10-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________

FORM 10-K

(Mark One)
ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended March 31, 2015
Or
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to

Commission File Number: 001-15491

____________________________________________________________________________

KEMET Corporation

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	57-0923789 (I.R.S. Employer Identification No.)
2835 Kemet Way, Simpsonville, South Carolina (Address of principal executive offices)	29681 (Zip Code)

Registrant's telephone number, including area code: (864) 963-6300

Securities registered pursuant to Section 12(b) of the Act:

(Title of each class)                (Name of Exchange on which registered)

Common Stock, par value $0.01                New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None.

____________________________________________________________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o    No ý

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o    No ý

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ý

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer o Accelerated filer ý Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o    No ý

The aggregate market value of voting common stock held by non-affiliates of the registrant as of September 30, 2014 computed by reference to the closing sale price of the registrant's common stock was approximately $179,098,233.

The number of shares of each class of common stock, $0.01 par value, outstanding as of May 18, 2015 was 45,689,591.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the definitive proxy statement to be delivered to stockholders in connection with the Annual Meeting of Stockholders to be held July 24, 2015 are incorporated by reference into Part III of this report.

Index

ITEM 1.	BUSINESS	4
ITEM 1A.	RISK FACTORS	11
ITEM 1B.	UNRESOLVED STAFF COMMENTS	19
ITEM 2.	PROPERTIES	19
ITEM 3.	LEGAL PROCEEDINGS	20
ITEM 4.	MINE SAFETY DISCLOSURES	21
ITEM 4A.	EXECUTIVE OFFICERS OF THE REGISTRANT	21
ITEM 5.	MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	24
ITEM 6.	SELECTED FINANCIAL DATA	27
ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	28
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	52
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	52
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	53
ITEM 9A.	CONTROLS AND PROCEDURES	53
ITEM 9B.	OTHER INFORMATION	53
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	54
ITEM 11.	EXECUTIVE COMPENSATION	54
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	54
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	54
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES	54
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	55
SIGNATURES		118

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PART I

ITEM 1.    BUSINESS

Background of Company

KEMET Corporation ("we", "us", "our", "KEMET" and the "Company"), a global manufacturer of passive electronic capacitors, became a stand-alone legal entity in 1990 following a management buyout from Union Carbide Corporation ("UCC"). In 1992, we publicly issued shares of our common stock. KEMET first began manufacturing tantalum capacitors in 1958 as a division of UCC and, since then, has expanded its product base to include multilayer ceramic, solid & electrolytic aluminum and film capacitors.

In fiscal year 2012, we acquired Cornell Dubilier Foil, LLC (whose name was subsequently changed to KEMET Foil Manufacturing, LLC ("KEMET Foil") and Niotan Incorporated (whose name was subsequently changed to KEMET Blue Powder Corporation ("Blue Powder") allowing us to vertically integrate certain manufacturing processes within our two segments: our Film and Electrolytic Business Group ("Film and Electrolytic") and our Solid Capacitors Business Group ("Solid Capacitors").

In fiscal year 2013, our subsidiary, KEMET Electronics Corporation ("KEC") acquired a 34% economic interest in NEC TOKIN Corporation ("NEC TOKIN") as calculated based on the number of common shares held by KEC, directly and indirectly, in proportion to the aggregate number of common and preferred shares of NEC TOKIN outstanding as of such date. The Company accounts for its investment in NEC TOKIN using the equity method for a non-consolidated variable interest entity since KEC does not have the power to direct significant activities of NEC TOKIN.

General

We compete in the passive electronic component industry, specifically multilayer ceramic, solid & electrolytic aluminum, tantalum and film capacitors. Product offerings include surface mount which are attached directly to the circuit board without lead wires; leaded capacitors, which are attached to the circuit board using lead wires; and, chassis-mount and other pin-through-hole board-mount capacitors, which utilize attachment methods such as screw terminal and snap-in. Capacitors are electronic components that store, filter, and regulate electrical energy and current flow. As an essential passive component used in most circuit boards, capacitors are typically used for coupling, decoupling, filtering, oscillating and wave shaping and are used in communication systems, data processing equipment, personal computers, cellular phones, automotive electronic systems, defense and aerospace systems, consumer electronics, power management systems and many other electronic devices and systems (basically anything that plugs in or has a battery).

We manufacture a broad line of capacitors in many different sizes and configurations using a variety of raw materials. Our product line consists of nearly 5 million distinct part configurations distinguished by various attributes, such as dielectric (or insulating) material, configuration, encapsulation, capacitance (at various tolerances), voltage, performance characteristics and packaging. Most of our customers have multiple capacitance requirements, often within each of their products. Our broad product offering allows us to meet the majority of those needs independent of application and end use.

We believe the long-term demand for the various types of capacitors we offer will grow on a regional and global basis due to a variety of factors, including increasing demand for and complexity of electronic products, growing demand for technology in emerging markets and the ongoing development of new solutions for energy generation and conservation. Our customer base includes most of the world's major electronics original equipment manufacturers ("OEMs") (including Alcatel-Lucent USA Inc., Bosch Group, Cisco Systems, Inc., Continental AG, Dell Inc., Hewlett-Packard Company, International Business Machines Corporation, Intel Corporation, Motorola, Inc., Nokia Corporation, and TRW Automotive), electronics manufacturing services providers ("EMSs") (including Celestica Inc., Flextronics International LTD, Jabil Circuit, Inc. and Sanmina-SCI Corporation) and distributors (including TTI, Inc., Arrow Electronics, Inc. and Avnet, Inc.).

Solid Capacitors products are commonly used in conjunction with integrated circuits, and the same circuit may, and frequently does, contain both ceramic and tantalum capacitors. Tantalum capacitors are a popular choice because of their ability for high capacitance in a small volume package. While ceramic capacitors are more cost-effective at lower capacitance values, tantalum capacitors are more cost-effective at higher capacitance values while solid aluminum capacitors can be more effective in special applications. Film, paper and aluminum electrolytic capacitors can be used to support integrated circuits, but also are used in the field of power electronics to provide energy for applications such as motor starts, power conditioning, electromagnetic interference filtering safety and inverters. Capacitors account for the largest market within the passive component product grouping.

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Our Industry

We compete with others that manufacture and distribute capacitors both domestically and globally and our success in the market is influenced by many factors, including price, availability, engineering specifications, quality, breadth of offering, performance characteristics, customer service and geographic location of our manufacturing sites. As in all manufacturing industries, there is ongoing pressure on average unit selling prices for capacitors. To help mitigate this effect, KEMET as well as many of our larger competitors have relocated their manufacturing operations to low cost regions and locations in closer proximity to our respective customers.

According to a March 2015 report entitled "Passive Electronic Components: World Market Outlook: 2015-2020" by Paumanok Publications, Inc. ("Paumanok"), a market research firm concentrating on the passive components industry, the global capacitor market in fiscal year 2015 (fiscal year ending March 2015) was estimated to be $18.2 billion in revenues and 1.76 trillion units. According to the Paumanok report, the global capacitor market is expected to improve substantially and achieve revenue and unit volume increases of 14% and 19%, respectively, by fiscal year 2020. According to Paumanok, the forecast of the capacitor industry for fiscal year 2015 and the expected growth to fiscal year 2020 are as follows (amounts in billions):

	Fiscal Year 2015		Fiscal Year 2020
Tantalum	$	1.8	$	2.0
Ceramic	9.9		11.8
Aluminum	3.9		4.2
Paper and plastic film	1.9		2.0
Other	0.7		0.7
	$	18.2	$	20.7

Because capacitors are a fundamental component of electronic circuits, demand for capacitors tends to reflect the general demand for electronic products, as well as integrated circuits, which, though cyclical, continues to grow. We believe that growth in the electronics market and the resulting growth in demand for capacitors will be driven primarily by a number of recent trends which include:

• the development of new products and applications, such as alternative and renewable energy systems, hybrid transportation systems, electronic controls for engines and industrial machinery, smart phones and mobile personal computing devices;

• the increase in the electronic content of existing products, such as home appliances, medical equipment and automobiles;

• consumer desire for mobility and connectivity; and

• the enhanced functionality, complexity and convergence of electronic devices that use state-of-the-art microprocessors.

Markets and Customers

Our products are sold to a variety of OEMs in a broad range of industries including the computer, communications, automotive, military, consumer, industrial and aerospace industries. We also sell products to EMS providers, which also serve OEMs in these industries. Electronics distributors are an important channel of distribution in the electronics industry and represent the largest channel through which we sell our capacitors. One electronics distributor, accounted for over 10% of our net sales in fiscal years 2015, 2014 and 2013. If our relationship with this customer were to terminate, we would need to determine alternative means of delivering our products to the end-customers served by them. Our top 50 customers accounted for 86.1% of our net sales during fiscal year 2015.

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The following table presents an overview of the diverse industries that incorporate our capacitors into their products and the general nature of those products.

Industry	Products
Automotive	Adaptive cruise control, High intensity discharge lamp, Light emitting diode electronic modules, Lane departure warning, Rearview camera systems, Audio systems, Tire pressure monitoring, Power train electronics, Instrumentation, Airbag systems, Anti-lock braking and stabilization systems, Hybrid and electric drive vehicles, Electronic engine control modules, Driver comfort controls, and Security systems
Communications	Smart phones, Telephones, Switching equipment, Relays, Base stations, and Wireless infrastructure
Computer-related	Personal computers (laptops, tablets, netbooks), Workstations, Servers, Mainframes, Computer peripheral equipment, Power supplies, Disk drives, Solid state drives, Printers, and Local area networks
Industrial	Electronic controls, Measurement equipment, Instrumentation, Solar and wind energy generation, Down-hole drilling and Medical electronics
Consumer	Digital media devices, Game consoles, Televisions and Global positioning systems
Military/Aerospace	Avionics, Radar, Guidance systems, and Satellite communications
Alternative Energy	Wind generation systems, Solar generation systems, Geothermal generation systems, Tidal generation Systems and Electric drive vehicles

We produce a small percentage of capacitors under military specification standards sold for both military and commercial uses. We do not sell any capacitors directly to the United States government. Certain of our customers purchase capacitors for products in the military and aerospace industries.

It is impracticable to report revenues from external customers for each of the above noted products primarily because approximately 44.5% of our external sales were to electronics distributors for fiscal year 2015.

KEMET in the United States

Our corporate headquarters is located near Greenville, South Carolina.

Commodity manufacturing previously located in the United States has been substantially relocated to our lower-cost manufacturing facilities in Mexico, China and Europe. Production that remains in the United States focuses primarily on early-stage manufacturing of new products and other specialty products for which customers are predominantly located in North America.

On June 13, 2011, we completed the acquisition of KEMET Foil, a Tennessee based manufacturer of etched foils utilized as a core component in the manufacture of electrolytic capacitors. On February 21, 2012, we completed the acquisition of all of the outstanding shares of Blue Powder, a leading manufacturer of tantalum powders. Blue Powder had been a significant supplier of tantalum powder to KEMET for several years. Blue Powder's principal operating location is in Carson City, Nevada.

To accelerate the pace of innovations, KEMET maintains an Innovation Center for Solid Capacitors near Greenville, South Carolina. The primary objectives of the KEMET Innovation Center are to ensure the flow of new product platforms, material sets, and processes that are expected to keep us at the forefront of our customers' product designs, while enabling these products to be transferred rapidly to the most appropriate KEMET manufacturing location in the world for low-cost, high-volume production.

KEMET in Mexico

We believe our operations in Mexico are among the most cost efficient in the world, and they will continue to be our primary production facilities supporting North American and European customers for Solid Capacitors. One of the strengths of KEMET Mexico is that it is a local operation, including local management and workers. These facilities are responsible for maintaining KEMET's tradition of excellence in quality, service, and delivery, while driving costs down. The facilities in Victoria and Matamoros are focused primarily on tantalum capacitors, while the facilities in Monterrey are focused on ceramic capacitors.

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KEMET in Asia Pacific

We have a well-established manufacturing, sales and logistics network in Asia to support our customers' Asian operations. We currently manufacture tantalum and aluminum polymer and Electrolytic products in China. The vision for KEMET China is to be a local operation, with local management and workers, to help achieve our objective of being a global company. These facilities are responsible for maintaining our tradition of excellence in quality, service, and delivery, while accelerating cost-reduction efforts and supporting efforts to grow our customer base in Asia.

KEMET in Europe

We currently have one or more manufacturing locations in each of the following countries: Bulgaria, Finland, Germany, Italy, Macedonia, Portugal, and Sweden. In addition, we operate product innovation centers in the United Kingdom, Italy, Germany and Sweden. We continue to maintain and enhance our strong European sales and customer service infrastructure, allowing us to continue to meet the local preferences of European customers who remain an important focus for KEMET.

Global Sales and Logistics

KEMET serves the needs of our global customer base through three geographic regions: North America and South America ("Americas"), Europe, the Middle East and Africa ("EMEA") and Asia and the Pacific Rim ("APAC"). The Americas sales staff is organized into four areas supported by regional offices. The EMEA sales staff is organized into three areas, also supported by regional offices. The APAC sales staff is organized into three areas, and is also supported by regional offices. We also have independent sales representatives located in seven countries worldwide including: Brazil, Israel, Canada, and the United States.

In our major markets, we market and sell our products primarily through a direct sales force. With a global sales organization that is customer-focused, our direct sales personnel from around the world serve on KEMET Global Account Teams committed to serving any customer location in the world with a dedicated KEMET representative. The traditional sales team is supported by regional Field Application Engineers who are experts in electronic engineering and market all of KEMET's products by assisting customers with the resolution of capacitor application issues. We believe our direct sales force creates a distinct advantage in the marketplace by enabling us to establish and maintain strong relationships with our customers to efficiently process simple repeat business as well as to consult with customers on new and technically complex custom applications. In addition, where appropriate, we use independent commissioned representatives. This approach requires a blend of accountability and responsibility for specific customer locations, guided by an overall account strategy for each customer.

Electronics distributors are an important distribution channel in the electronics industry and accounted for 44%, 45%, and 46% of our net sales in fiscal years 2015, 2014 and 2013, respectively. A portion of our net sales to distributors are made under agreements allowing certain rights of return and price protection on unsold merchandise held by distributors. In addition, our distributor policy includes inventory price protection and "ship-from-stock and debit" ("SFSD") programs common in the industry.

Sales by Geography

In fiscal years 2015 and 2014, net sales by region were as follows (dollars in millions):

	Fiscal Year 2015					Fiscal Year 2014
	Net Sales		% of Total			Net Sales		% of Total
Americas	$	260.0	32	%	Americas	$	262.9	31	%
APAC	281.8		34	%	APAC	282.3		34	%
EMEA	281.4		34	%	EMEA	288.5		35	%
Total	$	823.2			Total	$	833.7

We believe our regional balance of revenues is a benefit to our business. The geographic diversity of our net sales diminishes the impact of regional sales decreases caused by various holiday seasons. While sales in the Americas are the lowest of the three regions, the Americas remains the leading region in the world for product design in activity where engagement with OEM design engineers determines product placement independent of the region of the world where the final product is manufactured.

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Inventory and Backlog

Our customers often encounter uncertain or changing demand for their products. They historically order products from us based on their forecast and if demand does not meet their forecasts, they may cancel or reschedule the shipments included in our backlog, in many instances without penalty. Additionally, many of our customers have started to require shorter lead times and "just in time" delivery. Consequently, the twelve month order backlog is not a meaningful trend indicator for us.

Although we manufacture and inventory standardized products, a portion of our products are produced to meet specific customer requirements. Cancellations by customers of orders already in production could have an impact on inventories. Historically, however, cancellations have not been significant.

Competition

The capacitor industry is characterized by, among other factors, a long-term trend toward lower prices, low transportation costs, and few import barriers. Competitive factors that influence the market for our products include: product quality, customer service, technical innovation, pricing, and timely delivery. We believe we compete favorably on the basis of each of these factors.

Our major global competitors include AVX Corporation, Matsushita Electric Industrial Company, Ltd. (Panasonic), Murata Manufacturing Co., Ltd., Sanyo Electric Co., Ltd., Samsung, Taiyo Yuden Co., Ltd., TDK-EPC Corporation, WIMA GmbH & Co., KG and Vishay Intertechnology, Inc. ("Vishay").

Raw Materials

The principal raw materials used in the manufacture of our products are tantalum powder, tantalum ore, palladium, aluminum and silver. These materials are considered commodities and are subject to price volatility. Additionally, any delays in obtaining raw materials for our products could hinder our ability to manufacture our products, negatively impacting our competitive position and our relationships with our customers.

Tantalum is mined principally in the Democratic Republic of Congo, Australia, Brazil, Canada and Mozambique. As a result of our tantalum vertical integration program which began in fiscal year 2012, we have reduced our exposure to price volatility and supply uncertainty in the tantalum supply chain. A majority of our tantalum needs are now met through our direct sourcing of conflict free tantalum ore or tantalum scrap reclaim, which is then processed into the intermediate product potassium heptafluorotantalate (commonly known as K-salt) at our own facility in Mexico, before final processing into tantalum powder at Blue Powder. Price increases for tantalum ore, or for the remaining tantalum powder that we source from third parties, could impact our financial performance as we may not be able to pass all such price increases on to our customers.

Palladium is a precious metal used in the manufacture of multilayer ceramic capacitors ("MLCC") and is mined primarily in Russia and South Africa. We continue to pursue ways to reduce palladium usage in ceramic capacitors in order to minimize the price risk. The amount of palladium that we require has generally been available in sufficient quantities; however, the price of palladium is driven by the market which has shown significant price fluctuations. For instance, in fiscal year 2015 the price of palladium fluctuated between $726 and $908 per troy ounce. Price increases and the possibility of our inability to pass such increases on to our customers could have an adverse effect on profitability.

Silver and aluminum have generally been available in sufficient quantities, and we believe there are a sufficient number of suppliers from which we can purchase our requirements. An increase in the price of silver and aluminum that we are unable to pass on to our customers, could, however, have an adverse effect on our profitability.

Patents and Trademarks

As of March 31, 2015, we held the following number of patents and trademarks:

	Patents	Trademarks
United States	127	7
Foreign	47	124

We believe the success of our business is not materially dependent on the existence or duration of any individual patent, license, or trademark other than the trademarks "KEMET" and "KEMET Charged". Our engineering and research and development staffs have developed and continue to develop proprietary manufacturing processes and equipment designed to enhance our manufacturing facilities and reduce costs.

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Research and Development

Research and development expenses were $25.8 million, $24.5 million and $26.9 million for fiscal years 2015, 2014 and 2013, respectively. These amounts include expenditures for product development and the design and development of machinery and equipment for new processes and cost reduction efforts. We continue to invest in new technology to improve product performance and production efficiencies.

Segment Reporting

We are organized into two business groups: Solid Capacitors and Film and Electrolytic. Each business group is responsible for the operations of certain manufacturing sites as well as all related research and development efforts. The sales, marketing and corporate functions are shared by each of the business groups. See Note 6, "Segment and Geographic Information" to our consolidated financial statements.

Solid Capacitors Business Group

Solid Capacitors operates nine capacitor manufacturing sites in United States, Mexico and China and a product innovation center in the United States and primarily produces tantalum, aluminum, polymer and ceramic capacitors which are sold globally. Solid Capacitors also produces tantalum powder used in the production of tantalum capacitors. Solid Capacitors employs over 6,550 employees worldwide. For fiscal years 2015, 2014 and 2013, Solid Capacitors had consolidated net sales of $621.3 million, $626.5 million and $622.3 million, respectively.

We continue to make significant investments in tantalum production within Solid Capacitors and, based on net sales, we believe we are the largest tantalum capacitor manufacturer in the world. We believe we have one of the broadest lines of tantalum product offerings and are one of the leaders in the growing market for high-frequency surface mount tantalum and aluminum polymer capacitors. On February 21, 2012, we acquired Blue Powder which we believe is the largest production facility for tantalum powder in the western hemisphere. During fiscal year 2015, we continued our restructuring plan and took actions to reduce headcount by approximately 500 to improve the operating performance within Solid Capacitors. Additional severance costs related to this headcount reduction of $0.6 million are expected to be recognized in the first half of fiscal year 2016.

Tantalum's broad product portfolio, industry leading process and materials technology, global manufacturing base and on-time delivery capabilities allow us to serve a wide range of customers in a diverse group of end markets, including computing, telecommunications, consumer, medical, military, automotive and general industries.

Our ceramic product line offers an extensive line of multilayer ceramic capacitors in a variety of sizes and configurations. We are one of the two leading ceramic capacitor manufacturers headquartered in the United States and among the ten largest manufacturers worldwide.

Ceramic's high temperature and capacitance stable product lines provide us with what we believe to be a significant advantage over many of our competitors, especially in high reliability markets, such as medical, industrial, defense and aerospace. Our other significant end-markets include computing, telecommunications, automotive and general industries.

Film and Electrolytic Business Group

Our Film and Electrolytic Business Group produces film, paper and wet aluminum electrolytic capacitors. In addition, the business group designs and produce EMI Filters. Film capacitors are preferred where high reliability is a determining factor, while wet aluminum electrolytic capacitors are preferred when high capacitance at reasonable cost is required. EMI filters consist of capacitive and inductive elements that reduce electromagnetic disturbance in the frequency range desired. We believe we are one of the world's largest suppliers of film and one of the leaders in wet aluminum electrolytic capacitors and EMI Filters for high-value custom applications. In addition, we produce capacitor grade aluminum foils utilized as a core component in the manufacture of electrolytic capacitors. For fiscal years 2015, 2014 and 2013, our Film and Electrolytic Business Group had consolidated net sales of $201.9 million, $207.2 million and $201.6 million, respectively.

Our Film and Electrolytic Business Group primarily serves the industrial and automotive markets. We believe that our Film and Electrolytic Business Group's product portfolio, technology and experience allow us to significantly benefit from the continued growth in alternative energy solutions. We operate thirteen film and electrolytic manufacturing sites throughout Europe, Asia and the United States and maintain product innovation centers in the United Kingdom, Italy, Germany and Sweden. Our Film and Electrolytic Business Group employs approximately 2,250 employees worldwide.

As part of our Film and Electrolytic restructuring plan, we expect to reduce headcount by a total of approximately 200 employees in Italy, Germany, Finland and the United States. The total expected severance, closing and relocation expenses are approximately $6.8 million. We expect to complete these actions in the third quarter of fiscal year 2016. However, the length

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of time required to complete the restructuring activities is dependent upon a number of factors, including the ability to continue to manufacture products required to meet customer demand while at the same time relocating certain production lines as well as the progress of discussions with union and government representatives. We expect the restructuring plan to result in a $4.0 million reduction in our operating cost structure in fiscal year 2016 compared to fiscal year 2015 and anticipate that benefits from the restructuring plan will continue during fiscal year 2017.

Environmental and Regulatory Compliance

We are subject to various North American, European, and Asian federal, state, and local environmental laws and regulations relating to the protection of the environment, including those governing the handling and management of certain chemicals and materials used and generated in manufacturing electronic components. Based on the annual costs incurred over the past several years, we do not believe that compliance with these laws and regulations will have a material adverse effect on our capital expenditures, earnings, or competitive position. We believe, however, that it is reasonably likely that the trend in environmental litigation, laws, and regulations will continue to be toward stricter standards. Such changes in the laws and regulations may require us to make additional capital expenditures which, while not currently estimable with certainty, are not presently expected to have a material adverse effect on our financial condition.

We are strongly committed to economic, environmental, and socially sustainable development. As a result of this commitment, we have adopted the Electronic Industry Citizenship Coalition ("EICC") Code of Conduct. The EICC Code of Conduct is a comprehensive code of conduct that addresses all aspects of corporate responsibility including labor, health and safety, the environment, business ethics, and related management system elements. It outlines standards to ensure working conditions in the electronic industry supply chain are safe, that workers are treated with respect and dignity, that manufacturing processes are environmentally sustainable and that materials are sourced responsibly.

Policies, programs, and procedures implemented throughout KEMET ensure compliance with legal and regulatory requirements, the content of the EICC Code of Conduct, and customer contractual requirements related to social and environmental responsibility.

We fully support the position of the EICC, the Global e-Sustainability Initiative ("GeSI"), the Electronic Components Industry Association ("ECIA") and the Tantalum-Niobium International Study Center ("TIC") in avoiding the use of conflict minerals which directly or indirectly finance or benefit armed groups in the Democratic Republic of Congo or adjoining countries, in line with full compliance to the EICC Code of Conduct. Our tantalum supply base has been and continues to be validated as being sourced conflict free. All of our tantalum raw material providers have been validated as compliant to the EICC/GeSI Conflict Free Smelter Program ("CFSP") program. This policy and validation requirement has been implemented for all conflict minerals. We intend to discontinue doing business with any supplier found to be purchasing materials which directly or indirectly finance or benefit armed groups in the Democratic Republic of Congo or adjoining countries. We will continue to work through the EICC, GeSI, ECIA and TIC towards the goal of greater transparency in the supply chain.

Summary of Activities to Develop a Transparent Supply Chain

We are actively involved in developing a transparent supply chain through our membership in the EICC/GeSI Conflict-Free Sourcing Initiative. We were a member of the EICC/GeSI working group that developed the CFSP assessment protocols and participated in the pilot implementation phase of the Organization for Economic Cooperation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. We participate in smelter engagement to increase the number of conflict-free validated smelters globally, the development of due diligence guidance documents and the advancement of the industry adopted conflict minerals reporting template. We will rely on the EICC/GeSI Conflict-Free Smelter Program independent third party audits to supplement our internal due diligence of conflict mineral suppliers and are monitoring the progress of these audits to ensure our supply chain is conflict free. We fully support section 1502 "Conflict Minerals" of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and will comply with all reporting requirements.

Global Code of Conduct and updated Mission, Vision and Values

To complement KEMET's Global Code of Conduct ("Code of Conduct"), which became effective August 1, 2010, KEMET introduced updated mission and vision statements along with a set of core values in June 2011. KEMET's Mission is to help make the world a better, safer, more connected place to live. KEMET's Vision is to be the world's most trusted partner for innovative component solutions. KEMET's updated Values embody the key expectations of how our employees should approach the work they do every day: One KEMET, Unparalleled Customer Experience, Ethics and Integrity, Talent Oriented, No Politics, The Math Must Work and Speed. The Global Code of Conduct and updated Mission, Vision and Values are applicable to all employees, officers, and directors of the Company. The Code of Conduct, Mission, Vision and Values and any amendments thereto are available at http://www.kemet.com.

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Employees

We have approximately 9,225 employees as of March 31, 2015 in the following locations:

Mexico	5,175
Asia	2,000
Europe	1,475
United States	575

The number of employees represented by labor organizations at KEMET locations in each of the following countries is:

Mexico	3,425
Italy	250
Macedonia	50
Bulgaria	125
Indonesia	300
Finland	150
Portugal	25

In fiscal year 2015, we did not experience any major work stoppages. Our labor costs in Mexico, Asia and various locations in Europe are denominated in local currencies, and a significant depreciation or appreciation of the United States dollar against the local currencies would increase or decrease our labor costs.

Securities Exchange Act of 1934 Reports

We maintain an Internet website at the following address: http://www.kemet.com. KEMET makes available on or through our Internet website certain reports and amendments to those reports that are filed or furnished to the Securities and Exchange Commission ("SEC") pursuant to Section 13(a) or 15(d) of the Exchange Act. These include annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and beneficial ownership reports on Forms 3, 4 and 5. This information is available on our website free of charge as soon as reasonably practicable after we electronically file the information with, or furnish it to, the SEC.

ITEM 1A.    RISK FACTORS.

This report contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as "expects," "anticipates," "believes," "estimates" and other similar expressions or future or conditional verbs such as "will," "should," "would" and "could" are intended to identify such forward-looking statements. Readers of this report should not rely solely on the forward-looking statements and should consider all uncertainties and risks throughout this report. The statements are representative only as of the date they are made, and we undertake no obligation to update any forward-looking statement.

All forward-looking statements, by their nature, are subject to risks and uncertainties. Our actual future results may differ materially from those set forth in our forward-looking statements. We face risks that are inherent in the businesses and the market places in which we operate. While management believes these forward-looking statements are accurate and reasonable, uncertainties, risks and factors, including those described below, could cause actual results to differ materially from those reflected in our forward-looking statements.

Factors that may cause the actual outcomes and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to the following: (i) adverse economic conditions could impact our ability to realize operating plans if the demand for our products declines, and such conditions could adversely affect our liquidity and ability to continue to operate; (ii) continued net losses could impact our ability to realize current operating plans and could materially adversely affect our liquidity and our ability to continue to operate; (iii) adverse economic conditions could cause the write down of long-lived assets or goodwill; (iv) an increase in the cost or a decrease in the availability of our principal or single-sourced purchased materials; (v) changes in the competitive environment; (vi) uncertainty of the timing of customer product qualifications in heavily regulated industries; (vii) economic, political, or regulatory changes in the countries in which we operate; (viii) difficulties, delays or unexpected costs in completing the restructuring plans;

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(ix) equity method investment in NEC TOKIN exposes us to a variety of risks; (x) possible acquisition of NEC TOKIN may not achieve all of the anticipated results; (xi) acquisitions and other strategic transactions expose us to a variety of risks; (xii) our business could be negatively impacted by increased regulatory scrutiny and litigation; (xiii) inability to attract, train and retain effective employees and management; (xiv) inability to develop innovative products to maintain customer relationships and offset potential price erosion in older products; (xv) exposure to claims alleging product defects; (xvi) the impact of laws and regulations that apply to our business, including those relating to environmental matters; (xvii) the impact of international laws relating to trade, export controls and foreign corrupt practices; (xviii) volatility of financial and credit markets affecting our access to capital; (xix) the need to reduce the total costs of our products to remain competitive; (xx) potential limitation on the use of net operating losses to offset possible future taxable income; (xxi) restrictions in our debt agreements that limit our flexibility in operating our business; (xxii) failure of our information technology systems to function properly or our failure to control unauthorized access to our systems may cause business disruptions; (xxiii) additional exercise of the warrant by K Equity which could potentially result in the existence of a significant stockholder who could seek to influence our corporate decisions; and (xxiv) fluctuation in distributor sales could adversely affect our results of operations.

Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations and could cause actual results to differ materially from those included, contemplated or implied by forward-looking statements made in this report, and the reader should not consider the above list of factors to be a complete set of all potential risks or uncertainties.

Adverse economic conditions could impact our ability to realize operating plans if the demand for our products declines; and such conditions could adversely affect our liquidity and ability to continue to operate.

While our operating plans provide for cash generated from operations to be sufficient to cover our future operating requirements, many factors, including reduced demand for our products, currency exchange rate fluctuations, increased raw material costs, and other adverse market conditions that we cannot predict could cause a shortfall in net cash generated from operations. As an example, the electronics industry is a highly cyclical industry with demand for capacitors reflecting the demand for products in the electronics market. Customers' requirements for our capacitors fluctuate as a result of changes in general economic activity and other factors that affect the demand for their end-products. During periods of increasing demand for their products, they typically seek to increase their inventory of our products to avoid production bottlenecks. When demand for their products peaks and begins to decline, they may rapidly decrease orders for our products while they use accumulated inventory. Business cycles vary somewhat in different geographical regions, such as Asia, and within customer industries. We are also vulnerable to general economic events beyond our control and our sales and profits may suffer in periods of weak demand.

Our ability to realize operating plans is also dependent upon meeting our payment obligations and complying with any applicable financial covenants under our debt agreements. If cash generated from operating, investing and financing activities is insufficient to pay for operating requirements and to cover interest payment obligations under debt instruments, planned operating and capital expenditures may need to be reduced.

Continued net losses could impact our ability to realize current operating plans and could materially adversely affect our liquidity and our ability to continue to operate.

Our liquidity and ability to realize our current operating plans is dependent on an improvement in operating results. If cash generated from operating, investing and financing activities is insufficient to pay for operating requirements and to cover payment obligations under debt instruments, planned operating and capital expenditures may need to be reduced, or the debt instruments may need to be amended or refinanced. There can be no assurances that we would be able to secure such amendments or refinancing on satisfactory terms.

However, to provide financial flexibility, if necessary we could explore the sale of certain non-core assets. There can be no assurances that we would be successful in this strategic initiative. Our ability to realize current operating plans is also dependent upon meeting our payment obligations and complying with any applicable financial covenants under our debt agreements.

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Adverse economic conditions could cause the write down of long-lived assets or goodwill.

Long-lived assets and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or group of assets may not be recoverable. In the event that the test shows that the carrying value of certain long-lived assets is impaired, we would be required to take an impairment charge to earnings under U.S. generally accepted accounting principles. However, such a charge would have no direct effect on our cash. If the economic conditions decline we could incur impairment charges in the future.

Goodwill is reviewed for impairment annually and whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable. In the event that the test shows that the carrying value of goodwill is impaired, we would be required to take an impairment charge to earnings under U.S. generally accepted accounting principles. However, such a charge would have no direct effect on our cash. If the economic conditions decline we could incur additional charges in the future.

An increase in the cost or decrease in the availability of our principal or single-sourced purchased materials could adversely affect profitability.

The principal raw materials used in the manufacture of our products are tantalum powder, tantalum ore, palladium, aluminum and silver. These materials are considered commodities and are subject to price volatility. Additionally, any delays in obtaining raw materials for our products could hinder our ability to manufacture our products, negatively impacting our competitive position and our relationships with our customers.

Tantalum is mined principally in the Democratic Republic of Congo, Australia, Brazil, Canada and Mozambique. As a result of our tantalum vertical integration program which began in fiscal year 2012, we have reduced our exposure to price volatility and supply uncertainty in the tantalum supply chain. A majority of our tantalum needs are now met through our direct sourcing of conflict free tantalum ore or tantalum scrap reclaim, which is then processed into the intermediate product potassium heptafluorotantalate (commonly known as K-salt) at our own facility in Mexico, before final processing into tantalum powder at Blue Powder. Price increases for tantalum ore, or for the remaining tantalum powder that we source from third parties, could impact our financial performance as we may not be able to pass all such price increases on to our customers.

Palladium is a precious metal used in the manufacture of multilayer ceramic capacitors and is mined primarily in Russia and South Africa. We continue to pursue ways to reduce palladium usage in ceramic capacitors in order to minimize the price risk. The amount of palladium that we require has generally been available in sufficient quantities; however the price of palladium is subject to significant price fluctuations driven by market demand. For instance, in fiscal year 2015 the price of palladium fluctuated between $726 and $908 per troy ounce. Price increases and the possibility of our inability to pass such increases on to our customers could have an adverse effect on profitability.

Silver and aluminum have generally been available in sufficient quantities, and we believe there are a sufficient number of suppliers from which we can purchase our requirements. An increase in the price of silver and aluminum that we are unable to pass on to our customers, could, however, have an adverse effect on our profitability.

Changes in the competitive environment could harm our business.

The capacitor business is highly competitive worldwide, with low transportation costs and few import barriers. Competition is based on factors such as product quality and reliability, availability, customer service, technical innovation, timely delivery and price. The industry has become increasingly consolidated and globalized in recent years, and our primary U.S. and non-U.S. competitors, some of which are larger than us, have significant financial resources. The greater financial resources of such competitors may enable them to commit larger amounts of capital in response to changing market conditions. Some competitors may also have the ability to use profits from other operations to subsidize losses sustained in their businesses with which we compete. Certain competitors may also develop product or service innovations that could put us at a disadvantage.

Uncertainty of the timing of customer product qualifications in heavily regulated industries could affect the timing of product revenues and profitability arising from these industries.

Our capacitors are incorporated into products used in diverse industries. Certain of these industries, such as military, aerospace and medical, are heavily regulated, with long and sometimes unpredictable product approval and qualification processes. Due to such regulatory compliance issues, there can be no assurances as to the timing of product revenues and profitability arising from our product development and sales efforts in these industries.

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We manufacture many capacitors in Europe, Mexico and Asia and economic, political or regulatory changes in any of these regions could adversely affect our profitability.

Our international operations are subject to a number of special risks, in addition to the same risks as our domestic business. These risks include currency exchange rate fluctuations, differing protections of intellectual property, trade barriers, labor unrest, exchange controls, regional economic uncertainty, differing (and possibly more stringent) labor regulation, risk of governmental expropriation, domestic and foreign customs and tariffs, current and changing regulatory regimes, differences in the availability and terms of financing, political instability and potential increases in taxes. These factors could impact our production capability or adversely affect our results of operations or financial condition.

We may experience difficulties, delays or unexpected costs in completing our restructuring plan and may not realize all of the expected benefits from our restructuring plan.

During fiscal year 2015, we continued our restructuring plan and took actions to reduce headcount by a total of approximately 200 to improve the operating performance of Film and Electrolytic and approximately 500 to improve the operating performance within Solid Capacitors. However, any anticipated benefits of this restructuring activity will not be fully realized until fiscal year 2017. We may not realize, in full or in part, the anticipated benefits of the restructuring plan without encountering difficulties, which may include complications in the transfer of production knowledge, loss of key employees and/or customers, the disruption of ongoing business, possible inconsistencies in standards, controls and procedures and potential difficulty in meeting customer demand in the event the market dramatically improves. We are party to collective bargaining agreements in certain jurisdictions in which we operate which could potentially prevent or delay execution of parts of our restructuring plan.

The financial performance of our equity method investment in NEC TOKIN could adversely impact our results of operations.

On February 1, 2013, we closed on KEC's investment in a 34% economic interest in NEC TOKIN with the purchase of 51% of the common stock in NEC TOKIN. The 34% economic interest is calculated based on the number of common shares held by KEC, directly and indirectly, in proportion to the aggregate number of common and preferred shares of NEC TOKIN outstanding as of such date. These businesses are subject to laws, regulations or market conditions, or have risks inherent in their operations, that could adversely affect their performance. We do not have the power to direct significant activities of our equity method investments and therefore the performance of the investment may be negatively impacted. The interests of our partners may differ from the Company's, and they may cause such entities to take actions which are not in the Company's best interest. Any of these factors could adversely impact our results of operations and the value of our investment. In fiscal years 2015, 2014 and 2013 we incurred a loss on our equity investment in NEC TOKIN of $2.2 million, $7.1 million and $1.3 million, respectively.

We may not realize the anticipated synergies and revenue expansion expected to result from completing the acquisition of NEC TOKIN and we may experience difficulties in integrating NEC TOKIN’s business which may adversely affect our financial performance.

There can be no assurance that we will complete the acquisition of the remaining shares of common stock and preferred stock of NEC TOKIN. KEC’s first and second call options to purchase additional capital stock of NEC TOKIN expired on April 30, 2015 and as a result KEC does not currently have the right to purchase the remaining capital stock of NEC TOKIN. There can be no assurance that KEC will be able to negotiate new terms to purchase the additional capital stock of NEC TOKIN. From April 1, 2015 through May 31, 2018, NEC Corporation (“NEC”) of Japan may require KEC to purchase all outstanding capital stock of NEC TOKIN from its stockholders, primarily NEC (the “Put Option”) provided that KEC’s payment of the Put Option price is permitted under the 10.5% Senior Notes and Loan and Security Agreement.

Even if we do complete the acquisition, there can be no assurance that we will realize the anticipated operating synergies, tax benefits and revenue expansion from the acquisition of NEC TOKIN or that we will not experience difficulties in integrating the operations of NEC TOKIN with our operations. For example, the integration of NEC TOKIN will require the experience and expertise of certain of our key managers and key managers of NEC TOKIN. There can be no assurance, however, that these managers will remain with us for the time period necessary to successfully integrate the operations of NEC TOKIN with our operations. In addition, the acquisition of NEC TOKIN may present significant challenges for our management due to the increased time and resources required to properly integrate our management, employees, information systems, accounting controls, personnel and administrative functions with those of NEC TOKIN and to manage the combined company on a going forward basis. We cannot assure you that we will be able to successfully integrate and streamline overlapping functions or, if successfully accomplished, that such integration will not be more costly to accomplish than presently contemplated or that we will not encounter difficulties in managing the combined company due to its increased size and scope. Furthermore, expansions or acquisitions into new geographic markets and services may require us to comply with

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new and unfamiliar legal and regulatory requirements, which could impose substantial obligations on us and our management, cause us to expend additional time and resources and increase our exposure to penalties or fines for non-compliance with such requirements.

Furthermore, there can be no assurance that, as a combined company, we will continue to maintain all of the supplier and customer relationships that we and NEC TOKIN enjoyed as separate companies. As a combined company, we may encounter difficulties managing relationships with our suppliers and our customers due to our increased size and scope and to the increased number of relationships we will have with suppliers and customers.

Acquisitions and other strategic transactions expose us to a variety of operational and financial risks.

Our ability to realize the anticipated benefits of acquisitions depends, to a large extent, on our ability to integrate the acquired companies with our own. Our management devotes significant attention and resources to these efforts, which may disrupt the business of each of the companies and, if executed ineffectively, could preclude realization of the full benefits we expect. Failure to realize the anticipated benefits of our acquisitions could cause an interruption of, or a loss of momentum in, the operations of the acquired company. In addition, the efforts required to realize the benefits of our acquisitions may result in material unanticipated problems, expenses, liabilities, competitive responses, loss of customer relationships, the diversion of management's attention, and may cause our stock price to decline. The risks associated with such acquisitions and other strategic transactions include:

• difficulties in integrating or retaining key employees of the acquired company;

• difficulties in integrating the operations of the acquired company, such as information technology resources, and financial and operational data;

• entering geographic or product markets in which we have no or limited prior experience;

• difficulties in assimilating product lines or integrating technologies of the acquired company into our products;

• disruptions to our operations;

• diversion of our management's attention;

• potential incompatibility of business cultures; and

• the assumption of debt and other liabilities, both known and unknown.

Many of these factors will be outside of our control, and any one of them could result in increased costs, decreases in the amount of expected revenues and diversion of management's time and energy.

Additionally, we may finance acquisitions or future payments with cash from operations, additional indebtedness and/or the issuance of additional securities, any of which may impair the operation of our business or present additional risks, such as reduced liquidity or increased interest expense. Such acquisition financing could result in a decrease of our ratio of earnings to fixed charges. We may also seek to restructure our business in the future by disposing of certain of our assets, which may harm our future operating results, divert significant managerial attention from our operations and/or require us to accept non-cash consideration, the market value of which may fluctuate.

Failure to implement our acquisition strategy, including successfully integrating acquired businesses, could have an adverse effect on our business, financial condition and results of operations.

We are currently subject to increased regulatory scrutiny and litigation that may negatively impact our business.

The growth of our Company and our expansion into a variety of new products expose us to a variety of new regulatory issues, and we have experienced increased regulatory scrutiny as we have grown. We are subject to various federal, foreign and state laws, including antitrust laws, violations of which can involve civil or criminal sanctions. Beginning in March 2014, NEC TOKIN and certain of its subsidiaries have received inquiries, requests for information and other communications from government authorities in China, the United States, the European Commission, Japan, South Korea, Taiwan, Singapore and Brazil concerning alleged anti-competitive activities within the capacitor industry. Given our substantial investment in NEC TOKIN, these investigations could result in regulators interpreting and applying existing laws in ways that require us to incur substantial costs, expose us to unanticipated civil or criminal liability, or cause us to change our business practices. Further, the Company received a request for information from the European Commission in connection with its investigation of NEC TOKIN as the regulators evaluate any potential liability to which shareholders of NEC TOKIN may be subject.

Various purported antitrust class actions as described in "Item 3. Legal Proceedings", have been filed in United States district courts (the "U.S. Complaints") and Canada (the "Canadian Complaints") alleging collusion and restraint of trade in capacitors by the named defendants, including KEMET Corporation, KEC and NEC TOKIN.

The Company has not recorded any accrual concerning the U.S. Complaints and the Canadian Complaints.

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The impact of these and other investigations could have a material adverse effect on our financial position, liquidity and results of operations.

Our inability to attract, train and retain effective employees and management could harm our business.

Our success depends upon the continued contributions of our executive officers and certain other employees, many of whom have many years of experience with us and would be extremely difficult to replace. We must also attract and retain experienced and highly skilled engineering, sales and marketing and managerial personnel. Competition for qualified personnel is intense in our industry, and we may not be successful in hiring and retaining these people. If we lost the services of our executive officers or our other highly qualified and experienced employees or cannot attract and retain other qualified personnel, our business could suffer through less effective management due to loss of accumulated knowledge of our business or through less successful products due to a reduced ability to design, manufacture and market our products.

We must continue to develop innovative products to maintain relationships with our customers and to offset potential price erosion in older products.

While most of the fundamental technologies used in the passive components industry have been available for a long time, the market is nonetheless characterized by rapid changes in product designs and technological advances allowing for better performance, smaller size and/or lower cost. New applications are frequently found for existing technologies, and new technologies occasionally replace existing technologies for some applications or open up new business opportunities in other areas of application. We believe that successful innovation is critical for maintaining profitability in order to offset potential erosion of selling prices for existing products and to ensure the flow of new products and robust manufacturing processes that will keep us at the forefront of our customers' product designs. Non-customized commodity products are especially vulnerable to price pressure, but customized products have also experienced price pressure in recent years. Developing and marketing new products requires start-up costs that may not be recouped if these products or production techniques are not successful. There are numerous risks inherent in product development, including the risks that we will be unable to anticipate the direction of technological change or that we will be unable to develop and market new products and applications in a timely fashion to satisfy customer demands. If this occurs, we could lose customers and experience adverse effects on our results of operations.

We may be exposed to claims alleging product defects.

Our business exposes us to claims alleging product defects or nonconformance with product specifications. We may be held liable for, or incur costs related to, such claims if any of our products, or products in which our products are incorporated, are found to have caused end market product application failures, product recalls, property damage or personal injury. Provisions in our customer and distributor agreements are designed to limit our exposure to potential material product defect claims, including warranty, indemnification, waiver and limitation of liability provisions, but such provisions may not be effective under the laws of some jurisdictions. If we cannot successfully defend ourselves against product defect claims, we may incur substantial liabilities. Regardless of the merits or eventual outcome, defect claims could entail substantial expense and require the time and attention of key management personnel.

Our insurance program may not be adequate to cover all liabilities arising out of product defect claims and, at any time, insurance coverage may not be available on commercially reasonable terms or at all. If liability coverage is insufficient, a product defect claim could result in liability to us, which could materially and adversely affect our results of operations or financial condition. Even if we have adequate insurance coverage, product defect claims or recalls could result in negative publicity or force us to devote significant time and attention to those matters.

Various laws and regulations that apply to our business, including those relating to conflict minerals and environmental matters, could limit our ability to operate as we are currently and could result in additional costs.

We are subject to various laws and regulations of federal, state and local authorities in the countries in which we operate regarding a wide variety of matters, including conflict minerals, environmental, employment, land use, antitrust, and others that affect the day-to-day operations of our business. The liabilities and requirements associated with the laws and regulations that affect us may be costly and time-consuming. There can be no assurance that we have been or will be at all times in compliance with such applicable laws and regulations. Failure to comply may result in the assessment of administrative, civil and criminal penalties, the issuance of injunctions to limit or cease operations, the suspension or revocation of permits and other enforcement measures that could have the effect of limiting our operations. If we are pursued for sanctions, costs or liabilities in respect of these matters, our operations and, as a result, our profitability could be materially and adversely affected.

The SEC requires issuers for whom tantalum, tin, tungsten and gold are necessary to the functionality or production of a product manufactured, or contracted to be manufactured, by such person to disclose annually whether any of those minerals originated in the Democratic Republic of Congo or an adjoining country. As defined by the SEC, tantalum, tin, tungsten and

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gold are commonly referred to as “conflict minerals” or “3TG”. If an issuer’s conflict minerals originated in those countries, the rule requires the issuer to submit a report to the Commission that includes a description of the measures it took to exercise due diligence on the conflict minerals’ source and chain of custody. We use tantalum, tin and to a lesser degree other of the 3TG minerals, in our production processes and in our products. We have exercised due diligence on the source and chain of custody during the reporting period and, as required under the rule, will disclose a description of these measures and certain of our findings in a special disclosure on Form SD. Disclosure in accordance with the rule may cause changes to the pricing of 3TG minerals, which could adversely affect our profitability.  In addition, it is possible that some of our disclosures pursuant to the rule related to our inquiries and supply chain custody diligence could cause reputational harm and cause the company to lose customers or sales.

In addition, we are subject to a variety of U.S. federal, state and local, as well as foreign, environmental laws and regulations relating, among other things, to wastewater discharge, air emissions, handling of hazardous materials, disposal of solid and hazardous wastes, and remediation of soil and groundwater contamination. We use a number of chemicals or similar substances and generate waste that are considered hazardous. We are required to hold environmental permits to conduct many of our operations. Violations of environmental laws and regulations could result in substantial fines, penalties, and other sanctions. Changes in environmental laws or regulations (or in their enforcement) affecting or limiting, for example, our chemical uses, certain of our manufacturing processes, or our disposal practices, could restrict our ability to operate as we are currently operating or impose additional costs. In addition, we may experience releases of certain chemicals or discover existing contamination, which could cause us to incur material cleanup costs or other damages.

Our international sales and operations are subject to applicable laws relating to trade, export controls and foreign corrupt practices, the violation of which could adversely affect our operations.

We must comply with all applicable export control laws and regulations of the United States and other countries. United States laws and regulations applicable to us include the Arms Export Control Act, the International Traffic in Arms Regulations ("ITAR"), the Export Administration Regulations ("EAR") and the trade sanctions laws and regulations administered by the United States Department of the Treasury's Office of Foreign Assets Control ("OFAC"). EAR restricts the export of dual-use products and technical data to certain countries, while ITAR restricts the export of defense products, technical data and defense services. The U.S. government agencies responsible for administering EAR and ITAR have significant discretion in the interpretation and enforcement of these regulations. We also cannot provide services to certain countries subject to United States trade sanctions unless we first obtain the necessary authorizations from OFAC. In addition, we are subject to the Foreign Corrupt Practices Act and other anti-bribery laws that, generally, bar bribes or unreasonable gifts to foreign governments or officials.

Violations of these laws or regulations could result in significant additional sanctions including fines, more onerous compliance requirements, more extensive debarments from export privileges, loss of authorizations needed to conduct aspects of our international business and criminal penalties and may harm our ability to enter contracts with customers who have contracts with the U.S. government. A violation of the laws or the regulations enumerated above could materially adversely affect our business, financial condition and results of operations.

Volatility of financial and credit markets could affect our access to capital.

Uncertainty in the global financial and credit markets could impact our ability to implement new financial arrangements or to modify our existing financial arrangements. An inability to obtain new financing or to further modify existing financing could adversely impact the execution of our restructuring plans and delay the realization of the expected cost reductions. Our ability to generate adequate liquidity will depend on our ability to execute our operating plans and to manage costs in light of developing economic conditions. An unanticipated decrease in sales, or other factors that would cause the actual outcome of our plans to differ from expectations, could create a shortfall in cash available to fund our liquidity needs. Being unable to access new capital, experiencing a shortfall in cash from operations to fund our liquidity needs and the failure to implement an initiative to offset the shortfall in cash would likely have a material adverse effect on our business.

We must consistently reduce the total costs of our products to remain competitive.

Our industry is intensely competitive and prices for existing commodity products tend to decrease steadily over their life cycle. There is substantial and continuing pressure from customers to reduce the total cost of capacitors. To remain competitive, we must achieve continuous cost reductions through process and product improvements.

We must also be in a position to minimize our customers' shipping and inventory financing costs and to meet their other goals for rationalization of supply and production. Our growth and the profit margins of our products will suffer if our competitors are more successful in reducing the total cost to customers of their products than we are. We must also continue to introduce new products that offer performance advantages over our existing products and can thereby achieve premium prices, offsetting the price declines in our more mature products.

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Our use of net operating losses to offset possible future taxable income could be limited by ownership changes.

In addition to the general limitations on the carryback and carryforward of net operating losses under Section 172 of the Internal Revenue Code (the "Code"), Section 382 of the Code imposes further limitations on the utilization of net operating losses by a corporation following ownership changes which result in more than a 50 percentage point change in ownership of a corporation within a three year period. If Section 382 applies, the post-ownership change utilization of our net operating losses may be subject to limitation for federal income tax purposes related to regular and alternative minimum tax. The application of Section 382 of the Code now or in the future could limit a substantial part of our future utilization of available net operating losses. Such limitation could require us to pay substantial additional income taxes and adversely affect our liquidity and financial position.

We do not believe we have experienced an ownership change to date. However, the Section 382 rules are complex and there is no assurance our view is correct. For example, the issuance of a warrant (the "Platinum Warrant") in May 2009 to K Financing, LLC ("K Financing"), in connection with the entry into a credit facility (the "Platinum Credit Facility") with K Financing, may be deemed to have resulted in an "ownership change" for purposes of Section 382 of the Code. If such an ownership change is deemed to have occurred, the amount of our post-ownership change taxable income that could be offset by our pre-ownership change net operating loss carryforwards would be severely limited. While we believe that the issuance of the Platinum Warrant did not result in an ownership change for purposes of Section 382 of the Code, there is no assurance that our view will be unchallenged.

Even if we have not experienced an ownership change to date, we could experience an ownership change in the near future if there are certain significant purchases of our common stock or other events outside our control.

Our debt agreements contain restrictions that limit our flexibility in operating our business.

The agreement governing our revolving credit facility and the indenture governing the notes and certain of our other debt agreements contain various covenants that, subject to exceptions, limit our ability to, among other things: incur additional indebtedness; create liens on assets; make capital expenditures; engage in mergers, consolidations, liquidations and dissolutions; sell assets (including pursuant to sale leaseback transactions); pay dividends and distributions on or repurchase capital stock; make investments (including acquisitions), loans, or advances; prepay certain junior indebtedness; engage in certain transactions with affiliates; enter into restrictive agreements; amend material agreements governing certain junior indebtedness; and change lines of business. The agreement governing our revolving credit facility also includes a fixed charge coverage ratio covenant that we must satisfy if an event of default occurs or in the event that we do not meet certain excess availability requirements under our revolving credit facility. Our ability to comply with this covenant is dependent on our future performance, which may be subject to many factors, some of which are beyond our control.

Failure of our information technology systems to function properly may cause business disruptions.

As a global company we depend on our information technology systems to support our business. Any inability to successfully manage the procurement, development, implementation, execution or maintenance of our information systems, including matters related to system and data security, reliability, compliance or performance could have an adverse effect on our business including our results of operation and timeliness of financial reporting.

In the ordinary course of business, we collect and store sensitive data and information, including our proprietary and regulated business information, as well as personally identifiable information about our employees, in addition to other information upon which our business processes rely. Our information systems, like those of other companies, are susceptible to malicious damage, intrusions and outages due to, among other events, viruses, breaches of security, natural disasters, power loss or telecommunications failures. We have taken steps to maintain adequate data security and address these risks and uncertainties by implementing security technologies, internal controls, network and data center resiliency and recovery processes. However, any operational failure could lead to the loss or disclosure of confidential and other important information which could have the following implications: loss of intellectual property, significant remediation costs, disruption to key business operations and diversion of management’s attention and key informational technology resources.     

K Equity may obtain significant influence over all matters submitted to a stockholder vote, which may limit the ability of other shareholders to influence corporate activities and may adversely affect the market price of our common stock.

As part of the consideration for entering into the Platinum Credit Facility on May 5, 2009, K Financing received the Platinum Warrant to purchase up to 26,848,484 shares of our common stock (subject to certain adjustments), representing 49.9% of our outstanding common stock at the time of issuance on a post-exercise basis. This Platinum Warrant was subsequently transferred to K Equity, LLC ("K Equity"), an affiliate of K Financing. As of March 31, 2015, 8,416,815 shares remain subject to the Platinum Warrant. To the extent that K Equity exercises the remainder of the Platinum Warrant in whole

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or in part but does not sell all or a significant part of the shares it acquires upon exercise, K Equity may own up to 15.6% of our outstanding common stock. As a result, K Equity may have substantial influence over the outcome of votes on all matters requiring approval by our stockholders, including the election of directors, the adoption of amendments to our restated certificate of incorporation and by-laws and approval of significant corporate transactions. This concentration of stock ownership may make it difficult for stockholders to replace management. In addition, this significant concentration of stock ownership may adversely affect the trading price for our common stock because investors often perceive disadvantages in owning stock in companies with controlling stockholders. This concentration of control could be disadvantageous to other stockholders with interests different from those of our officers, directors and principal stockholders, and the trading price of shares of our common stock could be adversely affected.

Sales to distribution channel customers may fluctuate and adversely affect our results of operations.

From time-to-time, if end customer demand decreases, our sales to distributors also decrease while the distributors reduce their inventory levels. In addition, a single customer, a distributor, accounted for over 10% of our net sales in fiscal years 2015, 2014 and 2013. If our relationship with this customer were to terminate, we would need to determine alternative means of delivering our products to the end-customers served by it.

ITEM 1B.    UNRESOLVED STAFF COMMENTS.

None.

ITEM 2.    PROPERTIES.

We are headquartered in Simpsonville, South Carolina, and have a total of 21 manufacturing plants (one facility contains manufacturing operations for both Solid Capacitors and Film and Electrolytic) located in North America, Europe and Asia. Our manufacturing and assembly facilities have approximately 3.4 million square feet of floor space and use proprietary manufacturing processes and equipment.

Our facilities in Mexico operate under the Maquiladora program. In general, a company that operates under this program is afforded certain duty and tax preferences and incentives on products brought into the United States. Our manufacturing standards, including compliance with worker safety laws and regulations, are essentially identical in North America, Europe and Asia. Our operations in Mexico, Europe and Asia, similar to our United States operations, have won numerous quality, environmental and safety awards.

We believe that substantially all of our property and equipment is in good condition, and that overall, we have sufficient capacity to meet our current and projected manufacturing and distribution needs.

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The following table provides certain information regarding our principal facilities:

Location	Square Footage (in thousands)	Type of Interest	Description of Use
Simpsonville, South Carolina U.S.A.	372	Owned	Headquarters, Innovation Center, Advanced Tantalum Manufacturing and Film Manufacturing
Solid Capacitor Business Group
Matamoros, Mexico(1)	341	(1)	(1)
Monterrey, Mexico(2)	532	Owned	Manufacturing
Suzhou, China(2)	353	Leased	Manufacturing
Ciudad Victoria, Mexico	265	Owned	Manufacturing
Carson City, Nevada U.S.A.	87	Owned	Manufacturing
Film and Electrolytic Business Group
Evora, Portugal	233	Owned	Manufacturing
Suzhou, China	134	Leased	Manufacturing
Skopje, Macedonia	126	Owned	Manufacturing
Granna, Sweden	132	Owned	Manufacturing
Suomussalmi, Finland	93	Leased	Manufacturing
Batam, Indonesia	86	Owned	Manufacturing
Knoxville, Tennessee U.S.A.	78	Owned	Manufacturing
Kyustendil, Bulgaria	83	Owned	Manufacturing
Landsberg, Germany	81	Leased	Manufacturing and Innovation Center
Pontecchio, Italy	226	Owned	Manufacturing and Innovation Center
Weymouth, United Kingdom	96	Leased	Innovation Center
Anting, China	38	Owned	Manufacturing
Farjestaden, Sweden	28	Leased	Manufacturing and Innovation Center

_______________________________________________________________________________

1. Includes two manufacturing facilities, one owned and one leased facility. The leased facility processes raw materials.

2. Includes two manufacturing facilities.

ITEM 3.    LEGAL PROCEEDINGS.

We or our subsidiaries are at any one time parties to a number of lawsuits arising out of their respective operations, including workers' compensation or work place safety cases, some of which involve claims of substantial damages. Although there can be no assurance, based upon information known to us, we do not believe that any liability which might result from an adverse determination of such lawsuits would have a material adverse effect on our financial condition or results of operations.

As previously reported, KEMET Corporation and KEC, along with more than 20 other capacitor manufacturers and subsidiaries, are defendants in a purported antitrust class action complaint, In re: Capacitors Antitrust Litigation, No. 3:14-cv-03264-JD, filed on December 4, 2014 with the United States District Court, Northern District of California (the “U.S. Complaint”). The complaint alleges a violation of Section 1 of the Sherman Act, for which it seeks injunctive and equitable relief and money damages.

In addition, as previously reported, KEMET Corporation and KEC, along with certain other capacitor manufacturers and subsidiaries, were named as defendants in several additional suits that were filed in Canada (collectively, the “Canadian Complaints”): Badashmin v. Panasonic Corporation, et al., filed August 6, 2014 in the Superior Court, Province of Quebec, District of Montreal; Herard v. Panasonic Corporation, et al., filed August 6, 2014 in the Superior Court, Province of Quebec, District of Montreal; Cygnus Electronics Corporation v. Panasonic Corporation, et al., filed August 6, 2014 in the Superior Court of Justice, Province of Ontario; LeClaire v. Panasonic Corporation, et al., filed August 6, 2014 in the Superior Court, Province of Quebec, District of Montreal; Taylor v Panasonic Corporation, et al., filed August 11, 2014 in the Superior Court of Justice, Province of Ontario; Ramsay v. Panasonic Corporation, et al., filed August 14, 2014 in the Supreme Court, Province of British Columbia; Martin v. Panasonic Corporation, et al., filed September 25, 2014 in the Superior Court, Province of

20

Quebec, District of Montreal; Parikh v. Panasonic Corporation, et al., filed October 3, 2014 in the Superior Court of Justice, Province of Ontario; Fraser v. Panasonic Corporation, et al., filed October 3, 2014 in the Court of Queen’s Bench, Province of Saskatchewan; Pickering v. Panasonic Corporation, et al., filed October 6, 2014 in the Supreme Court, Province of British Columbia; and McPherson v Panasonic Corporation et al., filed on November 6, 2014 in the Court of Queen’s Bench, Province of Manitoba. The Canadian Complaints generally allege the same unlawful acts as in the U.S. Complaint, assert claims under Canada’s Competition Act as well as various civil and common law causes of action, and seek injunctive and equitable relief and money damages.

Except for certain attorneys’ fees, the Company has not recorded any accrual concerning the U.S. Complaint and the Canadian Complaints.

NEC TOKIN and its subsidiary, NEC TOKIN America, Inc., are defendants in the U.S. Complaint and the Canadian Complaints as well as other purported class actions. In connection with such investigation, the European Commission regulators are evaluating any potential liability to which shareholders of NEC TOKIN, including KEC, may be subject. See Note 5, "Investment in NEC TOKIN".

ITEM 4.    MINE SAFTETY DISCLOSURES.

Not applicable.

ITEM 4A.    EXECUTIVE OFFICERS OF THE REGISTRANT

The name, age, business experience, positions and offices held and period served in such positions or offices for each of the executive officers and certain key employees of the Company is as listed below. There are no family relationships among our executive officers and directors.

Name	Age	Position	Years with Company
Per-Olof Lööf	64	Chief Executive Officer and Director	10
William M. Lowe, Jr.	61	Executive Vice President and Chief Financial Officer	7
Charles C. Meeks, Jr.	53	Executive Vice President, Solid Capacitor Business Group	31
R. James Assaf	55	Senior Vice President, General Counsel and Secretary	7
Susan B. Barkal	52	Senior Vice President Quality, Chief Compliance Officer and Chief of Staff	15
Dr. Phillip M. Lessner	56	Senior Vice President and Chief Technology Officer	19
John C. Powers	57	Senior Vice President Global Supply Chain and Chief Procurement Officer	35
Robert S. Willoughby	54	Senior Vice President, Film and Electrolytic Business Group	28
Brian W. Burch	47	Vice President and Chief Information Officer	19
Stefano Vetralla	52	Vice President Global HR and Chief Human Resources Officer	7
Michael L. Raynor	49	Vice President and Corporate Controller	7
Richard J. Vatinelle	51	Vice President and Treasurer	2

_______________________________________________________________________________

Executive Officers

Per-Olof Lööf, Chief Executive Officer and Director, was named such in April 2005. Mr. Lööf was previously the Managing Partner of QuanStar Group, LLC, a management consulting firm and had served in such capacity since December 2003. Prior thereto, he served as Chief Executive Officer of Sensormatic Electronics Corporation and in various management roles with Andersen Consulting, Digital Equipment Corporation, AT&T and NCR. Mr. Lööf also serves on several charity boards including Boca Raton Regional Hospital and the International Centre for Missing & Exploited Children. He received a "civilekonom examen" degree in economics and business administration from the Stockholm School of Economics.

William M. Lowe, Jr., Executive Vice President and Chief Financial Officer, was named such in July 2008. Mr. Lowe was previously the Vice President, Chief Operating Officer and Chief Financial Officer of Unifi, Inc., a producer and processor of textured synthetic yarns from January 2004 to October 2007. Prior to holding that position, he was Executive Vice President and Chief Financial Officer for Metaldyne, an automotive components manufacturer. He also held various financial management positions with ArvinMeritor, Inc., a premier global supplier of integrated automotive components. He received his B.S. degree in business administration with a major in accounting from Tri-State University and is a Certified Public Accountant in the state of Ohio.

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Charles C. Meeks, Jr., Executive Vice President, Solid Capacitor Business Group, was named such in May 2013. He joined KEMET in December 1983 in the position of Process Engineer, and has held various positions of increased responsibility including the positions of Plant Manager and Director of Operations, Ceramic Business Group. He was named Vice President, Ceramic Business Group in June 2005, Senior Vice President, Ceramic Business Group in October 2007, Senior Vice President, Ceramic and Film and Electrolytic Business Group in March 2010 and Executive Vice President Ceramic and Film and Electrolytic Business Group in May 2011 prior to his appointment to his current position. In addition, since January 2000, Mr. Meeks has served as President of Top Notch Inc., a private company that offers stress management therapy services. Mr. Meeks received a Masters of Business Administration degree and a Bachelor of Science degree in Ceramic Engineering from Clemson University.

R. James Assaf, Senior Vice President, General Counsel and Secretary, was named such in February 2014. Mr. Assaf joined KEMET as Vice President, General Counsel in March 2008, and was appointed Vice President, General Counsel and Secretary in July 2008 prior to his appointment to his current position. Before joining KEMET, Mr. Assaf served as General Manager for InkSure Inc., a start-up seller of product authentication solutions. He had also previously held several positions with Sensormatic Electronics Corporation, including Associate General Counsel and Director of Business Development, Mergers & Acquisitions. Prior to Sensormatic, Mr. Assaf served as an Associate Attorney with the international law firm Squire Sanders & Dempsey. Mr. Assaf received his Bachelor of Arts degree from Kenyon College and his Juris Doctor degree from Case Western Reserve University School of Law.

Susan B. Barkal, Senior Vice President Quality, Chief Compliance Officer and Chief of Staff, was named such in February 2014. Ms. Barkal joined KEMET in November 1999, and has served as Quality Manager for the Tantalum Business Group (now a part of Solid Capacitors), Technical Product Manager for all Tantalum product lines and Director of Tantalum Product Management. Ms. Barkal was appointed Vice President of Quality and Chief Compliance Officer in December 2008 prior to her appointment to her current position. Ms. Barkal holds a Bachelor of Science degree in Chemical Engineering from Clarkson University and a Master of Science degree in Mechanical Engineering from California Polytechnic University.

Dr. Philip M. Lessner, Senior Vice President and Chief Technology Officer, was named such in February 2014. He joined KEMET in March 1996 as a Technical Associate in the Tantalum Technology Group. He has held several positions of increasing responsibility in the Technology and Product Management areas including Senior Technical Associate, Director Tantalum Technology, Director Technical Marketing Services and Vice President Tantalum Technology. Dr. Lessner was named Vice President, Chief Technology Officer and Chief Scientist in December 2006, Senior Vice President, Chief Technology Officer and Chief Scientist in May 2011 and Senior Vice President and Chief Technology and Marketing Officer in November 2012 prior to his appointment to his current position. Dr. Lessner received a PhD in Chemical Engineering from the University of California, Berkeley and a Bachelor of Engineering in Chemical Engineering from Cooper Union.

John C. Powers, Senior Vice President - Global Supply Chain and Chief Procurement Officer, was named such in February 2014. He joined KEMET in June 1980 and has held positions of increasing responsibility in Process Engineering, Operations, Product Management, Technical Sales, and Business Development. He was named Vice President, Ceramic Product Management in May 2006, Vice President, Technical Sales and Business Development in September 2009, and Vice President Ceramic Business Group in June 2010 prior to his appointment to his current position. Mr. Powers holds a Bachelor of Science degree in Ceramic Engineering from Clemson University.

Robert S. Willoughby, Senior Vice President-Film and Electrolytic Business Group, was named such in January 2015. He joined KEMET in December 1985 and has held positions of increasing responsibility within Diagnostic, Quality, New Product and Process Engineering. Mr. Willoughby served as Director - Ceramic Operations from July 2007 until March 2010; served as Vice President of Operations - Film and Electrolytic Business Unit from March 2010 until May 2013; and served as Vice President, Film and Electrolytic Business Group from May 2013 through December 2014. He holds a Bachelor of Science degree in Industrial Engineering from Clemson University and is a 2007 graduate of the KEMET Leadership Forum.

Brian W. Burch, Vice President and Chief Information Officer, was named such in December 2011. He joined KEMET in 1996 and has held positions of increasing responsibility within the IT department. Mr. Burch served as IT Director (Infrastructure and Security) from June 2005 through May 2011, when he was named Senior IT Director, prior to his current appointment. Before KEMET, Mr. Burch held IT positions with Enterprise Electric Company and Fluor Daniel. He holds a Bachelor of Science degree in Computer Science from Bob Jones University and a Masters in Business Administration from Southern Wesleyan University.

Stefano Vetralla, Vice President - Global HR and Chief Human Resources Officer, was named such in May 2014. He joined KEMET in May 2008 as Director - HR, Film and Electrolytic Business Group. Mr. Vetralla was appointed Director - HR, Global Sales and Film and Electrolytic Business Group in January 2011; Senior Director HR, Global Sales and Film and Electrolytic Business Group in January 2012; Senior Director - HR, Field in September 2012; and Vice President - Global HR Operations in September 2013 prior to his current appointment. Prior to KEMET, he held Human Resources positions of

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increasing responsibility in international corporations including Hewlett-Packard Company, 3Com Corporation and Telindus /Belgacom. Mr. Vetralla holds a Law Degree from the State University of Milan and is a 2011 graduate of the KEMET Leadership Forum.

Other Key Employees

Michael L. Raynor, Vice President and Corporate Controller, was named such in November 2012. Mr. Raynor joined the Company in July 2007 as the Assistant Corporate Controller; in November of 2008 Mr. Raynor was named Director of Financial Planning & Analysis prior to his appointment to his current position. Prior to joining KEMET, Mr. Raynor held various controller level positions with distribution and manufacturing companies. Mr. Raynor received a Bachelor of Arts degree in Economics and a Masters of Accounting from the University of North Carolina at Chapel Hill and is a Certified Public Accountant in the state of North Carolina.

Richard J. Vatinelle, Vice President and Treasurer, was named such in March 2014. Mr. Vatinelle joined the Company in November 2012 as Controller - Tantalum Business Group. Prior to joining KEMET, Mr. Vatinelle served for two years as Regional Controller - Latin America for Leo Pharma A/S, a global manufacturer of pharmaceutical products. From 2007 to 2009 he served as Director of Finance, Policies and Reporting, for Stiefel Laboratories, a pharmaceutical company specialized in dermatology. Mr. Vatinelle’s career in finance includes eight years with Conagra Foods Inc., where he held various international finance roles, and eleven years with Banque Sudameris, an international banking group where he began his career. Mr. Vatinelle holds a Bachelor of Science degree in Finance and International Management from Georgetown University.

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PART II

ITEM 5.    MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Market for Common Stock of the Company

Our common stock trades on the NYSE under the ticker symbol "KEM" (NYSE: KEM). We had 121 stockholders of record as of May 13, 2015. The following table represents the high and low sale prices of our common stock for the periods indicated:

	Fiscal Year 2015				Fiscal Year 2014
Quarter	High		Low		High		Low
First	$	6.07	$	4.51	$	6.83	$	4.00
Second	6.13		3.94		4.98		3.93
Third	4.80		3.92		6.22		4.07
Fourth	4.58		3.75		6.41		5.11

Dividend Policy

We have not declared or paid any cash dividends on our common stock since our initial public offering in October 1992. We do not anticipate paying dividends in the foreseeable future. Any future determination to pay dividends will be at the discretion of our Board and will depend upon, among other factors, the capital requirements, operating results, and our financial condition. In addition, we are restricted from paying cash dividends under the terms of the 10.5% Senior Notes Indenture. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources."

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PERFORMANCE GRAPH

The following graph compares our cumulative total stockholder return for the past five fiscal years, beginning on March 31, 2010, with the Russell 3000 and a peer group (the "Peer Group") comprised of certain companies which manufacture capacitors and with which we generally compete. The Peer Group is comprised of AVX Corporation, Littelfuse, Inc. and Vishay Intertechnology, Inc.

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*

Among KEMET Corporation, the Russell 3000 Index,

and a Peer Group

_______________________________________________________________________________

* $100 invested on 3/31/10 in stock or index, including reinvestment of dividends.

Fiscal year ending March 31.

RETURNS

Years Ending March 31,

	3/10	3/11	3/12	3/13	3/14	3/15
KEMET Corporation	100.00	353.10	222.86	148.81	138.33	98.57
Russell 3000	100.00	115.26	121.10	135.83	163.33	180.08
Peer Group	100.00	172.84	145.95	152.49	186.67	200.34

Unregistered Sales of Equity Securities

We did not sell any of our equity securities during fiscal year 2015 that were not registered under the Securities Act of 1933, as amended (the "Securities Act").

Repurchase of Equity Securities

We did not repurchase any of our equity securities during the three months ended March 31, 2015.

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Equity Compensation Plan Disclosure

The following table summarizes equity compensation plans approved by stockholders and equity compensation plans that were not approved by stockholders as of March 31, 2015:

	(a)			(b)		(c)
Plan category	Number of securities to be issued upon exercise of outstanding options, warrants, and rights			Weighted-average exercise price of outstanding options, warrants, and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Equity compensation plans approved by stockholders	3,983,718	(1	)	$	9.34	2,605,156
Equity compensation plans not approved by stockholders	—			—		—
Total	3,983,718			$	9.34	2,605,156

(1) Includes 997,920 shares subject to outstanding LTIP Awards (time-based), 451,954 shares subject to outstanding LTIP Awards (performance-based) and 999,867 outstanding non-vested restricted shares of Common Stock; the weighted-average exercise price does not take into account these shares as they have no exercise price.

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ITEM 6.    SELECTED FINANCIAL DATA.

The following table summarizes our selected historical consolidated financial information for each of the last five years. The selected financial information under the captions "Income Statement Data," "Per Share Data," "Balance Sheet Data," and "Other Data" shown below has been derived from our audited consolidated financial statements. This table should be read in conjunction with other consolidated financial information of KEMET, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements, included elsewhere herein. The data set forth below may not be indicative of our future financial condition or results of operations (see Item 1A, "Risk Factors") (amounts in thousands except per share amounts):

	Fiscal Years Ended March 31,
	2015			2014			2013			2012(1)			2011
Income Statement Data:
Net sales	$	823,192		$	833,666		$	823,903		$	924,052		$	986,480
Operating income (loss)	22,378			(18,211		)	(35,080		)	28,083			123,891
Interest income	(15		)	(195		)	(139		)	(175		)	(218		)
Interest expense	40,701			40,962			41,331			28,567			30,175
Income (loss) from continuing operations	(19,522		)	(64,869		)	(78,512		)	(2,350		)	58,175
Income (loss) from discontinued operations, net of income tax expense (benefit)	5,379			(3,634		)	(3,670		)	9,042			4,869
Net income (loss)	(14,143		)	(68,503		)	(82,182		)	6,692			63,044
Per Share Data:
Net income (loss) per basic share:
Income (loss) from continuing operations	$	(0.43	)	$	(1.44	)	$	(1.75	)	$	(0.05	)	$	1.95
Income (loss) from discontinued operations, net of income tax expense (benefit)	$	0.12		$	(0.08	)	$	(0.08	)	$	0.21		$	0.16
Net income (loss)	$	(0.31	)	$	(1.52	)	$	(1.83	)	$	0.16		$	2.11
Net income (loss) per diluted share:
Income (loss) from continuing operations	$	(0.43	)	$	(1.44	)	$	(1.75	)	$	(0.04	)	$	1.13
Income (loss) from discontinued operations, net of income tax expense (benefit)	$	0.12		$	(0.08	)	$	(0.08	)	$	0.17		$	0.09
Net income (loss)	$	(0.31	)	$	(1.52	)	$	(1.83	)	$	0.13		1.22
Balance Sheet Data:
Total assets	$	752,792		$	843,667		$	911,591		$	980,862		$	884,309
Working capital	239,107			233,744			261,945			396,494			316,605
Long-term debt, less current portion(2)	390,409			391,292			372,707			345,380			231,215
Other non-current obligations	57,131			55,864			69,022			101,229			59,727
Stockholders' equity	164,682			221,884			276,916			358,996			359,753
Other Data:
Cash flow provided by (used in) operating activities	$	24,402		$	(6,746	)	$	(22,827	)	$	80,730		$	113,968
Capital expenditures	22,232			32,147			46,174			49,314			34,989
Research and development	25,802			24,466			26,876			27,765			24,597

_______________________________________________________________________________

(1) In fiscal year 2012, the Company acquired KEMET Foil on June 13, 2011 and Blue Powder on February 21, 2012.

(2) In fiscal years 2013, 2012 and 2011, the Company issued $15.0 million, $110.0 million and $230.0 million, respectively of 10.5% Senior Notes. In fiscal year 2013, the Company received a $24.0 million Advance Payment, as defined herein, from an original equipment manufacturer and in fiscal year 2015 this Advance Payment was repaid in full. In fiscal years 2015 and 2014, the Company had $33.4 million and $18.4 million, respectively, outstanding under a Loan and Security Agreement (the "Loan and Security Agreement") with Bank of America, N.A.

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ITEM 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion and analysis provides information that we believe is useful in understanding our operating results, cash flows, and financial condition for the three fiscal years ended March 31, 2015, 2014, and 2013. The discussion should be read in conjunction with, and is qualified in its entirety by reference to, the consolidated financial statements and related notes appearing elsewhere in this report. The discussions in this document contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties. Our actual future results could differ materially from those discussed here. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the Item 1A, "Risk Factors" and, from time to time, in our other filings with the Securities and Exchange Commission.

Our Competitive Strengths

We believe that our Company benefits from the following competitive strengths:

Strong Customer Relationships

We have a large and diverse customer base. We believe that our consistent emphasis on quality control and history of performance establishes loyalty with OEMs, EMSs and distributors. Our customer base includes most of the world's major electronics OEMs (including Alcatel-Lucent USA, Inc., Bosch Group, Cisco Systems, Inc., Continental AG, Dell Inc., Hewlett-Packard Company, International Business Machines Corporation, Intel Corporation, Motorola, Inc., Nokia Corporation, and TRW Automotive), EMSs (including Celestica Inc., Flextronics International LTD, Jabil Circuit, Inc. and Sanmina-SCI Corporation) and distributors (including TTI, Inc., Arrow Electronics, Inc. and Avnet, Inc.). Our strong, extensive and efficient worldwide distribution network is one of our differentiating factors. We believe our ability to provide innovative and flexible service offerings, superior customer support and focus on speed-to-market result in a more rewarding customer experience, earning us a high degree of customer loyalty.

Breadth of Our Diversified Product Offering and Markets

We believe that we have the most complete line of primary capacitor types, across a full spectrum of dielectric materials including tantalum, multilayer ceramic, solid and electrolytic aluminum and film capacitors. As discussed below, our private label partnership with NEC TOKIN has expanded our product offerings and markets. As a result, we believe we can satisfy virtually all of our customers' capacitance needs, thereby strengthening our position as their supplier of choice. We sell our products into a wide range of different end-markets, including computing, industrial, telecommunications, transportation, consumer, defense and healthcare across all geographic regions. No single industry accounted for more than 30% of net sales although, one customer, an electronics distributor, accounted for more than 10% of our net sales in fiscal year 2015. No single end use customer accounted for more than 6% of our net sales in fiscal year 2015. We believe that well-balanced product, geographic and customer diversification helps us mitigate some of the negative financial impact through economic cycles.

Leading Market Positions and Operating Scale

Based on net sales, we believe that we are the largest manufacturer of tantalum capacitors in the world and one of the largest manufacturers of direct current film capacitors in the world and have a significant market position in the specialty ceramic and custom wet aluminum electrolytic markets. As discussed below, our private label partnership with NEC TOKIN allows us to achieve true scale in operations to manage raw materials sourcing as well as maximize efficiencies. We believe that our leading market positions and operating scale allow us to realize production efficiencies, leverage economies of scale and capitalize on growth opportunities in the global capacitor market.

Strong Presence in Specialty Products

We engage in design collaboration with our customers in order to meet their specific needs and provide them with customized products satisfying their engineering specifications. During fiscal years 2015 and 2014, respectively, specialty products accounted for 40.5% and 46.1% of our revenue. By allocating an increasing portion of our management resources and research and development ("R&D") investment (particularly though our partnership with NEC TOKIN discussed below) to specialty products, we have established ourselves as one of the leading innovators in this fast growing emerging segment of the market, which includes healthcare, renewable energy, telecommunication infrastructure and oil and gas.

Low-Cost and Strategic Locations

We believe our plants in China, Mexico, Bulgaria and Macedonia have some of the lowest cost production facilities in the industry. Many of our key customers have relocated their production facilities to Asia, particularly China. We believe our

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manufacturing facilities in China are in close proximity to the large and growing Chinese market. In addition, we have the ability to increase capacity and change product mix to meet our customers' needs.

Our Brand

Founded by Union Carbide in 1919 as KEMET Laboratories, we believe that we have established a reputation as a high quality, efficient and affordable partner that sets our customers' needs as the top priority. This has allowed us to successfully attract loyal clientele and enabled us to expand our operations and market share over the past few years. We believe our commitment to addressing the needs of the industry in which we operate has differentiated us from our competitors and established us as the "Easy-To-Buy-From" company.

Our People

We believe that we have successfully developed a unique corporate culture based on innovation, customer focus and commitment. We have a strong, highly experienced and committed team in each of our markets. Many of our professionals have developed unparalleled experience in building leadership positions in new markets, as well as successfully integrating acquisitions. Our 15 member executive management team has an average of 18 years of experience with us and an average of over 26 years of experience in the manufacturing industry.

Business Strategy

Our strategy is to use our position as a leading, high-quality manufacturer of capacitors to capitalize on the increasingly demanding requirements of our customers. Key elements of our strategy include:

One KEMET Campaign.

We continue to focus on improving our commercial and technological capabilities through various initiatives that all fall under our One KEMET campaign. The One KEMET campaign aims to ensure that we as a company are focused on the same goals and working with the same processes and systems to ensure consistent quality and service that allow us to provide our customers with the technologies they require at a competitive "total cost of ownership". This effort was launched to ensure that, as we continue to grow, we not only remain grounded in our core principles but that we also use those principles, operating procedures and systems as the foundation from which to expand. These initiatives include our Lean and Six Sigma culture evolution, our global customer accounts management program and our move toward a philosophy of being "easy to design-in."

Develop Our Significant Customer Relationships and Industry Presence.

We intend to continue to be responsive to our customers' needs and requirements and to make order entry and fulfillment easier, faster, more flexible and more reliable for our customers, by focusing on building products around customers' needs, by giving decision making authority to customer-facing personnel and by providing purpose-built systems and processes.

Continue to Pursue Low-Cost Production Strategy.

We continue to evaluate and are actively pursuing measures that will allow us to maintain our position as a low-cost producer of capacitors with facilities close to our customers. We have shifted and will continue to shift production to low cost locations in order to reduce material and labor costs. We have expanded our manufacturing to Macedonia which has low production costs. Additionally, we are focused on developing more cost-efficient manufacturing equipment and processes, designing manufacturing plants for more efficient production and reducing work-in-process ("WIP") inventory by building products from start to finish in one factory. Furthermore, we continue to implement the Lean and Six Sigma methodology to drive towards zero product defects so that quality remains a given in the minds of our customers.

Leverage Our Technological Competence and Expand Our Leadership in Specialty Products

We continue to leverage our technological competence and partnership with NEC TOKIN to introduce new products in a timely and cost-efficient manner and generate an increasing portion of our sales from new and customized solutions to meet our customers' varied and evolving capacitor needs as well as to improve financial performance. We believe that by continuing to build on our strength in the higher growth and higher margin specialty segments of the capacitor market, we will be well-positioned to achieve our long-term growth objectives while also improving our profitability. During fiscal year 2015, we introduced 2,845 new products of which 620 were first to market, and specialty products accounted for 40.5% of our revenue over this period.

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Further Expand Our Broad Capacitance Capabilities

We identify ourselves as "The Electronic Components Company" and strive to be the supplier of choice for all our customers' capacitance needs across the full spectrum of dielectric materials including tantalum, multilayer ceramic, solid and electrolytic aluminum, film and paper. As discussed below, through our partnership with NEC TOKIN we have further expanded our product offerings. While we believe we have the most complete line of capacitor technologies across these primary capacitor types, we intend to continue to research and pursue additional capacitance technologies and solutions in order to maximize the breadth of our product offerings.

Selectively Target Complementary Acquisitions and Equity Investments

As strategic opportunities are identified, we will evaluate and possibly pursue them if they would enable us to enhance our competitive position and expand our market presence. Our strategy is to acquire complementary capacitor and other related businesses that would allow us to leverage our business model, potentially including those involved in other passive components that are synergistic with our customers' technologies and our current product offerings. For example, in fiscal year 2012, we acquired KEMET Foil and Blue Powder which has allowed us to vertically integrate certain manufacturing processes within Film and Electrolytic and Solid Capacitors, respectively. In addition, on February 1, 2013, KEC, a wholly owned subsidiary of the Company, acquired a 34% economic interest in NEC TOKIN, a manufacturer of tantalum capacitors and electro-magnetic, electro-mechanical and access devices.

Promote the KEMET Brand Globally

We are focused on promoting the KEMET brand globally by highlighting the high-quality and high reliability of our products and our superior customer service. We will continue to market our products to new and existing customers around the world in order to expand our business. We continue to be recognized by our customers as a leading global supplier. For example, in calendar year 2014, we received the “Supplier Excellence Award” from TTI, Inc. and the“Perfect Order Index” award from Arrow Electronics, Inc., both of which are electronics distributors.

Global Sales & Marketing Strategy

Our motto "Think Global Act Local" describes our approach to sales and marketing. Each of our three sales regions (Americas, EMEA and APAC) has account managers, field application engineers and strategic marketing managers. In addition, we also have local customer and quality-control support in each region. This organizational structure allows us to respond to the needs of our customers on a timely basis and in their native language. The regions are managed locally and report to a senior manager who is on the KEMET Leadership Team. Furthermore, this organizational structure ensures the efficient communication of our global goals and strategies and allows us to serve the language, cultural and other region-specific needs of our customers.

Partnership with NEC TOKIN

Through our cross licensing agreement and private label partnership with NEC TOKIN we have expanded product offerings and markets for both KEMET and NEC TOKIN. KEMET’s strong presence in the western hemisphere and the excellent NEC TOKIN position in Japan and Asia significantly enhance the customer reach for both companies. Through this partnership we can achieve true scale in operations allowing us to manage raw materials sourcing as well as maximize efficiencies and best practices in manufacturing and product development. We believe that the international management team of KEMET and NEC TOKIN allows us to be more sensitive and aware of region-specific business needs than our competitors. Combining our R&D capabilities and university relationships will allow us to be on the forefront of new developments and technological advancements in the capacitor industry. Leveraging R&D investment in both Japan and the U.S enables KEMET to diversify beyond capacitors in the passives market as a result of the NEC TOKIN partnership.

Recent Developments and Trends

Net sales of $823.2 million in fiscal year 2015decreased1.3% from $833.7 million in fiscal year 2014. Capacitor unit sales volumes decreased 0.9% for fiscal year 2015 as compared to fiscal year 2014. Average selling prices for capacitors decreased 0.4% for fiscal year 2015 as compared to fiscal year 2014.

Amendment to the Revolving Line of Credit

On December 19, 2014, KEMET Electronics Corporation (“KEC”), KEMET Foil Manufacturing, LLC, KEMET Blue Powder Corporation, The Forest Electric Company (collectively, the “U.S. Borrowers”) and KEMET Electronics Marketing (S) Pte Ltd. (the “Singapore Borrower”), the financial institutions party thereto (collectively, the “Lenders”) and Bank of America, N.A., as agent for the Lenders (the “Agent”) entered into an amendment to the Loan and Security Agreement dated September 30, 2010, as amended, which prior to the amendment provided a $50.0 million revolving line of credit. The terms of the

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amendment are described within "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources."

Advance Payment from OEM

In the fiscal year ended March 31, 2015, at our discretion, we repaid the outstanding balance on the Advance Payment (as defined in Note 2, Debt) primarily using the revolving line of credit; at which time the related standby letter of credit of $16.0 million was released. The early extinguishment of debt resulted in a gain of $1.0 million which was included on the line item “Other (income) expense, net” in the Consolidated Statement of Operations.

Sale of property

In the fiscal year ended March 31, 2015, we sold our plant located in Vergato, Italy for $2.0 million which resulted in a $0.3 million gain which is included on the line item "Net (gain) loss on sales and disposals of assets" in the Consolidated Statement of Operations.

Equity Investment

KEC's First and Second Call Options (as defined in Note 5, "Investment in NEC TOKIN") to purchase additional capital stock of NEC TOKIN expired on April 30, 2015 without being exercised. From April 1, 2015 through May 31, 2018, NEC Corporation of Japan may exercise its Put Option, provided that KEC's payment of the Put Option price is permitted under the 10.5% Senior Notes and Loan and Security Agreement. The Company has marked these options to fair value and in the fiscal year ended March 31, 2015 recognized a $2.1 million gain, which was included on the line item “Other (income) expense, net” in the Consolidated Statement of Operations. The line item “Other assets” on the Consolidated Balance Sheets includes $5.7 million and $3.6 million, respectively as of March 31, 2015 and March 31, 2014 related to the options.

Restructuring

In the fiscal year ended March 31, 2015 we incurred $13.0 million in restructuring charges including $10.3 million related to personnel reduction costs and $2.7 million of manufacturing relocation costs.

Discontinued Operation

The Film and Electrolytic business group completed the sale of its machinery division in April 2014, which resulted in a $5.6 million net gain on sale of the business (after income tax expense) offset by a loss from machinery operations of $0.3 million during the fiscal year ended March 31, 2015 resulting in a net income on discontinued operations of $5.4 million.

Subsequent Event

On April 1, 2015 KEMET purchased IntelliData, Inc., a Greenwood Village, Colorado-based developer of digital solutions supporting discovery, decision support, and the sales and marketing of electronic components. As a KEMET vendor since 2000, IntelliData provides a variety of content automation and delivery tools and services. IntelliData was founded in 1999 by electronics industry executives. IntelliData's database and software products support more than 560 electronic component manufacturers delivering power and efficiency to design/selection, decision support, sales and marketing.

Off-Balance Sheet Arrangements

As of March 31, 2015, other than operating lease commitments as described in Note 16, "Commitments and Contingencies", we are not a party to any material off-balance sheet financing arrangements that have, or are reasonably likely to have, a current or future material effect on our financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Policies

Our accounting policies are summarized in Note 1, "Organization and Significant Accounting Policies" to the consolidated financial statements. The following identifies a number of policies which require significant judgments and estimates, or are otherwise deemed critical to our financial statements.

Our estimates and assumptions are based on historical data and other assumptions that we believe are reasonable. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. In addition, they affect the reported amounts of revenues and expenses during the reporting period.

Our judgments are based on our assessment as to the effect certain estimates, assumptions, or future trends or events may have on the financial condition and results of operations reported in the consolidated financial statements. Readers should understand that actual future results could differ from these estimates, assumptions, and judgments.

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A quantitative sensitivity analysis is provided where that information is reasonably available, can be reliably estimated and provides material information to investors. The amounts used to assess sensitivity (i.e., 1%, 10%, etc.) are included to allow readers of this Annual Report on Form 10-K to understand a general cause and effect of changes in the estimates and do not represent our predictions of variability. For all of these estimates, it should be noted that future events rarely develop exactly as forecast, and estimates require regular review and adjustment. We believe the following critical accounting policies contain the most significant judgments and estimates used in the preparation of the consolidated financial statements:

REVENUE RECOGNITION.    We ship products to customers based upon firm orders and revenue is recognized when the sales process is complete. This occurs when products are shipped to the customer in accordance with the terms of an agreement of sale, there is a fixed or determinable selling price, title and risk of loss have been transferred and collectability is reasonably assured. Shipping and handling costs are included in cost of sales.

A portion of sales is related to products designed to meet customer specific requirements. These products typically have stricter tolerances making them useful to the specific customer requesting the product and to customers with similar or less stringent requirements. We recognize revenue when title to the products transfers to the customer.

A portion of sales is made to distributors under agreements allowing certain rights of return and price protection on unsold merchandise held by distributors. Our distributor policy includes inventory price protection and SFSD programs common in the industry. The price protection policy protects the value of the distributors' inventory in the event we reduce our published selling price to distributors. This program allows the distributor to debit us for the difference between our list price and the lower authorized price for specific parts. We establish price protection reserves on specific parts residing in distributors' inventories in the period that the price protection is formally authorized by KEMET.

KEMET's SFSD program provides authorized distributors with the flexibility to meet marketplace prices by allowing them, upon a case-by-case pre-approved basis, to adjust their purchased inventory cost to correspond with current market demand. Requests for SFSD adjustments are considered on an individual basis, require a pre-approved cost adjustment quote from their local KEMET sales representative and apply only to a specific customer, part, a specified special price amount, a specified quantity, and is only valid for a specific period of time.  To estimate potential SFSD adjustments corresponding with current period sales, KEMET records a sales reserve based on historical SFSD credits, distributor inventory levels, and certain accounting assumptions, all of which are reviewed quarterly.  We believe this methodology enables us to make reliable estimates of future adjustments under the SFSD program.   If the historical SFSD run rates used in our calculation were changed by 1% in fiscal year 2015, net sales would be impacted by $1.0 million.

The establishment of these reserves is recognized as a component of the line item "Net sales" on the Consolidated Statements of Operations, while the associated reserves are included in the line item "Accounts receivable" on the Consolidated Balance Sheets. Estimates used in determining sales allowances are subject to various factors. This includes, but is not limited to, changes in economic conditions, pricing changes, product demand, inventory levels in the supply chain, the effects of technological change, and other variables that might result in changes to our estimates.

INVENTORIES.    Inventories are valued at the lower of cost or market. For most of the inventory, cost is determined under the first-in, first-out method. For tool crib, a component of our raw material inventory, cost is determined under the average cost method. The valuation of inventories requires us to make estimates. We also must assess the prices at which we believe the finished goods inventory can be sold compared to its cost. A sharp decrease in demand could adversely impact earnings as the reserve estimates could increase.

PENSION AND POST-RETIREMENT BENEFITS.    Our management, with the assistance of actuarial firms, performs actuarial valuations of the fair values of our pension and post-retirement plans' benefit obligations. We make certain assumptions that have a significant effect on the calculated fair value of the obligations such as the:

• weighted-average discount rate—used to arrive at the net present value of the obligation;

• salary increases—used to calculate the impact future pay increases will have on post-retirement obligations; and

• medical cost inflation—used to calculate the impact future medical costs will have on post-retirement obligations.

We understand that these assumptions directly impact the actuarial valuation of the obligations recorded on the Consolidated Balance Sheets and the income or expense that flows through the Consolidated Statements of Operations.

We base our assumptions on either historical or market data that we consider reasonable. Variations in these assumptions could have a significant effect on the amounts reported in Consolidated Balance Sheets and the Consolidated

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Statements of Operations. The most critical assumption relates to the discount rate. A 25 basis point increase or decrease in the discount rate would result in changes to the projected benefit obligation of $(2.2) million and $2.4 million, respectively.

GOODWILL AND LONG-LIVED ASSETS.    Goodwill, which represents the excess of purchase price over fair value of net assets acquired, and intangible assets with indefinite useful lives are no longer amortized but are tested for impairment at least on an annual basis. We perform our impairment test during the fourth quarter of each fiscal year and when otherwise warranted.

We evaluate our goodwill on a reporting unit basis. This requires us to estimate the fair value of the reporting units based on the future net cash flows expected to be generated. The impairment test involves a comparison of the fair value of each reporting unit, with the corresponding carrying amounts. If the reporting unit's carrying amount exceeds its fair value, then an indication exists that the reporting unit's goodwill may be impaired. The impairment to be recognized is measured by the amount by which the carrying value of the reporting unit's goodwill being measured exceeds its implied fair value. The implied fair value of goodwill is the excess of the fair value of the reporting unit over the sum of the amounts assigned to identified net assets. As a result, the implied fair value of goodwill is generally the residual amount that results from subtracting the value of net assets including all tangible assets and identified intangible assets from the fair value of the reporting unit's fair value. We determine the fair value of our reporting units using an income-based, discounted cash flow ("DCF") analysis, and market-based approaches (Guideline Publicly Traded Company Method and Guideline Transaction Method) which examine transactions in the marketplace involving the sale of the stocks of similar publicly-owned companies, or the sale of entire companies engaged in operations similar to KEMET. In addition to the above described reporting unit valuation techniques, our goodwill impairment assessment also considers our aggregate fair value based upon the value of our outstanding shares of common stock.

We evaluate our goodwill on a reporting unit basis. Our goodwill balance of $35.6 million is related to the KEMET Blue Powder Corporation (“Blue Powder”), a reporting unit within the Solid Capacitors Business Group. As part of our annual impairment testing we determine the fair value of our Blue Powder reporting unit using an income-based, discounted cash flow ("DCF") analysis. Significant assumptions used in the DCF analysis are:

• the discount rate based on the weighted average cost of capital (“WACC”),

• estimated production and Solid Capacitor consumption growth rates, and

• the estimated market price and production cost for tantalum powder.

Our WACC is determined through market comparisons combined with small stock and equity risk premiums. Blue Powder’s production growth rates are estimated through KEMET’s three-year strategic plan. Since the market price for tantalum powder is difficult to forecast, as it varies depending on supply and demand, we kept the market price fixed throughout the analysis at the average price KEMET paid for tantalum powder in the reporting period. A decrease in tantalum powder production or the market value of tantalum powder or an increase in raw material prices or production costs could negatively impact our estimated fair value for Blue Powder in the future.

Long-lived assets and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset or group of assets may not be recoverable. A long-lived asset classified as held for sale is initially measured and reported at the lower of its carrying amount or fair value less cost to sell.

Long-lived assets to be disposed of other than by sale are classified as held and used until the long-lived asset is disposed of.

Tests for the recoverability of a long-lived asset to be held and used are performed by comparing the carrying amount of the long-lived asset to the sum of the estimated future undiscounted cash flows expected to be generated by the asset. In estimating the future undiscounted cash flows, we use future projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the assets. These assumptions include, among other estimates, periods of operation and projections of sales and cost of sales. Changes in any of these estimates could have a material effect on the estimated future undiscounted cash flows expected to be generated by the asset. If it is determined that the book value of a long-lived asset is not recoverable, an impairment loss would be calculated equal to the excess of the carrying amount of the long-lived asset over its fair value. The fair value is calculated as the discounted cash flows of the underlying assets.

In the first quarter of fiscal year 2013, due to reduced earnings and cash flows caused by macro-economic factors and excess capacity issues in our industry, the Company recorded a $1.1 million goodwill impairment charge, which represented all of the goodwill related to the KEMET Foil reporting unit.

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The Company completed its impairment test on goodwill and intangible assets with indefinite useful lives as of January 1, 2015 and concluded that goodwill and indefinite-lived assets were not impaired nor were they at risk of failing step one of the impairment test as the fair value of the assets exceeds the carrying value by more than 200%. A one percent increase or decrease in the discount rate used in the goodwill and indefinite-lived assets valuation would have resulted in changes in the fair value of $(28.5) million and $36.7 million, respectively and would not have resulted in an impairment charge.

INCOME TAXES.    Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates. Valuation allowances are recognized to reduce deferred tax assets to the amount that is more likely than not to be realized.

We believe that it is more likely than not that a portion of the deferred tax assets in various jurisdictions will not be realized, based on the scheduled reversal of deferred tax liabilities, the recent history of cumulative losses, and the insufficient evidence of projected future taxable income to overcome the loss history. We have provided a valuation allowance related to any benefits from income taxes resulting from the application of a statutory tax rate to the deferred tax assets. We continue to have net deferred tax assets (future tax benefits) in several jurisdictions which we expect to realize, assuming, based on certain estimates and assumptions, sufficient taxable income can be generated to utilize these deferred tax benefits. If these estimates and related assumptions change in the future, we may be required to reduce the value of the deferred tax assets resulting in additional tax expense.

The accounting rules require that we recognize in our financial statements, the impact of a tax position, if that position is "more likely than not" of being sustained on audit, based on the technical merits of the position. Any accruals for estimated interest and penalties would be recorded as a component of income tax expense.

To the extent that the provision for income taxes changed by 1% of loss before income taxes, consolidated net loss would change by $0.1 million in fiscal year 2015.

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Results of Operations

Historically, revenues and earnings may or may not be representative of future operating results due to various economic and other factors. The following table sets forth the Consolidated Statements of Operations for the periods indicated (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Net sales	$	823,192		$	833,666		$	823,903
Operating costs and expenses:
Cost of sales	663,683			712,925			697,076
Selling, general and administrative expenses	98,533			95,856			107,620
Research and development	25,802			24,466			26,876
Restructuring charges	13,017			14,122			18,719
Write down of long-lived assets	—			4,476			7,582
Goodwill Impairment	—			—			1,092
Net loss on sales and disposals of assets	(221		)	32			18
Operating (loss) income	22,378			(18,211		)	(35,080		)
Interest income	(15		)	(195		)	(139		)
Interest expense	40,701			40,962			41,331
Other (income) expense, net	(6,182		)	(2,681		)	(2,295		)
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(12,126		)	(56,297		)	(73,977		)
Income tax expense (benefit)	5,227			1,482			3,281
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(17,353		)	(57,779		)	(77,258		)
Equity income (loss) from NEC TOKIN	(2,169		)	(7,090		)	(1,254		)
Income (loss) from continuing operations	(19,522		)	(64,869		)	(78,512		)
Income (loss) from discontinued operations, net of income tax expense (benefit) of $1,976, $(98) and $37, respectively	5,379			(3,634		)	(3,670		)
Net income (loss)	$	(14,143	)	$	(68,503	)	$	(82,182	)

Consolidated Comparison of Fiscal Year 2015 to Fiscal Year 2014

Net sales:

Net sales of $823.2 million in fiscal year 2015decreased1.3% from $833.7 million in fiscal year 2014. Film and Electrolytic and Solid Capacitor sales decreased by $5.3 million and $5.2 million, respectively. Capacitor unit sales volumes decreased 0.9% for fiscal year 2015 as compared to fiscal year 2014. Average selling prices for capacitors decreased 0.4% for fiscal year 2015 as compared to fiscal year 2014 due to an unfavorable $9.3 million impact on net sales related to foreign exchange and an unfavorable product mix shift in Film and Electrolytic. These unfavorable impacts on average selling prices were partially offset by an increase in sales of higher priced specialty products within Solid Capacitors.

In fiscal years 2015 and 2014, net sales by region were as follows (dollars in millions):

	Fiscal Year 2015					Fiscal Year 2014
	Net Sales		% of Total			Net Sales		% of Total
Americas	$	260.0	32	%	Americas	$	262.9	31	%
APAC	281.8		34	%	APAC	282.3		34	%
EMEA	281.4		34	%	EMEA	288.5		35	%
Total	$	823.2			Total	$	833.7

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In fiscal years 2015 and 2014, the percentages of net sales by channel to total net sales were as follows:

	Fiscal Year 2015					Fiscal Year 2014
	Net Sales		% of Total			Net Sales		% of Total
Distributors	$	366.3	45	%	Distributors	$	377.0	45	%
EMS	151.2		18	%	EMS	139.4		17	%
OEM	305.7		37	%	OEM	317.3		38	%
Total	$	823.2			Total	$	833.7

Gross margin:

Gross margin for the fiscal year ended March 31, 2015 of $159.5 million (19.4% of net sales) increased$38.8 million or 32.1% from $120.7 million (14.5% of net sales) in the prior fiscal year. The primary contributor to the gross margin improvement was a $36.9 million gross margin increase in Solid Capacitors for the fiscal year 2015 compared to fiscal year 2014 corresponding with further cost savings from vertical integration, an increase in average selling prices, and sales of higher margin specialty products. The improvement in Solid Capacitors' gross margin was supplemented by a $1.9 million increase in Film and Electrolytic gross margin for the fiscal year 2015 compared to fiscal year 2014 and is primarily attributable to cost reduction activities.

Selling, general and administrative expenses ("SG&A"):

SG&A expenses of $98.5 million (12.0% of net sales) for fiscal year 2015increased$2.7 million or 2.8% compared to $95.9 million (11.5% of net sales) for fiscal year 2014. The increase consists primarily of the following items: a $4.7 million increase in payroll expenses primarily due to an increase in bonus and incentive compensation, a $0.8 million increase in professional fees, a $0.8 million increase in software expense, and a $0.7 million increase in legal fees. Partially offsetting these increases was a $1.2 million decrease in depreciation expense, a $0.9 million decrease in office and equipment rent expense, a $0.6 million decrease in ERP integration costs, a $0.5 million decrease in charitable contributions, a $0.5 million decrease in consulting and contractor expenses, a $0.5 million decrease in non-income-related taxes, and a $0.4 million decrease in travel expenses.

Restructuring charges:

Restructuring charges of $13.0 million in fiscal year 2015decreased$1.1 million or 7.8% from $14.1 million in fiscal year 2014.

The Company incurred $13.0 million in restructuring charges in the fiscal year ended March 31, 2015 including $10.3 million of personnel reduction costs. The personnel reduction costs were due to the following: $4.1 million related to planned headcount reductions in Europe (primarily in Landsberg, Germany) as the Company relocates production to lower cost regions; $3.2 million related to a restructuring plan initiated in Italy whereby the Company will reduce the non-manufacturing labor headcount by 50 employees; $1.9 million related to the relocation of certain Solid Capacitor manufacturing from Matamoros, Mexico to Victoria, Mexico; and $1.1 million related to headcount reductions taken as the Company begins to outsource a portion of its information technology function.

The following table summarizes the open severance plans as of March 31, 2015 (amounts in thousands):

	Total Expected Severance		Fiscal Year 2015 Expense		Amount to be Incurred
Europe (primarily Italy and Germany)	$	7,819	$	6,918	$	901
Corporate IT outsourcing	1,956		1,144		812
Matamoros Solid Capacitor	2,450		1,890		560
Total	$	12,225	$	9,952	$	2,273

Relocation costs of $2.7 million include $1.4 million for the exit of Solid Capacitors from Evora, Portugal and the relocation of certain Solid Capacitors manufacturing operations from Evora, Portugal to Victoria, Mexico. In addition, there is $0.4 million for the Landsberg, Germany shut-down including relocating equipment to Pontecchio, Italy; $0.3 million for relocation of certain F&E lines from Monterrey, Mexico and Skopje, Macedonia to China; and $0.5 million for other costs related to shut-downs in Europe and Asia.

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Restructuring charges in the fiscal year ended March 31, 2014 include personnel reduction costs of $10.6 million and manufacturing relocation costs of $3.6 million. The personnel reduction costs are comprised of the following: $1.9 million related to the closure of a portion of our innovation center in the U.S.; $1.2 million related to the reduction of the solid capacitor production workforce in Mexico; $1.1 million related to the Company’s initiative to reduce overhead; $0.5 million in termination benefits associated with converting the Weymouth, United Kingdom manufacturing facility into a technology center; $4.5 million related to headcount reductions of 126 employees in Evora, Portugal due to the relocation of certain Solid Capacitors manufacturing operations to Mexico; $0.9 million related to a headcount reduction of 31 employees due to the consolidation of manufacturing facilities in Italy and $0.4 million related to a temporary "lay-off" plan in Italy.

Research and development:

R&D expenses of $25.8 million (3.1% of net sales) for fiscal year 2015increased$1.3 million or 5.5% compared to $24.5 million (2.9% of net sales) for fiscal year 2014. The increase is primarily a result of additional product testing and an increase in headcount.

Write down of long-lived assets:

In fiscal year 2013, the Company initiated a restructuring plan for its Evora, Portugal manufacturing operations. As a part of ongoing restructuring activities, the Company has relocated certain Solid Capacitor manufacturing operations from the Evora, Portugal facility to a manufacturing facility in Mexico and the remaining Solid Capacitor equipment in Portugal was disposed. In fiscal year 2014, Solid Capacitors incurred a $3.9 million impairment charge due to a decrease in forecasted revenues because production was relocated to Mexico sooner than originally planned. The Company used an income approach to estimate the fair value of the assets to be disposed. In addition, during fiscal year 2014, Film and Electrolytic incurred impairment charges totaling $0.6 million related to manufacturing equipment in a facility in Italy.

Operating income (loss):

Operating income for fiscal year 2015 of $22.4 millionimproved$40.6 million compared to an operating loss of $18.2 million in fiscal year 2014. The improvement was primarily due to a $38.8 million increase in gross margin, a $4.5 million decrease in write down of long-lived assets, and a $1.1 million decrease in restructuring charges. These improvements were partially offset by a $2.7 million increase in SG&A expenses and a $1.3 million increase in R&D expenses.

Non-operating (income) expense, net:

Non-operating (income) expense, net was a net expense of $34.5 million in fiscal year 2015 compared to a net expense of $38.1 million in fiscal year 2014. The $3.6 millionimprovement is primarily attributable to a $4.2 million foreign exchange gain in fiscal year 2015 compared to a $0.3 million foreign exchange gain in fiscal year 2014, a $1.0 million gain from the extinguishment of our Advance Payment from OEM debt in fiscal year 2015, and during fiscal year 2014 we had incurred a $1.4 million charge related to the write off of a long-term note receivable. Partially offsetting these improvements was $1.1 million in professional fees related to financing activities and a $2.1 million increase in the value of the NEC TOKIN options recognized in fiscal year 2015 compared to a $3.1 million increase in fiscal year 2014.

Income taxes:

The income tax expense from continuing operations was $5.2 million in fiscal year 2015 compared to an income tax expense of $1.5 million in fiscal year 2014. The fiscal year 2015 income tax expense is comprised of an income tax expense resulting from operations in certain foreign jurisdictions totaling $5.0 million, a $0.3 million income tax expense allocated from outside of continuing operations to continuing operations, and $0.1 million of state income tax benefit. No U.S. federal income tax benefit is recognized for the U.S. taxable loss for fiscal year 2015 due to a valuation allowance provided for U.S. net operating losses.

Equity loss from NEC TOKIN:

In fiscal year 2015, we incurred an equity loss related to our 34% economic interest in NEC TOKIN of $2.2 million compared to a loss of $7.1 million in fiscal year 2014 due primarily to a $5.4 million improvement in operating income, a $3.8 million equity adjustment for the deferred tax impact related to the sale of land in fiscal year 2014 and a $0.3 million increase in income from discontinued operations. The improvement in operating income was primarily driven by sales mix improvement, improvements in manufacturing efficiencies, and a reduction of personnel costs. Partially offsetting these favorable items was a net $1.7 million accrual related to estimated antitrust investigation fines (net of KEMET's portion of a $25 million indemnity asset to be received from NEC, of which KEMET's portion is $8.5 million), a $1.4 million increase in income tax expenses which primarily relates to an income tax penalty incurred in Vietnam and a $1.3 million increase in the equity adjustments related to amortization, depreciation and inventory profit elimination.

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Segment Comparison of Fiscal Year 2015 to Fiscal Year 2014:

The following table sets forth the operating income (loss) for each of our business segments for the fiscal years 2015 and 2014. The table also sets forth each of the segments' net sales as a percentage of total net sales and total operating income (loss) as a percentage of total net sales (amounts in thousands, except percentages):

	For the Fiscal Years Ended
	March 31, 2015					March 31, 2014
	Amount			% to Total Sales		Amount			% to Total Sales
Net sales
Solid Capacitors	$	621,275		75.5	%	$	626,494		75.1	%
Film and Electrolytic	201,917			24.5	%	207,172			24.9	%
Total	$	823,192		100.0	%	$	833,666		100.0	%
Operating income (loss)
Solid Capacitors	$	135,946				$	91,848
Film and Electrolytic	(16,685		)			(17,587		)
Corporate	(96,883		)			(92,472		)
Total	$	22,378		2.7	%	$	(18,211	)	(2.2	)%

Solid Capacitors

The table below sets forth Net sales, Operating income and Operating income as a percentage of net sales for Solid Capacitors for fiscal years 2015 and 2014 (amounts in thousands, except percentages):

	For the Fiscal Years Ended
	March 31, 2015				March 31, 2014
	Amount		% to Net Sales		Amount		% to Net Sales
Tantalum product line net sales	$	377,893			$	390,422
Ceramic product line net sales	243,382				236,072
Net sales	621,275				626,494
Segment operating income	135,946		21.9	%	91,848		14.7	%

Net sales:

Net sales of $621.3 million in fiscal year 2015decreased$5.2 million or 0.8% from $626.5 million in fiscal year 2014. Tantalum product line net sales of $377.9 million in fiscal year 2015decreased$12.5 million or 3.2% from $390.4 million in fiscal year 2014 primarily due to unfavorable foreign exchange as well as a shift away from sales of lower margin commercial products. Ceramic product line net sales of $243.4 million in fiscal year 2015increased$7.3 million or 3.1% from $236.1 million in fiscal year 2014 primarily due to growth in specialty products across all regions. Unit sales volume for fiscal year 2015 decreased 1.3% compared to fiscal year 2014. The average selling price in fiscal year 2015 increased 0.4% compared to fiscal year 2014 primarily driven by an increase in higher priced specialty products.

Segment Operating Income:

Segment operating income of $135.9 million for fiscal year 2015improved$44.1 million or 48.0% from $91.8 million for fiscal year 2014. The increase in segment operating income is primarily attributable to the following: an increase in gross margin of $36.9 million, a decrease in restructuring charges of $4.8 million, a $3.9 million decrease in write down of long-lived assets, and a $0.6 million decrease in SG&A expenses. The improvement in gross margin was mainly driven by continued improvement seen in vertical integration, an increase in sales of higher margin specialty products, and lower manufacturing costs as a result of restructuring efforts which moved production from Evora, Portugal to our Mexico facilities. These improvements were partially offset by a $0.7 million increase in R&D expenses and a $0.6 million loss on disposals of fixed assets for fiscal year 2015 compared to a gain on disposals of fixed assets of $0.7 million in fiscal year 2014.

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Film and Electrolytic

The table below sets forth Net sales, Operating loss and Operating loss as a percentage of net sales for Film and Electrolytic for the fiscal years 2015 and 2014 (amounts in thousands, except percentages):

	For the Fiscal Years Ended
	March 31, 2015					March 31, 2014
	Amount			% to Net Sales		Amount			% to Net Sales
Net sales	$	201,917				$	207,172
Segment operating loss	(16,685		)	(8.3	)%	(17,587		)	(8.5	)%

Net sales:

Net sales of $201.9 million in fiscal year 2015decreased$5.3 million or 2.5% from $207.2 million in fiscal year 2014. Capacitor unit sales volume for fiscal year 2015 increased 11.7% compared to fiscal year 2014 driven by an overall increase in customer demand across all regions. This increase was offset by a $6.0 million unfavorable impact related to foreign exchange (primarily the decrease in the euro) and an 8.9% decrease in average selling prices at comparable exchange rates for fiscal year 2015 compared to fiscal year 2014 due to an unfavorable shift in product line mix.

Segment Operating loss:

Segment operating loss of $16.7 million in fiscal year 2015improved$0.9 million or 5.1%, from $17.6 million of segment operating loss in fiscal year 2014. The improvement was attributable to a $1.9 million improvement in gross margin, a $0.6 million decrease in write down of long-lived assets, and a $1.0 million gain on disposals of fixed assets for fiscal year 2015 compared to a loss on disposals of fixed assets of $0.8 million in fiscal year 2014. The improvement in gross margin is due to realized cost reductions achieved through our restructuring and cost reduction efforts. Additional cost reductions are expected to be realized in fiscal year 2016 as inventory produced at lower standard costs are sold. The improvements were partially offset by a $2.6 million increase in restructuring charges, a $0.6 million increase in SG&A expenses, and a $0.2 million increase in R&D expenses.

Consolidated Comparison of Fiscal Year 2014 to Fiscal Year 2013

Net sales:

Net sales of $833.7 million in fiscal year 2014 increased 1.2% from $823.9 million in fiscal year 2013. Film and Electrolytic and Solid Capacitor sales increased by $5.6 million and $4.2 million, respectively. Capacitor unit sales volumes increased 11.0 % for fiscal year 2014 as compared to fiscal year 2013. Average selling prices for capacitors decreased 8.8% for fiscal year 2014 as compared to fiscal year 2013 due to an unfavorable product mix shift in Film and Electrolytic and a shift within Solid Capacitors to increased unit sales volumes of lower priced ceramic product lines across all regions.

In fiscal years 2014 and 2013, net sales by region were as follows (dollars in millions):

	Fiscal Year 2014					Fiscal Year 2013
	Net Sales		% of Total			Net Sales		% of Total
Americas	$	262.9	31	%	Americas	$	244.9	30	%
APAC	282.3		34	%	APAC	294.5		36	%
EMEA	288.5		35	%	EMEA	284.5		34	%
Total	$	833.7			Total	$	823.9

In fiscal years 2014 and 2013, the percentages of net sales by channel to total net sales were as follows:

	Fiscal Year 2014					Fiscal Year 2013
	Net Sales		% of Total			Net Sales		% of Total
Distributors	$	377.0	45	%	Distributors	$	376.9	46	%
EMS	139.4		17	%	EMS	143.2		17	%
OEM	317.3		38	%	OEM	303.8		37	%
Total	$	833.7			Total	$	823.9

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Gross margin:

Gross margin for the fiscal year ended March 31, 2014 of $120.7 million (14.5% of net sales) decreased $6.1 million or 4.8% from $126.8 million (15.4% of net sales) in the prior fiscal year. The primary contributor to the gross margin decline was a $10.5 million gross margin decrease in Solid Capacitors for the fiscal year 2014 compared to fiscal year 2013 corresponding with a decrease in average selling prices. These were partially offset by a $4.4 million increase in Film and Electrolytic gross margin for the fiscal year 2014 compared to fiscal year 2013.

Selling, general and administrative expenses ("SG&A"):

SG&A expenses of $95.9 million (11.5% of net sales) for fiscal year 2014 decreased $11.8 million or 10.9% compared to $107.6 million (13.1% of net sales) for fiscal year 2013. The decrease consists primarily of the following items: a $5.1 million decrease in compensation expenses that resulted from headcount reductions, a $3.5 million decrease in ERP integration costs, a $1.3 million decrease in training and travel as part of overall cost saving initiatives, a $1.2 million decrease in incentive compensation related to stock based compensation, a $0.4 million decrease in Information Technology related to data transmission costs, a $0.4 million decrease in charitable contributions, and a $2.3 million decrease in acquisition fees related to our investment in NEC TOKIN. Partially offsetting these decreases was a $2.5 million increase in depreciation expense.

Restructuring charges:

Restructuring charges of $14.1 million in fiscal year 2014 decreased $4.6 million or 24.6% from $18.7 million in fiscal year 2013.

Restructuring charges in the fiscal year ended March 31, 2014 include personnel reduction costs of $10.6 million and manufacturing relocation costs of $3.6 million. The personnel reduction costs are comprised of the following: $1.9 million related to the closure of a portion of our innovation center in the U.S.; $1.2 million related to the reduction of the solid capacitor production workforce in Mexico; $1.1 million related to the Company’s initiative to reduce overhead; $0.5 million in termination benefits associated with converting the Weymouth, United Kingdom manufacturing facility into a technology center; $4.5 million related to headcount reductions of 126 employees in Evora, Portugal due to the relocation of certain Solid Capacitors manufacturing operations to Mexico; $0.9 million related to a headcount reduction of 31 employees due to the consolidation of manufacturing facilities in Italy and $0.4 million related to a temporary "lay-off" plan in Italy.

In addition to these personnel reduction costs, the Company incurred manufacturing relocation costs of $3.6 million due to the consolidation of Film and Electrolytic manufacturing facilities within Italy and relocation of Film and Electrolytic manufacturing equipment to Evora, Portugal and Skopje, Macedonia and Solid Capacitors manufacturing equipment to Mexico.

The restructuring charges in fiscal year 2013 included termination benefits of $6.1 million related to facility closures in Italy that commenced during fiscal year 2013 and charges of $4.5 million related to a temporary "lay-off" plan in Italy. In addition, we incurred $1.7 million in personnel reduction costs primarily due to headcount reductions within Solid Capacitors' operations in Mexico. In addition to these personnel reduction costs, we incurred manufacturing relocation costs of $1.9 million for relocation of equipment to China and Mexico.

Research and development:

R&D expenses of $24.5 million (2.9% of net sales) for fiscal year 2014 decreased $2.4 million or 9.0% compared to $26.9 million (3.3% of net sales) for fiscal year 2013. The decrease is primarily a result of headcount reductions achieved by leveraging the technology and licensing agreement in place with NEC TOKIN.

Write down of long-lived assets:

As a part of the ongoing restructuring activities, the Company has relocated certain Solid Capacitor manufacturing operations from the Evora, Portugal facility to a manufacturing facility in Mexico and the remaining Solid Capacitor manufacturing equipment in Portugal were disposed. During fiscal year 2013, using an income approach to estimate the fair value of assets to be disposed, the Company incurred impairment charges totaling $3.1 million related to Solid Capacitors. In fiscal year 2014 Solid Capacitors incurred $3.9 million in additional impairment charges due to a decrease in forecasted revenues because production was relocated to Mexico sooner than originally planned. In addition, during fiscal year 2014, Film and Electrolytic incurred impairment charges totaling $0.6 million related to manufacturing equipment in a facility in Italy.

Also in fiscal year 2013 and in connection with the consolidation of two Film and Electrolytic manufacturing facilities within Italy, we incurred impairment charges totaling $4.2 million. Appraisals for these manufacturing facilities indicated there was a decrease in market value and, therefore, the carrying amounts of these manufacturing facilities were reviewed for recoverability. It was determined that the carrying amounts of the manufacturing facilities were not recoverable since they

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exceeded the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). The impairment was measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeded its fair value.

In addition, in fiscal year 2013 we incurred a $0.3 million charge related to the write-off of a trademark which is no longer utilized.

Operating loss:

Operating loss for fiscal year 2014 of $18.2 million improved $16.9 million or 48.1% compared to an operating loss of $35.1 million in fiscal year 2013. The improvement was primarily due to a $11.8 million decrease in SG&A expenses, $4.6 million decrease in restructuring charges, a $3.1 million decrease in write down of long-lived assets, a $2.4 million decrease in R&D expenses and the goodwill impairment of $1.1 million in fiscal year 2013. These improvements were partially offset by a $6.1 million decrease in gross margin.

Non-operating (income) expense, net:

Non-operating (income) expense, net was a net expense of $38.1 million in fiscal year 2014 compared to a net expense of $38.9 million in fiscal year 2013. The decrease is primarily attributable to a $3.1 million increase in the value of the NEC TOKIN options recognized in fiscal year 2014 and a $0.4 million decrease in interest expense. Partially offsetting these improvements was a $0.8 million decrease in non-product scrap and reclaim income and a $1.4 million charge related to the write off of a long-term note receivable.

Income taxes:

The income tax expense from continuing operations was $1.5 million in fiscal year 2014 compared to an income tax expense of $3.3 million in fiscal year 2013. The fiscal year 2014 income tax expense is comprised of an income tax expense resulting from operations in certain foreign jurisdictions totaling $2.8 million, $0.3 million of state income tax and a $1.7 million income tax benefit allocated from outside of continuing operations to continuing operations. No U.S. federal income tax benefit is recognized for the U.S. taxable loss for fiscal year 2014 due to a valuation allowance provided for U.S. net operating losses.

Equity loss from NEC TOKIN:

In fiscal year 2014 we incurred an equity loss from our investment in NEC TOKIN of $7.1 million, compared to a loss of $1.3 million in fiscal year 2013. The increased equity loss primarily relates to an impairment loss recorded by NEC TOKIN related to certain of its fixed assets.

Segment Comparison of Fiscal Year 2014 to Fiscal Year 2013:

The following table sets forth the operating income (loss) for each of our business segments for the fiscal years 2014 and 2013. The table also sets forth each of the segments' net sales as a percentage of total net sales and total operating income (loss) as a percentage of total net sales (amounts in thousands, except percentages):

	For the Fiscal Years Ended
	March 31, 2014					March 31, 2013
	Amount			% to Total Sales		Amount			% to Total Sales
Net sales
Solid Capacitors	$	626,494		75.1	%	$	622,305		75.5	%
Film and Electrolytic	207,172			24.9	%	201,598			24.5	%
Total	$	833,666		100.0	%	$	823,903		100.0	%
Operating income (loss)
Solid Capacitors	$	91,848				$	94,986
Film and Electrolytic	(17,587		)			(31,109		)
Corporate	(92,472		)			(98,957		)
Total	$	(18,211	)	(2.2	)%	$	(35,080	)	(4.3	)%

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Solid Capacitors

The table below sets forth Net sales, Operating income and Operating income as a percentage of net sales for Solid Capacitors for fiscal years 2014 and 2013 (amounts in thousands, except percentages):

	For the Fiscal Years Ended
	March 31, 2014				March 31, 2013
	Amount		% to Net Sales		Amount		% to Net Sales
Tantalum product line net sales	$	390,422			$	412,791
Ceramic product line net sales	236,072				209,514
Net sales	626,494				622,305
Segment operating income	91,848		14.7	%	94,986		15.3	%

Net sales:

Net sales of $626.5 million in fiscal year 2014 increased $4.2 million or 0.7% from $622.3 million in fiscal year 2013. Ceramic product line net sales of $236.1 million in fiscal year 2014 increased $26.6 million or 12.7% from $209.5 million in fiscal year 2013. Tantalum product line net sales of $390.4 million in fiscal year 2014 decreased $22.4 million or 5.4% from $412.8 million in fiscal year 2013. Unit sales volume for fiscal year 2014 increased 11.4% compared to fiscal year 2013. Average selling prices decreased 9.6% in fiscal year 2014 compared to fiscal year 2013 primarily related to a change in product line sales mix driven by a shift to higher volumes of lower priced ceramic products across all regions.

Segment Operating Income:

Segment operating income of $91.8 million for fiscal year 2014 declined $3.1 million or 3.3% from $95.0 million for fiscal year 2013. The decrease in segment operating income is primarily attributable to the following: a decrease in gross margin of $10.5 million, an increase in restructuring charges of $0.8 million and an $0.8 million increase in write down of long-lived assets. These were partially offset by a $6.0 million decrease in SG&A expenses related to lower ERP Integration costs as well as a pension curtailment recognized in fiscal year 2013. In addition, we recognized a $2.5 million decrease in R&D expenses and a $0.5 million improvement on the gain on disposals of fixed assets.

Film and Electrolytic

The table below sets forth Net sales, Operating loss and Operating loss as a percentage of net sales for Film and Electrolytic for the fiscal years 2014 and 2013 (amounts in thousands, except percentages):

	For the Fiscal Years Ended
	March 31, 2014					March 31, 2013
	Amount			% to Net Sales		Amount			% to Net Sales
Net sales	$	207,172				$	201,598
Segment operating loss	(17,587		)	(8.5	)%	(31,109		)	(15.4	)%

Net sales:

Net sales of $207.2 million in fiscal year 2014 increased $5.6 million or 2.8% from $201.6 million in fiscal year 2013. Capacitor unit sales volume for fiscal year 2014 increased 19.3% compared to fiscal year 2013 due to an overall increase in customer demand in APAC and EMEA. Capacitor sales were favorably impacted by $4.2 million related to foreign exchange. These increases were partially offset by an decrease in capacitor average selling prices of 15.2% at comparable exchange rates for fiscal year 2014 compared to fiscal year 2013 due to an unfavorable shift in product line mix.

Segment Operating loss:

Segment operating loss of $17.6 million in fiscal year 2014 improved $13.5 million or 43.5%, from $31.1 million of segment operating loss in fiscal year 2013. The improvement was attributable to a $3.7 million decrease in write down of long-lived assets, a $4.0 million decrease in restructuring charges, a $1.2 million decrease in SG&A expenses and a $4.4 million improvement in gross margin. The improvement in gross margin is due to an increase in unit sales volume as well as reduced costs as a result of our restructuring efforts. In addition, a $1.1 million goodwill impairment related to the KEMET Foil

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reporting unit was recognized in fiscal year 2013. These improvements were partially offset by a $0.6 million increase in the loss on disposal of fixed assets and a $0.3 million increase in R&D expenses.

Liquidity and Capital Resources

Our liquidity needs arise from working capital requirements, acquisitions, capital expenditures, principal and interest payments on debt, and costs associated with the implementation of our restructuring plan. Historically, these cash needs have been met by cash flows from operations, borrowings under credit agreements and existing cash and cash equivalents balances.

Issuance of 10.5% Senior Notes

On May 5, 2010, we completed the issuance of our 10.5% Senior Notes with an aggregate principal amount of $230.0 million which resulted in net proceeds to the Company of $222.2 million. The Company used a portion of the proceeds to repay all of its outstanding indebtedness under the Company's credit facility with K Financing, LLC, the Company's €60 million credit facility and €35 million credit facility with UniCredit Corporate Banking S.p.A. ("UniCredit") and the Company's term loan with a subsidiary of Vishay and used a portion of the remaining proceeds to fund a previously announced tender offer to purchase $40.5 million in aggregate principal amount of the Company's 2.25% Convertible Senior Notes (the "Convertible Notes") and to pay costs incurred in connection with the issuance, the tender offer and the foregoing repayments.

The 10.5% Senior Notes were issued pursuant to a 10.5% Senior Notes Indenture, dated as of May 5, 2010, by and among us, our domestic restricted subsidiaries (the "Guarantors") and Wilmington Trust Company, as trustee (the "Trustee"). The 10.5% Senior Notes will mature on May 1, 2018, and bear interest at a stated rate of 10.5% per annum, payable semi-annually in cash in arrears on May 1 and November 1 of each year, beginning on November 1, 2010. The 10.5% Senior Notes are our senior obligations and are guaranteed by each of the Guarantors and secured by a first priority lien on 51% of the capital stock of certain of our foreign restricted subsidiaries.

The terms of the 10.5% Senior Notes Indenture, among other things, limit our ability and the ability of our restricted subsidiaries to (i) incur additional indebtedness or issue certain preferred stock; (ii) pay dividends on, or make distributions in respect of, our capital stock or repurchase our capital stock; (iii) make certain investments or other restricted payments; (iv) sell certain assets; (v) create liens or use assets as security in other transactions; (vi) enter into sale and leaseback transactions; (vii) merge, consolidate or transfer or dispose of substantially all assets; (viii) engage in certain transactions with affiliates; and (ix) designate subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of important limitations and exceptions that are described in the 10.5% Senior Notes Indenture.

At any time on or after May 1, 2014, the Company may redeem the 10.5% Senior Notes, in whole or in part, at a redemption price determined by the year of redemption, as specified in the Indenture. 

Upon the occurrence of a change of control triggering event specified in the 10.5% Senior Notes Indenture, we must offer to purchase the 10.5% Senior Notes at a redemption price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase.

The 10.5% Senior Notes Indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the 10.5% Senior Notes Indenture, payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. The 10.5% Senior Notes Indenture also provides for events of default with respect to the collateral, which include default in the performance of (or repudiation, disaffirmation or judgment of unenforceability or assertion of unenforceability) by us or a Guarantor with respect to the provision of security documents under the 10.5% Senior Notes Indenture. These events of default are subject to a number of important qualifications, limitations and exceptions that are described in the 10.5% Senior Notes Indenture. Generally, if an event of default occurs, the Trustee or holders of at least 25% in principal amount of the then outstanding 10.5% Senior Notes may declare the principal of and accrued but unpaid interest, including additional interest, on all the 10.5% Senior Notes to be due and payable.

On March 27, 2012 and April 3, 2012, the Company completed the sale of $110.0 million and $15.0 million aggregate principal amount of its 10.5% Senior Notes due 2018, respectively, at an issue price of 105.5% of the principal amount plus accrued interest from November 1, 2011. The issuance resulted in a debt premium of $6.1 million which is being amortized over the term of the 10.5% Senior Notes. The Senior Notes were issued as additional notes under the indenture, dated May 5, 2010, among the Company, the guarantors party thereto and Wilmington Trust Company, as trustee.

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Revolving Line of Credit

On September 30, 2010, KEMET Electronics Corporation ("KEC") and KEMET Electronics Marketing (S) Pte Ltd. ("KEMET Singapore") (each a "Borrower" and, collectively, the "Borrowers") entered into a Loan and Security Agreement (the "Loan and Security Agreement"), with Bank of America, N.A, as the administrative agent and the initial lender. A portion of the U.S. facility and the Singapore facility can be used to issue letters of credit. On December 19, 2014, the Loan and Security Agreement was amended and as a result the expiration was extended to December 19, 2019. Under the terms of the amended Loan and Security Agreement, the revolving credit facility has increased to $60.0 million, which is bifurcated into a U.S. facility (for which KEC is the Borrower) and a Singapore facility (for which KEMET Singapore is the Borrower). The amendment contains an accordion feature permitting the U.S. Borrowers to increase commitments under the facility by an aggregate principal amount up to $15.0 million (for a total facility of $75.0 million), subject to terms and documentation acceptable to the Agent and/or the Lenders. In addition, KEMET Foil Manufacturing, LLC, KEMET Blue Powder Corporation and The Forest Electric Company were included as Borrowers under the U.S. facility. The principal features of the Loan and Security Agreement as amended are reflected in the description below.

The size of the U.S. facility and Singapore facility can fluctuate as long as the Singapore facility does not exceed $30.0 million and the total facility does not exceed $60.0 million.

Borrowings under the U.S. and Singapore facilities are subject to a borrowing base consisting of:

• in the case of the U.S. facility, (A) 85% of KEC's accounts receivable that satisfy certain eligibility criteria plus (B) the lesser of (i) $6.0 million and (ii) (a) on or prior to agent’s receipt of an updated inventory appraisal and agent’s approval thereof, 40% of the value of Eligible Inventory (as defined in the agreement) and (b) upon agent’s receipt of an updated inventory appraisal, 85% of the net orderly liquidation value of the Eligible Inventory (as defined in the agreement) plus (C) the lesser of $5.1 million and 80% of the net orderly liquidation percentage of the appraised value of equipment that satisfies certain eligibility criteria, as reduced on the first day of each fiscal quarter occurring after April 30, 2014 in an amount equal to one-twentieth (1/20) of such appraised value less (D) certain reserves, including certain reserves imposed by the administrative agent in its permitted discretion; and

• in the case of the Singapore facility, (A) 85% of KEMET Singapore's accounts receivable that satisfy certain eligibility criteria as further specified in the Amendment, less (B) certain reserves, including certain reserves imposed by the administrative agent in its permitted discretion.

Interest is payable on borrowings monthly at a rate equal to the London Interbank Offer Rate ("LIBOR") or the base rate, plus an applicable margin, as selected by the Borrower. Depending upon the fixed charge coverage ratio of KEMET Corporation and its subsidiaries on a consolidated basis as of the latest test date, the applicable margin under the U.S. facility varies between 2.00% and 2.50% for LIBOR advances and 1.00% and 1.50% for base rate advances, and under the Singapore facility varies between 2.25% and 2.75% for LIBOR advances and 1.25% and 1.75% for base rate advances.

The base rate is subject to a floor that is 100 basis points above LIBOR.

An unused line fee is payable monthly in an amount equal to a per annum rate equal to (a) 0.50%, if the average daily balance of revolver loans and stated amount of letters of credit was 50% or less of the revolver commitments during the preceding calendar month, or (b) 0.375%, if the average daily balance of revolver loans and stated amount of letters of credit was more than 50% of the Revolver Commitment during the preceding calendar month. A customary fee is also payable to the administrative agent on a quarterly basis.

KEC's ability to draw funds under the U.S. facility and KEMET Singapore's ability to draw funds under the Singapore facility are conditioned upon, among other matters:

• the absence of the existence of a Material Adverse Effect (as defined in the Loan and Security Agreement);

• the absence of the existence of a default or an event of default under the Loan and Security Agreement; and

• the representations and warranties made by KEC and KEMET Singapore in the Loan and Security Agreement continuing to be correct in all material respects.

KEMET Corporation and the Guarantors guarantee the U.S. facility obligations and the U.S. facility obligations are secured by a lien on substantially all of the assets of KEC and the Guarantors (other than assets that secure the 10.5% Senior Notes due 2018). The collection accounts of the Borrowers and Guarantors are subject to a daily sweep into a concentration account and the concentration account will become subject to full cash dominion in favor of the administrative agent (i) upon an event of default, (ii) if for five consecutive business days, aggregate availability of all facilities has been less than the greater of (A) 12.5% of the aggregate revolver commitments at such time and (B) $7.5 million, or (iii) if for five consecutive business days, availability of the U.S. facility has been less than $3.75 million (each such event, a "Cash Dominion Trigger Event").

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KEC and the Guarantors guarantee the Singapore facility obligations. In addition to the assets that secure the U.S. facility, the Singapore obligations are also secured by a pledge of 100% of the stock of KEMET Singapore and a security interest in substantially all of KEMET Singapore's assets. KEMET Singapore's bank accounts are maintained at Bank of America and upon a Cash Dominion Trigger Event will become subject to full cash dominion in favor of the administrative agent.

A fixed charge coverage ratio of at least 1.0 :1.0 must be maintained as of the last day of each fiscal quarter ending immediately prior to or during any period in which any of the following occurs and is continuing until none of the following occurs for a period of at least forty-five consecutive days: (i) an event of default, (ii) aggregate availability of all facilities has been less than the greater of (A) 12.5% of the aggregate revolver commitments at such time and (B) $7.5 million, or (iii) availability of the U.S. facility has been less than $3.75 million. The fixed charge coverage ratio tests the EBITDA and fixed charges of KEMET Corporation and its subsidiaries on a consolidated basis.

In addition, the Loan and Security Agreement includes various covenants that, subject to exceptions, limit the ability of KEMET Corporation and its direct and indirect subsidiaries to, among other things: incur additional indebtedness; create liens on assets; engage in mergers, consolidations, liquidations and dissolutions; sell assets (including pursuant to sale leaseback transactions); pay dividends and distributions on or repurchase capital stock; make investments (including acquisitions), loans, or advances; prepay certain junior indebtedness; engage in certain transactions with affiliates; enter into restrictive agreements; amend material agreements governing certain junior indebtedness; and change its lines of business.

The Loan and Security Agreement includes certain customary representations and warranties, affirmative covenants and events of default, which are set forth in more detail in the Loan and Security Agreement. There were $33.4 million and $18.4 million borrowings against the revolving line of credit as of March 31, 2015 and 2014, respectively. Based upon the March 31, 2015 financial statements, the Company's available borrowing capacity under the Loan and Security Agreement was $13.4 million. In addition, in fiscal year 2014, the Company issued two letters of credit for EUR 1.1 million ($1.2 million) and EUR 0.7 million ($0.7 million) related to the construction of the new manufacturing location in Italy which were cancelled during February 2014 and April 2014, respectively.

Advance Payment from OEM

On August 28, 2012, we entered into and amended an agreement (the "Agreement"), with an original equipment manufacturer (the "OEM") pursuant to which the OEM agreed to advance KEMET $24.0 million (the "Advance Payment"). As of March 31, 2014, the Company had $20.4 million outstanding due to the OEM. On a monthly basis starting in June 2013, (eight months following the receipt of the Advance Payment), the Company began repaying the OEM an amount equal to a percentage of the aggregate purchase price of the capacitors sold to the OEM the preceding month, not to exceed $1.0 million per month. Pursuant to the terms of the Agreement, an irrevocable standby letter of credit in the amount of $16.0 million was delivered to the OEM on October 8, 2012 and on October 22, 2012 the Company received the Advance Payment from the OEM. The debt discount related to the Advance Payment as of March 31, 2014 was $0.3 million. During December 2014, the outstanding balance due on the Advanced Payment was repaid primarily using the revolving line of credit, and the letter of credit was simultaneously released. The early extinguishment of debt resulted in a gain of $1.0 million which was included on the line item “Other (income) expense, net” in the Consolidated Statement of Operations.

Short-term Liquidity

Cash and cash equivalents totaled $56.4 million as of March 31, 2015, representing a decrease of $1.6 million as compared to $57.9 million as of March 31, 2014. Our net working capital (current assets less current liabilities) as of March 31, 2015 was $239.1 million compared to $233.7 million of net working capital as of March 31, 2014. Cash and cash equivalents held by our foreign subsidiaries totaled $22.6 million million and $35.1 million million at March 31, 2015 and March 31, 2014, respectively. Our operating income outside the U.S. is no longer deemed to be permanently reinvested in foreign jurisdictions. As a result, we set up a deferred tax liability on the undistributed foreign earnings which was offset by the valuation allowance. However, we currently do not intend nor foresee a need to repatriate cash and cash equivalents held by foreign subsidiaries. If these funds are needed in the U.S. for our operations, we may be required to accrue U.S. withholding taxes on the distributed foreign earnings.

We have taken steps to improve our operating results by decreasing global headcount and vertically integrating our supply chain. Based on our current operating plans, we believe that existing cash and cash equivalents, cash provided by operations and cash from the revolving line of credit will continue to be sufficient to fund our operating requirements for the next twelve months, including $39.1 million in interest payments, expected capital expenditures in the range of $20.0 million to $25.0 million, payments of $7.2 million related to restructuring liabilities, and $0.5 million in other debt principal payments.

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Our cash and cash equivalents decreased by $1.6 million during the year ended March 31, 2015, decreased$38.0 million during the year ended March 31, 2014 and decreased$114.5 million during the year ended March 31, 2013 as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Net cash provided by (used in) operating activities	$	24,402		$	(6,746	)	$	(22,827	)
Net cash provided by (used in) investing activities	3,629			(25,253		)	(111,977		)
Net cash provided by (used in) financing activities	(26,868		)	(6,877		)	20,852
Effect of foreign currency fluctuations on cash	(2,730		)	827			(591		)
Net increase (decrease) in cash and cash equivalents	$	(1,567	)	$	(38,049	)	$	(114,543	)

Fiscal Year 2015 compared to Fiscal Year 2014

Operations

In fiscal year 2015, cash provided by operating activities totaled $24.4 million, representing a $31.1 millionimprovement compared to cash used in operating activities of $6.7 million in fiscal year 2014. A portion of the improvement for fiscal year 2015 compared to fiscal year 2014 relates to a $19.5 millionimprovement in cash flows related to operations (change in net loss adjusted for the change in: net cash provided by (used in) operating activities of discontinued operations, gain on sale of discontinued operations, gain on early extinguishment of debt, equity loss from NEC TOKIN, change in value of NEC TOKIN options, write down of long-lived assets, depreciation and amortization, deferred income taxes, net (gain) loss on sales and disposals of assets, amortization of debt discount and debt issuance costs, stock-based compensation, pension and other post-retirement benefits, write down of receivables, and other non-cash changes to net loss).

We generated$14.0 million through changes in assets and liabilities in fiscal year 2015 as compared to generating$2.4 million through changes in assets and liabilities in fiscal year 2014.

In fiscal year 2015, the cash generation of $14.0 million was primarily related to an increase in other operating liabilities of $8.9 million, a reduction in inventory of $8.6 million achieved through cost reductions and yield improvements, and a reduction in accounts receivable of $8.2 million. This was partially offset by an increase in prepaid expenses and other assets of $8.4 million, a decrease in accrued income taxes of $0.4 million, and a decrease in accounts payable of $2.9 million.

In fiscal year 2014, the cash generation of $2.4 million was primarily related to a reduction in inventory of $14.9 million achieved through vertical integration, yield improvement, and cycle time improvement. This was partially offset by a decrease in other operating liabilities of $9.7 million primarily due to a decrease in accrued restructuring.

Investing

Cash provided by investing activities of $3.6 million in fiscal year 2015 improved $28.9 million from cash used in investing activities of $25.3 million in fiscal year 2014.

In fiscal year 2015, capital expenditures of $22.2 million were primarily related to expanding capacity at our manufacturing facilities in Europe and Asia. We released restricted cash due to the repayment of the Advance Payment which provided cash of $11.5 million, and we received $9.6 million from the sale of discontinued operations. In addition, we received $4.8 million from the sale of assets.

In fiscal year 2014, capital expenditures of $32.1 million were primarily related to completion of our manufacturing facility in Pontecchio, Italy, as well as various information technology related projects. Restricted cash related to the Advance Payment provided cash of $4.0 million and we received $2.8 million from the sale of assets.

Financing

Cash used in financing activities of $26.9 million in fiscal year 2015decreased$20.0 million from cash used in financing activities of $6.9 million in fiscal year 2014.

In fiscal year 2015, we used $19.5 million for deferred acquisition payments related to the KEMET Foil and Blue Powder acquisitions and $21.7 million for debt payments. This was partially offset by $15.0 million in net proceeds from the revolving line of credit.

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In fiscal year 2014, we used $22.0 million for deferred acquisition payments related to the KEMET Foil and Blue Powder acquisitions and $3.6 million for debt payments. This was partially offset by $18.4 million in net proceeds from the revolving line of credit.

Commitments

At March 31, 2015, we had contractual obligations in the form of non-cancelable operating leases and debt, including interest payments (see Note 2, "Debt" and Note 16, "Commitments and Contingencies" to our consolidated financial statements), European social security, pension benefits, other post-retirement benefits, inventory purchase obligations, fixed asset purchase obligations, acquisition related obligations, and construction obligations as follows (amounts in thousands):

	Payment Due by Period
Contractual obligations	Total		Year 1		Years 2 - 3		Years 4 - 5		More than 5 years
Debt obligations	$	388,910	$	962	$	—	$	387,948	$	—
Interest obligations	117,306		39,061		74,998		3,247		—
Operating lease obligations	13,031		5,200		5,014		1,545		1,272
Pension and other post-retirement benefits (1)	17,637		1,465		2,930		3,279		9,963
Employee separation liability	10,638		1,183		753		646		8,056
Restructuring liability	7,239		6,591		648		—		—
Purchase commitments	5,487		3,604		1,883		—		—
Capital lease obligations	1,688		793		772		123		—
Total	$	561,936	$	58,859	$	86,998	$	396,788	$	19,291

_______________________________________________________________________________

(1) Reflects expected benefit payments through 2023.

Derivative Investments

Certain operating expenses at the Company's Mexican facilities are paid in Mexican pesos or Japanese yen, and certain sales are made in euros. In order to hedge these forecasted cash flows, the Company purchases foreign exchange contracts to buy Mexican pesos, buy Japanese yen, or sell euros for periods and amounts consistent with the underlying cash flow exposures. At March 31, 2015, the Company had outstanding forward exchange contracts with maturities of less than twelve months to purchase Mexican pesos, purchase Japanese yen, and sell euros with notional amounts of $23.6 million, $12.1 million, and $12.1 million, respectively. The fair value of these contracts at March 31, 2015 totaled $1.0 million and was recorded as a derivative asset on the Consolidated Balance Sheets under Prepaid expenses and other current assets. See Note 13, "Derivatives" for further discussion of derivative financial instruments.

Uncertain Income Tax Positions

We have recognized a liability for our unrecognized uncertain income tax positions of approximately $6.4 million as of March 31, 2015. We do not believe we are likely to pay any amounts during the year ending March 31, 2016. The ultimate resolution and timing of payment for remaining matters continues to be uncertain and are, therefore, excluded from the above table.

Non-GAAP Financial Measures

To complement our consolidated statements of operations and cash flows, we use non-GAAP financial measures of Adjusted operating income, Adjusted net income and Adjusted EBITDA. We believe that Adjusted operating income, Adjusted net income and Adjusted EBITDA are complements to U.S. GAAP amounts and such measures are useful to investors. The presentation of these non-GAAP measures is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity.

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Adjusted operating income is calculated as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Operating income (loss)	$	22,378		$	(18,211	)	$	(35,080	)
Adjustments:
Restructuring charges	13,017			14,122			18,719
Write down of long-lived assets	—			4,476			7,582
ERP integration costs	3,248			3,880			7,398
Plant shut-down costs	889			2,668			—
Plant start-up costs	4,556			3,336			6,122
Stock-based compensation	4,512			2,909			4,599
NEC TOKIN investment related expenses	1,778			2,299			4,581
Legal expenses related to antitrust class actions	844			—			—
Infrastructure tax	—			1,079			—
Goodwill impairment	—			—			1,092
Net curtailment and settlement gain on benefit plans	—			—			266
(Gain) loss on sales and disposals of assets	(221		)	32			18
Inventory write downs	—			3,886			—
Adjusted operating income	$	51,001		$	20,476		$	15,297

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Adjusted net income (loss) is calculated as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Net income (loss)	$	(14,143	)	$	(68,503	)	$	(82,182	)
Adjustments:
Restructuring charges	13,017			14,122			18,719
Write down of long-lived assets	—			4,476			7,582
Amortization included in interest expense	1,814			3,596			4,138
ERP integration costs	3,248			3,880			7,398
(Income) loss from discontinued operations	(5,379		)	3,634			3,670
Plant start-up costs	4,556			3,336			6,122
Stock-based compensation	4,512			2,909			4,599
Plant shut-down costs	889			2,668			—
NEC TOKIN investment related expenses	1,778			2,299			4,581
Infrastructure tax	—			1,079			—
Goodwill impairment	—			—			1,092
Equity (gain) loss from NEC TOKIN	2,169			7,090			1,254
Net curtailment and settlement gain on benefit plans	—			—			266
(Gain) loss on sales and disposals of assets	(221		)	32			18
Net foreign exchange (gain) loss	(4,249		)	(304		)	(28		)
Registration related fees	—			—			20
Long-term receivable write down	—			1,444			—
Change in value of NEC TOKIN options	(2,100		)	(3,111		)	—
Inventory write downs	—			3,886			—
Income tax effect of non-GAAP adjustments*	84			(27		)	(906		)
(Gain) loss on early extinguishment of debt	(1,003		)	—			—
Professional fees related to financing activities	1,142			—			—
Legal expenses related to antitrust class actions	844			—			—
Adjusted net income (loss)	$	6,958		$	(17,494	)	$	(23,657	)

* Includes the income tax effect of law changes related to the utilization of net operating loss carryforwards.

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Adjusted EBITDA is calculated as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Net income (loss)	$	(14,143	)	$	(68,503	)	$	(82,182	)
Adjustments:
Income tax expense	5,227			1,482			3,281
Interest expense, net	40,686			40,767			41,192
Depreciation and amortization	40,768			49,527			45,158
Restructuring charges	13,017			14,122			18,719
Write down of long-lived assets	—			4,476			7,582
ERP integration costs	3,248			3,880			7,398
(Income) loss from discontinued operations	(5,379		)	3,634			3,670
Plant start-up costs	4,556			3,336			6,122
Stock-based compensation	4,512			2,909			4,599
Plant shut-down costs	889			2,668			—
NEC TOKIN investment related expenses	1,778			2,299			4,581
Infrastructure tax	—			1,079			—
Goodwill impairment	—			—			1,092
Equity (gain) loss from NEC TOKIN	2,169			7,090			1,254
Net curtailment and settlement gain on benefit plans	—			—			266
(Gain) loss on sales and disposals of assets	(221		)	32			18
Net foreign exchange (gain) loss	(4,249		)	(304		)	(28		)
Registration related fees	—			—			20
Long-term receivable write down	—			1,444			—
Change in value of NEC TOKIN options	(2,100		)	(3,111		)	—
Inventory write downs	—			3,886			—
(Gain) loss on early extinguishment of debt	(1,003		)	—			—
Professional fees related to financing activities	1,142			—			—
Legal expenses related to antitrust class actions	844			—			—
Adjusted EBITDA	$	91,741		$	70,713		$	62,742

Adjusted operating income represents operating income (loss), excluding adjustments which are outlined in the quantitative reconciliation provided above. We use Adjusted operating income to facilitate our analysis and understanding of our business operations and believe that Adjusted operating income is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company. Adjusted operating income should not be considered as an alternative to operating income or any other performance measure derived in accordance with U.S. GAAP.

Adjusted net income (loss) represents net income (loss), excluding adjustments which are outlined in the quantitative reconciliation provided above. We use Adjusted net income to evaluate the Company's operating performance and believe that Adjusted net income is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company. Adjusted net income should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with U.S. GAAP.

Adjusted EBITDA represents net income (loss) before income tax expense, interest expense, net, and depreciation and amortization, excluding adjustments which are outlined in the quantitative reconciliation provided above. We present Adjusted EBITDA as a supplemental measure of our performance and ability to service debt. We also present Adjusted EBITDA because we believe such measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry.

We believe Adjusted EBITDA is an appropriate supplemental measure of debt service capacity because cash expenditures on interest are, by definition, available to pay interest and tax expense is inversely correlated to interest expense

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because tax expense goes down as deductible interest expense goes up; depreciation and amortization are non-cash charges. The other items excluded from Adjusted EBITDA are excluded in order to better reflect our continuing operations.

In evaluating Adjusted EBITDA, one should be aware that in the future we may incur expenses similar to the adjustments noted above. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these types of adjustments. Adjusted EBITDA is not a measurement of our financial performance under U.S. GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity.

Our Adjusted EBITDA measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

• it does not reflect our cash expenditures, future requirements for capital expenditures or contractual commitments;

• it does not reflect changes in, or cash requirements for, our working capital needs;

• it does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our debt;

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and our Adjusted EBITDA measure does not reflect any cash requirements for such replacements;

• it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;

• it does not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations;

• it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and

• other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations. You should compensate for these limitations by relying primarily on our U.S. GAAP results and using Adjusted EBITDA only supplementally.

Recent Accounting Pronouncements

In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")2014-15, Presentation of Financial Statements-Going Concern. The new guidance is effective for the Company's fiscal year that begins on April 1, 2017 and interim periods within that fiscal year and requires management to assess if there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. This new guidance is not expected to have a material impact on the Company's Consolidated Financial Statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes existing accounting standards for revenue recognition and creates a single framework. The new guidance is effective for the Company's fiscal year that begins on April 1, 2017 and interim periods within that fiscal year and requires either a retrospective or a modified retrospective approach to adoption. The Company is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures, as well as the available transition methods. Early adoption is prohibited.

In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). ASU 2014-08 changes the definition of a discontinued operation and modifies related disclosure requirements. The new guidance is effective on a prospective basis for fiscal years beginning after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015. This new guidance did not have a material impact on the Company's Consolidated Financial Statements.

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740). ASU 2013-11 requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013,

51

with early adoption permitted. ASU 2013-11 was effective for the Company on April 1, 2014 and did not have a material effect on the Company's Consolidated Financial Statements.

In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830). ASU 2013-05 revised the authoritative guidance on accounting for cumulative translation adjustment specifying that a cumulative translation adjustment should be released into earnings when an entity ceases to have a controlling financial interest in a subsidiary or a group of assets within a consolidated foreign entity and the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. For sales of an equity method investment that is a foreign entity, a pro rata portion of cumulative translation adjustment attributable to the investment would be recognized in earnings upon sale of the investment. The guidance is effective for fiscal years beginning after December 15, 2013. ASU 2013-05 was effective for the Company on April 1, 2014 and did not have a material effect on the Company's Consolidated Financial Statements.

There are currently no other accounting standards that have been issued that will have a significant impact on the Company's Consolidated Financial Statements.

Effect of Inflation

Inflation generally affects us by increasing the cost of labor, equipment, and raw materials. We do not believe that inflation has had any material effect on our business over the past three fiscal years except for the following discussion in Commodity Price Risk.

ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Interest Rate Risk

We are exposed to interest rate risk through our revolving line of credit, which had an outstanding balance as of March 31, 2015, of $33.4 million. This debt has a variable interest rate and a 1% change in the interest rate would yield a $0.3 million change in interest expense.

Foreign Currency Exchange Rate Risk

Given our international operations and sales, we are exposed to movements in foreign exchange rates. Of these, the most significant are currently the euro and the Mexican peso. A portion of our sales to our customers and operating costs in Europe are denominated in euro creating an exposure to foreign currency exchange rates. Also, a portion of our costs in our operations in Mexico are denominated in Mexican pesos, creating an exposure to foreign currency exchange rates. Additionally, certain of our non-U.S. subsidiaries make sales denominated in U.S. dollars which expose them to foreign currency transaction gains and losses. Historically, in order to minimize our exposure, we periodically entered into forward foreign exchange contracts in which the future cash flows were hedged against the U.S. dollar (see Note 13 to the consolidated financial statements).

Commodity Price Risk

As a result of our tantalum vertical integration efforts which began in fiscal year 2012, we have reduced our exposure to price volatility and supply uncertainty in the tantalum supply chain. A majority of our tantalum needs are now met through our direct sourcing of conflict free tantalum ore or tantalum scrap reclaim, which is then processed into the intermediate product potassium heptafluorotantalate (commonly known as K-salt) at our own facility in Mexico, before final processing into tantalum powder at Blue Powder. Price increases for tantalum ore, or for the remaining tantalum powder that we source from third parties, could impact our financial performance as we may be unable to pass all such price increases on to our customers.

Palladium is a precious metal used in the manufacture of multilayer ceramic capacitors and is mined primarily in Russia and South Africa. We continue to pursue ways to reduce palladium usage in ceramic capacitors in order to minimize the price risk. The amount of palladium that we require has generally been available in sufficient quantities; however the price of palladium is driven by the market which has shown significant price fluctuations. For instance, in fiscal year 2015 the price of palladium fluctuated between $726 and $908 per troy ounce. Price increases and the possibility of our inability to pass such increases on to our customers could have an adverse effect on profitability.

Silver and aluminum have generally been available in sufficient quantities, and we believe there are a sufficient number of suppliers from which we can purchase our requirements. An increase in the price of silver and aluminum that we are unable to pass on to our customers, however, could have an adverse effect on our profitability.

ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The response to this item is submitted as a separate section of this Form 10-K. See Item 15.

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ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A.    CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

As of March 31, 2015, an evaluation of the effectiveness of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) promulgated under the Exchange Act) was performed under the supervision and with the participation of the Company's management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in its reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that information required to be disclosed by the Company in the reports the Company files or submits under the Exchange Act is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Internal Control over Financial Reporting

The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) promulgated under the Exchange Act). Internal control over financial reporting is a process, designed by, or under the supervision of, an entity's principal executive and principal financial officers, and effected by an entity's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles. 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 the dispositions of the assets of the entity; (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 entity are being made only in accordance with authorizations of the management and directors of the entity; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the entity's assets that could have a material effect on its consolidated financial statements.

Because 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.

Under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, the Company's management conducted an assessment of the effectiveness of its internal control over financial reporting based on the criteria set forth in the Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework).

Based on that assessment, as of March 31, 2015, the Company's management concluded that its internal control over financial reporting was effective. Ernst & Young LLP, our independent registered public accounting firm has issued an attestation report on the Company's internal control over financial reporting, which is on page 61 of this annual report on Form 10-K.

Changes in Internal Control over Financial Reporting

There was no change in the Company's internal control over financial reporting during the fiscal quarter ended March 31, 2015, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

ITEM 9B.    OTHER INFORMATION.

None.

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PART III

ITEM 10.    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

Other than the information under "Executive Officers" and "Other Key Employees" under Part I, Item 4A, the other information required by Item 10 is incorporated by reference from the Company's definitive proxy statement for its annual stockholders meeting to be held on July 24, 2015 under the headings "Nominees for Board of Directors," "Continuing Directors," "Section 16(a) Beneficial Ownership Reporting Compliance" and "Information about the Board of Directors."

ITEM 11.    EXECUTIVE COMPENSATION.

The information required by Item 11 is incorporated by reference from the Company's definitive proxy statement for its annual stockholders' meeting to be held on July 24, 2015 under the headings "Compensation Discussion and Analysis," "Summary Compensation Table," "Grants of Plan-Based Awards Table," "Outstanding Equity Awards at Fiscal Year-End Table," "Option Exercises and Stock Vested Table," "Pension Benefits Table," "Nonqualified Deferred Compensation Table," "Potential Payments Upon Termination or Change in Control Table," "Director Compensation Table," "Report of the Compensation Committee," and "Compensation Committee Interlocks and Insider Participation."

ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The information required by Item 12 is incorporated by reference from the Company's definitive proxy statement for its annual stockholders' meeting to be held on July 24, 2015 under the heading "Security Ownership", and from "Equity Compensation Plan Disclosure" in Item 5 hereof.

ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

The information required by Item 13 is incorporated by reference from the Company's definitive proxy statement for its annual stockholders' meeting to be held on July 24, 2015 under the headings "Review, Approval or Ratification of Transactions with Related Persons" and "Information about the Board of Directors."

ITEM 14.    PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The information required by Item 14 is incorporated by reference from the Company's definitive proxy statement for its annual stockholders' meeting to be held on July 24, 2015 under the heading "Audit and Non-Audit Fees."

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PART IV

ITEM 15.    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

(a) (1)    Financial Statements

The following financial statements are filed as a part of this report:

Report of Independent Registered Public Accounting Firm	60
Report of Independent Registered Public Accounting Firm	61
Consolidated Financial Statements:
Consolidated Balance Sheets as of March 31, 2015 and 2014	62
Consolidated Statements of Operations for the years ended March 31, 2015, 2014 and 2013	63
Consolidated Statements of Comprehensive Income (Loss) for the years ended March 31, 2015, 2014 and 2013	64
Consolidated Statements of Changes in Stockholders' Equity for the years ended March 31, 2015, 2014 and 2013	65
Consolidated Statements of Cash Flows for the years ended March 31, 2015, 2014 and 2013	66
Notes to Consolidated Financial Statements	68

(a) (2)    Financial Statement Schedules

Financial statement schedules are omitted because they are not applicable or because the required information is included in the consolidated financial statements or notes thereto.

(a) (3)    List of Exhibits

The following exhibits are filed herewith or are incorporated by reference to exhibits previously filed with the SEC:

2.1	Stock Purchase Agreement, dated as of February 2, 2012, by and among KEMET Corporation, Niotan Incorporated and Niotan Investment Holdings LLC (incorporated by reference to Exhibit 99.2 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on February 2, 2012)
2.2	Stock Purchase Agreement, dated as of March 12, 2012, by and among KEMET Electronics Corporation, NEC Corporation and NEC TOKIN Corporation (incorporated by reference to Exhibit 99.2 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on March 15, 2012)
2.3	Amendment No. 1 to the Stock Purchase Agreement dated as of December 12, 2012, by and among KEMET Electronics Corporation, NEC Corporation and NEC TOKIN Corporation (incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on December 14, 2012)
3.1	Second Restated Certificate of Incorporation of the Company, as amended to date (incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q (File No. 1-15491) for the quarter ended June 30, 2011)
3.2	Amended and Restated By-laws of KEMET Corporation, effective June 5, 2008 (incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on June 5, 2008)
4.1	Indenture, dated May 5, 2010, by and among the Company, certain subsidiary guarantors named therein and Wilmington Trust Company, as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on May 5, 2010)
4.2	Registration Rights Agreement, dated May 5, 2010, by and among the Company, certain subsidiary guarantors named therein and the initial purchasers named therein (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on May 5, 2010)
4.3	Supplemental Indenture, dated as of August 10, 2011, among KEMET Foil Manufacturing LLC (f/k/a Cornell Dubilier Foil, LLC), KEMET Corporation, the other Guarantors named therein and Wilmington Trust Company, as trustee (incorporated by reference to Exhibit 4.1 to the Company's Quarterly Report on Form 10-Q (File No. 1-15491) for the quarter ended September 30, 2011)

55

4.4	Registration Rights Agreement, dated March 27, 2012, among KEMET Corporation, the guarantors named therein and Merrill Lynch, Pierce, Fenner & Smith Incorporated and Deutsche Bank Securities Inc., as initial purchasers (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on March 28, 2012)
4.5	Registration Rights Agreement, dated as of April 3, 2012, among KEMET Corporation, the guarantors named therein and Merrill Lynch, Pierce, Fenner & Smith Incorporated and Deutsche Bank Securities Inc., as initial purchasers (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on April 4, 2012)
4.6	Supplemental Indenture, dated April 17, 2012, among KEMET Corporation, the guarantors named therein and Wilmington Trust Company, as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on April 18, 2012)
4.7	Form of 10 1/2% Senior Note due 2018 (included in Exhibit 4.1)
10.1	Registration Agreement, dated as of December 21, 1990, by and among the Company and each of the investors and executives listed on the schedule of investors and executives attached thereto (incorporated by reference to Exhibit 10.3 to the Company's Registration Statement on Form S-1 (Reg. No. 33-48056))
10.2	Form of Amendment No. 1 to Registration Agreement, dated as of April 28, 1994 (incorporated by reference to Exhibit 10.3.1 to the Company's Registration Statement on Form S-1 (Reg. No. 33-61898))
10.3	Form of KEMET Electronics Corporation Distributor Agreement (incorporated by reference to Exhibit 10.16 to the Company's Registration Statement on Form S-1 (Reg. No. 33-48056))
10.4	Form of KEMET Electronics Corporation Standard Order Acknowledgment, Quotation, and Volume Purchase Agreement (incorporated by reference to Exhibit 10.17 to the Company's Registration Statement on Form S-1 (Reg. No. 33-48056))
10.5	Form of KEMET Electronics Corporation Product Warranty (incorporated by reference to Exhibit 10.18 to the Company's Registration Statement on Form S-1 (Reg. No. 33-48056))
10.6	1995 Executive Stock Option Plan by and between the Company and each of the executives listed on the schedule attached thereto (incorporated by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K (File No. 1-15491) for the year ended March 31, 1996)*
10.7	Executive Bonus Plan by and between the Company and each of the executives listed on the schedule attached thereto (incorporated by reference to Exhibit 10.34 to the Company's Annual Report on Form 10-K (File No. 1-15491) for the year ended March 31, 1996)*
10.8	1992 Key Employee Stock Option Plan (incorporated by reference to Exhibit 10.16 to the Company's Annual Report on Form 10-K (File No. 1-15491) for the year ended March 31, 2009)*
10.9	Amendment No. 1 to KEMET Corporation 1992 Key Employee Stock Option Plan effective October 23, 2000 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q (File No. 1-15491) for the quarter ended December 31, 2000)*
10.10	2004 Long-Term Equity Incentive Plan (incorporated by reference to Exhibit 4.3 to the Company's Registration Statement on Form S-8 (Reg. No. 333-123308))*
10.11	Amendment to the Compensation Plan of the Chief Executive Officer and other executive officers effective May 3, 2006 (incorporated by reference to the Company's Current Report on Form 8-K (File No. 1-15491) filed on May 9, 2006)*
10.12	Amendment to the Compensation Plan of the Chief Executive Officer and other executive officers effective July 19, 2006 (incorporated by reference to the Company's Current Report on Form 8-K (File No. 1-15491) filed on July 25, 2006)*

56

10.13	Amendment to the Compensation Plan of the Chief Executive Officer and other executive officers effective March 28, 2007 (incorporated by reference to the Company's Current Report on Form 8-K (File No. 1-15491) filed on April 3, 2007)*
10.14	Amendment to the Compensation Plan of the Chief Executive Officer and other executive officers effective May 8, 2007 (incorporated by reference to the Company's Current Report on Form 8-K (File No. 1-15491) filed on May 15, 2007)*
10.15	Amendment to the Compensation Plan of the Chief Executive Officer and other executive officers effective May 16, 2007 (incorporated by reference to the Company's Current Report on Form 8-K (File No. 1-15491) filed on May 23, 2007)*
10.16	Amendment to the Compensation Plan of the Chief Executive Officer and other executive officers dated May 5, 2008 (incorporated by reference to the Company's Current Report on Form 8-K (File No. 1-15491) filed on May 12, 2008)*
10.17	Asset Purchase Agreement, dated as of September 15, 2008, by and between KEMET Electronics Corporation and Siliconix Technology C.V. (incorporated by reference to Exhibit 10.8 to the Company's Quarterly Report on Form 10-Q (File No. 1-15491) for the quarter ended September 30, 2008)
10.18	Summary of Non-Employee Director Compensation (incorporated by reference to exhibit 10.35 to the Company's Annual Report on Form 10-K (File No. 1-15491), for the year ended March 31, 2012)*
10.19	Form of Indemnification Agreement (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on April 23, 2009)*
10.20	Amendment to the Compensation Plan of the Company's executive officers (incorporated by reference to the Company's Current Report on Form 8-K (File No. 1-15491) filed on August 4, 2009)*
10.21	Warrant to Purchase Common Stock, dated June 30, 2009, issued by the Company to K Financing, LLC (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on June 30, 2009)
10.22	Investor Rights Agreement, dated June 30, 2009, between the Company and K Financing, LLC (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on June 30, 2009)
10.23	Corporate Advisory Services Agreement, dated June 30, 2009, between the Company and Platinum Equity Advisors, LLC (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on June 30, 2009)
10.24	Purchase Agreement, dated April 21, 2010, by and among the Company, certain subsidiary guarantors named therein and Banc of America Securities LLC, as representative of the several initial purchasers (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on April 22, 2010)
10.25	Employment Agreement between the Company and Per Olof-Lööf dated January 27, 2010 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on February 2, 2010)*
10.26	Amendment No. 1 to Employment Agreement between KEMET Corporation and Per Olof-Lööf, dated March 28, 2012 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on April 2, 2012)*
10.27	Second Amended and Restated KEMET Corporation Deferred Compensation Plan (incorporated by reference to Exhibit 10.56 to the Company's Annual Report on Form 10-K (File No. 1-15491) for the year ended March 31, 2009)*
10.28	Loan and Security Agreement, dated as of September 30, 2010, by and among KEMET Electronics Corporation, KEMET Electronics Marketing (S) Pte Ltd., and Bank of America, N.A., as agent and Banc of America Securities LLC, as lead arranger and bookrunner (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on October 5, 2010)

57

10.29	KEMET Executive Secured Benefit Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q (File No. 1-15491) for the quarter ended December 31, 2010)*
10.30	Form of Change in Control Severance Compensation Agreement entered into with executive officers of the Company (incorporated by reference to Exhibit 10.58 to the Company's Annual Report on Form 10-K (File No. 1-15491) for the year ended March 31, 2012)*
10.31	Option Agreement, dated as of March 12, 2012, by and among NEC Corporation and KEMET Electronics Corporation (incorporated by reference to Exhibit 99.3 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on March 15, 2012)
10.32	Stockholders' Agreement, dated as of March 12, 2012, by and among KEMET Electronics Corporation, NEC Corporation and NEC TOKIN Corporation (incorporated by reference to Exhibit 99.4 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on March 15, 2012)
10.33	Form of Restricted Stock Unit Grant Agreement for Employees (incorporated by reference to Exhibit 10.61 to the Company's Annual Report on Form 10-K (File No. 1-15491) for the year ended March 31, 2012)*
10.34	Form of Restricted Stock Unit Grant Agreement for Directors (incorporated by reference to Exhibit 10.62 to the Company's Annual Report on Form 10-K (File No. 1-15491) for the year ended March 31, 2012)*
10.35	Amendment No. 1 to Loan and Security Agreement, Waiver and Consent, dated as of March 19, 2012, by and among KEMET Electronics Corporation, KEMET Electronics Marketing (S) Pte Ltd., the financial institutions party thereto as lenders and Bank of America, N.A., as agent (incorporated by reference to Exhibit 10.63 to the Company's Annual Report on Form 10-K (File No. 1-15491) for the year ended March 31, 2012)
10.36	Development and Cross-Licensing Agreement between NEC TOKIN Corporation and KEMET Electronics Corporation (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on May 8, 2013)
10.37	Form of Long-Term Incentive Plan Award Agreement (incorporated by reference to Exhibit 10.39 to the Company's Annual Report on Form 10-K (File No. 1-15491) for the year ended March 31, 2013)*
10.38	Consolidated Amendment to Loan and Security Agreement, dated as of July 8, 2013, by and among KEMET Electronics Corporation, KEMET Foil Manufacturing, LLC, KEMET Blue Powder Corporation, KEMET Electronics Marketing (S) PTE LTD., the financial institutions party thereto as lenders and Bank of America, N.A., as agent (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q (File No. 1-15491) filed on August 2, 2013)
10.39	Release Agreement, dated as of August 29, 2013, between KEMET Corporation and Marc Kotelon (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q (File No. 1-15491)for the quarter ended September 30, 2013)*
10.40	Settlement Agreement, dated as of September 6, 2013, between KEMET Electronics SAS and Mark Kotelon (English translation) (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q (File No. 1-15491) for the quarter ended September 30, 2013)*
10.41	Amendment No. 5 to Loan and Security Agreement, dated April 30, 2014, among KEMET Electronics Corporation and its subsidiaries KEMET Foil Manufacturing, LLC, KEMET Blue Powder Corporation, and KEMET Electronics Marketing (S) PTE LTD., as Borrowers, and Bank of America, N.A., as agent for the Lenders (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 1-15491) filed on May 5, 2014)
10.42	2014 Amendment and Restatement of the 2014 KEMET Corporation 2011 Omnibus Equity Incentive Plan (incorporated by reference to the Company's Current Report on Form 8-K (File No. 1-15491) filed on July 24, 2014)*
10.43	Amendment No. 1 to Option Agreement, dated as of August 29, 2014, between KEMET Electronics Corporation and NEC Corporation (incorporated by reference to the Company's Current Report on Form 8-K (File No. 001-15491) filed on September 4, 2014)

58

10.44	Incentive Award, Severance and Non-Competition Agreement, dated as of December 1, 2014, between KEMET Corporation and William M. Lowe, Jr. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 1-15491) filed on December 5, 2014)*
10.45	Incentive Award and Non-Competition Agreement, dated as of December 1, 2014, between KEMET Corporation and Charles C. Meeks, Jr. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 1-15491) filed on December 5, 2014)*
10.46	Amendment No. 6 to Loan and Security Agreement, Waiver and Consent dated December 19, 2014, among KEMET Electronics Corporation, KEMET Foil Manufacturing, LLC, KEMET Blue Powder Corporation, The Forest Electric Company and KEMET Electronics Marketing (S) PTE LTD., as Borrowers, the financial institutions party thereto, as Lenders, and Bank of America, N.A., as agent for the Lenders (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 1-15491) filed on December 22, 2014)
21.1	Subsidiaries of KEMET Corporation
23.1	Consent of Independent Registered Public Accounting Firm, Ernst & Young LLP
23.2	Consent of Paumanok Publications, Inc.
31.1	Certification of the Chief Executive Officer Pursuant to Section 302
31.2	Certification of the Chief Financial Officer Pursuant to Section 302
32.1	Certification of the Chief Executive Officer Pursuant to Section 906
32.2	Certification of the Chief Financial Officer Pursuant to Section 906
99.1	NEC TOKIN Financial Statements as of March 31, 2015 and March 21, 2014 and for NEC TOKIN’s fiscal years ended March 31, 2015 and 2014 and two-month period ended March 31, 2013
101	The following financial information from KEMET Corporation's Annual Report on Form 10-K for the year ended March 31, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets at March 31, 2015, and March 31, 2014, (ii) Consolidated Statements of Income for the years ended March 31, 2015, 2014 and 2013, (iii) Consolidated Statements of Comprehensive Income for the years ended March 31, 2015, 2014 and 2013, (iv) Consolidated Statements of Changes in Stockholders' Equity for the years ended March 31, 2015, 2014 and 2013, (v) Consolidated Statements of Cash Flows for the years ended March 31, 2015, 2014 and 2013 and (vi) the Notes to Consolidated Financial Statements, tagged as blocks of text

_______________________________________________________________________________

* Exhibit is a management contract or a compensatory plan or arrangement.

59

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of KEMET Corporation

We have audited the accompanying consolidated balance sheets of KEMET Corporation and subsidiaries as of March 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income (loss), stockholders' equity, and cash flows for the three years in the period ended March 31, 2015. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of KEMET Corporation and subsidiaries at March 31, 2015 and 2014, and the consolidated results of their operations and their cash flows for the three years ended March 31, 2015, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), KEMET Corporation's internal control over financial reporting as of March 31, 2015, 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 May 21, 2015 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Greenville, South Carolina

May 21, 2015

60

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of KEMET Corporation

We have audited KEMET Corporation and subsidiaries' internal control over financial reporting as of March 31, 2015, 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). KEMET Corporation and subsidiaries' 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 Managements' 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 conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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. Our 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.

A 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.

Because 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.

In our opinion, KEMET Corporation and subsidiaries maintained, in all material respects, effective internal control over financial reporting as of March 31, 2015, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of KEMET Corporation and subsidiaries as of March 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the three years in the period ended March 31, 2015 of KEMET Corporation and subsidiaries and our report dated May 21, 2015 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Greenville, South Carolina

May 21, 2015

61

KEMET CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(Amounts in thousands except per share data)

	March 31,
	2015			2014
ASSETS
Current assets:
Cash and cash equivalents	$	56,362		$	57,929
Accounts receivable, net	90,857			98,947
Inventories, net	171,843			187,974
Prepaid and other current assets	41,503			36,871
Deferred income taxes	10,762			6,695
Current assets of discontinued operations	—			12,160
Total current assets	371,327			400,576
Property, plant and equipment, net	249,641			292,648
Goodwill	35,584			35,584
Intangible assets, net	33,282			37,184
Investment in NEC TOKIN	45,016			46,419
Restricted cash	1,775			13,512
Deferred income taxes	5,111			6,778
Other assets	11,056			10,130
Noncurrent assets of discontinued operations	—			836
Total assets	$	752,792		$	843,667
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	962		$	7,297
Accounts payable	69,785			74,818
Accrued expenses	60,456			76,468
Income taxes payable and deferred income taxes	1,017			980
Current liabilities of discontinued operations	—			7,269
Total current liabilities	132,220			166,832
Long-term debt	390,409			391,292
Other non-current obligations	57,131			55,864
Deferred income taxes	8,350			5,203
Noncurrent liabilities of discontinued operations	—			2,592
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.01, authorized 10,000 shares, none issued	—			—
Common stock, par value $0.01, authorized 175,000 shares, issued 46,508 shares at March 31, 2015 and 2014	465			465
Additional paid-in capital	461,191			465,027
Retained deficit	(245,881		)	(231,738		)
Accumulated other comprehensive income (loss)	(28,796		)	18,184
Treasury stock, at cost (1,056 and 1,301 shares at March 31, 2015 and 2014, respectively)	(22,297		)	(30,054		)
Total stockholders' equity	164,682			221,884
Total liabilities and stockholders' equity	$	752,792		$	843,667

See accompanying notes to consolidated financial statements.

62

KEMET CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(Amounts in thousands except per share data)

	Fiscal Years Ended March 31,
	2015			2014			2013
Net sales	$	823,192		$	833,666		$	823,903
Operating costs and expenses:
Cost of sales	663,683			712,925			697,076
Selling, general and administrative expenses	98,533			95,856			107,620
Research and development	25,802			24,466			26,876
Restructuring charges	13,017			14,122			18,719
Write down of long-lived assets	—			4,476			7,582
Goodwill impairment	—			—			1,092
Net (gain) loss on sales and disposals of assets	(221		)	32			18
Total operating costs and expenses	800,814			851,877			858,983
Operating income (loss)	22,378			(18,211		)	(35,080		)
Other (income) expense:
Interest income	(15		)	(195		)	(139		)
Interest expense	40,701			40,962			41,331
Non-operating (income) expense, net	(6,182		)	(2,681		)	(2,295		)
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(12,126		)	(56,297		)	(73,977		)
Income tax expense (benefit)	5,227			1,482			3,281
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(17,353		)	(57,779		)	(77,258		)
Equity income (loss) from NEC TOKIN	(2,169		)	(7,090		)	(1,254		)
Income (loss) from continuing operations	(19,522		)	(64,869		)	(78,512		)
Income (loss) from discontinued operations, net of income tax expense (benefit) of $1,976, $(98) and $37, respectively	5,379			(3,634		)	(3,670		)
Net income (loss)	$	(14,143	)	$	(68,503	)	$	(82,182	)
Net income (loss) per basic share:
Income (loss) from continuing operations	$	(0.43	)	$	(1.44	)	$	(1.75	)
Income (loss) from discontinued operations, net of income tax expense (benefit)	$	0.12		$	(0.08	)	$	(0.08	)
Net income (loss)	$	(0.31	)	$	(1.52	)	$	(1.83	)
Net income (loss) per diluted share:
Income (loss) from continuing operations	$	(0.43	)	$	(1.44	)	$	(1.75	)
Income (loss) from discontinued operations, net of income tax expense (benefit)	$	0.12		$	(0.08	)	$	(0.08	)
Net income (loss)	$	(0.31	)	$	(1.52	)	$	(1.83	)
Weighted-average shares outstanding:
Basic	45,381			45,102			44,897
Diluted	45,381			45,102			44,897

See accompanying notes to consolidated financial statements.

63

KEMET CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

(Amounts in thousands)

	Fiscal Years Ended March 31,
	2015			2014			2013
Net income (loss)	$	(14,143	)	$	(68,503	)	$	(82,182	)
Other comprehensive income (loss):
Foreign currency translation gains (losses), net of tax	(35,467		)	9,797			(4,569		)
Defined benefit pension plans, net of tax impact	(12,977		)	276			420
Defined benefit post-retirement plan adjustments	(305		)	(354		)	(177		)
Equity interest in investee's other comprehensive income (loss)	766			771			—
Foreign exchange contracts	1,003			—			—
Other comprehensive income (loss)	(46,980		)	10,490			(4,326		)
Total comprehensive income (loss)	$	(61,123	)	$	(58,013	)	$	(86,508	)

See accompanying notes to consolidated financial statements.

64

KEMET CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders' Equity

(Amounts in thousands)

	Shares Outstanding	Common Stock		Additional Paid-In Capital			Retained Deficit			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total Stockholders' Equity
Balance at March 31, 2012	44,669	$	465	$	470,059		$	(81,053	)	$	12,020		$	(42,495	)	$	358,996
Net income (loss)	—	—		—			(82,182		)	—			—			(82,182		)
Other comprehensive income (loss)	—	—		—			—			(4,326		)	—			(4,326		)
Issuance of restricted shares	270	—		(6,511		)	—			—			6,229			(282		)
Stock-based compensation expense	—	—		4,599			—			—			—			4,599
Exercise of stock options	50	—		(1,051		)	—			—			1,162			111
Balance at March 31, 2013	44,989	465		467,096			(163,235		)	7,694			(35,104		)	276,916
Net income (loss)	—	—		—			(68,503		)	—			—			(68,503		)
Other comprehensive income (loss)	—	—		—			—			10,490			—			10,490
Issuance of restricted shares	129	—		(3,164		)	—			—			2,986			(178		)
Stock-based compensation expense	—	—		2,909			—			—			—			2,909
Exercise of stock options	89	—		(1,814		)	—			—			2,064			250
Balance at March 31, 2014	45,207	465		465,027			(231,738		)	18,184			(30,054		)	221,884
Net income (loss)	—	—		—			(14,143		)	—			—			(14,143		)
Other comprehensive income (loss)	—	—		—			—			(46,980		)	—			(46,980		)
Issuance of restricted shares	239	—		(8,238		)	—			—			7,623			(615		)
Stock-based compensation expense	—	—		4,512			—			—			—			4,512
Exercise of stock options	6	—		(110		)	—			—			134			24
Balance at March 31, 2015	45,452	$	465	$	461,191		$	(245,881	)	$	(28,796	)	$	(22,297	)	$	164,682

See accompanying notes to consolidated financial statements.

65

KEMET CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Amounts in thousands)

	Fiscal Years Ended March 31,
	2015			2014			2013
Sources (uses) of cash and cash equivalents
Operating activities:
Net income (loss)	$	(14,143	)	$	(68,503	)	$	(82,182	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Gain on sale of discontinued operations	(5,644		)	—			—
Net cash provided by (used in) operating activities of discontinued operations	(679		)	336			4,828
Depreciation and amortization	40,768			49,527			45,158
Amortization of debt discount and debt issuance costs	2,032			3,596			4,138
Gain on early extinguishment of debt	(1,003		)	—			—
Equity loss from NEC TOKIN	2,169			7,090			1,254
Change in value of NEC TOKIN options	(2,100		)	(3,111		)	—
Net (gain) loss on sales and disposals of assets	(221		)	32			18
Stock-based compensation expense	4,512			2,909			4,599
Pension and other post-retirement benefits	(13,283		)	(78		)	1,071
Deferred income taxes	(2,084		)	(6,369		)	(317		)
Write down of long-lived assets	—			4,476			7,582
Write down of receivables	52			1,484			—
Goodwill impairment	—			—			1,092
Other, net	(7		)	(521		)	566
Changes in assets and liabilities:
Accounts receivable	8,220			(4,618		)	4,882
Inventories	8,559			14,891			(323		)
Prepaid expenses and other assets	(8,404		)	3,748			(11,151		)
Accounts payable	(2,879		)	(2,070		)	300
Accrued income taxes	(383		)	172			(1,052		)
Other operating liabilities	8,920			(9,737		)	(3,290		)
Net cash provided by (used in) operating activities	24,402			(6,746		)	(22,827		)
Investing activities:
Capital expenditures	(22,232		)	(32,147		)	(46,174		)
Investment in NEC TOKIN (excludes non cash investment)	—			—			(50,917		)
Change in restricted cash	11,509			4,047			(15,284		)
Proceeds from sale of discontinued operations	9,564			—			—
Proceeds from sale of assets	4,788			2,847			398
Net cash provided by (used in) investing activities	3,629			(25,253		)	(111,977		)

66

Consolidated Statements of Cash Flows (Continued)

	Fiscal Years Ended March 31,
	2015			2014			2013
Financing activities:
Proceeds from revolving line of credit	42,340			21,000			—
Payments of revolving line of credit	(27,342		)	(2,551		)	—
Proceeds from issuance of debt	—			—			39,825
Deferred acquisition payments	(19,527		)	(21,977		)	(16,900		)
Payment of long-term debt	(21,733		)	(3,599		)	(1,909		)
Debt issuance costs	—			—			(275		)
Proceeds from exercise of stock options	24			250			111
Purchase of treasury stock	(630		)	—			—
Net cash provided by (used in) financing activities	(26,868		)	(6,877		)	20,852
Net increase (decrease) in cash and cash equivalents	1,163			(38,876		)	(113,952		)
Effect of foreign currency fluctuations on cash	(2,730		)	827			(591		)
Cash and cash equivalents at beginning of fiscal year	57,929			95,978			210,521
Cash and cash equivalents at end of fiscal year	$	56,362		$	57,929		$	95,978
Supplemental Cash Flow Statement Information:
Interest paid, net of capitalized interest	$	39,008		$	38,809		$	32,232
Income taxes paid	6,611			5,521			6,029

See accompanying notes to consolidated financial statements.

67

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Note 1: Organization and Significant Accounting Policies

Nature of Business and Organization

KEMET Corporation, which together with its subsidiaries is referred to herein as "KEMET" or the "Company" is a leading manufacturer of tantalum capacitors, multilayer ceramic capacitors, film capacitors, electrolytic capacitors, paper capacitors and solid aluminum capacitors. The Company is headquartered in Simpsonville, South Carolina, which is part of the greater Greenville metropolitan area, and has manufacturing plants and distribution centers located in the United States, Mexico, Europe and Asia. Additionally, the Company has wholly-owned foreign subsidiaries which primarily provide sales support for KEMET's products in foreign markets.

KEMET is organized into two business groups: the Solid Capacitor Business Group ("Solid Capacitors") and the Film and Electrolytic Business Group ("Film and Electrolytic"). Each business group is responsible for the operations of certain manufacturing sites as well as related research and development efforts.

Basis of Presentation

Certain amounts for fiscal years 2014 and 2013 have been reclassified to conform to the fiscal year 2015 presentation of income tax rate reconciliation and NEC TOKIN's presentation of discontinued operations.

Principles of Consolidation

The accompanying consolidated financial statements of the Company include the accounts of its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Investment in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investments in equity interests on the consolidated balance sheets.

Cash Equivalents

Cash equivalents of $0.7 million at March 31, 2015 and 2014 consist of money market accounts with an original term of three months or less. The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents.

Restricted Cash

As discussed in Note 2, Debt, the Company repaid the outstanding balance of the original equipment manufacturer ("OEM") Advance Payment (as defined in Note 2, Debt) and removed the restriction on cash related to the Advance Payment during the third quarter ended December 31, 2014.

A guarantee was issued by a European bank on behalf of the Company in August 2006 in conjunction with the establishment of a Value-Added Tax registration in The Netherlands. The bank guarantee is in the amount of €1.5 million ($1.6 million). An interest-bearing deposit was placed with a European bank for €1.7 million ($1.8 million). The deposit is in KEMET's name and KEMET receives all interest earned by this deposit. However, the deposit is pledged to the European bank, and the bank can use the money should a valid claim be made. The bank guarantee will remain valid until it is discharged by the beneficiary.

Inventories

Inventories are stated at the lower of cost or market. The carrying value of inventory is reviewed and adjusted based on slow moving and obsolete items, historical shipments, customer forecasts and backlog and technology developments. Inventory costs include material, labor and manufacturing overhead and most inventory costs are determined by the "first-in, first-out" ("FIFO") method. For tool crib, a component of the Company's raw material inventory, cost is determined under the average cost method. The Company has consigned inventory at certain customer locations totaling $10.8 million and $9.2 million at March 31, 2015 and 2014, respectively.

68

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 1: Organization and Significant Accounting Policies (Continued)

Property, Plant and Equipment

Property and equipment are carried at cost. Depreciation is calculated principally using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the terms of the respective leases. Maintenance costs are expensed; expenditures for renewals and improvements are generally capitalized. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed and any gain or loss is recognized. A long-lived asset classified as held for sale is initially measured and reported at the lower of its carrying amount or fair value less cost to sell. Long-lived assets to be disposed of other than by sale are classified as held and used until the long-lived asset is disposed of. Depreciation expense, including amortization of capital leases, was $38.2 million, $47.5 million and $43.0 million for the fiscal years ended March 31, 2015, 2014 and 2013, respectively.

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Reviews are regularly performed to determine whether facts and circumstances exist which indicate the carrying amount of assets may not be recoverable. The Company assesses the recoverability of its assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. If it is determined that the book value of a long-lived asset or asset group is not recoverable, an impairment loss would be calculated equal to the excess of the carrying amount of the long-lived asset over its fair value. The fair value is calculated as the discounted cash flows of the underlying assets or appraisal values. The Company has to make certain assumptions as to the future cash flows to be generated by the underlying assets. Those assumptions include the amount of volume increases, average selling price decreases, anticipated cost reductions, and the estimated remaining useful life of the equipment. Future changes in assumptions may negatively impact future valuations. Fair market value is based on the undiscounted cash flows that the assets will generate over their remaining useful lives or other valuation techniques. In future tests for recoverability, adverse changes in undiscounted cash flow assumptions could result in an impairment of certain long-lived assets that would require a non-cash charge to the Consolidated Statements of Operations and may have a material effect on the Company's financial condition and operating results. The Company recorded zero, $4.5 million, and $7.3 million in property, plant and equipment impairment charges for fiscal years 2015, 2014 and 2013, respectively.

Goodwill

Goodwill and other intangible assets with indefinite useful lives are not amortized but are subject to annual impairment tests during the fourth quarter of each fiscal year and when otherwise warranted. The Company evaluates its goodwill and intangible assets with indefinite useful lives on a reporting unit basis which requires the Company to estimate the fair value of the reporting units based on the future net cash flows expected to be generated. The impairment test involves a comparison of the fair value of each reporting unit, with the corresponding carrying amounts. If the reporting unit's carrying amount exceeds its fair value, then an indication exists that the reporting unit's goodwill and intangible asset with indefinite useful lives may be impaired. The impairment to be recognized is measured by the amount by which the carrying value of the reporting unit's goodwill being measured exceeds its implied fair value. The implied fair value of goodwill is the excess of the fair value of the reporting unit over the sum of the amounts assigned to identified net assets. As a result, the implied fair value of goodwill is generally the residual amount that results from subtracting the value of net assets including all tangible assets and identified intangible assets from the fair value of the reporting unit's fair value. The Company determined the fair value of its reporting units using an income-based, discounted cash flow ("DCF") analysis, and market-based approaches (Guideline Publicly Traded Company Method and Guideline Transaction Method) which examine transactions in the marketplace involving the sale of the stocks of similar publicly owned companies, or the sale of entire companies engaged in operations similar to KEMET. In addition to the above described reporting unit valuation techniques, the Company's goodwill and intangible asset with indefinite useful lives impairment assessment also considers the Company's aggregate fair value based upon the value of the Company's outstanding shares of common stock.

The impairment review of goodwill and intangible assets with indefinite useful lives are highly subjective and involve the use of estimates and assumptions in order to calculate the impairment charges. Estimates of business enterprise fair value use discounted cash flow and other fair value appraisal models and involve making assumptions for future sales trends, market conditions, growth rates, cost reduction initiatives and cash flows for the next several years. Future changes in assumptions may negatively impact future valuations.

69

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 1: Organization and Significant Accounting Policies (Continued)

Equity Method Investment

Investments and ownership interests are accounted for under the equity method of accounting if the Company has the ability to exercise significant influence, but not control, over the entity. Investments accounted for under the equity method are initially recorded at cost, and the difference between the basis of the Company's investment and the underlying equity in the net assets of NEC TOKIN at the investment date, if any, is amortized over the lives of the related assets that gave rise to the difference. The Company's share of earnings or losses under the equity method investments and basis difference amortization is reported in the consolidated statements of operations as "Equity income (loss) from NEC TOKIN." The Company reviews its investments and ownership interests accounted for under the equity method of accounting for impairment whenever events or changes in circumstances indicate a loss in the value of the investment may be other than temporary.

Deferred Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized.

Stock-based Compensation

Stock-based compensation for stock options is estimated on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes model takes into account volatility in the price of the Company's stock, the risk-free interest rate, the estimated life of the equity-based award, the closing market price of the Company's stock on the grant date and the exercise price. The estimates utilized in the Black-Scholes calculation involve inherent uncertainties and the application of management judgment. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those options expected to vest. Stock-based compensation cost for restricted stock is measured based on the closing fair market value of the Company's common stock on the date of grant. The Company recognizes stock-based compensation cost for arrangements with cliff vesting as expense ratably on a straight-line basis over the requisite service period. The Company recognizes stock-based compensation cost for arrangements with graded vesting as expense on an accelerated basis over the requisite service period.

Concentrations of Credit and Other Risks

The Company sells to customers globally. Credit evaluations of its customers' financial condition are performed periodically, and the Company generally does not require collateral from its customers. One customer, TTI, Inc., an electronics distributor, accounted for $124.4 million, $128.4 million and $127.8 million of the Company's net sales in fiscal years 2015, 2014 and 2013, respectively. There were no customers' accounts receivable balances exceeding 10% of gross accounts receivable at March 31, 2015 or March 31, 2014.

Consistent with industry practice, the Company utilizes electronics distributors for a large percentage of its sales. Electronics distributors are an effective means to distribute the products to end-users. For fiscal years ended March 31, 2015, 2014, and 2013, net sales to electronics distributors accounted for 45%, 45% and 46%, respectively, of the Company's total net sales.

Foreign Subsidiaries

Financial statements of certain of the Company's foreign subsidiaries are prepared using the U.S. dollar as their functional currency. Translation of these foreign operations, as well as gains and losses from non-U.S. dollar foreign currency transactions, such as those resulting from the settlement of foreign receivables or payables, are reported in the Consolidated Statements of Operations.

Translation of other foreign operations to U.S. dollars occurs using the current exchange rate for balance sheet accounts and an average exchange rate for results of operations. Such translation gains or losses are recognized as a component of equity in accumulated other comprehensive income ("AOCI").

70

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 1: Organization and Significant Accounting Policies (Continued)

Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income (losses), currency translation gains (losses), defined benefit plan adjustments including those adjustments which result from changes in net prior service credit and actuarial gains (losses), equity interest in investee's other comprehensive income (loss) and is presented in the Consolidated Statements of Comprehensive Income (Loss).

The following summary sets forth the components of accumulated other comprehensive income (loss) contained in the stockholders' equity section of the Consolidated Balance Sheets (amounts in thousands):

	Foreign Currency Translation Gains (Losses)			Defined Benefit Post-retirement Plan Adjustments			Defined Benefit Pension Plans (3)			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)		Foreign Exchange Contracts		Net Accumulated Other Comprehensive Income (Loss)
Balance at March 31, 2013	$	13,538		$	1,818		$	(7,662	)	$	—	$	—	$	7,694
Other comprehensive income (loss) before reclassifications (1)	9,797			(94		)	(95		)	771		—		10,379
Amounts reclassified out of AOCI (1)	—			(260		)	371			—		—		111
Other comprehensive income (loss)	9,797			(354		)	276			771		—		10,490
Balance at March 31, 2014	23,335			1,464			(7,386		)	771		—		18,184
Other comprehensive income (loss) before reclassifications (2)	(35,467		)	(119		)	(13,404		)	766		1,003		(47,221		)
Amounts reclassified out of AOCI (2)	—			(186		)	427			—		—		241
Other comprehensive income (loss)	(35,467		)	(305		)	(12,977		)	766		1,003		(46,980		)
Balance at March 31, 2015	$	(12,132	)	$	1,159		$	(20,363	)	$	1,537	$	1,003	$	(28,796	)

_______________________________________________________________________________

(1) Activity within foreign currency translation gains and defined benefit pension plans are net of a tax expense of $1.9 million and a tax benefit of $0.1 million.

(2) Activity within foreign currency translation losses and defined benefit pension plans are net of a tax benefit of $0.3 million and $0.1 million, respectively.

(3) Balance is net of a tax benefit of $2.3 million, $2.2 million, and $2.1 million as of March 31, 2015, March 31, 2014, and March 31, 2013, respectively.

Stock Warrant

Concurrent with the consummation of a credit facility, the Company issued K Financing, LLC ("K Financing") a warrant (the "Platinum Warrant") to purchase up to 26,848,484 shares of the Company's common stock, subject to certain adjustments, representing approximately 49.9% of the Company's outstanding common stock at the time of issuance on a post-exercise basis. The Platinum Warrant was subsequently transferred to K Equity, LLC ("K Equity"). The Platinum Warrant is exercisable at a purchase price of $1.05 per share. The Platinum Warrant may be exercised in exchange for cash, by means of net settlement of a corresponding portion of amounts owed by the Company under the Revised Amended and Restated Platinum Credit Facility, by cashless exercise to the extent of appreciation in the value of the Company's common stock above the exercise price of the Platinum Warrant, or by combination of the preceding alternatives.

Warrants may be classified as assets or liabilities (derivative accounting), temporary equity, or permanent equity, depending on the terms of the specific warrant agreement. The Platinum Warrant issued to K Financing under the Platinum Credit Facility (as defined below) does not meet the definition of a derivative as it is indexed to the Company's own stock, as such, the Platinum Warrant is classified as a component of equity.

There were 8,416,815 shares subject to the Platinum Warrant as of March 31, 2015. The Platinum Warrant expires on June 30, 2019.

71

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 1: Organization and Significant Accounting Policies (Continued)

Fair Value Measurement

The Company utilizes three levels of inputs to measure the fair value of (a) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company's consolidated financial statements on a recurring basis (at least annually) and (b) all financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The first two inputs are considered observable and the last is considered unobservable. The levels of inputs are as follows:

• Level 1—Quoted prices in active markets for identical assets or liabilities.

• Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and liabilities are measured at fair value on a recurring basis as of March 31, 2015 and 2014 are as follows (amounts in thousands):

	Carrying Value March 31, 2015		Fair Value March 31, 2015		Fair Value Measurement Using
					Level 1		Level 2 (2)		Level 3
Assets and Liabilities:
Money markets (1)	$	738	$	738	$	738	$	—	$	—
Total debt	391,371		391,283		362,988		28,295		—
NEC TOKIN options, net (3)	5,700		5,700		—		—		5,700
	Carrying Value March 31, 2014		Fair Value March 31, 2014		Fair Value Measurement Using
					Level 1		Level 2 (2)		Level 3
Assets and Liabilities:
Money markets (1)	$	714	$	714	$	714	$	—	$	—
Total debt	398,589		409,284		371,863		37,421		—
NEC TOKIN options, net (3)	3,600		3,600		—		—		3,600

_______________________________________________________________________________

(1) Included in the line item "Cash and cash equivalents" on the Consolidated Balance Sheets.

(2) The valuation approach used to calculate fair value was a discounted cash flow for each respective debt facility.

(3) See Note 5, "Investment in NEC TOKIN," for a description of the NEC TOKIN options. The value of the options is interrelated and depends on the enterprise value of NEC TOKIN Corporation and its EBITDA over the duration of the instruments. Therefore, the options have been valued using option pricing methods in a Monte Carlo simulation.

The table below summarizes NEC TOKIN options valuation activity using significant unobservable inputs (Level 3) (amounts in thousand):

March 31, 2014	$	3,600
Change in value of NEC TOKIN options	2,100
March 31, 2015	$	5,700

72

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 1: Organization and Significant Accounting Policies (Continued)

Revenue Recognition

The Company ships products to customers based upon firm orders and revenue is recognized when the sales process is complete. This occurs when products are shipped to the customer in accordance with the terms of an agreement of sale, there is a fixed or determinable selling price, title and risk of loss have been transferred and collectability is reasonably assured. Shipping and handling costs are included in cost of sales.

A portion of sales is related to products designed to meet customer specific requirements. These products typically have stricter tolerances making them useful to the specific customer requesting the product and to customers with similar or less stringent requirements. The Company recognizes revenue when title to the products transfers to the customer.

A portion of sales is made to distributors under agreements allowing certain rights of return and price protection on unsold merchandise held by distributors. The Company's distributor policy includes inventory price protection and "ship-from-stock and debit" ("SFSD") programs common in the industry.

KEMET's SFSD program provides authorized distributors with the flexibility to meet marketplace prices by allowing them, upon a case-by-case pre-approved basis, to adjust their purchased inventory cost to correspond with current market demand. Requests for SFSD adjustments are considered on an individual basis, require a pre-approved cost adjustment quote from their local KEMET sales representative and apply only to a specific customer, part, a specified special price amount, a specified quantity, and is only valid for a specific period of time.  To estimate potential SFSD adjustments corresponding with current period sales, KEMET records a sales reserve based on historical SFSD credits, distributor inventory levels, and certain accounting assumptions, all of which are reviewed quarterly. 

Most of the Company's distributors have the right to return to KEMET a certain portion of the purchased inventory, which, in general, does not exceed 6% of their purchases from the previous fiscal quarter. KEMET estimates future returns based on historical patterns of the distributors and records an allowance on the Consolidated Balance Sheets. The Company also offers volume-based rebates on a case-by-case basis to certain customers in each of the Company's sales channels.

The establishment of sales allowances is recognized as a component of the line item "Net sales" on the Consolidated Statements of Operations, while the associated reserves are included in the line item "Accounts receivable, net" on the Consolidated Balance Sheets. Estimates used in determining sales allowances are subject to various factors. This includes, but is not limited to, changes in economic conditions, pricing changes, product demand, inventory levels in the supply chain, the effects of technological change, and other variables that might result in changes to the Company's estimates.

The Company provides a limited warranty to customers that the Company's products meet certain specifications. The warranty period is generally limited to one year, and the Company's liability under the warranty is generally limited to a replacement of the product or refund of the purchase price of the product. Warranty costs were less than 1% of net sales for the fiscal years ended March 31, 2015, 2014 and 2013. The Company recognizes warranty costs when losses are both probable and reasonably estimable.

Allowance for Doubtful Accounts

The Company evaluates the collectability of trade receivables through the analysis of customer accounts. When the Company becomes aware that a specific customer has filed for bankruptcy, has begun closing or liquidation proceedings, has become insolvent or is in financial distress, the Company records a specific allowance for the doubtful account to reduce the related receivable to the amount the Company believes is collectible. If circumstances related to specific customers change, the Company's estimates of the recoverability of receivables could be adjusted. Accounts are written off after all means of collection, including legal action, have been exhausted.

Shipping and Handling Costs

The Company's shipping and handling costs are reflected in the line item "Cost of sales" on the Consolidated Statements of Operations. Shipping and handling costs were $17.9 million, $19.9 million, and $21.1 million in the fiscal years ended March 31, 2015, 2014 and 2013, respectively.

73

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 1: Organization and Significant Accounting Policies (Continued)

Income (Loss) per Share

Basic income (loss) per share is computed using the weighted-average number of shares outstanding. Diluted income (loss) per share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to the Platinum Warrant, outstanding options to purchase common stock if such effects are dilutive.

Environmental Cost

The Company recognizes liabilities for environmental remediation when it is probable that a liability has been incurred and can be reasonably estimated. The Company determines its liability on a site-by-site basis, and it is not discounted or reduced for anticipated recoveries from insurance carriers. In the event of anticipated insurance recoveries, such amounts would be presented on a gross basis in other current or non-current assets, as appropriate. Expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized.

Derivative Financial Instruments

Derivative financial instruments have been utilized by the Company to reduce exposures to volatility of foreign currencies impacting the sales and costs of its products.

The Company accounts for derivatives and hedging activities in accordance with Accounting Standards Codification 815 ("ASC 815"), "Derivatives and Hedging." See Note 13 for further discussion of derivative financial instruments.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make a number of estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. In addition, they affect the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include impairment of property and equipment, intangibles and goodwill; allowances for doubtful accounts, price protection and customers' returns, and deferred income taxes; and assets and obligations related to employee benefits. Actual results could differ from these estimates and assumptions.

Impact of Recently Issued Accounting Standards

In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-15, Presentation of Financial Statements-Going Concern. The new guidance is effective for the Company's fiscal year that begins on April 1, 2017 and interim periods within that fiscal year and requires management to assess if there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. This new guidance is not expected to have a material impact on the Company's Consolidated Financial Statements.

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, which supersedes existing accounting standards for revenue recognition and creates a single framework. The new guidance is effective for the Company's fiscal year that begins on April 1, 2017 and interim periods within that fiscal year and requires either a retrospective or a modified retrospective approach to adoption. The Company is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures, as well as the available transition methods. Early adoption is prohibited.

In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). ASU 2014-08 changes the definition of a discontinued operations and modifies related disclosure requirements. The new guidance is effective on a prospective basis for fiscal years beginning after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015. This new guidance did not have a material impact on the Company's Consolidated Financial Statements.

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740). ASU 2013-11 requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, with early

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Notes to Consolidated Financial Statements (Continued)

Note 1: Organization and Significant Accounting Policies (Continued)

adoption permitted. ASU 2013-11 was effective for the Company on April 1, 2014 and did not have a material effect on the Company's Consolidated Financial Statements.

In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830). The ASU revised the authoritative guidance on accounting for cumulative translation adjustment specifying that a cumulative translation adjustment should be released into earnings when an entity ceases to have a controlling financial interest in a subsidiary or a group of assets within a consolidated foreign entity and the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. For sales of an equity method investment that is a foreign entity, a pro rata portion of cumulative translation adjustment attributable to the investment would be recognized in earnings upon sale of the investment. The guidance is effective for fiscal years beginning after December 15, 2013. ASU 2013-05 was effective for the Company on April 1, 2014 and did not have a material effect on the Company's Consolidated Financial Statements.

There are currently no other accounting standards that have been issued that may have a significant impact on the Company's Consolidated Financial Statements.

Note 2: Debt

A summary of debt is as follows (amounts in thousands):

	March 31,
	2015			2014
10.5% Senior Notes, net of premium of $2,461 and $3,144 as of March 31, 2015 and 2014, respectively	$	357,461		$	358,144
Advanced payment from OEM, net of discount of $323 as of March 31, 2014	—			20,095
Revolving line of credit	33,448			18,449
Other	462			1,901
Total debt	391,371			398,589
Current maturities, net of discount of $278 as of March 31, 2014	(962		)	(7,297		)
Total long-term debt	$	390,409		$	391,292

The line item "Interest expense" on the Consolidated Statements of Operations for the fiscal years 2015, 2014 and 2013, respectively, is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014		2013
Contractual interest expense	$	38,716		$	37,366	$	37,193
Amortization of debt issuance costs	1,467			1,704		1,704
Amortization of debt (premium) discount	(407		)	105		(183		)
Imputed interest on acquisition related obligations	754			1,787		2,617
Interest expense on capital leases	171			—		—
Total interest expense	$	40,701		$	40,962	$	41,331

Revolving Line of Credit

On September 30, 2010, KEMET Electronics Corporation ("KEC") and KEMET Electronics Marketing (S) Pte Ltd. ("KEMET Singapore") (each a "Borrower" and, collectively, the "Borrowers") entered into a Loan and Security Agreement (the "Loan and Security Agreement"), with Bank of America, N.A, as the administrative agent and the initial lender. The Loan and Security Agreement provides a $50.0 million revolving line of credit, which is bifurcated into a U.S. facility (for which KEC is the Borrower) and a Singapore facility (for which KEMET Singapore is the Borrower). A portion of the U.S. facility and the Singapore facility can be used to issue letters of credit. On December 19, 2014, the Loan and Security Agreement was amended and as a result the expiration was extended to December 19, 2019. Under the terms of amended Loan and Security Agreement, the revolving credit facility has increased to $60.0 million, bifurcated into a U.S. facility (for which KEC is the Borrower) and a Singapore facility (for which KEMET Singapore is the Borrower). The amendment contains an accordion

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Notes to Consolidated Financial Statements (Continued)

Note 2: Debt (continued)

feature permitting the U.S. Borrowers to increase commitments under the facility by an aggregate principal amount up to $15.0 million (for a total facility of $75.0 million), subject to terms and documentation acceptable to the Agent and/or the Lenders. In addition, KEMET Foil Manufacturing, LLC, KEMET Blue Powder Corporation and The Forest Electric Company were included as Borrowers under the U.S. facility. The principal features of the Loan and Security Agreement as amended are reflected in the description below.

The size of the U.S. facility and Singapore facility can fluctuate as long as the Singapore facility does not exceed $30.0 million and the total facility does not exceed $60.0 million.

Borrowings under the U.S. and Singapore facilities are subject to a borrowing base consisting of:

• in the case of the U.S. facility, (A) 85% of KEC's accounts receivable that satisfy certain eligibility criteria plus (B) the lesser of (i) $6.0 million and (ii) (a) on or prior to agent’s receipt of an updated inventory appraisal and agent’s approval thereof, 40% of the value of Eligible Inventory (as defined in the agreement) and (b) upon agent’s receipt of an updated inventory appraisal, 85% of the net orderly liquidation value of the Eligible Inventory (as defined in the agreement) plus (C) the lesser of $5.1 million and 80% of the net orderly liquidation percentage of the appraised value of equipment that satisfies certain eligibility criteria, as reduced on the first day of each fiscal quarter occurring after April 30, 2014 in an amount equal to one-twentieth (1/20) of such appraised value less (D) certain reserves, including certain reserves imposed by the administrative agent in its permitted discretion; and

• in the case of the Singapore facility, (A) 85% of KEMET Singapore's accounts receivable that satisfy certain eligibility criteria as further specified in the Amendment, less (B) certain reserves, including certain reserves imposed by the administrative agent in its permitted discretion.

Interest is payable on borrowings monthly at a rate equal to the London Interbank Offer Rate ("LIBOR") or the base rate, plus an applicable margin, as selected by the Borrower. Depending upon the fixed charge coverage ratio of KEMET Corporation and its subsidiaries on a consolidated basis as of the latest test date, the applicable margin under the U.S. facility varies between 2.00% and 2.50% for LIBOR advances and 1.00% and 1.50% for base rate advances, and under the Singapore facility varies between 2.25% and 2.75% for LIBOR advances and 1.25% and 1.75% for base rate advances.

The base rate is subject to a floor that is 100 basis points above LIBOR.

An unused line fee is payable monthly in an amount equal to a per annum rate equal to (a) 0.50%, if the average daily balance of revolver loans and stated amount of letters of credit was 50% or less of the revolver commitments during the preceding calendar month, or (b) 0.375%, if the average daily balance of revolver loans and stated amount of letters of credit was more than 50% of the Revolver Commitment during the preceding calendar month. A customary fee is also payable to the administrative agent on a quarterly basis.

KEC's ability to draw funds under the U.S. facility and KEMET Singapore's ability to draw funds under the Singapore facility are conditioned upon, among other matters:

• the absence of the existence of a Material Adverse Effect (as defined in the Loan and Security Agreement);

• the absence of the existence of a default or an event of default under the Loan and Security Agreement; and

• the representations and warranties made by KEC and KEMET Singapore in the Loan and Security Agreement continuing to be correct in all material respects.

KEMET Corporation and the Guarantors guarantee the U.S. facility obligations and the U.S. facility obligations are secured by a lien on substantially all of the assets of KEC and the Guarantors (other than assets that secure the 10.5% Senior Notes due 2018). The collection accounts of the Borrowers and Guarantors are subject to a daily sweep into a concentration account and the concentration account will become subject to full cash dominion in favor of the administrative agent (i) upon an event of default, (ii) if for five consecutive business days, aggregate availability of all facilities has been less than the greater of (A) 12.5% of the aggregate revolver commitments at such time and (B) $7.5 million, or (iii) if for five consecutive business days, availability of the U.S. facility has been less than $3.75 million (each such event, a "Cash Dominion Trigger Event").

KEC and the Guarantors guarantee the Singapore facility obligations. In addition to the assets that secure the U.S. facility, the Singapore obligations are also secured by a pledge of 100% of the stock of KEMET Singapore and a security

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Notes to Consolidated Financial Statements (Continued)

Note 2: Debt (continued)

interest in substantially all of KEMET Singapore's assets. KEMET Singapore's bank accounts are maintained at Bank of America and upon a Cash Dominion Trigger Event will become subject to full cash dominion in favor of the administrative agent.

A fixed charge coverage ratio of at least 1.0:1.0 must be maintained as at the last day of each fiscal quarter ending immediately prior to or during any period in which any of the following occurs and is continuing until none of the following occurs for a period of at least forty-five consecutive days: (i) an event of default, (ii) aggregate availability of all facilities hasbeen less than the greater of (A) 12.5% of the aggregate revolver commitments at such time and (B) $7.5 million, or (iii) availability of the U.S. facility has been less than $3.75 million. The fixed charge coverage ratio tests the EBITDA and fixed charges of KEMET Corporation and its subsidiaries on a consolidated basis.

In addition, the Loan and Security Agreement includes various covenants that, subject to exceptions, limit the ability of KEMET Corporation and its direct and indirect subsidiaries to, among other things: incur additional indebtedness; create liens on assets; engage in mergers, consolidations, liquidations and dissolutions; sell assets (including pursuant to sale leaseback transactions); pay dividends and distributions on or repurchase capital stock; make investments (including acquisitions), loans, or advances; prepay certain junior indebtedness; engage in certain transactions with affiliates; enter into restrictive agreements; amend material agreements governing certain junior indebtedness; and change its lines of business. The Loan and Security Agreement includes certain customary representations and warranties, affirmative covenants and events of default, which are set forth in more detail in the Loan and Security Agreement.

Debt issuance costs related to the Loan and Security Agreement, net of amortization, were $0.3 million and $0.2 million as of March 31, 2015 and 2014, respectively; these costs will be amortized over the term of the Loan and Security Agreement.

As of March 31, 2014, the Company had outstanding borrowings of $18.4 million under the revolving line of credit, of which $6.4 million was borrowed under the U.S. facility at a rate of 5.75% (Base Rate, as defined in the Loan and Security Agreement, plus 2.5%) and $12.0 million borrowed under the Singapore facility at a rate of 4.0% (London Interbank Offer Rate (“LIBOR”) plus 3.75%). As of March 31, 2015, the Company had outstanding borrowings of $33.4 million, of which $21.5 million was borrowed under the U.S. facility at a rate of 4.75% (Base Rate, as defined in the Loan and Security Agreement, plus 1.5%) with no specific repayment date (Base Rate borrowing can be repaid at any time prior to the expiration of the facility), and $12.0 million borrowed under the Singapore facility at a rate of 3.125% (London Interbank Offer Rate (“LIBOR”) plus 2.75% based upon the fixed charge coverage ratio of KEMET Corporation and its subsidiaries on a consolidated basis). The $12.0 million borrowed under the Singapore facility has a term of 90 days and total interest and principal payable at maturity, on May 25, 2015. These were the only borrowings under the revolving line of credit, and $33.4 million remained outstanding as of March 31, 2015, after the Company made repayments of $27.3 million during the fiscal year ended March 31, 2015. Based upon the March 31, 2015 financial statements, the Company's available borrowing capacity under the Loan and Security Agreement was $13.4 million.

As described below in the section titled "Advanced Payment from OEM", a standby letter of credit for $16.0 million was delivered to the OEM on October 8, 2012 and subsequently, during December 2014, at the Company's discretion, it opted to repay the Advanced Payment primarily using the revolving line of credit. The letter of credit was simultaneously released. In fiscal year 2014, the Company issued two letters of credit for EUR 1.1 million ($1.2 million) and EUR 0.7 million ($0.7 million) related to the construction of the new manufacturing location in Italy which were released during February 2014 and April 2014, respectively. Outstanding letters of credit would reduce the Company's availability under the Loan and Security Agreement. As of March 31, 2015, there were no letters of credit outstanding.

Advanced Payment from OEM

On August 28, 2012, the Company entered into and amended an agreement (the "Agreement"), with an original equipment manufacturer (the "OEM") pursuant to which the OEM agreed to advance KEMET $24.0 million (the "Advance Payment"). As of March 31, 2014, the Company had $20.4 million outstanding due to the OEM. On a monthly basis starting in June 2013, (eight months following the receipt of the Advance Payment), the Company began repaying the OEM an amount equal to a percentage of the aggregate purchase price of the capacitors sold to the OEM the preceding month, not to exceed $1.0 million per month. Pursuant to the terms of the Agreement, an irrevocable standby letter of credit in the amount of $16.0 million was delivered to the OEM on October 8, 2012 and on October 22, 2012 the Company received the Advance Payment from the OEM. The debt discount related to the Advance Payment as of March 31, 2014 was $0.3 million. During December 2014, the outstanding balance due on the Advanced Payment was repaid primarily using the revolving line of credit, and the

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Notes to Consolidated Financial Statements (Continued)

Note 2: Debt (continued)

letter of credit was simultaneously released. The early extinguishment of debt resulted in a gain of $1.0 million which was included on the line item “Other (income) expense, net” in the Consolidated Statement of Operations.

10.5% Senior Notes

On May 5, 2010, the Company issued 10.5% Senior Notes with an aggregate principal amount of $230.0 million which resulted in net proceeds to the Company of $222.2 million.

The 10.5% Senior Notes were issued pursuant to an Indenture (the "10.5% Senior Notes Indenture"), dated as of May 5, 2010, by and among the Company, Guarantors and Wilmington Trust Company, as trustee (the "Trustee"). The 10.5% Senior Notes will mature on May 1, 2018, and bear interest at a stated rate of 10.5% per annum, payable semi-annually in cash in arrears on May 1 and November 1 of each year, beginning on November 1, 2010. The 10.5% Senior Notes are senior obligations of the Company and will be guaranteed by each of the Guarantors and secured by a first priority lien on 51% of the capital stock of certain of the Company's foreign restricted subsidiaries.

The terms of the 10.5% Senior Notes Indenture, among other things, limit the ability of the Company and its restricted subsidiaries to (i) incur additional indebtedness or issue certain preferred stock; (ii) pay dividends on, or make distributions in respect of, their capital stock or repurchase their capital stock; (iii) make certain investments or other restricted payments; (iv) sell certain assets; (v) create liens or use assets as security in other transactions; (vi) enter into sale and leaseback transactions; (vii) merge, consolidate or transfer or dispose of substantially all of their assets; (viii) engage in certain transactions with affiliates; and (ix) designate their subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of important limitations and exceptions that are described in the 10.5% Senior Notes Indenture. The Company is in compliance with these debt covenants.

At any time on or after May 1, 2014, the Company may redeem the 10.5% Senior Notes, in whole or in part, at a redemption price determined by the year of redemption, as specified in the Indenture. 

Upon the occurrence of a change of control triggering event specified in the 10.5% Senior Notes Indenture, the Company must offer to purchase the 10.5% Senior Notes at a redemption price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase.

The 10.5% Senior Notes Indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the 10.5% Senior Notes Indenture, payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. The 10.5% Senior Notes Indenture also provides for events of default with respect to the collateral, which include default in the performance of (or repudiation, disaffirmation or judgment of unenforceability or assertion of unenforceability) by the Company or a Guarantor with respect to the provision of security documents under the 10.5% Senior Notes Indenture. These events of default are subject to a number of important qualifications, limitations and exceptions that are described in the 10.5% Senior Notes Indenture. Generally, if an event of default occurs, the Trustee or holders of at least 25% in principal amount of the then outstanding 10.5% Senior Notes may declare the principal of and accrued but unpaid interest, including additional interest, on all the 10.5% Senior Notes to be due and payable.

On March 27, 2012 and April 3, 2012, the Company completed the issuance of $110.0 million and $15.0 million aggregate principal amount of its 10.5% Senior Notes due April 2018, respectively, at an issue price of 105.5% of the principal amount plus accrued interest from November 1, 2011. The issuance resulted in a debt premium of $6.1 million which will be amortized over the term of the 10.5% Senior Notes. The Senior Notes were issued as additional notes under the indenture, dated May 5, 2010, among the Company, the guarantors party thereto and Wilmington Trust Company, as trustee.

In total, debt issuance costs related to the 10.5% Senior Notes, net of amortization, were $4.1 million and $5.4 million as of March 31, 2015 and 2014; these costs will be amortized over the term of the 10.5% Senior Notes. The Company had interest payable related to the 10.5% Senior Notes included in the line item "Accrued expenses" on its Consolidated Balance Sheets of $15.5 million at March 31, 2015 and 2014. The effective interest rate for the Senior Notes was 10.3% for the years ended March 31, 2015 and 2014.

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Notes to Consolidated Financial Statements (Continued)

Note 2: Debt (continued)

The following table highlights the Company's annual cash maturities of debt (amounts in thousands):

	Annual Maturities of Debt Fiscal Years Ended March 31,
	2016		2017		2018		2019		2020
10.5% Senior Notes	$	—	$	—	$	—	$	355,000	$	—
Revolving line of credit	500		—		—		—		32,948
Other	462		—		—		—		—
	$	962	$	—	$	—	$	355,000	$	32,948

Note 3: Restructuring

In the second quarter of fiscal year 2010, the Company initiated the first phase of a plan to restructure the Film and Electrolytic Business Group ("Film and Electrolytic") and to reduce overhead within the Company. Since that time, the restructuring plan has been expanded to all business groups and includes implementing programs to make the Company more competitive by removing excess capacity, moving production to lower cost locations, and eliminating unnecessary costs throughout the Company.

A summary of the expenses aggregated on the Consolidated Statements of Operations line item "Restructuring charges" in the fiscal years ended March 31, 2015, 2014 and 2013, is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Manufacturing and sales office relocation costs	$	2,672	$	3,555	$	2,349
Personnel reduction costs	10,345		10,567		16,370
Restructuring charges	$	13,017	$	14,122	$	18,719

Fiscal Year Ended March 31, 2015

The Company incurred $13.0 million in restructuring charges in the fiscal year ended March 31, 2015 including $10.3 million of personnel reduction costs. The personnel reduction costs were due to the following: $4.1 million related to planned headcount reductions in Europe (primarily in Landsberg, Germany) as the Company relocates production to lower cost regions; $3.2 million is related to a restructuring plan initiated in Italy whereby the Company will reduce the non-manufacturing labor headcount by 50 employees; $1.9 million related to the relocation of certain Solid Capacitor manufacturing from Matamoros, Mexico to Victoria, Mexico; and $1.1 million related to headcount reductions taken as the Company begins to outsource its information technology function.

The following table summarizes the open severance plans as of March 31, 2015 (amounts in thousands):

	Total Expected Severance		Fiscal Year 2015 Expense		Amount to be Incurred
Europe (primarily Italy and Germany)	$	7,819	$	6,918	$	901
Corporate IT outsourcing	1,956		1,144		812
Matamoros Solid Capacitor	2,450		1,890		560
Total	$	12,225	$	9,952	$	2,273

The $2.7 million relocation costs include $1.4 million for the exit of solid capacitors in Evora, Portugal and the relocation of certain Solid Capacitors manufacturing operations from Evora, Portugal to Victoria, Mexico. In addition, there is $0.4 million for the Landsberg, Germany shut-down including relocating equipment to Pontecchio, Italy; $0.3 million for relocation of certain F&E lines from Monterrey, Mexico and Skopje, Macedonia to Suzhou, China; and $0.5 million for other costs related to shut-downs in Europe and Asia.

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KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 3: Restructuring (Continued)

Fiscal Year Ended March 31, 2014

The Company incurred $14.1 million in restructuring charges in the fiscal year ended March 31, 2014 including $10.6 million related to personnel reduction costs which is primarily comprised of the following: $1.9 million related to the closure of a portion of our innovation center in the U.S.; $1.2 million related to the reduction of the Solid Capacitor production workforce in Mexico; $1.1 million related to the Company’s initiative to reduce overhead; $0.5 million in termination benefits associated with converting the Weymouth, United Kingdom manufacturing facility into a technology center; $4.5 million related to headcount reductions of 126 employees in Evora, Portugal due to the relocation of certain Solid Capacitors manufacturing operations to Mexico; $0.9 million is related to a headcount reduction of 31 employees due to the consolidation of manufacturing facilities in Italy and $0.4 million related to an additional Cassia Integrazione Guadagni Straordinaria (“CIGS”) plan in Italy.

The additional expense related to CIGS is as a result of an agreement with the labor union which allowed the Company to place up to 170 workers, on a rotation basis, on the CIGS plan to save labor costs. CIGS is a temporary plan to save labor costs whereby a company may temporarily “lay off” employees while the government continues to pay their wages for a maximum of 12 months during the program. The employees who are in CIGS are not working, but are still employed by the Company. Only employees that are not classified as management or executive level personnel can participate in the CIGS program and upon termination of the plan, the affected employees return to work.

In addition to these personnel reduction costs, the Company incurred manufacturing relocation costs of $3.6 million due to the consolidation of Film and Electrolytic manufacturing facilities within Italy and relocation of Film and Electrolytic manufacturing equipment to Evora, Portugal and Skopje, Macedonia and Solid Capacitors manufacturing equipment to Mexico.

Fiscal Year Ended March 31, 2013

Restructuring charges in the fiscal year ended March 31, 2013 include personnel reduction costs of $16.4 million and manufacturing relocation costs of $2.3 million. The personnel reduction costs are comprised of the following: $2.8 million in termination benefits associated with converting the Landsberg, Germany manufacturing facility into a technology center; $2.9 million in termination benefits associated with converting the Weymouth, United Kingdom manufacturing facility into a technology center; $1.5 million for reductions in production workforce in Mexico; $1.1 million for reductions in production workforce in Portugal; $0.5 million for headcount reductions at an innovation center; $2.7 million for reductions in administrative overhead primarily in the Corporate headquarters and $4.9 million for reductions in production workforce and administrative overhead across the Company.

In addition to these personnel reduction costs, the Company incurred manufacturing relocation costs of $1.8 million for relocation of equipment to Bulgaria, China, Macedonia and Mexico and for the consolidation of manufacturing operations within Italy and $0.6 million in lease termination costs related to the closure of a sales office.

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KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 3: Restructuring (Continued)

A reconciliation of the beginning and ending liability balances for restructuring charges included in the line items "Accrued expenses" and "Other non-current obligations" on the Consolidated Balance Sheets were as follows (amounts in thousands):

	Personnel Reductions			Manufacturing and Sales Office Relocation Costs
Balance at March 31, 2012	$	11,474		$	—
Costs charged to expense	16,370			2,349
Costs paid or settled	(13,976		)	(1,782		)
Change in foreign exchange	(359		)	—
Balance at March 31, 2013	13,509			567
Costs charged to expense	10,567			3,555
Costs paid or settled	(18,235		)	(4,122		)
Change in foreign exchange	376			—
Balance at March 31, 2014	6,217			—
Costs charged to expense	10,345			2,672
Costs paid or settled	(7,995		)	(2,672		)
Change in foreign exchange	(1,328		)	—
Balance at March 31, 2015	$	7,239		$	—

Note 4: Goodwill and Intangible Assets

The following table highlights the Company's intangible assets (amounts in thousands):

	March 31, 2015				March 31, 2014
	Carrying Amount		Accumulated Amortization		Carrying Amount		Accumulated Amortization
Indefinite Lived Intangible Assets:
Trademarks	$	7,207	$	—	$	7,207	$	—
Amortizing Intangibles:
Purchased technology, customer relationships and patents (3 - 18 years)	40,489		14,414		44,428		14,451
	$	47,696	$	14,414	$	51,635	$	14,451

For fiscal years ended March 31, 2015, 2014 and 2013 amortization related to intangibles was $2.1 million, $2.1 million and $2.3 million, respectively. The weighted-average useful life of amortized intangibles was 16 years in the fiscal years ended March 31, 2015 and 2014. The weighted-average period prior to the next renewal for patents was 2.5 years and 3.5 years in the fiscal years ended March 31, 2015 and 2014, respectively. No other intangible classes have renewal or extension periods. Estimated amortization of intangible assets for the each of the next five fiscal years is $2.1 million and, thereafter, amortization will total $15.6 million.

For fiscal year 2015, the Company completed its impairment test on goodwill and intangible assets with indefinite useful lives as of January 1, 2015 and concluded that goodwill and indefinite-lived assets were not impaired.

In fiscal year 2013, the Company's annual goodwill and other indefinite-lived intangible asset impairment test resulted in a $1.1 million goodwill impairment charge, which represented all of the goodwill related to the KEMET Foil Manufacturing, LLC ("KEMET Foil") reporting unit due to reduced earnings and cash flows caused by macro-economic factors and excess capacity in our industry.

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Notes to Consolidated Financial Statements (Continued)

The changes in the carrying amount of goodwill for the years ended March 31, 2015 and 2014 are as follows (amounts in thousands):

	Fiscal Year 2015					Fiscal Year 2014
	Solid Capacitors		Film and Electrolytic			Solid Capacitors		Film and Electrolytic
Gross balance at beginning of fiscal year
Goodwill	$	35,584	$	1,092		$	35,584	$	1,092
Accumulated impairment losses	—		(1,092		)	—		(1,092		)
Net balance at the end of the year	$	35,584	$	—		$	35,584	$	—
Impairment charges	$	—	$	—		$	—	$	—
Balance at the end of the year
Goodwill	$	35,584	$	1,092		$	35,584	$	1,092
Accumulated impairment losses	—		(1,092		)	—		(1,092		)
Balance at the end of the year, net	$	35,584	$	—		$	35,584	$	—

Note 5: Investment in NEC TOKIN

On March 12, 2012, KEMET Electronics Corporation ("KEC"), a wholly owned subsidiary of the Company, entered into a Stock Purchase Agreement (the "Stock Purchase Agreement") with NEC TOKIN Corporation ("NEC TOKIN"), a manufacturer of tantalum capacitors, electro-magnetic, electro-mechanical and access devices, to acquire 51% of the common stock of NEC TOKIN (which represents a 34% economic interest, as calculated based on the number of common shares held by KEC, directly and indirectly, in proportion to the aggregate number of common and preferred shares of NEC TOKIN as of such date) (the "Initial Purchase") from NEC Corporation ("NEC") of Japan. The transaction closed on February 1, 2013, at which time KEC paid a purchase price of $50.0 million for new shares of common stock of NEC TOKIN (the "Initial Closing"). The Company accounts for its investment in NEC TOKIN using the equity method for a non-consolidated variable interest entity since KEC does not have the power to direct significant activities of NEC TOKIN. The Company believes that the NEC TOKIN preferred stock represents in-substance common stock of NEC TOKIN and, as a result, its method of calculating KEC’s economic basis in NEC TOKIN is the appropriate basis on which to recognize its share of the earnings or loss of NEC TOKIN.

In connection with KEC's execution of the Stock Purchase Agreement, KEC entered into a Stockholders' Agreement (the "Stockholders' Agreement") with NEC TOKIN and NEC, which provides for restrictions on transfers of NEC TOKIN's capital stock, certain tag-along and first refusal rights on transfer, restrictions on NEC's ability to convert the preferred stock of NEC TOKIN held by it, certain management services to be provided to NEC TOKIN by KEC (or an affiliate of KEC) and certain board representation rights. KEC holds four of seven NEC TOKIN director positions. However, NEC has significant board rights.

Concurrent with execution of the Stock Purchase Agreement and the Stockholders' Agreement, KEC entered into an Option Agreement (the “Option Agreement”) with NEC, which was amended on August 29, 2014, whereby KEC had the right to purchase additional shares of NEC TOKIN common stock from NEC TOKIN for a purchase price of $50.0 million resulting in an economic interest of approximately 49% while maintaining ownership of 51% of NEC TOKIN's common stock (the "First Call Option") by providing notice of the First Call Option between the Initial Closing and April 30, 2015. Upon providing such First Call Option notice, but not before April 1, 2015, KEC could also have exercised a second option to purchase all outstanding capital stock of NEC TOKIN from its stockholders, primarily NEC, for a purchase price based on the greater of six times LTM EBITDA (as defined in the Option Agreement) less the previous payments and certain other adjustments, or the outstanding amount of NEC TOKIN's debt obligation to NEC (the "Second Call Option") by providing notice of the Second Call Option by May 31, 2018. The First and Second Call Options expired on April 30, 2015 without being exercised. From April 1, 2015 through May 31, 2018, NEC may require KEC to purchase all outstanding capital stock of NEC TOKIN from its stockholders, primarily NEC (the "Put Option"), provided that KEC's payment of the Put Option price is permitted under the 10.5% Senior Notes and Loan and Security Agreement. However, in the event that KEC issues new debt securities principally to refinance its outstanding 10.5% senior notes due 2018 and its currently outstanding credit agreement, including amounts to pay related fees and expenses and to use for general corporate purposes (“Refinancing Notes”), prior to NEC’s delivery of its

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Notes to Consolidated Financial Statements (Continued)

Note 5: Investment in NEC TOKIN (Continued)

notification of exercise of the Put Option, then the earliest date NEC may exercise the Put Option is automatically extended to the day immediately following the final scheduled maturity date of such Refinancing Notes, or in the event such Refinancing Notes are redeemed in full prior to such final scheduled maturity date, then on the day immediately following the date of such full redemption, but in any event beginning no later than November 1, 2019. If not previously exercised, the Put Option will expire on October 31, 2023.

The purchase price for the Put Option will be based on the greater of six times LTM EBITDA less previous payments and certain other adjustments, or the outstanding amount of NEC TOKIN's debt obligation to NEC as of the date the Put Option is exercised. The purchase price for the Put Option is reduced by the amount of NEC TOKIN's debt obligation to NEC which KEC will assume. The determination of the purchase price will be modified in the event there is a disagreement between NEC and KEC under the Stockholders' Agreement.

The Company has marked these options to fair value and in the fiscal year ended March 31, 2015 and 2014 recognized a $2.1 million and $3.1 million gain, respectively, which was included on the line item “Other expense, net” in the Consolidated Statement of Operations. The line item “Other assets” on the Consolidated Balance Sheets includes $5.7 million and $3.6 million, respectively as of March 31, 2015 and 2014 related to the options.

KEC's total investment in NEC TOKIN including the net call derivative described above on February 1, 2013 was $54.5 million which includes $50.0 million cash consideration plus approximately $4.5 million in transaction expenses (fees for legal, accounting, due diligence, investment banking and other various services necessary to complete the transactions). The Company has made an allocation of the aggregate purchase price, which were based upon estimates that the Company believes are reasonable.

Summarized financial information for NEC TOKIN follows (in thousands):

	March 31, 2015		March 31, 2014
Current assets	$	223,495	$	245,709
Noncurrent assets	273,785		302,161
Current liabilities	143,523		120,929
Noncurrent liabilities	296,873		360,908

	Fiscal Year March 31, 2015			Fiscal Year March 31, 2014			Two Months Ended March 31, 2013
Net sales	$	487,282		$	490,369		$	82,772
Gross profit	103,773			86,227			9,147
Net income (loss)	(24,091		)	(42,937		)	(2,216		)

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KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 5: Investment in NEC TOKIN (Continued)

A reconciliation between NEC TOKIN's net loss and KEMET's equity investment loss follows (in thousands):

	Fiscal Year Ended March 31, 2015			Fiscal Year Ended March 31, 2014			Two Months Ended March 31, 2013
NEC TOKIN net income (loss)	$	(24,091	)	$	(42,937	)	$	(2,216	)
KEMET's equity ownership %	34		%	34		%	34		%
Equity income (loss) from NEC TOKIN before Adjustments	$	(8,191	)	$	(14,599	)	$	(753	)
Adjustments:
Amortization and depreciation	(2,270		)	(1,390		)	(247		)
Gain on sale of long-lived assets adjustment	—			(5,998		)	—
Loss on impairment of long-lived assets adjustment	—			14,643			—
Inventory valuation adjustment	—			254			(254		)
Indemnity asset	8,500			—			—
Inventory profit elimination	(208		)	—			—
Equity income (loss) from NEC TOKIN	$	(2,169	)	$	(7,090	)	$	(1,254	)

A reconciliation between NEC TOKIN's net assets and KEMET's equity investment balance follows (in thousands):

	March 31, 2015			March 31, 2014
Investment in NEC TOKIN	$	45,016		$	46,419
Purchase price accounting basis adjustment:
Property, plant and equipment	3,334			7,325
Technology	(10,889		)	(16,261		)
Long-term debt	(2,707		)	(4,754		)
Goodwill	(7,082		)	(9,326		)
Indemnity asset for legal investigation	(8,500		)	—
Inventory profit elimination	208			—
Other	(39		)	(952		)
KEMET's 34% interest of NEC TOKIN's equity	$	19,341		$	22,451

The above basis differences (except Goodwill) are being amortized over the respective estimated life of the assets. As of March 31, 2015, KEC's maximum loss exposure as a result of its investments in NEC TOKIN is limited to the aggregate of the carrying value of the investment and any accounts receivable balance. For the fiscal year ended March 31, 2015 and 2014, KEMET recorded sales of $13.5 million and $6.0 million, respectively, to NEC TOKIN and NEC TOKIN recorded sales of $3.6 million and $1.8 million to KEMET for fiscal year ended March 31, 2015 and 2014, respectively. As of March 31, 2015 and 2014, KEMET’s accounts receivable balances with NEC TOKIN were $3.3 million and $2.0 million, respectively, and accounts payable balances were $0.8 million and $0.1 million, respectively.  In accordance with the Stockholders’ Agreement, KEC entered into a management services agreement to provide services for which KEC would be reimbursed.  As of March 31, 2015 and 2014, KEMET’s receivable balance under this agreement is $0.6 million and $0.7 million, respectively.

Beginning in March 2014, NEC TOKIN and certain of its subsidiaries have received inquiries, requests for information and other communications from government authorities in China, the United States, the European Commission, Japan, South Korea, Taiwan, Singapore and Brazil concerning alleged anti-competitive activities within the capacitor industry. The investigations are continuing at various stages. In addition, beginning in July 2014, NEC TOKIN and its subsidiary, NEC TOKIN America, Inc., have been named, along with more than 20 other capacitor manufacturers and subsidiaries, as defendants in purported antitrust class action suits by direct and indirect purchasers in the United States and Canada. As of March 31, 2015, NEC TOKIN has recorded an accrual for approximately $30.0 million based on its estimation of losses likely to result from certain of the investigations

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Notes to Consolidated Financial Statements (Continued)

Note 5: Investment in NEC TOKIN (Continued)

and civil litigation. KEMET, under equity method accounting, has established an indemnity asset for the $25.0 million indemnity under the Stock Purchase Agreement to be paid by NEC to NEC TOKIN (KEMET's portion is $8.5 million). NEC TOKIN could not estimate the total losses likely to result from all of the investigations and civil litigation because NEC TOKIN does not have sufficient information to be able to estimate the amount of all such losses.

Note 6: Segment and Geographic Information

The Company is organized into two business groups: Solid Capacitors and Film and Electrolytic based primarily on product lines. Each business group is responsible for their respective manufacturing operations and research and development efforts. All research and development expenses are direct costs to the respective business group.

Solid Capacitors

Operating in nine manufacturing sites in the United States, Mexico and China, Solid Capacitors primarily produces tantalum, aluminum, polymer and ceramic capacitors which are sold globally. Solid Capacitors also produces tantalum powder used in the production of tantalum capacitors and has a product innovation center in the United States.

Film and Electrolytic

Film and Electrolytic operates thirteen manufacturing sites throughout Europe, Asia, Mexico and the United States and produces film, paper, and electrolytic capacitors which are sold globally. In addition, the business group has product innovation centers in the United Kingdom, Italy, Germany and Sweden.

The following tables summarize information about each segment's net sales, operating income (loss), depreciation and amortization, capital expenditures and total assets (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Net sales:
Solid Capacitors	$	621,275		$	626,494		$	622,305
Film and Electrolytic	201,917			207,172			201,598
	$	823,192		$	833,666		$	823,903
Operating income (loss) (1)(2)(3):
Solid Capacitors	$	135,946		$	91,848		$	94,986
Film and Electrolytic	(16,685		)	(17,587		)	(31,109		)
Corporate	(96,883		)	(92,472		)	(98,957		)
	$	22,378		$	(18,211	)	$	(35,080	)
Depreciation and amortization:
Solid Capacitors	$	21,202		$	28,081		$	27,407
Film and Electrolytic	13,886			14,557			13,360
Corporate	5,680			6,889			4,391
	$	40,768		$	49,527		$	45,158
Capital expenditures:
Solid Capacitors	$	12,552		$	10,498		$	16,838
Film and Electrolytic	7,752			14,494			23,970
Corporate	1,928			7,155			5,366
	$	22,232		$	32,147		$	46,174

_______________________________________________________________________________

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Notes to Consolidated Financial Statements (Continued)

Note 6: Segment and Geographic Information (Continued)

(1) Restructuring charges included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Total restructuring:
Solid Capacitors	$	3,297	$	8,108	$	7,335
Film and Electrolytic	8,221		5,657		9,621
Corporate	1,499		357		1,763
	$	13,017	$	14,122	$	18,719

(2) Impairment charges and write downs included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Impairment and write down of long-lived assets:
Solid Capacitors	$	—	$	3,920	$	3,348
Film and Electrolytic	—		556		5,326
	$	—	$	4,476	$	8,674

(3)    (Gain) loss on sales and disposals of assets included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
(Gain) loss on sales and disposals of assets:
Solid Capacitors	$	606		$	(705	)	$	(161	)
Film and Electrolytic	(1,008		)	767			179
Corporate	181			(30		)	—
	$	(221	)	$	32		$	18

_______________________________________________________________________________

	March 31,
	2015		2014
Total assets:
Solid Capacitors	$	469,823	$	479,377
Film and Electrolytic	218,858		287,861
Corporate	64,111		76,429
	$	752,792	$	843,667

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Notes to Consolidated Financial Statements (Continued)

Note 6: Segment and Geographic Information (Continued)

The following highlights net sales by geographic location (amounts in thousands):

	Fiscal Years Ended March 31,(1)
	2015		2014		2013
United States	$	238,840	$	245,032	$	228,975
Hong Kong	131,109		135,570		148,014
Germany	107,859		105,261		105,818
Europe (2)	58,879		70,895		82,021
China	65,289		67,460		70,696
Asia Pacific (2)	62,864		51,467		50,735
United Kingdom	32,127		36,085		34,188
Netherlands	38,853		33,581		24,568
Singapore	22,516		27,777		25,060
Italy	19,013		20,249		21,203
Hungary	22,745		18,332		13,554
Mexico	21,164		17,886		15,923
Other Countries (2)	1,934		4,071		3,148
	$	823,192	$	833,666	$	823,903

_______________________________________________________________________________

(1) Revenues are attributed to countries or regions based on the location of the customer. Net Sales to one customer exceeded 10% of total net sales as follows: $124.4 million, $128.4 million and $127.7 million in fiscal years 2015, 2014 and 2013, respectively. Solid Capacitor sales to one customer over 10% were $109.1 million, $115.5 million and $119.0 million in fiscal years 2015, 2014 and 2013, respectively. Film and Electrolytic sales to one customer over 10% were $15.3 million, $12.9 million and $8.7 million in fiscal years 2015, 2014 and 2013, respectively.

(2) Excluding the specific countries listed in this table, no country included in this caption exceeded 2% of consolidated net sales for fiscal years 2015, 2014 and 2013.

_______________________________________________________________________________

The following geographic information includes Property, plant and equipment, net, based on physical location (amounts in thousands):

	March 31,
	2015		2014
United States	$	59,754	$	64,754
Mexico	66,120		67,154
Italy	44,595		61,726
China	29,871		31,405
Portugal	17,352		23,817
Macedonia	13,726		21,044
Indonesia	5,335		6,026
Finland	1,439		2,280
United Kingdom	251		492
Other	11,198		13,950
	$	249,641	$	292,648

Note 7. Discontinued Operations

The Film and Electrolytic business group ("Film and Electrolytic”) completed the sale of its machinery division in April 2014, which resulted in a gain of $5.6 million on the sale of the business (after income tax expense) offset by a loss from

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KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

machinery operations of $0.3 million during the fiscal year ended March 31, 2015 resulting in net income from discontinued operations of $5.4 million.

Net sales and net operating loss from the Company’s discontinued operation for years ended March 31, 2015, 2014 and 2013 were as follows (in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Net sales	$	104		$	11,489		$	19,051
Operating income (loss)	(265		)	(3,730		)	(4,203		)

Note 8: Acquisitions

Niotan Incorporated

On February 21, 2012, KEMET acquired all of the outstanding shares of Niotan Incorporated, whose name was subsequently changed to KEMET Blue Powder Corporation ("Blue Powder"), a manufacturer of tantalum powders, from an affiliate of Denham Capital Management LP. Blue Powder has its headquarters and principal operating location in Carson City, Nevada. KEMET paid an initial purchase price of $30.5 million (net of cash received) at the closing of the transaction. Additional deferred payments of $45 million were payable over a thirty-month period after the closing and a working capital adjustment of $0.4 million which was paid in April 2012. In fiscal years 2015, 2014 and 2013 KEMET made installment payments totaling $10.0 million, $20.0 million, and $15.0 million respectively. In addition, KEMET paid royalty payments for tantalum powder produced by Blue Powder, in an aggregate amount equal to $10.0 million. The Company determined that the royalty payments should be treated as part of the consideration for Blue Powder instead of a separate transaction because (i) it is paid to the selling shareholder who is not continuing with Blue Powder, (ii) it was based solely on the negotiation process and (iii) KEMET now owns the technology. The Company recorded goodwill of $35.6 million and amortizable intangibles of $22.4 million. The allocation of the purchase price to specific assets and liabilities was based on the relative fair value of all assets and liabilities. Factors contributing to the purchase price which resulted in the goodwill (which is not tax deductible) include market recognition of the world class quality of Blue Powder's tantalum powder, the Company's cost savings due to vertical integration and Blue Powder's ability to provide a constant and reliable supply of tantalum powder. Pro forma results are not presented because the acquisition was not material to the consolidated financial statements. Blue Powder is included within Solid Capacitors.

The total discounted purchase price for Blue Powder was $82.0 million which includes (amounts in thousands):

Cash at closing	$	30,656
Deferred payments (discounted)	41,938
Royalty payments (discounted)	8,975
Working capital adjustment	403
	$	81,972

The purchase price was determined through arms-length negotiations between representatives of the Company and Denham Capital Management LP.

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KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 8: Acquisitions (Continued)

The following table presents the final allocations of the aggregate purchase price based on the assets and liabilities estimated fair values (amounts in thousands):

	Fair Value
Cash	$	153
Accounts receivable	479
Inventories	7,305
Prepaid expenses	186
Property, plant and equipment	15,122
Goodwill	35,584
Intangible assets	22,420
Deferred income taxes	311
Other noncurrent assets	1,303
Current liabilities	(873		)
Long-term liabilities	(18		)
Total net assets acquired	$	81,972

The following table presents the amounts assigned to intangible assets (amounts in thousands except useful life data):

	Fair Value		Useful Life (years)
Developed technology	$	22,300	18
Software	120		4
	$	22,420

The useful life for developed technology of 18 years is based on the history of the underlying chemical processes and an estimate of the future economic benefit. The Company also considered that the technology was developed approximately 4 years prior to acquisition and considered functional obsolescence. The useful life for software is based upon its implementation in 2011 and took into consideration functional obsolescence.

Note 9: Impairment Charges

During fiscal years 2015, 2014 and 2013, the Company incurred impairment charges of zero, $4.5 million, and $7.6 million, respectively. The impairment charges are recorded on the Consolidated Statements of Operations line item “Write down of long-lived assets” in fiscal years 2015, 2014 and 2013.

As a part of the ongoing restructuring activities, the Company has relocated certain Solid Capacitor manufacturing operations from the Evora, Portugal facility to a manufacturing facility in Mexico and the remaining Solid Capacitor equipment in Portugal was disposed. During fiscal year 2013, using an income approach to estimate the fair value of assets to be disposed, the Company incurred impairment charges totaling $3.1 million ($0.07 per basic and diluted share) related to the Solid Capacitors restructuring activities. In fiscal year 2014, Solid Capacitors incurred $3.9 million ($0.09 per basic and diluted share) in additional impairment charges due to a decrease in forecasted revenues because production was relocated to Mexico sooner than originally planned. In addition, during fiscal year 2014, Film and Electrolytic incurred impairment charges totaling $0.6 million ($0.01 per basic and diluted share) related to manufacturing equipment in Italy.

Also in fiscal year 2013, in connection with the consolidation of two manufacturing facilities within Italy, the Company incurred impairment charges totaling $4.2 million ($0.09 per basic and diluted share) related to the Film and Electrolytic Business Group ("Film and Electrolytic"). The Company obtained appraisals for each of these facilities indicating there was a decrease in the market price of the manufacturing facilities, and therefore, the carrying amounts for these manufacturing facilities were reviewed for recoverability. It was determined that the carrying amounts of the manufacturing facilities were not recoverable since they exceeded the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). The impairment was measured as the amount by which the carrying amount of a

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Notes to Consolidated Financial Statements (Continued)

Note 9: Impairment Charges (Continued)

long-lived asset (asset group) exceeded its fair value. The Company utilized the market approach to estimate fair value of the long-lived asset group.

In addition, in fiscal year 2013 the Company incurred a $0.3 million ($0.01 per basic and diluted share) charge related to the write-off of a trademark which is no longer utilized.

Note 10: Pension and Other Post-retirement Benefit Plans

The Company sponsors defined benefit pension plans which include six in Europe, one in Singapore and two in Mexico. The Company funds the pension liabilities in accordance with laws and regulations applicable to those plans.

In July 2012, Film and Electrolytic paid out retirement benefits which represented more than 20% of a plan's pension obligation. As a result, the Company recognized a settlement gain of $1.7 million. In the second half of fiscal year 2013, the Company recognized a curtailment loss of $2.0 million as a result of headcount reductions within a sales office, and this curtailment was allocated equally to each business group.

The Company has two post-retirement benefit plans: health care and life insurance benefits for certain retired United States employees who reached retirement age while working for the Company. The health care plan is contributory, with participants' contributions adjusted annually. The life insurance plan is non-contributory.

A summary of the changes in benefit obligations and plan assets is as follows (amounts in thousands):

	Pension						Other Benefits
	2015			2014			2015			2014
Change in Benefit Obligation
Benefit obligation at beginning of the year	$	42,715		$	39,096		$	785		$	799
Service cost	1,286			1,308			—			—
Interest cost	1,819			1,734			29			23
Plan participants' contributions	—			—			474			555
Plan amendments	1,006			285			—			—
Actuarial (gain) loss	13,673			(377		)	118			94
Foreign currency exchange rate change	(9,988		)	2,009			—			—
Gross benefits paid	(1,111		)	(1,302		)	(560		)	(686		)
Curtailments and settlements	(58		)	(38		)	—			—
Benefit obligation at end of year	$	49,342		$	42,715		$	846		$	785
Change in Plan Assets
Fair value of plan assets at beginning of year	$	9,946		$	8,806		$	—		$	—
Actual return on plan assets	1,737			260			—			—
Foreign currency exchange rate changes	(1,353		)	874			—			—
Employer contributions	1,303			1,346			86			131
Settlements	(39		)	(38		)	—			—
Plan participants' contributions	—			—			474			555
Gross benefits paid	(1,111		)	(1,302		)	(560		)	(686		)
Fair value of plan assets at end of year	$	10,483		$	9,946		$	—		$	—
Funded status at end of year
Fair value of plan assets	$	10,483		$	9,946		$	—		$	—
Benefit obligations	(49,342		)	(42,715		)	(846		)	(785		)
Amount recognized at end of year	$	(38,859	)	$	(32,769	)	$	(846	)	$	(785	)

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Notes to Consolidated Financial Statements (Continued)

Note 10: Pension and Other Post-retirement Benefit Plans (Continued)

The Company expects to contribute $1.5 million to the pension plans in fiscal year 2016, which includes direct contributions to be made for funded plans and benefit payments to be made for unfunded plans.

The Company does not prefund its post-retirement health care and life insurance benefit plans. As a result, the Company is responsible annually for the payment of benefits as incurred by the plans. The Company anticipates making payments of $98 thousand during fiscal year 2016.

Amounts recognized in the Consolidated Balance Sheets consist of the following (amounts in thousands):

	Pension						Other Benefits
	2015			2014			2015			2014
Current liability	$	(626	)	$	(615	)	$	(97	)	$	(88	)
Noncurrent liability	(38,233		)	(32,154		)	(749		)	(697		)
Amount recognized, end of year	$	(38,859	)	$	(32,769	)	$	(846	)	$	(785	)

Amounts recognized in Accumulated other comprehensive income (loss) consist of the following (amounts in thousands):

	Pension				Other Benefits
	2015		2014		2015			2014
Net actuarial loss (gain)	$	21,408	$	9,269	$	(1,159	)	$	(1,464	)
Prior service cost	1,300		310		—			—
Accumulated other comprehensive (income) loss	$	22,708	$	9,579	$	(1,159	)	$	(1,464	)

Although not reflected in the table above, the tax effect on the balances was $2.3 million and $2.2 million as of March 31, 2015 and 2014, respectively.

Components of benefit costs (credit) consist of the following (amounts in thousands):

	Pension									Other Benefits
	2015			2014			2013			2015			2014			2013
Net service cost	$	1,286		$	1,308		$	1,583		$	—		$	—		$	—
Interest cost	1,819			1,734			1,903			29			23			27
Expected return on plan assets	(480		)	(454		)	(656		)	—			—			—
Amortization:
Actuarial (gain) loss	277			318			544			(187		)	(259		)	(322		)
Prior service cost	17			4			20			—			—			—
Recurring activity	2,919			2,910			3,394			(158		)	(236		)	(295		)
One time expense (income)	(19		)	(32		)	266			—			—			—
Net periodic benefit cost (credit)	$	2,900		$	2,878		$	3,660		$	(158	)	$	(236	)	$	(295	)

The estimated amounts related to pensions that will be amortized from accumulated other comprehensive income into net periodic benefit costs in fiscal year 2016 are actuarial losses of $631 thousand, and prior service costs of $58 thousand.

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Notes to Consolidated Financial Statements (Continued)

Note 10: Pension and Other Post-retirement Benefit Plans (Continued)

The asset allocation for the Company's defined benefit pension plans at March 31, 2015 and the target allocation for 2015, by asset category, are as follows:

Asset Category	Target Allocation (%)	Plan Assets at March 31, 2015 (%)
Insurance (1)	10	6
International equities	30	35
International bonds	50	58
Other	10	1
Total	100	100

_______________________________________________________________________________

(1) Comprised of assets held by the defined benefit pension plan in Germany.

The Company's investment strategy for its defined benefit pension plans is to maximize long-term rate of return on plan assets within an acceptable level of risk in order to minimize the cost of providing pension benefits. The investment policy establishes a target allocation range for each asset class and the fund is managed within those ranges. The plans use a number of investment approaches including insurance products, equity and fixed income funds in which the underlying securities are marketable in order to achieve this target allocation. Certain plans invest solely in insurance products. The Company continuously monitors the performance of the overall pension asset portfolio, asset allocation policies, and the performance of individual pension asset managers and makes adjustments and changes, as required. The Company does not manage any assets internally, does not have any passive investments in index funds, and does not directly utilize futures, options, or other derivative instruments or hedging strategies with regard to the pension plans; however, the investment mandate of some pension asset managers allows the use of the foregoing as components of their portfolio management strategies.

The expected rate of return was determined by modeling the expected long-term rates of return for broad categories of investments held by the plan against a number of various potential economic scenarios.

Other changes in plan assets and benefit obligations recognized in Accumulated other comprehensive income (loss) are as follows (amounts in thousands):

	Pension									Other Benefits
	2015			2014			2013			2015		2014		2013
Current year actuarial (gain) loss	$	12,397		$	(190	)	$	3,669		$	118	$	95	$	(145	)
Foreign currency exchange rate changes	—			—			(238		)	—		—		—
Amortization of actuarial gain (loss)	(258		)	(286		)	(4,582		)	187		259		322
Current year prior service cost	1,006			285			—			—		—		—
Amortization of prior service cost	(17		)	(4		)	(101		)	—		—		—
Total recognized in other comprehensive income	$	13,128		$	(195	)	$	(1,252	)	$	305	$	354	$	177
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	16,028		$	2,683		$	2,408		$	147	$	118	$	(118	)

Each of these changes has been factored into the following benefit payments schedule for the next ten fiscal years. The Company expects to have benefit payments in the future as follows (amounts in thousands):

	Expected benefit payments
	2016		2017		2018		2019		2020		2021- 2025
Pension benefits	$	1,367	$	1,363	$	1,381	$	1,510	$	1,603	$	9,654
Other benefits	98		95		91		86		80		309
Total	$	1,465	$	1,458	$	1,472	$	1,596	$	1,683	$	9,963

92

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 10: Pension and Other Post-retirement Benefit Plans (Continued)

The following weighted-average assumptions were used to determine the projected benefit obligation at the measurement date and the net periodic cost for the pension and post-retirement plan (amounts in thousands except percentages):

	Pension				Other Benefits
	2015		2014		2015			2014
Projected benefit obligation:
Discount rate	2.8	%	4.5	%	2.9		%	3.4		%
Rate of compensation increase	3.5	%	3.4	%	—		%	—		%
Health care cost trend on covered charges	—		—		7.0% decreasing to ultimate trend of 5% in 2019			7.0% decreasing to ultimate trend of 5% in 2018
Net periodic benefit cost:
Discount rate	4.6	%	4.5	%	3.4		%	2.8		%
Rate of compensation increase	3.4	%	3.5	%	—		%	—		%
Expected return on plan assets	4.9	%	4.9	%	—		%	—		%
Health care cost trend on covered charges	—		—		7.0% decreasing to ultimate trend of 5% in 2018			7.0% decreasing to ultimate trend of 5% in 2017
Sensitivity of retiree welfare results
Effect of a one percentage point increase in assumed health care cost trend:
—On total service and interest costs components					$	—		$	—
—On post-retirement benefits obligation					18			15
Effect of a one percentage point decrease in assumed health care cost trend:
—On total service and interest costs components					—			—
—On post-retirement benefits obligation					(17		)	(13		)

The measurement date used to determine pension and post-retirement benefits is March 31.

The Company evaluated input from its third-party actuary to determine the appropriate discount rate. The determination of the discount rate is based on various factors such as the rate on bonds, term of the expected payouts, and long-term inflation factors.

93

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 10: Pension and Other Post-retirement Benefit Plans (Continued)

The following table sets forth by level, within the fair value hierarchy as described in Note 1, the pension plan's assets, required to be carried at fair value on a recurring basis as of March 31, 2015 and March 31, 2014 (amounts in thousands):

	Fair Value March 31, 2015		Fair Value Measurement Using						Fair Value March 31, 2014		Fair Value Measurement Using
			Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
Cash and cash equivalents	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Equity securities:
International equities	3,626		—		3,626		—		3,512		—		3,512		—
Fixed income securities:
International bonds	6,132		—		6,132		—		5,636		—		5,636		—
Insurance contracts	576		—		—		576		706		—		—		706
Other	149		—		149		—		92		—		92		—
	$	10,483	$	—	$	9,907	$	576	$	9,946	$	—	$	9,240	$	706

The table below sets forth a summary of changes in the fair value of the defined benefit pension plan's Level 3 assets for the fiscal year ended March 31, 2015 (amounts in thousands):

Balance at March 31, 2014	$	706
Actual return on plan assets	39
Employer contributions	366
Settlements	—
Benefits paid	(375		)
Foreign currency exchange rate change	(160		)
Balance at March 31, 2015	$	576

The Company also sponsors a deferred compensation plan for highly compensated employees. The plan is non-qualified and allows certain employees to contribute to the plan. Gains net of the Company matches related to the deferred compensation plan were $115 thousand in fiscal year 2015, $189 thousand in fiscal year 2014, and $141 thousand in fiscal year 2013. Total benefits accrued under this plan were $1.5 million and $1.6 million at March 31, 2015 and March 31, 2014, respectively.

In addition, the Company has a defined contribution retirement plan (the "Savings Plan") in which all United States employees who meet certain eligibility requirements may participate. A participant may direct the Company to contribute amounts, based on a percentage of the participant's compensation, to the Savings Plan through the execution of salary reduction agreements. In addition, the participants may elect to make after-tax contributions. The Company matches contributions to the Savings Plan up to 6% of the employee's salary. The Company made matching contributions of $2.2 million, $2.2 million and $2.5 million in fiscal years 2015, 2014, and 2013, respectively.

94

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 11: Stock-Based Compensation

The Company's stock-based compensation plans are broad-based, long-term retention programs intended to attract and retain talented employees and align stockholder and employee interests.

The major components of stock-based compensation expense are as follows (amounts in thousands):

	Fiscal Year Ended March 31, 2015						Fiscal Year Ended March 31, 2014						Fiscal Year Ended March 31, 2013
	Stock Options		Restricted Stock		LTIPs		Stock Options		Restricted Stock		LTIPs		Stock Options		Restricted Stock		LTIPs
Cost of sales	$	233	$	269	$	1,075	$	421	$	62	$	523	$	710	$	445	$	356
Selling, general and administrative expenses	306		787		1,547		413		580		712		872		1,303		725
Research and development	13		3		279		5		—		193		58		—		130
	$	552	$	1,059	$	2,901	$	839	$	642	$	1,428	$	1,640	$	1,748	$	1,211

Employee Stock Options

At March 31, 2015, the Company had four stock option plans that reserved shares of common stock for issuance to executives and key employees: the 1992 Key Employee Stock Option Plan, the 1995 Executive Stock Option Plan, the 2004 Long-Term Equity Incentive Plan (collectively, the "Prior Plans") and the 2011 Omnibus Equity Incentive Plan (as amended by the 2014 Amendment and Restatement of the KEMET Corporation 2011 Omnibus Equity Incentive Plan) (the "2011 Incentive Plan"). All of these plans were approved by the Company's stockholders. The 2011 Incentive Plan authorized the grant of up to 7.4 million shares of the Company's common stock, which is comprised of 6.6 million shares under the new plan and 0.8 million shares which remained under the Prior Plans. The 2011 Incentive Plan authorizes the Company to provide equity-based compensation in the form of (1) stock options, including incentive stock options, entitling the optionee to favorable tax treatment under Section 422 of the Code; (2) stock appreciation rights; (3) restricted stock and restricted stock units; (4) other share-based awards; and (5) performance awards. Options issued under these plans vest within one to three years and expire ten years from the grant date. For the stock options granted to the Company's Chief Executive Officer on January 27, 2010, 50% vested on June 30, 2014 and 50% will vest on June 30, 2015. If available, the Company issues shares of Common Stock from treasury stock upon exercise of stock options and vesting of restricted stock units. The Company has no plans to purchase additional shares in conjunction with its employee stock option program in the near future.

Employee stock option activity for fiscal year 2015 is as follows (amounts in thousands, except exercise price, fair value and contractual life):

	Options		Weighted- Average Exercise Price
Outstanding at March 31, 2014	1,651		$	9.15
Granted	—		—
Exercised	(6	)	4.33
Forfeited	(53	)	6.20
Expired	(141	)	17.15
Outstanding at March 31, 2015	1,451		8.49
Exercisable at March 31, 2015	1,146		$	9.33
Remaining weighted average contractual life of options exercisable (years)			5.2
Remaining weighted average contractual life of options outstanding (years)			5.8

At March 31, 2015 and 2014, the weighted average grant-date fair value of non-vested shares was $2.73 and $3.13, respectively. The weighted average grant-date fair value of shares vested and forfeited during fiscal year 2015 was $3.50 and $3.25, respectively. The total estimated fair value of shares vested during fiscal years 2015, 2014 and 2013 was $1.0 million, $1.1

95

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 11: Stock-Based Compensation (Continued)

million and $1.7 million, respectively. The intrinsic value of stock options exercised in fiscal years 2015, 2014, and 2013 was zero, $0.2 million and $0.2 million, respectively.

As of March 31, 2015, the intrinsic value related to options outstanding was $0.3 million. The intrinsic value of options currently exercisable was $0.3 million. Total unrecognized compensation cost, net of estimated forfeitures, related to non-vested options was $0.3 million as of March 31, 2015. This cost is expected to be recognized over a weighted-average period of 0.9 years. At March 31, 2015 and 2014, the weighted average exercise price of stock options expected to vest was $5.35 and $5.84, respectively. The Company measures the fair value of each employee stock option grant at the date of grant using a Black-Scholes option pricing model. This model requires the input of assumptions regarding a number of complex and subjective variables that will usually have a significant impact on the fair value estimate.

The following table summarizes the weighted average assumptions used in the Black-Scholes valuation model to value stock option grants:

	Fiscal Years Ended March 31,
	2015	2014		2013
Assumptions:
Expected volatility	N/A	59.8	%	70.9	%
Risk-free interest rate	N/A	1.0	%	0.5	%
Expected option lives in years	N/A	4.0		4.0
Dividend yield	N/A	—		—

The expected volatility is based on a historical volatility calculation of the Company's stock price. The risk-free rate is based on the U.S. Treasury yield with a maturity commensurate with the expected term. The expected term is based on the Company's historical option term which considers the weighted-average vesting, contractual term and vesting schedule. In addition, stock-based compensation expense is calculated based on the number of awards that are ultimately expected to vest, and therefore has been reduced for estimated forfeitures. The Company's estimate of expected forfeitures is based on the Company's actual historical annual forfeiture rate of 2.0%. The estimated forfeiture rate, which is evaluated each balance sheet date throughout the life of the award, provides a time-based adjustment of forfeited shares. The estimated forfeiture rate is reassessed at each balance sheet date and may change based on new facts and circumstances. The dividend yield is based on a set dividend rate of 0.0% as the Company has not paid and does not anticipate paying dividends.

All option plans provide that options to purchase shares be supported by the Company's authorized but unissued common stock or treasury stock. All restricted stock and performance awards are also supported by the Company's authorized but unissued common stock or treasury stock. The prices of the options granted pursuant to these plans are not less than 100% of the value of the shares on the date of the grant.

Performance Vesting Stock Options

During fiscal year 2006, the Company issued 166,667 performance awards with a weighted-average exercise price of $24.15 to the Chief Executive Officer which will entitle him to receive shares of common stock if and when the stock price maintains certain thresholds. These awards are open ended until they vest and will have a ten-year life after vesting or will expire on the third year following retirement, whichever comes first. Effective March 4, 2010, 83,333 of these awards were voluntarily relinquished and no concurrent grant, replacement award or other valuable consideration was provided.

96

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 11: Stock-Based Compensation (Continued)

Restricted Stock Units

Restricted stock unit activity for fiscal year 2015 is as follows (amounts in thousands except fair value):

	Shares		Weighted- average Fair Value on Grant Date
Non-vested restricted stock at March 31, 2014	308		$	6.62
Granted	859		4.12
Vested	(150	)	5.63
Forfeited	(17	)	9.19
Non-vested restricted stock at March 31, 2015	1,000		4.57

The Company grants restricted stock units to members of the Board of Directors, the Chief Executive Officer and a limited group of executives. In fiscal year 2015, restricted stock units granted to the Board of Directors vest in one year, restricted stock units granted to certain officers vest over 4 years and restricted stock units granted under the key manager stock program vest approximately 33% per year over three years. Once vested, restricted stock units are converted into restricted shares of common stock, except for restricted stock units granted to members of the Board of Directors, who can elect to defer settlement of the restricted stock units to a later date.  Restricted shares cannot be sold until 90 days after the Chief Executive Officer, the executive or the member of the Board of Directors, as applicable, resigns from his or her position, or until the individual achieves the targeted ownership under the Company's stock ownership guidelines, and only to the extent that such ownership exceeds the target. As of March 31, 2015 and 2014, unrecognized compensation costs related to the unvested restricted stock share based compensation arrangements granted were $3.1 million and $0.8 million, respectively. The expense is being recognized over the respective vesting periods.

Long-term Incentive Plans ("LTIP")

Historically the Board of Directors of the Company has approved annual Long Term Incentive Plans which cover two year periods. A portion of the LTIPs awarded restricted stock units which vest over the course of three years from the anniversary of the establishment of the plan and a portion of the award is based upon the achievement of an Adjusted EBITDA target for the two-year period. At the time of the award, the individual plans entitle the participants to receive cash or restricted stock units, or a combination of both. The Company assesses the likelihood of meeting the Adjusted EBITDA financial metric on a quarterly basis and adjusts compensation expense to match expectations. Any related liability (for the cash portion of the LTIP) is reflected in the line item "Accrued expenses" on the Consolidated Balance Sheets and any restricted stock commitment is reflected in the line item "Additional paid-in capital" on the Consolidated Balance Sheets. The performance portion of the 2014/2015 LTIP was achieved which will result in 85 thousand shares to be issued in both fiscal years 2016 and 2017 (subject to participants' continued employment with KEMET). Under the performance component of the 2015/2016 LTIP the Company could issue 282 thousand shares if the two-year Adjusted EBITDA measure is achieved as of March 31, 2016 (potentially more shares could be issued if financial results exceed the two-year Adjusted EBITDA target).

The following is the time based vesting schedule of restricted stock units under each respective LTIP, subject to participants' continued employment with KEMET (shares in thousands):

	2015/2016 (1)	2014/2015	2013/2014
Time-based award vested fiscal year 2015	—	154	97
Performance-based award vesting fiscal year 2016 (2)	124	139	90
Performance-based award vesting fiscal year 2017 (2)	124	143	—
Performance-based award vesting fiscal year 2018 (2)	128	—	—

(1)     Potential performance-based award assuming the target is achieved.

(2)    Subject to participants' continued employment with KEMET.

97

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 11: Stock-Based Compensation (Continued)

In the Operating activities section of the Consolidated Statements of Cash Flows, stock-based compensation expense was treated as an adjustment to net income (loss) for fiscal years 2015, 2014 and 2013.

Note 12: Income Taxes

The components of Income (loss) from continuing operations before income taxes and equity loss from NEC TOKIN are as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Domestic (U.S.)	$	(26,238	)	$	(89,529	)	$	(88,939	)
Foreign (Outside U.S.)	14,112			33,232			14,962
Total	$	(12,126	)	$	(56,297	)	$	(73,977	)

The provision (benefit) for Income tax expense is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Current:
Federal	$	—		$	—		$	—
State and local	(92		)	35			37
Foreign	7,403			7,816			3,561
Total current income tax expense from continuing operations	7,311			7,851			3,598
Deferred:
Federal	270			(1,694		)	(65		)
State and local	39			406			700
Foreign	(2,393		)	(5,081		)	(952		)
Deferred tax benefit from continuing operations	(2,084		)	(6,369		)	(317		)
Provision for income taxes	$	5,227		$	1,482		$	3,281

The Company realized a deferred tax expense (benefit) for fiscal years ended 2015, 2014, and 2013 of $(2.1) million, $(2.7) million and $1.4 million, respectively, in certain foreign jurisdictions based on changes in judgment about the realizability of deferred tax assets in future years.

98

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 12: Income Taxes (Continued)

Differences between the provision for income taxes on earnings from continuing operations and the amount computed using the U.S. Federal statutory income tax rate are as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Amount computed using the statutory rate of 35%	(4,245	)	(19,704	)	(25,892	)
Change in U.S. valuation allowance	(19,691	)	21,788		24,571
Unremitted earnings of foreign subsidiaries	18,502		—		—
Effect of prior year adjustments (1)	5,766		(786	)	2,565
Taxable foreign source income	4,660		3,392		3,594
Other non-deductible expenses	217		149		346
State income taxes, net of federal taxes	(53	)	441		737
Change in foreign operations tax exposure reserves	1,119		773		(737	)
Change in foreign operations valuation allowance (2)	1,378		(2,733	)	(4,184	)
Other effect of foreign operations	(2,426	)	(1,838	)	2,281
Provision for income taxes	5,227		1,482		3,281

(1) The effect of prior year adjustments is offset by a full valuation allowance resulting in no impact on the provision for income taxes.

(2) The change in foreign operations valuation allowance excludes currency translation adjustments of $(3.4) million, $1.0 million, and $(0.4) million for fiscal years ended 2015, 2014, and 2013, respectively which has no impact on the provision for income taxes.

The foreign jurisdictions having the greatest effect on the provision for income taxes are China and Mexico. The statutory tax rates for China and Mexico are 25% and 30%, respectively. The provision for income taxes for China and Mexico for fiscal years ended 2015, 2014, and 2013 is $6.4 million, $2.2 million, and $2.2 million, respectively.

99

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 12: Income Taxes (Continued)

The components of deferred tax assets and liabilities are as follows (amounts in thousands):

	March 31,
	2015			2014
Deferred tax assets:
Net operating loss carry forwards	$	162,691		$	173,377
Sales allowances and inventory reserves	21,696			19,447
Medical and employee benefits	15,982			10,035
Tax credits	10,025			10,838
Stock-based compensation	3,578			4,439
Other	3,411			4,338
Total deferred tax assets before valuation allowance	217,383			222,474
Less valuation allowance	(167,594		)	(189,276		)
Total deferred tax assets	49,789			33,198
Deferred tax liabilities:
Unremitted earnings of subsidiaries	(18,502		)	—
Depreciation and differences in basis	(12,166		)	(13,299		)
Amortization of intangibles and debt discounts	(7,261		)	(7,420		)
NEC TOKIN put/call option	(1,860		)	(1,104		)
Non-amortized intangibles	(2,556		)	(2,549		)
Other	(54		)	(578		)
Total deferred tax liabilities	(42,399		)	(24,950		)
Net deferred tax assets	$	7,390		$	8,248

The following table presents the annual activities included in the deferred tax valuation allowance:

	Valuation Allowance for Deferred Tax Assets
Balance at March 31, 2012	$	149,306
Charge to costs and expenses	23,977
Deductions	(4,013		)
Balance at March 31, 2013	169,270
Charge to costs and expenses	21,515
Deductions	(1,509		)
Balance at March 31, 2014	189,276
Charge to costs and expenses	(19,900		)
Deductions	(1,782		)
Balance at March 31, 2015	$	167,594

In fiscal year 2015, the valuation allowance decreased $21.7 million primarily from the recognition of a deferred tax liability for unremitted earnings of the Company's foreign subsidiaries and other adjustments relating to prior years, and from currency translation adjustments. In fiscal year 2014, the valuation allowance increased $20.0 million primarily as a result of the increase in federal net operating loss carryforwards offset by a decrease in net operating loss carryforwards in certain foreign jurisdictions. In fiscal year 2013, the valuation allowance increased $20.0 million primarily as a result of the increase in federal net operating loss carryforwards offset by a decrease in net operating loss carryforwards in certain foreign jurisdictions. Deductions in fiscal years 2015, 2014 and 2013 resulted from expiring net operating loss carryforwards and expiring tax credits in certain U.S. state and foreign jurisdictions.

100

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 12: Income Taxes (Continued)

The change in net deferred income tax asset (liability) for the current year is presented below (amounts in thousands):

Balance at March 31, 2014	$	8,248
Deferred income taxes related to continuing operations (1)	2,084
Deferred income taxes related to other comprehensive income	(1,287		)
Foreign currency translation	(1,655		)
Balance at March 31, 2015	$	7,390

(1) Fiscal year ended March 31, 2015 includes a federal tax expense of $0.3 million allocated from other comprehensive income.

As of March 31, 2015 and 2014, the Company's gross deferred tax assets are reduced by a valuation allowance of $167.6 million and $189.3 million, respectively. A valuation allowance on U.S. deferred tax assets was determined to be necessary based on the existence of significant negative evidence such as a cumulative three-year loss of the U.S. consolidated group. The amount of future income required for the Company to realize its deferred tax assets is $33.5 million. The realization of $1.3 million of deferred tax assets in Italy is dependent on the sale of land and buildings in Italy.

In assessing the realizability of deferred tax assets in foreign jurisdictions, management 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 dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowances as of March 31, 2015. However, the amount of deferred tax assets considered realizable could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced.

As of March 31, 2015, the Company had U.S. federal net operating loss carryforwards of $392.8 million. These U.S. federal net operating losses were incurred from 2004 through 2015 and are available to offset future federal taxable income, ifany, through 2035. The Company had state net operating losses of $471.9 million, of which $3.0 million will expire in one year if unused. These state net operating losses are available to offset future state taxable income, if any, through 2035. Foreign subsidiaries, primarily in Finland, Italy, Portugal and Sweden had net operating loss carryforwards totaling $57.7 million. The net operating losses in Portugal and Finland are available to offset future taxable income through 2027 and 2019, respectively. The net operating losses in Italy and Sweden are available indefinitely to offset future taxable income. For the U.S. federal and state jurisdictions there is a greater likelihood of not realizing the future tax benefits of these deferred tax assets, and accordingly, the Company has recorded valuation allowances related to the net deferred tax assets in these jurisdictions. For the foreign jurisdictions with net operating loss carryforwards, a valuation allowance has been recorded where the Company does not expect to fully realize the deferred tax assets in the future.

Utilization of the Company's net operating loss carryforwards may be subject to substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended (the "Code") and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization. The issuance of the Platinum Warrant may have given rise to an "ownership change" for purposes of Section 382 of the Code. If such an ownership change were deemed to have occurred, the amount of our taxable income that could be offset by the Company's net operating loss carryovers in taxable years after the ownership change would be severely limited. While the Company believes that the issuance of the Platinum Warrant did not result in an ownership change for purposes of Section 382 of the Code, there is no assurance that the Company's view will be unchallenged. Moreover, a future exercise of part or all of the Platinum Warrant may give rise to an ownership change in the future. Blue Powder was acquired which has substantial federal net operating losses that will now be limited due to the ownership change which occurred.

101

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 12: Income Taxes (Continued)

At March 31, 2015, the U.S. consolidated group of companies had the following tax credit carryforwards available (amounts in thousands):

	Tax Credits ($)	Fiscal Year of Expiration
U.S. foreign tax credits	5,805	2017
U.S. research credits	916	2023
Texas franchise tax credits	3,304	2026

The Company conducts business in Macedonia through a subsidiary that qualifies for a tax holiday. The tax holiday will terminate on January 1, 2023. For calendar years 2013, 2014, and 2015, the statutory rate of 10% was reduced to zero. For the fiscal year ended March 31, 2015 the Company realized an income tax benefit of $0.3 million from the tax holiday.

At March 31, 2015, the Company makes no assertion that unremitted earnings from subsidiaries outside the United States are indefinitely reinvested. This assertion changed this year based on an analysis of cash needs in the U.S. related to a planned acquisition and current debt funding. Due to the valuation allowance in the U.S., this assertion resulted in no cash tax impact. The Company has recognized a deferred tax liability relating to its investments in subsidiaries outside the United States.

At March 31, 2015, the Company had $6.4 million of unrecognized tax benefits. A reconciliation of gross unrecognized tax benefits (excluding interest and penalties) is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Beginning of fiscal year	$	5,691		$	5,395		$	6,321
Additions for tax positions of the current year	1,115			639			35
Additions for tax positions of prior years	—			19			37
Reductions for tax positions of prior years	(56		)	(28		)	(640		)
Lapse in statute of limitations	(203		)	—			(358		)
Settlements	(170		)	(334		)	—
End of fiscal year	$	6,377		$	5,691		$	5,395

At March 31, 2015, $1.7 million of the $6.4 million of unrecognized income tax benefits would affect the Company's effective income tax rate, if recognized. It is reasonably possible that the total unrecognized tax benefit could decrease by $1.1 million in fiscal year 2016 if the advanced pricing arrangement for one of the Company’s foreign subsidiaries is agreed to by the foreign tax authority. An estimate of the reasonably possible range cannot be made.

The Company files income tax returns in the U.S. and multiple foreign jurisdictions, including various state and local jurisdictions. The U.S. Internal Revenue Service concluded its examinations of the Company's U.S. federal tax returns for all tax years through 2003. Because of net operating losses, the Company's U.S. federal returns for 2003 and later years will remain subject to examination until the losses are utilized. The Company is subject to income tax examinations for the years 2008 and forward in Mexico and Portugal; and 2010 and forward in China and Italy. The Company records potential interest and penalty expenses related to unrecognized income tax benefits within its global operations in income tax expense. The Company had $0.3 million and $0.4 million of accrued interest and penalties respectively at March 31, 2015 and 2014, which is included as a component of income tax expense. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision.

102

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 13: Derivatives

In fiscal year 2015, the Company began using certain derivative instruments (i.e., foreign exchange contracts) to reduce exposures to the volatility of foreign currencies impacting revenues and the costs of its products. The Company did not have any foreign exchange contracts in fiscal year 2014. There was no impact on the Consolidated Statement of Operations in fiscal year 2015 as the program was initiated in the fourth quarter and there has been no ineffectiveness. The balance sheet classifications and fair value of derivative instruments as of March 31, 2015 are as follows (amounts in thousands):

	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance Sheet Caption	Fair Value (1)		Balance Sheet Caption	Fair Value (1)
Foreign exchange contracts	Prepaid and other	$	1,003	Accrued Expenses	$	—

______________________________________________________________________________

(1) Fair Value measured using Level 2 inputs by adjusting the market spot rate by forward points, based on the date of the contract. The spot rates and forward points used are based on an average rate from an actively traded market.

Unrealized gains and losses associated with the change in value of these financial instruments are recorded in Accumulated other comprehensive income (loss) ("AOCI"). The pre-tax impact on AOCI related to the change in value of these financial instruments is as follows (amounts in thousands):

	Fiscal Year Ended March 31,
	2015
Beginning of fiscal year	$	—
Current fiscal year unrealized gain (loss) related to the change in value of the financial instruments	1,003
Plus unrealized gain (loss) in AOCI that were recognized in the current fiscal year	—
Net change in AOCI related to financial instruments	1,003
End of fiscal year	$	1,003

Hedging Foreign Currencies

Certain operating expenses at the Company's Mexican facilities are paid in Mexican pesos. In order to hedge a portion of these forecasted cash flows, the Company purchases foreign exchange contracts, with terms generally less than twelve months, to buy Mexican pesos for periods and amounts consistent with underlying cash flow exposures. These contracts are designated as cash flow hedges at inception and monitored for effectiveness on a routine basis. There were $23.6 million in peso contracts (notional value) outstanding at March 31, 2015.

Certain expenditures at the Company's Mexican facilities are paid in Japanese yen. In order to hedge a portion of these forecasted cash flows, the Company purchases foreign exchange contracts, with terms generally less than six months, to buy Japanese yen for periods and amounts consistent with underlying cash flow exposures. These contracts are designated as cash flow hedges at inception and monitored for effectiveness on a routine basis. There were $12.1 million in yen contracts (notional value) outstanding at March 31, 2015.

Certain sales are made in euros. In order to hedge a portion of these forecasted cash flows, management purchases foreign exchange contracts, with terms generally less than six months, to sell euros for periods and amounts consistent with the related underlying cash flow exposures. These contracts are designated hedges at inception and monitored for effectiveness on a routine basis. There were $13.8 million in euro contracts (notional value) outstanding at March 31, 2015.

Changes in the derivatives' fair values are deferred and recorded as a component of AOCI until the underlying transaction is recorded to the income statement. When the hedged item affects income, gains or losses are reclassified from AOCI to the Consolidated Statement of Operations as cost of goods sold for foreign exchange contracts to purchase Mexican pesos and Japanese yen, and as Net sales for foreign exchange contracts to sell euros. Any ineffectiveness, if material, in the

103

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 13: Derivatives (Continued)

Company's hedging relationships is recognized immediately as a loss, within the same income statement accounts as described above. Changes in derivative balances impact the line item "Prepaid and other assets" on the Consolidated Statements of Cash Flows.

The Company formally documents all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various hedge transactions.

Note 14: Supplemental Balance Sheets and Statements of Operations Detail (amounts in thousands)

	March 31,
	2015			2014
Accounts receivable:
Trade	$	115,504		$	123,607
Allowance for doubtful accounts reserve	(925		)	(1,401		)
Ship-from-stock and debit reserve	(19,360		)	(18,041		)
Returns reserves	(3,190		)	(2,993		)
Rebates reserves	(780		)	(1,035		)
Price protection reserves	(270		)	(125		)
Other	(122		)	(1,065		)
Accounts receivable, net	$	90,857		$	98,947

The Company has agreements with distributors and certain other customers that, under certain conditions, allow for returns of overstocked inventory, provide protection against price reductions initiated by the Company and grant other sales allowances. Allowances for these commitments are included in the Consolidated Balance Sheets as reductions in trade accounts receivable. The Company adjusts sales based on historical experience.

The following table presents the annual activities included in the allowance for these commitments:

Balance at March 31, 2012	$	17,463
Charged to operations	82,738
Write-offs	(81,621		)
Other	(62		)
Balance at March 31, 2013	18,518
Charged to operations	89,909
Write-offs	(83,911		)
Other	144
Balance at March 31, 2014	24,660
Charged to operations	91,091
Write-offs	(90,909		)
Other	(195		)
Balance at March 31, 2015	$	24,647

104

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 14: Supplemental Balance Sheets and Statements of Operations Detail (amounts in thousands) (Continued)

	March 31,
	2015			2014
Inventories:
Raw materials and supplies	$	83,372		$	90,968
Work in process	52,759			61,310
Finished goods	53,211			62,522
Inventory gross	189,342			214,800
Inventory reserves	(17,499		)	(26,826		)
Inventory, net	$	171,843		$	187,974

The following table presents the annual activities included in the inventory reserves:

Balance at March 31, 2012	$	17,144
Costs charged to expense	5,493
Write-offs	(3,836		)
Other	(337		)
Balance at March 31, 2013	18,464
Costs charged to expense	11,846
Write-offs	(3,880		)
Other	396
Balance at March 31, 2014	26,826
Costs charged to expense	9,291
Write-offs	(17,520		)
Other	(1,098		)
Balance at March 31, 2015	$	17,499

	Useful life (years)	March 31,
		2015			2014
Property, plant and equipment:
Land and land improvements	20	$	22,017		$	25,965
Buildings	20 - 40	149,451			163,062
Machinery and equipment	10	798,112			824,878
Furniture and fixtures	4 - 10	60,903			69,676
Construction in progress		21,260			14,754
Other		2,184			—
Total property and equipment		1,053,927			1,098,335
Accumulated depreciation		(804,286		)	(805,687		)
Property, plant and equipment, net		$	249,641		$	292,648

105

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 14: Supplemental Balance Sheets and Statements of Operations Detail (amounts in thousands) (Continued)

	March 31,
	2015		2014
Accrued expenses:
Salaries, wages, and related employee costs	$	26,117	$	23,596
Interest	15,678		15,735
Restructuring	6,591		6,217
Vacation	6,286		10,570
Deferred acquisition payments	—		19,153
Other	5,784		1,197
Total accrued expenses	$	60,456	$	76,468

	March 31,
	2015		2014
Other non-current obligations:
Pension plans	38,982		32,852
Employee separation liability	10,638		15,419
Deferred compensation	1,548		1,559
Long-term obligation on land purchase	1,594		2,388
Restructuring	648		—
Other	3,721		3,646
Total other non-current obligations	$	57,131	$	55,864

	Fiscal Years Ended March 31,
	2015			2014			2013
Non-operating (income) expense, net:
Net foreign exchange (gains) losses	(4,249		)	(304		)	(28		)
Change in value of NEC Tokin options	(2,100		)	(3,111		)	—
Gain on early extinguishment of debt	(1,003		)	—			—
Miscellaneous non-product income	—			—			(465		)
Offering memorandum fees	1,142			—			—
Other	28			734			(1,802		)
Total non-operating (income) expense, net	$	(6,182	)	$	(2,681	)	$	(2,295	)

106

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 15: Income/Loss Per Share

Basic earnings per share calculation is based on the weighted-average number of common shares outstanding. Diluted earnings per share calculation is based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of common stock include stock options and Platinum Warrant.     

The following table presents the basic and diluted weighted-average number of shares of common stock (amounts in thousands, except per share data):

	Fiscal Years Ended March 31,
	2015			2014			2013
Numerator
Income (loss) from continuing operations	$	(19,522	)	$	(64,869	)	$	(78,512	)
Income (loss) from discontinued operations, net of income tax expense (benefit) of $1,976, $(98) and $37, respectively	5,379			(3,634		)	(3,670		)
Net income (loss)	$	(14,143	)	$	(68,503	)	$	(82,182	)
Denominator:
Weighted-average common shares outstanding:
Basic	45,381			45,102			44,897
Assumed conversion of employee stock options	—			—			—
Assumed conversion of Platinum Warrant	—			—			—
Weighted-average shares outstanding (diluted)	45,381			45,102			44,897
Net income (loss) per basic share:
Income (loss) from continuing operations	$	(0.43	)	$	(1.44	)	$	(1.75	)
Income (loss) from discontinued operations, net of income tax expense (benefit)	$	0.12		$	(0.08	)	$	(0.08	)
Net income (loss)	$	(0.31	)	$	(1.52	)	$	(1.83	)
Net income (loss) per diluted share:
Income (loss) from continuing operations	$	(0.43	)	$	(1.44	)	$	(1.75	)
Income (loss) from discontinued operations, net of income tax expense (benefit)	$	0.12		$	(0.08	)	$	(0.08	)
Net income (loss)	$	(0.31	)	$	(1.52	)	$	(1.83	)

Common stock equivalents that could potentially dilute net income per basic share in the future, but were not included in the computation of diluted earnings per share because the impact would have been antidilutive, were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015	2014	2013
Assumed conversion of employee stock options	1,783	1,761	1,996
Assumed conversion of Platinum Warrant	6,287	6,704	6,836

107

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 16: Commitments and Contingencies

The Company's leases are primarily for distribution facilities or sales offices that expire principally between 2015 and 2023. A number of leases require the Company to pay certain executory costs (taxes, insurance, and maintenance) and contain certain renewal and purchase options. Annual rental expenses for operating leases were included in results of operations and were $7.6 million, $9.9 million and $10.1 million in fiscal years 2015, 2014, and 2013, respectively.

Future minimum lease payments over the next five fiscal years and thereafter under non-cancellable operating leases at March 31, 2015, are as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2016			2017		2018		2019		2020		Thereafter
Minimum lease payments	$	5,221		$	2,879	$	2,135	$	1,144	$	401	$	1,272
Sublease rental income	(21		)	—		—		—		—		—
Net minimum lease payments	$	5,200		$	2,879	$	2,135	$	1,144	$	401	$	1,272

The Company or its subsidiaries are at any one time parties to a number of lawsuits arising out of their respective operations, including workers' compensation or work place safety cases, some of which involve claims of substantial damages. Although there can be no assurance, based upon information known to the Company, the Company does not believe that any liability which might result from an adverse determination of such lawsuits would have a material adverse effect on the Company's financial condition or results of operations.

Note 17: Quarterly Results of Operations (Unaudited)

The following table sets forth certain quarterly information for fiscal years 2015 and 2014. This information, in the opinion of the Company's management, reflects all adjustments (consisting only of normal recurring adjustments) necessary to present fairly this information when read in conjunction with the consolidated financial statements and notes thereto included elsewhere herein (amounts in thousands except per share data):

	Fiscal Year 2015 Quarters Ended
	Jun-30			Sep-30			Dec-31			Mar-31
Net sales	$	212,881		$	215,293		$	201,310		$	193,708
Operating income (loss) (1)	(606		)	12,770			9,302			912
Income (loss) from continuing operations	(10,483		)	7,730			3,078			(19,847		)
Income (loss) from discontinued operations	6,943			(1,400		)	(164		)	—
Net income (loss)	(3,540		)	6,330			2,914			(19,847		)
Net income (loss) per basic share:
Loss from continuing operations	$	(0.23	)	$	0.17		$	0.07		$	(0.44	)
Income (loss) from discontinued operations	$	0.15		$	(0.03	)	$	—		$	—
Net income (loss)	$	(0.08	)	$	0.14		$	0.07		$	(0.44	)
Net income (loss) per diluted share:
Income (loss) from continuing operations	$	(0.23	)	$	0.15		$	0.06		$	(0.44	)
Income (loss) from discontinued operations	$	0.15		$	(0.03	)	$	—		$	—
Net income (loss)	$	(0.08	)	$	0.12		$	0.06		$	(0.44	)

108

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 17: Quarterly Results of Operations (Unaudited)

	Fiscal Year 2014 Quarters Ended
	Jun-30			Sep-30			Dec-31			Mar-31
Net sales	$	202,057		$	208,449		$	207,339		$	215,821
Operating income (loss) (1)	(18,212		)	1,585			3,623			(5,207		)
Income (loss) from continuing operations	(33,630		)	(11,945		)	(4,744		)	(14,550		)
Income (loss) from discontinued operations	(1,510		)	(1,151		)	(1,076		)	103
Net income (loss)	(35,140		)	(13,096		)	(5,820		)	(14,447		)
Net income (loss) per basic share:
Income (loss) from continuing operations	$	(0.75	)	$	(0.26	)	$	(0.11	)	$	(0.32	)
Income (loss) from discontinued operations	$	(0.03	)	$	(0.03	)	$	(0.02	)	$	—
Net income (loss)	$	(0.78	)	$	(0.29	)	$	(0.13	)	$	(0.32	)
Net income (loss) per diluted share:
Income (loss) from continuing operations	$	(0.75	)	$	(0.26	)	$	(0.11	)	$	(0.32	)
Income (loss) from discontinued operations	$	(0.03	)	$	(0.03	)	$	(0.02	)	$	—
Net income (loss)	$	(0.78	)	$	(0.29	)	$	(0.13	)	$	(0.32	)

_______________________________________________________________________________

(1) Operating income (loss) as a percentage of net sales fluctuates from quarter to quarter due to a number of factors, including net sales fluctuations, foreign currency exchange, restructuring charges, product mix, the timing and expense of moving product lines to lower-cost locations, the write-down of long lived assets, the net gain/loss on sales and disposals of assets and the relative mix of sales among distributors, original equipment manufacturers, and electronic manufacturing service providers.

Note 18: Condensed Consolidating Financial Statements

As discussed in Note 2, "Debt", the Company's 10.5% Senior Notes are fully and unconditionally guaranteed, jointly and severally, on a senior basis by certain of the Company's 100% owned domestic subsidiaries ("Guarantor Subsidiaries") and secured by a first priority lien on 51% of the capital stock of certain of the Company's foreign restricted subsidiaries ("Non-Guarantor Subsidiaries"). The Company's Guarantor Subsidiaries are not consistent with the Company's business groups or geographic operations; accordingly, this basis of presentation is not intended to present the Company's financial condition, results of operations or cash flows for any purpose other than to comply with the specific requirements for subsidiary guarantor reporting. We are required to present condensed consolidating financial information in order for the subsidiary guarantors of the Company's public debt to be exempt from reporting under the Securities Exchange Act of 1934, as amended.

Condensed consolidating financial statements for the Company's Guarantor Subsidiaries and Non-Guarantor Subsidiaries are presented in the following tables (amounts in thousands):

109

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 18: Condensed Consolidating Financial Statements (Continued)

Condensed Consolidating Balance Sheet

March 31, 2015

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Reclassifications and Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	640	$	33,094	$	22,628	$	—		$	56,362
Accounts receivable, net	—		35,535		55,322		—			90,857
Intercompany receivable	321,233		403,557		195,518		(920,308		)	—
Inventories, net	—		119,221		52,622		—			171,843
Prepaid expenses and other	3,191		21,134		20,164		(2,986		)	41,503
Deferred income taxes	—		5,031		5,731		—			10,762
Total current assets	325,064		617,572		351,985		(923,294		)	371,327
Property and equipment, net	293		100,844		148,504		—			249,641
Investments in NEC TOKIN	—		45,016		—		—			45,016
Investments in subsidiaries	401,062		423,737		30,285		(855,084		)	—
Goodwill	—		35,584		—		—			35,584
Intangible assets, net	—		26,998		6,284		—			33,282
Restricted cash	—		1,775		—		—			1,775
Deferred income taxes	—		971		4,140		—			5,111
Other assets	4,088		6,049		919		—			11,056
Long-term intercompany receivable	63,788		39,151		1,088		(104,027		)	—
Total assets	$	794,295	$	1,297,697	$	543,205	$	(1,882,405	)	$	752,792
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	500	$	462	$	—		$	962
Accounts payable, trade	47		36,565		33,173		—			69,785
Intercompany payable	254,852		578,318		87,138		(920,308		)	—
Accrued expenses	17,253		16,644		26,559		—			60,456
Income taxes payable	—		2,928		1,075		(2,986		)	1,017
Total current liabilities	272,152		634,955		148,407		(923,294		)	132,220
Long-term debt, less current portion	357,461		20,948		12,000		—			390,409
Other non-current obligations	—		2,987		54,144		—			57,131
Deferred income taxes	—		7,272		1,078		—			8,350
Long-term intercompany payable	—		63,789		40,238		(104,027		)	—
Stockholders' equity	164,682		567,746		287,338		(855,084		)	164,682
Total liabilities and stockholders' equity	$	794,295	$	1,297,697	$	543,205	$	(1,882,405	)	$	752,792

110

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 18: Condensed Consolidating Financial Statements (Continued)

Condensed Consolidating Balance Sheet

March 31, 2014

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Reclassifications and Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	616	$	22,200	$	35,113	$	—		$	57,929
Accounts receivable, net	—		49,462		49,485		—			98,947
Intercompany receivable	318,582		329,211		203,018		(850,811		)	—
Inventories, net	—		119,340		68,634		—			187,974
Prepaid expenses and other	3,146		15,286		21,380		(2,941		)	36,871
Deferred income taxes	—		1,022		5,673		—			6,695
Current assets of discontinued operations	—		—		12,160		—			12,160
Total current assets	322,344		536,521		395,463		(853,752		)	400,576
Property and equipment, net	329		104,874		187,445		—			292,648
Investment in NEC TOKIN	—		46,419		—		—			46,419
Investment in subsidiaries	402,090		424,386		30,285		(856,761		)	—
Goodwill	—		35,584		—		—			35,584
Intangible assets, net	—		28,380		8,804		—			37,184
Restricted cash	—		13,512		—		—			13,512
Deferred income taxes	—		1,010		5,768		—			6,778
Other assets	5,415		3,895		820		—			10,130
Noncurrent assets of discontinued operations	—		—		836		—			836
Long-term intercompany receivable	81,746		60,663		2,801		(145,210		)	—
Total assets	$	811,924	$	1,255,244	$	632,222	$	(1,855,723	)	$	843,667
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	5,988	$	—	$	1,309	$	—		$	7,297
Accounts payable, trade	84		36,579		38,155		—			74,818
Intercompany payable	176,624		570,535		103,652		(850,811		)	—
Accrued expenses	34,236		13,698		28,534		—			76,468
Income taxes payable	—		2,909		1,012		(2,941		)	980
Current liabilities of discontinued operations	—		—		7,269		—			7,269
Total current liabilities	216,932		623,721		179,931		(853,752		)	166,832
Long-term debt, less current portion	372,251		6,449		12,592		—			391,292
Other non-current obligations	857		3,311		51,696		—			55,864
Deferred income taxes	—		3,258		1,945		—			5,203
Noncurrent liabilities of discontinued operations	—		—		2,592		—			2,592
Long-term intercompany payable	—		81,747		63,463		(145,210		)	—
Stockholders' equity	221,884		536,758		320,003		(856,761		)	221,884
Total liabilities and stockholders' equity	$	811,924	$	1,255,244	$	632,222	$	(1,855,723	)	$	843,667

111

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 18: Condensed Consolidating Financial Statements (Continued)

Condensed Consolidating Statements of Operations

Fiscal Year Ended March 31, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	195		$	978,705		$	773,504		$	(929,212	)	$	823,192
Operating costs and expenses:
Cost of sales	2,468			823,429			707,493			(869,707		)	663,683
Selling, general and administrative expenses	41,783			70,074			46,181			(59,505		)	98,533
Research and development	436			17,588			7,778			—			25,802
Restructuring charges	—			3,310			9,707			—			13,017
Net (gain) loss on sales and disposals of assets	(10		)	181			(392		)	—			(221		)
Total operating costs and expenses	44,677			914,582			770,767			(929,212		)	800,814
Operating income (loss)	(44,482		)	64,123			2,737			—			22,378
Other (income) expense:
Interest income	—			—			(15		)	—			(15		)
Interest expense	38,632			998			1,071			—			40,701
Non-operating (income) expense, net	(40,903		)	46,969			(12,248		)	—			(6,182		)
Equity in earnings of subsidiaries	(27,998		)	—			—			27,998			—
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(14,213		)	16,156			13,929			(27,998		)	(12,126		)
Income tax expense (benefit)	(70		)	576			4,721			—			5,227
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(14,143		)	15,580			9,208			(27,998		)	(17,353		)
Equity income (loss) from NEC TOKIN	—			(2,169		)	—			—			(2,169		)
Income (loss) from continuing operations	(14,143		)	13,411			9,208			(27,998		)	(19,522		)
Income (loss) from discontinued operations	—			102			5,277			—			5,379
Net income (loss)	$	(14,143	)	$	13,513		$	14,485		$	(27,998	)	$	(14,143	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Fiscal Year Ended March 31, 2015

Other comprehensive income (loss) $ (32,103 ) $ 19,650 $ (20,672 ) $ (27,998 ) $ (61,123 )

112

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 18: Condensed Consolidating Financial Statements (Continued)

Condensed Consolidating Statements of Operations

Fiscal Year Ended March 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	218		$	966,369		$	817,945		$	(950,866	)	$	833,666
Operating costs and expenses:
Cost of sales	1,336			878,308			729,105			(895,824		)	712,925
Selling, general and administrative expenses	41,359			61,896			47,643			(55,042		)	95,856
Research and development	229			16,849			7,388			—			24,466
Restructuring charges	—			2,858			11,264			—			14,122
Write down of long-lived assets	—			1,118			3,358			—			4,476
Net (gain) loss on sales and disposals of assets	—			(625		)	657			—			32
Net (gain) loss on intercompany asset transfer	—			14,564			(14,564		)	—			—
Total operating costs and expenses	42,924			974,968			784,851			(950,866		)	851,877
Operating income (loss)	(42,706		)	(8,599		)	33,094			—			(18,211		)
Other (income) expense:
Interest income	(12		)	(4		)	(179		)	—			(195		)
Interest expense	40,069			1,130			(237		)	—			40,962
Non-operating (income) expense, net	(40,642		)	36,741			1,220			—			(2,681		)
Equity in earnings of subsidiaries	26,332			—			—			(26,332		)	—
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(68,453		)	(46,466		)	32,290			26,332			(56,297		)
Income tax expense (benefit)	—			(1,302		)	2,784			—			1,482
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(68,453		)	(45,164		)	29,506			26,332			(57,779		)
Equity income (loss) from NEC TOKIN	—			(7,090		)	—			—			(7,090		)
Income (loss) from continuing operations	(68,453		)	(52,254		)	29,506			26,332			(64,869		)
Income (loss) from discontinued operations	(50		)	(1,195		)	(2,389		)	—			(3,634		)
Net income (loss)	$	(68,503	)	$	(53,449	)	$	27,117		$	26,332		$	(68,503	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Fiscal Year Ended March 31, 2014

Comprehensive income (loss) $ (62,676 ) $ (57,309 ) $ 35,640 $ 26,332 $ (58,013 )

113

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 18: Condensed Consolidating Financial Statements (Continued)

Condensed Consolidating Statements of Operations

Fiscal Year Ended March 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	—		$	905,755		$	843,938		$	(925,790	)	$	823,903
Operating costs and expenses:
Cost of sales	2,003			823,170			754,783			(882,880		)	697,076
Selling, general and administrative expenses	30,838			68,711			50,981			(42,910		)	107,620
Research and development	190			20,028			6,658			—			26,876
Restructuring charges	—			7,266			11,453			—			18,719
Write down of long-lived assets	—			438			7,144			—			7,582
Goodwill impairment	—			1,092			—			—			1,092
Net (gain) loss on sales and disposals of assets	3			98			(83		)	—			18
Total operating costs and expenses	33,034			920,803			830,936			(925,790		)	858,983
Operating income (loss)	(33,034		)	(15,048		)	13,002			—			(35,080		)
Other (income) expense:
Interest income	(24		)	(43		)	(72		)	—			(139		)
Interest expense	40,651			972			(292		)	—			41,331
Other (income) expense, net	(27,233		)	27,623			(2,685		)	—			(2,295		)
Equity in earnings of subsidiaries	35,754			—			—			(35,754		)	—
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(82,182		)	(43,600		)	16,051			35,754			(73,977		)
Income tax expense (benefit)	—			636			2,645			—			3,281
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(82,182		)	(44,236		)	13,406			35,754			(77,258		)
Equity income (loss) from NEC TOKIN	—			(1,254		)	—			—			(1,254		)
Income (loss) from continuing operations	(82,182		)	(45,490		)	13,406			35,754			(78,512		)
Income (loss) from discontinued operations	—			—			(3,670		)	—			(3,670		)
Net income (loss)	$	(82,182	)	$	(45,490	)	$	9,736		$	35,754		$	(82,182	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Fiscal Year Ended March 31, 2013

Comprehensive income (loss) $ (85,449 ) $ (43,519 ) $ 6,706 $ 35,754 $ (86,508 )

114

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 18: Condensed Consolidating Financial Statements (Continued)

Condensed Consolidating Statements of Cash Flows

Fiscal Year Ended March 31, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations		Consolidated
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$	39,575		$	(4,085	)	$	(11,088	)	$	—	$	24,402
Investing activities:
Capital expenditures	—			(12,930		)	(9,302		)	—		(22,232		)
Change in restricted cash	—			11,509			—			—		11,509
Proceeds from sale of assets	—			2,403			2,385			—		4,788
Proceeds from sale of discontinued operations	—			—			9,564			—		9,564
Net cash provided by (used in) investing activities	—			982			2,647			—		3,629
Financing activities:
Proceeds from revolving line of credit	—			37,340			5,000			—		42,340
Payments of revolving line of credit	—			(22,342		)	(5,000		)	—		(27,342		)
Deferred acquisition payments	(18,527		)	(1,000		)	—			—		(19,527		)
Payments of long-term debt	(20,417		)	—			(1,316		)	—		(21,733		)
Proceeds from exercise of stock options	24			—			—			—		24
Purchase of treasury stock	(630		)	—			—			—		(630		)
Net cash provided by (used in) financing activities	(39,550		)	13,998			(1,316		)	—		(26,868		)
Net increase (decrease) in cash and cash equivalents	25			10,895			(9,757		)	—		1,163
Effect of foreign currency fluctuations on cash	(1		)	(1		)	(2,728		)	—		(2,730		)
Cash and cash equivalents at beginning of fiscal year	616			22,200			35,113			—		57,929
Cash and cash equivalents at end of fiscal year	$	640		$	33,094		$	22,628		$	—	$	56,362

115

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 18: Condensed Consolidating Financial Statements (Continued)

Condensed Consolidating Statements of Cash Flows

Fiscal Year Ended March 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations		Consolidated
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$	7,724		$	(26,984	)	$	12,514		$	—	$	(6,746	)
Investing activities:
Capital expenditures	—			(13,348		)	(18,799		)	—		(32,147		)
Change in restricted cash	—			4,047			—			—		4,047
Proceeds from sale of assets	—			996			1,851			—		2,847
Net cash provided by (used in) investing activities	—			(8,305		)	(16,948		)	—		(25,253		)
Financing activities:
Proceeds from revolving line of credit	—			9,000			12,000			—		21,000
Payments on revolving line of credit	—			(2,551		)	—			—		(2,551		)
Deferred acquisition payments	(20,977		)	(1,000		)	—			—		(21,977		)
Payments of long-term debt	(3,583		)	(16		)	—			—		(3,599		)
Proceeds from exercise of stock options	250			—			—			—		250
Net cash provided by (used in) financing activities	(24,310		)	5,433			12,000			—		(6,877		)
Net increase (decrease) in cash and cash equivalents	(16,586		)	(29,856		)	7,566			—		(38,876		)
Effect of foreign currency fluctuations on cash	—			—			827			—		827
Cash and cash equivalents at beginning of fiscal year	17,202			52,056			26,720			—		95,978
Cash and cash equivalents at end of fiscal year	$	616		$	22,200		$	35,113		$	—	$	57,929

116

KEMET CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

Note 18: Condensed Consolidating Financial Statements (Continued)

Condensed Consolidating Statements of Cash Flows

Fiscal Year Ended March 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations		Consolidated
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$	(14,492	)	$	(43,099	)	$	34,764		$	—	$	(22,827	)
Investing activities:
Capital expenditures	—			(15,841		)	(30,333		)	—		(46,174		)
Investment in NEC TOKIN (excludes non cash investment)	—			(50,917		)	—			—		(50,917		)
Change in restricted cash	—			(15,284		)	—			—		(15,284		)
Proceeds from sale of assets	—			—			398			—		398
Net cash provided by (used in) investing activities	—			(82,042		)	(29,935		)	—		(111,977		)
Financing activities:
Proceeds from issuance of debt	39,825			—			—			—		39,825
Deferred acquisition payments	(15,900		)	(1,000		)	—			—		(16,900		)
Payments of long-term debt	—			(8		)	(1,901		)	—		(1,909		)
Debt issuance costs	(275		)	—			—			—		(275		)
Proceeds from exercise of stock options	111			—			—			—		111
Net cash provided by (used in) financing activities	23,761			(1,008		)	(1,901		)	—		20,852
Net increase (decrease) in cash and cash equivalents	9,269			(126,149		)	2,928			—		(113,952		)
Effect of foreign currency fluctuations on cash	—			—			(591		)	—		(591		)
Cash and cash equivalents at beginning of fiscal year	7,933			178,205			24,383			—		210,521
Cash and cash equivalents at end of fiscal year	$	17,202		$	52,056		$	26,720		$	—	$	95,978

Note 19: Subsequent Events

On April 1, 2015 KEMET purchased IntelliData, Inc., a Greenwood Village, Colorado-based developer of digital solutions supporting discovery, decision support, and the sales and marketing of electronic components. As a KEMET vendor since 2000, IntelliData provides a variety of content automation and delivery tools and services. IntelliData was founded in 1999 by electronics industry executives. IntelliData's database and software products support more than 560 electronic component manufacturers delivering power and efficiency to design/selection, decision support, sales and marketing.

117

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	KEMET CORPORATION (Registrant)
Date: May 21, 2015	/s/ WILLIAM M. LOWE, JR.
	William M. Lowe, Jr. Executive Vice President and Chief Financial Officer

________________________________________________________________________________________________________________________

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: May 21, 2015	/s/ PER-OLOF LÖÖF
	Per-Olof Lööf Chief Executive Officer and Director (Principal Executive Officer)
Date: May 21, 2015	/s/ WILLIAM M. LOWE, JR.
	William M. Lowe, Jr. Executive Vice President and Chief Financial Officer (Principal Accounting and Financial Officer)
Date: May 21, 2015
	Frank G. Brandenberg Chairman and Director
Date: May 21, 2015	/s/ DR. WILFRIED BACKES
	Dr. Wilfried Backes Director
Date: May 21, 2015	/s/ GURMINDER S. BEDI
	Gurminder S. Bedi Director
Date: May 21, 2015	/s/ JOSEPH V. BORRUSO
	Joseph V. Borruso Director
Date: May 21, 2015
	Jacob Kozubei Director
Date: May 21, 2015	/s/ E. ERWIN MADDREY, II
	E. Erwin Maddrey, II Director
Date: May 21, 2015
	Robert G. Paul Director

118

EX-21.1

Exhibit 21.1

List of Subsidiaries as of March 31, 2014

Name of Subsidiary	Country of Incorporation
KEMET Electronics Corporation	United States (Delaware)
KEMET Blue Powder Corporation	United States (Nevada)
KEMET Foil Manufacturing, LLC	United States (Delaware)
KEMET Services Corporation	United States (Delaware)
KRC Trade Corporation	United States (Delaware)
The Forest Electric Company	United States (Illinois)
KEMET Electronics Bulgaria EAD	Bulgaria
KEMET Electronics Services EOOD	Bulgaria
KEMET Electronics Oy	Finland
KEMET Electronics SAS	France
KEMET Electronics GmbH	Germany
KEMET Electronics Asia Limited	Hong Kong
KEMET Electronics Greater China Limited	Hong Kong
P.T. KEMET Electronics Indonesia	Indonesia
KEMET Electronics Italia S.r.l.	Italy
KEMET Electronics S.p.A.	Italy
KEMET Electronics Japan Co., Ltd.	Japan
NEC TOKIN Corporation	Japan
KEMET Electronics Macedonia DOOEL Skopje	Macedonia
KEMET Electronics (Malaysia) Sdn. Bhd.	Malaysia
KEMET de Mexico, S.A. de C.V.	Mexico
KEMET Electronics (Suzhou) Co., Ltd.	People’s Republic of China
Shanghai Arcotronics Components & Machineries Co., Ltd.	People’s Republic of China
KEMET Electronics Portugal, S.A.	Portugal
Evox Rifa Pte Ltd.	Singapore
KEMET Electronics Asia Pacific Pte Ltd.	Singapore
KEMET Electronics Marketing (S) Pte Ltd.	Singapore
Seoryong Singapore Pte. Ltd.	Singapore
KEMET Electronics AB	Sweden
KEMET Electronics, S.A.	Switzerland
KEMET Electronics Limited	United Kingdom

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Form S-8 No. 333-123308)

(2) Registration Statement (Form S-8 No. 33-96226)

(3) Registration Statement (Form S-8 No. 333-67849)

(4) Registration Statement (Form S-8 No. 333-176317)

(5) Registration Statement (Form S-8 No. 333-197782)

of our reports dated May 21, 2015, with respect to the consolidated financial statements of KEMET Corporation and subsidiaries and the effectiveness of internal control over financial reporting of KEMET Corporation and subsidiaries, included in this Annual Report (Form 10-K) of KEMET Corporation and subsidiaries for the year ended March 31, 2015.

/s/ Ernst & Young LLP

Greenville, South Carolina

May 21, 2015

EX-23.2

Exhibit 23.2

CONSENT OF PAUMANOK PUBLICATIONS, INC.

Date: May 20, 2015

We hereby irrevocably consent to the use of our company’s name, all references to reports conducted by us and the other information and data related thereto in the Form 10-K for the fiscal year ended March 31, 2015 filed with the Securities and Exchange Commission by KEMET Corporation.

PAUMANOK PUBLICATIONS, INC.
By:	/s/ DENNIS M. ZOGBI
	Name:	Dennis M. Zogbi
	Title:	Chief Executive Officer

EX-23.3

Exhibit 23.3

CONSENT OF INDEPENDENT AUDITORS

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Form S-8 No. 333-123308)

(2) Registration Statement (Form S-8 No. 33-96226)

(3) Registration Statement (Form S-8 No. 333-67849)

(4) Registration Statement (Form S-8 No. 333-176317)

(5) Registration Statement (Form S-8 No. 333-197782)

of our report dated May 19, 2015 with respect to the consolidated financial statements of NEC Tokin Corporation and subsidiaries, included in this Annual Report (Form 10-K) of KEMET Corporation and subsidiaries for the year ended March 31, 2015.

/S/ Ernst & Young ShinNihon LLC

Tokyo, Japan

May 19, 2015

EX-31.1

Exhibit 31.1

I, Per-Olof Lööf, certify that:

1. I have reviewed this annual report on Form 10-K of KEMET Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 21, 2015

/s/ PER-OLOF LÖÖF

Per-Olof Lööf

Chief Executive Officer and Director

EX-31.2

Exhibit 31.2

I, William M. Lowe, Jr., certify that:

1. I have reviewed this annual report on Form 10-K of KEMET Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 21, 2015

/s/ WILLIAM M. LOWE, JR.

William M. Lowe, Jr.

Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Per-Olof Lööf, hereby certify pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that, to my knowledge:

The accompanying Annual Report on Form 10-K for the year ended March 31, 2015, fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

The information contained in such report fairly presents, in all material respects, the financial condition and results of operations of KEMET Corporation.

Date: May 21, 2015

/s/ PER-OLOF LÖÖF

Per-Olof Lööf

Chief Executive Officer and Director

The foregoing certifications are being furnished solely pursuant to 18 U.S.C. Section 1350 and are not being filed as part of this report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, William M. Lowe, Jr., hereby certify pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that, to my knowledge:

The accompanying Annual Report on Form 10-K for the year ended March 31, 2015, fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

The information contained in such report fairly presents, in all material respects, the financial condition and results of operations of KEMET Corporation.

Date: May 21, 2015

/s/ WILLIAM M. LOWE, JR.

William M. Lowe, Jr.

Executive Vice President and Chief Financial Officer

The foregoing certifications are being furnished solely pursuant to 18 U.S.C. Section 1350 and are not being filed as part of this report or as a separate disclosure document.

EX-99.1

Exhibit 99.1

NEC TOKIN CORPORATION

Consolidated Financial Statements

As of March 31, 2015 and 2014 and for fiscal years ended March 31, 2015 and 2014 and two-month period ended March 31, 2013

(With Report of Independent Auditors)

NEC TOKIN CORPORATION

Table of Contents

Page

Report of Independent Auditors    1

Consolidated Balance Sheets     2

Consolidated Statements of Operations    4

Consolidated Statements of Changes in Shareholders’ Equity     5

Consolidated Statements of Cash Flows    6

Notes to Consolidated Financial Statements    7

Report of Independent Auditors

The Board of Directors and Management of NEC TOKIN Corporation:

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of NEC TOKIN Corporation and subsidiaries, which comprise the consolidated balance sheet as of March 31, 2015, and the related consolidated statements of operations, changes in shareholders’ equity and cash flows for the year then ended, and the related notes to the consolidated financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in conformity with accounting principles generally accepted in Japan; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of NEC TOKIN Corporation and subsidiaries as of March 31, 2015, and the consolidated results of their operations and their cash flows for the year then ended in conformity with accounting principles generally accepted in Japan, which differ in certain respects from accounting principles generally accepted in the United States (see Note 13 to the consolidated financial statements).

We have also recomputed the translation of the consolidated financial statements as of and for the year ended March 31, 2015 into United States dollars. In our opinion, the consolidated financial statements expressed in Japanese yen have been translated into United States dollars on the basis described in Note 1.

Report on comparative financial statements

We have not audited the accompanying consolidated balance sheet of NEC TOKIN Corporation and subsidiaries as of March 31, 2014, and the related consolidated statements of operations, changes in shareholders’ equity and cash flows for the year then ended and the two month period ended March 31, 2013, and the related notes to the consolidated financial statements for such periods in accordance with auditing standards generally accepted in the United States and, accordingly, we express no opinion on them.

/S/ Ernst & Young ShinNihon LLC

Tokyo, Japan

May 19, 2015

1

NEC TOKIN CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2015 AND 2014

	Millions of Yen				Thousands of U.S. Dollars (note 1)
	March 31, 2015		(Unaudited) March 31, 2014		March 31, 2015
Assets
Current assets:
Cash on hand and in banks (note 11)	12,211		11,319		100,780
Accounts and notes receivable	7,702		7,192		63,566
Inventories (note 3)	5,855		5,368		48,322
Deferred income taxes (note 5)	70		56		578
Other current assets	739		898		6,095
Allowance for doubtful accounts	(22	)	(30	)	(182	)
Total current assets	26,555		24,803		219,159
Property, plant and equipment (note 7):
Land	4,138		4,027		34,155
Buildings and structures	31,532		30,146		260,236
Machinery, equipment and vehicles	50,020		47,476		412,815
Construction in progress	431		487		3,564
Other	10,649		10,449		87,866
Total	96,770		92,585		798,636
Less: Accumulated depreciation	(69,319	)	(66,527	)	(572,083	)
Property, plant and equipment, net	27,451		26,058		226,553
Investments and other non-current assets:
Investments in affiliates	1,441		1,344		11,898
Investments in securities	339		269		2,804
Software, net	614		780		5,068
Deferred income taxes (note 5)	217		122		1,792
Other assets	875		867		7,209
Allowance for doubtful accounts	(2	)	(2	)	(18	)
Total investments and other non-current assets	3,484		3,380		28,753
Total assets	57,490		54,241		474,465

See accompanying notes to the consolidated financial statements.

2

NEC TOKIN CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (CONTINUED)

MARCH 31, 2015 AND 2014

	Millions of Yen				Thousands of U.S. Dollars (note 1)
	March 31, 2015		(Unaudited) March 31, 2014		March 31, 2015
Liabilities and shareholders’ equity
Current liabilities:
Accounts and notes payable	5,664		5,029		46,746
Other payable	282		427		2,330
Short-term borrowings	2,512		1,851		20,737
Current installments of long-term debt	841		1,214		6,941
Provision for bonuses	955		979		7,887
Accrued expenses	2,209		1,807		18,234
Income taxes payable (note 5)	251		468		2,078
Estimated liabilities for antitrust claims and settlements (Note 12)	3,587		-		29,606
Other current liabilities	480		490		3,935
Total current liabilities	16,781		12,265		138,494
Long-term liabilities:
Long-term debt, excluding current installments	26,162		26,775		215,915
Liability for retirement benefits (note 6)	4,584		6,512		37,838
Deferred income taxes (note 5)	1,655		1,365		13,666
Other non-current liabilities	1,106		1,158		9,111
Total long-term liabilities	33,507		35,810		276,530
Total liabilities	50,288		48,075		415,024
Shareholders’ equity:
Capital stock
Common stock, no par value (1,100,000 thousands shares authorized and 541,869 thousands shares issued and outstanding)	34,281		34,281		282,920
Convertible preferred stock, no par value (300,000 thousands shares authorized, 270,934 thousand shares issued and outstanding) (note 1)	-		-		-
Capital surplus	32,354		32,354		267,021
Accumulated deficit	(63,897	)	(60,920	)	(527,351	)
Accumulated other comprehensive income	4,464		451		36,851
Total shareholders’ equity	7,202		6,166		59,441
Total liabilities and shareholders’ equity	57,490		54,241		474,465

See accompanying notes to the consolidated financial statements.

3

NEC TOKIN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FISCAL YEARS ENDED MARCH 31, 2015 AND 2014 AND TWO-MONTH PERIOD ENDED MARCH 31, 2013

	Millions of Yen						Thousands of U.S. Dollars (note 1)
	Year ended March 31, 2015		(Unaudited) Year ended March 31, 2014		(Unaudited –  note 1) Two-month period ended March 31, 2013		Year ended March 31, 2015
Net sales	53,572		50,766		7,583		442,124
Cost of sales	(42,552	)	(42,472	)	(6,745	)	(351,172	)
Gross profit	11,020		8,294		838		90,952
Selling, general and administrative expenses (note 8)	(9,536	)	(9,966	)	(1,428	)	(78,701	)
Operating income (loss)	1,484		(1,672	)	(590	)	12,251
Other income (expenses):
Interest income	31		27		5		260
Interest expense	(327	)	(337	)	(57	)	(2,699	)
Foreign currency exchange gain	812		752		64		6,705
Equity (income) losses from investments in affiliates	80		(3	)	(1	)	666
Loss on impairment of long-lived assets (note 7)	(25	)	(4,225	)	(353	)	(213	)
Natural disaster related settlement received from an insurance company (note 9)	-		-		587		0
Compensation for damage to customers	(36	)	(6	)	(74	)	(303	)
Gain on sale of long-lived assets (note 9)	15		2,146		4		132
Gain on sale of business (note 9)	554		-		-		4,579
Gain on transfer of plan assets (note 9)	371		-		-		3,063
Compensation received for damage	186		-		-		1,538
Costs for legal counsel	(1,314	)	-		-		(10,848	)
Costs for antitrust claims and settlements (note 12)	(3,587	)	-		-		(29,606	)
Restructuring charges (note 9)	(424	)	-		-		(3,502	)
Other	(33	)	(388	)	(112	)	(295	)
Other income (expenses), net	(3,697	)	(2,034	)	63		(30,523	)
Loss before income taxes	(2,213	)	(3,706	)	(527	)	(18,272	)
Income tax (expense) benefit (note 5):
Current	(564	)	(535	)	(42	)	(4,657	)
Deferred	(200	)	564		(117	)	(1,642	)
Total (provision for) benefit from income taxes	(764	)	29		(159	)	(6,299	)
Net loss	(2,977	)	(3,677	)	(686	)	(24,571	)
	Yen		Yen		Yen		U.S. Dollars (note 1)
Net loss per share (note 10)	(5.49)		(6.79)		(1.27)		(0.05)

See accompanying notes to the consolidated financial statements.

4

NEC TOKIN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FISCAL YEARS ENDED MARCH 31, 2015 AND 2014 AND TWO-MONTH PERIOD ENDED MARCH 31, 2013

	Millions of Yen
						Accumulated other comprehensive income (loss)
	Common stock	Convertible preferred stock	Capital surplus	Accumulated deficit		Unrealized gain on securities	Pension liabilities adjustment	Foreign currency translation adjustments	Total Shareholders’ equity
Balance at February 1, 2013 (Unaudited - note 1)	34,281	-	32,354	(56,557)		2	-	192	10,272
Net loss (Unaudited - note 1)	-	-	-	(686)		-	-	-	(686)
Other comprehensive income (Unaudited – note 1)	-	-	-	-		20	-	890	910
Balance at March 31, 2013 (Unaudited - note 1)	34,281	-	32,354	(57,243)		22	-	1,082	10,496
Balance at April 1, 2013 (Unaudited)	34,281	-	32,354	(57,243	)	22	-	1,082	10,496
Net loss (Unaudited)	-	-	-	(3,677	)	-	-	-	(3,677	)
Other comprehensive income (loss) (Unaudited)	-	-	-	-		9	(1,039)	377	(653	)
Balance at March 31, 2014 (Unaudited)	34,281	-	32,354	(60,920	)	31	(1,039)	1,459	6,166
Balance at April 1, 2014	34,281	-	32,354	(60,920	)	31	(1,039)	1,459	6,166
Net loss	-	-	-	(2,977	)	-	-	-	(2,977	)
Other comprehensive income	-	-	-	-		79	1,005	2,929	4,013
Balance at March 31, 2015	34,281	-	32,354	(63,897	)	110	(34)	4,388	7,202

	Thousands of U.S. Dollars (note 1)
						Accumulated other comprehensive income (loss)
	Common stock	Convertible preferred stock	Capital surplus	Accumulated deficit		Unrealized gain on securities	Pension liabilities adjustment	Foreign currency translation adjustments	Total Shareholders’ equity
Balance at April 1, 2014	282,920	-	267,021	(502,780)		264	(8,579)	12,042	50,888
Net loss	-	-	-	(24,571	)	-	-	-	(24,571	)
Other comprehensive income	-	-	-	-		655	8,293	24,176	33,124
Balance at March 31, 2015	282,920	-	267,021	(527,351	)	919	(286)	36,218	59,441

See accompanying notes to the consolidated financial statements.

5

NEC TOKIN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FISCAL YEARS ENDED MARCH 31, 2015 AND 2014 AND TWO-MONTH PERIOD ENDED MARCH 31, 2013

	Millions of Yen						Thousands of U.S. Dollars (note 1)
	Year ended March 31, 2015		(Unaudited) Year ended March 31, 2014		(Unaudited - note 1) Two-month period ended March 31, 2013		Year ended March 31, 2015
Cash flows from operating activities:
Loss before income taxes	(2,213	)	(3,706	)	(527	)	(18,272	)
Adjustments to reconcile loss before income taxes to net cash provided by operating activities:
Depreciation and amortization	5,204		5,646		874		42,951
Loss on impairment of long-lived assets	25		4,225		353		213
Equity (income) losses from investments in affiliates	(80	)	3		1		(666	)
Foreign currency exchange gain	(659	)	(283	)	(52	)	(5,444	)
Gain on sale of long-lived assets	(15	)	(2,146	)	(4	)	(132	)
Gain on sale of businesses	(554	)	-		-		(4,579	)
Income taxes paid	(656	)	(510	)	(3	)	(5,421	)
Changes in operating assets and liabilities:
Accounts and notes receivable, net	(141	)	(199	)	(208	)	(1,165	)
Inventories	(330	)	999		630		(2,725	)
Accounts and notes payable	(32	)	167		(676	)	(270	)
Liability for retirement benefits	(948	)	671		(115	)	(7,828	)
Accrued expenses	305		295		235		2,525
Other payable	8		3		(9	)	73
Estimated liabilities for antitrust claims and settlements	3,587		-		-		29,606
Other current liabilities	(104	)	509		219		(863	)
Other, net	196		295		190		1,656
Net cash provided by operating activities	3,593		5,969		908		29,659
Cash flows from investing activities:
Purchases of property, plant and equipment	(3,714	)	(4,263	)	(2,168	)	(30,654	)
Proceeds from sales of property, plant and equipment	26		2,171		38		221
Purchase of software	(162	)	(281	)	(53	)	(1,340	)
Proceeds from sales of securities	-		2		2		-
Deposits made to time deposit accounts	(77	)	(49	)	(20	)	(640	)
Withdrawals from time deposits	135		20		-		1,116
Proceeds from sales of businesses	1,075		-		-		8,879
Other, net	2		-		-		10
Net cash used in investing activities	(2,715	)	(2,400	)	(2,201	)	(22,408	)
Cash flows from financing activities:
Increase in short-term borrowings, net	350		-		-		2,889
Proceeds from issuance of long-term debt	-		759		746		-
Repayments of long-term debt	(1,269	)	(245	)	-		(10,476	)
Repayment of capital lease obligation	(103	)	(103	)	(18	)	(853	)
Net cash (used in) provided by financing activities	(1,022	)	411		728		(8,440	)
Effect of exchange rate changes on cash and cash equivalents	1,092		75		123		9,018
Net increase (decrease) in cash and cash equivalents	948		4,055		(442	)	7,829
Cash and cash equivalents at beginning of period	11,263		7,208		7,650		92,951
Cash and cash equivalents at end of period (note 11)	12,211		11,263		7,208		100,780

See accompanying notes to the consolidated financial statements.

6

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

1. Nature of Business and Basis of Presenting Consolidated Financial Statements

Nature of the Business:

NEC TOKIN Corporation (“the Company”) was established in Japan in 1938 and is engaged in production and distribution of tantalum capacitors, proadlizer, miniature relays, transmitting communication devices, IC cards and IC tags, magnetic devices, piezoelectric devices and sensors.

On March 12, 2012, the Company entered into a stock purchase agreement (“Stock Purchase Agreement”) with NEC Corporation (“NEC”) and KEMET Electronics Corporation (“KEC), a wholly-owned subsidiary of KEMET Corporation (“KEMET”) based in the United States of America (“U.S.”), to issue 276.4 million new shares of common stock and KEC acquired 51% of the common stock of the Company (which represents a 34% economic interest, as calculated based on the number of common shares held by KEC, directly and indirectly, in proportion to the aggregate number of common and preferred shares of the Company as of such date) in exchange for cash consideration of 50 million U.S. dollars. The transaction was completed on February 1, 2013.

As part of this Stock Purchase Agreement, the Company issued 270.9 million new non-voting convertible preferred stocks to NEC and NEC Capital Solutions Limited (“NECAP”) for no cash consideration.

In connection with the Stock Purchase Agreement, the Company entered into a Stockholders' Agreement with KEC and NEC, which restricts transfers of the Company's capital stock, provides certain tag-along and first refusal rights on transfer for KEC, restricts NEC's ability to convert the preferred stock of the Company, assigns certain management services to be provided by KEC and receives certain board representation rights. The Stockholders' Agreement also refers to an existing loan from NEC to the Company.

Concurrent with execution of the Stock Purchase Agreement and the Stockholders' Agreement, KEC entered into an option arrangement (the “Option Agreement”) with NEC, which was amended on August 29, 2014, whereby KEC has the right to purchase additional shares of the Company’s common stock from the Company for a purchase price of $50.0 million resulting in an economic interest of approximately 49% while maintaining ownership of 51% of the Company's common stock (the "First Call Option") by providing notice of the First Call Option between February 1, 2013 and April 30, 2015. Upon providing such First Call Option notice, but not before April 1, 2015, KEC could also have exercised a second option (the “Second Call Option”) to purchase all outstanding capital stock of the company from its stockholders, primarily NEC, for a purchase price based on a formula specified in the Option Agreement. Subsequent to March 31, 2015 the First and Second Call Options expired on April 30, 2015 without being exercised. From April 1, 2015 through May 31, 2018, NEC may require KEC to purchase all outstanding capital stock of the Company from its stockholders, primarily NEC (the "Put Option"). However, in the event that KEC issues new debt securities principally to refinance its outstanding 10.5% senior notes due 2018 and its currently outstanding credit agreement, including amounts to pay related fees and expenses and to use for general corporate purposes (“Refinancing Notes”), prior to NEC’s delivery of its notification of exercise of the Put Option, then the earliest date NEC may exercise the Put Option is automatically extended to the day immediately following the final scheduled maturity date of such Refinancing Notes, or in the event such Refinancing Notes are redeemed in full prior to such final scheduled maturity date, then on the day immediately following the date of such full redemption, but in any event beginning no later than November 1, 2019. If not previously exercised, the Put Option will expire on October 31, 2023.

The consolidated financial statements for the two-month period ended March 31, 2013 are unaudited and represents the Company’s financial position, results of operations and cash flows from the date of KEMET’s purchase transaction to March 31, 2013, the Company’s fiscal year end.

Basis for Presenting Consolidated Financial Statements:

The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in the Company Act of Japan and its related accounting regulations, and in conformity with accounting principles generally accepted in Japan (“Japanese GAAP”).

The accompanying consolidated financial statements have been reorganized and translated into English (with some expanded descriptions and the added inclusion of consolidated statements of cash flows) from the consolidated financial statements of the Company prepared in accordance with Japanese GAAP. Some supplementary information included in the statutory Japanese language consolidated financial statements, but not considered necessary for fair presentation, is not presented in the accompanying consolidated financial statements.

7

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

Currency translation into U.S. dollar

The consolidated financial statements are stated in Japanese yen, the currency of the country in which the Company is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts for the year ended March 31, 2015 are included solely for the convenience of readers and have been made at the rate of 121.17 yen to 1 U.S. dollar, the approximate rate of exchange rate at March 31, 2015. Such translations should not be construed as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate. Additionally, they are not intended to be computed or presented in accordance with generally accepted accounting principles in the United States for the translation of foreign currencies.

2. Summary of Significant Accounting Policies

(1) Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its 13 subsidiaries (collectively, “the Group”). All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Such investments include 3 affiliated companies.

(2) Business Combination

In December 2008, the ASBJ issued a revised accounting standard for business combinations, ASBJ Statement No. 21, “Accounting Standard for Business Combinations”. Major accounting changes under the revised accounting standard are as follows: (1) The revised standard requires accounting for business combinations only by the purchase method. As a result, the pooling of interests method is no longer allowed. (2) The previous accounting standard accounts for research and development costs to be charged to income as incurred. Under the revised standard, in-process research and development (IPR&D) acquired in a business combination is capitalized as an intangible asset. (3) The previous accounting standard accounts for a bargain purchase gain (negative goodwill) to be systematically amortized over a period not exceeding 20 years. Under the revised standard, the acquirer recognizes the bargain purchase gain in profit or loss immediately on the acquisition date after reassessing and confirming that all of the assets acquired and all of the liabilities assumed have been identified after a review of the procedures used in the purchase allocation. This standard was applicable to business combinations undertaken on or after April 1, 2010. The Company adopted this accounting standard effective from April 1, 2010.

(3) Cash Equivalents

Cash equivalents are short-term investments that are readily convertible into cash and exposed to insignificant risk of changes in value. Cash equivalents include time deposits, all of which mature or become due within three months of the date of acquisition. Refer to note 11 for reconciliation between “Cash on hand and in banks” as presented on the consolidated balance sheets and “Cash and cash equivalents” as presented on the statements of cash flows.

(4) Valuation of Inventories

Inventories are stated at the lower of cost or market, determined by the first-in, first-out method.

(5) Method of Depreciation and Amortization

(a) Property, plant and equipment

Property, plant and equipment are stated at acquisition cost. Depreciation is computed by using the straight line method based on the following estimated useful lives:

Buildings and structures 5 to 38 years

Machinery, equipment and vehicles 4 to 10 years

(b) Intangible assets

Intangible assets are being amortized using the straight line method and the range of useful lives for the Company’s intangible assets, software for internal use, ranged from 3 to 5 years.

(6) Impairment of Long-lived Assets

Accounting Standards for Impairment of Long-lived Assets require that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the book value of an asset or asset group may not be recoverable. The impairment

8

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

losses are recognized when the book value of an asset or asset group exceeds the sum of the undiscounted future cash flows expected to result from the continuing use and eventual disposition of the asset or asset group. The impairment losses are measured as the amount by which the book value of the asset exceeds its recoverable amount, which is the higher of the value in use or the net realizable value. Restoration of previously recognized impairment losses is prohibited.

(7) Investments in Securities

Marketable available-for-sale securities are reported at fair value with unrealized gains and losses, net of applicable taxes, reported in a separate component of equity.

Non-marketable available-for-sale securities are stated at cost determined by the moving-average cost method. For other than temporary declines in fair value, non-marketable available-for-sale securities are reduced to net realizable value by a charge to income.

Declines in fair value of available-for-sale securities are analyzed to determine if the decline is temporary or “other than temporary”. When other than temporary declines occur, the investment is reduced to its fair value and the amount of the reduction is reported as a loss. Any subsequent increases in other than temporary declines in fair value will not be realized until the securities are sold.

(8) Derivative Financial Instruments

Derivative financial instruments, other than those which meet the hedge criteria, are measured at fair value. Gain or loss on such derivative instruments is recognized in earnings.

(9) Hedge Accounting

(a) Method of hedge accounting

Receivables and payables denominated in foreign currencies hedged with foreign exchange forward contracts to fix the future cash flows can be translated using the forward rate. Under this method, an entity can omit evaluation of hedge effectiveness and fair value measurement of the hedging instrument. In addition, the exchange differences arising from the change in the spot rates between the transaction date and the date of the forward contract will be allocated to the period in which the forward contract was made. The remaining exchange differences arising from the difference between the spot rate and the forward rate at the date of the forward contract will be allocated to the period of the settlement.

(b) Hedging instruments and hedged items

Hedging instruments are foreign currency forward contracts. Hedged items are those that have risk of losses due to fluctuation in foreign currency exchange rates, and that fluctuation is avoided by fixing cash flow.

(c) Hedging policy

The objective of hedging policy is to manage the hedged items exposure to fluctuations in interest rates and foreign currency exchange rates on assets and liabilities.

(d) Method of assessing hedging instruments’ effectiveness

Hedging instruments’ effectiveness is assessed by comparing accumulated cash flow fluctuations from the hedged item and the hedging instrument during a contract period. However, an assessment of effectiveness will be omitted, if the principal terms of the hedging instruments and the hedged items, such as related notional amount and contract terms, are identical and the variability in cash flows is completely offset in a contract period.

9

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

(10) Method of Accounting for Significant Allowances and Accruals

(a) Allowance for doubtful accounts

The allowance for doubtful accounts is provided against potential losses on collections at an amount determined using a historical bad debt loss ratio with the addition of an amount individually estimated on the collectability of receivables that are expected to be uncollectible due to bad financial condition or insolvency of the debtor.

(b) Provision for bonuses

Provision for bonuses is calculated based on an estimated amount of future bonus payments attributable to employees’ services for the period.

(c) Liability for retirement benefits

On May 17, 2012, the ASBJ issued ASBJ Statement No. 26, “Accounting Standard for Retirement Benefits” and ASBJ Guidance No. 25, “Guidance on Accounting Standard for Retirement Benefits”.

Since the year ended March 31, 2014, actuarial gains and losses and past service costs that are yet to be recognized in profit or loss are recognized within shareholders’ equity (accumulated other comprehensive income, hereinafter, “AOCI”), after adjusting for tax effects, and the difference between retirement benefit obligations and plan assets shall be recognized as a liability (liability for retirement benefits) or asset (asset for retirement benefits).

Moreover, actuarial gains and losses and past service costs that arose in the current period and yet to be recognized in profit or loss shall be included in AOCI and actuarial gains and losses and past service costs that were recognized in other comprehensive income, hereinafter ‘‘OCI’’, in prior periods and then recognized in profit or loss in the current period shall be treated as reclassification adjustments. No retrospective application of this accounting standard to consolidated financial statements in prior periods is required.

The Company adopted the revised standard during the year ended March 31, 2014. Compared with the previous fiscal year, the changes in standards related to the liability for retirement benefits had caused an increase in liability by 1,039 million yen and a decrease in AOCI by 1,039 million yen as of March 31, 2014.

In addition to the changes described above, since the year ended March 31, 2015, the new accounting standard allows the choice of the method of attributing expected benefit to periods between the “Straight-line basis” and “Benefit formula basis”. The new accounting standard also revised the calculation method of the discount rate and requires that the discount rate reflect the expected timing of each benefit payment. Compared with the previous fiscal year, the changes in standards related to the method of attributing expected benefit to periods and the calculation method of the discount rate had no effect on the Company’s financial statements.

(11) Asset Retirement Obligations

In March 2008, the ASBJ issued ASBJ Statement No. 18, “Accounting Standard for Asset Retirement Obligations” and ASBJ Guidance No. 21, “Guidance on Accounting Standard for Asset Retirement Obligations”. The new standard and related implementation guidance require companies to recognize asset retirement obligations as liabilities and the corresponding asset retirement costs as tangible fixed assets.

(12) Legal Contingencies

The Company recognizes legal contingencies when the following criteria are met: (a) future outflows of cash and other resources are identified, (b) the outflows occur as a result of the events during current or past accounting periods, (c) it is probable that such outflows occur, and (d) the outflows are measurable with reliability.

(13) Revenue Recognition

Beginning April 1, 2013, the Company (and certain subsidiaries) changed their revenue recognition policy and revenue is recognized upon receipt of goods by customers. Prior to April 1, 2013, revenue is recognized upon the shipment of goods.

Such change is made aiming to converge with U.S. GAAP and IFRS which are adopted by overseas subsidiaries. The change is not applied retrospectively as the effect on prior financial statements as it was determined to be insignificant.

10

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

(14) Research and Development Cost

Research and development costs are charged to income as incurred.

(15) Accounting for Leases (Lessee Accounting)

Finance leases, for those in which the ownership of leased property is ultimately transferred to the Group at the end of the lease term, are accounted for using the same depreciation method applied to property, plant and equipment owned by the Group.

Finance leases, in which the ownership of leased property is not ultimately transferred to the lessee at the end of the lease term, are depreciated on the straight line method over the period of lease with no residual value. Any finance lease transactions for a lessee executed prior to the beginning of the year ended March 31, 2009, the first year of application of ASBJ Statement No. 13, “Accounting Standard for Lease Transactions”, where ownership of the leased asset is not transferred to the lessee are accounted for as operating lease transactions.

(16) Income Taxes

The provision for income taxes is computed based on the pretax income reported in the accompanying consolidated statement of operations. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of net operating loss carry forwards and temporary difference between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowance is provided to reduce deferred tax assets to an amount that is considered realizable.

(17) Accounting for Consumption Tax

Income and expenses are recorded net of consumption taxes.

(18) Recent Accounting Pronouncements under Japanese GAAP

On September 13, 2013, the revised ASBJ Statement No.21, “Accounting Standard for Business Combination” was issued with an effective date of April 1, 2015. Early adoption is allowed from fiscal years beginning after April 1, 2014. Major changes are as follows:

1. Changes in equity in a subsidiary without loss of control such as acquisition and disposal of subsidiaries’ equity and issuance of new shares by subsidiaries under the current effective statement are either accounted for as profit and loss transactions or goodwill (or negative goodwill) is recognized for step-acquisition transactions. Subsequent to the implementation of the revised statement, these transactions are accounted for as equity transactions and recognized as part of capital reserve.

2. Net profit is presented as the amount net of non-controlling interests’ share of profit (loss) under the current effective statement, while it will be presented at the gross amount (i.e. share of profit (loss) by non-controlling interest included) under the revised statement.

3. Expenses related to acquisition, such as advisory fees are included as part of the acquisition cost under the current statement, while all these costs will be expensed under the revised statement.

4. If purchase price allocation (“PPA”) is not finalized in the year of business combination, a provisional amount is recognized and any changes made to the provisional amount will be accounted for as extraordinary gain (loss) in the following financial year under the current effective statement. Subsequent to the implementation of the revised statement, financial information of the year of business combination will be restated to reflect the finalized PPA and is presented in the following year’s financial statements as comparative information.

11

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

3. Inventories

Inventories consist of the following as of March 31, 2015 and 2014:

	Millions of Yen		Thousands of U.S. Dollars (note 1)
	March 31, 2015	(Unaudited) March 31, 2014	March 31, 2015
Raw materials	1,611	1,448	13,301
Work in process	1,701	1,807	14,039
Finished goods	2,207	1,853	18,220
Supplies	336	260	2,762
Total	5,855	5,368	48,322

4. Related-Party Transactions

Transactions of the Group with related-parties for the years ended March 31, 2015 and 2014 and the two-month period ended March 31, 2013 are as follows:

	Millions of Yen			Thousands of U.S. Dollars (note 1)
	Year ended March 31, 2015	(Unaudited) Year ended March 31, 2014	(Unaudited - note 1) Two-month period ended March 31, 2013	Year ended March 31, 2015
Sales transactions with NT Sales Co., Ltd. (*)	6,151	6,657	1,083	50,765
Gain on Transfer of plan assets to NEC Energy Device Ltd.(note 9)	371	-	-	3,063

The balances due to or due from related-parties at March 31, 2015 and 2014 are as follows:

	Millions of Yen		Thousands of U.S. Dollars (note 1)
	March 31, 2015	(Unaudited) March 31, 2014	March 31, 2015
Long-term debt from NEC (**)	25,417	25,417	209,767
Accounts receivable to NT Sales Co., Ltd. (*)	489	667	4,042

* The Company sells parts and materials to NT Sales Co., Ltd., its equity-method affiliate, within ordinary course of business.

** The Company has unsecured long-term debt from NEC. The loans are made at terms and conditions determined with reference to current market rates and standards.

12

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

5. Income Taxes

Components of deferred tax assets and liabilities at March 31, 2015 and 2014 are as follows:

	Millions of Yen				Thousands of U.S. Dollars (note 1)
	March 31, 2015		(Unaudited) March 31, 2014		March 31, 2015
Deferred tax assets
Inventories	92		93		757
Provision for bonuses	279		328		2,305
Accrued expenses	152		181		1,255
Liability for retirement benefits	1,419		1,900		11,715
Property, plant and equipment	1,781		2,563		14,697
Investments in securities	422		464		3,483
Provision for proceedings	1,185		-		9,780
Net operating loss carry forwards	17,375		21,418		143,394
Other	295		324		2,433
Total gross deferred tax assets	23,000		27,271		189,819
Less: Valuation allowance	(22,713	)	(27,093	)	(187,449	)
Deferred tax assets	287		178		2,370
Deferred tax liabilities
Unrealized losses on lands	(324	)	(358	)	(2,677	)
Equity investments - planned distribution	(1,324	)	(1,004	)	(10,925	)
Other	(11	)	(3	)	(98	)
Deferred tax liabilities	(1,659	)	(1,365	)	(13,700	)
Net deferred tax liabilities	(1,372	)	(1,187	)	(11,330	)

Reconciliation between the income tax benefit that would result from applying statutory tax rate to pretax loss and the reported amount of income tax expense (benefit) for the years ended March 31, 2015 and 2014 and the two-month period ended March 31, 2013 are as follows:

	Millions of Yen						Thousands of U.S. Dollars (note 1)
	Year ended March 31, 2015		(Unaudited) Year ended March 31, 2014		(Unaudited –  note 1) Two-month period ended March 31, 2013		Year ended March 31, 2015
Computed “expected” tax benefit	(788	)	(1,407	)	(200	)	(6,503	)
Increase (decrease) in income taxes resulting from:
Nondeductible expenses	127		86		15		1,050
Change of valuation allowance	1,377		1,036		212		11,362
Foreign tax paid	-		-		59		-
Payment of transfer price	(51	)	88		16		(418	)
Foreign income tax differential	(370	)	675		(41	)	(3,058	)
Taxes on undistributed earnings	347		(565	)	14		2,860
Change in statutory tax rate	(60	)	37		34		(493	)
Other	182		21		50		1,499
Actual income tax expense (benefit)	764		(29	)	159		6,299

13

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

Amendments to the Japanese tax regulations were enacted into law on March 20, 2014 and March 31, 2015. As a result of these amendments, (1) the statutory income tax rate was reduced from approximately 40% to 38% effective from the fiscal year beginning April 1, 2012, (2) was reduced to approximately 35% effective from the fiscal year beginning April 1, 2014 and (3) was further reduced to approximately 33% effective from the fiscal year beginning April 1, 2015 with a further reduction to 32% effective from the fiscal year beginning April 1, 2016. Consequently, the statutory income tax rate utilized for deferred tax assets and liabilities expected to be settled or realized in the fiscal year ended March 31, 2015 is approximately 33% and for periods subsequent to March 31, 2015 is approximately 32%.

6. Liability for Retirement Benefits

The Group has several defined benefit plans and defined contribution plans. Defined benefit plans include the defined benefit pension plans and the lump-sum severance payment plans. Additional retirement benefits are paid in certain circumstances.

Retirement benefit obligations at March 31, 2015 and 2014 are as follows:

	Millions of Yen				Thousands of U.S. Dollars (note 1)
	March 31, 2015		(Unaudited) March 31, 2014		March 31, 2015
Projected benefit obligations	11,820		13,570		97,550
Plan assets	(7,236	)	(7,058	)	(59,712	)
Unfunded retirement benefit obligations	4,584		6,512		37,838
Liability for retirement benefits	4,584		6,512		37,838

Retirement benefit expenses for the years ended March 31, 2015 and 2014 and the two-month period ended March 31, 2013 are as follows:

	Millions of Yen						Thousands of U.S. Dollars (note 1)
	Year ended March 31, 2015		(Unaudited) Year ended March 31, 2014		(Unaudited - note 1) Two-month period ended March 31, 2013		Year ended March 31, 2015
Service cost	582		590		92		4,804
Interest cost	155		153		40		1,282
Expected return on plan assets	(178	)	(161	)	(28	)	(1,467	)
Amortization of transitional obligation	274		364		60		2,261
Amortization of actuarial gains and losses	227		285		34		1,875
Amortization of past service costs	(35	)	(35	)	(5	)	(287	)
Contributions paid for defined contribution pension plans	97		112		19		802
Retirement benefit expenses	1,122		1,308		212		9,270

14

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

Basis for calculation of retirement benefit obligations for the years ended March 31, 2015 and 2014 and the two-month period ended March 31, 2013 are as follows:

Allocation method for projected retirement benefit cost	Straight line method
Discount rate	1.1% (year ended March 2014: 1.1% (Unaudited), two-month period ended March 31, 2013: 1.1% (Unaudited - note 1))
Expected rate of return on plan assets	2.5%
Period for amortization of transitional obligation	15 years
Period for amortization of past service costs	15 years (Past service costs are amortized on a straight line basis over certain number of years within employees’ average remaining service periods as incurred)
Period for amortization of actuarial gains and losses	15 years (Actuarial gains and losses are amortized on a straight line basis over certain number of years within employees’ average remaining service periods, starting from the following year after incurred)

7. Loss on Impairment of Long-Lived Assets

Summary of assets or asset groups for which losses on impairment of long-lived assets were recognized for the years ended March 31, 2015 and 2014 and the two-month period ended March 31, 2013 are as follows:

(a) Long lived assets - Idle assets

The Company treats fixed assets comprised of land, buildings, machinery and equipment located at Sendai, Japan as idle assets because no future usage is expected due to obsolescence. Recoverable amounts for idle assets were measured based on net realizable value. Land values are measured based on real estate appraisals, and machinery and equipment are measured based on market values.

For the years ended March 31, 2015 and 2014 and the two-month period ended March 31, 2013, the Company recognized impairment charges of 25 million yen (213 thousand U.S. dollars, note 1), 70 million yen (unaudited) and 353 million yen (unaudited - note 1), respectively.

(b) Long lived assets - Assets related to the capacitor business

For the year ended March 31, 2014, the Company determined that impairment assessments were required in the capacitor business due to a sharp decline and changing landscape in the personal computer markets.

Recoverable amounts for related assets are measured based on net realizable value. Land and buildings are measured based on third party real estate appraisals, and other property, plant and equipment mainly comprised of machinery are measured based on the income approach. As a result of the assessment, the Company recognized an impairment charge of 4,155 million yen (unaudited) related to its capacitor business. The impairment loss was included in other expenses in the accompanying consolidated statements of operations for the year ended March 31, 2014.

15

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

8. Research and Development Expenses

Research and development expenses for the years ended March 31, 2015 and 2014 and the two-month period ended March 31, 2013 are as follows:

	Millions of Yen			Thousands of U.S. Dollars (note 1)
	Year ended March 31, 2015	(Unaudited) Year ended March 31, 2014	(Unaudited - note 1) Two-month period ended March 31, 2013	Year ended March 31, 2015
Research and development expenses	930	1,041	183	7,679

9. Other Income (Expenses)

The major components of other income (expense) are as follows:

(1) Natural disaster related settlement received from an insurance company

NEC Tokin Electronics (Thailand) Co., Ltd., a manufacturing subsidiary in Thailand suffered significant damages to property, plant and equipment and inventories from flooding in October 2011. Natural disaster related settlement received from insurance company of 587 million yen (unaudited - note 1) for the two-month period ended March 31, 2013 was the remaining insurance proceeds on the flood related losses.

(2) Gain on sale of long-lived assets

Gain on sales of long-lived assets of 2,146 million yen (unaudited) for the year ended March 31, 2014 was mainly related to the sale of a portion of land located at the Company’s Sendai office.

(3) Gain on sale of business

The access device business was divested in July 2014, resulted in gain on sales of 554 million yen (4,579 thousand U.S. dollars, note 1) for the year ended March 31, 2015.

(4) Gain on transfer of plan assets

Part of plan assets of the Company was transferred to NEC Energy Device, Ltd., which was a subsidiary of the Company and sold to NEC in April 2010. The gain of 371 million yen (3,063 thousand U.S. dollars, note 1) for the year ended March 31, 2015 resulted from the actuarial calculation of the plan assets at transfer date.

(5) Restructuring charges

For the year ended March 31, 2015, the Company conducted business restructuring, and recorded losses of 395 million yen (3,260 thousand U.S. dollars, note 1) in relation to severance benefits and 29 million yen (239 thousand U.S. dollars, note 1) in relation to job-placement assistance.

10. Net loss per Share

Net loss per share is computed based on the weighted-average number of common shares outstanding during the year. The Company issued convertible preferred stock on March 12, 2012, which is convertible into 270,934 thousand shares of common stock. The diluted net loss per share is not presented as it is anti-dilutive due to the losses incurred for the years ended March 31, 2015 and 2014 and for the two-month period ended March 31, 2013.

11. Supplemental Information to Consolidated Statements of Cash Flows

Cash and cash equivalents at March 31, 2015, 2014 and 2013 for consolidated statements of cash flow purposes are reconciled to the amounts reported in the consolidated balance sheets as follows:

	Millions of Yen			Thousands of U.S. Dollars (note 1)
	March 31, 2015	(Unaudited) March 31, 2014	(Unaudited - note 1) March 31, 2013	March 31, 2015
Cash on hand and in banks	12,211	11,319	7,228	100,780
Time deposits with maturities of more than three months	-	(56)	(20)	-
Cash and cash equivalents	12,211	11,263	7,208	100,780

16

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

12. Contingencies - Legal Proceeding

Beginning March 2014, the Company and certain subsidiaries have been subject to inquiries and investigative proceedings by the responsible authorities of the People’s Republic of China, the United States of America, European Commission, Japan, South Korea, Taiwan, Singapore and Brazil in relation to potential alleged anti-competitive behavior for capacitor products. Estimated losses of approximately 3.6 billion yen were accrued for the year ended March 31, 2015. Except as otherwise stated, the Company was unable to estimate the range of possible losses, if any, because those proceedings are still ongoing and the Company does not currently have sufficient information to be able to estimate the possible losses. Additionally, the actual amounts of payments ultimately made as these investigations are completed and settled may be different from the amounts accrued.

As a result of these proceedings, various civil and class action lawsuits have been filed in the United States and Canada. The Company is unable to estimate the losses or a range of losses, or determine probable or reasonable amounts as they are at very early stage, and therefore the Company has not recorded or accrued any amount related to these lawsuits.

The final resolution of those proceedings and lawsuits could result in significant additional liabilities and could have a material adverse effect on the Company’s business, results of operations and financial condition.

17

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

13. Significant Differences Between Japanese GAAP and U.S. Generally Accepted Accounting Principles (“U.S. GAAP”)

Japanese GAAP differs in certain respects from U.S. GAAP. The significant differences between Japanese GAAP and U.S. GAAP as they pertain to the Group are described below, which also includes reconciliations of net loss and shareholders’ equity under Japanese GAAP with the corresponding amounts under U.S. GAAP, along with a summary consolidated statement of comprehensive income (loss), a summary consolidated balance sheet, and a summary consolidated statement of changes in shareholders’ equity under U.S. GAAP.

Net loss reconciliation

		Millions of Yen						Thousands of U.S. Dollars  (note 1)
	note	Year ended March 31, 2015		(Unaudited) Year ended March 31, 2014		(Unaudited – note 1) Two-month period ended March 31, 2013		Year ended March 31, 2015
Net loss under Japanese GAAP		(2,977	)	(3,677	)	(686	)	(24,571	)
U.S. GAAP adjustments:
Depreciation of property, plant and equipment	(b)	(198	)	265		7		(1,638	)
Impairment and depreciation adjustments on idle assets	(c)	(15	)	(319	)	377		(124	)
Impairment loss related to capacitor business	(d)	-		(1,691	)	-		-
Liability for retirement benefits	(e)	(7	)	632		93		(60	)
Accrued vacation	(f)	42		10		28		347
Other	(g)	(66	)	187		(7	)	(538	)
Income tax adjustments	(h)	338		151		33		2,792
Net loss under U.S. GAAP		(2,883	)	(4,442	)	(155	)	(23,792	)
Net loss from continuing operations		(3,190	)	(4,606	)	(233	)	(26,332	)
Net income from discontinued operations	(i)	307		164		78		2,540
Certain other income (expenses) under Japanese GAAP are classified as operating income (loss) under U.S. GAAP.
Net loss per share attributable to the Company’s common shareholders under U.S. GAAP
	note	Year ended March 31, 2015		(Unaudited) Year ended March 31, 2014		(Unaudited – note 1) Two-month period ended March 31, 2013		Year ended March 31, 2015
Weighted average shares outstanding - basic and diluted (in thousands)		541,869		541,869		541,869		541,869
		Yen (per share)						U.S. Dollars (note 1)
Basic
Net loss from continuing operations		(5.89	)	(8.50	)	(0.43	)	(0.05	)
Net income from discontinued operations	(i)	0.57		0.30		0.14		0.00
Net loss		(5.32	)	(8.20	)	(0.29	)	(0.05	)
Diluted
Net loss from continuing operations		(5.89	)	(8.50	)	(0.43	)	(0.05	)
Net income from discontinued operations	(i)	0.57		0.30		0.14		0.00
Net loss		(5.32	)	(8.20	)	(0.29	)	(0.05	)

The potential common stock upon conversion of the convertible preferred stock was excluded from the computation of diluted net loss per share, as including such potentially dilutive shares would have an anti-dilutive effect to the net loss per share as the Group recorded a net loss for the fiscal years ended March 31, 2015 and 2014 and the two-month period ended March 31, 2013. Such convertible preferred stock is considered a participating security under U.S. GAAP. However, because there is no contractual obligation for the preferred shareholders to fund the losses of the Company, such losses have not been allocated to the preferred shareholders for purposes of determining basic net loss per share attributable to common shareholders.

18

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

Summary U.S. GAAP consolidated statements of comprehensive income (loss)

	Millions of Yen						Thousands of U.S. Dollars (note 1)
	Year ended March 31, 2015		(Unaudited) Year ended March 31, 2014		(Unaudited – note 1) Two-month period ended March 31, 2013		Year ended March 31, 2015
Net loss under U.S. GAAP	(2,883	)	(4,442	)	(155	)	(23,792	)
Other comprehensive income (loss):
Unrealized gain on securities, net of tax effect of 28 million yen (227 thousand U.S. dollars, note 1) in 2015, none in 2014 and 0 million yen in 2013	52		9		20		428
Liability for retirement benefits, net of tax effect of 131million yen (1,082 thousand U.S. dollars, note 1) in 2015 and none in 2014 and 2013	207		527		(318	)	1,704
Foreign currency translation, net of tax effect of 184 million yen (1,521 thousand U.S. dollars, note 1) in 2015, none in 2014 and 48 million yen in 2013	2,617		356		879		21,599
Comprehensive (loss) income under U.S. GAAP	(7	)	(3,550	)	426		(61	)

Shareholders’ equity reconciliation

		Millions of Yen				Thousands of U.S. Dollars (note 1)
	note	March 31, 2015		(Unaudited) March 31, 2014		March 31, 2015
Shareholders’ equity under Japanese GAAP		7,202		6,166		59,441
U.S. GAAP adjustments:
Business combination adjustments	(a)	1,629		1,471		13,447
Accumulated depreciation	(b)	1,233		1,448		10,172
Carrying value adjustments due to reversal of impairment loss on idle long-lived assets	(c)	960		974		7,920
Carrying value adjustments due to impairment loss on long-lived assets related to capacitor business	(d)	(1,945	)	(1,691	)	(16,052	)
Liability for retirement benefits	(e)	(1,552	)	(874	)	(12,798	)
Accrued vacation	(f)	(217	)	(259	)	(1,789	)
Other	(g)	136		191		1,109
Income tax adjustments	(h)	(628	)	(605	)	(5,184	)
Shareholders’ equity under U.S. GAAP		6,818		6,821		56,266

Summary U.S. GAAP consolidated statements of changes in shareholders’ equity

	Millions of Yen					Thousands of U.S. Dollars (note 1)
	Year ended March 31, 2015		(Unaudited) Year ended March 31, 2014		(Unaudited – note 1) Two-month period ended March 31, 2013	Year ended March 31, 2015
Shareholders’ equity at beginning of year/period	6,821		10,371		9,945	56,291
Total comprehensive (loss) income	(7	)	(3,550	)	426	(61	)
Increase in capital surplus	4		-		-	36
Shareholders’ equity at end of year/period	6,818		6,821		10,371	56,266

19

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

Summary U.S. GAAP Consolidated Balance Sheets

	Millions of Yen				Thousands of U.S. Dollars (note 1)
	March 31, 2015		(Unaudited) March 31, 2014		March 31, 2015
Assets
Current assets:
Cash and cash equivalents	12,211		11,263		100,780
Accounts and notes receivable, net	7,880		7,280		65,029
Inventories	5,899		5,268		48,685
Assets held for sale (note (i))	-		446		-
Other current assets	797		1,011		6,572
Total current assets	26,787		25,268		221,066
Property, plant and equipment, net (notes (b), (c) and (d))	29,329		27,950		242,048
Total investments and other non-current assets	3,485		3,373		28,762
Total assets	59,601		56,591		491,876
Liabilities and shareholders’ equity
Current liabilities:
Short term borrowings and current installments of long-term debt	3,541		3,164		29,227
Other current liabilities	13,661		9,327		112,736
Total current liabilities	17,202		12,491		141,963
Long-term debt, excluding current installments	26,162		26,776		215,915
Liability for retirement benefits (note (e))	6,136		7,386		50,636
Deferred income tax liabilities (note (h))	2,179		1,961		17,984
Other non-current liabilities	1,104		1,156		9,112
Total liabilities	52,783		49,770		435,610
Shareholders’ equity:
Capital stock	34,281		34,281		282,920
Capital surplus (note (j))	64,577		64,573		532,946
Accumulated deficit (note (j))	(95,028	)	(92,145	)	(784,252	)
Accumulated other comprehensive income	2,988		112		24,652
Total shareholders’ equity	6,818		6,821		56,266
Commitments and Contingencies
Total liabilities and shareholders’ equity	59,601		56,591		491,876

Cash flows reconciliation

There are no material differences between Japanese GAAP and U.S. GAAP for purposes of presenting or reconciling the consolidated statements of cash flows.

20

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

Notes:

(a) Business combination adjustments

Historically, the Company entered into various business combinations and accounted for such transactions in accordance with common business practices dictated by the Commercial Code of Japan, where acquired assets and liabilities were not required to be fair valued. For U.S. GAAP purposes, the Company retroactively applied a purchase price allocation at the time of each transaction to reflect the fair value adjustments to acquired assets and liabilities, including the determination of identifiable intangible assets and goodwill because acquired assets and liabilities were required to be recorded at fair value under ASC805. Except for the acquired value of the land (including the effects of changes in foreign exchange rates), impact of such fair value adjustments to acquired assets, intangible assets, liabilities and goodwill were subsequently diminished through depreciation and amortization, or disposition and impairment, resulting in no adjustment to the consolidated balance sheet as of March 31, 2015 and 2014.

(b) Depreciation of property, plant and equipment

Under Japanese GAAP, the Company depreciated property and equipment over the useful life of each asset under the declining-balance method through March 31, 2011. The Company changed its depreciation method to the straight-line method on a prospective basis effective April 1, 2011.

For U.S. GAAP, ASC 360, “Property, Plant and Equipment” provides that the cost of property and equipment be spread over the expected useful life of the facility in such a way as to allocate it as equitably as possible to the periods during which services are obtained from its use. The Company has determined that the straight-line method should be used. Therefore, GAAP difference exists for the periods prior to April 1, 2011.

The following table presents a reconciliation of property, plant and equipment from Japanese GAAP to U.S. GAAP as of March 31, 2015 and 2014:

	Millions of Yen								Thousands of U.S. Dollars (note 1)
	March 31, 2015				(Unaudited) March 31, 2014				March 31, 2015
	Gross carrying amount		Accumulated depreciation		Gross carrying amount		Accumulated depreciation		Gross carrying amount		Accumulated depreciation
Balance under Japanese GAAP	96,770		(69,319	)	92,585		(66,527	)	798,636		(572,083	)
U.S. GAAP adjustments:
Change in depreciation	(8	)	1,148		(39	)	1,386		(80	)	9,469
Impairment and depreciation adjustments related to idle assets (note (c))	1,185		(226	)	1,200		(226	)	9,782		(1,862	)
Step up in asset value related to purchase price allocation from historical business combination (note (a))	1,629		-		1,471		-		13,447		-
Impairment loss related to capacitor business (note (d))	(1,945	)	-		(1,691	)	-		(16,052	)	-
Reclassification to assets held for sale (note (i))	-		-		(3,576	)	3,266		-		-
Other	203		(108	)	203		(102	)	1,678		(887	)
Total adjustments	1,064		814		(2,432	)	4,324		8,775		6,720
Balance under U.S. GAAP	97,834		(68,505	)	90,153		(62,203	)	807,411		(565,363	)

(c) Impairment and depreciation adjustments on idle assets

Under Japanese GAAP, the Company groups assets for business use based on business units. In addition, the Company groups idle assets, including temporarily idle assets where no future use is expected, into a separate asset group.

Under U.S. GAAP, for purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the smallest unit of which identifiable cash flows can be determined. Further, under U.S. GAAP, long-lived asset that has been temporarily idle shall not be accounted for as if abandoned.

21

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

Therefore, the impairment losses related to the Company’s temporarily idle assets which had been recognized under Japanese GAAP is reversed under U.S. GAAP. When the temporarily idled assets are grouped with other assets and liabilities at the smallest unit of which identifiable cash flows can be determined, as required under U.S. GAAP, the carrying amount of its temporarily idled assets are deemed recoverable.

Moreover, depreciation on idle assets is recognized after the reversal of related impairment loss. Depreciation expense of 377 million yen (unaudited) was recognized under U.S. GAAP for the year ended March 31, 2014.

(d) Impairment loss related to capacitor business

Since it was determined that the carrying amounts of long-lived assets related to the capacitor business are not recoverable, impairment losses were measured and recognized as the amount by which the carrying amounts exceeded fair value.

Under both U.S. GAAP and Japanese GAAP, discounted cash flows were used to determine fair value. However, the carrying amounts under U.S. GAAP were higher than under Japanese GAAP due to differences in depreciation methods and the fair value adjustments related to purchase price allocation in the historical business combination under U.S. GAAP. Further, impairment losses were recognized as other expenses under Japanese GAAP while recognized as selling, general and administrative expenses under U.S. GAAP.

(e) Liability for retirement benefits

Under U.S. GAAP, the differences between the fair value of the plan assets and the projected benefit obligation of pension or post retirement plans are required to be recognized on the balance sheet. Actuarial gains or losses are permitted to be either recorded as gains or losses as incurred or deferred through the use of the corridor approach, or in any systematic method that results in earlier recognition than the corridor approach.

Prior to March 31, 2014, under Japanese GAAP, the differences between the fair value of the plan assets and the projected benefit obligation of pension or post retirement plans were not required to be recognized on the balance sheet. Actuarial gains or losses were recognized immediately or allocated over a certain number of years within the average remaining service period starting from the period in which they were incurred or a period after. Use of the corridor approach was not permitted. As of March 31, 2014, the Company adopted the revised accounting standard, as described in note 2(10)(c), and the differences between the fair value of the plan assets and the projected benefit obligation of pension or post retirement plans were recognized on the consolidated balance sheet as described in note 6.

The basis for actuarial determination of projected retirement benefit obligations (PBO), such as allocation method for projected retirement benefit cost and discount rate, are different between Japanese GAAP and U.S. GAAP, which has been adjusted accordingly.

The following represent the most relevant differences between Japanese GAAP and U.S. GAAP in connection with assumptions used to calculate the pension liability:

(1) Under Japanese GAAP, it is acceptable to select the same discount rate as the prior years unless there would not be a material difference between the projected benefit obligations estimated using the rate as of the balance sheet date and the one estimated using the prior year’s rate. However, there is no such exception under U.S. GAAP.

(2) Under Japanese GAAP, it is allowed to choose the method of attributing expected benefit to periods between the Straight-line basis and Benefit formula basis. However, only benefit formula method is permitted under U.S. GAAP.

(f) Accrued vacation

Under U.S. GAAP, an employer shall accrue a liability for employees’ compensation for future absences, such as paid vacation, if certain conditions are met. Such liabilities are accrued in the periods in which the benefits are earned. Japanese GAAP does not specifically require a company to accrue a liability for future compensated absences.

(g) Other

Others included in the net loss and shareholders’ equity reconciliations consist of U.S. GAAP adjustments related to inventory valuation, allowance for doubtful accounts and timing difference for recognition of certain accruals.

22

NEC TOKIN CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015, 2014 AND 2013

(h) Income tax adjustments

Intraperiod tax allocation

U.S. GAAP requires total income tax expense or benefit for a period be allocated to different components of comprehensive income and shareholders' equity, including continuing operations, discontinued operations, extraordinary items, each component of other comprehensive income, and items charged or credited directly to shareholders' equity. All components are considered in determining the tax benefit of a loss from continuing operations. There is no similar or equivalent guidance under Japanese GAAP.

Deferred taxes on undistributed earnings of investees accounted for under the equity method

Under Japanese GAAP, with respect to profits related to investments in equity method investees, deferred taxes are not recognized except when a parent company plans recovery through dividend distributions unless the parent company has a clear intention to sell the investment in the subsidiary in the foreseeable future. Under U.S. GAAP, deferred taxes are generally recognized on temporary differences related to investments in investees accounted for under the equity method except for corporate joint ventures that are essentially permanent in duration. The amounts of deferred tax liabilities on undistributed earnings amount to 91 million yen (749 thousand U.S. dollars, note 1) and 150 million yen as of March 31, 2015 and 2014, respectively.

(i) Discontinued operations

On March 31, 2014, the Company reached an agreement with a third party to divest the access device business. After a thorough review of the business portfolio, the Company no longer believed that the access device business is aligned with its long-term strategy. The divestiture was completed in July 2014.

The divestiture of the access device business met the conditions of discontinued operations under U.S. GAAP, therefore, the related assets, including inventories amounting to 136 million yen and property, plant and equipment amounting to 310 million yen are classified as assets held for sale in the summary consolidated U.S. GAAP balance sheets as of March 31, 2014, and the results of discontinued operation for the years ended March 31, 2015 and 2014 are presented as a separate line item from the net loss from continued operations in the net loss reconciliation table. Under Japanese GAAP, there are no classification requirement between discontinued operations and continuing operations.

(j) Sale of Subsidiary to NEC Corporation

On April 1, 2010, NEC Energy Device, Ltd, a wholly owned subsidiary of the Company, was sold to NEC Corporation. The excess of the sale price over carrying value of the net assets sold was accounted for as a gain on sale in the Company’s consolidated statement of operations under Japanese GAAP. Under U.S. GAAP, no gain is recognized. Consequently, capital surplus and the accumulated deficit reported in the summary consolidated balance sheets under U.S. GAAP are greater than those in the consolidated balance sheets under Japanese GAAP by 5,262 million yen.

23

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Stock-Based Compensation (Tables)

12 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of major components of stock-based compensation expense

The major components of stock-based compensation expense are as follows (amounts in thousands):

	Fiscal Year Ended March 31, 2015						Fiscal Year Ended March 31, 2014						Fiscal Year Ended March 31, 2013
	Stock Options		Restricted Stock		LTIPs		Stock Options		Restricted Stock		LTIPs		Stock Options		Restricted Stock		LTIPs
Cost of sales	$	233	$	269	$	1,075	$	421	$	62	$	523	$	710	$	445	$	356
Selling, general and administrative expenses	306		787		1,547		413		580		712		872		1,303		725
Research and development	13		3		279		5		—		193		58		—		130
	$	552	$	1,059	$	2,901	$	839	$	642	$	1,428	$	1,640	$	1,748	$	1,211

Schedule of employee stock option activity

Employee stock option activity for fiscal year 2015 is as follows (amounts in thousands, except exercise price, fair value and contractual life):

	Options		Weighted- Average Exercise Price
Outstanding at March 31, 2014	1,651		$	9.15
Granted	—		—
Exercised	(6	)	4.33
Forfeited	(53	)	6.20
Expired	(141	)	17.15
Outstanding at March 31, 2015	1,451		8.49
Exercisable at March 31, 2015	1,146		$	9.33
Remaining weighted average contractual life of options exercisable (years)			5.2
Remaining weighted average contractual life of options outstanding (years)			5.8

Summary of the weighted average assumptions used in the Black-Scholes valuation model to value stock option grants

The following table summarizes the weighted average assumptions used in the Black-Scholes valuation model to value stock option grants:

	Fiscal Years Ended March 31,
	2015	2014		2013
Assumptions:
Expected volatility	N/A	59.8	%	70.9	%
Risk-free interest rate	N/A	1.0	%	0.5	%
Expected option lives in years	N/A	4.0		4.0
Dividend yield	N/A	—		—

Schedule of restricted stock activity

Restricted stock unit activity for fiscal year 2015 is as follows (amounts in thousands except fair value):

	Shares		Weighted- average Fair Value on Grant Date
Non-vested restricted stock at March 31, 2014	308		$	6.62
Granted	859		4.12
Vested	(150	)	5.63
Forfeited	(17	)	9.19
Non-vested restricted stock at March 31, 2015	1,000		4.57

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Debt - Revolving Line of Credit Narrative (Details)	12 Months Ended				0 Months Ended				12 Months Ended							12 Months Ended		12 Months Ended											12 Months Ended		0 Months Ended					12 Months Ended			12 Months Ended
	Mar. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)	Mar. 31, 2013 USD ($)	Oct. 08, 2012 OEM USD ($)	Sep. 27, 2013 Foreign Line of Credit [Member]	Mar. 31, 2015 Foreign Line of Credit [Member] USD ($)	Mar. 31, 2014 Foreign Line of Credit [Member] USD ($)	Sep. 30, 2010 Foreign Line of Credit [Member] USD ($)	Mar. 31, 2015 Foreign Line of Credit [Member] Base Rate	Mar. 31, 2014 Foreign Line of Credit [Member] Base Rate	Mar. 31, 2015 Foreign Line of Credit [Member] Minimum LIBOR	Mar. 31, 2015 Foreign Line of Credit [Member] Minimum Base Rate	Mar. 31, 2015 Foreign Line of Credit [Member] Maximum LIBOR	Mar. 31, 2015 Foreign Line of Credit [Member] Maximum Base Rate	Sep. 30, 2010 Foreign Line of Credit [Member] KEMET Singapore	Mar. 31, 2015 Domestic Line of Credit [Member] USD ($)	Mar. 31, 2014 Domestic Line of Credit [Member] USD ($)	Mar. 31, 2015 Domestic Line of Credit [Member] Base Rate	Mar. 31, 2014 Domestic Line of Credit [Member] Base Rate	Mar. 31, 2015 Domestic Line of Credit [Member] Minimum LIBOR	Mar. 31, 2015 Domestic Line of Credit [Member] Minimum Base Rate	Mar. 31, 2015 Domestic Line of Credit [Member] Maximum LIBOR	Mar. 31, 2015 Domestic Line of Credit [Member] Maximum Base Rate	Sep. 30, 2010 Domestic Line of Credit [Member] KEC USD ($)	Mar. 31, 2014 Letter of Credit Two USD ($)	Mar. 31, 2014 Letter of Credit Two EUR (€)	Mar. 31, 2014 Letter of Credit Three [Member] USD ($)	Mar. 31, 2014 Letter of Credit Three [Member] EUR (€)	Mar. 31, 2015 Letter of Credit One USD ($)	Mar. 31, 2014 Letter of Credit One USD ($)	Apr. 03, 2012 10.5% Senior Notes USD ($)	Mar. 27, 2012 10.5% Senior Notes USD ($)	May 05, 2010 10.5% Senior Notes USD ($)	Mar. 31, 2015 10.5% Senior Notes USD ($)	Mar. 31, 2014 10.5% Senior Notes USD ($)	Mar. 31, 2015 Revolving Credit Facility [Member] USD ($)	Mar. 31, 2014 Revolving Credit Facility [Member] USD ($) letters_of_credit	Sep. 30, 2010 Revolving Credit Facility [Member] USD ($)	Mar. 31, 2015 Revolving Credit Facility [Member] Greater than 33.3% and less than 66.6%	Mar. 31, 2015 Revolving Credit Facility [Member] Greater than or equal to 66.6%	Mar. 31, 2015 Revolving Credit Facility [Member] LIBOR	Mar. 31, 2015 Revolving Credit Facility [Member] Maximum Greater than 33.3% and less than 66.6%	Mar. 31, 2015 Revolving Credit Facility [Member] Maximum Greater than or equal to 66.6%	Mar. 31, 2015 Revolving Credit Facility [Member] KEMET Singapore
Debt Instrument [Line Items]
Maximum borrowing capacity								$ 30,000,000.0																												$ 75,000,000		$ 50,000,000.0
Line of Credit Facility, Current Borrowing Capacity																																						60,000,000
Borrowing base component one, percentage of borrower's accounts receivable that satisfy certain eligibility criteria															85.00%									85.00%
Borrowing base component two, fixed amount for determining second component for borrowing base																								6,000,000
Borrowing base component two, percentage of net book value of inventory of borrower that satisfies certain eligibility criteria																								40.00%
Borrowing base component three, percentage of net orderly liquidation percentage of the appraised value of inventory that satisfies certain eligibility criteria																								85.00%
Borrowing base component three, fixed amount for determining second component for borrowing base																								5,100,000
Borrowing base component three, percentage of net orderly liquidation percentage of the appraised value of equipment that satisfies certain eligibility criteria																								80.00%
Borrowing base component three, order liquidation reduction percentage																								0.05%
Spread on variable rate basis (as a percent)									2.75%	3.75%	2.25%	1.25%	2.75%	1.75%				1.50%	2.50%	2.00%	1.00%	2.50%	1.50%																		1.00%
Unused line fee (as a percent)																																							0.50%	0.375%
Average daily balance as percentage of total revolving commitment																																										50.00%	50.00%
Stated interest rate (as a percent)									3.13%	0.00%								4.75%	5.75%														10.50%	10.50%	10.50%
Cash Dominion Trigger Event, Number of days Considered																5 days																				5 days
Cash Dominion Trigger Event, Availability under credit facility (as a percent)																																				12.50%
Cash Dominion Trigger Event, Availability under credit facility																3,750,000																				7,500,000
Percentage of assets pledged as collateral																																												100.00%
Fixed charge coverage ratio																																				1.0
Consecutive period of non occurrence of any condition to maintain fixed charge coverage ratio																																				45 days
Required aggregate revolver commitments to maintain fixed charge coverage ratio (as a percent)																																				12.50%
Required aggregate revolver commitments to maintain fixed charge coverage ratio																3,750,000																				7,500,000
Debt issuance cost, net of amortization																																		4,100,000	5,400,000	300,000	200,000
Proceeds from Issuance of Debt																													33,400,000	18,400,000	15,000,000	110,000,000	230,000,000
Line of Credit Facility, Fair Value of Amount Outstanding						12,000,000	12,000,000									21,500,000	6,400,000
Effective interest rate (as a percent)																																		10.30%
Debt instrument term					90 days
Document Period End Date	Mar. 31, 2015
Repayments of line of credit	27,342,000	2,551,000	0																										27,300,000
Credit facility, remaining borrowing capacity																													13,400,000									15,000,000
Amount of irrevocable standby letter of credit delivered				$ 16,000,000																					$ 1,200,000	€ 1,100,000	$ 700,000	€ 700,000
Number of Letters of Credit																																					2

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Organization and Significant Accounting Policies (Details 2) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Accumulated other comprehensive income (loss)
Other comprehensive income (loss)	$ (46,980,000)	$ 10,490,000	$ (4,326,000)
Other Comprehensive Income, Other, Net of Tax	(241,000)	111,000
Balance at the beginning of the period	18,184,000	7,694,000
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(47,221,000)	10,379,000
Balance at the end of the period	(28,796,000)	18,184,000	7,694,000
Tax effect of accumulated other comprehensive income (loss)	2,300,000	2,200,000
Document Period End Date	Mar. 31, 2015
Other Comprehensive Income (Loss), Tax		(300,000)
Foreign currency translation gains (losses), net of tax
Accumulated other comprehensive income (loss)
Other comprehensive income (loss)	(35,467,000)	9,797,000
Other Comprehensive Income, Other, Net of Tax	0	0
Balance at the beginning of the period	23,335,000	13,538,000
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax		9,797,000
Balance at the end of the period	(12,132,000)	23,335,000
Defined benefit post-retirement plan adjustments
Accumulated other comprehensive income (loss)
Other comprehensive income (loss)	(305,000)	354,000
Other Comprehensive Income, Other, Net of Tax	186,000	260,000
Balance at the beginning of the period	1,464,000	1,818,000
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(119,000)	(94,000)
Balance at the end of the period	1,159,000	1,464,000
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated other comprehensive income (loss)
Other comprehensive income (loss)	(12,977,000)	(276,000)
Other Comprehensive Income, Other, Net of Tax	(427,000)	(371,000)
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	(276,000)	1,900,000
Balance at the beginning of the period	(7,386,000)	(7,662,000)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(13,404,000)	(95,000)
Balance at the end of the period	(20,363,000)	(7,386,000)	(7,662,000)
Defined Benefit Pension Plans, tax benefit	100,000	100,000
Other Comprehensive Income (Loss), Tax	2,300,000	2,200,000	2,100,000
Equity interest in investee's other comprehensive loss
Accumulated other comprehensive income (loss)
Other comprehensive income (loss)	766,000	771,000
Other Comprehensive Income, Other, Net of Tax	0	0
Balance at the beginning of the period	771,000	0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax		(771,000)
Balance at the end of the period	1,537,000	771,000
Forward Contracts [Member]
Accumulated other comprehensive income (loss)
Other comprehensive income (loss)	1,003,000	0
Other Comprehensive Income, Other, Net of Tax	0	0	0
Balance at the beginning of the period	0	0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax		0
Balance at the end of the period	$ 1,003,000	$ 0	$ 0

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Investment in NEC TOKIN - Narrative (Details) (USD $)	12 Months Ended			0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013	Feb. 01, 2013	Mar. 12, 2012
Schedule of Equity Method Investments [Line Items]
Document Period End Date	Mar. 31, 2015
Value of net call derivative options	$ 1,003,000	$ 0
Gain (loss) on options	2,100,000	3,111,000	0
Investment in NEC TOKIN (excludes non cash investment)	0	0	50,917,000
Loss Contingency, Number of Co-Defendants	20
Loss Contingency, Estimate of Possible Loss	30,000,000
KEC
Schedule of Equity Method Investments [Line Items]
Business Combination, Indemnification Assets, Range of Outcomes, Value, Low	8,500,000
Stockholders Agreement | KEC
Schedule of Equity Method Investments [Line Items]
Receivables balance under agreement	600,000	700,000
NEC TOKIN
Schedule of Equity Method Investments [Line Items]
KEMET's equity ownership %	34.00%	34.00%	34.00%
Revenue from Related Parties	13,500,000	6,000,000
Related Party Transaction, Purchases from Related Party	3,600,000	1,800,000
Accounts receivable	3,300,000	2,000,000
Accounts payable	800,000	100,000
NEC TOKIN | KEC
Schedule of Equity Method Investments [Line Items]
Purchase price				54,500,000
Transaction expenses				4,500,000
NEC TOKIN | Stock Purchase Agreement | KEC
Schedule of Equity Method Investments [Line Items]
Common stock acquired					51.00%
KEMET's equity ownership %					34.00%
Purchase price paid				50,000,000
Investment in NEC TOKIN (excludes non cash investment)				50,000,000
NEC TOKIN | Stockholders Agreement
Schedule of Equity Method Investments [Line Items]
Number of director positions	7
NEC TOKIN | Stockholders Agreement | KEC
Schedule of Equity Method Investments [Line Items]
Number of director positions	4
NEC TOKIN | Option Agreement | KEC
Schedule of Equity Method Investments [Line Items]
KEMET's equity ownership %	49.00%
Purchase price for expected additional shares that may be acquired	50,000,000
Ownership interest maintained after acquisition of additional shares (as a percent)	51.00%
LTM EBITDA multiple	6
NEC TOKIN | Put Option
Schedule of Equity Method Investments [Line Items]
Gain (loss) on options		3,100,000
NEC TOKIN | Put Option | KEC
Schedule of Equity Method Investments [Line Items]
LTM EBITDA multiple	6
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | NEC TOKIN | Put Option
Schedule of Equity Method Investments [Line Items]
Gain (loss) on options	2,100,000
NEC TOKIN options, net	5,700,000	3,600,000
Equity Method Investments [Member] | Stockholders Agreement
Schedule of Equity Method Investments [Line Items]
Business Combination, Indemnification Assets, Range of Outcomes, Value, Low	$ 25,000,000

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Debt - Advanced Payment from OEM Narrative (Details) (USD $)	1 Months Ended	0 Months Ended
	Jun. 30, 2013	Aug. 28, 2012	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013	Oct. 08, 2012
Advanced payment from OEM
Debt Instrument [Line Items]
Unamortized discount			$ 0	$ 45,000	$ 323,000
OEM
Debt Instrument [Line Items]
Amount agreed to be advanced		24,000,000
Period of payment of advanced amount as percentage of aggregate purchase price of capacitors	8 months
Amount of irrevocable standby letter of credit delivered						16,000,000
OEM | Maximum
Debt Instrument [Line Items]
Monthly repayment of advanced amount, price ratio below threshold		1,000,000
OEM | Advanced payment from OEM
Debt Instrument [Line Items]
Long-term debt					$ 20,400,000

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Pension and Other Post-retirement Benefit Plans (Details 1) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Mar. 31, 2013	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Pension
Amounts recognized in the Consolidated Balance Sheets
Current liability		$ (626)	$ (615)
Noncurrent liability		(38,233)	(32,154)
Amount recognized, end of year		(38,859)	(32,769)
Accumulated other comprehensive income (loss)
Net actuarial loss (gain)		21,408	9,269
Prior service cost		1,300	310
Accumulated other comprehensive (income) loss		22,708	9,579
Components of benefit costs (credit)
Net service cost		1,286	1,308	1,583
Interest cost		1,819	1,734	1,903
Expected return on plan assets		(480)	(454)	(656)
Amortization:
Actuarial (gain) loss		277	318	544
Prior service cost		17	4	20
Recurring activity		2,919	2,910	3,394
One time expense (income)	2,000	(19)	(32)	266
Net periodic benefit cost (credit)		2,900	2,878	3,660
Other Benefits
Amounts recognized in the Consolidated Balance Sheets
Current liability		(97)	(88)
Noncurrent liability		(749)	(697)
Amount recognized, end of year		(846)	(785)
Accumulated other comprehensive income (loss)
Net actuarial loss (gain)		(1,159)	(1,464)
Prior service cost		0	0
Accumulated other comprehensive (income) loss		(1,159)	(1,464)
Components of benefit costs (credit)
Net service cost		0	0	0
Interest cost		29	23	27
Expected return on plan assets		0	0	0
Amortization:
Actuarial (gain) loss		(187)	(259)	(322)
Prior service cost		0	0	0
Recurring activity		(158)	(236)	(295)
One time expense (income)		0	0	0
Net periodic benefit cost (credit)		$ (158)	$ (236)	$ (295)

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Condensed Consolidating Financial Statements (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Other comprehensive income (loss)	$ (61,123)	$ (58,013)	$ (86,508)
Parent
Condensed Financial Statements, Captions [Line Items]
Other comprehensive income (loss)	(32,103)	(62,676)	(85,449)
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Other comprehensive income (loss)	19,650	(57,309)	(43,519)
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Other comprehensive income (loss)	(20,672)	35,640	6,706
Reclassifications and Eliminations
Condensed Financial Statements, Captions [Line Items]
Other comprehensive income (loss)	$ (27,998)	$ 26,332	$ 35,754

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Derivatives (Tables)

12 Months Ended

Mar. 31, 2015

Derivatives, Fair Value [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

In fiscal year 2015, the Company began using certain derivative instruments (i.e., foreign exchange contracts) to reduce exposures to the volatility of foreign currencies impacting revenues and the costs of its products. The Company did not have any foreign exchange contracts in fiscal year 2014. There was no impact on the Consolidated Statement of Operations in fiscal year 2015 as the program was initiated in the fourth quarter and there has been no ineffectiveness. The balance sheet classifications and fair value of derivative instruments as of March 31, 2015 are as follows (amounts in thousands):

	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance Sheet Caption	Fair Value (1)		Balance Sheet Caption	Fair Value (1)
Foreign exchange contracts	Prepaid and other	$	1,003	Accrued Expenses	$	—

Unrealized Gain (Loss) on Investments [Table Text Block]

Unrealized gains and losses associated with the change in value of these financial instruments are recorded in Accumulated other comprehensive income (loss) ("AOCI"). The pre-tax impact on AOCI related to the change in value of these financial instruments is as follows (amounts in thousands):

	Fiscal Year Ended March 31,
	2015
Beginning of fiscal year	$	—
Current fiscal year unrealized gain (loss) related to the change in value of the financial instruments	1,003
Plus unrealized gain (loss) in AOCI that were recognized in the current fiscal year	—
Net change in AOCI related to financial instruments	1,003
End of fiscal year	$	1,003

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Restructuring (Tables)

12 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

Summary of the expenses aggregated on the Condensed Consolidated Statements of Operations line item "Restructuring charges"

A summary of the expenses aggregated on the Consolidated Statements of Operations line item "Restructuring charges" in the fiscal years ended March 31, 2015, 2014 and 2013, is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Manufacturing and sales office relocation costs	$	2,672	$	3,555	$	2,349
Personnel reduction costs	10,345		10,567		16,370
Restructuring charges	$	13,017	$	14,122	$	18,719

Schedule of reconciliation of the beginning and ending liability balances for restructuring charges included in the line items "Accrued expenses" and "Other non-current obligations" on the Condensed Consolidated Balance Sheets

A reconciliation of the beginning and ending liability balances for restructuring charges included in the line items "Accrued expenses" and "Other non-current obligations" on the Consolidated Balance Sheets were as follows (amounts in thousands):

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Pension and Other Post-retirement Benefit Plans (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Target allocation and weighted-average asset allocations
Target Allocation (as a percent)	100.00%
Plan Assets (as a percent)	100.00%
Estimated future pension benefit payments
2015	$ 1,465
2016	1,458
2017	1,472
2018	1,596
2019	1,683
2021- 2025	9,963
Pension
Other changes in plan assets and benefit obligations recognized in Accumulated other comprehensive income
Current year actuarial (gain) loss	12,397	(190)	3,669
Foreign currency exchange rate changes	0	0	(238)
Amortization of actuarial gain (loss)	(258)	(286)	(4,582)
Current year prior service cost	1,006	285	0
Amortization of prior service cost	(17)	(4)	(101)
Total recognized in other comprehensive income	13,128	(195)	(1,252)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	16,028	2,683	2,408
Estimated future pension benefit payments
2015	1,367
2016	1,363
2017	1,381
2018	1,510
2019	1,603
2021- 2025	9,654
Other Benefits
Other changes in plan assets and benefit obligations recognized in Accumulated other comprehensive income
Current year actuarial (gain) loss	118	95	(145)
Foreign currency exchange rate changes	0	0	0
Amortization of actuarial gain (loss)	187	259	322
Current year prior service cost	0	0	0
Amortization of prior service cost	0	0	0
Total recognized in other comprehensive income	305	354	177
Total recognized in net periodic benefit cost and other comprehensive income (loss)	147	118	(118)
Estimated future pension benefit payments
2015	98
2016	95
2017	91
2018	86
2019	80
2021- 2025	$ 309
Insurance
Target allocation and weighted-average asset allocations
Target Allocation (as a percent)	10.00%
Plan Assets (as a percent)	6.00%
International equities
Target allocation and weighted-average asset allocations
Target Allocation (as a percent)	30.00%
Plan Assets (as a percent)	35.00%
International bonds
Target allocation and weighted-average asset allocations
Target Allocation (as a percent)	50.00%
Plan Assets (as a percent)	58.00%
Other
Target allocation and weighted-average asset allocations
Target Allocation (as a percent)	10.00%
Plan Assets (as a percent)	1.00%

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Investment in NEC TOKIN (Details 4) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Schedule of Equity Method Investments [Line Items]
Investment in NEC TOKIN	$ 45,016	$ 46,419
NEC TOKIN
Schedule of Equity Method Investments [Line Items]
Investment in NEC TOKIN	45,016	46,419
Purchase price accounting basis adjustment:
Property, plant and equipment	3,334	7,325
Technology	(10,889)	(16,261)
Long-term debt	(2,707)	(4,754)
Goodwill	(7,082)	(9,326)
Legal Fees	(8,500)	0
Equity Method investment, Purchase Price Adjustment, Inventory Profit Elimination	208	0
Other	(39)	(952)
KEMET's 34% interest of NEC TOKIN's equity	$ 19,341	$ 22,451

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Income Taxes (Details 2) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation		$ 1,000,000
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation	(3,400,000)		(400,000)
Document Fiscal Year Focus	2015
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	(4,245,000)	(19,704,000)	(25,892,000)
Effective Income Tax Amount Reconciliation Change in Domestic Deferred Tax Assets Valuation Allowance	(19,691,000)	21,788,000	24,571,000
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount	5,766,000	(786,000)	2,565,000
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount	18,502,000	0	0
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount	217,000	149,000	346,000
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount	(53,000)	441,000	737,000
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Amount	1,119,000	773,000	(737,000)
Effective Income Tax Amount Reconciliation Change in Foreign Deferred Tax Assets Valuation Allowance	1,378,000	(2,733,000)	(4,184,000)
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount	4,660,000	3,392,000	3,594,000
Income tax expense	5,227,000	1,482,000	3,281,000
Foreign Tax Authority [Member]
Income Tax Contingency [Line Items]
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount	(2,426,000)
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount		(1,838,000)	2,281,000
China
Income Tax Contingency [Line Items]
Effective Income Tax Rate Reconciliation, Percent	25.00%
Mexico
Income Tax Contingency [Line Items]
Effective Income Tax Rate Reconciliation, Percent	30.00%
China and Mexico [Member]
Income Tax Contingency [Line Items]
Income tax expense	$ 6,400,000	$ 2,200,000	$ 2,200,000

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Debt (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015
Annual maturities of debt
2015	$ 962
2016	0
2017	0
2018	355,000
2019	32,948
10.5% Senior Notes
Annual maturities of debt
2015	0
2016	0
2017	0
2018	355,000
2019	0
Revolving Line of Credit
Annual maturities of debt
2015	500
2016	0
2017	0
2018	0
2019	32,948
Other Debt Obligations [Member]
Annual maturities of debt
2015	462
2016	0
2017	0
2018	0
2019	$ 0

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Pension and Other Post-retirement Benefit Plans - Narrative (Details) (USD $)	12 Months Ended			1 Months Ended	6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013	Jul. 31, 2012	Mar. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Tax effect of accumulated other comprehensive income (loss)	$ 2,300,000	$ 2,200,000
Actuarial losses	631,000
Prior service costs	58,000
Number of fiscal years	10 years
Gains net of the employer matches related to the deferred compensation plan	115,000	189,000	141,000
Total benefits accrued	1,500,000	1,600,000
Matched contribution of the entity	2,200,000	2,200,000	2,500,000
Film and Electrolytic
Defined Benefit Plan Disclosure [Line Items]
Settlement gain				1,700,000
Minimum | Film and Electrolytic
Defined Benefit Plan Disclosure [Line Items]
Percentage of pension liability paid upon retirement				20.00%
Maximum
Defined Benefit Plan Disclosure [Line Items]
Company matched contribution (as a percent)	6.00%
Pension
Defined Benefit Plan Disclosure [Line Items]
Curtailment gain (loss)	19,000	32,000	(266,000)		(2,000,000)
Estimated employer contribution in the next fiscal year	1,500,000
Pension | Europe
Defined Benefit Plan Disclosure [Line Items]
Number of defined benefit plans	6
Pension | Singapore
Defined Benefit Plan Disclosure [Line Items]
Number of defined benefit plans	1
Pension | Mexico
Defined Benefit Plan Disclosure [Line Items]
Number of defined benefit plans	2
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Number of defined benefit plans	2
Curtailment gain (loss)	0	0	0
Estimated employer contribution in the next fiscal year	$ 98,000

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Stock-Based Compensation - Other Narrative (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended	0 Months Ended	12 Months Ended
	Mar. 31, 2015	Mar. 04, 2010	Mar. 31, 2006	Mar. 31, 2014
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	3.1			$ 0.8
LTIPs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	P2Y
Chief executive officer | Performance Vesting Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards exercised (in shares)		83,333	166,667
Weighted average exercise price of awards exercised (in dollars per share)			$ 24.15
Life of options after vesting			10 years
Concurrent grant, replacement award (in shares)		0
Chief executive officer | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period of restriction for sale of shares	90 days
Board of directors | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Officer [Member] | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Executive leadership | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Portion of award that vests per year (as a percent)	33.00%
Long Term Incentive Plan 2014 2015 [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	85,000
Long Term Incentive Plan 2015 2016 [Member] | Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	282,000

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Pension and Other Post-retirement Benefit Plans (Details 4) (Pension, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Defined Benefit Plan Disclosure [Line Items]
Actual return on plan assets	$ 1,737	$ 260
Settlements	(39)	(38)
Employer contributions	1,303	1,346
Benefits paid	(1,111)	(1,302)
Foreign currency exchange rate change	(1,353)	874
Fair value of plan assets	10,483	9,946	8,806
Estimate of Fair Value Measurement [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	10,483	9,946
Estimate of Fair Value Measurement [Member] | International equities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3,626	3,512
Estimate of Fair Value Measurement [Member] | International bonds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6,132	5,636
Estimate of Fair Value Measurement [Member] | Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	576	706
Estimate of Fair Value Measurement [Member] | Other
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	149	92
Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Level 1 | International equities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Level 1 | International bonds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Level 1 | Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Level 1 | Other
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	9,907	9,240
Level 2 | International equities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	3,626	3,512
Level 2 | International bonds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6,132	5,636
Level 2 | Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Level 2 | Other
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	149	92
Level 3
Defined Benefit Plan Disclosure [Line Items]
Actual return on plan assets	39
Settlements	0
Employer contributions	366
Benefits paid	(375)
Foreign currency exchange rate change	(160)
Fair value of plan assets	576	706
Level 3 | International equities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Level 3 | International bonds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Level 3 | Insurance contracts
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	576	706
Level 3 | Other
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 0	$ 0

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Stock-Based Compensation (Details 4) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Weighted-average Fair Value on Grant Date
Non-vested restricted stock at the beginning of the period (in dollars per share)		$ 3.13
Non-vested restricted stock at the end of the period (in dollars per share)	$ 2.73	$ 3.13
Restricted Stock
Shares
Non-vested restricted stock at the beginning of the period (in shares)	308
Granted (in shares)	859
Vested (in shares)	(150)
Forfeited (in shares)	(17)
Non-vested restricted stock at the end of the period (in shares)	1,000
Weighted-average Fair Value on Grant Date
Non-vested restricted stock at the beginning of the period (in dollars per share)	$ 6.62
Granted (in dollars per share)	$ 4.12
Vested (in dollars per share)	$ 5.63
Forfeited (in dollars per share)	$ 9.19
Non-vested restricted stock at the end of the period (in dollars per share)	$ 4.57
Long Term Incentive Plan 2014 2015 [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	154
Long Term Incentive Plan 2014 2015 [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	139
Long Term Incentive Plan 2014 2015 [Member] | Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	143
Long Term Incentive Plan 2013 2014 [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	97
Long Term Incentive Plan 2013 2014 [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	90
Long Term Incentive Plan 2015 2016 [Member] | Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	124
Long Term Incentive Plan 2015 2016 [Member] | Share-based Compensation Award, Tranche Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	128

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Pension and Other Post-retirement Benefit Plans (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Pension
Change in Benefit Obligation
Benefit obligation at beginning of the year	$ 42,715	$ 39,096
Service cost	1,286	1,308	1,583
Interest cost	1,819	1,734	1,903
Plan participants' contributions	0	0
Plan amendments	1,006	285
Actuarial (gain) loss	13,673	(377)
Foreign currency exchange rate change	(9,988)	2,009
Gross benefits paid	(1,111)	(1,302)
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments	58	38
Benefit obligation at end of year	49,342	42,715	39,096
Change in Plan Assets
Fair value of plan assets at beginning of year	9,946	8,806
Actual return on plan assets	1,737	260
Foreign currency exchange rate changes	(1,353)	874
Employer contributions	1,303	1,346
Settlements	(39)	(38)
Plan participants' contributions	0	0
Gross benefits paid	(1,111)	(1,302)
Fair value of plan assets at end of year	10,483	9,946	8,806
Funded status at end of year
Fair value of plan assets	10,483	9,946	8,806
Benefit obligations	(49,342)	(42,715)	(39,096)
Amount recognized at end of year	(38,859)	(32,769)
Other Benefits
Change in Benefit Obligation
Benefit obligation at beginning of the year	785	799
Service cost	0	0	0
Interest cost	29	23	27
Plan participants' contributions	474	555
Plan amendments	0	0
Actuarial (gain) loss	118	94
Foreign currency exchange rate change	0	0
Gross benefits paid	(560)	(686)
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments	0	0
Benefit obligation at end of year	846	785	799
Change in Plan Assets
Fair value of plan assets at beginning of year	0	0
Actual return on plan assets	0	0
Foreign currency exchange rate changes	0	0
Employer contributions	86	131
Settlements	0	0
Plan participants' contributions	474	555
Gross benefits paid	(560)	(686)
Fair value of plan assets at end of year	0	0	0
Funded status at end of year
Fair value of plan assets	0	0	0
Benefit obligations	(846)	(785)	(799)
Amount recognized at end of year	$ (846)	$ (785)

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Investment in NEC TOKIN (Details 2) (NEC TOKIN, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
NEC TOKIN
Summarized financial information
Current assets	$ 223,495	$ 245,709
Noncurrent assets	273,785	302,161
Current liabilities	143,523	120,929
Noncurrent liabilities	296,873	360,908
Net sales	487,282	490,369	82,772
Gross profit	103,773	86,227	9,147
Net loss	$ (24,091)	$ (42,937)	$ (2,216)

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Condensed Consolidating Financial Statements

12 Months Ended

Mar. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements

As discussed in Note 2, "Debt", the Company's 10.5% Senior Notes are fully and unconditionally guaranteed, jointly and severally, on a senior basis by certain of the Company's 100% owned domestic subsidiaries ("Guarantor Subsidiaries") and secured by a first priority lien on 51% of the capital stock of certain of the Company's foreign restricted subsidiaries ("Non-Guarantor Subsidiaries"). The Company's Guarantor Subsidiaries are not consistent with the Company's business groups or geographic operations; accordingly, this basis of presentation is not intended to present the Company's financial condition, results of operations or cash flows for any purpose other than to comply with the specific requirements for subsidiary guarantor reporting. We are required to present condensed consolidating financial information in order for the subsidiary guarantors of the Company's public debt to be exempt from reporting under the Securities Exchange Act of 1934, as amended.

Condensed consolidating financial statements for the Company's Guarantor Subsidiaries and Non-Guarantor Subsidiaries are presented in the following tables (amounts in thousands):

Condensed Consolidating Balance Sheet

March 31, 2015

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Reclassifications and Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	640	$	33,094	$	22,628	$	—		$	56,362
Accounts receivable, net	—		35,535		55,322		—			90,857
Intercompany receivable	321,233		403,557		195,518		(920,308		)	—
Inventories, net	—		119,221		52,622		—			171,843
Prepaid expenses and other	3,191		21,134		20,164		(2,986		)	41,503
Deferred income taxes	—		5,031		5,731		—			10,762
Total current assets	325,064		617,572		351,985		(923,294		)	371,327
Property and equipment, net	293		100,844		148,504		—			249,641
Investments in NEC TOKIN	—		45,016		—		—			45,016
Investments in subsidiaries	401,062		423,737		30,285		(855,084		)	—
Goodwill	—		35,584		—		—			35,584
Intangible assets, net	—		26,998		6,284		—			33,282
Restricted cash	—		1,775		—		—			1,775
Deferred income taxes	—		971		4,140		—			5,111
Other assets	4,088		6,049		919		—			11,056
Long-term intercompany receivable	63,788		39,151		1,088		(104,027		)	—
Total assets	$	794,295	$	1,297,697	$	543,205	$	(1,882,405	)	$	752,792
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	500	$	462	$	—		$	962
Accounts payable, trade	47		36,565		33,173		—			69,785
Intercompany payable	254,852		578,318		87,138		(920,308		)	—
Accrued expenses	17,253		16,644		26,559		—			60,456
Income taxes payable	—		2,928		1,075		(2,986		)	1,017
Total current liabilities	272,152		634,955		148,407		(923,294		)	132,220
Long-term debt, less current portion	357,461		20,948		12,000		—			390,409
Other non-current obligations	—		2,987		54,144		—			57,131
Deferred income taxes	—		7,272		1,078		—			8,350
Long-term intercompany payable	—		63,789		40,238		(104,027		)	—
Stockholders' equity	164,682		567,746		287,338		(855,084		)	164,682
Total liabilities and stockholders' equity	$	794,295	$	1,297,697	$	543,205	$	(1,882,405	)	$	752,792

Condensed Consolidating Balance Sheet

March 31, 2014

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Reclassifications and Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	616	$	22,200	$	35,113	$	—		$	57,929
Accounts receivable, net	—		49,462		49,485		—			98,947
Intercompany receivable	318,582		329,211		203,018		(850,811		)	—
Inventories, net	—		119,340		68,634		—			187,974
Prepaid expenses and other	3,146		15,286		21,380		(2,941		)	36,871
Deferred income taxes	—		1,022		5,673		—			6,695
Current assets of discontinued operations	—		—		12,160		—			12,160
Total current assets	322,344		536,521		395,463		(853,752		)	400,576
Property and equipment, net	329		104,874		187,445		—			292,648
Investment in NEC TOKIN	—		46,419		—		—			46,419
Investment in subsidiaries	402,090		424,386		30,285		(856,761		)	—
Goodwill	—		35,584		—		—			35,584
Intangible assets, net	—		28,380		8,804		—			37,184
Restricted cash	—		13,512		—		—			13,512
Deferred income taxes	—		1,010		5,768		—			6,778
Other assets	5,415		3,895		820		—			10,130
Noncurrent assets of discontinued operations	—		—		836		—			836
Long-term intercompany receivable	81,746		60,663		2,801		(145,210		)	—
Total assets	$	811,924	$	1,255,244	$	632,222	$	(1,855,723	)	$	843,667
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	5,988	$	—	$	1,309	$	—		$	7,297
Accounts payable, trade	84		36,579		38,155		—			74,818
Intercompany payable	176,624		570,535		103,652		(850,811		)	—
Accrued expenses	34,236		13,698		28,534		—			76,468
Income taxes payable	—		2,909		1,012		(2,941		)	980
Current liabilities of discontinued operations	—		—		7,269		—			7,269
Total current liabilities	216,932		623,721		179,931		(853,752		)	166,832
Long-term debt, less current portion	372,251		6,449		12,592		—			391,292
Other non-current obligations	857		3,311		51,696		—			55,864
Deferred income taxes	—		3,258		1,945		—			5,203
Noncurrent liabilities of discontinued operations	—		—		2,592		—			2,592
Long-term intercompany payable	—		81,747		63,463		(145,210		)	—
Stockholders' equity	221,884		536,758		320,003		(856,761		)	221,884
Total liabilities and stockholders' equity	$	811,924	$	1,255,244	$	632,222	$	(1,855,723	)	$	843,667

Condensed Consolidating Statements of Operations

Fiscal Year Ended March 31, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	195		$	978,705		$	773,504		$	(929,212	)	$	823,192
Operating costs and expenses:
Cost of sales	2,468			823,429			707,493			(869,707		)	663,683
Selling, general and administrative expenses	41,783			70,074			46,181			(59,505		)	98,533
Research and development	436			17,588			7,778			—			25,802
Restructuring charges	—			3,310			9,707			—			13,017
Net (gain) loss on sales and disposals of assets	(10		)	181			(392		)	—			(221		)
Total operating costs and expenses	44,677			914,582			770,767			(929,212		)	800,814
Operating income (loss)	(44,482		)	64,123			2,737			—			22,378
Other (income) expense:
Interest income	—			—			(15		)	—			(15		)
Interest expense	38,632			998			1,071			—			40,701
Non-operating (income) expense, net	(40,903		)	46,969			(12,248		)	—			(6,182		)
Equity in earnings of subsidiaries	(27,998		)	—			—			27,998			—
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(14,213		)	16,156			13,929			(27,998		)	(12,126		)
Income tax expense (benefit)	(70		)	576			4,721			—			5,227
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(14,143		)	15,580			9,208			(27,998		)	(17,353		)
Equity income (loss) from NEC TOKIN	—			(2,169		)	—			—			(2,169		)
Income (loss) from continuing operations	(14,143		)	13,411			9,208			(27,998		)	(19,522		)
Income (loss) from discontinued operations	—			102			5,277			—			5,379
Net income (loss)	$	(14,143	)	$	13,513		$	14,485		$	(27,998	)	$	(14,143	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Fiscal Year Ended March 31, 2015

Other comprehensive income (loss) $ (32,103 ) $ 19,650 $ (20,672 ) $ (27,998 ) $ (61,123 )

Condensed Consolidating Statements of Operations

Fiscal Year Ended March 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	218		$	966,369		$	817,945		$	(950,866	)	$	833,666
Operating costs and expenses:
Cost of sales	1,336			878,308			729,105			(895,824		)	712,925
Selling, general and administrative expenses	41,359			61,896			47,643			(55,042		)	95,856
Research and development	229			16,849			7,388			—			24,466
Restructuring charges	—			2,858			11,264			—			14,122
Write down of long-lived assets	—			1,118			3,358			—			4,476
Net (gain) loss on sales and disposals of assets	—			(625		)	657			—			32
Net (gain) loss on intercompany asset transfer	—			14,564			(14,564		)	—			—
Total operating costs and expenses	42,924			974,968			784,851			(950,866		)	851,877
Operating income (loss)	(42,706		)	(8,599		)	33,094			—			(18,211		)
Other (income) expense:
Interest income	(12		)	(4		)	(179		)	—			(195		)
Interest expense	40,069			1,130			(237		)	—			40,962
Non-operating (income) expense, net	(40,642		)	36,741			1,220			—			(2,681		)
Equity in earnings of subsidiaries	26,332			—			—			(26,332		)	—
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(68,453		)	(46,466		)	32,290			26,332			(56,297		)
Income tax expense (benefit)	—			(1,302		)	2,784			—			1,482
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(68,453		)	(45,164		)	29,506			26,332			(57,779		)
Equity income (loss) from NEC TOKIN	—			(7,090		)	—			—			(7,090		)
Income (loss) from continuing operations	(68,453		)	(52,254		)	29,506			26,332			(64,869		)
Income (loss) from discontinued operations	(50		)	(1,195		)	(2,389		)	—			(3,634		)
Net income (loss)	$	(68,503	)	$	(53,449	)	$	27,117		$	26,332		$	(68,503	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Fiscal Year Ended March 31, 2014

Comprehensive income (loss) $ (62,676 ) $ (57,309 ) $ 35,640 $ 26,332 $ (58,013 )

Condensed Consolidating Statements of Operations

Fiscal Year Ended March 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	—		$	905,755		$	843,938		$	(925,790	)	$	823,903
Operating costs and expenses:
Cost of sales	2,003			823,170			754,783			(882,880		)	697,076
Selling, general and administrative expenses	30,838			68,711			50,981			(42,910		)	107,620
Research and development	190			20,028			6,658			—			26,876
Restructuring charges	—			7,266			11,453			—			18,719
Write down of long-lived assets	—			438			7,144			—			7,582
Goodwill impairment	—			1,092			—			—			1,092
Net (gain) loss on sales and disposals of assets	3			98			(83		)	—			18
Total operating costs and expenses	33,034			920,803			830,936			(925,790		)	858,983
Operating income (loss)	(33,034		)	(15,048		)	13,002			—			(35,080		)
Other (income) expense:
Interest income	(24		)	(43		)	(72		)	—			(139		)
Interest expense	40,651			972			(292		)	—			41,331
Other (income) expense, net	(27,233		)	27,623			(2,685		)	—			(2,295		)
Equity in earnings of subsidiaries	35,754			—			—			(35,754		)	—
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(82,182		)	(43,600		)	16,051			35,754			(73,977		)
Income tax expense (benefit)	—			636			2,645			—			3,281
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(82,182		)	(44,236		)	13,406			35,754			(77,258		)
Equity income (loss) from NEC TOKIN	—			(1,254		)	—			—			(1,254		)
Income (loss) from continuing operations	(82,182		)	(45,490		)	13,406			35,754			(78,512		)
Income (loss) from discontinued operations	—			—			(3,670		)	—			(3,670		)
Net income (loss)	$	(82,182	)	$	(45,490	)	$	9,736		$	35,754		$	(82,182	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

Fiscal Year Ended March 31, 2013

Comprehensive income (loss) $ (85,449 ) $ (43,519 ) $ 6,706 $ 35,754 $ (86,508 )

Condensed Consolidating Statements of Cash Flows

Fiscal Year Ended March 31, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations		Consolidated
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$	39,575		$	(4,085	)	$	(11,088	)	$	—	$	24,402
Investing activities:
Capital expenditures	—			(12,930		)	(9,302		)	—		(22,232		)
Change in restricted cash	—			11,509			—			—		11,509
Proceeds from sale of assets	—			2,403			2,385			—		4,788
Proceeds from sale of discontinued operations	—			—			9,564			—		9,564
Net cash provided by (used in) investing activities	—			982			2,647			—		3,629
Financing activities:
Proceeds from revolving line of credit	—			37,340			5,000			—		42,340
Payments of revolving line of credit	—			(22,342		)	(5,000		)	—		(27,342		)
Deferred acquisition payments	(18,527		)	(1,000		)	—			—		(19,527		)
Payments of long-term debt	(20,417		)	—			(1,316		)	—		(21,733		)
Proceeds from exercise of stock options	24			—			—			—		24
Purchase of treasury stock	(630		)	—			—			—		(630		)
Net cash provided by (used in) financing activities	(39,550		)	13,998			(1,316		)	—		(26,868		)
Net increase (decrease) in cash and cash equivalents	25			10,895			(9,757		)	—		1,163
Effect of foreign currency fluctuations on cash	(1		)	(1		)	(2,728		)	—		(2,730		)
Cash and cash equivalents at beginning of fiscal year	616			22,200			35,113			—		57,929
Cash and cash equivalents at end of fiscal year	$	640		$	33,094		$	22,628		$	—	$	56,362

Condensed Consolidating Statements of Cash Flows

Fiscal Year Ended March 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations		Consolidated
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$	7,724		$	(26,984	)	$	12,514		$	—	$	(6,746	)
Investing activities:
Capital expenditures	—			(13,348		)	(18,799		)	—		(32,147		)
Change in restricted cash	—			4,047			—			—		4,047
Proceeds from sale of assets	—			996			1,851			—		2,847
Net cash provided by (used in) investing activities	—			(8,305		)	(16,948		)	—		(25,253		)
Financing activities:
Proceeds from revolving line of credit	—			9,000			12,000			—		21,000
Payments on revolving line of credit	—			(2,551		)	—			—		(2,551		)
Deferred acquisition payments	(20,977		)	(1,000		)	—			—		(21,977		)
Payments of long-term debt	(3,583		)	(16		)	—			—		(3,599		)
Proceeds from exercise of stock options	250			—			—			—		250
Net cash provided by (used in) financing activities	(24,310		)	5,433			12,000			—		(6,877		)
Net increase (decrease) in cash and cash equivalents	(16,586		)	(29,856		)	7,566			—		(38,876		)
Effect of foreign currency fluctuations on cash	—			—			827			—		827
Cash and cash equivalents at beginning of fiscal year	17,202			52,056			26,720			—		95,978
Cash and cash equivalents at end of fiscal year	$	616		$	22,200		$	35,113		$	—	$	57,929

Condensed Consolidating Statements of Cash Flows

Fiscal Year Ended March 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations		Consolidated
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$	(14,492	)	$	(43,099	)	$	34,764		$	—	$	(22,827	)
Investing activities:
Capital expenditures	—			(15,841		)	(30,333		)	—		(46,174		)
Investment in NEC TOKIN (excludes non cash investment)	—			(50,917		)	—			—		(50,917		)
Change in restricted cash	—			(15,284		)	—			—		(15,284		)
Proceeds from sale of assets	—			—			398			—		398
Net cash provided by (used in) investing activities	—			(82,042		)	(29,935		)	—		(111,977		)
Financing activities:
Proceeds from issuance of debt	39,825			—			—			—		39,825
Deferred acquisition payments	(15,900		)	(1,000		)	—			—		(16,900		)
Payments of long-term debt	—			(8		)	(1,901		)	—		(1,909		)
Debt issuance costs	(275		)	—			—			—		(275		)
Proceeds from exercise of stock options	111			—			—			—		111
Net cash provided by (used in) financing activities	23,761			(1,008		)	(1,901		)	—		20,852
Net increase (decrease) in cash and cash equivalents	9,269			(126,149		)	2,928			—		(113,952		)
Effect of foreign currency fluctuations on cash	—			—			(591		)	—		(591		)
Cash and cash equivalents at beginning of fiscal year	7,933			178,205			24,383			—		210,521
Cash and cash equivalents at end of fiscal year	$	17,202		$	52,056		$	26,720		$	—	$	95,978

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Organization and Significant Accounting Policies (Details 4) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Fair Value Measurement
Depreciation	$ 38,200,000	$ 47,500,000	$ 43,000,000
Money markets	738,000	714,000
Total debt	391,371,000	398,589,000
Fair Value Net Forward Option Asset Liability Measured on Recurring Basis Unobservable Input Reconciliation [Roll Forward]
Change in value of NEC TOKIN options	2,100,000	3,111,000	0
Impairment of Long-Lived Assets Held-for-use	0	4,476,000	7,300,000
Revenue Recognition
Percentage of total inventory purchased in previous quarter that can be returned by the distributors, maximum	6.00%
Period of product warranty	1 year
Warranty costs as a percentage of net sales, maximum (less than)	1.00%
Shipping and Handling Costs
Shipping and Handling Costs	17,900,000	19,900,000	21,100,000
Put Option | NEC TOKIN
Fair Value Net Forward Option Asset Liability Measured on Recurring Basis Unobservable Input Reconciliation [Roll Forward]
Change in value of NEC TOKIN options		3,100,000
Carrying Value | Put Option | NEC TOKIN
Fair Value Measurement
Derivative Assets (Liabilities), at Fair Value, Net		3,600,000
Recurring
Fair Value Measurement
Money markets	738,000	714,000
Total debt	391,283,000	409,284,000
Recurring | Level 1
Fair Value Measurement
Money markets	738,000	714,000
Total debt	362,988,000	371,863,000
Recurring | Level 1 | Put Option | NEC TOKIN
Fair Value Measurement
Derivative Assets (Liabilities), at Fair Value, Net	0	0
Recurring | Level 2
Fair Value Measurement
Money markets	0	0
Total debt	28,295,000	37,421,000
Recurring | Level 2 | Put Option | NEC TOKIN
Fair Value Measurement
Derivative Assets (Liabilities), at Fair Value, Net	0	0
Recurring | Level 3
Fair Value Measurement
Money markets	0	0
Total debt	0	0
Recurring | Level 3 | Put Option | NEC TOKIN
Fair Value Measurement
Derivative Assets (Liabilities), at Fair Value, Net	5,700,000	3,600,000
Fair Value Net Forward Option Asset Liability Measured on Recurring Basis Unobservable Input Reconciliation [Roll Forward]
Change in value of NEC TOKIN options	$ 2,100,000

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Income/Loss Per Share (Tables)

12 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Schedule of the basic and diluted weighted-average number of shares of common stock

asic earnings per share calculation is based on the weighted-average number of common shares outstanding. Diluted earnings per share calculation is b

Schedule of common stock equivalents that could potentially dilute net income per basic share in the future, but were not included in the computation of diluted earnings per share because the impact would have been antidilutive

Common stock equivalents that could potentially dilute net income per basic share in the future, but were not included in the computation of diluted earnings per share because the impact would have been antidilutive, were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015	2014	2013
Assumed conversion of employee stock options	1,783	1,761	1,996
Assumed conversion of Platinum Warrant	6,287	6,704	6,836

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Segment and Geographic Information (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales	$ 193,708	$ 201,310	$ 215,293	$ 212,881	$ 215,821	$ 207,339	$ 208,449	$ 202,057	$ 823,192	$ 833,666	$ 823,903
Property, plant and equipment, net	249,641				292,648				249,641	292,648
Solid Capacitors
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									621,275	626,494	622,305
Film and Electrolytic
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									201,917	207,172	201,598
Net sales | Sales risk
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									124,400	128,400	127,700
Concentration Risk, Customer									1
Net sales | Sales risk | Solid Capacitors
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									109,100	115,500	119,000
Concentration Risk, Customer									1
Net sales | Sales risk | Film and Electrolytic
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									15,300	12,900	8,700
Concentration Risk, Customer									1
Net sales | Geographic risk
Net sales and property, plant and equipment, goodwill, intangible assets
Disclosure threshold (as a percent)									2.00%
United States
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									238,840	245,032	228,975
Property, plant and equipment, net	59,754				64,754				59,754	64,754
Hong Kong
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									131,109	135,570	148,014
Germany
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									107,859	105,261	105,818
Europe [Member]
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									58,879	70,895	82,021
China
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									65,289	67,460	70,696
Property, plant and equipment, net	29,871				31,405				29,871	31,405
Asia Pacific [Member]
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									62,864	51,467	50,735
Portugal
Net sales and property, plant and equipment, goodwill, intangible assets
Property, plant and equipment, net	17,352				23,817				17,352	23,817
Macedonia
Net sales and property, plant and equipment, goodwill, intangible assets
Property, plant and equipment, net	13,726				21,044				13,726	21,044
Indonesia
Net sales and property, plant and equipment, goodwill, intangible assets
Property, plant and equipment, net	5,335				6,026				5,335	6,026
Finland
Net sales and property, plant and equipment, goodwill, intangible assets
Property, plant and equipment, net	1,439				2,280				1,439	2,280
United Kingdom
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									32,127	36,085	34,188
Property, plant and equipment, net	251				492				251	492
Netherlands
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									38,853	33,581	24,568
Singapore
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									22,516	27,777	25,060
Italy
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									19,013	20,249	21,203
Property, plant and equipment, net	44,595				61,726				44,595	61,726
Hungary
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									22,745	18,332	13,554
Mexico
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									21,164	17,886	15,923
Property, plant and equipment, net	66,120				67,154				66,120	67,154
Other
Net sales and property, plant and equipment, goodwill, intangible assets
Net sales									1,934	4,071	3,148
Property, plant and equipment, net	$ 11,198				$ 13,950				$ 11,198	$ 13,950

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Supplemental Balance Sheets and Statements of Operations Detail (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Accrued expenses:
Salaries, wages, and related employee costs	$ 26,117	$ 23,596
Deferred acquisition payments	0	19,153
Accrued Vacation, Current	6,286	10,570
Interest	15,678	15,735
Restructuring	6,591	6,217
Other	5,784	1,197
Total accrued expenses	60,456	76,468
Other non-current obligations:
Pension plans	38,982	32,852
Employee separation liability	10,638	15,419
Deferred Compensation Liability, Classified, Noncurrent	1,548	1,559
Purchase Obligation	1,594	2,388
European Social Security Liability NonCurrent	0	0
Restructuring	648	0
Other	3,721	3,646
Total other non-current obligations	57,131	55,864
Non-operating (income) expense, net:
Change in value of NEC TOKIN option	(2,100)	(3,111)	0
Gains (Losses) on Extinguishment of Debt	(1,003)	0	0
Net foreign exchange (gains) losses	(4,249)	(304)	(28)
Miscellaneous non-product income	0	0	465
Offering Memorandum Fees [Line Items]	1,142	0	0
Other Sundry Nonoperating Income (Expense)	(28)	(734)	1,802
Other Nonoperating Income (Expense)	(6,182)	(2,681)	(2,295)
Nonoperating Income (Expense)	$ 6,182	$ 2,681	$ 2,295

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Segment and Geographic Information (Tables)

12 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Segment Reporting [Abstract]

Summary of the profit or loss and total assets for each reportable segment

The following tables summarize information about each segment's net sales, operating income (loss), depreciation and amortization, capital expenditures and total assets (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Net sales:
Solid Capacitors	$	621,275		$	626,494		$	622,305
Film and Electrolytic	201,917			207,172			201,598
	$	823,192		$	833,666		$	823,903
Operating income (loss) (1)(2)(3):
Solid Capacitors	$	135,946		$	91,848		$	94,986
Film and Electrolytic	(16,685		)	(17,587		)	(31,109		)
Corporate	(96,883		)	(92,472		)	(98,957		)
	$	22,378		$	(18,211	)	$	(35,080	)
Depreciation and amortization:
Solid Capacitors	$	21,202		$	28,081		$	27,407
Film and Electrolytic	13,886			14,557			13,360
Corporate	5,680			6,889			4,391
	$	40,768		$	49,527		$	45,158
Capital expenditures:
Solid Capacitors	$	12,552		$	10,498		$	16,838
Film and Electrolytic	7,752			14,494			23,970
Corporate	1,928			7,155			5,366
	$	22,232		$	32,147		$	46,174

_______________________________________________________________________________

(1) Restructuring charges included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Total restructuring:
Solid Capacitors	$	3,297	$	8,108	$	7,335
Film and Electrolytic	8,221		5,657		9,621
Corporate	1,499		357		1,763
	$	13,017	$	14,122	$	18,719

(2) Impairment charges and write downs included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Impairment and write down of long-lived assets:
Solid Capacitors	$	—	$	3,920	$	3,348
Film and Electrolytic	—		556		5,326
	$	—	$	4,476	$	8,674

(3)    (Gain) loss on sales and disposals of assets included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
(Gain) loss on sales and disposals of assets:
Solid Capacitors	$	606		$	(705	)	$	(161	)
Film and Electrolytic	(1,008		)	767			179
Corporate	181			(30		)	—
	$	(221	)	$	32		$	18

_______________________________________________________________________________

	March 31,
	2015		2014
Total assets:
Solid Capacitors	$	469,823	$	479,377
Film and Electrolytic	218,858		287,861
Corporate	64,111		76,429
	$	752,792	$	843,667

Schedule of net sales by geographical location

The following highlights net sales by geographic location (amounts in thousands):

	Fiscal Years Ended March 31,(1)
	2015		2014		2013
United States	$	238,840	$	245,032	$	228,975
Hong Kong	131,109		135,570		148,014
Germany	107,859		105,261		105,818
Europe (2)	58,879		70,895		82,021
China	65,289		67,460		70,696
Asia Pacific (2)	62,864		51,467		50,735
United Kingdom	32,127		36,085		34,188
Netherlands	38,853		33,581		24,568
Singapore	22,516		27,777		25,060
Italy	19,013		20,249		21,203
Hungary	22,745		18,332		13,554
Mexico	21,164		17,886		15,923
Other Countries (2)	1,934		4,071		3,148
	$	823,192	$	833,666	$	823,903

_______________________________________________________________________________

(1) Revenues are attributed to countries or regions based on the location of the customer. Net Sales to one customer exceeded 10% of total net sales as follows: $124.4 million, $128.4 million and $127.7 million in fiscal years 2015, 2014 and 2013, respectively. Solid Capacitor sales to one customer over 10% were $109.1 million, $115.5 million and $119.0 million in fiscal years 2015, 2014 and 2013, respectively. Film and Electrolytic sales to one customer over 10% were $15.3 million, $12.9 million and $8.7 million in fiscal years 2015, 2014 and 2013, respectively.

(2) Excluding the specific countries listed in this table, no country included in this caption exceeded 2% of consolidated net sales for fiscal years 2015, 2014 and 2013.

Schedule of property, plant and equipment, net, based on physical location

The following geographic information includes Property, plant and equipment, net, based on physical location (amounts in thousands):

	March 31,
	2015		2014
United States	$	59,754	$	64,754
Mexico	66,120		67,154
Italy	44,595		61,726
China	29,871		31,405
Portugal	17,352		23,817
Macedonia	13,726		21,044
Indonesia	5,335		6,026
Finland	1,439		2,280
United Kingdom	251		492
Other	11,198		13,950
	$	249,641	$	292,648

XML

Debt (Details) (USD $)	0 Months Ended
	Apr. 03, 2012	Mar. 27, 2012	May 05, 2010	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Debt Instrument [Line Items]
Total debt				$ 391,371,000	$ 398,589,000
Current maturities, net of discount of $278 as of March 31, 2014				(962,000)	(7,297,000)
Total long-term debt				390,409,000	391,292,000
Unamortized discount, current maturities				0	278,000
10.5% Senior Notes
Debt Instrument [Line Items]
Total debt				357,461,000	358,144,000
Proceeds from Issuance of Debt	15,000,000	110,000,000	230,000,000
Stated interest rate (as a percent)			10.50%	10.50%	10.50%
Unamortized premium		6,100,000		2,461,000	3,144,000
Advanced payment from OEM
Debt Instrument [Line Items]
Total debt				0	20,095,000
Unamortized discount				0	45,000	323,000
Revolving Line of Credit
Debt Instrument [Line Items]
Total debt					18,449,000
Other Debt Obligations [Member]
Debt Instrument [Line Items]
Total debt				$ 462,000	$ 1,901,000

XML

Goodwill and Intangible Assets - Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Indefinite Lived Intangible Assets:
Trademarks	7,207	7,207
Amortizing Intangibles:
Accumulated Amortization	14,414	14,451
Intangible assets	47,696	51,635
Purchased technology, customer relationships and patents
Amortizing Intangibles:
Carrying Amount	40,489	44,428
Accumulated Amortization	14,414	14,451
Purchased technology, customer relationships and patents | Minimum
Amortizing Intangibles:
Useful life	3 years	3 years
Purchased technology, customer relationships and patents | Maximum
Amortizing Intangibles:
Useful life	18 years	18 years

XML

Restructuring (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Reconciliation of restructuring liability
Costs charged to expense	$ 13,017	$ 14,122	$ 18,719
Personnel reduction costs
Reconciliation of restructuring liability
Balance at the beginning of the period	6,217	13,509	11,474
Costs charged to expense	10,345	10,567	16,370
Costs paid or settled	(7,995)	(18,235)	(13,976)
Change in foreign exchange	(1,328)	376	(359)
Balance at the end of the period	7,239	6,217	13,509
Manufacturing and sales office relocation costs
Reconciliation of restructuring liability
Balance at the beginning of the period	0	567	0
Costs charged to expense	2,672	3,555	2,349
Costs paid or settled	(2,672)	(4,122)	(1,782)
Change in foreign exchange	0	0	0
Balance at the end of the period	0	0	567
Film and Electrolytic
Reconciliation of restructuring liability
Costs charged to expense	8,221	5,657	9,621
Mexico and Macedonia [Member] | Film and Electrolytic | Manufacturing and sales office relocation costs
Reconciliation of restructuring liability
Costs charged to expense	$ 300

XML

Organization and Significant Accounting Policies (Details)

3 Months Ended

12 Months Ended

12 Months Ended

Mar. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

Sep. 30, 2014

USD ($)

Jun. 30, 2014

USD ($)

Mar. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Sep. 30, 2013

USD ($)

Jun. 30, 2013

USD ($)

Mar. 31, 2015

USD ($)

business_group

Mar. 31, 2014

USD ($)

Mar. 31, 2013

USD ($)

Mar. 31, 2015

EUR (€)

Mar. 31, 2015

Net sales

Electronics distributor risk

Mar. 31, 2014

Net sales

Electronics distributor risk

Mar. 31, 2013

Net sales

Electronics distributor risk

Mar. 31, 2015

Net sales

Electronics distributor risk

TTI, Inc.

USD ($)

Mar. 31, 2014

Net sales

Electronics distributor risk

TTI, Inc.

USD ($)

Mar. 31, 2013

Net sales

Electronics distributor risk

TTI, Inc.

USD ($)

Mar. 31, 2015

Accounts receivable

Credit risk

Mar. 31, 2015

Interest-bearing deposit placed with European bank

USD ($)

Mar. 31, 2015

Interest-bearing deposit placed with European bank

EUR (€)

Restricted Cash and Cash Equivalents Items [Line Items]

Guarantee issued by the European bank in conjunction with the establishment of a VAT registration in The Netherlands

$ 1,600,000

$ 1,600,000

€ 1,500,000

Restricted cash

1,775,000

13,512,000

1,775,000

13,512,000

1,800,000

1,700,000

Nature of Business and Organization

Number of business groups

2

Cash Equivalents

Money market accounts

738,000

714,000

738,000

714,000

Inventories

Inventory consigned at customer locations

10,800,000

9,200,000

10,800,000

9,200,000

Property and Equipment

Depreciation

38,200,000

47,500,000

43,000,000

Impairment of Long-Lived Assets Held-for-use

0

4,476,000

7,300,000

Concentration Risk [Line Items]

Document Period End Date

Mar. 31, 2015

Net sales

$ 193,708,000

$ 201,310,000

$ 215,293,000

$ 212,881,000

$ 215,821,000

$ 207,339,000

$ 208,449,000

$ 202,057,000

$ 823,192,000

$ 833,666,000

$ 823,903,000

$ 124,400,000

$ 128,400,000

$ 127,800,000

Number of customers whose accounts receivable balances exceeded 10% of gross accounts receivable

0

Concentration risk, percentage

45.00%

45.00%

46.00%

0.00%

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

The Company evaluated input from its third-party actuary to determine the appropriate discount rate. The determination of the discount rate is based on various factors such as the rate on bonds, term of the expected payou

XML

Organization and Significant Accounting Policies Derivative Financial Instruments (Notes)

12 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives, Policy [Policy Text Block]

Derivative Financial Instruments

Derivative financial instruments have been utilized by the Company to reduce exposures to volatility of foreign currencies impacting the sales and costs of its products.

The Company accounts for derivatives and hedging activities in accordance with Accounting Standards Codification 815 ("ASC 815"), "Derivatives and Hedging." See Note 13 for further discussion of derivative financial instruments.

XML

Impairment Charges (Details) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Impairment Charges
Amortization of Intangible Assets	$ 2,100,000	$ 2,100,000	$ 2,300,000
Impairment of long-lived assets and intangible assets	0	4,476,000	7,582,000
Impairment of long-lived assets held for use	0	4,476,000	7,300,000
Trademarks
Impairment Charges
Impairment Effect on Earnings Per Share, Pretax			$ 0.01
Trademark impairment			300,000
Solid Capacitors
Impairment Charges
Impairment of long-lived assets to be disposed			3,100,000
Impairment Effect on Earnings Per Share, Pretax		$ 0.09	$ 0.07
Impairment of long-lived assets held for use		3,900,000
Film and Electrolytic
Impairment Charges
Impairment Effect on Earnings Per Share, Pretax		$ 0.01	$ 0.09
Impairment of long-lived assets held for use		$ 600,000	$ 4,200,000
Number of manufacturing facilities within Italy			2

XML

Commitments and Contingencies (Table)

12 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Future minimum lease payments over the next five fiscal years and thereafter under non-cancelable operating leases

Future minimum lease payments over the next five fiscal years and thereafter under non-cancellable operating leases at March 31, 2015, are as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2016			2017		2018		2019		2020		Thereafter
Minimum lease payments	$	5,221		$	2,879	$	2,135	$	1,144	$	401	$	1,272
Sublease rental income	(21		)	—		—		—		—		—
Net minimum lease payments	$	5,200		$	2,879	$	2,135	$	1,144	$	401	$	1,272

XML

Derivatives Hedging Foreign Currencies (Policies)

12 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Hedging Foreign Currencies

Certain operating expenses at the Company's Mexican facilities are paid in Mexican pesos. In order to hedge a portion of these forecasted cash flows, the Company purchases foreign exchange contracts, with terms generally less than twelve months, to buy Mexican pesos for periods and amounts consistent with underlying cash flow exposures. These contracts are designated as cash flow hedges at inception and monitored for effectiveness on a routine basis. There were $23.6 million in peso contracts (notional value) outstanding at March 31, 2015.

Certain expenditures at the Company's Mexican facilities are paid in Japanese yen. In order to hedge a portion of these forecasted cash flows, the Company purchases foreign exchange contracts, with terms generally less than six months, to buy Japanese yen for periods and amounts consistent with underlying cash flow exposures. These contracts are designated as cash flow hedges at inception and monitored for effectiveness on a routine basis. There were $12.1 million in yen contracts (notional value) outstanding at March 31, 2015.

Certain sales are made in euros. In order to hedge a portion of these forecasted cash flows, management purchases foreign exchange contracts, with terms generally less than six months, to sell euros for periods and amounts consistent with the related underlying cash flow exposures. These contracts are designated hedges at inception and monitored for effectiveness on a routine basis. There were $13.8 million in euro contracts (notional value) outstanding at March 31, 2015.

Changes in the derivatives' fair values are deferred and recorded as a component of AOCI until the underlying transaction is recorded to the income statement. When the hedged item affects income, gains or losses are reclassified from AOCI to the Consolidated Statement of Operations as cost of goods sold for foreign exchange contracts to purchase Mexican pesos and Japanese yen, and as Net sales for foreign exchange contracts to sell euros. Any ineffectiveness, if material, in the Company's hedging relationships is recognized immediately as a loss, within the same income statement accounts as described above. Changes in derivative balances impact the line item "Prepaid and other assets" on the Consolidated Statements of Cash Flows.

The Company formally documents all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various hedge transactions.

In fiscal year 2015, the Company began using certain derivative instruments (i.e., foreign exchange contracts) to reduce exposures to the volatility of foreign currencies impacting revenues and the costs of its products. The Company did not have any foreign exchange contracts in fiscal year 2014. There was no impact on the Consolidated Statement of Operations in fiscal year 2015 as the program was initiated in the fourth quarter and there has been no ineffectiveness. The balance sheet classifications and fair value of derivative instruments as of March 31, 2015 are as follows (amounts in thousands):

	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance Sheet Caption	Fair Value (1)		Balance Sheet Caption	Fair Value (1)
Foreign exchange contracts	Prepaid and other	$	1,003	Accrued Expenses	$	—

______________________________________________________________________________

(1) Fair Value measured using Level 2 inputs by adjusting the market spot rate by forward points, based on the date of the contract. The spot rates and forward points used are based on an average rate from an actively traded market.

Unrealized gains and losses associated with the change in value of these financial instruments are recorded in Accumulated other comprehensive income (loss) ("AOCI"). The pre-tax impact on AOCI related to the change in value of these financial instruments is as follows (amounts in thousands):

	Fiscal Year Ended March 31,
	2015
Beginning of fiscal year	$	—
Current fiscal year unrealized gain (loss) related to the change in value of the financial instruments	1,003
Plus unrealized gain (loss) in AOCI that were recognized in the current fiscal year	—
Net change in AOCI related to financial instruments	1,003
End of fiscal year	$	1,003

Hedging Foreign Currencies

Certain operating expenses at the Company's Mexican facilities are paid in Mexican pesos. In order to hedge a portion of these forecasted cash flows, the Company purchases foreign exchange contracts, with terms generally less than twelve months, to buy Mexican pesos for periods and amounts consistent with underlying cash flow exposures. These contracts are designated as cash flow hedges at inception and monitored for effectiveness on a routine basis. There were $23.6 million in peso contracts (notional value) outstanding at March 31, 2015.

Certain expenditures at the Company's Mexican facilities are paid in Japanese yen. In order to hedge a portion of these forecasted cash flows, the Company purchases foreign exchange contracts, with terms generally less than six months, to buy Japanese yen for periods and amounts consistent with underlying cash flow exposures. These contracts are designated as cash flow hedges at inception and monitored for effectiveness on a routine basis. There were $12.1 million in yen contracts (notional value) outstanding at March 31, 2015.

Certain sales are made in euros. In order to hedge a portion of these forecasted cash flows, management purchases foreign exchange contracts, with terms generally less than six months, to sell euros for periods and amounts consistent with the related underlying cash flow exposures. These contracts are designated hedges at inception and monitored for effectiveness on a routine basis. There were $13.8 million in euro contracts (notional value) outstanding at March 31, 2015.

Changes in the derivatives' fair values are deferred and recorded as a component of AOCI until the underlying transaction is recorded to the income statement. When the hedged item affects income, gains or losses are reclassified from AOCI to the Consolidated Statement of Operations as cost of goods sold for foreign exchange contracts to purchase Mexican pesos and Japanese yen, and as Net sales for foreign exchange contracts to sell euros. Any ineffectiveness, if material, in the Company's hedging relationships is recognized immediately as a loss, within the same income statement accounts as described above. Changes in derivative balances impact the line item "Prepaid and other assets" on the Consolidated Statements of Cash Flows.

The Company formally documents all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various hedge transactions.

XML

Organization and Significant Accounting Policies (Policies)

12 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business and Organization

Nature of Business and Organization

KEMET Corporation, which together with its subsidiaries is referred to herein as "KEMET" or the "Company" is a leading manufacturer of tantalum capacitors, multilayer ceramic capacitors, film capacitors, electrolytic capacitors, paper capacitors and solid aluminum capacitors. The Company is headquartered in Simpsonville, South Carolina, which is part of the greater Greenville metropolitan area, and has manufacturing plants and distribution centers located in the United States, Mexico, Europe and Asia. Additionally, the Company has wholly-owned foreign subsidiaries which primarily provide sales support for KEMET's products in foreign markets.

KEMET is organized into two business groups: the Solid Capacitor Business Group ("Solid Capacitors") and the Film and Electrolytic Business Group ("Film and Electrolytic"). Each business group is responsible for the operations of certain manufacturing sites as well as related research and development efforts.

Basis of Presentation

Basis of Presentation

Certain amounts for fiscal years 2014 and 2013 have been reclassified to conform to the fiscal year 2015 presentation of income tax rate reconciliation and NEC TOKIN's presentation of discontinued operations.

Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements of the Company include the accounts of its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Investment in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investments in equity interests on the consolidated balance sheets.

Cash Equivalents

Cash Equivalents

Cash equivalents of $0.7 million at March 31, 2015 and 2014 consist of money market accounts with an original term of three months or less. The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents.

Restricted Cash

Restricted Cash

As discussed in Note 2, Debt, the Company repaid the outstanding balance of the original equipment manufacturer ("OEM") Advance Payment (as defined in Note 2, Debt) and removed the restriction on cash related to the Advance Payment during the third quarter ended December 31, 2014.

A guarantee was issued by a European bank on behalf of the Company in August 2006 in conjunction with the establishment of a Value-Added Tax registration in The Netherlands. The bank guarantee is in the amount of €1.5 million ($1.6 million). An interest-bearing deposit was placed with a European bank for €1.7 million ($1.8 million). The deposit is in KEMET's name and KEMET receives all interest earned by this deposit. However, the deposit is pledged to the European bank, and the bank can use the money should a valid claim be made. The bank guarantee will remain valid until it is discharged by the beneficiary.

Inventories

Inventories

Inventories are stated at the lower of cost or market. The carrying value of inventory is reviewed and adjusted based on slow moving and obsolete items, historical shipments, customer forecasts and backlog and technology developments. Inventory costs include material, labor and manufacturing overhead and most inventory costs are determined by the "first-in, first-out" ("FIFO") method. For tool crib, a component of the Company's raw material inventory, cost is determined under the average cost method. The Company has consigned inventory at certain customer locations totaling $10.8 million and $9.2 million at March 31, 2015 and 2014, respectively.

Property and Equipment

Property, Plant and Equipment

Property and equipment are carried at cost. Depreciation is calculated principally using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the terms of the respective leases. Maintenance costs are expensed; expenditures for renewals and improvements are generally capitalized. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed and any gain or loss is recognized. A long-lived asset classified as held for sale is initially measured and reported at the lower of its carrying amount or fair value less cost to sell. Long-lived assets to be disposed of other than by sale are classified as held and used until the long-lived asset is disposed of. Depreciation expense, including amortization of capital leases, was $38.2 million, $47.5 million and $43.0 million for the fiscal years ended March 31, 2015, 2014 and 2013, respectively.

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Reviews are regularly performed to determine whether facts and circumstances exist which indicate the carrying amount of assets may not be recoverable. The Company assesses the recoverability of its assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. If it is determined that the book value of a long-lived asset or asset group is not recoverable, an impairment loss would be calculated equal to the excess of the carrying amount of the long-lived asset over its fair value. The fair value is calculated as the discounted cash flows of the underlying assets or appraisal values. The Company has to make certain assumptions as to the future cash flows to be generated by the underlying assets. Those assumptions include the amount of volume increases, average selling price decreases, anticipated cost reductions, and the estimated remaining useful life of the equipment. Future changes in assumptions may negatively impact future valuations. Fair market value is based on the undiscounted cash flows that the assets will generate over their remaining useful lives or other valuation techniques. In future tests for recoverability, adverse changes in undiscounted cash flow assumptions could result in an impairment of certain long-lived assets that would require a non-cash charge to the Consolidated Statements of Operations and may have a material effect on the Company's financial condition and operating results. The Company recorded zero, $4.5 million, and $7.3 million in property, plant and equipment impairment charges for fiscal years 2015, 2014 and 2013, respectively.

Goodwill

Goodwill

Goodwill and other intangible assets with indefinite useful lives are not amortized but are subject to annual impairment tests during the fourth quarter of each fiscal year and when otherwise warranted. The Company evaluates its goodwill and intangible assets with indefinite useful lives on a reporting unit basis which requires the Company to estimate the fair value of the reporting units based on the future net cash flows expected to be generated. The impairment test involves a comparison of the fair value of each reporting unit, with the corresponding carrying amounts. If the reporting unit's carrying amount exceeds its fair value, then an indication exists that the reporting unit's goodwill and intangible asset with indefinite useful lives may be impaired. The impairment to be recognized is measured by the amount by which the carrying value of the reporting unit's goodwill being measured exceeds its implied fair value. The implied fair value of goodwill is the excess of the fair value of the reporting unit over the sum of the amounts assigned to identified net assets. As a result, the implied fair value of goodwill is generally the residual amount that results from subtracting the value of net assets including all tangible assets and identified intangible assets from the fair value of the reporting unit's fair value. The Company determined the fair value of its reporting units using an income-based, discounted cash flow ("DCF") analysis, and market-based approaches (Guideline Publicly Traded Company Method and Guideline Transaction Method) which examine transactions in the marketplace involving the sale of the stocks of similar publicly owned companies, or the sale of entire companies engaged in operations similar to KEMET. In addition to the above described reporting unit valuation techniques, the Company's goodwill and intangible asset with indefinite useful lives impairment assessment also considers the Company's aggregate fair value based upon the value of the Company's outstanding shares of common stock.

The impairment review of goodwill and intangible assets with indefinite useful lives are highly subjective and involve the use of estimates and assumptions in order to calculate the impairment charges. Estimates of business enterprise fair value use discounted cash flow and other fair value appraisal models and involve making assumptions for future sales trends, market conditions, growth rates, cost reduction initiatives and cash flows for the next several years. Future changes in assumptions may negatively impact future valuations.

Equity Method Investment

Equity Method Investment

Investments and ownership interests are accounted for under the equity method of accounting if the Company has the ability to exercise significant influence, but not control, over the entity. Investments accounted for under the equity method are initially recorded at cost, and the difference between the basis of the Company's investment and the underlying equity in the net assets of NEC TOKIN at the investment date, if any, is amortized over the lives of the related assets that gave rise to the difference. The Company's share of earnings or losses under the equity method investments and basis difference amortization is reported in the consolidated statements of operations as "Equity income (loss) from NEC TOKIN." The Company reviews its investments and ownership interests accounted for under the equity method of accounting for impairment whenever events or changes in circumstances indicate a loss in the value of the investment may be other than temporary.

Deferred Income Taxes

Deferred Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized.

Stock-based Compensation

Stock-based Compensation

Stock-based compensation for stock options is estimated on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes model takes into account volatility in the price of the Company's stock, the risk-free interest rate, the estimated life of the equity-based award, the closing market price of the Company's stock on the grant date and the exercise price. The estimates utilized in the Black-Scholes calculation involve inherent uncertainties and the application of management judgment. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those options expected to vest. Stock-based compensation cost for restricted stock is measured based on the closing fair market value of the Company's common stock on the date of grant. The Company recognizes stock-based compensation cost for arrangements with cliff vesting as expense ratably on a straight-line basis over the requisite service period. The Company recognizes stock-based compensation cost for arrangements with graded vesting as expense on an accelerated basis over the requisite service period.

Concentrations of Credit and Other Risks

Concentrations of Credit and Other Risks

The Company sells to customers globally. Credit evaluations of its customers' financial condition are performed periodically, and the Company generally does not require collateral from its customers. One customer, TTI, Inc., an electronics distributor, accounted for $124.4 million, $128.4 million and $127.8 million of the Company's net sales in fiscal years 2015, 2014 and 2013, respectively. There were no customers' accounts receivable balances exceeding 10% of gross accounts receivable at March 31, 2015 or March 31, 2014.

Consistent with industry practice, the Company utilizes electronics distributors for a large percentage of its sales. Electronics distributors are an effective means to distribute the products to end-users. For fiscal years ended March 31, 2015, 2014, and 2013, net sales to electronics distributors accounted for 45%, 45% and 46%, respectively, of the Company's total net sales.

Foreign Subsidiaries

Foreign Subsidiaries

Financial statements of certain of the Company's foreign subsidiaries are prepared using the U.S. dollar as their functional currency. Translation of these foreign operations, as well as gains and losses from non-U.S. dollar foreign currency transactions, such as those resulting from the settlement of foreign receivables or payables, are reported in the Consolidated Statements of Operations.

Translation of other foreign operations to U.S. dollars occurs using the current exchange rate for balance sheet accounts and an average exchange rate for results of operations. Such translation gains or losses are recognized as a component of equity in accumulated other comprehensive income ("AOCI").

Comprehensive Income (Loss)

Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income (losses), currency translation gains (losses), defined benefit plan adjustments including those adjustments which result from changes in net prior service credit and actuarial gains (losses), equity interest in investee's other comprehensive income (loss) and is presented in the Consolidated Statements of Comprehensive Income (Loss).

Warrant Liability

Warrant

Concurrent with the consummation of a credit facility, the Company issued K Financing, LLC ("K Financing") a warrant (the "Platinum Warrant") to purchase up to 26,848,484 shares of the Company's common stock, subject to certain adjustments, representing approximately 49.9% of the Company's outstanding common stock at the time of issuance on a post-exercise basis. The Platinum Warrant was subsequently transferred to K Equity, LLC ("K Equity"). The Platinum Warrant is exercisable at a purchase price of $1.05 per share. The Platinum Warrant may be exercised in exchange for cash, by means of net settlement of a corresponding portion of amounts owed by the Company under the Revised Amended and Restated Platinum Credit Facility, by cashless exercise to the extent of appreciation in the value of the Company's common stock above the exercise price of the Platinum Warrant, or by combination of the preceding alternatives.

Warrants may be classified as assets or liabilities (derivative accounting), temporary equity, or permanent equity, depending on the terms of the specific warrant agreement. The Platinum Warrant issued to K Financing under the Platinum Credit Facility (as defined below) does not meet the definition of a derivative as it is indexed to the Company's own stock, as such, the Platinum Warrant is classified as a component of equity.

There were 8,416,815 shares subject to the Platinum Warrant as of March 31, 2015.

Fair Value Measurement

Fair Value Measurement

The Company utilizes three levels of inputs to measure the fair value of (a) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company's consolidated financial statements on a recurring basis (at least annually) and (b) all financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The first two inputs are considered observable and the last is considered unobservable. The levels of inputs are as follows:

• Level 1—Quoted prices in active markets for identical assets or liabilities.

• Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Revenue Recognition

Revenue Recognition

The Company ships products to customers based upon firm orders and revenue is recognized when the sales process is complete. This occurs when products are shipped to the customer in accordance with the terms of an agreement of sale, there is a fixed or determinable selling price, title and risk of loss have been transferred and collectability is reasonably assured. Shipping and handling costs are included in cost of sales.

A portion of sales is related to products designed to meet customer specific requirements. These products typically have stricter tolerances making them useful to the specific customer requesting the product and to customers with similar or less stringent requirements. The Company recognizes revenue when title to the products transfers to the customer.

A portion of sales is made to distributors under agreements allowing certain rights of return and price protection on unsold merchandise held by distributors. The Company's distributor policy includes inventory price protection and "ship-from-stock and debit" ("SFSD") programs common in the industry.

KEMET's SFSD program provides authorized distributors with the flexibility to meet marketplace prices by allowing them, upon a case-by-case pre-approved basis, to adjust their purchased inventory cost to correspond with current market demand. Requests for SFSD adjustments are considered on an individual basis, require a pre-approved cost adjustment quote from their local KEMET sales representative and apply only to a specific customer, part, a specified special price amount, a specified quantity, and is only valid for a specific period of time.  To estimate potential SFSD adjustments corresponding with current period sales, KEMET records a sales reserve based on historical SFSD credits, distributor inventory levels, and certain accounting assumptions, all of which are reviewed quarterly. 

Most of the Company's distributors have the right to return to KEMET a certain portion of the purchased inventory, which, in general, does not exceed 6% of their purchases from the previous fiscal quarter. KEMET estimates future returns based on historical patterns of the distributors and records an allowance on the Consolidated Balance Sheets. The Company also offers volume-based rebates on a case-by-case basis to certain customers in each of the Company's sales channels.

The establishment of sales allowances is recognized as a component of the line item "Net sales" on the Consolidated Statements of Operations, while the associated reserves are included in the line item "Accounts receivable, net" on the Consolidated Balance Sheets. Estimates used in determining sales allowances are subject to various factors. This includes, but is not limited to, changes in economic conditions, pricing changes, product demand, inventory levels in the supply chain, the effects of technological change, and other variables that might result in changes to the Company's estimates.

The Company provides a limited warranty to customers that the Company's products meet certain specifications. The warranty period is generally limited to one year, and the Company's liability under the warranty is generally limited to a replacement of the product or refund of the purchase price of the product. Warranty costs were less than 1% of net sales for the fiscal years ended March 31, 2015, 2014 and 2013. The Company recognizes warranty costs when losses are both probable and reasonably estimable.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

The Company evaluates the collectability of trade receivables through the analysis of customer accounts. When the Company becomes aware that a specific customer has filed for bankruptcy, has begun closing or liquidation proceedings, has become insolvent or is in financial distress, the Company records a specific allowance for the doubtful account to reduce the related receivable to the amount the Company believes is collectible. If circumstances related to specific customers change, the Company's estimates of the recoverability of receivables could be adjusted. Accounts are written off after all means of collection, including legal action, have been exhausted.

Shipping and Handling Costs

Shipping and Handling Costs

The Company's shipping and handling costs are reflected in the line item "Cost of sales" on the Consolidated Statements of Operations. Shipping and handling costs were $17.9 million, $19.9 million, and $21.1 million in the fiscal years ended March 31, 2015, 2014 and 2013, respectively.

Income (Loss) per Share

Income (Loss) per Share

Basic income (loss) per share is computed using the weighted-average number of shares outstanding. Diluted income (loss) per share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to the Platinum Warrant, outstanding options to purchase common stock if such effects are dilutive.

Environmental Cost

Environmental Cost

The Company recognizes liabilities for environmental remediation when it is probable that a liability has been incurred and can be reasonably estimated. The Company determines its liability on a site-by-site basis, and it is not discounted or reduced for anticipated recoveries from insurance carriers. In the event of anticipated insurance recoveries, such amounts would be presented on a gross basis in other current or non-current assets, as appropriate. Expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make a number of estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. In addition, they affect the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include impairment of property and equipment, intangibles and goodwill; allowances for doubtful accounts, price protection and customers' returns, and deferred income taxes; and assets and obligations related to employee benefits. Actual results could differ from these estimates and assumptions.

Impact of Recently Issued Accounting Standards

Impact of Recently Issued Accounting Standards

In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-15, Presentation of Financial Statements-Going Concern. The new guidance is effective for the Company's fiscal year that begins on April 1, 2017 and interim periods within that fiscal year and requires management to assess if there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. This new guidance is not expected to have a material impact on the Company's Consolidated Financial Statements.

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, which supersedes existing accounting standards for revenue recognition and creates a single framework. The new guidance is effective for the Company's fiscal year that begins on April 1, 2017 and interim periods within that fiscal year and requires either a retrospective or a modified retrospective approach to adoption. The Company is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures, as well as the available transition methods. Early adoption is prohibited.

In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). ASU 2014-08 changes the definition of a discontinued operations and modifies related disclosure requirements. The new guidance is effective on a prospective basis for fiscal years beginning after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015. This new guidance did not have a material impact on the Company's Consolidated Financial Statements.

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740). ASU 2013-11 requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, with early adoption permitted. ASU 2013-11 was effective for the Company on April 1, 2014 and did not have a material effect on the Company's Consolidated Financial Statements.

In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830). The ASU revised the authoritative guidance on accounting for cumulative translation adjustment specifying that a cumulative translation adjustment should be released into earnings when an entity ceases to have a controlling financial interest in a subsidiary or a group of assets within a consolidated foreign entity and the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. For sales of an equity method investment that is a foreign entity, a pro rata portion of cumulative translation adjustment attributable to the investment would be recognized in earnings upon sale of the investment. The guidance is effective for fiscal years beginning after December 15, 2013. ASU 2013-05 was effective for the Company on April 1, 2014 and did not have a material effect on the Company's Consolidated Financial Statements.

There are currently no other accounting standards that have been issued that may have a significant impact on the

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Commitments and Contingencies (Details) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Annual rental expenses for operating leases	$ 7,600,000	$ 9,900,000	$ 10,100,000
Minimum lease payments
2015	5,221,000
2016	2,879,000
2017	2,135,000
2018	1,144,000
2019	401,000
Thereafter	1,272,000
Sublease rental income
2015	(21,000)
Operating Leases Net Future Minimum Payments Due Current	$ 5,200,000

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Debt - 10.5% Senior Notes Narrative (Details) (USD $)	0 Months Ended			12 Months Ended
	Apr. 03, 2012	Mar. 27, 2012	May 05, 2010	Mar. 31, 2015	Mar. 31, 2014
Debt Instrument [Line Items]
Interest payable				$ 15,678,000	$ 15,735,000
10.5% Senior Notes
Debt Instrument [Line Items]
Stated interest rate (as a percent)			10.50%	10.50%	10.50%
Proceeds from Issuance of Debt	15,000,000	110,000,000	230,000,000
Net proceeds			222,200,000
Percentage of capital stock of foreign restricted subsidiaries kept as first priority lien			51.00%
Redemption price upon change of control as a percentage of the principal amount				101.00%
Issue price as percentage of principal amount plus accrued interest		105.50%
Unamortized premium		6,100,000		2,461,000	3,144,000
Debt issuance cost, net of amortization				4,100,000	5,400,000
Interest payable				$ 15,500,000
Effective interest rate (as a percent)				10.30%
10.5% Senior Notes | Minimum
Debt Instrument [Line Items]
Minimum percentage of aggregate principal amount held by holders to declare notes due and payable				25.00%

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Quarterly Results of Operations (Unaudited) (Table)

12 Months Ended

Mar. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly information

The following table sets forth certain quarterly information for fiscal years 2015 and 2014. This information, in the opinion of the Company's management, reflects all adjustments (consisting only of normal recurring adjustments) necessary to present fairly this information when read in conjunction with the consolidated financial statements and notes thereto included elsewhere herein (amounts in thousands except per share data):

	Fiscal Year 2015 Quarters Ended
	Jun-30			Sep-30			Dec-31			Mar-31
Net sales	$	212,881		$	215,293		$	201,310		$	193,708
Operating income (loss) (1)	(606		)	12,770			9,302			912
Income (loss) from continuing operations	(10,483		)	7,730			3,078			(19,847		)
Income (loss) from discontinued operations	6,943			(1,400		)	(164		)	—
Net income (loss)	(3,540		)	6,330			2,914			(19,847		)
Net income (loss) per basic share:
Loss from continuing operations	$	(0.23	)	$	0.17		$	0.07		$	(0.44	)
Income (loss) from discontinued operations	$	0.15		$	(0.03	)	$	—		$	—
Net income (loss)	$	(0.08	)	$	0.14		$	0.07		$	(0.44	)
Net income (loss) per diluted share:
Income (loss) from continuing operations	$	(0.23	)	$	0.15		$	0.06		$	(0.44	)
Income (loss) from discontinued operations	$	0.15		$	(0.03	)	$	—		$	—
Net income (loss)	$	(0.08	)	$	0.12		$	0.06		$	(0.44	)

	Fiscal Year 2014 Quarters Ended
	Jun-30			Sep-30			Dec-31			Mar-31
Net sales	$	202,057		$	208,449		$	207,339		$	215,821
Operating income (loss) (1)	(18,212		)	1,585			3,623			(5,207		)
Income (loss) from continuing operations	(33,630		)	(11,945		)	(4,744		)	(14,550		)
Income (loss) from discontinued operations	(1,510		)	(1,151		)	(1,076		)	103
Net income (loss)	(35,140		)	(13,096		)	(5,820		)	(14,447		)
Net income (loss) per basic share:
Income (loss) from continuing operations	$	(0.75	)	$	(0.26	)	$	(0.11	)	$	(0.32	)
Income (loss) from discontinued operations	$	(0.03	)	$	(0.03	)	$	(0.02	)	$	—
Net income (loss)	$	(0.78	)	$	(0.29	)	$	(0.13	)	$	(0.32	)
Net income (loss) per diluted share:
Income (loss) from continuing operations	$	(0.75	)	$	(0.26	)	$	(0.11	)	$	(0.32	)
Income (loss) from discontinued operations	$	(0.03	)	$	(0.03	)	$	(0.02	)	$	—
Net income (loss)	$	(0.78	)	$	(0.29	)	$	(0.13	)	$	(0.32	)

_______________________________________________________________________________

(1) Operating income (loss) as a percentage of net sales fluctuates from quarter to quarter due to a number of factors, including net sales fluctuations, foreign currency exchange, restructuring charges, product mix, the timing and expense of moving product lines to lower-cost locations, the write-down of long lived assets, the net gain/loss on sales and disposals of assets and the relative mix of sales among distributors, original equipment manufacturers, and electronic manufacturing service providers.

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Organization and Significant Accounting Policies (Tables)

12 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of components of accumulated other comprehensive income (loss)

The following summary sets forth the components of accumulated other comprehensive income (loss) contained in the stockholders' equity section of the Consolidated Balance Sheets (amounts in thousands):

	Foreign Currency Translation Gains (Losses)			Defined Benefit Post-retirement Plan Adjustments			Defined Benefit Pension Plans (3)			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)		Foreign Exchange Contracts		Net Accumulated Other Comprehensive Income (Loss)
Balance at March 31, 2013	$	13,538		$	1,818		$	(7,662	)	$	—	$	—	$	7,694
Other comprehensive income (loss) before reclassifications (1)	9,797			(94		)	(95		)	771		—		10,379
Amounts reclassified out of AOCI (1)	—			(260		)	371			—		—		111
Other comprehensive income (loss)	9,797			(354		)	276			771		—		10,490
Balance at March 31, 2014	23,335			1,464			(7,386		)	771		—		18,184
Other comprehensive income (loss) before reclassifications (2)	(35,467		)	(119		)	(13,404		)	766		1,003		(47,221		)
Amounts reclassified out of AOCI (2)	—			(186		)	427			—		—		241
Other comprehensive income (loss)	(35,467		)	(305		)	(12,977		)	766		1,003		(46,980		)
Balance at March 31, 2015	$	(12,132	)	$	1,159		$	(20,363	)	$	1,537	$	1,003	$	(28,796	)

_______________________________________________________________________________

(1) Activity within foreign currency translation gains and defined benefit pension plans are net of a tax expense of $1.9 million and a tax benefit of $0.1 million.

(2) Activity within foreign currency translation losses and defined benefit pension plans are net of a tax benefit of $0.3 million and $0.1 million, respectively.

(3) Balance is net of a tax benefit of $2.3 million, $2.2 million, and $2.1 million as of March 31, 2015, March 31, 2014, and March 31, 2013, respectively.

Schedule of assets measured at fair value on a recurring basis

Assets and liabilities are measured at fair value on a recurring basis as of March 31, 2015 and 2014 are as follows (amounts in thousands):

	Carrying Value March 31, 2015		Fair Value March 31, 2015		Fair Value Measurement Using
					Level 1		Level 2 (2)		Level 3
Assets and Liabilities:
Money markets (1)	$	738	$	738	$	738	$	—	$	—
Total debt	391,371		391,283		362,988		28,295		—
NEC TOKIN options, net (3)	5,700		5,700		—		—		5,700
	Carrying Value March 31, 2014		Fair Value March 31, 2014		Fair Value Measurement Using
					Level 1		Level 2 (2)		Level 3
Assets and Liabilities:
Money markets (1)	$	714	$	714	$	714	$	—	$	—
Total debt	398,589		409,284		371,863		37,421		—
NEC TOKIN options, net (3)	3,600		3,600		—		—		3,600

_______________________________________________________________________________

(1) Included in the line item "Cash and cash equivalents" on the Consolidated Balance Sheets.

(2) The valuation approach used to calculate fair value was a discounted cash flow for each respective debt facility.

(3) See Note 5, "Investment in NEC TOKIN," for a description of the NEC TOKIN options. The value of the options is interrelated and depends on the enterprise value of NEC TOKIN Corporation and its EBITDA over the duration of the instruments. Therefore, the options have been valued using option pricing methods in a Monte Carlo simulation.

Summary of NEC TOKIN option valuation activity using significant unobservable inputs (Level 3)

The table below summarizes NEC TOKIN options valuation activity using significant unobservable inputs (Level 3) (amounts in thousand):

March 31, 2014	$	3,600
Change in value of NEC TOKIN options	2,100
March 31, 2015	$	5,700

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Debt (Tables)

12 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Summary of Debt

A summary of debt is as follows (amounts in thousands):

	March 31,
	2015			2014
10.5% Senior Notes, net of premium of $2,461 and $3,144 as of March 31, 2015 and 2014, respectively	$	357,461		$	358,144
Advanced payment from OEM, net of discount of $323 as of March 31, 2014	—			20,095
Revolving line of credit	33,448			18,449
Other	462			1,901
Total debt	391,371			398,589
Current maturities, net of discount of $278 as of March 31, 2014	(962		)	(7,297		)
Total long-term debt	$	390,409		$	391,292

Schedule of Cash and Non-cash components of Interest Expense

The line item "Interest expense" on the Consolidated Statements of Operations for the fiscal years 2015, 2014 and 2013, respectively, is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014		2013
Contractual interest expense	$	38,716		$	37,366	$	37,193
Amortization of debt issuance costs	1,467			1,704		1,704
Amortization of debt (premium) discount	(407		)	105		(183		)
Imputed interest on acquisition related obligations	754			1,787		2,617
Interest expense on capital leases	171			—		—
Total interest expense	$	40,701		$	40,962	$	41,331

Schedule of the Company's annual maturities of debt

The following table highlights the Company's annual cash maturities of debt (amounts in thousands):

	Annual Maturities of Debt Fiscal Years Ended March 31,
	2016		2017		2018		2019		2020
10.5% Senior Notes	$	—	$	—	$	—	$	355,000	$	—
Revolving line of credit	500		—		—		—		32,948
Other	462		—		—		—		—
	$	962	$	—	$	—	$	355,000	$	32,948

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Organization and Significant Accounting Policies

12 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Significant Accounting Policies

Organization and Significant Accounting Policies

Nature of Business and Organization

KEMET Corporation, which together with its subsidiaries is referred to herein as "KEMET" or the "Company" is a leading manufacturer of tantalum capacitors, multilayer ceramic capacitors, film capacitors, electrolytic capacitors, paper capacitors and solid aluminum capacitors. The Company is headquartered in Simpsonville, South Carolina, which is part of the greater Greenville metropolitan area, and has manufacturing plants and distribution centers located in the United States, Mexico, Europe and Asia. Additionally, the Company has wholly-owned foreign subsidiaries which primarily provide sales support for KEMET's products in foreign markets.

KEMET is organized into two business groups: the Solid Capacitor Business Group ("Solid Capacitors") and the Film and Electrolytic Business Group ("Film and Electrolytic"). Each business group is responsible for the operations of certain manufacturing sites as well as related research and development efforts.

Basis of Presentation

Certain amounts for fiscal years 2014 and 2013 have been reclassified to conform to the fiscal year 2015 presentation of income tax rate reconciliation and NEC TOKIN's presentation of discontinued operations.

Principles of Consolidation

The accompanying consolidated financial statements of the Company include the accounts of its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Investment in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investments in equity interests on the consolidated balance sheets.

Cash Equivalents

Cash equivalents of $0.7 million at March 31, 2015 and 2014 consist of money market accounts with an original term of three months or less. The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents.

Restricted Cash

As discussed in Note 2, Debt, the Company repaid the outstanding balance of the original equipment manufacturer ("OEM") Advance Payment (as defined in Note 2, Debt) and removed the restriction on cash related to the Advance Payment during the third quarter ended December 31, 2014.

A guarantee was issued by a European bank on behalf of the Company in August 2006 in conjunction with the establishment of a Value-Added Tax registration in The Netherlands. The bank guarantee is in the amount of €1.5 million ($1.6 million). An interest-bearing deposit was placed with a European bank for €1.7 million ($1.8 million). The deposit is in KEMET's name and KEMET receives all interest earned by this deposit. However, the deposit is pledged to the European bank, and the bank can use the money should a valid claim be made. The bank guarantee will remain valid until it is discharged by the beneficiary.

Inventories

Inventories are stated at the lower of cost or market. The carrying value of inventory is reviewed and adjusted based on slow moving and obsolete items, historical shipments, customer forecasts and backlog and technology developments. Inventory costs include material, labor and manufacturing overhead and most inventory costs are determined by the "first-in, first-out" ("FIFO") method. For tool crib, a component of the Company's raw material inventory, cost is determined under the average cost method. The Company has consigned inventory at certain customer locations totaling $10.8 million and $9.2 million at March 31, 2015 and 2014, respectively.

Property, Plant and Equipment

Property and equipment are carried at cost. Depreciation is calculated principally using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the terms of the respective leases. Maintenance costs are expensed; expenditures for renewals and improvements are generally capitalized. Upon sale or retirement of property and equipment, the related cost and accumulated depreciation are removed and any gain or loss is recognized. A long-lived asset classified as held for sale is initially measured and reported at the lower of its carrying amount or fair value less cost to sell. Long-lived assets to be disposed of other than by sale are classified as held and used until the long-lived asset is disposed of. Depreciation expense, including amortization of capital leases, was $38.2 million, $47.5 million and $43.0 million for the fiscal years ended March 31, 2015, 2014 and 2013, respectively.

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Reviews are regularly performed to determine whether facts and circumstances exist which indicate the carrying amount of assets may not be recoverable. The Company assesses the recoverability of its assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. If it is determined that the book value of a long-lived asset or asset group is not recoverable, an impairment loss would be calculated equal to the excess of the carrying amount of the long-lived asset over its fair value. The fair value is calculated as the discounted cash flows of the underlying assets or appraisal values. The Company has to make certain assumptions as to the future cash flows to be generated by the underlying assets. Those assumptions include the amount of volume increases, average selling price decreases, anticipated cost reductions, and the estimated remaining useful life of the equipment. Future changes in assumptions may negatively impact future valuations. Fair market value is based on the undiscounted cash flows that the assets will generate over their remaining useful lives or other valuation techniques. In future tests for recoverability, adverse changes in undiscounted cash flow assumptions could result in an impairment of certain long-lived assets that would require a non-cash charge to the Consolidated Statements of Operations and may have a material effect on the Company's financial condition and operating results. The Company recorded zero, $4.5 million, and $7.3 million in property, plant and equipment impairment charges for fiscal years 2015, 2014 and 2013, respectively.

Goodwill

Goodwill and other intangible assets with indefinite useful lives are not amortized but are subject to annual impairment tests during the fourth quarter of each fiscal year and when otherwise warranted. The Company evaluates its goodwill and intangible assets with indefinite useful lives on a reporting unit basis which requires the Company to estimate the fair value of the reporting units based on the future net cash flows expected to be generated. The impairment test involves a comparison of the fair value of each reporting unit, with the corresponding carrying amounts. If the reporting unit's carrying amount exceeds its fair value, then an indication exists that the reporting unit's goodwill and intangible asset with indefinite useful lives may be impaired. The impairment to be recognized is measured by the amount by which the carrying value of the reporting unit's goodwill being measured exceeds its implied fair value. The implied fair value of goodwill is the excess of the fair value of the reporting unit over the sum of the amounts assigned to identified net assets. As a result, the implied fair value of goodwill is generally the residual amount that results from subtracting the value of net assets including all tangible assets and identified intangible assets from the fair value of the reporting unit's fair value. The Company determined the fair value of its reporting units using an income-based, discounted cash flow ("DCF") analysis, and market-based approaches (Guideline Publicly Traded Company Method and Guideline Transaction Method) which examine transactions in the marketplace involving the sale of the stocks of similar publicly owned companies, or the sale of entire companies engaged in operations similar to KEMET. In addition to the above described reporting unit valuation techniques, the Company's goodwill and intangible asset with indefinite useful lives impairment assessment also considers the Company's aggregate fair value based upon the value of the Company's outstanding shares of common stock.

The impairment review of goodwill and intangible assets with indefinite useful lives are highly subjective and involve the use of estimates and assumptions in order to calculate the impairment charges. Estimates of business enterprise fair value use discounted cash flow and other fair value appraisal models and involve making assumptions for future sales trends, market conditions, growth rates, cost reduction initiatives and cash flows for the next several years. Future changes in assumptions may negatively impact future valuations.

Equity Method Investment

Investments and ownership interests are accounted for under the equity method of accounting if the Company has the ability to exercise significant influence, but not control, over the entity. Investments accounted for under the equity method are initially recorded at cost, and the difference between the basis of the Company's investment and the underlying equity in the net assets of NEC TOKIN at the investment date, if any, is amortized over the lives of the related assets that gave rise to the difference. The Company's share of earnings or losses under the equity method investments and basis difference amortization is reported in the consolidated statements of operations as "Equity income (loss) from NEC TOKIN." The Company reviews its investments and ownership interests accounted for under the equity method of accounting for impairment whenever events or changes in circumstances indicate a loss in the value of the investment may be other than temporary.

Deferred Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized.

Stock-based Compensation

Stock-based compensation for stock options is estimated on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes model takes into account volatility in the price of the Company's stock, the risk-free interest rate, the estimated life of the equity-based award, the closing market price of the Company's stock on the grant date and the exercise price. The estimates utilized in the Black-Scholes calculation involve inherent uncertainties and the application of management judgment. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those options expected to vest. Stock-based compensation cost for restricted stock is measured based on the closing fair market value of the Company's common stock on the date of grant. The Company recognizes stock-based compensation cost for arrangements with cliff vesting as expense ratably on a straight-line basis over the requisite service period. The Company recognizes stock-based compensation cost for arrangements with graded vesting as expense on an accelerated basis over the requisite service period.

Concentrations of Credit and Other Risks

The Company sells to customers globally. Credit evaluations of its customers' financial condition are performed periodically, and the Company generally does not require collateral from its customers. One customer, TTI, Inc., an electronics distributor, accounted for $124.4 million, $128.4 million and $127.8 million of the Company's net sales in fiscal years 2015, 2014 and 2013, respectively. There were no customers' accounts receivable balances exceeding 10% of gross accounts receivable at March 31, 2015 or March 31, 2014.

Consistent with industry practice, the Company utilizes electronics distributors for a large percentage of its sales. Electronics distributors are an effective means to distribute the products to end-users. For fiscal years ended March 31, 2015, 2014, and 2013, net sales to electronics distributors accounted for 45%, 45% and 46%, respectively, of the Company's total net sales.

Foreign Subsidiaries

Financial statements of certain of the Company's foreign subsidiaries are prepared using the U.S. dollar as their functional currency. Translation of these foreign operations, as well as gains and losses from non-U.S. dollar foreign currency transactions, such as those resulting from the settlement of foreign receivables or payables, are reported in the Consolidated Statements of Operations.

Translation of other foreign operations to U.S. dollars occurs using the current exchange rate for balance sheet accounts and an average exchange rate for results of operations. Such translation gains or losses are recognized as a component of equity in accumulated other comprehensive income ("AOCI").

Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income (losses), currency translation gains (losses), defined benefit plan adjustments including those adjustments which result from changes in net prior service credit and actuarial gains (losses), equity interest in investee's other comprehensive income (loss) and is presented in the Consolidated Statements of Comprehensive Income (Loss).

The following summary sets forth the components of accumulated other comprehensive income (loss) contained in the stockholders' equity section of the Consolidated Balance Sheets (amounts in thousands):

	Foreign Currency Translation Gains (Losses)			Defined Benefit Post-retirement Plan Adjustments			Defined Benefit Pension Plans (3)			Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss)		Foreign Exchange Contracts		Net Accumulated Other Comprehensive Income (Loss)
Balance at March 31, 2013	$	13,538		$	1,818		$	(7,662	)	$	—	$	—	$	7,694
Other comprehensive income (loss) before reclassifications (1)	9,797			(94		)	(95		)	771		—		10,379
Amounts reclassified out of AOCI (1)	—			(260		)	371			—		—		111
Other comprehensive income (loss)	9,797			(354		)	276			771		—		10,490
Balance at March 31, 2014	23,335			1,464			(7,386		)	771		—		18,184
Other comprehensive income (loss) before reclassifications (2)	(35,467		)	(119		)	(13,404		)	766		1,003		(47,221		)
Amounts reclassified out of AOCI (2)	—			(186		)	427			—		—		241
Other comprehensive income (loss)	(35,467		)	(305		)	(12,977		)	766		1,003		(46,980		)
Balance at March 31, 2015	$	(12,132	)	$	1,159		$	(20,363	)	$	1,537	$	1,003	$	(28,796	)

_______________________________________________________________________________

(1) Activity within foreign currency translation gains and defined benefit pension plans are net of a tax expense of $1.9 million and a tax benefit of $0.1 million.

(2) Activity within foreign currency translation losses and defined benefit pension plans are net of a tax benefit of $0.3 million and $0.1 million, respectively.

(3) Balance is net of a tax benefit of $2.3 million, $2.2 million, and $2.1 million as of March 31, 2015, March 31, 2014, and March 31, 2013, respectively.

Stock Warrant

Concurrent with the consummation of a credit facility, the Company issued K Financing, LLC ("K Financing") a warrant (the "Platinum Warrant") to purchase up to 26,848,484 shares of the Company's common stock, subject to certain adjustments, representing approximately 49.9% of the Company's outstanding common stock at the time of issuance on a post-exercise basis. The Platinum Warrant was subsequently transferred to K Equity, LLC ("K Equity"). The Platinum Warrant is exercisable at a purchase price of $1.05 per share. The Platinum Warrant may be exercised in exchange for cash, by means of net settlement of a corresponding portion of amounts owed by the Company under the Revised Amended and Restated Platinum Credit Facility, by cashless exercise to the extent of appreciation in the value of the Company's common stock above the exercise price of the Platinum Warrant, or by combination of the preceding alternatives.

Warrants may be classified as assets or liabilities (derivative accounting), temporary equity, or permanent equity, depending on the terms of the specific warrant agreement. The Platinum Warrant issued to K Financing under the Platinum Credit Facility (as defined below) does not meet the definition of a derivative as it is indexed to the Company's own stock, as such, the Platinum Warrant is classified as a component of equity.

There were 8,416,815 shares subject to the Platinum Warrant as of March 31, 2015. The Platinum Warrant expires on June 30, 2019.

Fair Value Measurement

The Company utilizes three levels of inputs to measure the fair value of (a) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company's consolidated financial statements on a recurring basis (at least annually) and (b) all financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The first two inputs are considered observable and the last is considered unobservable. The levels of inputs are as follows:

• Level 1—Quoted prices in active markets for identical assets or liabilities.

• Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and liabilities are measured at fair value on a recurring basis as of March 31, 2015 and 2014 are as follows (amounts in thousands):

	Carrying Value March 31, 2015		Fair Value March 31, 2015		Fair Value Measurement Using
					Level 1		Level 2 (2)		Level 3
Assets and Liabilities:
Money markets (1)	$	738	$	738	$	738	$	—	$	—
Total debt	391,371		391,283		362,988		28,295		—
NEC TOKIN options, net (3)	5,700		5,700		—		—		5,700
	Carrying Value March 31, 2014		Fair Value March 31, 2014		Fair Value Measurement Using
					Level 1		Level 2 (2)		Level 3
Assets and Liabilities:
Money markets (1)	$	714	$	714	$	714	$	—	$	—
Total debt	398,589		409,284		371,863		37,421		—
NEC TOKIN options, net (3)	3,600		3,600		—		—		3,600

_______________________________________________________________________________

(1) Included in the line item "Cash and cash equivalents" on the Consolidated Balance Sheets.

(2) The valuation approach used to calculate fair value was a discounted cash flow for each respective debt facility.

(3) See Note 5, "Investment in NEC TOKIN," for a description of the NEC TOKIN options. The value of the options is interrelated and depends on the enterprise value of NEC TOKIN Corporation and its EBITDA over the duration of the instruments. Therefore, the options have been valued using option pricing methods in a Monte Carlo simulation.

The table below summarizes NEC TOKIN options valuation activity using significant unobservable inputs (Level 3) (amounts in thousand):

March 31, 2014	$	3,600
Change in value of NEC TOKIN options	2,100
March 31, 2015	$	5,700

Revenue Recognition

The Company ships products to customers based upon firm orders and revenue is recognized when the sales process is complete. This occurs when products are shipped to the customer in accordance with the terms of an agreement of sale, there is a fixed or determinable selling price, title and risk of loss have been transferred and collectability is reasonably assured. Shipping and handling costs are included in cost of sales.

A portion of sales is related to products designed to meet customer specific requirements. These products typically have stricter tolerances making them useful to the specific customer requesting the product and to customers with similar or less stringent requirements. The Company recognizes revenue when title to the products transfers to the customer.

A portion of sales is made to distributors under agreements allowing certain rights of return and price protection on unsold merchandise held by distributors. The Company's distributor policy includes inventory price protection and "ship-from-stock and debit" ("SFSD") programs common in the industry.

KEMET's SFSD program provides authorized distributors with the flexibility to meet marketplace prices by allowing them, upon a case-by-case pre-approved basis, to adjust their purchased inventory cost to correspond with current market demand. Requests for SFSD adjustments are considered on an individual basis, require a pre-approved cost adjustment quote from their local KEMET sales representative and apply only to a specific customer, part, a specified special price amount, a specified quantity, and is only valid for a specific period of time.  To estimate potential SFSD adjustments corresponding with current period sales, KEMET records a sales reserve based on historical SFSD credits, distributor inventory levels, and certain accounting assumptions, all of which are reviewed quarterly. 

Most of the Company's distributors have the right to return to KEMET a certain portion of the purchased inventory, which, in general, does not exceed 6% of their purchases from the previous fiscal quarter. KEMET estimates future returns based on historical patterns of the distributors and records an allowance on the Consolidated Balance Sheets. The Company also offers volume-based rebates on a case-by-case basis to certain customers in each of the Company's sales channels.

The establishment of sales allowances is recognized as a component of the line item "Net sales" on the Consolidated Statements of Operations, while the associated reserves are included in the line item "Accounts receivable, net" on the Consolidated Balance Sheets. Estimates used in determining sales allowances are subject to various factors. This includes, but is not limited to, changes in economic conditions, pricing changes, product demand, inventory levels in the supply chain, the effects of technological change, and other variables that might result in changes to the Company's estimates.

The Company provides a limited warranty to customers that the Company's products meet certain specifications. The warranty period is generally limited to one year, and the Company's liability under the warranty is generally limited to a replacement of the product or refund of the purchase price of the product. Warranty costs were less than 1% of net sales for the fiscal years ended March 31, 2015, 2014 and 2013. The Company recognizes warranty costs when losses are both probable and reasonably estimable.

Allowance for Doubtful Accounts

The Company evaluates the collectability of trade receivables through the analysis of customer accounts. When the Company becomes aware that a specific customer has filed for bankruptcy, has begun closing or liquidation proceedings, has become insolvent or is in financial distress, the Company records a specific allowance for the doubtful account to reduce the related receivable to the amount the Company believes is collectible. If circumstances related to specific customers change, the Company's estimates of the recoverability of receivables could be adjusted. Accounts are written off after all means of collection, including legal action, have been exhausted.

Shipping and Handling Costs

The Company's shipping and handling costs are reflected in the line item "Cost of sales" on the Consolidated Statements of Operations. Shipping and handling costs were $17.9 million, $19.9 million, and $21.1 million in the fiscal years ended March 31, 2015, 2014 and 2013, respectively.

Income (Loss) per Share

Basic income (loss) per share is computed using the weighted-average number of shares outstanding. Diluted income (loss) per share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to the Platinum Warrant, outstanding options to purchase common stock if such effects are dilutive.

Environmental Cost

The Company recognizes liabilities for environmental remediation when it is probable that a liability has been incurred and can be reasonably estimated. The Company determines its liability on a site-by-site basis, and it is not discounted or reduced for anticipated recoveries from insurance carriers. In the event of anticipated insurance recoveries, such amounts would be presented on a gross basis in other current or non-current assets, as appropriate. Expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized.

Derivative Financial Instruments

Derivative financial instruments have been utilized by the Company to reduce exposures to volatility of foreign currencies impacting the sales and costs of its products.

The Company accounts for derivatives and hedging activities in accordance with Accounting Standards Codification 815 ("ASC 815"), "Derivatives and Hedging." See Note 13 for further discussion of derivative financial instruments.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make a number of estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. In addition, they affect the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include impairment of property and equipment, intangibles and goodwill; allowances for doubtful accounts, price protection and customers' returns, and deferred income taxes; and assets and obligations related to employee benefits. Actual results could differ from these estimates and assumptions.

Impact of Recently Issued Accounting Standards

In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-15, Presentation of Financial Statements-Going Concern. The new guidance is effective for the Company's fiscal year that begins on April 1, 2017 and interim periods within that fiscal year and requires management to assess if there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. This new guidance is not expected to have a material impact on the Company's Consolidated Financial Statements.

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, which supersedes existing accounting standards for revenue recognition and creates a single framework. The new guidance is effective for the Company's fiscal year that begins on April 1, 2017 and interim periods within that fiscal year and requires either a retrospective or a modified retrospective approach to adoption. The Company is currently evaluating the potential impact on its Consolidated Financial Statements and related disclosures, as well as the available transition methods. Early adoption is prohibited.

In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). ASU 2014-08 changes the definition of a discontinued operations and modifies related disclosure requirements. The new guidance is effective on a prospective basis for fiscal years beginning after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015. This new guidance did not have a material impact on the Company's Consolidated Financial Statements.

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740). ASU 2013-11 requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, with early adoption permitted. ASU 2013-11 was effective for the Company on April 1, 2014 and did not have a material effect on the Company's Consolidated Financial Statements.

In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830). The ASU revised the authoritative guidance on accounting for cumulative translation adjustment specifying that a cumulative translation adjustment should be released into earnings when an entity ceases to have a controlling financial interest in a subsidiary or a group of assets within a consolidated foreign entity and the sale or transfer results in the complete or substantially complete liquidation of the foreign entity. For sales of an equity method investment that is a foreign entity, a pro rata portion of cumulative translation adjustment attributable to the investment would be recognized in earnings upon sale of the investment. The guidance is effective for fiscal years beginning after December 15, 2013. ASU 2013-05 was effective for the Company on April 1, 2014 and did not have a material effect on the Company's Consolidated Financial Statements.

There are currently no other accounting standards that have been issued that may have a significant impact on the Company's Consolidated Financial Statements.

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Discontinued Operations (Tables)

12 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Net sales and net operating (loss) from the Company's discontinued operation

Net sales and net operating loss from the Company’s discontinued operation for years ended March 31, 2015, 2014 and 2013 were as follows (in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Net sales	$	104		$	11,489		$	19,051
Operating income (loss)	(265		)	(3,730		)	(4,203		)

XML

Stock-Based Compensation - Employee Stock Options Narrative (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended			0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013	Jan. 27, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of non-vested shares (in dollars per share)	$ 2.73	$ 3.13
Weighted average grant-date fair value of shares vested (in dollars per share)	$ 3.50
Weighted average grant-date fair value of shares forfeited (in dollars per share)	$ 3.25
2011 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for grant	7.4
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of plans that reserved shares of common stock for issuance to executives and key employees	4
Shares authorized for grant	6.6
Expiration period	10 years
Total estimated fair value of shares vested	$ 1.0	$ 1.1	$ 1.7
Intrinsic value of stock options exercised	0	0.2	0.2
Intrinsic value of options outstanding	0.3
Intrinsic value of stock options exercisable	0.3
Total unrecognized compensation cost, net of estimated forfeitures, related to non-vested options	$ 0.3
Weighted-average recognition period of unrecognized compensation costs	0 years 10 months 24 days
Weighted average exercise price of stock options expected to vest (in dollars per share)	$ 5.35	$ 5.84
Annual forfeiture rate (as a percent)	2.00%
Dividend yield	0.00%	0.00%	0.00%
Stock Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Price of options granted as a percentage of fair value	100.00%
Stock Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Stock Options | Chief executive officer | Awards that vest on June 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				50.00%
Stock Options | Chief executive officer | Awards that vest on June 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				50.00%
Stock Options | Prior Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for grant	0.8

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Income Taxes (Tables)

12 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of components of income (loss) before income taxes and equity loss from NEC TOKIN

The components of Income (loss) from continuing operations before income taxes and equity loss from NEC TOKIN are as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Domestic (U.S.)	$	(26,238	)	$	(89,529	)	$	(88,939	)
Foreign (Outside U.S.)	14,112			33,232			14,962
Total	$	(12,126	)	$	(56,297	)	$	(73,977	)

Schedule of the provision (benefit) for income tax expense

The provision (benefit) for Income tax expense is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Current:
Federal	$	—		$	—		$	—
State and local	(92		)	35			37
Foreign	7,403			7,816			3,561
Total current income tax expense from continuing operations	7,311			7,851			3,598
Deferred:
Federal	270			(1,694		)	(65		)
State and local	39			406			700
Foreign	(2,393		)	(5,081		)	(952		)
Deferred tax benefit from continuing operations	(2,084		)	(6,369		)	(317		)
Provision for income taxes	$	5,227		$	1,482		$	3,281

Schedule of reconciliation of the statutory federal income tax rate to the effective income tax rate

Differences between the provision for income taxes on earnings from continuing operations and the amount computed using the U.S. Federal statutory income tax rate are as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Amount computed using the statutory rate of 35%	(4,245	)	(19,704	)	(25,892	)
Change in U.S. valuation allowance	(19,691	)	21,788		24,571
Unremitted earnings of foreign subsidiaries	18,502		—		—
Effect of prior year adjustments (1)	5,766		(786	)	2,565
Taxable foreign source income	4,660		3,392		3,594
Other non-deductible expenses	217		149		346
State income taxes, net of federal taxes	(53	)	441		737
Change in foreign operations tax exposure reserves	1,119		773		(737	)
Change in foreign operations valuation allowance (2)	1,378		(2,733	)	(4,184	)
Other effect of foreign operations	(2,426	)	(1,838	)	2,281
Provision for income taxes	5,227		1,482		3,281

(1) The effect of prior year adjustments is offset by a full valuation allowance resulting in no impact on the provision for income taxes.

(2) The change in foreign operations valuation allowance excludes currency translation adjustments of $(3.4) million, $1.0 million, and $(0.4) million for fiscal years ended 2015, 2014, and 2013, respectively which has no impact on the provision for income taxes.

The foreign jurisdictions having the greatest effect on the provision for income taxes are China and Mexico. The statutory tax rates for China and Mexico are 25% and 30%, respectively. The provision for income taxes for China and Mexico for fiscal years ended 2015, 2014, and 2013 is $6.4 million, $2.2 million, and $2.2 million, respectively.

Schedule of the components of deferred tax assets and liabilities

The components of deferred tax assets and liabilities are as follows (amounts in thousands):

	March 31,
	2015			2014
Deferred tax assets:
Net operating loss carry forwards	$	162,691		$	173,377
Sales allowances and inventory reserves	21,696			19,447
Medical and employee benefits	15,982			10,035
Tax credits	10,025			10,838
Stock-based compensation	3,578			4,439
Other	3,411			4,338
Total deferred tax assets before valuation allowance	217,383			222,474
Less valuation allowance	(167,594		)	(189,276		)
Total deferred tax assets	49,789			33,198
Deferred tax liabilities:
Unremitted earnings of subsidiaries	(18,502		)	—
Depreciation and differences in basis	(12,166		)	(13,299		)
Amortization of intangibles and debt discounts	(7,261		)	(7,420		)
NEC TOKIN put/call option	(1,860		)	(1,104		)
Non-amortized intangibles	(2,556		)	(2,549		)
Other	(54		)	(578		)
Total deferred tax liabilities	(42,399		)	(24,950		)
Net deferred tax assets	$	7,390		$	8,248

The change in net deferred income tax asset (liability) for the current year is presented below (amounts in thousands):

Balance at March 31, 2014	$	8,248
Deferred income taxes related to continuing operations (1)	2,084
Deferred income taxes related to other comprehensive income	(1,287		)
Foreign currency translation	(1,655		)
Balance at March 31, 2015	$	7,390

(1) Fiscal year ended March 31, 2015 includes a federal tax expense of $0.3 million allocated from other comprehensive income.

Schedule of annual activities included in the deferred tax valuation allowance

The following table presents the annual activities included in the deferred tax valuation allowance:

	Valuation Allowance for Deferred Tax Assets
Balance at March 31, 2012	$	149,306
Charge to costs and expenses	23,977
Deductions	(4,013		)
Balance at March 31, 2013	169,270
Charge to costs and expenses	21,515
Deductions	(1,509		)
Balance at March 31, 2014	189,276
Charge to costs and expenses	(19,900		)
Deductions	(1,782		)
Balance at March 31, 2015	$	167,594

Schedule of tax credit carryforwards available

At March 31, 2015, the U.S. consolidated group of companies had the following tax credit carryforwards available (amounts in thousands):

	Tax Credits ($)	Fiscal Year of Expiration
U.S. foreign tax credits	5,805	2017
U.S. research credits	916	2023
Texas franchise tax credits	3,304	2026

Schedule of reconciliation of gross unrecognized tax benefits (excluding interest and penalties)

A reconciliation of gross unrecognized tax benefits (excluding interest and penalties) is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Beginning of fiscal year	$	5,691		$	5,395		$	6,321
Additions for tax positions of the current year	1,115			639			35
Additions for tax positions of prior years	—			19			37
Reductions for tax positions of prior years	(56		)	(28		)	(640		)
Lapse in statute of limitations	(203		)	—			(358		)
Settlements	(170		)	(334		)	—
End of fiscal year	$	6,377		$	5,691		$	5,395

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Debt (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Interest expense
Contractual interest expense	$ 38,716	$ 37,366	$ 37,193
Amortization of debt issuance costs	1,467	1,704	1,704
Amortization of debt (premium) discount	(407)	105	(183)
Imputed interest on acquisition related obligations	754	1,787	2,617
Capital Leases, Income Statement, Interest Expense	171	0	0
Total interest expense	$ 40,701	$ 40,962	$ 41,331

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Investment in NEC TOKIN (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Adjustments:
Equity Loss from NEC TOKIN	$ (2,169)	$ (7,090)	$ (1,254)
NEC TOKIN
Schedule of Equity Method Investments [Line Items]
NEC TOKIN net loss	(24,091)	(42,937)	(2,216)
KEMET's equity ownership %	34.00%	34.00%	34.00%
Equity loss from NEC TOKIN before Adjustments	(8,191)	(14,599)	(753)
Adjustments:
Amortization and depreciation	(2,270)	(1,390)	(247)
Gain on sale of long-lived assets adjustment	0	(5,998)	0
Loss on impairment of long-lived assets adjustment	0	14,643	0
Inventory valuation adjustment	0	254	(254)
Loss Contingency Accrual	8,500	0	0
Equity Method investment, Purchase Price Adjustment, Inventory Profit Elimination	(208)	0	0
Equity Loss from NEC TOKIN	$ (2,169)	$ (7,090)	$ (1,254)

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Current assets:
Cash and cash equivalents	$ 56,362	$ 57,929
Accounts receivable, net	90,857	98,947
Inventories, net	171,843	187,974
Prepaid and other current assets	41,503	36,871
Deferred income taxes	10,762	6,695
Current assets of discontinued operations	0	12,160
Total current assets	371,327	400,576
Property, plant and equipment, net	249,641	292,648
Goodwill	35,584	35,584
Intangible assets, net	33,282	37,184
Investment in NEC TOKIN	45,016	46,419
Restricted cash	1,775	13,512
Deferred income taxes	5,111	6,778
Other assets	11,056	10,130
Disposal Group, Including Discontinued Operation, Long Lived Assets, Noncurrent	0	836
Total assets	752,792	843,667
Current liabilities:
Current portion of long-term debt	962	7,297
Accounts payable	69,785	74,818
Accrued expenses	60,456	76,468
Income taxes payable and deferred income taxes	1,017	980
Current liabilities of discontinued operations	0	7,269
Total current liabilities	132,220	166,832
Long-term debt	390,409	391,292
Other non-current obligations	57,131	55,864
Deferred income taxes	8,350	5,203
Noncurrent liabilities of discontinued operations	0	2,592
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.01, authorized 10,000 shares, none issued	0	0
Common stock, par value $0.01, authorized 175,000 shares, issued 46,508 shares at March 31, 2015 and 2014	465	465
Additional paid-in capital	461,191	465,027
Retained deficit	(245,881)	(231,738)
Accumulated other comprehensive income (loss)	(28,796)	18,184
Treasury stock, at cost (1,057 and 1,301 shares at March 31, 2015 and 2014, respectively)	(22,297)	(30,054)
Total stockholders' equity	164,682	221,884
Total liabilities and stockholders' equity	$ 752,792	$ 843,667

XML

Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Mar. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheet

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Reclassifications and Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	640	$	33,094	$	22,628	$	—		$	56,362
Accounts receivable, net	—		35,535		55,322		—			90,857
Intercompany receivable	321,233		403,557		195,518		(920,308		)	—
Inventories, net	—		119,221		52,622		—			171,843
Prepaid expenses and other	3,191		21,134		20,164		(2,986		)	41,503
Deferred income taxes	—		5,031		5,731		—			10,762
Total current assets	325,064		617,572		351,985		(923,294		)	371,327
Property and equipment, net	293		100,844		148,504		—			249,641
Investments in NEC TOKIN	—		45,016		—		—			45,016
Investments in subsidiaries	401,062		423,737		30,285		(855,084		)	—
Goodwill	—		35,584		—		—			35,584
Intangible assets, net	—		26,998		6,284		—			33,282
Restricted cash	—		1,775		—		—			1,775
Deferred income taxes	—		971		4,140		—			5,111
Other assets	4,088		6,049		919		—			11,056
Long-term intercompany receivable	63,788		39,151		1,088		(104,027		)	—
Total assets	$	794,295	$	1,297,697	$	543,205	$	(1,882,405	)	$	752,792
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	500	$	462	$	—		$	962
Accounts payable, trade	47		36,565		33,173		—			69,785
Intercompany payable	254,852		578,318		87,138		(920,308		)	—
Accrued expenses	17,253		16,644		26,559		—			60,456
Income taxes payable	—		2,928		1,075		(2,986		)	1,017
Total current liabilities	272,152		634,955		148,407		(923,294		)	132,220
Long-term debt, less current portion	357,461		20,948		12,000		—			390,409
Other non-current obligations	—		2,987		54,144		—			57,131
Deferred income taxes	—		7,272		1,078		—			8,350
Long-term intercompany payable	—		63,789		40,238		(104,027		)	—
Stockholders' equity	164,682		567,746		287,338		(855,084		)	164,682
Total liabilities and stockholders' equity	$	794,295	$	1,297,697	$	543,205	$	(1,882,405	)	$	752,792

Condensed Consolidating Balance Sheet

March 31, 2014

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Reclassifications and Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	616	$	22,200	$	35,113	$	—		$	57,929
Accounts receivable, net	—		49,462		49,485		—			98,947
Intercompany receivable	318,582		329,211		203,018		(850,811		)	—
Inventories, net	—		119,340		68,634		—			187,974
Prepaid expenses and other	3,146		15,286		21,380		(2,941		)	36,871
Deferred income taxes	—		1,022		5,673		—			6,695
Current assets of discontinued operations	—		—		12,160		—			12,160
Total current assets	322,344		536,521		395,463		(853,752		)	400,576
Property and equipment, net	329		104,874		187,445		—			292,648
Investment in NEC TOKIN	—		46,419		—		—			46,419
Investment in subsidiaries	402,090		424,386		30,285		(856,761		)	—
Goodwill	—		35,584		—		—			35,584
Intangible assets, net	—		28,380		8,804		—			37,184
Restricted cash	—		13,512		—		—			13,512
Deferred income taxes	—		1,010		5,768		—			6,778
Other assets	5,415		3,895		820		—			10,130
Noncurrent assets of discontinued operations	—		—		836		—			836
Long-term intercompany receivable	81,746		60,663		2,801		(145,210		)	—
Total assets	$	811,924	$	1,255,244	$	632,222	$	(1,855,723	)	$	843,667
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	5,988	$	—	$	1,309	$	—		$	7,297
Accounts payable, trade	84		36,579		38,155		—			74,818
Intercompany payable	176,624		570,535		103,652		(850,811		)	—
Accrued expenses	34,236		13,698		28,534		—			76,468
Income taxes payable	—		2,909		1,012		(2,941		)	980
Current liabilities of discontinued operations	—		—		7,269		—			7,269
Total current liabilities	216,932		623,721		179,931		(853,752		)	166,832
Long-term debt, less current portion	372,251		6,449		12,592		—			391,292
Other non-current obligations	857		3,311		51,696		—			55,864
Deferred income taxes	—		3,258		1,945		—			5,203
Noncurrent liabilities of discontinued operations	—		—		2,592		—			2,592
Long-term intercompany payable	—		81,747		63,463		(145,210		)	—
Stockholders' equity	221,884		536,758		320,003		(856,761		)	221,884
Total liabilities and stockholders' equity	$	811,924	$	1,255,244	$	632,222	$	(1,855,723	)	$	843,667

Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

Fiscal Year Ended March 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	—		$	905,755		$	843,938		$	(925,790	)	$	823,903
Operating costs and expenses:
Cost of sales	2,003			823,170			754,783			(882,880		)	697,076
Selling, general and administrative expenses	30,838			68,711			50,981			(42,910		)	107,620
Research and development	190			20,028			6,658			—			26,876
Restructuring charges	—			7,266			11,453			—			18,719
Write down of long-lived assets	—			438			7,144			—			7,582
Goodwill impairment	—			1,092			—			—			1,092
Net (gain) loss on sales and disposals of assets	3			98			(83		)	—			18
Total operating costs and expenses	33,034			920,803			830,936			(925,790		)	858,983
Operating income (loss)	(33,034		)	(15,048		)	13,002			—			(35,080		)
Other (income) expense:
Interest income	(24		)	(43		)	(72		)	—			(139		)
Interest expense	40,651			972			(292		)	—			41,331
Other (income) expense, net	(27,233		)	27,623			(2,685		)	—			(2,295		)
Equity in earnings of subsidiaries	35,754			—			—			(35,754		)	—
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(82,182		)	(43,600		)	16,051			35,754			(73,977		)
Income tax expense (benefit)	—			636			2,645			—			3,281
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(82,182		)	(44,236		)	13,406			35,754			(77,258		)
Equity income (loss) from NEC TOKIN	—			(1,254		)	—			—			(1,254		)
Income (loss) from continuing operations	(82,182		)	(45,490		)	13,406			35,754			(78,512		)
Income (loss) from discontinued operations	—			—			(3,670		)	—			(3,670		)
Net income (loss)	$	(82,182	)	$	(45,490	)	$	9,736		$	35,754		$	(82,182	)

Condensed Consolidating Statements of Operations

Fiscal Year Ended March 31, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	195		$	978,705		$	773,504		$	(929,212	)	$	823,192
Operating costs and expenses:
Cost of sales	2,468			823,429			707,493			(869,707		)	663,683
Selling, general and administrative expenses	41,783			70,074			46,181			(59,505		)	98,533
Research and development	436			17,588			7,778			—			25,802
Restructuring charges	—			3,310			9,707			—			13,017
Net (gain) loss on sales and disposals of assets	(10		)	181			(392		)	—			(221		)
Total operating costs and expenses	44,677			914,582			770,767			(929,212		)	800,814
Operating income (loss)	(44,482		)	64,123			2,737			—			22,378
Other (income) expense:
Interest income	—			—			(15		)	—			(15		)
Interest expense	38,632			998			1,071			—			40,701
Non-operating (income) expense, net	(40,903		)	46,969			(12,248		)	—			(6,182		)
Equity in earnings of subsidiaries	(27,998		)	—			—			27,998			—
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(14,213		)	16,156			13,929			(27,998		)	(12,126		)
Income tax expense (benefit)	(70		)	576			4,721			—			5,227
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(14,143		)	15,580			9,208			(27,998		)	(17,353		)
Equity income (loss) from NEC TOKIN	—			(2,169		)	—			—			(2,169		)
Income (loss) from continuing operations	(14,143		)	13,411			9,208			(27,998		)	(19,522		)
Income (loss) from discontinued operations	—			102			5,277			—			5,379
Net income (loss)	$	(14,143	)	$	13,513		$	14,485		$	(27,998	)	$	(14,143	)

Condensed Consolidating Statements of Operations

Fiscal Year Ended March 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	218		$	966,369		$	817,945		$	(950,866	)	$	833,666
Operating costs and expenses:
Cost of sales	1,336			878,308			729,105			(895,824		)	712,925
Selling, general and administrative expenses	41,359			61,896			47,643			(55,042		)	95,856
Research and development	229			16,849			7,388			—			24,466
Restructuring charges	—			2,858			11,264			—			14,122
Write down of long-lived assets	—			1,118			3,358			—			4,476
Net (gain) loss on sales and disposals of assets	—			(625		)	657			—			32
Net (gain) loss on intercompany asset transfer	—			14,564			(14,564		)	—			—
Total operating costs and expenses	42,924			974,968			784,851			(950,866		)	851,877
Operating income (loss)	(42,706		)	(8,599		)	33,094			—			(18,211		)
Other (income) expense:
Interest income	(12		)	(4		)	(179		)	—			(195		)
Interest expense	40,069			1,130			(237		)	—			40,962
Non-operating (income) expense, net	(40,642		)	36,741			1,220			—			(2,681		)
Equity in earnings of subsidiaries	26,332			—			—			(26,332		)	—
Income (loss) from continuing operations before income taxes and equity income (loss) from NEC TOKIN	(68,453		)	(46,466		)	32,290			26,332			(56,297		)
Income tax expense (benefit)	—			(1,302		)	2,784			—			1,482
Income (loss) from continuing operations before equity income (loss) from NEC TOKIN	(68,453		)	(45,164		)	29,506			26,332			(57,779		)
Equity income (loss) from NEC TOKIN	—			(7,090		)	—			—			(7,090		)
Income (loss) from continuing operations	(68,453		)	(52,254		)	29,506			26,332			(64,869		)
Income (loss) from discontinued operations	(50		)	(1,195		)	(2,389		)	—			(3,634		)
Net income (loss)	$	(68,503	)	$	(53,449	)	$	27,117		$	26,332		$	(68,503	)

Condensed Statement of Comprehensive Income [Table Text Block]

Condensed Consolidating Statements of Comprehensive Income (Loss)

Fiscal Year Ended March 31, 2015

Other comprehensive income (loss) $ (32,103 ) $ 19,650 $ (20,672 ) $ (27,998 ) $ (61,123 )

Condensed Consolidating Statements of Comprehensive Income (Loss)

Fiscal Year Ended March 31, 2013

Comprehensive income (loss) $ (85,449 ) $ (43,519 ) $ 6,706 $ 35,754 $ (86,508 )

Condensed Consolidating Statements of Comprehensive Income (Loss)

Fiscal Year Ended March 31, 2014

Comprehensive income (loss) $ (62,676 ) $ (57,309 ) $ 35,640 $ 26,332 $ (58,013 )

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

Fiscal Year Ended March 31, 2015

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations		Consolidated
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$	39,575		$	(4,085	)	$	(11,088	)	$	—	$	24,402
Investing activities:
Capital expenditures	—			(12,930		)	(9,302		)	—		(22,232		)
Change in restricted cash	—			11,509			—			—		11,509
Proceeds from sale of assets	—			2,403			2,385			—		4,788
Proceeds from sale of discontinued operations	—			—			9,564			—		9,564
Net cash provided by (used in) investing activities	—			982			2,647			—		3,629
Financing activities:
Proceeds from revolving line of credit	—			37,340			5,000			—		42,340
Payments of revolving line of credit	—			(22,342		)	(5,000		)	—		(27,342		)
Deferred acquisition payments	(18,527		)	(1,000		)	—			—		(19,527		)
Payments of long-term debt	(20,417		)	—			(1,316		)	—		(21,733		)
Proceeds from exercise of stock options	24			—			—			—		24
Purchase of treasury stock	(630		)	—			—			—		(630		)
Net cash provided by (used in) financing activities	(39,550		)	13,998			(1,316		)	—		(26,868		)
Net increase (decrease) in cash and cash equivalents	25			10,895			(9,757		)	—		1,163
Effect of foreign currency fluctuations on cash	(1		)	(1		)	(2,728		)	—		(2,730		)
Cash and cash equivalents at beginning of fiscal year	616			22,200			35,113			—		57,929
Cash and cash equivalents at end of fiscal year	$	640		$	33,094		$	22,628		$	—	$	56,362

Condensed Consolidating Statements of Cash Flows

Fiscal Year Ended March 31, 2014

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations		Consolidated
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$	7,724		$	(26,984	)	$	12,514		$	—	$	(6,746	)
Investing activities:
Capital expenditures	—			(13,348		)	(18,799		)	—		(32,147		)
Change in restricted cash	—			4,047			—			—		4,047
Proceeds from sale of assets	—			996			1,851			—		2,847
Net cash provided by (used in) investing activities	—			(8,305		)	(16,948		)	—		(25,253		)
Financing activities:
Proceeds from revolving line of credit	—			9,000			12,000			—		21,000
Payments on revolving line of credit	—			(2,551		)	—			—		(2,551		)
Deferred acquisition payments	(20,977		)	(1,000		)	—			—		(21,977		)
Payments of long-term debt	(3,583		)	(16		)	—			—		(3,599		)
Proceeds from exercise of stock options	250			—			—			—		250
Net cash provided by (used in) financing activities	(24,310		)	5,433			12,000			—		(6,877		)
Net increase (decrease) in cash and cash equivalents	(16,586		)	(29,856		)	7,566			—		(38,876		)
Effect of foreign currency fluctuations on cash	—			—			827			—		827
Cash and cash equivalents at beginning of fiscal year	17,202			52,056			26,720			—		95,978
Cash and cash equivalents at end of fiscal year	$	616		$	22,200		$	35,113		$	—	$	57,929

Condensed Consolidating Statements of Cash Flows

Fiscal Year Ended March 31, 2013

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations		Consolidated
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$	(14,492	)	$	(43,099	)	$	34,764		$	—	$	(22,827	)
Investing activities:
Capital expenditures	—			(15,841		)	(30,333		)	—		(46,174		)
Investment in NEC TOKIN (excludes non cash investment)	—			(50,917		)	—			—		(50,917		)
Change in restricted cash	—			(15,284		)	—			—		(15,284		)
Proceeds from sale of assets	—			—			398			—		398
Net cash provided by (used in) investing activities	—			(82,042		)	(29,935		)	—		(111,977		)
Financing activities:
Proceeds from issuance of debt	39,825			—			—			—		39,825
Deferred acquisition payments	(15,900		)	(1,000		)	—			—		(16,900		)
Payments of long-term debt	—			(8		)	(1,901		)	—		(1,909		)
Debt issuance costs	(275		)	—			—			—		(275		)
Proceeds from exercise of stock options	111			—			—			—		111
Net cash provided by (used in) financing activities	23,761			(1,008		)	(1,901		)	—		20,852
Net increase (decrease) in cash and cash equivalents	9,269			(126,149		)	2,928			—		(113,952		)
Effect of foreign currency fluctuations on cash	—			—			(591		)	—		(591		)
Cash and cash equivalents at beginning of fiscal year	7,933			178,205			24,383			—		210,521
Cash and cash equivalents at end of fiscal year	$	17,202		$	52,056		$	26,720		$	—	$	95,978

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Supplemental Balance Sheets and Statements of Operations Detail (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Total property and equipment
Property, plant and equipment, gross	$ 1,053,927	$ 1,098,335
Accumulated depreciation	(804,286)	(805,687)
Property, plant and equipment	249,641	292,648
Land and land improvements
Total property and equipment
Useful life	20 years	20 years
Property, plant and equipment, gross	22,017	25,965
Buildings
Total property and equipment
Property, plant and equipment, gross	149,451	163,062
Buildings | Minimum
Total property and equipment
Useful life	20 years	20 years
Buildings | Maximum
Total property and equipment
Useful life	40 years	40 years
Machinery and equipment
Total property and equipment
Useful life	10 years	10 years
Property, plant and equipment, gross	798,112	824,878
Furniture and fixtures
Total property and equipment
Property, plant and equipment, gross	60,903	69,676
Furniture and fixtures | Minimum
Total property and equipment
Useful life	4 years	4 years
Furniture and fixtures | Maximum
Total property and equipment
Useful life	10 years	10 years
Construction in progress
Total property and equipment
Property, plant and equipment, gross	21,260	14,754
Other Capitalized Property Plant and Equipment [Member]
Total property and equipment
Property, plant and equipment, gross	$ 2,184	$ 0

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Consolidated Statements of Changes in Stockholders' Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock	Additional Paid-In Capital	Retained Deficit	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance at Mar. 31, 2012	$ 358,996	$ 465	$ 470,059	$ (81,053)	$ 12,020	$ (42,495)
Balance (in shares) at Mar. 31, 2012		44,669,000
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(82,182)	0	0	(82,182)	0	0
Other comprehensive income (loss)	(4,326)	0	0	0	(4,326)	0
Issuance of restricted shares	(282)	0	(6,511)	0	0	6,229
Issuance of restricted shares (in shares)		270,000
Stock-based compensation expense	4,599
Stock-based compensation expense	4,599	0	4,599	0	0	0
Exercise of stock options	111	0	(1,051)	0	0	1,162
Exercise of stock options (in shares)		50,000
Balance at Mar. 31, 2013	276,916	465	467,096	(163,235)	7,694	(35,104)
Balance (in shares) at Mar. 31, 2013		44,989,000
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(68,503)	0	0	(68,503)	0	0
Other comprehensive income (loss)	10,490	0	0	0	10,490	0
Issuance of restricted shares	(178)	0	(3,164)	0	0	2,986
Issuance of restricted shares (in shares)		129,000
Stock-based compensation expense	2,909
Stock-based compensation expense	2,909	0	2,909	0	0	0
Exercise of stock options	250	0	(1,814)	0	0	2,064
Exercise of stock options (in shares)		89,000
Balance at Mar. 31, 2014	221,884	465	465,027	(231,738)	18,184	(30,054)
Balance (in shares) at Mar. 31, 2014		45,207,000
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(14,143)	0	0		0	0
Other comprehensive income (loss)	(46,980)	0	0	0	(46,980)	0
Issuance of restricted shares	(615)	0	(8,238)	0	0	7,623
Issuance of restricted shares (in shares)		239,000
Stock-based compensation expense	4,512
Stock-based compensation expense	4,512	0		0	0	0
Exercise of stock options	24	0	(110)	0	0	134
Exercise of stock options (in shares)		6,000
Balance at Mar. 31, 2015	$ 164,682	$ 465	$ 461,191	$ (245,881)	$ (28,796)	$ (22,297)
Balance (in shares) at Mar. 31, 2015		45,452,000

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Income Taxes - Narrative (Details) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2012
Operating Loss Carryforwards [Line Items]
Increase (decrease) in valuation allowance	$ 21,700,000	$ 20,000,000	$ 20,000,000
Period of cumulative loss for determination of full valuation allowance	3 years
Unremitted foreign earnings	18,502,000	0
Unrecognized Tax Benefits	6,377,000	5,691,000	5,395,000	6,321,000
Unrecognized income tax benefits that would affect the Company's effective income tax rate, if recognized	1,700,000
Estimated decrease in total unrecognized tax benefit related to uncertain tax positions	1,100,000
Accrued interest and penalties	300,000	400,000
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	392,800,000
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	471,900,000
Operating loss carryforwards of foreign subsidiaries expiring in one year, if unused	3,000,000
Operating loss carryforwards, expiration period	1 year
Foreign subsidiaries in Finland, Italy, Portugal and Sweden
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	57,700,000
Valuation Allowance for Deferred Tax Assets
Operating Loss Carryforwards [Line Items]
Valuation allowance and reserves	$ 167,594,000	$ 189,276,000	$ 169,270,000	$ 149,306,000

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Restructuring (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 13,017	$ 14,122	$ 18,719
Manufacturing and sales office relocation costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2,672	3,555	2,349
Personnel reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	10,345	10,567	16,370
Solid Capacitors [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3,297	8,108	7,335
Film and Electrolytic
Restructuring Cost and Reserve [Line Items]
Restructuring charges	8,221	5,657	9,621
Europe and Asia [Member] | Manufacturing and sales office relocation costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	500
Mexico and Macedonia [Member] | Film and Electrolytic | Manufacturing and sales office relocation costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	300
Landsberg Germany [Member] | Personnel reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4,100		2,800
Germany | Solid Capacitors [Member] | Manufacturing and sales office relocation costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	400
Portugal | Personnel reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges		4,500	1,100
Restructuring and Related Cost, Number of Positions Eliminated		126
Portugal | Solid Capacitors [Member] | Manufacturing and sales office relocation costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,400
Corporate Headquarters [Member] | Personnel reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,100	1,100
Other Restructuring [Member] | Personnel reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	9,952
Restructuring Reserve, Period Increase (Decrease)	12,225
Restructuring and Related Cost, Expected Cost Remaining	2,273
Other Restructuring [Member] | Europe [Member] | Personnel reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	6,918
Restructuring Reserve, Period Increase (Decrease)	7,819
Restructuring and Related Cost, Expected Cost Remaining	901
Other Restructuring [Member] | Corporate Headquarters [Member] | Personnel reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,144
Restructuring Reserve, Period Increase (Decrease)	1,956
Restructuring and Related Cost, Expected Cost Remaining	812
Other Restructuring [Member] | Solid Capacitors [Member] | Personnel reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,890
Restructuring Reserve, Period Increase (Decrease)	2,450
Restructuring and Related Cost, Expected Cost Remaining	560
Cassia Integrazione Guadagni Straordinaria [Member] | Personnel reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 400
Cassia Integrazione Guadagni Straordinaria [Member] | Maximum [Member] | Personnel reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring Plan Number of Employees Covered		170

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Income/Loss Per Share (Details 2) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Assumed conversion of employee stock options
Common stock equivalents that could potentially dilute net income per basic share in the future, but were not included in the computation of diluted earnings per share because the impact would have been antidilutive
Common stock equivalents	1,783	1,761	1,996
Assumed conversion of Platinum Warrant
Common stock equivalents that could potentially dilute net income per basic share in the future, but were not included in the computation of diluted earnings per share because the impact would have been antidilutive
Common stock equivalents	6,287	6,704	6,836

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of the Company's intangible assets

The following table highlights the Company's intangible assets (amounts in thousands):

	March 31, 2015				March 31, 2014
	Carrying Amount		Accumulated Amortization		Carrying Amount		Accumulated Amortization
Indefinite Lived Intangible Assets:
Trademarks	$	7,207	$	—	$	7,207	$	—
Amortizing Intangibles:
Purchased technology, customer relationships and patents (3 - 18 years)	40,489		14,414		44,428		14,451
	$	47,696	$	14,414	$	51,635	$	14,451

Summary of changes in carrying amount of goodwill

The changes in the carrying amount of goodwill for the years ended March 31, 2015 and 2014 are as follows (amounts in thousands):

	Fiscal Year 2015					Fiscal Year 2014
	Solid Capacitors		Film and Electrolytic			Solid Capacitors		Film and Electrolytic
Gross balance at beginning of fiscal year
Goodwill	$	35,584	$	1,092		$	35,584	$	1,092
Accumulated impairment losses	—		(1,092		)	—		(1,092		)
Net balance at the end of the year	$	35,584	$	—		$	35,584	$	—
Impairment charges	$	—	$	—		$	—	$	—
Balance at the end of the year
Goodwill	$	35,584	$	1,092		$	35,584	$	1,092
Accumulated impairment losses	—		(1,092		)	—		(1,092		)
Balance at the end of the year, net	$	35,584	$	—		$	35,584	$	—

Goodwill and Intangible Assets

The following table highlights the Company's intangible assets (amounts in thousands):

	March 31, 2015				March 31, 2014
	Carrying Amount		Accumulated Amortization		Carrying Amount		Accumulated Amortization
Indefinite Lived Intangible Assets:
Trademarks	$	7,207	$	—	$	7,207	$	—
Amortizing Intangibles:
Purchased technology, customer relationships and patents (3 - 18 years)	40,489		14,414		44,428		14,451
	$	47,696	$	14,414	$	51,635	$	14,451

For fiscal years ended March 31, 2015, 2014 and 2013 amortization related to intangibles was $2.1 million, $2.1 million and $2.3 million, respectively. The weighted-average useful life of amortized intangibles was 16 years in the fiscal years ended March 31, 2015 and 2014. The weighted-average period prior to the next renewal for patents was 2.5 years and 3.5 years in the fiscal years ended March 31, 2015 and 2014, respectively. No other intangible classes have renewal or extension periods. Estimated amortization of intangible assets for the each of the next five fiscal years is $2.1 million and, thereafter, amortization will total $15.6 million.

For fiscal year 2015, the Company completed its impairment test on goodwill and intangible assets with indefinite useful lives as of January 1, 2015 and concluded that goodwill and indefinite-lived assets were not impaired.

In fiscal year 2013, the Company's annual goodwill and other indefinite-lived intangible asset impairment test resulted in a $1.1 million goodwill impairment charge, which represented all of the goodwill related to the KEMET Foil Manufacturing, LLC ("KEMET Foil") reporting unit due to reduced earnings and cash flows caused by macro-economic factors and excess capacity in our industry.

The changes in the carrying amount of goodwill for the years ended March 31, 2015 and 2014 are as follows (amounts in thousands):

	Fiscal Year 2015					Fiscal Year 2014
	Solid Capacitors		Film and Electrolytic			Solid Capacitors		Film and Electrolytic
Gross balance at beginning of fiscal year
Goodwill	$	35,584	$	1,092		$	35,584	$	1,092
Accumulated impairment losses	—		(1,092		)	—		(1,092		)
Net balance at the end of the year	$	35,584	$	—		$	35,584	$	—
Impairment charges	$	—	$	—		$	—	$	—
Balance at the end of the year
Goodwill	$	35,584	$	1,092		$	35,584	$	1,092
Accumulated impairment losses	—		(1,092		)	—		(1,092		)
Balance at the end of the year, net	$	35,584	$	—		$	35,584	$	—

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Acquisitions - Assets Acquired and Liabilities Assumed (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Feb. 21, 2012
Allocations of the aggregate purchase price
Goodwill	$ 35,584	$ 35,584
Niotan Incorporated
Allocations of the aggregate purchase price
Cash			153
Accounts receivable			479
Inventories			7,305
Prepaid expenses			186
Property, plant and equipment			15,122
Goodwill			35,584
Intangible assets			22,420
Deferred income taxes			311
Other noncurrent assets			1,303
Current liabilities			(873)
Long-term liabilities			(18)
Total net assets acquired			$ 81,972

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Income/Loss Per Share

12 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Income/Loss Per Share

Income/Loss Per Share

Basic earnings per share calculation is based on the weighted-average number of common shares outstanding. Diluted earnings per share calculation is based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of common stock include stock options and Platinum Warrant.     

The following table presents the basic and diluted weighted-average number of shares of common stock (amounts in thousands, except per share data):

	Fiscal Years Ended March 31,
	2015			2014			2013
Numerator
Income (loss) from continuing operations	$	(19,522	)	$	(64,869	)	$	(78,512	)
Income (loss) from discontinued operations, net of income tax expense (benefit) of $1,976, $(98) and $37, respectively	5,379			(3,634		)	(3,670		)
Net income (loss)	$	(14,143	)	$	(68,503	)	$	(82,182	)
Denominator:
Weighted-average common shares outstanding:
Basic	45,381			45,102			44,897
Assumed conversion of employee stock options	—			—			—
Assumed conversion of Platinum Warrant	—			—			—
Weighted-average shares outstanding (diluted)	45,381			45,102			44,897
Net income (loss) per basic share:
Income (loss) from continuing operations	$	(0.43	)	$	(1.44	)	$	(1.75	)
Income (loss) from discontinued operations, net of income tax expense (benefit)	$	0.12		$	(0.08	)	$	(0.08	)
Net income (loss)	$	(0.31	)	$	(1.52	)	$	(1.83	)
Net income (loss) per diluted share:
Income (loss) from continuing operations	$	(0.43	)	$	(1.44	)	$	(1.75	)
Income (loss) from discontinued operations, net of income tax expense (benefit)	$	0.12		$	(0.08	)	$	(0.08	)
Net income (loss)	$	(0.31	)	$	(1.52	)	$	(1.83	)

Common stock equivalents that could potentially dilute net income per basic share in the future, but were not included in the computation of diluted earnings per share because the impact would have been antidilutive, were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015	2014	2013
Assumed conversion of employee stock options	1,783	1,761	1,996
Assumed conversion of Platinum Warrant	6,287	6,704	6,836

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Investment in NEC TOKIN (Tables)

12 Months Ended

Mar. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Reconciliation between NEC TOKIN and KEMET's equity investment loss

A reconciliation between NEC TOKIN's net loss and KEMET's equity investment loss follows (in thousands):

	Fiscal Year Ended March 31, 2015			Fiscal Year Ended March 31, 2014			Two Months Ended March 31, 2013
NEC TOKIN net income (loss)	$	(24,091	)	$	(42,937	)	$	(2,216	)
KEMET's equity ownership %	34		%	34		%	34		%
Equity income (loss) from NEC TOKIN before Adjustments	$	(8,191	)	$	(14,599	)	$	(753	)
Adjustments:
Amortization and depreciation	(2,270		)	(1,390		)	(247		)
Gain on sale of long-lived assets adjustment	—			(5,998		)	—
Loss on impairment of long-lived assets adjustment	—			14,643			—
Inventory valuation adjustment	—			254			(254		)
Indemnity asset	8,500			—			—
Inventory profit elimination	(208		)	—			—
Equity income (loss) from NEC TOKIN	$	(2,169	)	$	(7,090	)	$	(1,254	)

A reconciliation between NEC TOKIN's net assets and KEMET's equity investment balance follows (in thousands):

	March 31, 2015			March 31, 2014
Investment in NEC TOKIN	$	45,016		$	46,419
Purchase price accounting basis adjustment:
Property, plant and equipment	3,334			7,325
Technology	(10,889		)	(16,261		)
Long-term debt	(2,707		)	(4,754		)
Goodwill	(7,082		)	(9,326		)
Indemnity asset for legal investigation	(8,500		)	—
Inventory profit elimination	208			—
Other	(39		)	(952		)
KEMET's 34% interest of NEC TOKIN's equity	$	19,341		$	22,451

Summarized financial information for NEC TOKIN follows (in thousands):

	March 31, 2015		March 31, 2014
Current assets	$	223,495	$	245,709
Noncurrent assets	273,785		302,161
Current liabilities	143,523		120,929
Noncurrent liabilities	296,873		360,908

	Fiscal Year March 31, 2015			Fiscal Year March 31, 2014			Two Months Ended March 31, 2013
Net sales	$	487,282		$	490,369		$	82,772
Gross profit	103,773			86,227			9,147
Net income (loss)	(24,091		)	(42,937		)	(2,216		)

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Income/Loss Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Numerator
Income (loss) from continuing operations	$ (19,847)	$ 3,078	$ 7,730	$ (10,483)	$ (14,550)	$ (4,744)	$ (11,945)	$ (33,630)	$ (19,522)	$ (64,869)	$ (78,512)
Income (loss) from discontinued operations, net of income tax expense (benefit) of $1,976, $(98) and $37, respectively	0	(164)	(1,400)	6,943	103	(1,076)	(1,151)	(1,510)	5,379	(3,634)	(3,670)
Net income (loss)	$ (19,847)	$ 2,914	$ 6,330	$ (3,540)	$ (14,447)	$ (5,820)	$ (13,096)	$ (35,140)	$ (14,143)	$ (68,503)	$ (82,182)
Weighted-average common shares outstanding:
Basic (in shares)									45,381	45,102	44,897
Assumed conversion of employee stock options (in shares)									0	0	0
Assumed conversion of Platinum Warrant (in shares)									0	0	0
Weighted-average shares outstanding (diluted)									45,381	45,102	44,897
Net income (loss) per basic share:
Loss from continuing operations (in dollars per share)	$ (0.44)	$ 0.07	$ 0.17	$ (0.23)	$ (0.32)	$ (0.11)	$ (0.26)	$ (0.75)	$ (0.43)	$ (1.44)	$ (1.75)
Income (loss) from discontinued operations (in dollars per share)	$ 0.00	$ 0.00	$ (0.03)	$ 0.15	$ 0.00	$ (0.02)	$ (0.03)	$ (0.03)	$ 0.12	$ (0.08)	$ (0.08)
Net income (loss) (in dollars per share)	$ (0.44)	$ 0.07	$ 0.14	$ (0.08)	$ (0.32)	$ (0.13)	$ (0.29)	$ (0.78)	$ (0.31)	$ (1.52)	$ (1.83)
Net income (loss) per diluted share:
Loss from continuing operations (in dollars per share)	$ (0.44)	$ 0.06	$ 0.15	$ (0.23)	$ (0.32)	$ (0.11)	$ (0.26)	$ (0.75)	$ (0.43)	$ (1.44)	$ (1.75)
Income (loss) from discontinued operations (in dollars per share)	$ 0.00	$ 0.00	$ (0.03)	$ 0.15	$ 0.00	$ (0.02)	$ (0.03)	$ (0.03)	$ 0.12	$ (0.08)	$ (0.08)
Net income (loss) (in dollars per share)	$ (0.44)	$ 0.06	$ 0.12	$ (0.08)	$ (0.32)	$ (0.13)	$ (0.29)	$ (0.78)	$ (0.31)	$ (1.52)	$ (1.83)

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Quarterly Results of Operations (Unaudited)

12 Months Ended

Mar. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

Quarterly Results of Operations (Unaudited)

The following table sets forth certain quarterly information for fiscal years 2015 and 2014. This information, in the opinion of the Company's management, reflects all adjustments (consisting only of normal recurring adjustments) necessary to present fairly this information when read in conjunction with the consolidated financial statements and notes thereto included elsewhere herein (amounts in thousands except per share data):

	Fiscal Year 2015 Quarters Ended
	Jun-30			Sep-30			Dec-31			Mar-31
Net sales	$	212,881		$	215,293		$	201,310		$	193,708
Operating income (loss) (1)	(606		)	12,770			9,302			912
Income (loss) from continuing operations	(10,483		)	7,730			3,078			(19,847		)
Income (loss) from discontinued operations	6,943			(1,400		)	(164		)	—
Net income (loss)	(3,540		)	6,330			2,914			(19,847		)
Net income (loss) per basic share:
Loss from continuing operations	$	(0.23	)	$	0.17		$	0.07		$	(0.44	)
Income (loss) from discontinued operations	$	0.15		$	(0.03	)	$	—		$	—
Net income (loss)	$	(0.08	)	$	0.14		$	0.07		$	(0.44	)
Net income (loss) per diluted share:
Income (loss) from continuing operations	$	(0.23	)	$	0.15		$	0.06		$	(0.44	)
Income (loss) from discontinued operations	$	0.15		$	(0.03	)	$	—		$	—
Net income (loss)	$	(0.08	)	$	0.12		$	0.06		$	(0.44	)

	Fiscal Year 2014 Quarters Ended
	Jun-30			Sep-30			Dec-31			Mar-31
Net sales	$	202,057		$	208,449		$	207,339		$	215,821
Operating income (loss) (1)	(18,212		)	1,585			3,623			(5,207		)
Income (loss) from continuing operations	(33,630		)	(11,945		)	(4,744		)	(14,550		)
Income (loss) from discontinued operations	(1,510		)	(1,151		)	(1,076		)	103
Net income (loss)	(35,140		)	(13,096		)	(5,820		)	(14,447		)
Net income (loss) per basic share:
Income (loss) from continuing operations	$	(0.75	)	$	(0.26	)	$	(0.11	)	$	(0.32	)
Income (loss) from discontinued operations	$	(0.03	)	$	(0.03	)	$	(0.02	)	$	—
Net income (loss)	$	(0.78	)	$	(0.29	)	$	(0.13	)	$	(0.32	)
Net income (loss) per diluted share:
Income (loss) from continuing operations	$	(0.75	)	$	(0.26	)	$	(0.11	)	$	(0.32	)
Income (loss) from discontinued operations	$	(0.03	)	$	(0.03	)	$	(0.02	)	$	—
Net income (loss)	$	(0.78	)	$	(0.29	)	$	(0.13	)	$	(0.32	)

_______________________________________________________________________________

(1) Operating income (loss) as a percentage of net sales fluctuates from quarter to quarter due to a number of factors, including net sales fluctuations, foreign currency exchange, restructuring charges, product mix, the timing and expense of moving product lines to lower-cost locations, the write-down of long lived assets, the net gain/loss on sales and disposals of assets and the relative mix of sales among distributors, original equipment manufacturers, and electronic manufacturing service providers.

XML

Goodwill and Intangible Assets - Narrative (Details) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Amortizing Intangibles:
Amortization charges	$ 2,100,000	$ 2,100,000	$ 2,300,000
Estimated amortization of intangible assets
2014	2,100,000
2015	2,100,000
2016	2,100,000
2017	2,100,000
2018	2,100,000
Thereafter	2,100,000
Total amortization	15,600,000
Goodwill and intangible assets
Goodwill impairment	0	0	1,092,000
Purchased technology, customer relationships and patents | Weighted-average
Amortizing Intangibles:
Useful life	16 years
Film and Electrolytic [Member]
Amortizing Intangibles:
Goodwill, Impaired, Accumulated Impairment Loss	$ 1,092,000	$ 1,092,000

XML

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Operating activities:
Net income (loss)	$ (14,143)	$ (68,503)	$ (82,182)
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	(5,644)	0	0
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Net cash provided by (used in) operating activities of discontinued operations	(679)	336	4,828
Depreciation and amortization	40,768	49,527	45,158
Amortization of debt discount and debt issuance costs	2,032	3,596	4,138
Gains (Losses) on Extinguishment of Debt	(1,003)	0	0
Equity loss from NEC TOKIN	2,169	7,090	1,254
Change in value of NEC TOKIN options	2,100	3,111	0
Net (gain) loss on sales and disposals of assets	(221)	32	18
Stock-based compensation expense	4,512	2,909	4,599
Pension and other post-retirement benefits	(13,283)	(78)	1,071
Deferred income taxes	(2,084)	(6,369)	(317)
Write down of long-lived assets	0	4,476	7,582
Write down of receivables	52	1,484	0
Goodwill impairment	0	0	1,092
Other, net	(7)	(521)	566
Changes in assets and liabilities:
Accounts receivable	8,220	(4,618)	4,882
Inventories	8,559	14,891	(323)
Prepaid expenses and other assets	(8,404)	3,748	(11,151)
Accounts payable	(2,879)	(2,070)	300
Accrued income taxes	(383)	172	(1,052)
Other operating liabilities	8,920	(9,737)	(3,290)
Net cash provided by (used in) operating activities	24,402	(6,746)	(22,827)
Investing activities:
Capital expenditures	(22,232)	(32,147)	(46,174)
Investment in NEC TOKIN (excludes non cash investment)	0	0	(50,917)
Change in restricted cash	11,509	4,047	(15,284)
Proceeds from Divestiture of Businesses, Net of Cash Divested	9,564	0	0
Acquisitions, net of cash received			(50,917)
Proceeds from sale of assets	4,788	2,847	398
Net cash provided by (used in) investing activities	3,629	(25,253)	(111,977)
Financing activities:
Proceeds from revolving line of credit	42,340	21,000	0
Payments of revolving line of credit	(27,342)	(2,551)	0
Proceeds from issuance of debt	0	0	39,825
Deferred acquisition payments	(19,527)	(21,977)	(16,900)
Payment of long-term debt	(21,733)	(3,599)	(1,909)
Debt issuance costs	0	0	(275)
Proceeds from exercise of stock options	24	250	111
Payments for Repurchase of Common Stock	(630)	0	0
Net cash provided by (used in) financing activities	(26,868)	(6,877)	20,852
Net increase (decrease) in cash and cash equivalents	1,163	(38,876)	(113,952)
Effect of foreign currency fluctuations on cash	(2,730)	827	(591)
Cash and cash equivalents at beginning of fiscal year	57,929	95,978	210,521
Cash and cash equivalents at end of fiscal year	56,362	57,929	95,978
Supplemental Cash Flow Statement Information:
Interest paid, net of capitalized interest	39,008	38,809	32,232
Income taxes paid	6,611	5,521	6,029
Parent Company [Member]
Operating activities:
Net income (loss)	(14,143)	(68,503)	(82,182)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Equity loss from NEC TOKIN	0	0	0
Net (gain) loss on sales and disposals of assets	(10)	0	3
Write down of long-lived assets		0	0
Goodwill impairment			0
Changes in assets and liabilities:
Net cash provided by (used in) operating activities	39,575	7,724	(14,492)
Investing activities:
Capital expenditures	0	0	0
Change in restricted cash	0	0	0
Proceeds from Divestiture of Businesses, Net of Cash Divested	0
Acquisitions, net of cash received			0
Proceeds from sale of assets	0	0	0
Net cash provided by (used in) investing activities	0	0	0
Financing activities:
Proceeds from revolving line of credit	0	0
Payments of revolving line of credit	0	0
Proceeds from issuance of debt			39,825
Deferred acquisition payments	(18,527)	(20,977)	(15,900)
Payment of long-term debt	(20,417)	(3,583)	0
Debt issuance costs			(275)
Proceeds from exercise of stock options	24	250	111
Payments for Repurchase of Common Stock	(630)
Net cash provided by (used in) financing activities	(39,550)	(24,310)	23,761
Net increase (decrease) in cash and cash equivalents	25	(16,586)	9,269
Effect of foreign currency fluctuations on cash	(1)	0	0
Cash and cash equivalents at beginning of fiscal year	616	17,202	7,933
Cash and cash equivalents at end of fiscal year	$ 640	$ 616	$ 17,202

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	10,000	10,000
Preferred stock, issued shares	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	175,000	175,000
Common stock, issued shares	46,508	46,508
Treasury stock, shares	1,056	1,301

XML

Segment and Geographic Information

12 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company is organized into two business groups: Solid Capacitors and Film and Electrolytic based primarily on product lines. Each business group is responsible for their respective manufacturing operations and research and development efforts. All research and development expenses are direct costs to the respective business group.

Solid Capacitors

Operating in nine manufacturing sites in the United States, Mexico and China, Solid Capacitors primarily produces tantalum, aluminum, polymer and ceramic capacitors which are sold globally. Solid Capacitors also produces tantalum powder used in the production of tantalum capacitors and has a product innovation center in the United States.

Film and Electrolytic

Film and Electrolytic operates thirteen manufacturing sites throughout Europe, Asia, Mexico and the United States and produces film, paper, and electrolytic capacitors which are sold globally. In addition, the business group has product innovation centers in the United Kingdom, Italy, Germany and Sweden.

The following tables summarize information about each segment's net sales, operating income (loss), depreciation and amortization, capital expenditures and total assets (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Net sales:
Solid Capacitors	$	621,275		$	626,494		$	622,305
Film and Electrolytic	201,917			207,172			201,598
	$	823,192		$	833,666		$	823,903
Operating income (loss) (1)(2)(3):
Solid Capacitors	$	135,946		$	91,848		$	94,986
Film and Electrolytic	(16,685		)	(17,587		)	(31,109		)
Corporate	(96,883		)	(92,472		)	(98,957		)
	$	22,378		$	(18,211	)	$	(35,080	)
Depreciation and amortization:
Solid Capacitors	$	21,202		$	28,081		$	27,407
Film and Electrolytic	13,886			14,557			13,360
Corporate	5,680			6,889			4,391
	$	40,768		$	49,527		$	45,158
Capital expenditures:
Solid Capacitors	$	12,552		$	10,498		$	16,838
Film and Electrolytic	7,752			14,494			23,970
Corporate	1,928			7,155			5,366
	$	22,232		$	32,147		$	46,174

_______________________________________________________________________________

(1) Restructuring charges included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Total restructuring:
Solid Capacitors	$	3,297	$	8,108	$	7,335
Film and Electrolytic	8,221		5,657		9,621
Corporate	1,499		357		1,763
	$	13,017	$	14,122	$	18,719

(2) Impairment charges and write downs included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Impairment and write down of long-lived assets:
Solid Capacitors	$	—	$	3,920	$	3,348
Film and Electrolytic	—		556		5,326
	$	—	$	4,476	$	8,674

(3)    (Gain) loss on sales and disposals of assets included in Operating income (loss) were as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
(Gain) loss on sales and disposals of assets:
Solid Capacitors	$	606		$	(705	)	$	(161	)
Film and Electrolytic	(1,008		)	767			179
Corporate	181			(30		)	—
	$	(221	)	$	32		$	18

_______________________________________________________________________________

	March 31,
	2015		2014
Total assets:
Solid Capacitors	$	469,823	$	479,377
Film and Electrolytic	218,858		287,861
Corporate	64,111		76,429
	$	752,792	$	843,667

The following highlights net sales by geographic location (amounts in thousands):

	Fiscal Years Ended March 31,(1)
	2015		2014		2013
United States	$	238,840	$	245,032	$	228,975
Hong Kong	131,109		135,570		148,014
Germany	107,859		105,261		105,818
Europe (2)	58,879		70,895		82,021
China	65,289		67,460		70,696
Asia Pacific (2)	62,864		51,467		50,735
United Kingdom	32,127		36,085		34,188
Netherlands	38,853		33,581		24,568
Singapore	22,516		27,777		25,060
Italy	19,013		20,249		21,203
Hungary	22,745		18,332		13,554
Mexico	21,164		17,886		15,923
Other Countries (2)	1,934		4,071		3,148
	$	823,192	$	833,666	$	823,903

_______________________________________________________________________________

(1) Revenues are attributed to countries or regions based on the location of the customer. Net Sales to one customer exceeded 10% of total net sales as follows: $124.4 million, $128.4 million and $127.7 million in fiscal years 2015, 2014 and 2013, respectively. Solid Capacitor sales to one customer over 10% were $109.1 million, $115.5 million and $119.0 million in fiscal years 2015, 2014 and 2013, respectively. Film and Electrolytic sales to one customer over 10% were $15.3 million, $12.9 million and $8.7 million in fiscal years 2015, 2014 and 2013, respectively.

(2) Excluding the specific countries listed in this table, no country included in this caption exceeded 2% of consolidated net sales for fiscal years 2015, 2014 and 2013.

_______________________________________________________________________________

The following geographic information includes Property, plant and equipment, net, based on physical location (amounts in thousands):

	March 31,
	2015		2014
United States	$	59,754	$	64,754
Mexico	66,120		67,154
Italy	44,595		61,726
China	29,871		31,405
Portugal	17,352		23,817
Macedonia	13,726		21,044
Indonesia	5,335		6,026
Finland	1,439		2,280
United Kingdom	251		492
Other	11,198		13,950
	$	249,641	$	292,648

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Condensed Consolidating Financial Statements (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Net sales	$ 193,708	$ 201,310	$ 215,293	$ 212,881	$ 215,821	$ 207,339	$ 208,449	$ 202,057	$ 823,192	$ 833,666	$ 823,903
Operating costs and expenses:
Cost of sales									663,683	712,925	697,076
Selling, general and administrative expenses									98,533	95,856	107,620
Research and development									25,802	24,466	26,876
Restructuring charges									13,017	14,122	18,719
Write down of long-lived assets									0	4,476	7,582
Goodwill impairment									0	0	1,092
Net (gain) loss on sales and disposals of assets									(221)	32	18
Net (gain) loss on intercompany asset transfer										0
Total operating costs and expenses									800,814	851,877	858,983
Operating (loss) income	912	9,302	12,770	(606)	(5,207)	3,623	1,585	(18,212)	22,378	(18,211)	(35,080)
Interest income									(15)	(195)	(139)
Interest expense									40,701	40,962	41,331
Non-operating (income) expense, net									(6,182)	(2,681)	(2,295)
Equity in earnings of subsidiaries									0	0	0
Income (loss) from continuing operations before income taxes and equity loss from NEC TOKIN									(12,126)	(56,297)	(73,977)
Income tax expense									5,227	1,482	3,281
Income (loss) from continuing operations before equity loss from NEC TOKIN									(17,353)	(57,779)	(77,258)
Equity income (loss) from NEC TOKIN									(2,169)	(7,090)	(1,254)
Income (loss) from continuing operations	(19,847)	3,078	7,730	(10,483)	(14,550)	(4,744)	(11,945)	(33,630)	(19,522)	(64,869)	(78,512)
Income (loss) from discontinued operations, net of income tax expense (benefit) of $1,976, $(98) and $37, respectively	0	(164)	(1,400)	6,943	103	(1,076)	(1,151)	(1,510)	5,379	(3,634)	(3,670)
Net income (loss)	(19,847)	2,914	6,330	(3,540)	(14,447)	(5,820)	(13,096)	(35,140)	(14,143)	(68,503)	(82,182)
Parent
Condensed Financial Statements, Captions [Line Items]
Net sales									195	218	0
Operating costs and expenses:
Cost of sales									2,468	1,336	2,003
Selling, general and administrative expenses									41,783	41,359	30,838
Research and development									436	229	190
Restructuring charges									0	0	0
Write down of long-lived assets										0	0
Goodwill impairment											0
Net (gain) loss on sales and disposals of assets									(10)	0	3
Net (gain) loss on intercompany asset transfer										0
Total operating costs and expenses									44,677	42,924	33,034
Operating (loss) income									(44,482)	(42,706)	(33,034)
Interest income									0	(12)	(24)
Interest expense									38,632	40,069	40,651
Non-operating (income) expense, net									(40,903)	(40,642)	(27,233)
Equity in earnings of subsidiaries									(27,998)	26,332	35,754
Income (loss) from continuing operations before income taxes and equity loss from NEC TOKIN									(14,213)	(68,453)	(82,182)
Income tax expense									(70)	0	0
Income (loss) from continuing operations before equity loss from NEC TOKIN									(14,143)	(68,453)	(82,182)
Equity income (loss) from NEC TOKIN									0	0	0
Income (loss) from continuing operations									(14,143)	(68,453)	(82,182)
Income (loss) from discontinued operations, net of income tax expense (benefit) of $1,976, $(98) and $37, respectively									0	(50)	0
Net income (loss)									(14,143)	(68,503)	(82,182)
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net sales									978,705	966,369	905,755
Operating costs and expenses:
Cost of sales									823,429	878,308	823,170
Selling, general and administrative expenses									70,074	61,896	68,711
Research and development									17,588	16,849	20,028
Restructuring charges									3,310	2,858	7,266
Write down of long-lived assets										1,118	438
Goodwill impairment											1,092
Net (gain) loss on sales and disposals of assets									181	(625)	98
Net (gain) loss on intercompany asset transfer										14,564
Total operating costs and expenses									914,582	974,968	920,803
Operating (loss) income									64,123	(8,599)	(15,048)
Interest income									0	(4)	(43)
Interest expense									998	1,130	972
Non-operating (income) expense, net									46,969	36,741	27,623
Equity in earnings of subsidiaries										0	0
Income (loss) from continuing operations before income taxes and equity loss from NEC TOKIN									16,156	(46,466)	(43,600)
Income tax expense									576	(1,302)	636
Income (loss) from continuing operations before equity loss from NEC TOKIN									15,580	(45,164)	(44,236)
Equity income (loss) from NEC TOKIN									(2,169)	(7,090)	(1,254)
Income (loss) from continuing operations									13,411	(52,254)	(45,490)
Income (loss) from discontinued operations, net of income tax expense (benefit) of $1,976, $(98) and $37, respectively									102	(1,195)	0
Net income (loss)									13,513	(53,449)	(45,490)
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net sales									773,504	817,945	843,938
Operating costs and expenses:
Cost of sales									707,493	729,105	754,783
Selling, general and administrative expenses									46,181	47,643	50,981
Research and development									7,778	7,388	6,658
Restructuring charges									9,707	11,264	11,453
Write down of long-lived assets										3,358	7,144
Goodwill impairment											0
Net (gain) loss on sales and disposals of assets									(392)	657	(83)
Net (gain) loss on intercompany asset transfer										(14,564)
Total operating costs and expenses									770,767	784,851	830,936
Operating (loss) income									2,737	33,094	13,002
Interest income									(15)	(179)	(72)
Interest expense									1,071	(237)	(292)
Non-operating (income) expense, net									(12,248)	1,220	(2,685)
Equity in earnings of subsidiaries										0	0
Income (loss) from continuing operations before income taxes and equity loss from NEC TOKIN									13,929	32,290	16,051
Income tax expense									4,721	2,784	2,645
Income (loss) from continuing operations before equity loss from NEC TOKIN									9,208	29,506	13,406
Equity income (loss) from NEC TOKIN									0	0	0
Income (loss) from continuing operations									9,208	29,506	13,406
Income (loss) from discontinued operations, net of income tax expense (benefit) of $1,976, $(98) and $37, respectively									5,277	(2,389)	(3,670)
Net income (loss)									14,485	27,117	9,736
Reclassifications and Eliminations
Condensed Financial Statements, Captions [Line Items]
Net sales									(929,212)	(950,866)	(925,790)
Operating costs and expenses:
Cost of sales									(869,707)	(895,824)	(882,880)
Selling, general and administrative expenses									(59,505)	(55,042)	(42,910)
Research and development									0	0	0
Restructuring charges									0	0	0
Write down of long-lived assets										0	0
Goodwill impairment											0
Net (gain) loss on sales and disposals of assets									0	0	0
Net (gain) loss on intercompany asset transfer										0
Total operating costs and expenses									(929,212)	(950,866)	(925,790)
Operating (loss) income									0	0	0
Interest income									0	0	0
Interest expense									0	0	0
Non-operating (income) expense, net									0	0	0
Equity in earnings of subsidiaries									27,998	(26,332)	(35,754)
Income (loss) from continuing operations before income taxes and equity loss from NEC TOKIN									(27,998)	26,332	35,754
Income tax expense									0	0	0
Income (loss) from continuing operations before equity loss from NEC TOKIN									(27,998)	26,332	35,754
Equity income (loss) from NEC TOKIN									0	0	0
Income (loss) from continuing operations									(27,998)	26,332	35,754
Income (loss) from discontinued operations, net of income tax expense (benefit) of $1,976, $(98) and $37, respectively									0	0	0
Net income (loss)									$ (27,998)	$ 26,332	$ 35,754

XML

Income Taxes (Details 6) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Reconciliation of gross unrecognized tax benefits (excluding interest and penalties)
Beginning of fiscal year	$ 5,691	$ 5,395	$ 6,321
Additions for tax positions of the current year	1,115	639	35
Additions for tax positions of prior years	0	19	37
Reductions for tax positions of prior years	(56)	(28)	(640)
Lapse in statute of limitations	(203)	0	(358)
Settlements	(170)	(334)	0
End of fiscal year	$ 6,377	$ 5,691	$ 5,395

XML

Income Taxes (Details 4) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Change in net deferred income tax asset (liability)
Balance at the beginning of the period	$ 8,248,000
Deferred income taxes related to continuing operations (1)	2,084,000
Deferred income taxes related to other comprehensive income	(1,287,000)
Foreign currency translation	(1,655,000)
Balance at the end of the period	7,390,000	8,248,000
Tax expense (benefit) allocated to other comprehensive income		(300,000)
Valuation Allowance for Deferred Tax Assets
Annual activities included in the deferred tax valuation allowance
Balance at the beginning of the period	189,276,000	169,270,000	149,306,000
Charge to costs and expenses	(19,900,000)	(21,515,000)	(23,977,000)
Deductions	(1,782,000)	(1,509,000)	(4,013,000)
Balance at the end of the period	$ 167,594,000	$ 189,276,000	$ 169,270,000

XML

Document and Entity Information (USD $)	12 Months Ended
	Mar. 31, 2015	May 18, 2015	Sep. 30, 2014
Document and Entity Information
Entity Registrant Name	KEMET CORP
Entity Central Index Key	0000887730
Document Type	10-K
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 179,098,233
Entity Common Stock, Shares Outstanding		45,689,591
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY

XML

Pension and Other Post-retirement Benefit Plans

12 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Pension and Other Post-retirement Benefit Plans

Pension and Other Post-retirement Benefit Plans

The Company sponsors defined benefit pension plans which include six in Europe, one in Singapore and two in Mexico. The Company funds the pension liabilities in accordance with laws and regulations applicable to those plans.

In July 2012, Film and Electrolytic paid out retirement benefits which represented more than 20% of a plan's pension obligation. As a result, the Company recognized a settlement gain of $1.7 million. In the second half of fiscal year 2013, the Company recognized a curtailment loss of $2.0 million as a result of headcount reductions within a sales office, and this curtailment was allocated equally to each business group.

The Company has two post-retirement benefit plans: health care and life insurance benefits for certain retired United States employees who reached retirement age while working for the Company. The health care plan is contributory, with participants' contributions adjusted annually. The life insurance plan is non-contributory.

A summary of the changes in benefit obligations and plan assets is as follows (amounts in thousands):

	Pension						Other Benefits
	2015			2014			2015			2014
Change in Benefit Obligation
Benefit obligation at beginning of the year	$	42,715		$	39,096		$	785		$	799
Service cost	1,286			1,308			—			—
Interest cost	1,819			1,734			29			23
Plan participants' contributions	—			—			474			555
Plan amendments	1,006			285			—			—
Actuarial (gain) loss	13,673			(377		)	118			94
Foreign currency exchange rate change	(9,988		)	2,009			—			—
Gross benefits paid	(1,111		)	(1,302		)	(560		)	(686		)
Curtailments and settlements	(58		)	(38		)	—			—
Benefit obligation at end of year	$	49,342		$	42,715		$	846		$	785
Change in Plan Assets
Fair value of plan assets at beginning of year	$	9,946		$	8,806		$	—		$	—
Actual return on plan assets	1,737			260			—			—
Foreign currency exchange rate changes	(1,353		)	874			—			—
Employer contributions	1,303			1,346			86			131
Settlements	(39		)	(38		)	—			—
Plan participants' contributions	—			—			474			555
Gross benefits paid	(1,111		)	(1,302		)	(560		)	(686		)
Fair value of plan assets at end of year	$	10,483		$	9,946		$	—		$	—
Funded status at end of year
Fair value of plan assets	$	10,483		$	9,946		$	—		$	—
Benefit obligations	(49,342		)	(42,715		)	(846		)	(785		)
Amount recognized at end of year	$	(38,859	)	$	(32,769	)	$	(846	)	$	(785	)

The Company expects to contribute $1.5 million to the pension plans in fiscal year 2016, which includes direct contributions to be made for funded plans and benefit payments to be made for unfunded plans.

The Company does not prefund its post-retirement health care and life insurance benefit plans. As a result, the Company is responsible annually for the payment of benefits as incurred by the plans. The Company anticipates making payments of $98 thousand during fiscal year 2016.

Amounts recognized in the Consolidated Balance Sheets consist of the following (amounts in thousands):

	Pension						Other Benefits
	2015			2014			2015			2014
Current liability	$	(626	)	$	(615	)	$	(97	)	$	(88	)
Noncurrent liability	(38,233		)	(32,154		)	(749		)	(697		)
Amount recognized, end of year	$	(38,859	)	$	(32,769	)	$	(846	)	$	(785	)

Amounts recognized in Accumulated other comprehensive income (loss) consist of the following (amounts in thousands):

	Pension				Other Benefits
	2015		2014		2015			2014
Net actuarial loss (gain)	$	21,408	$	9,269	$	(1,159	)	$	(1,464	)
Prior service cost	1,300		310		—			—
Accumulated other comprehensive (income) loss	$	22,708	$	9,579	$	(1,159	)	$	(1,464	)

Although not reflected in the table above, the tax effect on the balances was $2.3 million and $2.2 million as of March 31, 2015 and 2014, respectively.

Components of benefit costs (credit) consist of the following (amounts in thousands):

	Pension									Other Benefits
	2015			2014			2013			2015			2014			2013
Net service cost	$	1,286		$	1,308		$	1,583		$	—		$	—		$	—
Interest cost	1,819			1,734			1,903			29			23			27
Expected return on plan assets	(480		)	(454		)	(656		)	—			—			—
Amortization:
Actuarial (gain) loss	277			318			544			(187		)	(259		)	(322		)
Prior service cost	17			4			20			—			—			—
Recurring activity	2,919			2,910			3,394			(158		)	(236		)	(295		)
One time expense (income)	(19		)	(32		)	266			—			—			—
Net periodic benefit cost (credit)	$	2,900		$	2,878		$	3,660		$	(158	)	$	(236	)	$	(295	)

The estimated amounts related to pensions that will be amortized from accumulated other comprehensive income into net periodic benefit costs in fiscal year 2016 are actuarial losses of $631 thousand, and prior service costs of $58 thousand.

The asset allocation for the Company's defined benefit pension plans at March 31, 2015 and the target allocation for 2015, by asset category, are as follows:

Asset Category	Target Allocation (%)	Plan Assets at March 31, 2015 (%)
Insurance (1)	10	6
International equities	30	35
International bonds	50	58
Other	10	1
Total	100	100

_______________________________________________________________________________

(1) Comprised of assets held by the defined benefit pension plan in Germany.

The Company's investment strategy for its defined benefit pension plans is to maximize long-term rate of return on plan assets within an acceptable level of risk in order to minimize the cost of providing pension benefits. The investment policy establishes a target allocation range for each asset class and the fund is managed within those ranges. The plans use a number of investment approaches including insurance products, equity and fixed income funds in which the underlying securities are marketable in order to achieve this target allocation. Certain plans invest solely in insurance products. The Company continuously monitors the performance of the overall pension asset portfolio, asset allocation policies, and the performance of individual pension asset managers and makes adjustments and changes, as required. The Company does not manage any assets internally, does not have any passive investments in index funds, and does not directly utilize futures, options, or other derivative instruments or hedging strategies with regard to the pension plans; however, the investment mandate of some pension asset managers allows the use of the foregoing as components of their portfolio management strategies.

The expected rate of return was determined by modeling the expected long-term rates of return for broad categories of investments held by the plan against a number of various potential economic scenarios.

Other changes in plan assets and benefit obligations recognized in Accumulated other comprehensive income (loss) are as follows (amounts in thousands):

	Pension									Other Benefits
	2015			2014			2013			2015		2014		2013
Current year actuarial (gain) loss	$	12,397		$	(190	)	$	3,669		$	118	$	95	$	(145	)
Foreign currency exchange rate changes	—			—			(238		)	—		—		—
Amortization of actuarial gain (loss)	(258		)	(286		)	(4,582		)	187		259		322
Current year prior service cost	1,006			285			—			—		—		—
Amortization of prior service cost	(17		)	(4		)	(101		)	—		—		—
Total recognized in other comprehensive income	$	13,128		$	(195	)	$	(1,252	)	$	305	$	354	$	177
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	16,028		$	2,683		$	2,408		$	147	$	118	$	(118	)

Each of these changes has been factored into the following benefit payments schedule for the next ten fiscal years. The Company expects to have benefit payments in the future as follows (amounts in thousands):

	Expected benefit payments
	2016		2017		2018		2019		2020		2021- 2025
Pension benefits	$	1,367	$	1,363	$	1,381	$	1,510	$	1,603	$	9,654
Other benefits	98		95		91		86		80		309
Total	$	1,465	$	1,458	$	1,472	$	1,596	$	1,683	$	9,963

The following weighted-average assumptions were used to determine the projected benefit obligation at the measurement date and the net periodic cost for the pension and post-retirement plan (amounts in thousands except percentages):

	Pension				Other Benefits
	2015		2014		2015			2014
Projected benefit obligation:
Discount rate	2.8	%	4.5	%	2.9		%	3.4		%
Rate of compensation increase	3.5	%	3.4	%	—		%	—		%
Health care cost trend on covered charges	—		—		7.0% decreasing to ultimate trend of 5% in 2019			7.0% decreasing to ultimate trend of 5% in 2018
Net periodic benefit cost:
Discount rate	4.6	%	4.5	%	3.4		%	2.8		%
Rate of compensation increase	3.4	%	3.5	%	—		%	—		%
Expected return on plan assets	4.9	%	4.9	%	—		%	—		%
Health care cost trend on covered charges	—		—		7.0% decreasing to ultimate trend of 5% in 2018			7.0% decreasing to ultimate trend of 5% in 2017
Sensitivity of retiree welfare results
Effect of a one percentage point increase in assumed health care cost trend:
—On total service and interest costs components					$	—		$	—
—On post-retirement benefits obligation					18			15
Effect of a one percentage point decrease in assumed health care cost trend:
—On total service and interest costs components					—			—
—On post-retirement benefits obligation					(17		)	(13		)

The measurement date used to determine pension and post-retirement benefits is March 31.

The Company evaluated input from its third-party actuary to determine the appropriate discount rate. The determination of the discount rate is based on various factors such as the rate on bonds, term of the expected payouts, and long-term inflation factors.

The following table sets forth by level, within the fair value hierarchy as described in Note 1, the pension plan's assets, required to be carried at fair value on a recurring basis as of March 31, 2015 and March 31, 2014 (amounts in thousands):

	Fair Value March 31, 2015		Fair Value Measurement Using						Fair Value March 31, 2014		Fair Value Measurement Using
			Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
Cash and cash equivalents	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Equity securities:
International equities	3,626		—		3,626		—		3,512		—		3,512		—
Fixed income securities:
International bonds	6,132		—		6,132		—		5,636		—		5,636		—
Insurance contracts	576		—		—		576		706		—		—		706
Other	149		—		149		—		92		—		92		—
	$	10,483	$	—	$	9,907	$	576	$	9,946	$	—	$	9,240	$	706

The table below sets forth a summary of changes in the fair value of the defined benefit pension plan's Level 3 assets for the fiscal year ended March 31, 2015 (amounts in thousands):

Balance at March 31, 2014	$	706
Actual return on plan assets	39
Employer contributions	366
Settlements	—
Benefits paid	(375		)
Foreign currency exchange rate change	(160		)
Balance at March 31, 2015	$	576

The Company also sponsors a deferred compensation plan for highly compensated employees. The plan is non-qualified and allows certain employees to contribute to the plan. Gains net of the Company matches related to the deferred compensation plan were $115 thousand in fiscal year 2015, $189 thousand in fiscal year 2014, and $141 thousand in fiscal year 2013. Total benefits accrued under this plan were $1.5 million and $1.6 million at March 31, 2015 and March 31, 2014, respectively.

In addition, the Company has a defined contribution retirement plan (the "Savings Plan") in which all United States employees who meet certain eligibility requirements may participate. A participant may direct the Company to contribute amounts, based on a percentage of the participant's compensation, to the Savings Plan through the execution of salary reduction agreements. In addition, the participants may elect to make after-tax contributions. The Company matches contributions to the Savings Plan up to 6% of the employee's salary. The Company made matching contributions of $2.2 million, $2.2 million and $2.5 million in fiscal years 2015, 2014, and 2013, respectively.

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Pension and Other Post-retirement Benefit Plans (Details 3) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Pension
Projected benefit obligation:
Discount rate	2.80%	4.50%
Rate of compensation increase	3.50%	3.40%
Net periodic benefit cost:
Discount rate	4.60%	4.50%
Rate of compensation increase	3.40%	3.50%
Expected return on plan assets	4.90%	4.90%
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation	18,000	15,000
Projected benefit obligation:
Discount rate	2.90%	3.40%
Rate of compensation increase	0.00%	0.00%
Health care cost trend on covered charges	7.00%	7.00%
Ultimate health care cost trend on covered charges	5.00%	5.00%
Net periodic benefit cost:
Discount rate	3.40%	2.80%
Rate of compensation increase	0.00%	0.00%
Expected return on plan assets	0.00%	0.00%
Health care cost trend on covered charges	7.00%	7.50%
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate	5.00%	5.00%
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components	0	0
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components	0	0
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation	17,000	13,000

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Income Taxes (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Deferred tax assets:
Net operating loss carry forwards	$ 162,691	$ 173,377
Sales allowances and inventory reserves	21,696	19,447
Medical and employee benefits	15,982	10,035
Tax credits	10,025	10,838
Stock-based compensation	3,578	4,439
Other	3,411	4,338
Total deferred tax assets before valuation allowance	217,383	222,474
Less valuation allowance	(167,594)	(189,276)
Total deferred tax assets	49,789	33,198
Undistributed Earnings of Foreign Subsidiaries	(18,502)	0
Deferred tax liabilities:
Depreciation and differences in basis	(12,166)	(13,299)
Amortization of intangibles and debt discounts	(7,261)	(7,420)
Deferred Tax Liabilities, Investments	(1,860)	(1,104)
Non-amortized intangibles	(2,556)	(2,549)
Other	(54)	(578)
Total deferred tax liabilities	(42,399)	(24,950)
Net deferred tax asset	$ 7,390	$ 8,248

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Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Net sales	$ 193,708	$ 201,310	$ 215,293	$ 212,881	$ 215,821	$ 207,339	$ 208,449	$ 202,057	$ 823,192	$ 833,666	$ 823,903
Operating costs and expenses:
Cost of sales									663,683	712,925	697,076
Selling, general and administrative expenses									98,533	95,856	107,620
Research and development									25,802	24,466	26,876
Restructuring charges									13,017	14,122	18,719
Write down of long-lived assets									0	4,476	7,582
Impairment of Long-Lived Assets Held-for-use									0	4,476	7,300
Goodwill impairment									0	0	1,092
Net (gain) loss on sales and disposals of assets									(221)	32	18
Total operating costs and expenses									800,814	851,877	858,983
Operating (loss) income	912	9,302	12,770	(606)	(5,207)	3,623	1,585	(18,212)	22,378	(18,211)	(35,080)
Other (income) expense:
Interest income									(15)	(195)	(139)
Interest expense									40,701	40,962	41,331
Nonoperating Income (Expense)									6,182	2,681	2,295
Non-operating (income) expense, net									(6,182)	(2,681)	(2,295)
Income (loss) from continuing operations before income taxes and equity loss from NEC TOKIN									(12,126)	(56,297)	(73,977)
Income tax expense									5,227	1,482	3,281
Income (loss) from continuing operations before equity loss from NEC TOKIN									(17,353)	(57,779)	(77,258)
Equity income (loss) from NEC TOKIN									(2,169)	(7,090)	(1,254)
Income (loss) from continuing operations	(19,847)	3,078	7,730	(10,483)	(14,550)	(4,744)	(11,945)	(33,630)	(19,522)	(64,869)	(78,512)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	0	(164)	(1,400)	6,943	103	(1,076)	(1,151)	(1,510)	5,379	(3,634)	(3,670)
Net income (loss)	$ (19,847)	$ 2,914	$ 6,330	$ (3,540)	$ (14,447)	$ (5,820)	$ (13,096)	$ (35,140)	$ (14,143)	$ (68,503)	$ (82,182)
Net income (loss) per basic share:
Loss from continuing operations (in dollars per share)	$ (0.44)	$ 0.07	$ 0.17	$ (0.23)	$ (0.32)	$ (0.11)	$ (0.26)	$ (0.75)	$ (0.43)	$ (1.44)	$ (1.75)
Income (loss) from discontinued operations (in dollars per share)	$ 0.00	$ 0.00	$ (0.03)	$ 0.15	$ 0.00	$ (0.02)	$ (0.03)	$ (0.03)	$ 0.12	$ (0.08)	$ (0.08)
Net income (loss) (in dollars per share)	$ (0.44)	$ 0.07	$ 0.14	$ (0.08)	$ (0.32)	$ (0.13)	$ (0.29)	$ (0.78)	$ (0.31)	$ (1.52)	$ (1.83)
Net income (loss) per diluted share:
Loss from continuing operations (in dollars per share)	$ (0.44)	$ 0.06	$ 0.15	$ (0.23)	$ (0.32)	$ (0.11)	$ (0.26)	$ (0.75)	$ (0.43)	$ (1.44)	$ (1.75)
Income (loss) from discontinued operations (in dollars per share)	$ 0.00	$ 0.00	$ (0.03)	$ 0.15	$ 0.00	$ (0.02)	$ (0.03)	$ (0.03)	$ 0.12	$ (0.08)	$ (0.08)
Net income (loss) (in dollars per share)	$ (0.44)	$ 0.06	$ 0.12	$ (0.08)	$ (0.32)	$ (0.13)	$ (0.29)	$ (0.78)	$ (0.31)	$ (1.52)	$ (1.83)
Weighted-average shares outstanding:
Basic (in shares)									45,381	45,102	44,897
Diluted (in shares)									45,381	45,102	44,897

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Restructuring

12 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

In the second quarter of fiscal year 2010, the Company initiated the first phase of a plan to restructure the Film and Electrolytic Business Group ("Film and Electrolytic") and to reduce overhead within the Company. Since that time, the restructuring plan has been expanded to all business groups and includes implementing programs to make the Company more competitive by removing excess capacity, moving production to lower cost locations, and eliminating unnecessary costs throughout the Company.

A summary of the expenses aggregated on the Consolidated Statements of Operations line item "Restructuring charges" in the fiscal years ended March 31, 2015, 2014 and 2013, is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Manufacturing and sales office relocation costs	$	2,672	$	3,555	$	2,349
Personnel reduction costs	10,345		10,567		16,370
Restructuring charges	$	13,017	$	14,122	$	18,719

Fiscal Year Ended March 31, 2015

The Company incurred $13.0 million in restructuring charges in the fiscal year ended March 31, 2015 including $10.3 million of personnel reduction costs. The personnel reduction costs were due to the following: $4.1 million related to planned headcount reductions in Europe (primarily in Landsberg, Germany) as the Company relocates production to lower cost regions; $3.2 million is related to a restructuring plan initiated in Italy whereby the Company will reduce the non-manufacturing labor headcount by 50 employees; $1.9 million related to the relocation of certain Solid Capacitor manufacturing from Matamoros, Mexico to Victoria, Mexico; and $1.1 million related to headcount reductions taken as the Company begins to outsource its information technology function.

The following table summarizes the open severance plans as of March 31, 2015 (amounts in thousands):

	Total Expected Severance		Fiscal Year 2015 Expense		Amount to be Incurred
Europe (primarily Italy and Germany)	$	7,819	$	6,918	$	901
Corporate IT outsourcing	1,956		1,144		812
Matamoros Solid Capacitor	2,450		1,890		560
Total	$	12,225	$	9,952	$	2,273

The $2.7 million relocation costs include $1.4 million for the exit of solid capacitors in Evora, Portugal and the relocation of certain Solid Capacitors manufacturing operations from Evora, Portugal to Victoria, Mexico. In addition, there is $0.4 million for the Landsberg, Germany shut-down including relocating equipment to Pontecchio, Italy; $0.3 million for relocation of certain F&E lines from Monterrey, Mexico and Skopje, Macedonia to Suzhou, China; and $0.5 million for other costs related to shut-downs in Europe and Asia.

Fiscal Year Ended March 31, 2014

The Company incurred $14.1 million in restructuring charges in the fiscal year ended March 31, 2014 including $10.6 million related to personnel reduction costs which is primarily comprised of the following: $1.9 million related to the closure of a portion of our innovation center in the U.S.; $1.2 million related to the reduction of the Solid Capacitor production workforce in Mexico; $1.1 million related to the Company’s initiative to reduce overhead; $0.5 million in termination benefits associated with converting the Weymouth, United Kingdom manufacturing facility into a technology center; $4.5 million related to headcount reductions of 126 employees in Evora, Portugal due to the relocation of certain Solid Capacitors manufacturing operations to Mexico; $0.9 million is related to a headcount reduction of 31 employees due to the consolidation of manufacturing facilities in Italy and $0.4 million related to an additional Cassia Integrazione Guadagni Straordinaria (“CIGS”) plan in Italy.

The additional expense related to CIGS is as a result of an agreement with the labor union which allowed the Company to place up to 170 workers, on a rotation basis, on the CIGS plan to save labor costs. CIGS is a temporary plan to save labor costs whereby a company may temporarily “lay off” employees while the government continues to pay their wages for a maximum of 12 months during the program. The employees who are in CIGS are not working, but are still employed by the Company. Only employees that are not classified as management or executive level personnel can participate in the CIGS program and upon termination of the plan, the affected employees return to work.

In addition to these personnel reduction costs, the Company incurred manufacturing relocation costs of $3.6 million due to the consolidation of Film and Electrolytic manufacturing facilities within Italy and relocation of Film and Electrolytic manufacturing equipment to Evora, Portugal and Skopje, Macedonia and Solid Capacitors manufacturing equipment to Mexico.

Fiscal Year Ended March 31, 2013

Restructuring charges in the fiscal year ended March 31, 2013 include personnel reduction costs of $16.4 million and manufacturing relocation costs of $2.3 million. The personnel reduction costs are comprised of the following: $2.8 million in termination benefits associated with converting the Landsberg, Germany manufacturing facility into a technology center; $2.9 million in termination benefits associated with converting the Weymouth, United Kingdom manufacturing facility into a technology center; $1.5 million for reductions in production workforce in Mexico; $1.1 million for reductions in production workforce in Portugal; $0.5 million for headcount reductions at an innovation center; $2.7 million for reductions in administrative overhead primarily in the Corporate headquarters and $4.9 million for reductions in production workforce and administrative overhead across the Company.

In addition to these personnel reduction costs, the Company incurred manufacturing relocation costs of $1.8 million for relocation of equipment to Bulgaria, China, Macedonia and Mexico and for the consolidation of manufacturing operations within Italy and $0.6 million in lease termination costs related to the closure of a sales office.

A reconciliation of the beginning and ending liability balances for restructuring charges included in the line items "Accrued expenses" and "Other non-current obligations" on the Consolidated Balance Sheets were as follows (amounts in thousands):

	Personnel Reductions			Manufacturing and Sales Office Relocation Costs
Balance at March 31, 2012	$	11,474		$	—
Costs charged to expense	16,370			2,349
Costs paid or settled	(13,976		)	(1,782		)
Change in foreign exchange	(359		)	—
Balance at March 31, 2013	13,509			567
Costs charged to expense	10,567			3,555
Costs paid or settled	(18,235		)	(4,122		)
Change in foreign exchange	376			—
Balance at March 31, 2014	6,217			—
Costs charged to expense	10,345			2,672
Costs paid or settled	(7,995		)	(2,672		)
Change in foreign exchange	(1,328		)	—
Balance at March 31, 2015	$	7,239		$	—

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Discontinued Operations

12 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

The Film and Electrolytic business group ("Film and Electrolytic”) completed the sale of its machinery division in April 2014, which resulted in a gain of $5.6 million on the sale of the business (after income tax expense) offset by a loss from machinery operations of $0.3 million during the fiscal year ended March 31, 2015 resulting in net income from discontinued operations of $5.4 million.

Net sales and net operating loss from the Company’s discontinued operation for years ended March 31, 2015, 2014 and 2013 were as follows (in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Net sales	$	104		$	11,489		$	19,051
Operating income (loss)	(265		)	(3,730		)	(4,203		)

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Commitments and Contingencies

12 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Company's leases are primarily for distribution facilities or sales offices that expire principally between 2015 and 2023. A number of leases require the Company to pay certain executory costs (taxes, insurance, and maintenance) and contain certain renewal and purchase options. Annual rental expenses for operating leases were included in results of operations and were $7.6 million, $9.9 million and $10.1 million in fiscal years 2015, 2014, and 2013, respectively.

Future minimum lease payments over the next five fiscal years and thereafter under non-cancellable operating leases at March 31, 2015, are as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2016			2017		2018		2019		2020		Thereafter
Minimum lease payments	$	5,221		$	2,879	$	2,135	$	1,144	$	401	$	1,272
Sublease rental income	(21		)	—		—		—		—		—
Net minimum lease payments	$	5,200		$	2,879	$	2,135	$	1,144	$	401	$	1,272

The Company or its subsidiaries are at any one time parties to a number of lawsuits arising out of their respective operations, including workers' compensation or work place safety cases, some of which involve claims of substantial damages. Although there can be no assurance, based upon information known to the Company, the Company does not believe that any liability which might result from an adverse determination of such lawsuits would have a material adverse effect on the Company's financial condition or results of operations.

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Stock-Based Compensation

12 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company's stock-based compensation plans are broad-based, long-term retention programs intended to attract and retain talented employees and align stockholder and employee interests.

The major components of stock-based compensation expense are as follows (amounts in thousands):

	Fiscal Year Ended March 31, 2015						Fiscal Year Ended March 31, 2014						Fiscal Year Ended March 31, 2013
	Stock Options		Restricted Stock		LTIPs		Stock Options		Restricted Stock		LTIPs		Stock Options		Restricted Stock		LTIPs
Cost of sales	$	233	$	269	$	1,075	$	421	$	62	$	523	$	710	$	445	$	356
Selling, general and administrative expenses	306		787		1,547		413		580		712		872		1,303		725
Research and development	13		3		279		5		—		193		58		—		130
	$	552	$	1,059	$	2,901	$	839	$	642	$	1,428	$	1,640	$	1,748	$	1,211

Employee Stock Options

At March 31, 2015, the Company had four stock option plans that reserved shares of common stock for issuance to executives and key employees: the 1992 Key Employee Stock Option Plan, the 1995 Executive Stock Option Plan, the 2004 Long-Term Equity Incentive Plan (collectively, the "Prior Plans") and the 2011 Omnibus Equity Incentive Plan (as amended by the 2014 Amendment and Restatement of the KEMET Corporation 2011 Omnibus Equity Incentive Plan) (the "2011 Incentive Plan"). All of these plans were approved by the Company's stockholders. The 2011 Incentive Plan authorized the grant of up to 7.4 million shares of the Company's common stock, which is comprised of 6.6 million shares under the new plan and 0.8 million shares which remained under the Prior Plans. The 2011 Incentive Plan authorizes the Company to provide equity-based compensation in the form of (1) stock options, including incentive stock options, entitling the optionee to favorable tax treatment under Section 422 of the Code; (2) stock appreciation rights; (3) restricted stock and restricted stock units; (4) other share-based awards; and (5) performance awards. Options issued under these plans vest within one to three years and expire ten years from the grant date. For the stock options granted to the Company's Chief Executive Officer on January 27, 2010, 50% vested on June 30, 2014 and 50% will vest on June 30, 2015. If available, the Company issues shares of Common Stock from treasury stock upon exercise of stock options and vesting of restricted stock units. The Company has no plans to purchase additional shares in conjunction with its employee stock option program in the near future.

Employee stock option activity for fiscal year 2015 is as follows (amounts in thousands, except exercise price, fair value and contractual life):

	Options		Weighted- Average Exercise Price
Outstanding at March 31, 2014	1,651		$	9.15
Granted	—		—
Exercised	(6	)	4.33
Forfeited	(53	)	6.20
Expired	(141	)	17.15
Outstanding at March 31, 2015	1,451		8.49
Exercisable at March 31, 2015	1,146		$	9.33
Remaining weighted average contractual life of options exercisable (years)			5.2
Remaining weighted average contractual life of options outstanding (years)			5.8

At March 31, 2015 and 2014, the weighted average grant-date fair value of non-vested shares was $2.73 and $3.13, respectively. The weighted average grant-date fair value of shares vested and forfeited during fiscal year 2015 was $3.50 and $3.25, respectively. The total estimated fair value of shares vested during fiscal years 2015, 2014 and 2013 was $1.0 million, $1.1 million and $1.7 million, respectively. The intrinsic value of stock options exercised in fiscal years 2015, 2014, and 2013 was zero, $0.2 million and $0.2 million, respectively.

As of March 31, 2015, the intrinsic value related to options outstanding was $0.3 million. The intrinsic value of options currently exercisable was $0.3 million. Total unrecognized compensation cost, net of estimated forfeitures, related to non-vested options was $0.3 million as of March 31, 2015. This cost is expected to be recognized over a weighted-average period of 0.9 years. At March 31, 2015 and 2014, the weighted average exercise price of stock options expected to vest was $5.35 and $5.84, respectively. The Company measures the fair value of each employee stock option grant at the date of grant using a Black-Scholes option pricing model. This model requires the input of assumptions regarding a number of complex and subjective variables that will usually have a significant impact on the fair value estimate.

The following table summarizes the weighted average assumptions used in the Black-Scholes valuation model to value stock option grants:

	Fiscal Years Ended March 31,
	2015	2014		2013
Assumptions:
Expected volatility	N/A	59.8	%	70.9	%
Risk-free interest rate	N/A	1.0	%	0.5	%
Expected option lives in years	N/A	4.0		4.0
Dividend yield	N/A	—		—

The expected volatility is based on a historical volatility calculation of the Company's stock price. The risk-free rate is based on the U.S. Treasury yield with a maturity commensurate with the expected term. The expected term is based on the Company's historical option term which considers the weighted-average vesting, contractual term and vesting schedule. In addition, stock-based compensation expense is calculated based on the number of awards that are ultimately expected to vest, and therefore has been reduced for estimated forfeitures. The Company's estimate of expected forfeitures is based on the Company's actual historical annual forfeiture rate of 2.0%. The estimated forfeiture rate, which is evaluated each balance sheet date throughout the life of the award, provides a time-based adjustment of forfeited shares. The estimated forfeiture rate is reassessed at each balance sheet date and may change based on new facts and circumstances. The dividend yield is based on a set dividend rate of 0.0% as the Company has not paid and does not anticipate paying dividends.

All option plans provide that options to purchase shares be supported by the Company's authorized but unissued common stock or treasury stock. All restricted stock and performance awards are also supported by the Company's authorized but unissued common stock or treasury stock. The prices of the options granted pursuant to these plans are not less than 100% of the value of the shares on the date of the grant.

Performance Vesting Stock Options

During fiscal year 2006, the Company issued 166,667 performance awards with a weighted-average exercise price of $24.15 to the Chief Executive Officer which will entitle him to receive shares of common stock if and when the stock price maintains certain thresholds. These awards are open ended until they vest and will have a ten-year life after vesting or will expire on the third year following retirement, whichever comes first. Effective March 4, 2010, 83,333 of these awards were voluntarily relinquished and no concurrent grant, replacement award or other valuable consideration was provided.

Restricted Stock Units

Restricted stock unit activity for fiscal year 2015 is as follows (amounts in thousands except fair value):

	Shares		Weighted- average Fair Value on Grant Date
Non-vested restricted stock at March 31, 2014	308		$	6.62
Granted	859		4.12
Vested	(150	)	5.63
Forfeited	(17	)	9.19
Non-vested restricted stock at March 31, 2015	1,000		4.57

The Company grants restricted stock units to members of the Board of Directors, the Chief Executive Officer and a limited group of executives. In fiscal year 2015, restricted stock units granted to the Board of Directors vest in one year, restricted stock units granted to certain officers vest over 4 years and restricted stock units granted under the key manager stock program vest approximately 33% per year over three years. Once vested, restricted stock units are converted into restricted shares of common stock, except for restricted stock units granted to members of the Board of Directors, who can elect to defer settlement of the restricted stock units to a later date.  Restricted shares cannot be sold until 90 days after the Chief Executive Officer, the executive or the member of the Board of Directors, as applicable, resigns from his or her position, or until the individual achieves the targeted ownership under the Company's stock ownership guidelines, and only to the extent that such ownership exceeds the target. As of March 31, 2015 and 2014, unrecognized compensation costs related to the unvested restricted stock share based compensation arrangements granted were $3.1 million and $0.8 million, respectively. The expense is being recognized over the respective vesting periods.

Long-term Incentive Plans ("LTIP")

Historically the Board of Directors of the Company has approved annual Long Term Incentive Plans which cover two year periods. A portion of the LTIPs awarded restricted stock units which vest over the course of three years from the anniversary of the establishment of the plan and a portion of the award is based upon the achievement of an Adjusted EBITDA target for the two-year period. At the time of the award, the individual plans entitle the participants to receive cash or restricted stock units, or a combination of both. The Company assesses the likelihood of meeting the Adjusted EBITDA financial metric on a quarterly basis and adjusts compensation expense to match expectations. Any related liability (for the cash portion of the LTIP) is reflected in the line item "Accrued expenses" on the Consolidated Balance Sheets and any restricted stock commitment is reflected in the line item "Additional paid-in capital" on the Consolidated Balance Sheets. The performance portion of the 2014/2015 LTIP was achieved which will result in 85 thousand shares to be issued in both fiscal years 2016 and 2017 (subject to participants' continued employment with KEMET). Under the performance component of the 2015/2016 LTIP the Company could issue 282 thousand shares if the two-year Adjusted EBITDA measure is achieved as of March 31, 2016 (potentially more shares could be issued if financial results exceed the two-year Adjusted EBITDA target).

The following is the time based vesting schedule of restricted stock units under each respective LTIP, subject to participants' continued employment with KEMET (shares in thousands):

	2015/2016 (1)	2014/2015	2013/2014
Time-based award vested fiscal year 2015	—	154	97
Performance-based award vesting fiscal year 2016 (2)	124	139	90
Performance-based award vesting fiscal year 2017 (2)	124	143	—
Performance-based award vesting fiscal year 2018 (2)	128	—	—

(1)     Potential performance-based award assuming the target is achieved.

(2)    Subject to participants' continued employment with KEMET.

In the Operating activities section of the Consolidated Statements of Cash Flows, stock-based compensation expense was treated as an adjustment to net income (loss) for fiscal years 2015, 2014 and 2013.

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Stock-Based Compensation (Details 2) (Stock Options, USD $)	12 Months Ended
	Mar. 31, 2015
Stock Options
Options
Outstanding at the beginning of the period (in shares)	1,651,000
Granted (in shares)	0
Exercised (in shares)	(6,000)
Forfeited (in shares)	(53,000)
Expired (in shares)	(141,000)
Outstanding at the end of the period (in shares)	1,451,000
Exercisable (in shares)	1,146,000
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 9.15
Granted (in dollars per share)	$ 0.00
Exercised (in dollars per share)	$ 4.33
Forfeited (in dollars per share)	$ 6.20
Expired (in dollars per share)	$ 17.15
Outstanding at the end of the period (in dollars per share)	$ 8.49
Exercisable (in dollars per share)	$ 9.33
Remaining weighted average contractual life of options exercisable (years)	5 years 2 months 12 days
Remaining weighted average contractual life of options outstanding (years)	5 years 9 months 18 days

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Goodwill and Intangible Assets

12 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the years ended March 31, 2015 and 2014 are as follows (amounts in thousands):

	Fiscal Year 2015					Fiscal Year 2014
	Solid Capacitors		Film and Electrolytic			Solid Capacitors		Film and Electrolytic
Gross balance at beginning of fiscal year
Goodwill	$	35,584	$	1,092		$	35,584	$	1,092
Accumulated impairment losses	—		(1,092		)	—		(1,092		)
Net balance at the end of the year	$	35,584	$	—		$	35,584	$	—
Impairment charges	$	—	$	—		$	—	$	—
Balance at the end of the year
Goodwill	$	35,584	$	1,092		$	35,584	$	1,092
Accumulated impairment losses	—		(1,092		)	—		(1,092		)
Balance at the end of the year, net	$	35,584	$	—		$	35,584	$	—

Goodwill and Intangible Assets

The following table highlights the Company's intangible assets (amounts in thousands):

	March 31, 2015				March 31, 2014
	Carrying Amount		Accumulated Amortization		Carrying Amount		Accumulated Amortization
Indefinite Lived Intangible Assets:
Trademarks	$	7,207	$	—	$	7,207	$	—
Amortizing Intangibles:
Purchased technology, customer relationships and patents (3 - 18 years)	40,489		14,414		44,428		14,451
	$	47,696	$	14,414	$	51,635	$	14,451

For fiscal years ended March 31, 2015, 2014 and 2013 amortization related to intangibles was $2.1 million, $2.1 million and $2.3 million, respectively. The weighted-average useful life of amortized intangibles was 16 years in the fiscal years ended March 31, 2015 and 2014. The weighted-average period prior to the next renewal for patents was 2.5 years and 3.5 years in the fiscal years ended March 31, 2015 and 2014, respectively. No other intangible classes have renewal or extension periods. Estimated amortization of intangible assets for the each of the next five fiscal years is $2.1 million and, thereafter, amortization will total $15.6 million.

For fiscal year 2015, the Company completed its impairment test on goodwill and intangible assets with indefinite useful lives as of January 1, 2015 and concluded that goodwill and indefinite-lived assets were not impaired.

In fiscal year 2013, the Company's annual goodwill and other indefinite-lived intangible asset impairment test resulted in a $1.1 million goodwill impairment charge, which represented all of the goodwill related to the KEMET Foil Manufacturing, LLC ("KEMET Foil") reporting unit due to reduced earnings and cash flows caused by macro-economic factors and excess capacity in our industry.

The changes in the carrying amount of goodwill for the years ended March 31, 2015 and 2014 are as follows (amounts in thousands):

	Fiscal Year 2015					Fiscal Year 2014
	Solid Capacitors		Film and Electrolytic			Solid Capacitors		Film and Electrolytic
Gross balance at beginning of fiscal year
Goodwill	$	35,584	$	1,092		$	35,584	$	1,092
Accumulated impairment losses	—		(1,092		)	—		(1,092		)
Net balance at the end of the year	$	35,584	$	—		$	35,584	$	—
Impairment charges	$	—	$	—		$	—	$	—
Balance at the end of the year
Goodwill	$	35,584	$	1,092		$	35,584	$	1,092
Accumulated impairment losses	—		(1,092		)	—		(1,092		)
Balance at the end of the year, net	$	35,584	$	—		$	35,584	$	—

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Restructuring (Details 2) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Restructuring Cost and Reserve [Line Items]
Document Period End Date	Mar. 31, 2015
Restructuring charges	$ 13,017,000	$ 14,122,000	$ 18,719,000
Lease termination costs related to the closure of a sales office			600,000
Solid Capacitors
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3,297,000	8,108,000	7,335,000
Corporate Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,499,000	357,000	1,763,000
Personnel reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	10,345,000	10,567,000	16,370,000
Personnel reduction costs | Mexican operations
Restructuring Cost and Reserve [Line Items]
Restructuring charges			1,500,000
Personnel reduction costs | Weymouth, United Kingdom
Restructuring Cost and Reserve [Line Items]
Restructuring charges		500,000	2,900,000
Personnel reduction costs | Portugal
Restructuring Cost and Reserve [Line Items]
Restructuring charges		4,500,000	1,100,000
Number of employees eliminated		126
Personnel reduction costs | Italy
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3,200,000	900,000
Number of employees eliminated	50	31,000,000
Personnel reduction costs | Landsberg, Germany
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4,100,000		2,800,000
Personnel reduction costs | Corporate headquarters
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,100,000	1,100,000
Personnel reduction costs | Solid Capacitors | Mexican operations
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,900,000	1,200,000
Personnel reduction costs | Innovation center
Restructuring Cost and Reserve [Line Items]
Restructuring charges			500,000
Workforce reductions and administrative overhead		1,900,000
Personnel reduction costs | Corporate Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			2,700,000
Personnel reduction costs | Corporate Segment [Member] | All Countries [Domain]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			4,900,000
Personnel reduction costs | Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	9,952,000
Personnel reduction costs | Other Restructuring [Member] | Corporate headquarters
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,144,000
Personnel reduction costs | Other Restructuring [Member] | Europe [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	6,918,000
Personnel reduction costs | Other Restructuring [Member] | Solid Capacitors
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,890,000
Personnel reduction costs | Cassia Integrazione Guadagni Straordinaria [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		400,000
Personnel reduction costs | Cassia Integrazione Guadagni Straordinaria [Member] | Maximum
Restructuring Cost and Reserve [Line Items]
Number of employees covered under Cassia Integrazione Guadagni Straordinaria plan		170
Personnel reduction costs | Cassia Integrazione Guadagni Straordinaria [Member] | Maximum | Italy
Restructuring Cost and Reserve [Line Items]
Restructuring Plan Term		12 months
Manufacturing and sales office relocation costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2,672,000	3,555,000	2,349,000
Manufacturing and sales office relocation costs | China and Mexico
Restructuring Cost and Reserve [Line Items]
Restructuring charges			1,800,000
Manufacturing and sales office relocation costs | Solid Capacitors | Portugal
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1,400,000

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Impairment Charges

12 Months Ended

Mar. 31, 2014

Impairment Charges

Impairment Charges

Impairment Charges

During fiscal years 2015, 2014 and 2013, the Company incurred impairment charges of zero, $4.5 million, and $7.6 million, respectively. The impairment charges are recorded on the Consolidated Statements of Operations line item “Write down of long-lived assets” in fiscal years 2015, 2014 and 2013.

As a part of the ongoing restructuring activities, the Company has relocated certain Solid Capacitor manufacturing operations from the Evora, Portugal facility to a manufacturing facility in Mexico and the remaining Solid Capacitor equipment in Portugal was disposed. During fiscal year 2013, using an income approach to estimate the fair value of assets to be disposed, the Company incurred impairment charges totaling $3.1 million ($0.07 per basic and diluted share) related to the Solid Capacitors restructuring activities. In fiscal year 2014, Solid Capacitors incurred $3.9 million ($0.09 per basic and diluted share) in additional impairment charges due to a decrease in forecasted revenues because production was relocated to Mexico sooner than originally planned. In addition, during fiscal year 2014, Film and Electrolytic incurred impairment charges totaling $0.6 million ($0.01 per basic and diluted share) related to manufacturing equipment in Italy.

Also in fiscal year 2013, in connection with the consolidation of two manufacturing facilities within Italy, the Company incurred impairment charges totaling $4.2 million ($0.09 per basic and diluted share) related to the Film and Electrolytic Business Group ("Film and Electrolytic"). The Company obtained appraisals for each of these facilities indicating there was a decrease in the market price of the manufacturing facilities, and therefore, the carrying amounts for these manufacturing facilities were reviewed for recoverability. It was determined that the carrying amounts of the manufacturing facilities were not recoverable since they exceeded the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). The impairment was measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeded its fair value. The Company utilized the market approach to estimate fair value of the long-lived asset group.

In addition, in fiscal year 2013 the Company incurred a $0.3 million ($0.01 per basic and diluted share) charge related to the write-off of a trademark which is no longer utilized.

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Acquisitions

12 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Acquisitions

Acquisitions

Niotan Incorporated

On February 21, 2012, KEMET acquired all of the outstanding shares of Niotan Incorporated, whose name was subsequently changed to KEMET Blue Powder Corporation ("Blue Powder"), a manufacturer of tantalum powders, from an affiliate of Denham Capital Management LP. Blue Powder has its headquarters and principal operating location in Carson City, Nevada. KEMET paid an initial purchase price of $30.5 million (net of cash received) at the closing of the transaction. Additional deferred payments of $45 million were payable over a thirty-month period after the closing and a working capital adjustment of $0.4 million which was paid in April 2012. In fiscal years 2015, 2014 and 2013 KEMET made installment payments totaling $10.0 million, $20.0 million, and $15.0 million respectively. In addition, KEMET paid royalty payments for tantalum powder produced by Blue Powder, in an aggregate amount equal to $10.0 million. The Company determined that the royalty payments should be treated as part of the consideration for Blue Powder instead of a separate transaction because (i) it is paid to the selling shareholder who is not continuing with Blue Powder, (ii) it was based solely on the negotiation process and (iii) KEMET now owns the technology. The Company recorded goodwill of $35.6 million and amortizable intangibles of $22.4 million. The allocation of the purchase price to specific assets and liabilities was based on the relative fair value of all assets and liabilities. Factors contributing to the purchase price which resulted in the goodwill (which is not tax deductible) include market recognition of the world class quality of Blue Powder's tantalum powder, the Company's cost savings due to vertical integration and Blue Powder's ability to provide a constant and reliable supply of tantalum powder. Pro forma results are not presented because the acquisition was not material to the consolidated financial statements. Blue Powder is included within Solid Capacitors.

The total discounted purchase price for Blue Powder was $82.0 million which includes (amounts in thousands):

Cash at closing	$	30,656
Deferred payments (discounted)	41,938
Royalty payments (discounted)	8,975
Working capital adjustment	403
	$	81,972

The purchase price was determined through arms-length negotiations between representatives of the Company and Denham Capital Management LP.

The following table presents the final allocations of the aggregate purchase price based on the assets and liabilities estimated fair values (amounts in thousands):

	Fair Value
Cash	$	153
Accounts receivable	479
Inventories	7,305
Prepaid expenses	186
Property, plant and equipment	15,122
Goodwill	35,584
Intangible assets	22,420
Deferred income taxes	311
Other noncurrent assets	1,303
Current liabilities	(873		)
Long-term liabilities	(18		)
Total net assets acquired	$	81,972

The following table presents the amounts assigned to intangible assets (amounts in thousands except useful life data):

	Fair Value		Useful Life (years)
Developed technology	$	22,300	18
Software	120		4
	$	22,420

The useful life for developed technology of 18 years is based on the history of the underlying chemical processes and an estimate of the future economic benefit. The Company also considered that the technology was developed approximately 4 years prior to acquisition and considered functional obsolescence. The useful life for software is based upon its implementation in 2011 and took into consideration functional obsolescence.

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Investment in NEC TOKIN

12 Months Ended

Mar. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Investment in NEC TOKIN

Investment in NEC TOKIN

On March 12, 2012, KEMET Electronics Corporation ("KEC"), a wholly owned subsidiary of the Company, entered into a Stock Purchase Agreement (the "Stock Purchase Agreement") with NEC TOKIN Corporation ("NEC TOKIN"), a manufacturer of tantalum capacitors, electro-magnetic, electro-mechanical and access devices, to acquire 51% of the common stock of NEC TOKIN (which represents a 34% economic interest, as calculated based on the number of common shares held by KEC, directly and indirectly, in proportion to the aggregate number of common and preferred shares of NEC TOKIN as of such date) (the "Initial Purchase") from NEC Corporation ("NEC") of Japan. The transaction closed on February 1, 2013, at which time KEC paid a purchase price of $50.0 million for new shares of common stock of NEC TOKIN (the "Initial Closing"). The Company accounts for its investment in NEC TOKIN using the equity method for a non-consolidated variable interest entity since KEC does not have the power to direct significant activities of NEC TOKIN. The Company believes that the NEC TOKIN preferred stock represents in-substance common stock of NEC TOKIN and, as a result, its method of calculating KEC’s economic basis in NEC TOKIN is the appropriate basis on which to recognize its share of the earnings or loss of NEC TOKIN.

In connection with KEC's execution of the Stock Purchase Agreement, KEC entered into a Stockholders' Agreement (the "Stockholders' Agreement") with NEC TOKIN and NEC, which provides for restrictions on transfers of NEC TOKIN's capital stock, certain tag-along and first refusal rights on transfer, restrictions on NEC's ability to convert the preferred stock of NEC TOKIN held by it, certain management services to be provided to NEC TOKIN by KEC (or an affiliate of KEC) and certain board representation rights. KEC holds four of seven NEC TOKIN director positions. However, NEC has significant board rights.

Concurrent with execution of the Stock Purchase Agreement and the Stockholders' Agreement, KEC entered into an Option Agreement (the “Option Agreement”) with NEC, which was amended on August 29, 2014, whereby KEC had the right to purchase additional shares of NEC TOKIN common stock from NEC TOKIN for a purchase price of $50.0 million resulting in an economic interest of approximately 49% while maintaining ownership of 51% of NEC TOKIN's common stock (the "First Call Option") by providing notice of the First Call Option between the Initial Closing and April 30, 2015. Upon providing such First Call Option notice, but not before April 1, 2015, KEC could also have exercised a second option to purchase all outstanding capital stock of NEC TOKIN from its stockholders, primarily NEC, for a purchase price based on the greater of six times LTM EBITDA (as defined in the Option Agreement) less the previous payments and certain other adjustments, or the outstanding amount of NEC TOKIN's debt obligation to NEC (the "Second Call Option") by providing notice of the Second Call Option by May 31, 2018. The First and Second Call Options expired on April 30, 2015 without being exercised. From April 1, 2015 through May 31, 2018, NEC may require KEC to purchase all outstanding capital stock of NEC TOKIN from its stockholders, primarily NEC (the "Put Option"), provided that KEC's payment of the Put Option price is permitted under the 10.5% Senior Notes and Loan and Security Agreement. However, in the event that KEC issues new debt securities principally to refinance its outstanding 10.5% senior notes due 2018 and its currently outstanding credit agreement, including amounts to pay related fees and expenses and to use for general corporate purposes (“Refinancing Notes”), prior to NEC’s delivery of its notification of exercise of the Put Option, then the earliest date NEC may exercise the Put Option is automatically extended to the day immediately following the final scheduled maturity date of such Refinancing Notes, or in the event such Refinancing Notes are redeemed in full prior to such final scheduled maturity date, then on the day immediately following the date of such full redemption, but in any event beginning no later than November 1, 2019. If not previously exercised, the Put Option will expire on October 31, 2023.

The purchase price for the Put Option will be based on the greater of six times LTM EBITDA less previous payments and certain other adjustments, or the outstanding amount of NEC TOKIN's debt obligation to NEC as of the date the Put Option is exercised. The purchase price for the Put Option is reduced by the amount of NEC TOKIN's debt obligation to NEC which KEC will assume. The determination of the purchase price will be modified in the event there is a disagreement between NEC and KEC under the Stockholders' Agreement.

The Company has marked these options to fair value and in the fiscal year ended March 31, 2015 and 2014 recognized a $2.1 million and $3.1 million gain, respectively, which was included on the line item “Other expense, net” in the Consolidated Statement of Operations. The line item “Other assets” on the Consolidated Balance Sheets includes $5.7 million and $3.6 million, respectively as of March 31, 2015 and 2014 related to the options.

KEC's total investment in NEC TOKIN including the net call derivative described above on February 1, 2013 was $54.5 million which includes $50.0 million cash consideration plus approximately $4.5 million in transaction expenses (fees for legal, accounting, due diligence, investment banking and other various services necessary to complete the transactions). The Company has made an allocation of the aggregate purchase price, which were based upon estimates that the Company believes are reasonable.

Summarized financial information for NEC TOKIN follows (in thousands):

	March 31, 2015		March 31, 2014
Current assets	$	223,495	$	245,709
Noncurrent assets	273,785		302,161
Current liabilities	143,523		120,929
Noncurrent liabilities	296,873		360,908

	Fiscal Year March 31, 2015			Fiscal Year March 31, 2014			Two Months Ended March 31, 2013
Net sales	$	487,282		$	490,369		$	82,772
Gross profit	103,773			86,227			9,147
Net income (loss)	(24,091		)	(42,937		)	(2,216		)

A reconciliation between NEC TOKIN's net loss and KEMET's equity investment loss follows (in thousands):

	Fiscal Year Ended March 31, 2015			Fiscal Year Ended March 31, 2014			Two Months Ended March 31, 2013
NEC TOKIN net income (loss)	$	(24,091	)	$	(42,937	)	$	(2,216	)
KEMET's equity ownership %	34		%	34		%	34		%
Equity income (loss) from NEC TOKIN before Adjustments	$	(8,191	)	$	(14,599	)	$	(753	)
Adjustments:
Amortization and depreciation	(2,270		)	(1,390		)	(247		)
Gain on sale of long-lived assets adjustment	—			(5,998		)	—
Loss on impairment of long-lived assets adjustment	—			14,643			—
Inventory valuation adjustment	—			254			(254		)
Indemnity asset	8,500			—			—
Inventory profit elimination	(208		)	—			—
Equity income (loss) from NEC TOKIN	$	(2,169	)	$	(7,090	)	$	(1,254	)

A reconciliation between NEC TOKIN's net assets and KEMET's equity investment balance follows (in thousands):

	March 31, 2015			March 31, 2014
Investment in NEC TOKIN	$	45,016		$	46,419
Purchase price accounting basis adjustment:
Property, plant and equipment	3,334			7,325
Technology	(10,889		)	(16,261		)
Long-term debt	(2,707		)	(4,754		)
Goodwill	(7,082		)	(9,326		)
Indemnity asset for legal investigation	(8,500		)	—
Inventory profit elimination	208			—
Other	(39		)	(952		)
KEMET's 34% interest of NEC TOKIN's equity	$	19,341		$	22,451

The above basis differences (except Goodwill) are being amortized over the respective estimated life of the assets. As of March 31, 2015, KEC's maximum loss exposure as a result of its investments in NEC TOKIN is limited to the aggregate of the carrying value of the investment and any accounts receivable balance. For the fiscal year ended March 31, 2015 and 2014, KEMET recorded sales of $13.5 million and $6.0 million, respectively, to NEC TOKIN and NEC TOKIN recorded sales of $3.6 million and $1.8 million to KEMET for fiscal year ended March 31, 2015 and 2014, respectively. As of March 31, 2015 and 2014, KEMET’s accounts receivable balances with NEC TOKIN were $3.3 million and $2.0 million, respectively, and accounts payable balances were $0.8 million and $0.1 million, respectively.  In accordance with the Stockholders’ Agreement, KEC entered into a management services agreement to provide services for which KEC would be reimbursed.  As of March 31, 2015 and 2014, KEMET’s receivable balance under this agreement is $0.6 million and $0.7 million, respectively.

Beginning in March 2014, NEC TOKIN and certain of its subsidiaries have received inquiries, requests for information and other communications from government authorities in China, the United States, the European Commission, Japan, South Korea, Taiwan, Singapore and Brazil concerning alleged anti-competitive activities within the capacitor industry. The investigations are continuing at various stages. In addition, beginning in July 2014, NEC TOKIN and its subsidiary, NEC TOKIN America, Inc., have been named, along with more than 20 other capacitor manufacturers and subsidiaries, as defendants in purported antitrust class action suits by direct and indirect purchasers in the United States and Canada. As of March 31, 2015, NEC TOKIN has recorded an accrual for approximately $30.0 million based on its estimation of losses likely to result from certain of the investigations and civil litigation. KEMET, under equity method accounting, has established an indemnity asset for the $25.0 million indemnity under the Stock Purchase Agreement to be paid by NEC to NEC TOKIN (KEMET's portion is $8.5 million). NEC TOKIN could not estimate the total losses likely to result from all of the investigations and civil litigation because NEC TOKIN does not have sufficient information to be able to estimate the amount of all such losses.

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Acquisitions - Discounted Purchase Price (Details) (Niotan Incorporated, USD $) In Thousands, unless otherwise specified	0 Months Ended
	Feb. 21, 2012
Niotan Incorporated
Discounted purchase price
Cash at closing	$ 30,656
Deferred payments (discounted)	41,938
Royalty payments (discounted)	8,975
Working capital adjustment	403
Discounted purchase price	$ 81,972

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Stock-Based Compensation (Details 3) (Stock Options)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Stock Options
Assumptions:
Expected volatility		59.80%	70.90%
Risk-free interest rate		1.00%	0.50%
Expected option lives in years		4 years	4 years
Dividend yield	0.00%	0.00%	0.00%

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Acquisitions - Intangible Assets (Details) (Niotan Incorporated, USD $) In Thousands, unless otherwise specified	0 Months Ended
	Feb. 21, 2012
Schedule of the amounts assigned to intangible assets
Fair Value	$ 22,420
Developed technology
Schedule of the amounts assigned to intangible assets
Fair Value	22,300
Useful Life (years)	18 years
Software
Schedule of the amounts assigned to intangible assets
Fair Value	$ 120
Useful Life (years)	4 years

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Condensed Consolidating Financial Statements (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2012	May 05, 2010
Current assets:
Cash and cash equivalents	$ 56,362	$ 57,929	$ 95,978	$ 210,521
Accounts receivable, net	90,857	98,947
Intercompany receivable	0	0
Inventories, net	171,843	187,974
Prepaid expenses and other	41,503	36,871
Deferred income taxes	10,762	6,695
Current assets of discontinued operations	0	12,160
Total current assets	371,327	400,576
Property and equipment, net	249,641	292,648
Investment in NEC TOKIN	45,016	46,419
Investments in subsidiaries	0	0
Goodwill	35,584	35,584
Intangible assets, net	33,282	37,184
Restricted cash	1,775	13,512
Deferred income taxes	5,111	6,778
Other assets	11,056	10,130
Disposal Group, Including Discontinued Operation, Long Lived Assets, Noncurrent	0	836
Long-term intercompany receivable	0	0
Total assets	752,792	843,667
Current liabilities:
Current portion of long-term debt	962	7,297
Accounts payable, trade	69,785	74,818
Intercompany payable	0	0
Accrued expenses	60,456	76,468
Income taxes payable	1,017	980
Current liabilities of discontinued operations	0	7,269
Total current liabilities	132,220	166,832
Long-term debt, less current portion	390,409	391,292
Other non-current obligations	57,131	55,864
Deferred income taxes	8,350	5,203
Noncurrent liabilities of discontinued operations	0	2,592
Long-term intercompany payable	0	0
Stockholders' equity	164,682	221,884	276,916	358,996
Total liabilities and stockholders' equity	752,792	843,667
Parent
Current assets:
Cash and cash equivalents	640	616	17,202	7,933
Accounts receivable, net	0	0
Intercompany receivable	321,233	318,582
Inventories, net	0	0
Prepaid expenses and other	3,191	3,146
Deferred income taxes	0	0
Current assets of discontinued operations	0	0
Total current assets	325,064	322,344
Property and equipment, net	293	329
Investment in NEC TOKIN	0	0
Investments in subsidiaries	401,062	402,090
Goodwill	0	0
Intangible assets, net	0	0
Restricted cash	0	0
Deferred income taxes	0	0
Other assets	4,088	5,415
Disposal Group, Including Discontinued Operation, Long Lived Assets, Noncurrent	0	0
Long-term intercompany receivable	63,788	81,746
Total assets	794,295	811,924
Current liabilities:
Current portion of long-term debt	0	5,988
Accounts payable, trade	47	84
Intercompany payable	254,852	176,624
Accrued expenses	17,253	34,236
Income taxes payable	0	0
Current liabilities of discontinued operations	0	0
Total current liabilities	272,152	216,932
Long-term debt, less current portion	357,461	372,251
Other non-current obligations	0	857
Deferred income taxes	0	0
Noncurrent liabilities of discontinued operations	0	0
Long-term intercompany payable	0	0
Stockholders' equity	164,682	221,884
Total liabilities and stockholders' equity	794,295	811,924
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Percentage of ownership interest	100.00%
Current assets:
Cash and cash equivalents	33,094	22,200	52,056	178,205
Accounts receivable, net	35,535	49,462
Intercompany receivable	403,557	329,211
Inventories, net	119,221	119,340
Prepaid expenses and other	21,134	15,286
Deferred income taxes	5,031	1,022
Current assets of discontinued operations	0	0
Total current assets	617,572	536,521
Property and equipment, net	100,844	104,874
Investment in NEC TOKIN	45,016	46,419
Investments in subsidiaries	423,737	424,386
Goodwill	35,584	35,584
Intangible assets, net	26,998	28,380
Restricted cash	1,775	13,512
Deferred income taxes	971	1,010
Other assets	6,049	3,895
Disposal Group, Including Discontinued Operation, Long Lived Assets, Noncurrent	0	0
Long-term intercompany receivable	39,151	60,663
Total assets	1,297,697	1,255,244
Current liabilities:
Current portion of long-term debt	500	0
Accounts payable, trade	36,565	36,579
Intercompany payable	578,318	570,535
Accrued expenses	16,644	13,698
Income taxes payable	2,928	2,909
Current liabilities of discontinued operations	0	0
Total current liabilities	634,955	623,721
Long-term debt, less current portion	20,948	6,449
Other non-current obligations	2,987	3,311
Deferred income taxes	7,272	3,258
Noncurrent liabilities of discontinued operations	0	0
Long-term intercompany payable	63,789	81,747
Stockholders' equity	567,746	536,758
Total liabilities and stockholders' equity	1,297,697	1,255,244
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Percentage of capital stock	0.51
Current assets:
Cash and cash equivalents	22,628	35,113	26,720	24,383
Accounts receivable, net	55,322	49,485
Intercompany receivable	195,518	203,018
Inventories, net	52,622	68,634
Prepaid expenses and other	20,164	21,380
Deferred income taxes	5,731	5,673
Current assets of discontinued operations	0	12,160
Total current assets	351,985	395,463
Property and equipment, net	148,504	187,445
Investment in NEC TOKIN	0	0
Investments in subsidiaries	30,285	30,285
Goodwill	0	0
Intangible assets, net	6,284	8,804
Restricted cash	0	0
Deferred income taxes	4,140	5,768
Other assets	919	820
Disposal Group, Including Discontinued Operation, Long Lived Assets, Noncurrent	0	836
Long-term intercompany receivable	1,088	2,801
Total assets	543,205	632,222
Current liabilities:
Current portion of long-term debt	462	1,309
Accounts payable, trade	33,173	38,155
Intercompany payable	87,138	103,652
Accrued expenses	26,559	28,534
Income taxes payable	1,075	1,012
Current liabilities of discontinued operations	0	7,269
Total current liabilities	148,407	179,931
Long-term debt, less current portion	12,000	12,592
Other non-current obligations	54,144	51,696
Deferred income taxes	1,078	1,945
Noncurrent liabilities of discontinued operations	0	2,592
Long-term intercompany payable	40,238	63,463
Stockholders' equity	287,338	320,003
Total liabilities and stockholders' equity	543,205	632,222
Reclassifications and Eliminations
Current assets:
Cash and cash equivalents	0	0	0	0
Accounts receivable, net	0	0
Intercompany receivable	(920,308)	(850,811)
Inventories, net	0	0
Prepaid expenses and other	(2,986)	(2,941)
Deferred income taxes	0	0
Current assets of discontinued operations	0	0
Total current assets	(923,294)	(853,752)
Property and equipment, net	0	0
Investment in NEC TOKIN	0	0
Investments in subsidiaries	(855,084)	(856,761)
Goodwill	0	0
Intangible assets, net	0	0
Restricted cash	0	0
Deferred income taxes	0	0
Other assets	0	0
Disposal Group, Including Discontinued Operation, Long Lived Assets, Noncurrent	0	0
Long-term intercompany receivable	(104,027)	(145,210)
Total assets	(1,882,405)	(1,855,723)
Current liabilities:
Current portion of long-term debt	0	0
Accounts payable, trade	0	0
Intercompany payable	(920,308)	(850,811)
Accrued expenses	0	0
Income taxes payable	(2,986)	(2,941)
Current liabilities of discontinued operations	0	0
Total current liabilities	(923,294)	(853,752)
Long-term debt, less current portion	0	0
Other non-current obligations	0	0
Deferred income taxes	0	0
Noncurrent liabilities of discontinued operations	0	0
Long-term intercompany payable	(104,027)	(145,210)
Stockholders' equity	(855,084)	(856,761)
Total liabilities and stockholders' equity	$ (1,882,405)	$ (1,855,723)
10.5% Senior Notes
Condensed Financial Statements, Captions [Line Items]
Interest rate of senior notes (as a percent)	10.50%	10.50%			10.50%

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Acquisitions - Narrative (Details) (USD $)	0 Months Ended	12 Months Ended
	Feb. 21, 2012	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Acquisitions
Purchase price paid at closing (net of cash received)				$ 50,917,000
Goodwill		35,584,000	35,584,000
Niotan Incorporated
Acquisitions
Working capital adjustment	403,000
Purchase price paid at closing (net of cash received)	30,500,000
Goodwill	35,584,000
Intangible assets	22,420,000
Discounted purchase price	81,972,000
Additional deferred payments	45,000,000
Period of payment of additional deferred payments after the closing	30 months
Installment payment		10,000,000	20,000,000	15,000,000
Aggregate amount of quarterly royalty payments	10,000,000
Niotan Incorporated | Developed technology
Acquisitions
Intangible assets	22,300,000
Useful Life (years)	18 years
Period of completion of development of assets	4 years
Niotan Incorporated | Software
Acquisitions
Intangible assets	$ 120,000
Useful Life (years)	4 years

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Income Taxes (Details 5) (USD $)	12 Months Ended
	Mar. 31, 2015
U.S. research credits
Tax credit carryforwards
Tax credits	$ 916,000
Fiscal Year of Expiration	2023
Texas franchise tax credits
Tax credit carryforwards
Tax credits	3,304,000
Fiscal Year of Expiration	2026
Foreign Tax Authority [Member]
Tax credit carryforwards
Tax credits	5,805,000
Fiscal Year of Expiration	2017
Macedonia
Tax credit carryforwards
Income Tax Expense (Benefit)	$ 300,000

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Acquisitions (Tables) (Niotan Incorporated)

12 Months Ended

Mar. 31, 2015

Niotan Incorporated

Acquisitions

Schedule of components of total discounted purchase price

The total discounted purchase price for Blue Powder was $82.0 million which includes (amounts in thousands):

Cash at closing	$	30,656
Deferred payments (discounted)	41,938
Royalty payments (discounted)	8,975
Working capital adjustment	403
	$	81,972

Schedule of allocations of the aggregate purchase price based on the assets and liabilities estimated fair values

The following table presents the final allocations of the aggregate purchase price based on the assets and liabilities estimated fair values (amounts in thousands):

	Fair Value
Cash	$	153
Accounts receivable	479
Inventories	7,305
Prepaid expenses	186
Property, plant and equipment	15,122
Goodwill	35,584
Intangible assets	22,420
Deferred income taxes	311
Other noncurrent assets	1,303
Current liabilities	(873		)
Long-term liabilities	(18		)
Total net assets acquired	$	81,972

Schedule of the amounts assigned to intangible assets

The following table presents the amounts assigned to intangible assets (amounts in thousands except useful life data):

	Fair Value		Useful Life (years)
Developed technology	$	22,300	18
Software	120		4
	$	22,420

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Organization and Significant Accounting Policies Organization and Significant Accounting Policies (Details 5) (Other Benefits, USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Other Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components	$ 0	$ 0
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation	18,000	15,000
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components	0	0
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation	$ 17,000	$ 13,000

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Supplemental Balance Sheets and Statements of Operations Detail

12 Months Ended

Mar. 31, 2015

Disclosure Text Block Supplement [Abstract]

Supplemental Balance Sheets and Statements of Operations Detail

Supplemental Balance Sheets and Statements of Operations Detail (amounts in thousands)

	March 31,
	2015			2014
Accounts receivable:
Trade	$	115,504		$	123,607
Allowance for doubtful accounts reserve	(925		)	(1,401		)
Ship-from-stock and debit reserve	(19,360		)	(18,041		)
Returns reserves	(3,190		)	(2,993		)
Rebates reserves	(780		)	(1,035		)
Price protection reserves	(270		)	(125		)
Other	(122		)	(1,065		)
Accounts receivable, net	$	90,857		$	98,947

The Company has agreements with distributors and certain other customers that, under certain conditions, allow for returns of overstocked inventory, provide protection against price reductions initiated by the Company and grant other sales allowances. Allowances for these commitments are included in the Consolidated Balance Sheets as reductions in trade accounts receivable. The Company adjusts sales based on historical experience.

The following table presents the annual activities included in the allowance for these commitments:

Balance at March 31, 2012	$	17,463
Charged to operations	82,738
Write-offs	(81,621		)
Other	(62		)
Balance at March 31, 2013	18,518
Charged to operations	89,909
Write-offs	(83,911		)
Other	144
Balance at March 31, 2014	24,660
Charged to operations	91,091
Write-offs	(90,909		)
Other	(195		)
Balance at March 31, 2015	$	24,647

	March 31,
	2015			2014
Inventories:
Raw materials and supplies	$	83,372		$	90,968
Work in process	52,759			61,310
Finished goods	53,211			62,522
Inventory gross	189,342			214,800
Inventory reserves	(17,499		)	(26,826		)
Inventory, net	$	171,843		$	187,974

The following table presents the annual activities included in the inventory reserves:

Balance at March 31, 2012	$	17,144
Costs charged to expense	5,493
Write-offs	(3,836		)
Other	(337		)
Balance at March 31, 2013	18,464
Costs charged to expense	11,846
Write-offs	(3,880		)
Other	396
Balance at March 31, 2014	26,826
Costs charged to expense	9,291
Write-offs	(17,520		)
Other	(1,098		)
Balance at March 31, 2015	$	17,499

	Useful life (years)	March 31,
		2015			2014
Property, plant and equipment:
Land and land improvements	20	$	22,017		$	25,965
Buildings	20 - 40	149,451			163,062
Machinery and equipment	10	798,112			824,878
Furniture and fixtures	4 - 10	60,903			69,676
Construction in progress		21,260			14,754
Other		2,184			—
Total property and equipment		1,053,927			1,098,335
Accumulated depreciation		(804,286		)	(805,687		)
Property, plant and equipment, net		$	249,641		$	292,648

	March 31,
	2015		2014
Accrued expenses:
Salaries, wages, and related employee costs	$	26,117	$	23,596
Interest	15,678		15,735
Restructuring	6,591		6,217
Vacation	6,286		10,570
Deferred acquisition payments	—		19,153
Other	5,784		1,197
Total accrued expenses	$	60,456	$	76,468

	March 31,
	2015		2014
Other non-current obligations:
Pension plans	38,982		32,852
Employee separation liability	10,638		15,419
Deferred compensation	1,548		1,559
Long-term obligation on land purchase	1,594		2,388
Restructuring	648		—
Other	3,721		3,646
Total other non-current obligations	$	57,131	$	55,864

	Fiscal Years Ended March 31,
	2015			2014			2013
Non-operating (income) expense, net:
Net foreign exchange (gains) losses	(4,249		)	(304		)	(28		)
Change in value of NEC Tokin options	(2,100		)	(3,111		)	—
Gain on early extinguishment of debt	(1,003		)	—			—
Miscellaneous non-product income	—			—			(465		)
Offering memorandum fees	1,142			—			—
Other	28			734			(1,802		)
Total non-operating (income) expense, net	$	(6,182	)	$	(2,681	)	$	(2,295	)

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Derivatives (Notes)

12 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Hedging Foreign Currencies

Certain operating expenses at the Company's Mexican facilities are paid in Mexican pesos. In order to hedge a portion of these forecasted cash flows, the Company purchases foreign exchange contracts, with terms generally less than twelve months, to buy Mexican pesos for periods and amounts consistent with underlying cash flow exposures. These contracts are designated as cash flow hedges at inception and monitored for effectiveness on a routine basis. There were $23.6 million in peso contracts (notional value) outstanding at March 31, 2015.

Certain expenditures at the Company's Mexican facilities are paid in Japanese yen. In order to hedge a portion of these forecasted cash flows, the Company purchases foreign exchange contracts, with terms generally less than six months, to buy Japanese yen for periods and amounts consistent with underlying cash flow exposures. These contracts are designated as cash flow hedges at inception and monitored for effectiveness on a routine basis. There were $12.1 million in yen contracts (notional value) outstanding at March 31, 2015.

Certain sales are made in euros. In order to hedge a portion of these forecasted cash flows, management purchases foreign exchange contracts, with terms generally less than six months, to sell euros for periods and amounts consistent with the related underlying cash flow exposures. These contracts are designated hedges at inception and monitored for effectiveness on a routine basis. There were $13.8 million in euro contracts (notional value) outstanding at March 31, 2015.

Changes in the derivatives' fair values are deferred and recorded as a component of AOCI until the underlying transaction is recorded to the income statement. When the hedged item affects income, gains or losses are reclassified from AOCI to the Consolidated Statement of Operations as cost of goods sold for foreign exchange contracts to purchase Mexican pesos and Japanese yen, and as Net sales for foreign exchange contracts to sell euros. Any ineffectiveness, if material, in the Company's hedging relationships is recognized immediately as a loss, within the same income statement accounts as described above. Changes in derivative balances impact the line item "Prepaid and other assets" on the Consolidated Statements of Cash Flows.

The Company formally documents all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various hedge transactions.

In fiscal year 2015, the Company began using certain derivative instruments (i.e., foreign exchange contracts) to reduce exposures to the volatility of foreign currencies impacting revenues and the costs of its products. The Company did not have any foreign exchange contracts in fiscal year 2014. There was no impact on the Consolidated Statement of Operations in fiscal year 2015 as the program was initiated in the fourth quarter and there has been no ineffectiveness. The balance sheet classifications and fair value of derivative instruments as of March 31, 2015 are as follows (amounts in thousands):

	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance Sheet Caption	Fair Value (1)		Balance Sheet Caption	Fair Value (1)
Foreign exchange contracts	Prepaid and other	$	1,003	Accrued Expenses	$	—

______________________________________________________________________________

(1) Fair Value measured using Level 2 inputs by adjusting the market spot rate by forward points, based on the date of the contract. The spot rates and forward points used are based on an average rate from an actively traded market.

Unrealized gains and losses associated with the change in value of these financial instruments are recorded in Accumulated other comprehensive income (loss) ("AOCI"). The pre-tax impact on AOCI related to the change in value of these financial instruments is as follows (amounts in thousands):

	Fiscal Year Ended March 31,
	2015
Beginning of fiscal year	$	—
Current fiscal year unrealized gain (loss) related to the change in value of the financial instruments	1,003
Plus unrealized gain (loss) in AOCI that were recognized in the current fiscal year	—
Net change in AOCI related to financial instruments	1,003
End of fiscal year	$	1,003

Hedging Foreign Currencies

Certain operating expenses at the Company's Mexican facilities are paid in Mexican pesos. In order to hedge a portion of these forecasted cash flows, the Company purchases foreign exchange contracts, with terms generally less than twelve months, to buy Mexican pesos for periods and amounts consistent with underlying cash flow exposures. These contracts are designated as cash flow hedges at inception and monitored for effectiveness on a routine basis. There were $23.6 million in peso contracts (notional value) outstanding at March 31, 2015.

Certain expenditures at the Company's Mexican facilities are paid in Japanese yen. In order to hedge a portion of these forecasted cash flows, the Company purchases foreign exchange contracts, with terms generally less than six months, to buy Japanese yen for periods and amounts consistent with underlying cash flow exposures. These contracts are designated as cash flow hedges at inception and monitored for effectiveness on a routine basis. There were $12.1 million in yen contracts (notional value) outstanding at March 31, 2015.

Certain sales are made in euros. In order to hedge a portion of these forecasted cash flows, management purchases foreign exchange contracts, with terms generally less than six months, to sell euros for periods and amounts consistent with the related underlying cash flow exposures. These contracts are designated hedges at inception and monitored for effectiveness on a routine basis. There were $13.8 million in euro contracts (notional value) outstanding at March 31, 2015.

Changes in the derivatives' fair values are deferred and recorded as a component of AOCI until the underlying transaction is recorded to the income statement. When the hedged item affects income, gains or losses are reclassified from AOCI to the Consolidated Statement of Operations as cost of goods sold for foreign exchange contracts to purchase Mexican pesos and Japanese yen, and as Net sales for foreign exchange contracts to sell euros. Any ineffectiveness, if material, in the Company's hedging relationships is recognized immediately as a loss, within the same income statement accounts as described above. Changes in derivative balances impact the line item "Prepaid and other assets" on the Consolidated Statements of Cash Flows.

The Company formally documents all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various hedge transactions.

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Supplemental Balance Sheets and Statements of Operations Detail (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Accounts receivable:
Trade	$ 115,504	$ 123,607
Allowance for doubtful accounts reserve	(925)	(1,401)
Ship-from-stock and debit reserve	(19,360)	(18,041)
Returns reserves	(3,190)	(2,993)
Rebates reserves	(780)	(1,035)
Price protection reserves	(270)	(125)
Accounts Receivable Deferred Sales	(122)	(1,065)
Accounts receivable	90,857	98,947
Inventories:
Raw materials and supplies	83,372	90,968
Work in process	52,759	61,310
Finished goods	53,211	62,522
Inventories, gross	189,342	214,800
Inventory reserves	(17,499)	(26,826)
Inventories, net	171,843	187,974
Allowance for commitments related to accounts receivables
Changes in allowance for accounts receivable and inventory reserve
Balance at the beginning of the period	24,660	18,518	17,463
Charged to operations	91,091	89,909	82,738
Write-offs	(90,909)	(83,911)	(81,621)
Other	(195)	144	(62)
Balance at the end of the period	24,647	24,660	18,518
Inventory reserves
Changes in allowance for accounts receivable and inventory reserve
Balance at the beginning of the period	26,826	18,464	17,144
Costs charged to expense	9,291	11,846	5,493
Write-offs	(17,520)	(3,880)	(3,836)
Other	(1,098)	396	(337)
Balance at the end of the period	$ 17,499	$ 26,826	$ 18,464

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Organization and Significant Accounting Policies (Details 3) (USD $)	12 Months Ended
	Mar. 31, 2015
Warrant liability
Number of shares subject to a warrant held by K Equity, LLC	26,848,484
Platinum warrant
Warrant liability
Percentage of outstanding common stock at the time of issuance	49.90%
Exercise price of warrants (in dollars per share)	$ 1.05
Number of shares subject to a warrant held by K Equity, LLC	8,416,815

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Condensed Consolidating Financial Statements (Details 4) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	$ 24,402	$ (6,746)	$ (22,827)
Investing activities:
Capital expenditures	(22,232)	(32,147)	(46,174)
Investment in NEC TOKIN (excludes non cash investment)	0	0	(50,917)
Acquisitions, net of cash received			(50,917)
Change in restricted cash	11,509	4,047	(15,284)
Proceeds from sale of assets	4,788	2,847	398
Proceeds from Divestiture of Businesses, Net of Cash Divested	9,564	0	0
Net cash provided by (used in) investing activities	3,629	(25,253)	(111,977)
Proceeds from issuance of debt	0	0	39,825
Financing activities:
Proceeds from revolving line of credit	42,340	21,000	0
Payments of revolving line of credit	(27,342)	(2,551)	0
Deferred acquisition payments	(19,527)	(21,977)	(16,900)
Payment of long-term debt	(21,733)	(3,599)	(1,909)
Payments of Debt Issuance Costs	0	0	(275)
Proceeds from exercise of stock options	24	250	111
Payments for Repurchase of Common Stock	(630)	0	0
Net cash provided by (used in) financing activities	(26,868)	(6,877)	20,852
Net increase (decrease) in cash and cash equivalents	1,163	(38,876)	(113,952)
Effect of foreign currency fluctuations on cash	(2,730)	827	(591)
Cash and cash equivalents at beginning of fiscal year	57,929	95,978	210,521
Cash and cash equivalents at end of fiscal year	56,362	57,929	95,978
Parent
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	39,575	7,724	(14,492)
Investing activities:
Capital expenditures	0	0	0
Acquisitions, net of cash received			0
Change in restricted cash	0	0	0
Proceeds from sale of assets	0	0	0
Proceeds from Divestiture of Businesses, Net of Cash Divested	0
Net cash provided by (used in) investing activities	0	0	0
Proceeds from issuance of debt			39,825
Financing activities:
Proceeds from revolving line of credit	0	0
Payments of revolving line of credit	0	0
Deferred acquisition payments	(18,527)	(20,977)	(15,900)
Payment of long-term debt	(20,417)	(3,583)	0
Payments of Debt Issuance Costs			(275)
Proceeds from exercise of stock options	24	250	111
Payments for Repurchase of Common Stock	(630)
Net cash provided by (used in) financing activities	(39,550)	(24,310)	23,761
Net increase (decrease) in cash and cash equivalents	25	(16,586)	9,269
Effect of foreign currency fluctuations on cash	(1)	0	0
Cash and cash equivalents at beginning of fiscal year	616	17,202	7,933
Cash and cash equivalents at end of fiscal year	640	616	17,202
Guarantor Subsidiaries
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	(4,085)	(26,984)	(43,099)
Investing activities:
Capital expenditures	(12,930)	(13,348)	(15,841)
Acquisitions, net of cash received			(50,917)
Change in restricted cash	11,509	4,047	(15,284)
Proceeds from sale of assets	2,403	996	0
Proceeds from Divestiture of Businesses, Net of Cash Divested	0
Net cash provided by (used in) investing activities	982	(8,305)	(82,042)
Proceeds from issuance of debt			0
Financing activities:
Proceeds from revolving line of credit	37,340	9,000
Payments of revolving line of credit	(22,342)	(2,551)
Deferred acquisition payments	(1,000)	(1,000)	(1,000)
Payment of long-term debt	0	(16)	(8)
Payments of Debt Issuance Costs			0
Proceeds from exercise of stock options	0	0	0
Payments for Repurchase of Common Stock	0
Net cash provided by (used in) financing activities	13,998	5,433	(1,008)
Net increase (decrease) in cash and cash equivalents	10,895	(29,856)	(126,149)
Effect of foreign currency fluctuations on cash	(1)	0	0
Cash and cash equivalents at beginning of fiscal year	22,200	52,056	178,205
Cash and cash equivalents at end of fiscal year	33,094	22,200	52,056
Non-Guarantor Subsidiaries
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	(11,088)	12,514	34,764
Investing activities:
Capital expenditures	(9,302)	(18,799)	(30,333)
Acquisitions, net of cash received			0
Change in restricted cash	0	0	0
Proceeds from sale of assets	2,385	1,851	398
Proceeds from Divestiture of Businesses, Net of Cash Divested	9,564
Net cash provided by (used in) investing activities	2,647	(16,948)	(29,935)
Proceeds from issuance of debt			0
Financing activities:
Proceeds from revolving line of credit	5,000	12,000
Payments of revolving line of credit	(5,000)	0
Deferred acquisition payments	0	0	0
Payment of long-term debt	(1,316)	0	(1,901)
Payments of Debt Issuance Costs			0
Proceeds from exercise of stock options	0	0	0
Payments for Repurchase of Common Stock	0
Net cash provided by (used in) financing activities	(1,316)	12,000	(1,901)
Net increase (decrease) in cash and cash equivalents	(9,757)	7,566	2,928
Effect of foreign currency fluctuations on cash	(2,728)	827	(591)
Cash and cash equivalents at beginning of fiscal year	35,113	26,720	24,383
Cash and cash equivalents at end of fiscal year	22,628	35,113	26,720
Consolidation, Eliminations [Member]
Sources (uses) of cash and cash equivalents
Net cash provided by (used in) operating activities	0	0	0
Investing activities:
Capital expenditures	0	0	0
Acquisitions, net of cash received			0
Change in restricted cash	0	0	0
Proceeds from sale of assets	0	0	0
Proceeds from Divestiture of Businesses, Net of Cash Divested	0
Net cash provided by (used in) investing activities	0	0	0
Proceeds from issuance of debt			0
Financing activities:
Proceeds from revolving line of credit	0	0
Payments of revolving line of credit	0	0
Deferred acquisition payments	0	0	0
Payment of long-term debt	0	0	0
Payments of Debt Issuance Costs			0
Proceeds from exercise of stock options	0	0	0
Payments for Repurchase of Common Stock	0
Net cash provided by (used in) financing activities	0	0	0
Net increase (decrease) in cash and cash equivalents	0	0	0
Effect of foreign currency fluctuations on cash	0	0	0
Cash and cash equivalents at beginning of fiscal year	0	0	0
Cash and cash equivalents at end of fiscal year	$ 0	$ 0	$ 0

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Supplemental Balance Sheets and Statements of Operations Detail (Tables)

12 Months Ended

Mar. 31, 2015

Disclosure Text Block Supplement [Abstract]

Schedule of accounts receivable

	March 31,
	2015			2014
Accounts receivable:
Trade	$	115,504		$	123,607
Allowance for doubtful accounts reserve	(925		)	(1,401		)
Ship-from-stock and debit reserve	(19,360		)	(18,041		)
Returns reserves	(3,190		)	(2,993		)
Rebates reserves	(780		)	(1,035		)
Price protection reserves	(270		)	(125		)
Other	(122		)	(1,065		)
Accounts receivable, net	$	90,857		$	98,947

Schedule of activity in allowances for accounts receivables

The following table presents the annual activities included in the allowance for these commitments:

Balance at March 31, 2012	$	17,463
Charged to operations	82,738
Write-offs	(81,621		)
Other	(62		)
Balance at March 31, 2013	18,518
Charged to operations	89,909
Write-offs	(83,911		)
Other	144
Balance at March 31, 2014	24,660
Charged to operations	91,091
Write-offs	(90,909		)
Other	(195		)
Balance at March 31, 2015	$	24,647

Schedule of components of inventories

	March 31,
	2015			2014
Inventories:
Raw materials and supplies	$	83,372		$	90,968
Work in process	52,759			61,310
Finished goods	53,211			62,522
Inventory gross	189,342			214,800
Inventory reserves	(17,499		)	(26,826		)
Inventory, net	$	171,843		$	187,974

Schedule of the annual activities included in the allowance for commitments

The following table presents the annual activities included in the inventory reserves:

Balance at March 31, 2012	$	17,144
Costs charged to expense	5,493
Write-offs	(3,836		)
Other	(337		)
Balance at March 31, 2013	18,464
Costs charged to expense	11,846
Write-offs	(3,880		)
Other	396
Balance at March 31, 2014	26,826
Costs charged to expense	9,291
Write-offs	(17,520		)
Other	(1,098		)
Balance at March 31, 2015	$	17,499

Schedule of Property, plant and equipment

	Useful life (years)	March 31,
		2015			2014
Property, plant and equipment:
Land and land improvements	20	$	22,017		$	25,965
Buildings	20 - 40	149,451			163,062
Machinery and equipment	10	798,112			824,878
Furniture and fixtures	4 - 10	60,903			69,676
Construction in progress		21,260			14,754
Other		2,184			—
Total property and equipment		1,053,927			1,098,335
Accumulated depreciation		(804,286		)	(805,687		)
Property, plant and equipment, net		$	249,641		$	292,648

Schedule of accrued expenses

	March 31,
	2015		2014
Accrued expenses:
Salaries, wages, and related employee costs	$	26,117	$	23,596
Interest	15,678		15,735
Restructuring	6,591		6,217
Vacation	6,286		10,570
Deferred acquisition payments	—		19,153
Other	5,784		1,197
Total accrued expenses	$	60,456	$	76,468

Schedule of other non-current obligations

	March 31,
	2015		2014
Other non-current obligations:
Pension plans	38,982		32,852
Employee separation liability	10,638		15,419
Deferred compensation	1,548		1,559
Long-term obligation on land purchase	1,594		2,388
Restructuring	648		—
Other	3,721		3,646
Total other non-current obligations	$	57,131	$	55,864

Schedule of other (income) expense, net

	Fiscal Years Ended March 31,
	2015			2014			2013
Non-operating (income) expense, net:
Net foreign exchange (gains) losses	(4,249		)	(304		)	(28		)
Change in value of NEC Tokin options	(2,100		)	(3,111		)	—
Gain on early extinguishment of debt	(1,003		)	—			—
Miscellaneous non-product income	—			—			(465		)
Offering memorandum fees	1,142			—			—
Other	28			734			(1,802		)
Total non-operating (income) expense, net	$	(6,182	)	$	(2,681	)	$	(2,295	)

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Consolidated Statements of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2013
Net income (loss)	$ (14,143)	$ (82,182)
Other comprehensive income (loss):
Other Comprehensive Income, Other, Net of Tax	241
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(47,221)
Other comprehensive income (loss)	(46,980)	(4,326)
Total comprehensive income (loss)	(61,123)	(86,508)
Foreign currency translation gains (losses), net of tax
Other comprehensive income (loss):
Amounts reclassified out of OCI		(4,569)
Other Comprehensive Income, Other, Net of Tax	0
Other comprehensive income (loss)	(35,467)
Accumulated Defined Benefit Plans Adjustment [Member]
Other comprehensive income (loss):
Amounts reclassified out of OCI	12,977	420
Other Comprehensive Income, Other, Net of Tax	427
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(13,404)
Other comprehensive income (loss)	(12,977)
Defined benefit post-retirement plan adjustments
Other comprehensive income (loss):
Amounts reclassified out of OCI	305	(177)
Other Comprehensive Income, Other, Net of Tax	(186)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(119)
Other comprehensive income (loss)	(305)
Equity interest in investee's other comprehensive income (loss)
Other comprehensive income (loss):
Amounts reclassified out of OCI		0
Other Comprehensive Income, Other, Net of Tax	0
Other comprehensive income (loss)	766
Forward Contracts [Member]
Other comprehensive income (loss):
Other Comprehensive Income, Other, Net of Tax	0	0
Other comprehensive income (loss)	$ 1,003

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Income Taxes (Details) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Components of Income (loss) before income taxes
Domestic (U.S.)	$ (26,238,000)	$ (89,529,000)	$ (88,939,000)
Foreign (Outside U.S.)	14,112,000	33,232,000	14,962,000
Income (loss) from continuing operations before income taxes and equity loss from NEC TOKIN	(12,126,000)	(56,297,000)	(73,977,000)
Current:
Federal	0	0	0
State and local	(92,000)	35,000	37,000
Foreign	7,403,000	7,816,000	3,561,000
Total current income tax expense from continuing operations	7,311,000	7,851,000	3,598,000
Deferred:
Federal	270,000	(1,694,000)	(65,000)
State and local	39,000	406,000	700,000
Deferred Foreign Income Tax Expense (Benefit)	(2,393,000)	(5,081,000)	(952,000)
Deferred tax benefit from continuing operations	(2,084,000)	(6,369,000)	(317,000)
Provision for income taxes	5,227,000	1,482,000	3,281,000
Document Fiscal Year Focus	2015
Latest Tax Year [Member]
Deferred:
Deferred Foreign Income Tax Expense (Benefit)	$ (2,100,000)	$ (2,700,000)	$ 1,400,000

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Debt

12 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Debt

Debt

A summary of debt is as follows (amounts in thousands):

	March 31,
	2015			2014
10.5% Senior Notes, net of premium of $2,461 and $3,144 as of March 31, 2015 and 2014, respectively	$	357,461		$	358,144
Advanced payment from OEM, net of discount of $323 as of March 31, 2014	—			20,095
Revolving line of credit	33,448			18,449
Other	462			1,901
Total debt	391,371			398,589
Current maturities, net of discount of $278 as of March 31, 2014	(962		)	(7,297		)
Total long-term debt	$	390,409		$	391,292

The line item "Interest expense" on the Consolidated Statements of Operations for the fiscal years 2015, 2014 and 2013, respectively, is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014		2013
Contractual interest expense	$	38,716		$	37,366	$	37,193
Amortization of debt issuance costs	1,467			1,704		1,704
Amortization of debt (premium) discount	(407		)	105		(183		)
Imputed interest on acquisition related obligations	754			1,787		2,617
Interest expense on capital leases	171			—		—
Total interest expense	$	40,701		$	40,962	$	41,331

Revolving Line of Credit

On September 30, 2010, KEMET Electronics Corporation ("KEC") and KEMET Electronics Marketing (S) Pte Ltd. ("KEMET Singapore") (each a "Borrower" and, collectively, the "Borrowers") entered into a Loan and Security Agreement (the "Loan and Security Agreement"), with Bank of America, N.A, as the administrative agent and the initial lender. The Loan and Security Agreement provides a $50.0 million revolving line of credit, which is bifurcated into a U.S. facility (for which KEC is the Borrower) and a Singapore facility (for which KEMET Singapore is the Borrower). A portion of the U.S. facility and the Singapore facility can be used to issue letters of credit. On December 19, 2014, the Loan and Security Agreement was amended and as a result the expiration was extended to December 19, 2019. Under the terms of amended Loan and Security Agreement, the revolving credit facility has increased to $60.0 million, bifurcated into a U.S. facility (for which KEC is the Borrower) and a Singapore facility (for which KEMET Singapore is the Borrower). The amendment contains an accordion feature permitting the U.S. Borrowers to increase commitments under the facility by an aggregate principal amount up to $15.0 million (for a total facility of $75.0 million), subject to terms and documentation acceptable to the Agent and/or the Lenders. In addition, KEMET Foil Manufacturing, LLC, KEMET Blue Powder Corporation and The Forest Electric Company were included as Borrowers under the U.S. facility. The principal features of the Loan and Security Agreement as amended are reflected in the description below.

The size of the U.S. facility and Singapore facility can fluctuate as long as the Singapore facility does not exceed $30.0 million and the total facility does not exceed $60.0 million.

Borrowings under the U.S. and Singapore facilities are subject to a borrowing base consisting of:

• in the case of the U.S. facility, (A) 85% of KEC's accounts receivable that satisfy certain eligibility criteria plus (B) the lesser of (i) $6.0 million and (ii) (a) on or prior to agent’s receipt of an updated inventory appraisal and agent’s approval thereof, 40% of the value of Eligible Inventory (as defined in the agreement) and (b) upon agent’s receipt of an updated inventory appraisal, 85% of the net orderly liquidation value of the Eligible Inventory (as defined in the agreement) plus (C) the lesser of $5.1 million and 80% of the net orderly liquidation percentage of the appraised value of equipment that satisfies certain eligibility criteria, as reduced on the first day of each fiscal quarter occurring after April 30, 2014 in an amount equal to one-twentieth (1/20) of such appraised value less (D) certain reserves, including certain reserves imposed by the administrative agent in its permitted discretion; and

• in the case of the Singapore facility, (A) 85% of KEMET Singapore's accounts receivable that satisfy certain eligibility criteria as further specified in the Amendment, less (B) certain reserves, including certain reserves imposed by the administrative agent in its permitted discretion.

Interest is payable on borrowings monthly at a rate equal to the London Interbank Offer Rate ("LIBOR") or the base rate, plus an applicable margin, as selected by the Borrower. Depending upon the fixed charge coverage ratio of KEMET Corporation and its subsidiaries on a consolidated basis as of the latest test date, the applicable margin under the U.S. facility varies between 2.00% and 2.50% for LIBOR advances and 1.00% and 1.50% for base rate advances, and under the Singapore facility varies between 2.25% and 2.75% for LIBOR advances and 1.25% and 1.75% for base rate advances.

The base rate is subject to a floor that is 100 basis points above LIBOR.

An unused line fee is payable monthly in an amount equal to a per annum rate equal to (a) 0.50%, if the average daily balance of revolver loans and stated amount of letters of credit was 50% or less of the revolver commitments during the preceding calendar month, or (b) 0.375%, if the average daily balance of revolver loans and stated amount of letters of credit was more than 50% of the Revolver Commitment during the preceding calendar month. A customary fee is also payable to the administrative agent on a quarterly basis.

KEC's ability to draw funds under the U.S. facility and KEMET Singapore's ability to draw funds under the Singapore facility are conditioned upon, among other matters:

• the absence of the existence of a Material Adverse Effect (as defined in the Loan and Security Agreement);

• the absence of the existence of a default or an event of default under the Loan and Security Agreement; and

• the representations and warranties made by KEC and KEMET Singapore in the Loan and Security Agreement continuing to be correct in all material respects.

KEMET Corporation and the Guarantors guarantee the U.S. facility obligations and the U.S. facility obligations are secured by a lien on substantially all of the assets of KEC and the Guarantors (other than assets that secure the 10.5% Senior Notes due 2018). The collection accounts of the Borrowers and Guarantors are subject to a daily sweep into a concentration account and the concentration account will become subject to full cash dominion in favor of the administrative agent (i) upon an event of default, (ii) if for five consecutive business days, aggregate availability of all facilities has been less than the greater of (A) 12.5% of the aggregate revolver commitments at such time and (B) $7.5 million, or (iii) if for five consecutive business days, availability of the U.S. facility has been less than $3.75 million (each such event, a "Cash Dominion Trigger Event").

KEC and the Guarantors guarantee the Singapore facility obligations. In addition to the assets that secure the U.S. facility, the Singapore obligations are also secured by a pledge of 100% of the stock of KEMET Singapore and a security interest in substantially all of KEMET Singapore's assets. KEMET Singapore's bank accounts are maintained at Bank of America and upon a Cash Dominion Trigger Event will become subject to full cash dominion in favor of the administrative agent.

A fixed charge coverage ratio of at least 1.0:1.0 must be maintained as at the last day of each fiscal quarter ending immediately prior to or during any period in which any of the following occurs and is continuing until none of the following occurs for a period of at least forty-five consecutive days: (i) an event of default, (ii) aggregate availability of all facilities hasbeen less than the greater of (A) 12.5% of the aggregate revolver commitments at such time and (B) $7.5 million, or (iii) availability of the U.S. facility has been less than $3.75 million. The fixed charge coverage ratio tests the EBITDA and fixed charges of KEMET Corporation and its subsidiaries on a consolidated basis.

In addition, the Loan and Security Agreement includes various covenants that, subject to exceptions, limit the ability of KEMET Corporation and its direct and indirect subsidiaries to, among other things: incur additional indebtedness; create liens on assets; engage in mergers, consolidations, liquidations and dissolutions; sell assets (including pursuant to sale leaseback transactions); pay dividends and distributions on or repurchase capital stock; make investments (including acquisitions), loans, or advances; prepay certain junior indebtedness; engage in certain transactions with affiliates; enter into restrictive agreements; amend material agreements governing certain junior indebtedness; and change its lines of business. The Loan and Security Agreement includes certain customary representations and warranties, affirmative covenants and events of default, which are set forth in more detail in the Loan and Security Agreement.

Debt issuance costs related to the Loan and Security Agreement, net of amortization, were $0.3 million and $0.2 million as of March 31, 2015 and 2014, respectively; these costs will be amortized over the term of the Loan and Security Agreement.

As of March 31, 2014, the Company had outstanding borrowings of $18.4 million under the revolving line of credit, of which $6.4 million was borrowed under the U.S. facility at a rate of 5.75% (Base Rate, as defined in the Loan and Security Agreement, plus 2.5%) and $12.0 million borrowed under the Singapore facility at a rate of 4.0% (London Interbank Offer Rate (“LIBOR”) plus 3.75%). As of March 31, 2015, the Company had outstanding borrowings of $33.4 million, of which $21.5 million was borrowed under the U.S. facility at a rate of 4.75% (Base Rate, as defined in the Loan and Security Agreement, plus 1.5%) with no specific repayment date (Base Rate borrowing can be repaid at any time prior to the expiration of the facility), and $12.0 million borrowed under the Singapore facility at a rate of 3.125% (London Interbank Offer Rate (“LIBOR”) plus 2.75% based upon the fixed charge coverage ratio of KEMET Corporation and its subsidiaries on a consolidated basis). The $12.0 million borrowed under the Singapore facility has a term of 90 days and total interest and principal payable at maturity, on May 25, 2015. These were the only borrowings under the revolving line of credit, and $33.4 million remained outstanding as of March 31, 2015, after the Company made repayments of $27.3 million during the fiscal year ended March 31, 2015. Based upon the March 31, 2015 financial statements, the Company's available borrowing capacity under the Loan and Security Agreement was $13.4 million.

As described below in the section titled "Advanced Payment from OEM", a standby letter of credit for $16.0 million was delivered to the OEM on October 8, 2012 and subsequently, during December 2014, at the Company's discretion, it opted to repay the Advanced Payment primarily using the revolving line of credit. The letter of credit was simultaneously released. In fiscal year 2014, the Company issued two letters of credit for EUR 1.1 million ($1.2 million) and EUR 0.7 million ($0.7 million) related to the construction of the new manufacturing location in Italy which were released during February 2014 and April 2014, respectively. Outstanding letters of credit would reduce the Company's availability under the Loan and Security Agreement. As of March 31, 2015, there were no letters of credit outstanding.

Advanced Payment from OEM

On August 28, 2012, the Company entered into and amended an agreement (the "Agreement"), with an original equipment manufacturer (the "OEM") pursuant to which the OEM agreed to advance KEMET $24.0 million (the "Advance Payment"). As of March 31, 2014, the Company had $20.4 million outstanding due to the OEM. On a monthly basis starting in June 2013, (eight months following the receipt of the Advance Payment), the Company began repaying the OEM an amount equal to a percentage of the aggregate purchase price of the capacitors sold to the OEM the preceding month, not to exceed $1.0 million per month. Pursuant to the terms of the Agreement, an irrevocable standby letter of credit in the amount of $16.0 million was delivered to the OEM on October 8, 2012 and on October 22, 2012 the Company received the Advance Payment from the OEM. The debt discount related to the Advance Payment as of March 31, 2014 was $0.3 million. During December 2014, the outstanding balance due on the Advanced Payment was repaid primarily using the revolving line of credit, and the letter of credit was simultaneously released. The early extinguishment of debt resulted in a gain of $1.0 million which was included on the line item “Other (income) expense, net” in the Consolidated Statement of Operations.

10.5% Senior Notes

On May 5, 2010, the Company issued 10.5% Senior Notes with an aggregate principal amount of $230.0 million which resulted in net proceeds to the Company of $222.2 million.

The 10.5% Senior Notes were issued pursuant to an Indenture (the "10.5% Senior Notes Indenture"), dated as of May 5, 2010, by and among the Company, Guarantors and Wilmington Trust Company, as trustee (the "Trustee"). The 10.5% Senior Notes will mature on May 1, 2018, and bear interest at a stated rate of 10.5% per annum, payable semi-annually in cash in arrears on May 1 and November 1 of each year, beginning on November 1, 2010. The 10.5% Senior Notes are senior obligations of the Company and will be guaranteed by each of the Guarantors and secured by a first priority lien on 51% of the capital stock of certain of the Company's foreign restricted subsidiaries.

The terms of the 10.5% Senior Notes Indenture, among other things, limit the ability of the Company and its restricted subsidiaries to (i) incur additional indebtedness or issue certain preferred stock; (ii) pay dividends on, or make distributions in respect of, their capital stock or repurchase their capital stock; (iii) make certain investments or other restricted payments; (iv) sell certain assets; (v) create liens or use assets as security in other transactions; (vi) enter into sale and leaseback transactions; (vii) merge, consolidate or transfer or dispose of substantially all of their assets; (viii) engage in certain transactions with affiliates; and (ix) designate their subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of important limitations and exceptions that are described in the 10.5% Senior Notes Indenture. The Company is in compliance with these debt covenants.

At any time on or after May 1, 2014, the Company may redeem the 10.5% Senior Notes, in whole or in part, at a redemption price determined by the year of redemption, as specified in the Indenture. 

Upon the occurrence of a change of control triggering event specified in the 10.5% Senior Notes Indenture, the Company must offer to purchase the 10.5% Senior Notes at a redemption price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase.

The 10.5% Senior Notes Indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the 10.5% Senior Notes Indenture, payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. The 10.5% Senior Notes Indenture also provides for events of default with respect to the collateral, which include default in the performance of (or repudiation, disaffirmation or judgment of unenforceability or assertion of unenforceability) by the Company or a Guarantor with respect to the provision of security documents under the 10.5% Senior Notes Indenture. These events of default are subject to a number of important qualifications, limitations and exceptions that are described in the 10.5% Senior Notes Indenture. Generally, if an event of default occurs, the Trustee or holders of at least 25% in principal amount of the then outstanding 10.5% Senior Notes may declare the principal of and accrued but unpaid interest, including additional interest, on all the 10.5% Senior Notes to be due and payable.

On March 27, 2012 and April 3, 2012, the Company completed the issuance of $110.0 million and $15.0 million aggregate principal amount of its 10.5% Senior Notes due April 2018, respectively, at an issue price of 105.5% of the principal amount plus accrued interest from November 1, 2011. The issuance resulted in a debt premium of $6.1 million which will be amortized over the term of the 10.5% Senior Notes. The Senior Notes were issued as additional notes under the indenture, dated May 5, 2010, among the Company, the guarantors party thereto and Wilmington Trust Company, as trustee.

In total, debt issuance costs related to the 10.5% Senior Notes, net of amortization, were $4.1 million and $5.4 million as of March 31, 2015 and 2014; these costs will be amortized over the term of the 10.5% Senior Notes. The Company had interest payable related to the 10.5% Senior Notes included in the line item "Accrued expenses" on its Consolidated Balance Sheets of $15.5 million at March 31, 2015 and 2014. The effective interest rate for the Senior Notes was 10.3% for the years ended March 31, 2015 and 2014.

The following table highlights the Company's annual cash maturities of debt (amounts in thousands):

	Annual Maturities of Debt Fiscal Years Ended March 31,
	2016		2017		2018		2019		2020
10.5% Senior Notes	$	—	$	—	$	—	$	355,000	$	—
Revolving line of credit	500		—		—		—		32,948
Other	462		—		—		—		—
	$	962	$	—	$	—	$	355,000	$	32,948

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Discontinued Operations (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Net sales and net operating (loss) from discontinued operations
Net sales									$ 5,644	$ 0	$ 0
Operating income (loss)	0	(164)	(1,400)	6,943	103	(1,076)	(1,151)	(1,510)	5,379	(3,634)	(3,670)
Disposal Group, Including Discontinued Operation, Operating Income (Loss)									265
Machinery Division
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Revenue									104	11,489	19,051
Net sales and net operating (loss) from discontinued operations
Disposal Group, Including Discontinued Operation, Operating Income (Loss)									$ (265)	$ (3,730)	$ (4,203)

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Stock-Based Compensation (Details) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
LTIPs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,901,000	$ 1,428,000	$ 1,211,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	552,000	839,000	1,640,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	3,100,000	800,000
Stock-based compensation expense	1,059,000	642,000	1,748,000
Cost of sales | LTIPs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,075,000	523,000	356,000
Cost of sales | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	233,000	421,000	710,000
Cost of sales | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	269,000	62,000	445,000
Selling, general and administrative expenses | LTIPs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,547,000	712,000	725,000
Selling, general and administrative expenses | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	306,000	413,000	872,000
Selling, general and administrative expenses | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	787,000	580,000	1,303,000
Research and development | LTIPs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	279,000	193,000	130,000
Research and development | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	13,000	5,000	58,000
Research and development | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3,000	$ 0	$ 0

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Derivatives (Details) (USD $)	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivatives, Fair Value [Line Items]
Document Period End Date	Mar. 31, 2015
Change in Unrealized Gain (Loss) on Foreign Currency Fair Value Hedging Instruments	$ 1,003,000
Derivative Asset, Fair Value, Gross Asset	1,003,000
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	1,003,000
Value of net call derivative options	1,003,000	0
Euro Member Countries, Euro
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	13,800,000
Mexico, Pesos
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	23,600,000
Japan, Yen
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	$ 12,100,000

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Goodwill and Intangible Assets (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Goodwill [Line Items]
Goodwill	$ (35,584)	$ (35,584)
Solid Capacitors
Goodwill [Line Items]
Goodwill	35,584	35,584
Accumulated impairment losses	0
Goodwill	(35,584)	(35,584)
Film and Electrolytic
Goodwill [Line Items]
Goodwill	1,092	1,092
Accumulated impairment losses	(1,092)	(1,092)
Goodwill	$ 0	$ 0

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Subsequent Events (Notes)

12 Months Ended

Mar. 31, 2015

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note 19: Subsequent Events

On April 1, 2015 KEMET purchased IntelliData, Inc., a Greenwood Village, Colorado-based developer of digital solutions supporting discovery, decision support, and the sales and marketing of electronic components. As a KEMET vendor since 2000, IntelliData provides a variety of content automation and delivery tools and services. IntelliData was founded in 1999 by electronics industry executives. IntelliData's database and software products support more than 560 electronic component manufacturers delivering power and efficiency to design/selection, decision support, sales and marketing.

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Segment and Geographic Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2015 business_group	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting [Abstract]
Number of business groups									2
Segment and geographic information
Net sales	$ 193,708	$ 201,310	$ 215,293	$ 212,881	$ 215,821	$ 207,339	$ 208,449	$ 202,057	$ 823,192	$ 833,666	$ 823,903
Operating (loss) income	912	9,302	12,770	(606)	(5,207)	3,623	1,585	(18,212)	22,378	(18,211)	(35,080)
Depreciation and amortization									40,768	49,527	45,158
Capital expenditures									22,232	32,147	46,174
Restructuring charges									13,017	14,122	18,719
Impairment and write-down of long-lived assets									0	4,476	8,674
Net (gain) loss on sales and disposals of assets									(221)	32	18
Assets	752,792				843,667				752,792	843,667
Solid Capacitors
Segment and geographic information
Number of manufacturing sites									9
Net sales									621,275	626,494	622,305
Operating (loss) income									135,946	91,848	94,986
Depreciation and amortization									21,202	28,081	27,407
Capital expenditures									12,552	10,498	16,838
Restructuring charges									3,297	8,108	7,335
Impairment and write-down of long-lived assets									0	3,920	3,348
Net (gain) loss on sales and disposals of assets									(606)	(705)	(161)
Assets	469,823				479,377				469,823	479,377
Film and Electrolytic
Segment and geographic information
Number of manufacturing sites									13
Net sales									201,917	207,172	201,598
Operating (loss) income									(16,685)	(17,587)	(31,109)
Depreciation and amortization									13,886	14,557	13,360
Capital expenditures									7,752	14,494	23,970
Restructuring charges									8,221	5,657	9,621
Impairment and write-down of long-lived assets									0	556	5,326
Net (gain) loss on sales and disposals of assets									1,008	767	179
Assets	218,858				287,861				218,858	287,861
Corporate
Segment and geographic information
Operating (loss) income									(96,883)	(92,472)	(98,957)
Depreciation and amortization									5,680	6,889	4,391
Capital expenditures									1,928	7,155	5,366
Restructuring charges									1,499	357	1,763
Net (gain) loss on sales and disposals of assets									(181)	(30)	0
Assets	$ 64,111				$ 76,429				$ 64,111	$ 76,429

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Pension and Other Post-retirement Benefit Plans (Tables)

12 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Summary of the changes in benefit obligations and plan assets

A summary of the changes in benefit obligations and plan assets is as follows (amounts in thousands):

	Pension						Other Benefits
	2015			2014			2015			2014
Change in Benefit Obligation
Benefit obligation at beginning of the year	$	42,715		$	39,096		$	785		$	799
Service cost	1,286			1,308			—			—
Interest cost	1,819			1,734			29			23
Plan participants' contributions	—			—			474			555
Plan amendments	1,006			285			—			—
Actuarial (gain) loss	13,673			(377		)	118			94
Foreign currency exchange rate change	(9,988		)	2,009			—			—
Gross benefits paid	(1,111		)	(1,302		)	(560		)	(686		)
Curtailments and settlements	(58		)	(38		)	—			—
Benefit obligation at end of year	$	49,342		$	42,715		$	846		$	785
Change in Plan Assets
Fair value of plan assets at beginning of year	$	9,946		$	8,806		$	—		$	—
Actual return on plan assets	1,737			260			—			—
Foreign currency exchange rate changes	(1,353		)	874			—			—
Employer contributions	1,303			1,346			86			131
Settlements	(39		)	(38		)	—			—
Plan participants' contributions	—			—			474			555
Gross benefits paid	(1,111		)	(1,302		)	(560		)	(686		)
Fair value of plan assets at end of year	$	10,483		$	9,946		$	—		$	—
Funded status at end of year
Fair value of plan assets	$	10,483		$	9,946		$	—		$	—
Benefit obligations	(49,342		)	(42,715		)	(846		)	(785		)
Amount recognized at end of year	$	(38,859	)	$	(32,769	)	$	(846	)	$	(785	)

Schedule of amounts recognized in the Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets consist of the following (amounts in thousands):

	Pension						Other Benefits
	2015			2014			2015			2014
Current liability	$	(626	)	$	(615	)	$	(97	)	$	(88	)
Noncurrent liability	(38,233		)	(32,154		)	(749		)	(697		)
Amount recognized, end of year	$	(38,859	)	$	(32,769	)	$	(846	)	$	(785	)

Schedule of amounts recognized in Accumulated other comprehensive income (loss)

Amounts recognized in Accumulated other comprehensive income (loss) consist of the following (amounts in thousands):

	Pension				Other Benefits
	2015		2014		2015			2014
Net actuarial loss (gain)	$	21,408	$	9,269	$	(1,159	)	$	(1,464	)
Prior service cost	1,300		310		—			—
Accumulated other comprehensive (income) loss	$	22,708	$	9,579	$	(1,159	)	$	(1,464	)

Schedule of components of benefit costs (credit)

Components of benefit costs (credit) consist of the following (amounts in thousands):

	Pension									Other Benefits
	2015			2014			2013			2015			2014			2013
Net service cost	$	1,286		$	1,308		$	1,583		$	—		$	—		$	—
Interest cost	1,819			1,734			1,903			29			23			27
Expected return on plan assets	(480		)	(454		)	(656		)	—			—			—
Amortization:
Actuarial (gain) loss	277			318			544			(187		)	(259		)	(322		)
Prior service cost	17			4			20			—			—			—
Recurring activity	2,919			2,910			3,394			(158		)	(236		)	(295		)
One time expense (income)	(19		)	(32		)	266			—			—			—
Net periodic benefit cost (credit)	$	2,900		$	2,878		$	3,660		$	(158	)	$	(236	)	$	(295	)

Schedule of asset allocation for the Company's defined benefit pension plans and the target allocation by asset category

The asset allocation for the Company's defined benefit pension plans at March 31, 2015 and the target allocation for 2015, by asset category, are as follows:

Asset Category	Target Allocation (%)	Plan Assets at March 31, 2015 (%)
Insurance (1)	10	6
International equities	30	35
International bonds	50	58
Other	10	1
Total	100	100

_______________________________________________________________________________

(1) Comprised of assets held by the defined benefit pension plan in Germany.

Schedule of other changes in plan assets and benefit obligations recognized in Accumulated other comprehensive income (loss)

Other changes in plan assets and benefit obligations recognized in Accumulated other comprehensive income (loss) are as follows (amounts in thousands):

	Pension									Other Benefits
	2015			2014			2013			2015		2014		2013
Current year actuarial (gain) loss	$	12,397		$	(190	)	$	3,669		$	118	$	95	$	(145	)
Foreign currency exchange rate changes	—			—			(238		)	—		—		—
Amortization of actuarial gain (loss)	(258		)	(286		)	(4,582		)	187		259		322
Current year prior service cost	1,006			285			—			—		—		—
Amortization of prior service cost	(17		)	(4		)	(101		)	—		—		—
Total recognized in other comprehensive income	$	13,128		$	(195	)	$	(1,252	)	$	305	$	354	$	177
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	16,028		$	2,683		$	2,408		$	147	$	118	$	(118	)

Schedule of expected future benefit payments

The Company expects to have benefit payments in the future as follows (amounts in thousands):

	Expected benefit payments
	2016		2017		2018		2019		2020		2021- 2025
Pension benefits	$	1,367	$	1,363	$	1,381	$	1,510	$	1,603	$	9,654
Other benefits	98		95		91		86		80		309
Total	$	1,465	$	1,458	$	1,472	$	1,596	$	1,683	$	9,963

Schedule of weighted-average assumptions used to determine the projected benefit obligation at the measurement date and the net periodic cost for the pension and post-retirement plan

The following weighted-average assumptions were used to determine the projected benefit obligation at the measurement date and the net periodic cost for the pension and post-retirement plan (amounts in thousands except percentages):

	Pension				Other Benefits
	2015		2014		2015			2014
Projected benefit obligation:
Discount rate	2.8	%	4.5	%	2.9		%	3.4		%
Rate of compensation increase	3.5	%	3.4	%	—		%	—		%
Health care cost trend on covered charges	—		—		7.0% decreasing to ultimate trend of 5% in 2019			7.0% decreasing to ultimate trend of 5% in 2018
Net periodic benefit cost:
Discount rate	4.6	%	4.5	%	3.4		%	2.8		%
Rate of compensation increase	3.4	%	3.5	%	—		%	—		%
Expected return on plan assets	4.9	%	4.9	%	—		%	—		%
Health care cost trend on covered charges	—		—		7.0% decreasing to ultimate trend of 5% in 2018			7.0% decreasing to ultimate trend of 5% in 2017
Sensitivity of retiree welfare results
Effect of a one percentage point increase in assumed health care cost trend:
—On total service and interest costs components					$	—		$	—
—On post-retirement benefits obligation					18			15
Effect of a one percentage point decrease in assumed health care cost trend:
—On total service and interest costs components					—			—
—On post-retirement benefits obligation					(17		)	(13		)

Schedule of fair value of pension plan assets measured on recurring basis

The Company evaluated input from its third-party actuary to determine the appropriate discount rate. The determination of the discount rate is based on various factors such as the rate on bonds, term of the expected payou

Summary of changes in the fair value of the defined benefit pension plan's Level 3 assets

The table below sets forth a summary of changes in the fair value of the defined benefit pension plan's Level 3 assets for the fiscal year ended March 31, 2015 (amounts in thousands):

Balance at March 31, 2014	$	706
Actual return on plan assets	39
Employer contributions	366
Settlements	—
Benefits paid	(375		)
Foreign currency exchange rate change	(160		)
Balance at March 31, 2015	$	576

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Income Taxes

12 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

ponents of Income (loss) from continuing operations before income taxes and equity loss from NEC TOKIN are as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Domestic (U.S.)	$	(26,238	)	$	(89,529	)	$	(88,939	)
Foreign (Outside U.S.)	14,112			33,232			14,962
Total	$	(12,126	)	$	(56,297	)	$	(73,977	)

The provision (benefit) for Income tax expense is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Current:
Federal	$	—		$	—		$	—
State and local	(92		)	35			37
Foreign	7,403			7,816			3,561
Total current income tax expense from continuing operations	7,311			7,851			3,598
Deferred:
Federal	270			(1,694		)	(65		)
State and local	39			406			700
Foreign	(2,393		)	(5,081		)	(952		)
Deferred tax benefit from continuing operations	(2,084		)	(6,369		)	(317		)
Provision for income taxes	$	5,227		$	1,482		$	3,281

The Company realized a deferred tax expense (benefit) for fiscal years ended 2015, 2014, and 2013 of $(2.1) million, $(2.7) million and $1.4 million, respectively, in certain foreign jurisdictions based on changes in judgment about the realizability of deferred tax assets in future years.

Differences between the provision for income taxes on earnings from continuing operations and the amount computed using the U.S. Federal statutory income tax rate are as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015		2014		2013
Amount computed using the statutory rate of 35%	(4,245	)	(19,704	)	(25,892	)
Change in U.S. valuation allowance	(19,691	)	21,788		24,571
Unremitted earnings of foreign subsidiaries	18,502		—		—
Effect of prior year adjustments (1)	5,766		(786	)	2,565
Taxable foreign source income	4,660		3,392		3,594
Other non-deductible expenses	217		149		346
State income taxes, net of federal taxes	(53	)	441		737
Change in foreign operations tax exposure reserves	1,119		773		(737	)
Change in foreign operations valuation allowance (2)	1,378		(2,733	)	(4,184	)
Other effect of foreign operations	(2,426	)	(1,838	)	2,281
Provision for income taxes	5,227		1,482		3,281

(1) The effect of prior year adjustments is offset by a full valuation allowance resulting in no impact on the provision for income taxes.

(2) The change in foreign operations valuation allowance excludes currency translation adjustments of $(3.4) million, $1.0 million, and $(0.4) million for fiscal years ended 2015, 2014, and 2013, respectively which has no impact on the provision for income taxes.

The foreign jurisdictions having the greatest effect on the provision for income taxes are China and Mexico. The statutory tax rates for China and Mexico are 25% and 30%, respectively. The provision for income taxes for China and Mexico for fiscal years ended 2015, 2014, and 2013 is $6.4 million, $2.2 million, and $2.2 million, respectively.

The components of deferred tax assets and liabilities are as follows (amounts in thousands):

	March 31,
	2015			2014
Deferred tax assets:
Net operating loss carry forwards	$	162,691		$	173,377
Sales allowances and inventory reserves	21,696			19,447
Medical and employee benefits	15,982			10,035
Tax credits	10,025			10,838
Stock-based compensation	3,578			4,439
Other	3,411			4,338
Total deferred tax assets before valuation allowance	217,383			222,474
Less valuation allowance	(167,594		)	(189,276		)
Total deferred tax assets	49,789			33,198
Deferred tax liabilities:
Unremitted earnings of subsidiaries	(18,502		)	—
Depreciation and differences in basis	(12,166		)	(13,299		)
Amortization of intangibles and debt discounts	(7,261		)	(7,420		)
NEC TOKIN put/call option	(1,860		)	(1,104		)
Non-amortized intangibles	(2,556		)	(2,549		)
Other	(54		)	(578		)
Total deferred tax liabilities	(42,399		)	(24,950		)
Net deferred tax assets	$	7,390		$	8,248

The following table presents the annual activities included in the deferred tax valuation allowance:

	Valuation Allowance for Deferred Tax Assets
Balance at March 31, 2012	$	149,306
Charge to costs and expenses	23,977
Deductions	(4,013		)
Balance at March 31, 2013	169,270
Charge to costs and expenses	21,515
Deductions	(1,509		)
Balance at March 31, 2014	189,276
Charge to costs and expenses	(19,900		)
Deductions	(1,782		)
Balance at March 31, 2015	$	167,594

In fiscal year 2015, the valuation allowance decreased $21.7 million primarily from the recognition of a deferred tax liability for unremitted earnings of the Company's foreign subsidiaries and other adjustments relating to prior years, and from currency translation adjustments. In fiscal year 2014, the valuation allowance increased $20.0 million primarily as a result of the increase in federal net operating loss carryforwards offset by a decrease in net operating loss carryforwards in certain foreign jurisdictions. In fiscal year 2013, the valuation allowance increased $20.0 million primarily as a result of the increase in federal net operating loss carryforwards offset by a decrease in net operating loss carryforwards in certain foreign jurisdictions. Deductions in fiscal years 2015, 2014 and 2013 resulted from expiring net operating loss carryforwards and expiring tax credits in certain U.S. state and foreign jurisdictions.

The change in net deferred income tax asset (liability) for the current year is presented below (amounts in thousands):

Balance at March 31, 2014	$	8,248
Deferred income taxes related to continuing operations (1)	2,084
Deferred income taxes related to other comprehensive income	(1,287		)
Foreign currency translation	(1,655		)
Balance at March 31, 2015	$	7,390

(1) Fiscal year ended March 31, 2015 includes a federal tax expense of $0.3 million allocated from other comprehensive income.

As of March 31, 2015 and 2014, the Company's gross deferred tax assets are reduced by a valuation allowance of $167.6 million and $189.3 million, respectively. A valuation allowance on U.S. deferred tax assets was determined to be necessary based on the existence of significant negative evidence such as a cumulative three-year loss of the U.S. consolidated group. The amount of future income required for the Company to realize its deferred tax assets is $33.5 million. The realization of $1.3 million of deferred tax assets in Italy is dependent on the sale of land and buildings in Italy.

In assessing the realizability of deferred tax assets in foreign jurisdictions, management 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 dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowances as of March 31, 2015. However, the amount of deferred tax assets considered realizable could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced.

As of March 31, 2015, the Company had U.S. federal net operating loss carryforwards of $392.8 million. These U.S. federal net operating losses were incurred from 2004 through 2015 and are available to offset future federal taxable income, ifany, through 2035. The Company had state net operating losses of $471.9 million, of which $3.0 million will expire in one year if unused. These state net operating losses are available to offset future state taxable income, if any, through 2035. Foreign subsidiaries, primarily in Finland, Italy, Portugal and Sweden had net operating loss carryforwards totaling $57.7 million. The net operating losses in Portugal and Finland are available to offset future taxable income through 2027 and 2019, respectively. The net operating losses in Italy and Sweden are available indefinitely to offset future taxable income. For the U.S. federal and state jurisdictions there is a greater likelihood of not realizing the future tax benefits of these deferred tax assets, and accordingly, the Company has recorded valuation allowances related to the net deferred tax assets in these jurisdictions. For the foreign jurisdictions with net operating loss carryforwards, a valuation allowance has been recorded where the Company does not expect to fully realize the deferred tax assets in the future.

Utilization of the Company's net operating loss carryforwards may be subject to substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended (the "Code") and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization. The issuance of the Platinum Warrant may have given rise to an "ownership change" for purposes of Section 382 of the Code. If such an ownership change were deemed to have occurred, the amount of our taxable income that could be offset by the Company's net operating loss carryovers in taxable years after the ownership change would be severely limited. While the Company believes that the issuance of the Platinum Warrant did not result in an ownership change for purposes of Section 382 of the Code, there is no assurance that the Company's view will be unchallenged. Moreover, a future exercise of part or all of the Platinum Warrant may give rise to an ownership change in the future. Blue Powder was acquired which has substantial federal net operating losses that will now be limited due to the ownership change which occurred.

At March 31, 2015, the U.S. consolidated group of companies had the following tax credit carryforwards available (amounts in thousands):

	Tax Credits ($)	Fiscal Year of Expiration
U.S. foreign tax credits	5,805	2017
U.S. research credits	916	2023
Texas franchise tax credits	3,304	2026

The Company conducts business in Macedonia through a subsidiary that qualifies for a tax holiday. The tax holiday will terminate on January 1, 2023. For calendar years 2013, 2014, and 2015, the statutory rate of 10% was reduced to zero. For the fiscal year ended March 31, 2015 the Company realized an income tax benefit of $0.3 million from the tax holiday.

At March 31, 2015, the Company makes no assertion that unremitted earnings from subsidiaries outside the United States are indefinitely reinvested. This assertion changed this year based on an analysis of cash needs in the U.S. related to a planned acquisition and current debt funding. Due to the valuation allowance in the U.S., this assertion resulted in no cash tax impact. The Company has recognized a deferred tax liability relating to its investments in subsidiaries outside the United States.

At March 31, 2015, the Company had $6.4 million of unrecognized tax benefits. A reconciliation of gross unrecognized tax benefits (excluding interest and penalties) is as follows (amounts in thousands):

	Fiscal Years Ended March 31,
	2015			2014			2013
Beginning of fiscal year	$	5,691		$	5,395		$	6,321
Additions for tax positions of the current year	1,115			639			35
Additions for tax positions of prior years	—			19			37
Reductions for tax positions of prior years	(56		)	(28		)	(640		)
Lapse in statute of limitations	(203		)	—			(358		)
Settlements	(170		)	(334		)	—
End of fiscal year	$	6,377		$	5,691		$	5,395

At March 31, 2015, $1.7 million of the $6.4 million of unrecognized income tax benefits would affect the Company's effective income tax rate, if recognized. It is reasonably possible that the total unrecognized tax benefit could decrease by $1.1 million in fiscal year 2016 if the advanced pricing arrangement for one of the Company’s foreign subsidiaries is agreed to by the foreign tax authority. An estimate of the reasonably possible range cannot be made.

The Company files income tax returns in the U.S. and multiple foreign jurisdictions, including various state and local jurisdictions. The U.S. Internal Revenue Service concluded its examinations of the Company's U.S. federal tax returns for all tax years through 2003. Because of net operating losses, the Company's U.S. federal returns for 2003 and later years will remain subject to examination until the losses are utilized. The Company is subject to income tax examinations for the years 2008 and forward in Mexico and Portugal; and 2010 and forward in China and Italy. The Company records potential interest and penalty expenses related to unrecognized income tax benefits within its global operations in income tax expense. The Company had $0.3 million and $0.4 million of accrued interest and penalties respectively at March 31, 2015 and 2014, which is included as a component of income tax expense. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision.

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Quarterly Results of Operations (Unaudited) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 193,708	$ 201,310	$ 215,293	$ 212,881	$ 215,821	$ 207,339	$ 208,449	$ 202,057	$ 823,192	$ 833,666	$ 823,903
Operating (loss) income	912	9,302	12,770	(606)	(5,207)	3,623	1,585	(18,212)	22,378	(18,211)	(35,080)
Income (loss) from continuing operations	(19,847)	3,078	7,730	(10,483)	(14,550)	(4,744)	(11,945)	(33,630)	(19,522)	(64,869)	(78,512)
Income (loss) from discontinued operations, net of income tax expense (benefit) of $1,976, $(98) and $37, respectively	0	(164)	(1,400)	6,943	103	(1,076)	(1,151)	(1,510)	5,379	(3,634)	(3,670)
Net income (loss)	$ (19,847)	$ 2,914	$ 6,330	$ (3,540)	$ (14,447)	$ (5,820)	$ (13,096)	$ (35,140)	$ (14,143)	$ (68,503)	$ (82,182)
Net income (loss) per basic share:
Loss from continuing operations (in dollars per share)	$ (0.44)	$ 0.07	$ 0.17	$ (0.23)	$ (0.32)	$ (0.11)	$ (0.26)	$ (0.75)	$ (0.43)	$ (1.44)	$ (1.75)
Loss from discontinued operations (in dollars per share)	$ 0.00	$ 0.00	$ (0.03)	$ 0.15	$ 0.00	$ (0.02)	$ (0.03)	$ (0.03)	$ 0.12	$ (0.08)	$ (0.08)
Net income (loss) (in dollars per share)	$ (0.44)	$ 0.07	$ 0.14	$ (0.08)	$ (0.32)	$ (0.13)	$ (0.29)	$ (0.78)	$ (0.31)	$ (1.52)	$ (1.83)
Net income (loss) per diluted share:
Loss from continuing operations (in dollars per share)	$ (0.44)	$ 0.06	$ 0.15	$ (0.23)	$ (0.32)	$ (0.11)	$ (0.26)	$ (0.75)	$ (0.43)	$ (1.44)	$ (1.75)
Loss from discontinued operations (in dollars per share)	$ 0.00	$ 0.00	$ (0.03)	$ 0.15	$ 0.00	$ (0.02)	$ (0.03)	$ (0.03)	$ 0.12	$ (0.08)	$ (0.08)
Net income (loss) (in dollars per share)	$ (0.44)	$ 0.06	$ 0.12	$ (0.08)	$ (0.32)	$ (0.13)	$ (0.29)	$ (0.78)	$ (0.31)	$ (1.52)	$ (1.83)