NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands, except per share data)
(unaudited)
Note 1. Basis of Presentation
Daktronics, Inc. and its subsidiaries (the “Company”, “Daktronics”, “we”, “our”, or “us”) are the world's industry leader in designing and manufacturing electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial and transportation applications.
In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions affecting the reported amounts therein. Due to the inherent uncertainty involved in making estimates, actual results in future periods may differ from those estimates.
Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The balance sheet at May 1, 2021, has been derived from the audited financial statements at that date, but it does not include all the information and disclosures required by GAAP for complete financial statements. These financial statements should be read in conjunction with our financial statements and notes thereto for the year ended May 1, 2021, which are contained in our Annual Report on Form 10-K previously filed with the Securities and Exchange Commission ("SEC"). The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year.
Daktronics, Inc. operates on a 52- or 53-week fiscal year, with our fiscal year ending on the Saturday closest to April 30 of each year. When April 30 falls on a Wednesday, the fiscal year ends on the preceding Saturday. Within each fiscal year, each quarter is comprised of 13-week periods following the beginning of each fiscal year. In each 53-week year, an additional week is added to the first quarter, and each of the last three quarters is comprised of a 13-week period. The three months ended July 31, 2021 and August 1, 2020, contained operating results for 13 weeks.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the totals of the same amounts shown in the condensed consolidated statements of cash flows. Restricted cash consists of cash and cash equivalents held in bank deposit accounts to secure issuances of foreign bank guarantees.
|
|
July 31,
|
|
|
August 1,
|
|
|
|
2021
|
|
|
2020
|
|
Cash and cash equivalents
|
|
$
|
74,658
|
|
|
$
|
44,609
|
|
Restricted cash
|
|
|
2,541
|
|
|
|
96
|
|
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows
|
|
$
|
77,199
|
|
|
$
|
44,705
|
|
Other Business Developments - Coronavirus Pandemic
During fiscal 2021, the global spread of the coronavirus pandemic ("COVID-19") and restrictions impacted our business and created significant volatility, uncertainty and global economic disruption. We took proactive steps to solidify our financial position and mitigate any adverse consequences. Our orders and sales decline, in fiscal 2021, indicate the impacts of the pandemic. To align our expenses to the change in the market, we reduced investments in capital assets, reduced executive pay and board member compensation for fiscal 2021, and instituted initiatives to reduce other costs in the business. On April 1, 2020, our board of directors voted to suspend stock repurchases under our share repurchase program and to suspend dividends for the foreseeable future. In addition, throughout fiscal 2021, we temporarily furloughed employees to manage our cost structure to align with decreased demand.
A special voluntary retirement and voluntary exit incentive program ("Offering") and a reduction in force ("RIF") were instituted during the first quarter of fiscal 2021 to adjust our capacity and reduce on-going expenses due to the reduced revenue and uncertainties created by the COVID-19 pandemic. During the first quarter of fiscal 2021, 60 employees agreed to participate in the Offering and completed employment. The approximate cost of this Offering was $931. Under the RIF, employment was terminated with 108 employees with severance totaling $1,426.
We received governmental wage subsidies from various governmental programs related to COVID implications of $77 and $812 during the three months ended July 31, 2021 and August 1, 2020, respectively and recorded as a reduction of compensation expense, which is mostly included in the "Costs of sales" line item in our condensed consolidated statements of operations. We also have elected to defer payments of the employer portion of social security taxes during the payroll tax deferral period, which ended on December 31, 2020. As of July 31, 2021 the total amount of such deferral was $5,122, which is included in the "Accrued expenses" and in the "Other long-term obligations" line items in our condensed consolidated balance sheet. Per the terms of the deferral program, 50 percent of the deferred amount is due on December 31, 2021 with the remaining 50 percent due on December 31, 2022.
We continue to monitor guidance from international and domestic authorities, regarding the COVID-19 pandemic and may take additional actions based on their requirements and recommendations. Since late fiscal 2021, order and quoting activities have increased creating a strong backlog and positive outlook; however, there is no assurance that this trend will continue in future quarters. Supply chain disruptions continue to emerge as a result of several factors including - the pandemic, shipping container shortages, and the changes in global demand. Specifically, we are impacted by the global shortage of semiconductors and related electronic components, other materials needed for production, and freight availability. We expect headwinds in material, labor, freight availability and inflation as the world economies recover, which may cause volatility in our revenue cycles and production costs. While we cannot predict the length or severity of these conditions, it is reasonably possible they will continue to have some impact on our operations during fiscal 2022.
Recent Accounting Pronouncements
There have been no material changes to our significant accounting policies and estimates as described in our Annual Report on Form 10-K for the fiscal year ended May 1, 2021.
Accounting Standards Adopted
There are no significant Accounting Standard Updates ("ASU's") issued that were adopted in the three-months ended July 31, 2021.
Accounting Standards Not Yet Adopted
There are no significant ASU's issued not yet adopted as of July 31, 2021.
Note 2. Investments in Affiliates
The aggregate amount of investments accounted for under the equity method was $19,141 and $19,887 at July 31, 2021 and May 1, 2021, respectively. Our proportional share of the respective affiliates' earnings or losses is included in the "Other (expense) income, net" line item in our condensed consolidated statements of operations. For the three months ended July 31, 2021 and August 1, 2020, our share of the losses of our affiliates was $746 and $529, respectively. We purchased services for research and development activities from our equity method investments. The total of these related party transactions was $470 for the three months ended July 31, 2021, which was included in the "Product design and development" line item in in our condensed consolidated statement of operations and $275 of this remains unpaid and is included in the "Accounts payable" line item in our condensed consolidated balance sheet. There were no related party transactions for the three months ended August 1, 2020.
Note 3. Earnings Per Share ("EPS")
The following is a reconciliation of the net income and common share amounts used in the calculation of basic and diluted EPS for the three months ended July 31, 2021 and August 1, 2020:
|
|
Net income
|
|
|
Shares
|
|
|
Per share income
|
|
For the three months ended July 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
3,685
|
|
|
|
45,139
|
|
|
$
|
0.08
|
|
Dilution associated with stock compensation plans
|
|
|
—
|
|
|
|
280
|
|
|
|
—
|
|
Diluted earnings per share
|
|
$
|
3,685
|
|
|
|
45,419
|
|
|
$
|
0.08
|
|
For the three months ended August 1, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
7,467
|
|
|
|
44,654
|
|
|
$
|
0.17
|
|
Dilution associated with stock compensation plans
|
|
|
—
|
|
|
|
97
|
|
|
|
—
|
|
Diluted earnings per share
|
|
$
|
7,467
|
|
|
|
44,751
|
|
|
$
|
0.17
|
|
Options outstanding to purchase 1,810 shares of common stock with a weighted average exercise price of $9.52 for the three months ended July 31, 2021 and 2,119 shares of common stock with a weighted average exercise price of $9.96 for the three months ended August 1, 2020 were not included in the computation of diluted earnings per share because the effects would be anti-dilutive.
Note 4. Revenue Recognition
Disaggregation of revenue
The following table presents our disaggregation of revenue by segments:
|
|
Three Months Ended July 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
High School
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
Live Events
|
|
|
Park and Recreation
|
|
|
Transportation
|
|
|
International
|
|
|
Total
|
|
Type of performance obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unique configuration
|
|
$
|
3,587
|
|
|
$
|
41,508
|
|
|
$
|
4,166
|
|
|
$
|
6,541
|
|
|
$
|
5,883
|
|
|
$
|
61,685
|
|
Limited configuration
|
|
|
25,907
|
|
|
|
5,842
|
|
|
|
22,957
|
|
|
|
5,352
|
|
|
|
11,545
|
|
|
|
71,603
|
|
Service and other
|
|
|
3,287
|
|
|
|
5,037
|
|
|
|
771
|
|
|
|
665
|
|
|
|
1,684
|
|
|
|
11,444
|
|
|
|
$
|
32,781
|
|
|
$
|
52,387
|
|
|
$
|
27,894
|
|
|
$
|
12,558
|
|
|
$
|
19,112
|
|
|
$
|
144,732
|
|
Timing of revenue recognition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goods/services transferred at a point in time
|
|
$
|
26,379
|
|
|
$
|
6,829
|
|
|
$
|
21,941
|
|
|
$
|
5,571
|
|
|
$
|
12,019
|
|
|
$
|
72,739
|
|
Goods/services transferred over time
|
|
|
6,402
|
|
|
|
45,558
|
|
|
|
5,953
|
|
|
|
6,987
|
|
|
|
7,093
|
|
|
|
71,993
|
|
|
|
$
|
32,781
|
|
|
$
|
52,387
|
|
|
$
|
27,894
|
|
|
$
|
12,558
|
|
|
$
|
19,112
|
|
|
$
|
144,732
|
|
|
|
Three Months Ended August 1, 2020
|
|
|
|
|
|
|
|
|
|
|
|
High School
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
Live Events
|
|
|
Park and Recreation
|
|
|
Transportation
|
|
|
International
|
|
|
Total
|
|
Type of performance obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unique configuration
|
|
$
|
8,727
|
|
|
$
|
41,975
|
|
|
$
|
7,668
|
|
|
$
|
7,724
|
|
|
$
|
4,012
|
|
|
$
|
70,106
|
|
Limited configuration
|
|
|
22,555
|
|
|
|
5,419
|
|
|
|
20,688
|
|
|
|
6,266
|
|
|
|
8,653
|
|
|
|
63,581
|
|
Service and other
|
|
|
3,224
|
|
|
|
4,080
|
|
|
|
587
|
|
|
|
508
|
|
|
|
1,558
|
|
|
|
9,957
|
|
|
|
$
|
34,506
|
|
|
$
|
51,474
|
|
|
$
|
28,943
|
|
|
$
|
14,498
|
|
|
$
|
14,223
|
|
|
$
|
143,644
|
|
Timing of revenue recognition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goods/services transferred at a point in time
|
|
$
|
22,892
|
|
|
$
|
6,214
|
|
|
$
|
19,368
|
|
|
$
|
6,374
|
|
|
$
|
9,179
|
|
|
$
|
64,027
|
|
Goods/services transferred over time
|
|
|
11,614
|
|
|
|
45,260
|
|
|
|
9,575
|
|
|
|
8,124
|
|
|
|
5,044
|
|
|
|
79,617
|
|
|
|
$
|
34,506
|
|
|
$
|
51,474
|
|
|
$
|
28,943
|
|
|
$
|
14,498
|
|
|
$
|
14,223
|
|
|
$
|
143,644
|
|
See "Note 5. Segment Reporting" for a disaggregation of revenue by geography.
Contract balances
Contract assets represent revenue recognized in excess of amounts billed and include unbilled receivables. Unbilled receivables, which represent an unconditional right to payment subject only to the passage of time, are reclassified to accounts receivable when they are billed according to the contract terms. Contract liabilities represent amounts billed to the customers in excess of revenue recognized to date.
The following table reflects the changes in our contract assets and liabilities:
|
|
July 31,
|
|
|
May 1,
|
|
|
Dollar
|
|
|
Percent
|
|
|
|
2021
|
|
|
2021
|
|
|
Change
|
|
|
Change
|
|
Contract assets
|
|
$
|
38,133
|
|
|
$
|
32,799
|
|
|
$
|
5,334
|
|
|
|
16.3
|
%
|
Contract liabilities - current
|
|
|
67,507
|
|
|
|
64,495
|
|
|
|
3,012
|
|
|
|
4.7
|
%
|
Contract liabilities - noncurrent
|
|
|
10,586
|
|
|
|
10,720
|
|
|
|
(134
|
)
|
|
|
(1.3
|
)%
|
The changes in our contract assets and contract liabilities from May 1, 2021 to July 31, 2021 were due to the timing of billing schedules and revenue recognition, which can vary significantly depending on the contractual payment terms and the seasonality of the sports markets. We had no material impairments of contract assets for the three months ended July 31, 2021.
For service-type warranty contracts, we allocate revenue to this performance obligation, recognize the revenue over time, and recognize costs as incurred. Earned and unearned revenues for these contracts are included in the "Contract assets" and "Contract liabilities" line items in our condensed consolidated balance sheets. Changes in unearned service-type warranty contracts, net were as follows:
|
|
July 31,
|
|
|
|
2021
|
|
Balance at beginning of period
|
|
$
|
24,590
|
|
New contracts sold
|
|
|
10,165
|
|
Less: reductions for revenue recognized
|
|
|
(8,669
|
)
|
Foreign currency translation and other
|
|
|
(86
|
)
|
Balance at end of period
|
|
$
|
26,000
|
|
As of July 31, 2021 and May 1, 2021, our contracts in progress that were identified as loss contracts were immaterial. For these contracts, the provision for losses is included in the "Accrued expenses" line item in our condensed consolidated balance sheets.
During the three months ended July 31, 2021, we recognized revenue of $31,587 related to our contract liabilities as of May 1, 2021.
Remaining performance obligations
As of July 31, 2021, the aggregate amount of the transaction price allocated to the remaining performance obligations was $339,192. We expect approximately $297,849 of our remaining performance obligations to be recognized over the next 12 months, with the remainder recognized thereafter. Remaining performance obligations related to product and service agreements at July 31, 2021 are $285,322 and $53,870, respectively. Although remaining performance obligations reflect business that is considered to be legally binding, cancellations, deferrals or scope adjustments may occur. Any known project cancellations, revisions to project scope and cost, foreign currency exchange fluctuations and project deferrals are reflected or excluded in the remaining performance obligation balance, as appropriate.
Note 5. Segment Reporting
The following table sets forth certain financial information for each of our five reporting segments for the periods indicated:
|
|
Three Months Ended
|
|
|
|
July 31,
|
|
|
August 1,
|
|
|
|
2021
|
|
|
2020
|
|
Net sales:
|
|
|
|
|
|
|
|
|
Commercial
|
|
$
|
32,781
|
|
|
$
|
34,506
|
|
Live Events
|
|
|
52,387
|
|
|
|
51,474
|
|
High School Park and Recreation
|
|
|
27,894
|
|
|
|
28,943
|
|
Transportation
|
|
|
12,558
|
|
|
|
14,498
|
|
International
|
|
|
19,112
|
|
|
|
14,223
|
|
Total company net sales
|
|
|
144,732
|
|
|
|
143,644
|
|
|
|
|
|
|
|
|
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
7,178
|
|
|
|
7,742
|
|
Live Events
|
|
|
8,582
|
|
|
|
9,354
|
|
High School Park and Recreation
|
|
|
9,509
|
|
|
|
10,476
|
|
Transportation
|
|
|
3,751
|
|
|
|
5,143
|
|
International
|
|
|
3,168
|
|
|
|
3,046
|
|
|
|
|
32,188
|
|
|
|
35,761
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Selling
|
|
|
11,795
|
|
|
|
11,556
|
|
General and administrative
|
|
|
7,571
|
|
|
|
7,124
|
|
Product design and development
|
|
|
7,162
|
|
|
|
7,532
|
|
|
|
|
26,528
|
|
|
|
26,212
|
|
Operating income
|
|
|
5,660
|
|
|
|
9,549
|
|
|
|
|
|
|
|
|
|
|
Nonoperating income (expense):
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
153
|
|
|
|
85
|
|
Interest expense
|
|
|
(16
|
)
|
|
|
(73
|
)
|
Other (expense) income, net
|
|
|
(868
|
)
|
|
|
(627
|
)
|
Income before income taxes
|
|
$
|
4,929
|
|
|
$
|
8,934
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization:
|
|
|
|
|
|
|
|
|
Commercial
|
|
$
|
702
|
|
|
$
|
772
|
|
Live Events
|
|
|
1,337
|
|
|
|
1,451
|
|
High School Park and Recreation
|
|
|
438
|
|
|
|
496
|
|
Transportation
|
|
|
139
|
|
|
|
237
|
|
International
|
|
|
726
|
|
|
|
693
|
|
Unallocated corporate depreciation
|
|
|
710
|
|
|
|
688
|
|
|
|
$
|
4,052
|
|
|
$
|
4,337
|
|
No single geographic area comprises a material amount of our net sales or property and equipment, net of accumulated depreciation, other than the United States. The following table presents information about net sales and property and equipment, net of accumulated depreciation, in the United States and elsewhere:
|
|
Three Months Ended
|
|
|
|
July 31,
|
|
|
August 1,
|
|
|
|
2021
|
|
|
2020
|
|
Net sales:
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
123,482
|
|
|
$
|
128,069
|
|
Outside United States
|
|
|
21,250
|
|
|
|
15,575
|
|
|
|
$
|
144,732
|
|
|
$
|
143,644
|
|
|
|
July 31,
|
|
|
May 1,
|
|
|
|
2021
|
|
|
2021
|
|
Property and equipment, net of accumulated depreciation:
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
48,450
|
|
|
$
|
50,130
|
|
Outside United States
|
|
|
7,758
|
|
|
|
8,552
|
|
|
|
$
|
56,208
|
|
|
$
|
58,682
|
|
We have numerous customers worldwide for sales of our products and services, and no customer accounted for 10 percent or more of net sales; therefore, we are not economically dependent on a limited number of customers for the sale of our products and services.
We have numerous raw material and component suppliers, and no supplier accounts for 10 percent or more of our cost of sales; however, we have a number of single-source suppliers that could limit our supply or cause delays in obtaining raw material and components needed in manufacturing.
Note 6. Goodwill
The changes in the carrying amount of goodwill related to each reportable segment for the three months ended July 31, 2021 were as follows:
|
|
Live Events
|
|
|
Commercial
|
|
|
Transportation
|
|
|
International
|
|
|
Total
|
|
Balance as of May 1, 2021
|
|
$
|
2,313
|
|
|
$
|
3,464
|
|
|
$
|
84
|
|
|
$
|
2,553
|
|
|
$
|
8,414
|
|
Foreign currency translation
|
|
|
(6
|
)
|
|
|
(39
|
)
|
|
|
(5
|
)
|
|
|
(53
|
)
|
|
|
(103
|
)
|
Balance as of July 31, 2021
|
|
$
|
2,307
|
|
|
$
|
3,425
|
|
|
$
|
79
|
|
|
$
|
2,500
|
|
|
$
|
8,311
|
|
We perform an analysis of goodwill on an annual basis, and it is tested for impairment more frequently if events or changes in circumstances indicate that an asset might be impaired. Our annual analysis is performed during our third quarter of each fiscal year, based on the goodwill amount as of the first business day of our third fiscal quarter. We performed our annual impairment test on November 2, 2020 and concluded no goodwill impairment existed.
Note 7. Financing Agreements
As of July 31, 2021, there were no advances under the loan portion of the line of credit, and the balance of letters of credit outstanding was approximately $8,142. As of July 31, 2021, $26,858 of the credit facility remains in place and available.
We are sometimes required to obtain bank guarantees or other financial instruments for display installations. If we are unable to meet the terms of the arrangement, our customer would draw on the banking arrangement, and the bank would subrogate its loss to Daktronics. As of July 31, 2021, we had $2,514 of such instruments outstanding.
As of July 31, 2021, we were in compliance with all applicable bank loan covenants.
Note 8. Commitments and Contingencies
Litigation: We are a party to legal proceedings and claims which arise during the ordinary course of business. For unresolved legal proceedings or claims, we do not believe there is a reasonable probability that any material loss will be incurred. Accordingly, no material accrual or disclosure of a potential range of loss has been made related to these matters. We do not expect the ultimate liability of these unresolved legal proceedings or claims to have a material effect on our financial position, liquidity or capital resources.
Warranties: Changes in our warranty obligation for the three consisted of the following:
|
|
July 31,
|
|
|
|
2021
|
|
Beginning accrued warranty obligations
|
|
$
|
25,960
|
|
Warranties issued during the period
|
|
|
2,110
|
|
Settlements made during the period
|
|
|
(1,470
|
)
|
Changes in accrued warranty obligations for pre-existing warranties during the period, including expirations
|
|
|
(1,219
|
)
|
Ending accrued warranty obligations
|
|
$
|
25,381
|
|
Performance guarantees: We have entered into standby letters of credit, bank guarantees and surety bonds with financial institutions relating to the guarantee of our future performance on contracts, primarily construction-type contracts. As of July 31, 2021, we had outstanding letters of credit, bank guarantees and surety bonds in the amount of $8,142, $2,514 and $50,336, respectively. Performance guarantees are issued to certain customers to guarantee the operation and installation of the equipment and our ability to complete a contract. These performance guarantees have various terms but are generally one year. We enter into written agreements with our customers, and those agreements often contain indemnification provisions that require us to make the customer whole if certain acts or omissions by us cause the customer financial loss. We make efforts to negotiate reasonable caps and limitations on the recovery of such damages. As of July 31, 2021, we were not aware of any indemnification claim from a customer.
Note 9. Income Taxes
The provision for income taxes during interim reporting periods is calculated by applying an estimate of the annual effective tax rate to “ordinary” income or loss for the reporting period, adjusted for discrete items. Due to various factors, including our estimate of annual income, our effective tax rate is subject to fluctuation.
Our effective tax rate for the three months ended July 31, 2021 was 25.2 percent as compared to 16.4 percent for the three months ended August 1, 2020. The difference in rates are primarily driven by estimated tax credits and other permanent items proportionate to estimated pre-tax earnings in fiscal 2022 compared to similar estimated value of tax credits and other permanent items proportionate to lower estimated pre-tax earnings in fiscal 2021.
We operate both domestically and internationally and as of July 31, 2021, undistributed earnings of our foreign subsidiaries were considered to be reinvested indefinitely. Additionally, we had $654 of unrecognized tax benefits which would reduce our effective tax rate if recognized.
Note 10. Fair Value Measurement
The following table sets forth by Level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at July 31, 2021 and May 1, 2021 according to the valuation techniques we used to determine their fair values. There have been no transfers of assets or liabilities among the fair value hierarchies presented.
|
|
Fair Value Measurements
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Balance as of July 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
74,658
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
74,658
|
|
Restricted cash
|
|
|
2,541
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,541
|
|
Derivatives - asset position
|
|
|
—
|
|
|
|
46
|
|
|
|
—
|
|
|
|
46
|
|
Derivatives - liability position
|
|
|
—
|
|
|
|
(134
|
)
|
|
|
—
|
|
|
|
(134
|
)
|
|
|
$
|
77,199
|
|
|
$
|
(88
|
)
|
|
$
|
—
|
|
|
$
|
77,111
|
|
Balance as of May 1, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
77,590
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
77,590
|
|
Restricted cash
|
|
|
2,812
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,812
|
|
Derivatives - asset position
|
|
|
—
|
|
|
|
4
|
|
|
|
—
|
|
|
|
4
|
|
Derivatives - liability position
|
|
|
—
|
|
|
|
(261
|
)
|
|
|
—
|
|
|
|
(261
|
)
|
Acquisition-related contingent consideration
|
|
|
—
|
|
|
|
—
|
|
|
|
(363
|
)
|
|
|
(363
|
)
|
|
|
$
|
80,402
|
|
|
$
|
(257
|
)
|
|
$
|
(363
|
)
|
|
$
|
79,782
|
|
A roll forward of the Level 3 contingent liabilities, both short- and long-term, for the three months ended July 31, 2021 is as follows:
Acquisition-related contingent consideration as of May 1, 2021
|
|
$
|
363
|
|
Additions
|
|
|
33
|
|
Settlements
|
|
|
(400
|
)
|
Interest
|
|
|
4
|
|
Acquisition-related contingent consideration as of July 31, 2021
|
|
$
|
—
|
|
There have been no changes in the valuation techniques used by us to value our financial instruments since the end of fiscal 2021. For additional information, see our Annual Report on Form 10-K for the fiscal year ended May 1, 2021 for the methods and assumptions used to estimate the fair value of each class of financial instrument.