Stockholders' Equity

3 Months Ended

Jul. 31, 2018

Stockholders’ Equity

Stockholders’ Equity

7. Stockholders’ Equity

Accumulated Other Comprehensive Income (Loss)

The following table sets forth the changes to accumulated other comprehensive income (loss), net of tax, by component for the three months ended July 31, 2018:

	Accumulated
	Other
	Comprehensive
	Income (Loss)
	(in thousands)
Accumulated other comprehensive income as of April 30, 2018	$	441
Foreign currency translation adjustments		(3,791)
Other comprehensive loss on interest rate cap		(237)
Reclassification to earnings from accumulated other comprehensive income for interest rate cap		350
Accumulated other comprehensive loss as of July 31, 2018	$	(3,237)

Exchangeable Shares

In connection with the acquisition of Titan on June 1, 2018, the Company issued 1.1 million Exchangeable Shares. The Exchangeable Shares were issued by an indirect wholly-owned subsidiary of the Company. The Exchangeable Shares rank senior to the Company’s common stock with respect to dividend rights and rights on liquidation, dissolution and winding-up. The holders of the Exchangeable Shares are entitled to receive dividends or distributions that are equal to any dividends or distributions on the Company’s common stock. The holders of the Exchangeable Shares do not have voting rights.

The Exchangeable Shares contain rights that allow the holders to exchange their Exchangeable Shares for GMS common stock at any time on a one-for-one basis. If converted, the holders are prevented from transferring such GMS common stock for one year from the Titan acquisition date. The Exchangeable Shares also contain rights that allow the Company, through its indirect wholly-owned subsidiary, to convert the Exchangeable Shares into GMS common stock on or after the fifth anniversary of the initial issuance of the Exchangeable Shares or upon certain events, as defined in the agreement.