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Investment in NEC TOKIN
 6 Months Ended
Sep. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]  
Investment in NEC TOKIN
Investment in TOKIN
Under the Option Agreement between KEC and NEC, from April 1, 2015 through May 31, 2018, NEC could have required KEC to purchase all outstanding capital stock of TOKIN from its stockholders, primarily NEC (the “Put Option”), provided that KEC’s payment of the Put Option price was permitted under the 10.5% Senior Notes and Loan and Security Agreement. On April 19, 2017, the Company acquired the remaining 66% economic interest in TOKIN and TOKIN became a 100% owned subsidiary of KEMET. See Note 2, “Acquisitions”, for additional information. Pursuant to the TOKIN Purchase Agreement, the Put Option was canceled. The line item “Other non-current obligations” on the Condensed Consolidated Balance Sheets included $9.9 million as of March 31, 2017 related to the fair value of the Put Option.
Summarized financial information for TOKIN follows (amounts in thousands):
 
Quarter Ended September 30, 2016
 
19 Day Period Ended April 19, 2017
 
Six-Month Period Ended September 30, 2016
Sales
$
126,589

 
$
23,649

 
$
247,099

Gross profit
27,055

 
6,647

 
53,601

Net income (loss) (1)
2,012

 
247,786

 
4,362

_________________
(1) The significant change between the periods was due to the gain from the Sale of EMD that occurred on April 14, 2017; see the discussion in Note 2, “Acquisitions” for more information.
A reconciliation between TOKIN’s net income (loss) and KEC’s equity investment income (loss) follows (amounts in thousands):
 
Quarter Ended September 30, 2016
 
19 Day Period Ended April 19, 2017
 
Six-Month Period Ended September 30, 2016
TOKIN net income (loss)
$
2,012

 
$
247,786

 
$
4,362

KEC’s economic interest %
34
%
 
34
%
 
34
%
Equity income (loss) from TOKIN before adjustments
684

 
84,247

 
1,483

 


 


 
 
Adjustments:


 


 
 
Amortization and depreciation
(581
)
 
(113
)
 
(1,125
)
Removal of EMD memo accounts
—

 
(8,981
)
 
—

Inventory profit elimination
78

 
24

 
46

Equity income (loss) from TOKIN
$
181

 
$
75,177

 
$
404

Acquired equity method investment income (loss)
$
—

 
$
240

 
$
—

Equity income (loss) from equity method investments
$
181

 
$
75,417

 
$
404

Summarized transactions between KEC and TOKIN are as follows (amounts in thousands):
 
Quarter Ended September 30, 2016
 
19 Day Period Ended April 19, 2017
 
Six-Month Period Ended September 30, 2016
KEC’s sales to TOKIN
$
5,135

 
$
727

 
$
8,282

TOKIN’s sales to KEMET
1,889

 
356

 
3,761