, net of tax, of $4.8 million was recognized within the currency translation component of other comprehensive loss.\n\nAs of August 2, 2025, the Company designated €55.0 million of long-term borrowings under its revolving credit facility (see Note 10, “Debt”) as a net investment hedge of the foreign currency exposure of its investment in its euro-denominated subsidiaries. Due to changes in the value of the euro-denominated borrowings while designated, the Company recognized gains, net of tax, of $0.8 million in fiscal 2026 within the currency translation component of other comprehensive loss.\n\nInterest rate swaps\n\nThe Company utilizes interest rate swaps to limit its exposure to market fluctuations on its variable-rate borrowings. The interest rate swaps effectively convert a portion of the Company’s variable rate borrowings to a fixed rate based upon a determined notional amount. The Company has an interest rate swap maturing on October 31, 2027, with a notional value of $154.9 million (€132.0 million) and had two interest rate swaps that matured on August 31, 2023, with a notional value of $100.0 million. The interest rate swaps are designated as cash flow hedges.\n\nHedge effectiveness is assessed at the inception of the hedging relationship and quarterly thereafter. The effective portion of the periodic changes in fair value is recognized in AOCI(L). Subsequently, the accumulated gains and losses recorded in AOCI(L) are reclassified to income in the period during which the hedged cash flow affects earnings, which are expected to be immaterial over the next 12 months. No ineffectiveness was recognized in fiscal 2026, fiscal 2025, or fiscal 2024.\n\nF-20\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nDerivatives not designated as hedges\n\nThe Company uses short-term foreign currency forward contracts to reduce the volatility on earnings 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 expense (income), net, along with the foreign currency gains and losses on monetary assets and liabilities in the consolidated statements of operations.\n\nAs of May 2, 2026 and May 3, 2025, the Company held foreign currency forward contracts with a notional value of $126.3 million and $107.2 million, respectively. In fiscal 2026, fiscal 2025, and fiscal 2024, the Company recognized a gain of $2.7 million, a gain of $1.7 million, and a loss of $4.1 million, respectively, related to foreign currency forward contracts included in other expense (income), net on the consolidated statements of operations.\n\nEffect of derivative instruments on comprehensive income (loss)\n\nThe pre-tax effects of derivative financial instruments recorded in other comprehensive income (loss) were as follows:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n(in millions)\n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nCross-currency swap\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1.8\n\n \n\n \n\n$\n\n2.4\n\n \n\nInterest rate swaps\n\n \n\n \n\n4.0\n\n \n\n \n\n \n\n(3.6\n\n)\n\n \n\n \n\n(3.7\n\n)\n\nTotal\n\n \n\n$\n\n4.0\n\n \n\n \n\n$\n\n(1.8\n\n)\n\n \n\n$\n\n(1.3\n\n)\n\nAssets and Liabilities Measured at Fair Value on a Recurring Basis\n\nAsset and Liability Instruments\n\nThe carrying value of cash and cash equivalents, short and long-term receivables, accounts payable, and short-term and long-term debt approximates fair value.\n\nFair value of derivative instruments on the balance sheet\n\nThe fair value of derivative instruments are classified as Level 2 within the fair value hierarchy and are recorded in the consolidated balance sheets as follows:\n\n \n\n \n\n \n\n \n\nAsset/(Liability)\n\n \n\n(in millions)\n\n \n\nFinancial Statement Caption\n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\nDerivatives designated as hedging instruments:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest rate swaps\n\n \n\nOther long-term liabilities\n\n \n\n$\n\n(1.8\n\n)\n\n \n\n$\n\n(5.7\n\n)\n\nDerivatives not designated as hedging instruments:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForeign currency forward contracts\n\n \n\nPrepaid expenses and other current assets\n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n0.7\n\n \n\nAssets and Liabilities Measured at Fair Value on a Nonrecurring Basis\n\nAssets may be measured at fair value on a nonrecurring basis. These assets include long-lived assets and intangible assets, which may be written down to fair value as a result of impairment.\n\nGoodwill and Indefinite-Lived Intangible Assets\n\nThe basis of the goodwill impairment analysis is the Company’s current forecast, and its annual budget and long-range plan. This includes a projection of future cash flows, which requires the Company to make significant assumptions and estimates about the extent and timing of future cash flows and revenue growth rates. These represent Company-specific inputs and assumptions about the use of the assets, as observable inputs are not available (level 3). These estimates and assumptions are subject to a high degree of uncertainty. Due to the many variables inherent in estimating fair value and the relative size of the goodwill balance, differences in assumptions could have a material effect on the results of the analysis.\n\nIn the goodwill impairment analysis, for reporting units with goodwill tested using a quantitative approach, fair values are estimated using a combination of the income approach and market approach. The Company applies a 50% weighting to the income approach and a 50% weighting to the market approach. The most significant inputs in estimating the fair value of the Company’s reporting units under the income approach are (i) projected earnings before interest, taxes, depreciation and amortization margin, (ii) the revenue growth rate, and (iii) the discount rate, which is risk-adjusted based on the aforementioned inputs. See Note 7, “Goodwill and Other Intangible Assets”, for additional information on the goodwill and indefinite-lived intangible asset impairments.\n\n \n\nF-21\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nNote 9. Retirement Benefits\n\nDefined contribution plans\n\nThe Company has a defined contribution plan covering substantially all U.S. employees to which it makes contributions equal to 3% of eligible compensation. In addition, certain of the Company’s foreign subsidiaries also have defined contribution savings plans. Company contributions to these plans were $1.4 million, $1.5 million and $1.5 million in fiscal 2026, fiscal 2025 and fiscal 2024, respectively.\n\nNon-qualified deferred compensation plan\n\nThe Company previously maintained a non-qualified deferred compensation plan (“NQDC Plan”) for certain eligible employees and members of the Board of Directors. Under the NQDC Plan, employees could have elected to defer up to 75% of their annual base salary and 100% of their annual cash incentive compensation, with an aggregate minimum deferral of $3,000. Directors could have deferred all or a portion of their annual directors’ fees or annual stock awards. The minimum period of deferral was three years. Participants were immediately 100% vested. The Company did not make any contributions to the NQDC Plan. During the third quarter of fiscal year 2026, the Company terminated its deferred compensation plan and it is expected to be fully liquidated by January 2027.\n\nThe deferred compensation liability for the NDQC Plan was $8.8 million and $9.7 million as of May 2, 2026 and May 3, 2025, respectively. The Company has purchased life insurance policies on certain employees, which are held in a Rabbi trust, to offset these unsecured obligations. These life insurance policies are recorded at their cash surrender value of $7.4 million and $9.3 million as of May 2, 2026 and May 3, 2025, respectively. As of May 2, 2026 and May 3, 2025, the amounts are included in other current assets and long-term assets in the consolidated balance sheets, respectively. The cash surrender value of the life insurance policies approximates fair value and is classified within Level 2 of the fair value hierarchy.\n\nThe Company also owned and was the beneficiary of a number of life insurance policies on the lives of former key executives that were unrestricted as to use. These life insurance policies, which were recorded at their cash surrender value, were redeemed for $10.8 million in fiscal 2024.\n\n \n\nNote 10. Debt\n\nA summary of debt is shown below:\n\n(in millions)\n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\nRevolving credit facility\n\n \n\n$\n\n326.4\n\n \n\n \n\n$\n\n319.4\n\n \n\nOther debt\n\n \n\n \n\n1.1\n\n \n\n \n\n \n\n1.3\n\n \n\nUnamortized debt issuance costs\n\n \n\n \n\n(2.5\n\n)\n\n \n\n \n\n(3.1\n\n)\n\nTotal debt\n\n \n\n \n\n325.0\n\n \n\n \n\n \n\n317.6\n\n \n\nLess: current maturities\n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n(0.2\n\n)\n\nTotal long-term debt\n\n \n\n$\n\n324.8\n\n \n\n \n\n$\n\n317.4\n\n \n\nRevolving credit facility\n\nOn October 31, 2022, the Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”) among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the Lenders and other parties named therein. On March 6, 2024, the Company entered into a First Amendment to Second Amended and Restated Credit Agreement (the “First Amendment”) and on July 9, 2024, the Company entered into a Second Amendment to Second Amended and Restated Credit Agreement and First Amendment to Second Amended and Restated Guaranty (the “Second Amendment”) among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, the other Lenders party thereto and other parties thereto.\n\nAmong other things, the Second Amendment (i) reduced the revolving credit commitments from $750 million to $500 million (which commitments were subsequently further reduced, as discussed below), (ii) granted a security interest in substantially all of the personal property of the Company and its U.S. subsidiaries that are guarantors, including 100% of the equity interests of their respective U.S. subsidiaries and 65% of the equity interests of their respective foreign subsidiaries (or such greater amount to the extent such pledge could not reasonably cause adverse tax consequences), (iii) amended the consolidated interest coverage ratio covenant for each quarter in fiscal 2025 to relax that covenant to some extent for each of those quarters, (iv) amended the consolidated leverage ratio covenant for the quarter ending July 27, 2024 and each subsequent fiscal quarter to relax that covenant to some extent for each of those quarters, (v) amended certain interest rate provisions, (vi) added a requirement to provide monthly financial\n\nF-22\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nstatements to the lenders through the period ending August 2, 2025, (vii) decreased the general basket exceptions to certain covenants restricting certain investments by, liens on and indebtedness of the Company and its subsidiaries for specified periods of time, (viii) increased, for fiscal 2025, the general basket exception to a covenant restricting certain dispositions of property by the Company and its subsidiaries, (ix) added an “anti-cash hoarding” requirement, applicable during the period from the effective date of the Second Amendment until the earlier to occur of (a) the delivery of financial statements and a compliance certificate for the fiscal quarter ending August 2, 2025 and (b) the delivery of compliance certificates for two consecutive fiscal quarters demonstrating that the Company’s consolidated leverage ratio as of the last day of such fiscal quarters was less than 3.00:1.00, that if the Company has cash on hand in the U.S. (subject to certain exceptions) of more than $65 million for 10 consecutive business days, the Company shall prepay the indebtedness under the credit facility by the amount of such excess and (x) made certain other changes to the investment, restricted payment and indebtedness baskets.\n\nAs of May 3, 2025, the Company was not in compliance with the consolidated leverage ratio and interest coverage ratio covenants contained in the Credit Agreement (as amended by the First Amendment and the Second Amendment) for the quarter ended May 3, 2025. On July 7, 2025, the Company entered into a Third Amendment to Second Amended and Restated Credit Agreement (the “Third Amendment”) among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, the other Lenders party thereto and other parties thereto. Among other things, the Third Amendment (i) reduced the revolving credit commitments from $500 million to $400 million, (ii) eliminated the Company’s option to increase the revolving credit commitments and/or add one or more tranches of term loans under the credit facility from time to time subject to certain limitations and conditions including approval of certain lenders, (iii) amended the consolidated interest coverage ratio covenant for the quarters ending August 2, 2025, November 1, 2025, January 31, 2026 and May 2, 2026 to relax that covenant to some extent for each of those quarters, (iv) amended the consolidated leverage ratio covenant for the quarters ending August 2, 2025, November 1, 2025, January 31, 2026, May 2, 2026 and August 1, 2026 to relax that covenant to some extent for each of those quarters, (v) amended the definition of “Consolidated EBITDA,” to include an add back for a portion of the inventory write-down taken in the fourth quarter of fiscal 2025, (vi) increased the interest rate during the period from July 7, 2025 to the date that financial statements and a compliance certificate are delivered for the fiscal quarter ending October 31, 2026 (such period, the “Third Amendment Period”), (vii) changed the commitment fee payment during the Third Amendment Period, (viii) extended, through the maturity date, the requirement to provide monthly financial statements to the lenders, (ix) restricted or decreased, during the Third Amendment Period, the amount of certain exceptions to covenants restricting liens on, investments by and indebtedness of the Company and its subsidiaries, (x) limited to $2.5 million, in any fiscal quarter during the Third Amendment Period, the general basket exception to a covenant restricting certain restricted payments (including dividends) by the Company and its subsidiaries, while allowing under that general basket exceptions up to an aggregate of $25 million of restricted payments during any other period, (xi) extended, through the maturity date, the “anti-cash hoarding” requirement (described above), (xii) eliminated, during the Third Amendment Period, the investment, restricted payment and indebtedness baskets that had allowed for unlimited investments, restricted payments and indebtedness, as applicable, so long as (among other requirements) the Company met certain pro forma consolidated leverage ratio tests and (xiii) waived any default or event of default that may have occurred due to non-compliance with the consolidated interest coverage ratio covenant and the consolidated leverage ratio covenant for the quarter ended May 3, 2025 as calculated using the definition of “Consolidated EBITDA” that was in effect before giving effect to the Third Amendment. Following the effectiveness of the Third Amendment, the Company was in compliance with its consolidated interest coverage ratio covenant and its consolidated leverage ratio covenant for the quarter ended May 3, 2025.\n\nAs of August 2, 2025, the Company was not in compliance with a covenant restricting certain restricted payments (including dividends) by us and our subsidiaries contained in the Credit Agreement (as amended by the First Amendment, the Second Amendment and the Third Amendment) for the quarter ended August 2, 2025. On September 8, 2025, the Company entered into a Waiver Letter (the “Waiver Letter”) with Bank of America, N.A., as Administrative Agent, and the other Lenders party thereto. Among other things, the Waiver Letter (i) acknowledged that an event of default under the Credit Agreement (as amended by the First Amendment, the Second Amendment and the Third Amendment) occurred as the result of us making approximately $2.8 million of restricted payments during the quarter ended August 2, 2025, which was in excess of the $2.5 million general basket exception to a covenant restricting certain restricted payments (including dividends) by us and our subsidiaries during the quarter ended August 2, 2025, (ii) reduced, for the quarter ending November 1, 2025, the general basket exception to a covenant restricting certain restricted payments (including dividends) by us and our subsidiaries by the amount of excess restricted payments made during the quarter ended August 2, 2025 (which change reduced such basket exception from $2.5 million to approximately $2.2 million for the quarter ending November 1, 2025), and (iii) waived the acknowledged event of default.\n\nThe Credit Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment and the Waiver Letter, is referred to herein as the “Amended Credit Agreement.”\n\nThe Amended Credit Agreement provides for a secured multicurrency revolving credit facility of $400 million. The Amended Credit Agreement matures on October 31, 2027.\n\nF-23\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nLoans denominated in U.S. dollars under the Amended Credit Agreement bear interest at either (a) an adjusted base rate or (b) an adjusted term Secured Overnight Financing Rate (“SOFR”) rate or term SOFR daily floating rate (in each case, as determined in accordance with the provisions of the Amended Credit Agreement) in each case plus an additional applicable rate (the “Applicable Rate”) ranging (subject to the last sentence of this paragraph) between 0.375% and 2.00%, in the case of adjusted base rate loans, and between 1.375% and 3.00%, in the case of adjusted term SOFR rate loans and term SOFR daily floating rate loans. Loans denominated (a) in euros will bear interest at the Euro Interbank Offered Rate, (b) in pounds sterling will bear interest at the Sterling Overnight Index Average Reference Rate, (c) in Singapore dollars will bear interest at the Singapore Interbank Offered Rate, (d) in Canadian dollars will bear interest at the forward-looking term rate based on the Canadian Overnight Repo Rate Average and (e) in Hong Kong dollars will bear interest at the Hong Kong Interbank Offered Rate (in each case, as determined in accordance with the provisions of the Amended Credit Agreement), in each case plus an Applicable Rate ranging (subject to the last sentence of this paragraph) between 1.375% and 3.00%. The Applicable Rate is set based on the Company’s consolidated leverage ratio, except that during the Third Amendment Period, the Applicable Rate shall be (x) 3.50% in the case of adjusted term SOFR rate loans, term SOFR daily floating rate loans and any loans denominated in a foreign currency and (y) 2.50% in the case of adjusted base rate loans, in each case regardless of the Company’s consolidated leverage ratio.\n\nAs of May 2, 2026, the outstanding balance under the revolving credit facility was $326.4 million, which included $299.4 million (€255.3 million) of euro-denominated borrowings and $27.0 million of U.S. dollar denominated borrowings.\n\nThe Second Amendment was accounted for as a debt modification, which resulted in a non-cash loss of $1.2 million in fiscal 2025 related to the partial write-off of unamortized debt issuance costs as a result of the reduction in the credit facility size. The non-cash loss was recognized in other expense (income), net in the Company’s consolidated statement of operations. Additionally, the Company incurred debt issuance costs of approximately $1.8 million associated with the Second Amendment which were capitalized and, along with the current unamortized debt issuance costs, are being amortized to interest expense on a straight-line basis over remaining term of the Amended Credit Agreement.\n\nThe Third Amendment was accounted for as a debt modification, which resulted in a non-cash loss of $0.6 million in fiscal 2026 related to the partial write-off of unamortized debt issuance costs as a result of the reduction in the credit facility size. The non-cash loss was recognized in other expense (income), net in the Company’s condensed consolidated statement of operations. Additionally, the Company incurred debt issuance costs of $1.6 million associated with the Third Amendment which were capitalized and, along with the current unamortized debt issuance costs, are being amortized to interest expense on a straight-line basis over remaining term of the Amended Credit Agreement.\n\nThe weighted-average interest rate on outstanding U.S. dollar and euro-denominated borrowings under the revolving credit facility was approximately 7.2% and 5.5%, respectively, as of May 2, 2026.\n\nThe Amended Credit Agreement contains various representations and warranties, financial covenants (including covenants requiring the Company to maintain compliance with a minimum consolidated interest coverage ratio and a maximum consolidated leverage ratio, in each case as of the end of each fiscal quarter), restrictive and other covenants, and events of default. The covenants in the Amended Credit Agreement include an “anti-cash hoarding” requirement, as discussed above.\n\nAs of May 2, 2026, the Company was in compliance with all the covenants in the Amended Credit Agreement. The fair value of borrowings under the Amended Credit Agreement approximates book value because the interest rate is variable.\n\nSubsequent to May 2, 2026, the Company elected to make a non-mandatory prepayment $20.0 million on outstanding borrowings under the Amended Credit Agreement using cash on hand. Following the prepayment, outstanding borrowings under the revolving credit facility were approximately $306.4 million.\n\nOther debt\n\nOne of the Company’s European subsidiaries has debt that consists of one note with a maturity in 2031. The weighted-average interest rate was approximately 1.8% as of May 2, 2026 and $0.2 million of the debt was classified as short-term. The fair value of other debt was $1.1 million at May 2, 2026 and was based on Level 2 inputs on a non-recurring basis.\n\nScheduled maturities\n\nAs of May 2, 2026, scheduled principal payments of debt are as follows:\n\nF-24\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n(in millions)\n\n \n\n \n\n \n\nFiscal Year:\n\n \n\n \n\n \n\n2027\n\n \n\n$\n\n0.2\n\n \n\n2028\n\n \n\n \n\n324.0\n\n \n\n2029\n\n \n\n \n\n0.2\n\n \n\n2030\n\n \n\n \n\n0.3\n\n \n\n2031\n\n \n\n \n\n0.3\n\n \n\nThereafter\n\n \n\n \n\n—\n\n \n\nTotal\n\n \n\n$\n\n325.0\n\n \n\n \n\nNote 11. Income Taxes\n\nIncome tax provision\n\nThe U.S. and foreign components of pre-tax income (loss) and income tax expense (benefit) are as follows:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n(in millions)\n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nPre-tax income (loss):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nU.S.\n\n \n\n$\n\n(90.7\n\n)\n\n \n\n$\n\n(118.3\n\n)\n\n \n\n$\n\n(199.4\n\n)\n\nForeign\n\n \n\n \n\n80.0\n\n \n\n \n\n \n\n68.2\n\n \n\n \n\n \n\n71.3\n\n \n\nTotal pre-tax income (loss)\n\n \n\n$\n\n(10.7\n\n)\n\n \n\n$\n\n(50.1\n\n)\n\n \n\n$\n\n(128.1\n\n)\n\nIncome tax expense (benefit):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nU.S. (federal and state)\n\n \n\n$\n\n1.8\n\n \n\n \n\n$\n\n(4.0\n\n)\n\n \n\n$\n\n0.1\n\n \n\nForeign\n\n \n\n \n\n21.9\n\n \n\n \n\n \n\n22.0\n\n \n\n \n\n \n\n16.6\n\n \n\nTotal current expense\n\n \n\n \n\n23.7\n\n \n\n \n\n \n\n18.0\n\n \n\n \n\n \n\n16.7\n\n \n\nDeferred:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nU.S. (federal and state)\n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n(0.9\n\n)\n\n \n\n \n\n(17.9\n\n)\n\nForeign\n\n \n\n \n\n1.0\n\n \n\n \n\n \n\n(4.6\n\n)\n\n \n\n \n\n(3.6\n\n)\n\nTotal deferred benefit\n\n \n\n \n\n1.3\n\n \n\n \n\n \n\n(5.5\n\n)\n\n \n\n \n\n(21.5\n\n)\n\nTotal income tax expense (benefit)\n\n \n\n$\n\n25.0\n\n \n\n \n\n$\n\n12.5\n\n \n\n \n\n$\n\n(4.8\n\n)\n\n \n\nF-25\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nEffective May 4, 2025, the Company adopted ASU 2023-09, \"Improvements to Income Tax Disclosures,\" on a prospective basis. In accordance with the categories required by the update, the reconciliation between the provision for income taxes calculated at the U.S. federal statutory income tax rate of 21% and the consolidated provision for income taxes is shown below:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n(in millions)\n\n \n\nAmount\n\n \n\n \n\nPercent\n\n \n\nBenefit for income taxes at U.S. federal statutory income tax rate\n\n \n\n$\n\n(2.3\n\n)\n\n \n\n \n\n21.0\n\n%\n\nDomestic federal tax effects\n\n \n\n \n\n \n\n \n\n \n\n \n\nEffect of cross-border tax laws\n\n \n\n \n\n \n\n \n\n \n\nGlobal intangible low-taxed income, net of foreign tax credit\n\n \n\n \n\n17.7\n\n \n\n \n\n \n\n(164.9\n\n)\n\nOther effect of cross-border tax laws\n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n(12.9\n\n)\n\nNontaxable or nondeductible items\n\n \n\n \n\n \n\n \n\n \n\nCompensation and benefits\n\n \n\n \n\n1.5\n\n \n\n \n\n \n\n(13.7\n\n)\n\nChanges in valuation allowances\n\n \n\n \n\n(1.4\n\n)\n\n \n\n \n\n13.9\n\n \n\nDomestic state and local income taxes, net of federal tax effect1\n\n \n\n \n\n1.2\n\n \n\n \n\n \n\n(11.3\n\n)\n\nForeign tax effects\n\n \n\n \n\n \n\n \n\n \n\nBelgium\n\n \n\n \n\n \n\n \n\n \n\nAlternative minimum tax\n\n \n\n \n\n1.2\n\n \n\n \n\n \n\n(11.5\n\n)\n\nOther\n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n(1.9\n\n)\n\nChina\n\n \n\n \n\n \n\n \n\n \n\nWithholding taxes\n\n \n\n \n\n1.2\n\n \n\n \n\n \n\n(11.5\n\n)\n\nUnremitted earnings of foreign subsidiaries\n\n \n\n \n\n2.9\n\n \n\n \n\n \n\n(27.5\n\n)\n\nOther\n\n \n\n \n\n1.2\n\n \n\n \n\n \n\n(10.6\n\n)\n\nEgypt\n\n \n\n \n\n \n\n \n\n \n\nForeign tax rate differential\n\n \n\n \n\n(5.5\n\n)\n\n \n\n \n\n51.2\n\n \n\nFinland\n\n \n\n \n\n \n\n \n\n \n\nAlternative minimum tax\n\n \n\n \n\n1.5\n\n \n\n \n\n \n\n(14.4\n\n)\n\nOther\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n1.2\n\n \n\nMalta\n\n \n\n \n\n \n\n \n\n \n\nForeign tax rate differential\n\n \n\n \n\n(3.2\n\n)\n\n \n\n \n\n29.8\n\n \n\nNondeductible interest\n\n \n\n \n\n4.7\n\n \n\n \n\n \n\n(44.1\n\n)\n\nOther credits\n\n \n\n \n\n(1.5\n\n)\n\n \n\n \n\n13.8\n\n \n\nMexico\n\n \n\n \n\n2.1\n\n \n\n \n\n \n\n(19.7\n\n)\n\nOther jurisdictions\n\n \n\n \n\n2.2\n\n \n\n \n\n \n\n(19.6\n\n)\n\nConsolidated provision for income taxes\n\n \n\n$\n\n25.0\n\n \n\n \n\n(232.7)%\n\n \n\n (1) Illinois, Michigan, and Oklahoma contribute to the majority of this tax effect.\n\n \n\n \n\n \n\n \n\n \n\n \n\nThe effective tax rate for fiscal 2026 differs from the U.S. federal statutory tax rate of 21% primarily due to an unfavorable effect of U.S. tax on foreign income of $17.7 million, primarily from GILTI taxes.\n\nF-26\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nA reconciliation of income tax expense (benefit) to the U.S. statutory federal income tax rate of 21% is as follows:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n(in millions)\n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nIncome tax at statutory rate\n\n \n\n$\n\n(10.5\n\n)\n\n \n\n$\n\n(26.9\n\n)\n\nEffect of:\n\n \n\n \n\n \n\n \n\n \n\n \n\nState income taxes, net of federal benefit\n\n \n\n \n\n(2.0\n\n)\n\n \n\n \n\n(1.0\n\n)\n\nGoodwill impairment\n\n \n\n \n\n—\n\n \n\n \n\n \n\n22.7\n\n \n\nInterest\n\n \n\n \n\n2.3\n\n \n\n \n\n \n\n—\n\n \n\nWithholding taxes\n\n \n\n \n\n2.0\n\n \n\n \n\n \n\n3.2\n\n \n\nNon-deductible compensation\n\n \n\n \n\n3.7\n\n \n\n \n\n \n\n0.3\n\n \n\nForeign tax differential\n\n \n\n \n\n(2.6\n\n)\n\n \n\n \n\n(5.1\n\n)\n\nU.S. tax on foreign income\n\n \n\n \n\n11.5\n\n \n\n \n\n \n\n3.5\n\n \n\nForeign investment tax credit\n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.1\n\n \n\nResearch and development\n\n \n\n \n\n(1.4\n\n)\n\n \n\n \n\n(1.5\n\n)\n\nChange in tax reserve\n\n \n\n \n\n(4.0\n\n)\n\n \n\n \n\n—\n\n \n\nChange in valuation allowance\n\n \n\n \n\n13.5\n\n \n\n \n\n \n\n(1.0\n\n)\n\nOther, net\n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.9\n\n \n\nIncome tax expense (benefit)\n\n \n\n$\n\n12.5\n\n \n\n \n\n$\n\n(4.8\n\n)\n\nEffective income tax rate\n\n \n\n \n\n(25.0\n\n)%\n\n \n\n \n\n3.7\n\n%\n\n \n\nThe effective tax rate for fiscal 2025 differs from the U.S. federal statutory tax rate of 21% primarily due to an increase in a valuation allowance for deferred tax assets of $13.5 million and an unfavorable effect of U.S. tax on foreign income of $11.5 million, primarily from GILTI taxes, partially offset by a favorable decrease in tax reserves of $4.0 million.\n\nIn fiscal 2024, the effective income tax rate was favorably affected by pre-tax losses in operations, the amount of income earned in foreign jurisdictions with lower tax rates of $5.1 million and research and development expenditures of $1.5 million. These are offset by non-deductible goodwill impairment of $22.7 million, withholding taxes of $3.2 million, and U.S. tax on foreign income of $3.5 million of which GILTI taxes is the main component.\n\nF-27\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nDeferred income taxes and valuation allowances\n\nSignificant components of the Company’s deferred income tax assets and liabilities were as follows:\n\n(in millions)\n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\nDeferred tax liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAmortization\n\n \n\n$\n\n(49.1\n\n)\n\n \n\n$\n\n(51.9\n\n)\n\nForeign tax\n\n \n\n \n\n(5.8\n\n)\n\n \n\n \n\n(2.9\n\n)\n\nLease assets\n\n \n\n \n\n(5.1\n\n)\n\n \n\n \n\n(5.7\n\n)\n\nUnrealized foreign exchange gain/loss\n\n \n\n \n\n(3.4\n\n)\n\n \n\n \n\n(1.9\n\n)\n\nDeferred tax liabilities, gross\n\n \n\n \n\n(63.4\n\n)\n\n \n\n \n\n(62.4\n\n)\n\nDeferred tax assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\nDeferred compensation and stock award amortization\n\n \n\n \n\n7.3\n\n \n\n \n\n \n\n6.9\n\n \n\nFixed assets\n\n \n\n \n\n2.1\n\n \n\n \n\n \n\n1.6\n\n \n\nInventory\n\n \n\n \n\n6.6\n\n \n\n \n\n \n\n8.6\n\n \n\nLease liabilities\n\n \n\n \n\n5.9\n\n \n\n \n\n \n\n6.4\n\n \n\nDerivative financial instruments\n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.9\n\n \n\nForeign investment tax credit\n\n \n\n \n\n27.8\n\n \n\n \n\n \n\n25.6\n\n \n\nResearch expenditures\n\n \n\n \n\n8.9\n\n \n\n \n\n \n\n8.3\n\n \n\nNet operating loss carryforwards\n\n \n\n \n\n15.9\n\n \n\n \n\n \n\n14.8\n\n \n\nForeign tax credits\n\n \n\n \n\n3.1\n\n \n\n \n\n \n\n3.4\n\n \n\nInterest carryforwards\n\n \n\n \n\n11.8\n\n \n\n \n\n \n\n12.3\n\n \n\nOther\n\n \n\n \n\n4.9\n\n \n\n \n\n \n\n5.3\n\n \n\nDeferred tax assets, gross\n\n \n\n \n\n94.3\n\n \n\n \n\n \n\n94.1\n\n \n\nLess valuation allowance\n\n \n\n \n\n(21.1\n\n)\n\n \n\n \n\n(20.7\n\n)\n\nDeferred tax assets, net of valuation allowance\n\n \n\n \n\n73.2\n\n \n\n \n\n \n\n73.4\n\n \n\nNet deferred tax asset\n\n \n\n$\n\n9.8\n\n \n\n \n\n$\n\n11.0\n\n \n\nBalance sheet classification:\n\n \n\n \n\n \n\n \n\n \n\n \n\nLong-term asset\n\n \n\n$\n\n39.5\n\n \n\n \n\n$\n\n37.8\n\n \n\nLong-term liability\n\n \n\n \n\n(29.7\n\n)\n\n \n\n \n\n(26.8\n\n)\n\nNet deferred tax asset\n\n \n\n$\n\n9.8\n\n \n\n \n\n$\n\n11.0\n\n \n\n \n\nThe Company recorded a net deferred tax asset for U.S. and foreign income taxes of $9.8 million and $11.0 million as of May 2, 2026 and May 3, 2025, respectively. In assessing the realizability of the deferred tax assets, the Company considers whether it is more likely than not that some portion or the entire deferred tax asset will be realized. Ultimately, the realization of the deferred tax asset is dependent upon the generation of sufficient earnings in future periods in which these temporary items can be utilized. In that regard, the Company recorded a valuation allowance of $21.1 million related to federal, state, and foreign net operating loss carryovers and other credits as it determined that these deferred tax assets are not more likely than not to be realized.\n\nAs of May 2, 2026, the Company had available $30.6 million of federal, $114.4 million of state, and $0.6 million of foreign gross operating loss carryforwards with a valuation allowance of $25.9 million for federal, $111.9 million for state, and $0.2 million for foreign. The U.S. federal net operating loss carryforwards will substantially start to expire in 2028 and beyond. The state net operating loss carryforwards will substantially start to expire in 2036 and beyond. Total unused credits are $30.9 million as of May 2, 2026, the majority of which can be carried forward indefinitely.\n\nIndefinite reinvestment\n\nThe Company has not provided for deferred income taxes on the undistributed earnings of foreign subsidiaries except for certain identified amounts. The amount the Company expects to repatriate is based on a variety of factors including current year earnings of the foreign subsidiaries, foreign investment needs, and U.S. cash flow considerations. The Company considers the remaining undistributed foreign earnings that are not specifically identified of approximately $340.4 million to be indefinitely reinvested. It is not practicable to determine the amount of deferred tax liability on such foreign earnings as the actual tax liability is dependent on circumstances that exist when the remittance occurs.\n\nF-28\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nUnrecognized tax benefits\n\nThe Company operates in multiple jurisdictions throughout the world and the income tax returns of its subsidiaries in various jurisdictions are subject to periodic examination by the tax authorities. The Company regularly assesses the status of these examinations and the various outcomes to determine the adequacy of its provision for income taxes. The amount of gross unrecognized tax benefits totaled $0.8 million and $0.8 million as of May 2, 2026 and May 3, 2025, respectively. The amount for May 2, 2026, of unrecognized benefits that, if recognized, would favorably affect the effective tax rate if resolved in the Company’s favor is $0.6 million. The Company recognizes interest and penalties related to income tax uncertainties in income tax expense. Accrued interest and penalties were $0.1 million and $0.1 million at May 2, 2026 and May 3, 2025, respectively.\n\nThe following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:\n\n(in millions)\n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\nBalance at beginning of period\n\n \n\n$\n\n0.8\n\n \n\n \n\n$\n\n4.4\n\n \n\nIncreases for positions related to the current year\n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n0.3\n\n \n\nLapsing of statutes of limitations\n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n(3.9\n\n)\n\nBalance at end of period\n\n \n\n$\n\n0.8\n\n \n\n \n\n$\n\n0.8\n\n \n\n \n\nAt May 2, 2026, the expected change to the total amount of unrecognized tax benefits in the next twelve months is approximately $0.2 million due to potential expiration of statute of limitations.\n\nThe U.S. federal statute of limitations remains open for fiscal years ended on or after 2023 and for state tax purposes on or after fiscal year 2022. Tax authorities may have the ability to review and adjust net operating losses or tax credits that were generated prior to these fiscal years. In the major foreign jurisdictions, fiscal 2022 and subsequent periods remain open and subject to examination by taxing authorities.\n\nA summary of income taxes paid, net of refunds, is shown below:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n(in millions)\n\n \n\n(52 Weeks)\n\n \n\nFederal\n\n \n\n$\n\n9.3\n\n \n\nState and Local\n\n \n\n0.1\n\n \n\nForeign:\n\n \n\n \n\n \n\nBelgium\n\n \n\n \n\n1.9\n\n \n\nChina\n\n \n\n \n\n7.5\n\n \n\nFinland\n\n \n\n \n\n2.2\n\n \n\nMalta\n\n \n\n \n\n(1.4\n\n)\n\nMexico\n\n \n\n \n\n2.0\n\n \n\nUnited Kingdom\n\n \n\n \n\n1.3\n\n \n\nAll other foreign\n\n \n\n \n\n1.7\n\n \n\nIncome taxes paid, net of refunds\n\n \n\n$\n\n24.6\n\n \n\n \n\nNote 12. Commitments and Contingencies\n\n## Environmental matters\n\nThe Company is not aware of any potential unasserted environmental claims that may be brought against us. The Company is involved in environmental investigations and/or remediation at two of its United States plant sites no longer used for operations and one currently operating site in Mexico. The Company uses environmental consultants to assist us in evaluating its environmental liabilities in order to establish appropriate accruals in its consolidated financial statements. Accruals are recorded when environmental remediation is probable and the costs can be reasonably estimated. A number of factors affect the cost of environmental remediation, including the determination of the extent of contamination, the length of time remediation may require, the complexity of environmental regulations, and the advancement of remediation technology. Considering these factors, the Company has estimated (without discounting) the costs of remediation. Recovery from insurance or other third parties is not anticipated. The Company is not yet able to determine when such remediation activity will be complete, but estimates for certain remediation efforts are projected through fiscal 2026.\n\n \n\nF-29\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nAs of May 2, 2026 and May 3, 2025, the Company had accruals, primarily based upon independent estimates, for environmental matters of $0.8 million and $1.0 million, respectively. The accrual as of May 2, 2026 consists of $0.5 million classified in other accrued expenses and the remainder was included in other long-term liabilities on the consolidated balance sheet. The accrual as of May 3, 2025 consists of $0.7 million classified in other accrued expenses and the remainder was included in other long-term liabilities on the consolidated balance sheets. The Company believes the provisions made for environmental matters are adequate to satisfy liabilities relating to such matters, however it is reasonably possible that costs could exceed accrued amounts if the selected methods of remediation do not reduce the contaminates at the sites to levels acceptable to federal and state regulatory agencies.\n\nIn fiscal 2026, fiscal 2025 and fiscal 2024, the Company spent $0.2 million, $0.6 million and $0.9 million, respectively, on remediation cleanups and related studies. The costs associated with environmental matters as they relate to day-to-day activities were not material in fiscal 2026, fiscal 2025 or fiscal 2024.\n\n## Litigation\n\nThe Company, from time to time, is subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, patent infringement claims, employment-related matters, and environmental matters. The Company considers insurance coverage and third-party indemnification when determining required accruals for pending litigation and claims. Although the outcome of potential legal actions and claims cannot be determined, it is the opinion of the Company’s management, based on the information available, that the Company has adequate reserves for these liabilities and that the ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial statements.\n\nStockholder Litigation\n\nOn August 26, 2024, a putative class action lawsuit on behalf of purchasers of Company common stock between June 23, 2022 and March 6, 2024, inclusive, entitled Marie Salem v. Methode Electronics, Inc. et al. was filed in the U.S. District Court for the Northern District of Illinois against the Company, a former Chief Executive Officer, President and director of the Company and a former Chief Financial Officer of the Company. The complaint alleges, among other things, that the defendants made false and/or misleading statements relating to the Company’s business, operations and prospects, including in respect of the Company’s transition to production of more specialized components for manufacturers of electric vehicles and the Company’s operations at its facility in Monterrey, Mexico, in violation of Sections 10(b) and 20 of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint seeks, among other things, unspecified money damages along with equitable relief and costs and expenses, including counsel fees and expert fees. Another purported stockholder filed a substantially similar action in the U.S. District Court for the Northern District of Illinois on October 7, 2024 against the same defendants and a former Chief Operating Officer of the Company, in a case entitled City of Cape Coral Municipal General Employees Retirement Plan v. Methode Electronics, Inc., et al. The second securities class action was filed on behalf of a broader putative class of purchasers of Company common stock between December 2, 2021 and March 6, 2024. After the cases were consolidated and a lead plaintiff appointed, Defendants moved to dismiss the consolidated complaint in its entirety for failure to state a claim. On February 3, 2026, the judge presiding over the case granted Defendants’ motion to dismiss but allowed Plaintiff an opportunity to file an amended complaint and set a schedule for briefing on any motion to dismiss that amended complaint. Plaintiff subsequently filed a second amended complaint, which Defendants moved to dismiss in its entirety for failure to state a claim, and that motion remains pending.\n\nIn addition, two purported stockholders filed derivative lawsuits on November 26, 2024 and February 4, 2025, respectively. The derivative lawsuits were filed on behalf of the Company in the U.S. District Court for the Northern District of Illinois against the current members of the Company’s Board of Directors, as well as certain former directors and executives, alleging that the defendants breached their fiduciary duties by allowing the Company to issue various statements that are alleged to have been false or misleading for the same reasons alleged in the securities class action complaints. The derivative lawsuits are entitled Ray Homsi v. Donald Duda, et al. and Kevin D. Murphy v. Mark D. Schwabero, et al. (collectively with the Salem and City of Cape Coral matters, the “Stockholder Actions”).\n\nThe Company disagrees with and intends to vigorously defend against the Stockholder Actions. The Stockholder Actions could result in costs and losses to the Company, including potential costs associated with the indemnification of the other defendants. At this time, given the current status of the Stockholder Actions, the Company is unable to reasonably estimate an amount or range of reasonably possible loss, if any, that may result from the Stockholder Actions.\n\nSEC Investigation\n\nThe Company received subpoenas from the SEC dated November 1, 2024 and March 12, 2025 seeking documents and information relating to, among other things, the Company’s operations in certain foreign countries, certain financial and accounting matters relating thereto, compliance with the Foreign Corrupt Practices Act and other anti-corruption laws, material weaknesses in the Company’s internal control over financial reporting previously reported in its public filings, deficiencies and significant deficiencies in the Company’s internal control over financial reporting, accounting and finance policies and procedures and other accounting and\n\nF-30\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nfinance matters including new business bookings, certain financial metrics and performance indicators, performance relative to targets and guidance for certain periods, executive compensation policies and amounts, hotline tips and complaints, and terminations or resignations of company executives. On May 14, 2026, the SEC informed the Company that the SEC had concluded its investigation and did not intend to pursue enforcement actions.\n\n \n\nNote 13. Shareholders’ Equity\n\nShare buyback programs\n\nOn March 31, 2021, as subsequently amended on June 16, 2022, the Board of Directors authorized the purchase of up to $200.0 million of the Company’s outstanding common stock through June 14, 2024 (the “2021 Buyback Authorization”). On June 13, 2024, the Board of Directors authorized a new share buyback authorization, that commenced on June 17, 2024, for the purchase of up to $200.0 million (the “2024 Buyback Authorization”) of the Company’s outstanding common stock which expired on June 17, 2026. Purchases could have been made in private transactions or on the open market, including pursuant to purchase plans designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934. We did not make any purchases under the 2024 Buyback Authorization.\n\nThe following table summarizes the activity under the 2021 Buyback Authorization:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\nShares purchased\n\n \n\n \n\n—\n\n \n\n \n\n \n\n136,000\n\n \n\n \n\n \n\n627,586\n\n \n\nAverage price per share\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n11.55\n\n \n\n \n\n$\n\n21.93\n\n \n\nTotal cost (in millions)\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1.6\n\n \n\n \n\n$\n\n13.8\n\n \n\nPrior to its expiration, a total of 3,553,961 shares were purchased under the 2021 Buyback Program at a total cost of $134.6 million. All purchased shares were retired and are reflected as a reduction of common stock for the par value of shares, with the excess applied as a reduction to retained earnings. No further shares can be purchased under the 2021 Buyback Authorization. As of May 2, 2026, prior to its expiration, the dollar value of shares that remained available to be purchased by the Company under the 2024 Buyback Program was $200.0 million.\n\nDividends\n\nThe Company paid dividends totaling $8.3 million, $20.4 million, and $19.9 million in fiscal 2026, fiscal 2025, and fiscal 2024, respectively. Dividends paid in fiscal 2026 and fiscal 2025 include $0.5 million and $0.9 million, respectively, of dividend equivalent payments for restricted stock units that vested.\n\nAccumulated other comprehensive income (loss)\n\nComprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. A summary of changes in accumulated other comprehensive income (loss), net of tax is shown below:\n\nF-31\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n(in millions)\n\n \n\nCurrency translation adjustments (1)\n\n \n\n \n\nDerivative\ninstruments\n\n \n\n \n\nTotal\n\n \n\nBalance as of April 29, 2023\n\n \n\n$\n\n(19.8\n\n)\n\n \n\n$\n\n0.8\n\n \n\n \n\n$\n\n(19.0\n\n)\n\nOther comprehensive income (loss)\n\n \n\n \n\n(18.1\n\n)\n\n \n\n \n\n(1.3\n\n)\n\n \n\n \n\n(19.4\n\n)\n\nTax (expense) benefit\n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n1.7\n\n \n\nNet current period other comprehensive income (loss)\n\n \n\n \n\n(16.7\n\n)\n\n \n\n \n\n(1.0\n\n)\n\n \n\n \n\n(17.7\n\n)\n\nBalance as of April 27, 2024\n\n \n\n \n\n(36.5\n\n)\n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n(36.7\n\n)\n\nOther comprehensive income (loss)\n\n \n\n \n\n9.7\n\n \n\n \n\n \n\n(1.8\n\n)\n\n \n\n \n\n7.9\n\n \n\nTax (expense) benefit\n\n \n\n \n\n(1.4\n\n)\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n(1.0\n\n)\n\nNet current period other comprehensive income (loss)\n\n \n\n \n\n8.3\n\n \n\n \n\n \n\n(1.4\n\n)\n\n \n\n \n\n6.9\n\n \n\nBalance as of May 3, 2025\n\n \n\n \n\n(28.2\n\n)\n\n \n\n \n\n(1.6\n\n)\n\n \n\n \n\n(29.8\n\n)\n\nOther comprehensive income (loss)\n\n \n\n \n\n18.1\n\n \n\n \n\n \n\n4.0\n\n \n\n \n\n \n\n22.1\n\n \n\nTax (expense) benefit\n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n(0.9\n\n)\n\n \n\n \n\n(1.1\n\n)\n\nNet current period other comprehensive income (loss)\n\n \n\n \n\n17.9\n\n \n\n \n\n \n\n3.1\n\n \n\n \n\n \n\n21.0\n\n \n\nBalance as of May 2, 2026\n\n \n\n$\n\n(10.3\n\n)\n\n \n\n$\n\n1.5\n\n \n\n \n\n$\n\n(8.8\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(1) Includes foreign currency gains and losses related to debt designated as a net investment hedge. See Note 8, \"Derivative Financial Instruments and Hedging Activities\" for additional information.\n\n \n\nStock-based compensation\n\nThe Company has granted stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance stock units (“PSUs”) and stock awards to employees and non-employee directors under the Methode Electronics, Inc. 2022 Omnibus Incentive Plan (“2022 Plan”), the Methode Electronics, Inc. 2014 Omnibus Incentive Plan (“2014 Plan”) and the Methode Electronics, Inc. 2010 Stock Plan (“2010 Plan”). The Company’s stockholders approved the 2022 Plan on September 14, 2022. The Company can no longer make grants under the 2014 Plan and 2010 Plan.\n\nSubject to adjustment as provided in the 2022 Plan and the 2022 Plan’s share counting provisions, the number of shares of the Company’s common stock that are available for all awards under the 2022 Plan is 5,550,000, less one share for every one share of common stock subject to an option or SAR award granted after April 30, 2022 under the 2014 Plan and 2.28 shares for every one share that was subject to an award other than an option or SAR granted after April 30, 2022 under the 2014 Plan. As of May 2, 2026, there were approximately 0.9 million shares available for award under the 2022 Plan.\n\nStock-based compensation expense\n\nAll stock-based payments to employees and directors are recognized in selling and administrative expenses on the consolidated statements of operations. 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 related to the equity awards:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n(in millions)\n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nRSUs\n\n \n\n$\n\n5.1\n\n \n\n \n\n$\n\n5.2\n\n \n\n \n\n$\n\n2.0\n\n \n\nPSUs\n\n \n\n \n\n2.5\n\n \n\n \n\n \n\n0.7\n\n \n\n \n\n \n\n—\n\n \n\nDeferred non-employee director awards\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n1.0\n\n \n\nNon-employee director awards\n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n0.6\n\n \n\n \n\n \n\n0.6\n\n \n\nTotal stock-based compensation expense\n\n \n\n$\n\n8.5\n\n \n\n \n\n$\n\n7.4\n\n \n\n \n\n$\n\n3.6\n\n \n\n \n\nRestricted stock awards (RSAs)\n\nPrior to May 2, 2026, the Company had certain RSAs outstanding which were subject to the achievement of an EBITDA measure for fiscal 2025. The following table summarizes the RSA activity:\n\n \n\nF-32\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n \n\n \n\nRestricted\nstock\nawards\n\n \n\n \n\nWeighted\naverage grant\ndate fair value\n\n \n\nNon-vested at April 29, 2023\n\n \n\n \n\n933,674\n\n \n\n \n\n$\n\n28.73\n\n \n\nAwarded\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nVested\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nForfeited\n\n \n\n \n\n(144,000\n\n)\n\n \n\n$\n\n28.28\n\n \n\nNon-vested at April 27, 2024\n\n \n\n \n\n789,674\n\n \n\n \n\n$\n\n28.81\n\n \n\nAwarded\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nVested\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nForfeited\n\n \n\n \n\n(79,325\n\n)\n\n \n\n$\n\n28.28\n\n \n\nNon-vested at May 3, 2025\n\n \n\n \n\n710,349\n\n \n\n \n\n$\n\n28.87\n\n \n\nAwarded\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nVested\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nForfeited\n\n \n\n \n\n(710,349\n\n)\n\n \n\n$\n\n—\n\n \n\nNon-vested at May 2, 2026\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nThe EBITDA performance measure for fiscal 2025 was not met and the outstanding RSAs were cancelled in June 2025. No RSAs remain outstanding as of May 2, 2026.\n\n \n\nF-33\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nRestricted stock units (RSUs)\n\nRSUs granted vest over a pre-determined period of time, up to five years from the date of grant. The fair value of the RSUs granted are 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:\n\n \n\n \n\n \n\nRestricted\nstock\nunits\n\n \n\n \n\nWeighted\naverage grant\ndate fair value\n\n \n\nNon-vested at April 29, 2023\n\n \n\n \n\n770,667\n\n \n\n \n\n$\n\n30.47\n\n \n\nAwarded\n\n \n\n \n\n389,966\n\n \n\n \n\n$\n\n21.48\n\n \n\nVested\n\n \n\n \n\n(36,221\n\n)\n\n \n\n$\n\n42.72\n\n \n\nForfeited\n\n \n\n \n\n(182,772\n\n)\n\n \n\n$\n\n29.65\n\n \n\nNon-vested at April 27, 2024\n\n \n\n \n\n941,640\n\n \n\n \n\n$\n\n26.43\n\n \n\nAwarded\n\n \n\n \n\n441,353\n\n \n\n \n\n$\n\n11.09\n\n \n\nConversion of cash bonus to RSUs\n\n \n\n \n\n160,401\n\n \n\n \n\n$\n\n12.87\n\n \n\nVested\n\n \n\n \n\n(735,309\n\n)\n\n \n\n$\n\n24.28\n\n \n\nForfeited\n\n \n\n \n\n(187,535\n\n)\n\n \n\n$\n\n22.71\n\n \n\nNon-vested at May 3, 2025\n\n \n\n \n\n620,550\n\n \n\n \n\n$\n\n15.31\n\n \n\nAwarded\n\n \n\n \n\n999,450\n\n \n\n \n\n$\n\n6.61\n\n \n\nVested\n\n \n\n \n\n(340,459\n\n)\n\n \n\n$\n\n17.23\n\n \n\nForfeited\n\n \n\n \n\n(82,228\n\n)\n\n \n\n$\n\n12.86\n\n \n\nNon-vested at May 2, 2026\n\n \n\n \n\n1,197,313\n\n \n\n \n\n$\n\n7.67\n\n \n\n \n\nIn July 2024, 160,401 RSUs were awarded in exchange for cash bonuses earned by certain employees. These RSUs vested in March 2025. As the expense associated with the cash bonuses was previously recognized in fiscal 2024, there was no incremental expense to be recognized for these RSUs. The Company reclassified $2.1 million from accrued employee liabilities to additional paid-in capital on its consolidated balance sheets related to the conversion of the cash bonuses to RSUs.\n\nAs of May 3, 2025, there were 147,329 RSUs that vested for which shares were issued in the first quarter of fiscal 2026. As of May 2, 2026, unrecognized share-based compensation expense for RSUs was $4.5 million which will be recognized over a weighted-average amortization period of 1.4 years.\n\nPerformance stock units (PSUs)\n\nIn fiscal 2025, the Company granted 208,661 PSUs which will vest upon the achievement of a total stockholder return (“TSR”) measure based on the growth in the Company’s stock price over a three-year performance period that ends April 29, 2028. In fiscal 2026, the Company granted 835,479 PSUs. The number of shares to be issued may range from 0% to a maximum of 200% of the PSUs granted. The Company estimated the grant date fair value of the PSUs using the Monte Carlo simulation model, as the TSR metric and changes in stock price are considered market conditions under ASC 718. The following table provides a summary of the weighted-average assumptions for the PSUs granted:\n\n \n\n \n\nAssumptions\n\n \n\nExpected volatility\n\n \n\n \n\n66.34\n\n%\n\nRisk free interest rate\n\n \n\n \n\n3.68\n\n%\n\nExpected term (in years)\n\n \n\n \n\n2.72\n\n \n\nGrant date fair value\n\n \n\n$\n\n7.99\n\n \n\n \n\nF-34\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nThe PSUs earn dividend equivalents during the vesting periods, which are forfeitable if the PSUs do not vest. As of May 2, 2026, unrecognized share-based compensation expense for the PSUs was $4.9 million, which is expected to be recognized over a weighted average period of approximately 1.9 years. The following table summarizes PSU activity:\n\n \n\n \n\nPerformance\nstock\nunits\n\n \n\n \n\nWeighted\naverage grant\ndate fair value\n\n \n\nNon-vested at April 27, 2024\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nAwarded\n\n \n\n \n\n208,661\n\n \n\n \n\n$\n\n14.09\n\n \n\nVested\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nForfeited\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nNon-vested at May 3, 2025\n\n \n\n \n\n208,661\n\n \n\n \n\n$\n\n14.09\n\n \n\nAwarded\n\n \n\n \n\n835,479\n\n \n\n \n\n$\n\n7.11\n\n \n\nVested\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nForfeited\n\n \n\n \n\n(30,878\n\n)\n\n \n\n$\n\n7.27\n\n \n\nNon-vested at May 2, 2026\n\n \n\n \n\n1,013,262\n\n \n\n \n\n$\n\n8.33\n\n \n\n \n\nNon-employee director stock awards\n\nThe Company previously granted stock awards to its non-employee directors as a component of their compensation. The stock awards vested immediately upon grant. Non-employee directors could have elected to defer receipt of their shares under the Company’s non-qualified deferred compensation plan. The following table summarizes awards granted to non-employee directors:\n\n \n\n \n\n \n\nNon-employee director awards\n\n \n\n \n\nDeferred non-employee director awards\n\n \n\n \n\nTotal\n\n \n\n \n\nWeighted\naverage grant\ndate fair value\n\n \n\nOutstanding at April 29, 2023\n\n \n\n \n\n—\n\n \n\n \n\n \n\n45,750\n\n \n\n \n\n \n\n45,750\n\n \n\n \n\n$\n\n40.56\n\n \n\nAwarded\n\n \n\n \n\n16,804\n\n \n\n \n\n \n\n31,569\n\n \n\n \n\n \n\n48,373\n\n \n\n \n\n$\n\n32.72\n\n \n\nIssued\n\n \n\n \n\n(16,804\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(16,804\n\n)\n\n \n\n$\n\n33.33\n\n \n\nOutstanding at April 27, 2024\n\n \n\n \n\n—\n\n \n\n \n\n \n\n77,319\n\n \n\n \n\n \n\n77,319\n\n \n\n \n\n$\n\n37.23\n\n \n\nAwarded\n\n \n\n \n\n56,680\n\n \n\n \n\n \n\n93,749\n\n \n\n \n\n \n\n150,429\n\n \n\n \n\n$\n\n9.86\n\n \n\nIssued\n\n \n\n \n\n(56,680\n\n)\n\n \n\n \n\n(23,756\n\n)\n\n \n\n \n\n(80,436\n\n)\n\n \n\n$\n\n10.49\n\n \n\nOutstanding at May 3, 2025\n\n \n\n \n\n—\n\n \n\n \n\n \n\n147,312\n\n \n\n \n\n \n\n147,312\n\n \n\n \n\n$\n\n22.39\n\n \n\nAwarded\n\n \n\n \n\n55,629\n\n \n\n \n\n \n\n61,051\n\n \n\n \n\n \n\n116,680\n\n \n\n \n\n$\n\n7.54\n\n \n\nIssued\n\n \n\n \n\n(55,629\n\n)\n\n \n\n \n\n(11,140\n\n)\n\n \n\n \n\n(66,769\n\n)\n\n \n\n$\n\n10.33\n\n \n\nOutstanding at May 2, 2026\n\n \n\n \n\n—\n\n \n\n \n\n \n\n197,223\n\n \n\n \n\n \n\n197,223\n\n \n\n \n\n$\n\n18.80\n\n \n\nDuring the third quarter of fiscal year 2026, the Company terminated its deferred compensation plan and it is expected to be fully liquidated by January 2027.\n\nStock options\n\nThe following table summarizes stock option activity:\n\n \n\n \n\nStock Options\n\n \n\n \n\nWeighted average exercise price\n\n \n\n \n\nWeighted average life (years)\n\n \n\n \n\nAggregate intrinsic value (in millions)\n\n \n\nOutstanding at April 29, 2023\n\n \n\n \n\n20,000\n\n \n\n \n\n$\n\n37.01\n\n \n\n \n\n \n\n1.2\n\n \n\n \n\n$\n\n0.1\n\n \n\nExercised\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForfeited\n\n \n\n \n\n(12,000\n\n)\n\n \n\n$\n\n37.01\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOutstanding at April 27, 2024\n\n \n\n \n\n8,000\n\n \n\n \n\n$\n\n37.01\n\n \n\n \n\n \n\n0.2\n\n \n\n \n\n$\n\n—\n\n \n\nExercised\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForfeited\n\n \n\n \n\n(8,000\n\n)\n\n \n\n$\n\n37.01\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOutstanding at May 3, 2025\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nExercised\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForfeited\n\n \n\n \n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n \n\n \n\n \n\n$\n\n—\n\n \n\nOutstanding at May 2, 2026\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n \n\nF-35\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nNote 14. Income (Loss) Per Share\n\nBasic income (loss) per share attributable to Methode is calculated by dividing net income (loss) attributable to Methode, by the number of weighted average common shares outstanding for the applicable period, but excludes any contingently issued shares where the contingency has not been resolved. The weighted average number of common shares used in the diluted income (loss) per share calculation is determined using the treasury stock method which includes the effect of all potential dilutive common shares outstanding during the period.\n\nThe following table sets forth the computation of basic and diluted income (loss) per share:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n \n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nNet income (loss) attributable to Methode (in millions)\n\n \n\n$\n\n(35.7\n\n)\n\n \n\n$\n\n(62.6\n\n)\n\n \n\n$\n\n(123.3\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic weighted average shares outstanding\n\n \n\n \n\n35,521,615\n\n \n\n \n\n \n\n35,330,586\n\n \n\n \n\n \n\n35,470,471\n\n \n\nDilutive effect of common stock equivalents\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nDiluted weighted average shares outstanding\n\n \n\n \n\n35,521,615\n\n \n\n \n\n \n\n35,330,586\n\n \n\n \n\n \n\n35,470,471\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIncome (loss) per share attributable to Methode:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic\n\n \n\n$\n\n(1.01\n\n)\n\n \n\n$\n\n(1.77\n\n)\n\n \n\n$\n\n(3.48\n\n)\n\nDiluted\n\n \n\n$\n\n(1.01\n\n)\n\n \n\n$\n\n(1.77\n\n)\n\n \n\n$\n\n(3.48\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNumber of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding\n\n \n\n \n\n410,350\n\n \n\n \n\n \n\n1,156,752\n\n \n\n \n\n \n\n1,429,229\n\n \n\nIn fiscal 2026, fiscal 2025 and fiscal 2024, all potential common shares issuable for stock options, PSUs and RSUs were excluded from the calculation of diluted loss per share, as the effect of including them would have been anti-dilutive. The dilutive effect of potential common shares issuable for stock options and RSUs on the weighted-average number of common shares outstanding would have been approximately 351,000, 230,000 and 535,378 common shares, respectively, for fiscal 2026, fiscal 2025 and fiscal 2024.\n\nNote 15. Segment Information and Geographic Area Information\n\nAn 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 is the Company’s President and Chief Executive Officer (“CEO”).\n\nThe Automotive segment supplies electronic and electro-mechanical devices and related products to automobile OEMs and their tiered suppliers across a broad range of vehicle platforms and powertrains. Products include a full spectrum of vehicle systems from power distribution solutions, including busbars, smart connect systems, battery disconnect units, and integrated circuit boards, to user interface components, specialized LED lighting solutions, and advanced sensor applications.\n\nThe Industrial segment manufactures exterior and interior 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 high-voltage flexible power cabling systems and powder-coated busbars that are used in various markets and applications, including aerospace, commercial vehicles, data centers, industrial equipment, power conversion, military, telecommunications and transportation.\n\nThe Interface segment provides a variety of high-speed digital communication over copper media solutions for the data networking and broadband markets, and user interface panel solutions for the appliance market. Solutions include copper transceivers, distribution point units, and solid-state field-effect consumer touch panels. In the fourth quarter of fiscal 2026, the Company sold its dataMate business which was included in the Interface segment. Additionally, the consumer appliance business is winding down as programs roll-off.\n\nThe Medical segment was made up of the Company’s medical device business, Dabir Surfaces, with its surface support technology aimed at pressure injury prevention. In the first quarter of fiscal 2024, the Company made the decision to initiate the discontinuation of Dabir Surfaces. In October 2023, the Company sold certain assets of its Dabir Surfaces business. See Note 3, “Acquisitions and Dispositions” for additional information.\n\nF-36\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nCorporate and intersegment eliminations do not meet the requirements for being classified as an operating segment. Corporate costs include various support functions, such as accounting/finance, executive administration, human resources, information technology and legal.\n\nThe accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1, “Description of Business and Summary of Significant Accounting Policies.” The CODM allocates resources to and evaluates the performance of each operating segment based on operating income. Operating income or loss is used to monitor budget versus actual results and year-over-year actual results to inform the decisions of how to allocate capital and resources within the Company. Transfers between segments are recorded using internal transfer prices set by the Company. Segment assets are not presented as it is not a measure reviewed by the CODM in allocating resources and assessing performance.\n\nThe tables below present information about the Company’s reportable segments.\n\n \n\n \n\nFiscal Year Ended May 2, 2026 (52 Weeks)\n\n \n\n(in millions)\n\n \n\nAutomotive\n\n \n\n \n\nIndustrial\n\n \n\n \n\nInterface\n\n \n\n \n\nMedical\n\n \n\n \n\nEliminations/\nCorporate\n\n \n\n \n\nConsolidated\n\n \n\nNet sales\n\n \n\n$\n\n489.2\n\n \n\n \n\n$\n\n583.6\n\n \n\n \n\n$\n\n27.2\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n(80.8\n\n)\n\n \n\n$\n\n1,019.2\n\n \n\nTransfers between segments\n\n \n\n \n\n(21.5\n\n)\n\n \n\n \n\n(59.3\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n80.8\n\n \n\n \n\n \n\n—\n\n \n\nNet sales to unaffiliated customers\n\n \n\n \n\n467.7\n\n \n\n \n\n \n\n524.3\n\n \n\n \n\n \n\n27.2\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,019.2\n\n \n\nCost of products sold\n\n \n\n \n\n439.9\n\n \n\n \n\n \n\n356.9\n\n \n\n \n\n \n\n20.7\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(0.5\n\n)\n\n \n\n \n\n817.0\n\n \n\nSelling and administrative expenses\n\n \n\n \n\n50.1\n\n \n\n \n\n \n\n37.5\n\n \n\n \n\n \n\n1.5\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n81.2\n\n \n\n \n\n \n\n170.3\n\n \n\nAmortization of intangibles\n\n \n\n \n\n7.8\n\n \n\n \n\n \n\n15.3\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n23.1\n\n \n\nIncome (loss) from operations\n\n \n\n$\n\n(30.1\n\n)\n\n \n\n$\n\n114.6\n\n \n\n \n\n$\n\n5.0\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n(80.7\n\n)\n\n \n\n$\n\n8.8\n\n \n\nInterest expense, net\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n23.3\n\n \n\nOther expense (income), net\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(3.8\n\n)\n\nPre-tax income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n(10.7\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPurchases of property, plant and equipment\n\n \n\n$\n\n17.0\n\n \n\n \n\n$\n\n3.7\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1.7\n\n \n\n \n\n$\n\n22.4\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation expense\n\n \n\n$\n\n23.8\n\n \n\n \n\n$\n\n10.6\n\n \n\n \n\n$\n\n0.2\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1.1\n\n \n\n \n\n$\n\n35.7\n\n \n\n \n\n \n\n \n\nFiscal Year Ended May 3, 2025 (53 Weeks)\n\n \n\n(in millions)\n\n \n\nAutomotive\n\n \n\n \n\nIndustrial\n\n \n\n \n\nInterface\n\n \n\n \n\nMedical\n\n \n\n \n\nEliminations/\nCorporate\n\n \n\n \n\nConsolidated\n\n \n\nNet sales\n\n \n\n$\n\n522.3\n\n \n\n \n\n$\n\n527.1\n\n \n\n \n\n$\n\n51.8\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n(53.1\n\n)\n\n \n\n$\n\n1,048.1\n\n \n\nTransfers between segments\n\n \n\n \n\n(13.4\n\n)\n\n \n\n \n\n(39.7\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n53.1\n\n \n\n \n\n \n\n—\n\n \n\nNet sales to unaffiliated customers\n\n \n\n \n\n508.9\n\n \n\n \n\n \n\n487.4\n\n \n\n \n\n \n\n51.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,048.1\n\n \n\nCost of products sold\n\n \n\n \n\n504.2\n\n \n\n \n\n \n\n343.2\n\n \n\n \n\n \n\n39.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1.8\n\n)\n\n \n\n \n\n884.7\n\n \n\nSelling and administrative expenses\n\n \n\n \n\n43.3\n\n \n\n \n\n \n\n39.9\n\n \n\n \n\n \n\n2.4\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n78.3\n\n \n\n \n\n \n\n163.9\n\n \n\nAmortization of intangibles\n\n \n\n \n\n9.1\n\n \n\n \n\n \n\n14.3\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n23.4\n\n \n\nIncome (loss) from operations\n\n \n\n$\n\n(47.7\n\n)\n\n \n\n$\n\n90.0\n\n \n\n \n\n$\n\n10.3\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n(76.5\n\n)\n\n \n\n$\n\n(23.9\n\n)\n\nInterest expense, net\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n22.0\n\n \n\nOther expense (income), net\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n4.2\n\n \n\nPre-tax income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n(50.1\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPurchases of property, plant and equipment\n\n \n\n$\n\n33.2\n\n \n\n \n\n$\n\n8.3\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n41.6\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation expense\n\n \n\n$\n\n24.9\n\n \n\n \n\n$\n\n8.8\n\n \n\n \n\n$\n\n0.2\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1.2\n\n \n\n \n\n$\n\n35.1\n\n \n\n \n\nF-37\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n \n\n \n\nFiscal Year Ended April 27, 2024 (52 Weeks)\n\n \n\n(in millions)\n\n \n\nAutomotive\n\n \n\n \n\nIndustrial\n\n \n\n \n\nInterface\n\n \n\n \n\nMedical\n\n \n\n \n\nEliminations/\nCorporate\n\n \n\n \n\nConsolidated\n\n \n\nNet sales\n\n \n\n$\n\n610.6\n\n \n\n \n\n$\n\n493.4\n\n \n\n \n\n$\n\n53.9\n\n \n\n \n\n$\n\n2.4\n\n \n\n \n\n$\n\n(45.8\n\n)\n\n \n\n$\n\n1,114.5\n\n \n\nTransfers between segments\n\n \n\n \n\n(12.4\n\n)\n\n \n\n \n\n(33.3\n\n)\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n45.8\n\n \n\n \n\n \n\n—\n\n \n\nNet sales to unaffiliated customers\n\n \n\n \n\n598.2\n\n \n\n \n\n \n\n460.1\n\n \n\n \n\n \n\n53.8\n\n \n\n \n\n \n\n2.4\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,114.5\n\n \n\nCost of products sold\n\n \n\n \n\n567.8\n\n \n\n \n\n \n\n322.4\n\n \n\n \n\n \n\n43.5\n\n \n\n \n\n \n\n2.6\n\n \n\n \n\n \n\n(0.6\n\n)\n\n \n\n \n\n935.7\n\n \n\nSelling and administrative expenses\n\n \n\n \n\n55.5\n\n \n\n \n\n \n\n34.1\n\n \n\n \n\n \n\n3.4\n\n \n\n \n\n \n\n2.8\n\n \n\n \n\n \n\n65.1\n\n \n\n \n\n \n\n160.9\n\n \n\nGoodwill impairment\n\n \n\n \n\n105.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n105.9\n\n \n\nAmortization of intangibles\n\n \n\n \n\n9.2\n\n \n\n \n\n \n\n14.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n24.0\n\n \n\nIncome (loss) from operations\n\n \n\n$\n\n(140.2\n\n)\n\n \n\n$\n\n88.8\n\n \n\n \n\n$\n\n6.9\n\n \n\n \n\n$\n\n(3.0\n\n)\n\n \n\n$\n\n(64.5\n\n)\n\n \n\n$\n\n(112.0\n\n)\n\nInterest expense, net\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n16.7\n\n \n\nOther expense (income), net\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(0.6\n\n)\n\nPre-tax income (loss)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n(128.1\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPurchases of property, plant and equipment\n\n \n\n$\n\n41.4\n\n \n\n \n\n$\n\n7.4\n\n \n\n \n\n$\n\n0.8\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n0.6\n\n \n\n \n\n$\n\n50.2\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation expense\n\n \n\n$\n\n23.2\n\n \n\n \n\n$\n\n7.9\n\n \n\n \n\n$\n\n0.3\n\n \n\n \n\n$\n\n0.2\n\n \n\n \n\n$\n\n2.3\n\n \n\n \n\n$\n\n33.9\n\n \n\nThe following tables set forth net sales and tangible long-lived assets by geographic area where the Company operates. Tangible long-lived assets include property, plant and equipment and operating lease assets:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n(in millions)\n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nNet sales:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nU.S.\n\n \n\n$\n\n378.3\n\n \n\n \n\n$\n\n445.2\n\n \n\n \n\n$\n\n475.6\n\n \n\nMalta\n\n \n\n \n\n204.2\n\n \n\n \n\n \n\n202.0\n\n \n\n \n\n \n\n179.5\n\n \n\nFinland\n\n \n\n \n\n69.1\n\n \n\n \n\n \n\n58.2\n\n \n\n \n\n \n\n66.5\n\n \n\nChina\n\n \n\n \n\n124.3\n\n \n\n \n\n \n\n125.9\n\n \n\n \n\n \n\n196.3\n\n \n\nEgypt\n\n \n\n \n\n124.9\n\n \n\n \n\n \n\n99.9\n\n \n\n \n\n \n\n73.5\n\n \n\nOther\n\n \n\n \n\n118.4\n\n \n\n \n\n \n\n116.9\n\n \n\n \n\n \n\n123.1\n\n \n\nTotal net sales\n\n \n\n$\n\n1,019.2\n\n \n\n \n\n$\n\n1,048.1\n\n \n\n \n\n$\n\n1,114.5\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(in millions)\n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\n \n\n \n\nTangible long-lived assets, net:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nU.S.\n\n \n\n$\n\n57.0\n\n \n\n \n\n$\n\n71.7\n\n \n\n \n\n \n\n \n\nMalta\n\n \n\n \n\n40.2\n\n \n\n \n\n \n\n42.5\n\n \n\n \n\n \n\n \n\nEgypt\n\n \n\n \n\n52.0\n\n \n\n \n\n \n\n45.9\n\n \n\n \n\n \n\n \n\nChina\n\n \n\n \n\n21.0\n\n \n\n \n\n \n\n22.6\n\n \n\n \n\n \n\n \n\nMexico\n\n \n\n \n\n19.2\n\n \n\n \n\n \n\n19.6\n\n \n\n \n\n \n\n \n\nBelgium\n\n \n\n \n\n20.3\n\n \n\n \n\n \n\n20.3\n\n \n\n \n\n \n\n \n\nOther\n\n \n\n \n\n20.1\n\n \n\n \n\n \n\n22.7\n\n \n\n \n\n \n\n \n\nTotal tangible long-lived assets, net\n\n \n\n$\n\n229.8\n\n \n\n \n\n$\n\n245.3\n\n \n\n \n\n \n\n \n\n \n\nNote 16. Leases\n\nThe Company leases real estate, automobiles and certain equipment under both operating and finance leases. The Company does not have any significant arrangements where it is the lessor. The majority of the Company’s global lease portfolio represents leases of real estate, such as manufacturing facilities, warehouses and buildings. As of May 2, 2026, the Company’s leases have remaining lease terms of up to 27.34 years, some of which include optional renewals or terminations, which are considered in the Company’s assessments when such options are reasonably certain to be exercised. Any variable payments related to the lease will be recorded as\n\nF-38\n\n[Table of Contents](#toc_page)\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nlease expense when and as incurred. The Company’s lease payments are largely fixed. As of May 2, 2026, the operating leases that the Company has signed but have not yet commenced are immaterial.\n\nIn addition to the operating lease assets presented on the consolidated balance sheets, assets under finance leases of $0.4 million and $0.5 million are included in property, plant and equipment, net on the consolidated balance sheets as of May 2, 2026 and May 3, 2025, respectively. Finance lease obligations were $0.4 million and $0.5 million as of May 2, 2026 and May 3, 2025, respectively, and are split between other accrued expenses for the short-term portion and other long-term liabilities for the long-term portion on the consolidated balance sheets. The Company had an immaterial amount of finance lease expense in the years ended May 2, 2026 and May 3, 2025.\n\nIn fiscal 2026, the Company entered into a sublease agreement to exit its corporate headquarters in Chicago, Illinois, resulting in a ROU asset impairment charge of $0.6 million.\n\nThe components of lease expense were as follows:\n\n \n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n(in millions)\n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nLease cost:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating lease cost\n\n \n\n$\n\n8.5\n\n \n\n \n\n$\n\n9.9\n\n \n\n \n\n$\n\n10.6\n\n \n\nVariable lease cost\n\n \n\n \n\n0.7\n\n \n\n \n\n \n\n2.0\n\n \n\n \n\n \n\n1.7\n\n \n\nTotal lease cost\n\n \n\n$\n\n9.2\n\n \n\n \n\n$\n\n11.9\n\n \n\n \n\n$\n\n12.3\n\n \n\nSupplemental cash flow and other information related to operating leases was as follows:\n\n \n\n \n\nFiscal Year Ended\n\n \n\n \n\n \n\nMay 2, 2026\n\n \n\n \n\nMay 3, 2025\n\n \n\n \n\nApril 27, 2024\n\n \n\n \n\n \n\n(52 Weeks)\n\n \n\n \n\n(53 Weeks)\n\n \n\n \n\n(52 Weeks)\n\n \n\nOperating cash flows:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash paid related to operating lease obligations, including lease termination payment (in millions)\n\n \n\n$\n\n9.2\n\n \n\n \n\n$\n\n9.3\n\n \n\n \n\n$\n\n9.6\n\n \n\nNon-cash activity:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRight-of-use assets obtained in exchange for lease obligations (in millions)\n\n \n\n$\n\n4.6\n\n \n\n \n\n$\n\n6.4\n\n \n\n \n\n$\n\n6.7\n\n \n\nWeighted-average remaining lease term (years)\n\n \n\n \n\n3.4\n\n \n\n \n\n3.9\n\n \n\n \n\n \n\n4.6\n\n \n\nWeighted-average discount rate\n\n \n\n \n\n5.4\n\n%\n\n \n\n \n\n5.5\n\n%\n\n \n\n \n\n5.4\n\n%\n\n \n\nMaturities of operating lease liabilities as of May 2, 2026, are shown below:\n\n(in millions)\n\n \n\n \n\n \n\nFiscal Year:\n\n \n\n \n\n \n\n2027\n\n \n\n$\n\n9.3\n\n \n\n2028\n\n \n\n \n\n6.9\n\n \n\n2029\n\n \n\n \n\n3.5\n\n \n\n2030\n\n \n\n \n\n1.7\n\n \n\n2031\n\n \n\n \n\n1.8\n\n \n\nThereafter\n\n \n\n \n\n1.8\n\n \n\nTotal Lease Payments\n\n \n\n \n\n25.0\n\n \n\nLess: Imputed Interest\n\n \n\n \n\n(2.2\n\n)\n\nPresent Value of Lease Liabilities\n\n \n\n$\n\n22.8\n\n \n\n \n\nNote 17. Related Party Transactions\n\nThe Company’s former Interim Chief Executive Officer, Kevin Nystrom, is a partner and managing director of AlixPartners, LLP (“AlixPartners”), a business advisory firm that provided a number of consulting services to the Company through the third quarter of fiscal 2025. The Company’s former Interim Chief Financial Officer, David Rawden, is a director of AlixPartners. In fiscal 2026, fiscal 2025 and fiscal 2024, the Company recognized zero, $9.8 million, and $1.4 million, respectively, of expense in selling and administrative expenses for consulting services provided by AlixPartners.\n\n \n\nF-39\n\n[Table of Contents](#toc_page)\n\n \n\nSCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS\n\nMETHODE ELECTRONICS, INC. AND SUBSIDIARIES\n\n(in millions)\n\n \n\nDescription\n\n \n\nBalance at\nbeginning\nof period\n\n \n\n \n\n(Benefits)/\ncharges to\nincome\n\n \n\n \n\nDeductions\n\n \n\n \n\nForeign exchange translation\n\n \n\n \n\nBalance at\nend of\nperiod\n\n \n\nFiscal Year Ended May 2, 2026 (52 Weeks)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAllowance for uncollectible accounts\n\n \n\n$\n\n3.0\n\n \n\n \n\n$\n\n0.2\n\n \n\n \n\n$\n\n(0.5\n\n)\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n2.7\n\n \n\nInventory obsolescence reserves\n\n \n\n$\n\n28.9\n\n \n\n \n\n$\n\n8.0\n\n \n\n \n\n$\n\n(10.5\n\n)\n\n \n\n$\n\n0.5\n\n \n\n \n\n$\n\n26.9\n\n \n\nDeferred tax valuation allowance\n\n \n\n$\n\n20.7\n\n \n\n \n\n$\n\n0.4\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n21.1\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFiscal Year Ended May 3, 2025 (53 Weeks)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAllowance for uncollectible accounts\n\n \n\n$\n\n1.4\n\n \n\n \n\n$\n\n2.7\n\n \n\n \n\n$\n\n(1.1\n\n)\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n3.0\n\n \n\nInventory obsolescence reserves\n\n \n\n$\n\n25.9\n\n \n\n \n\n$\n\n20.4\n\n \n\n \n\n$\n\n(17.8\n\n)\n\n \n\n$\n\n0.4\n\n \n\n \n\n$\n\n28.9\n\n \n\nDeferred tax valuation allowance\n\n \n\n$\n\n5.8\n\n \n\n \n\n$\n\n14.9\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n20.7\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFiscal Year Ended April 27, 2024 (52 Weeks)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAllowance for uncollectible accounts\n\n \n\n$\n\n1.3\n\n \n\n \n\n$\n\n0.3\n\n \n\n \n\n$\n\n(0.2\n\n)\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1.4\n\n \n\nInventory obsolescence reserves\n\n \n\n$\n\n20.8\n\n \n\n \n\n$\n\n10.4\n\n \n\n \n\n$\n\n(5.7\n\n)\n\n \n\n$\n\n0.4\n\n \n\n \n\n$\n\n25.9\n\n \n\nDeferred tax valuation allowance\n\n \n\n$\n\n6.8\n\n \n\n \n\n$\n\n(1.0\n\n)\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n5.8\n\n \n\n \n\n \n\nF-40"}