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Investment in NEC TOKIN
 9 Months Ended
Dec. 31, 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, 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% indirectly 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 December 31, 2016
 
19 Day Period Ended April 19, 2017
 
Nine-Month Period Ended December 31, 2016
Sales
$
127,845

 
$
23,649

 
$
374,944

Gross profit
28,886

 
6,647

 
82,487

Net income (loss) (1)
1,082

 
247,786

 
5,444

_________________
(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 December 31, 2016
 
19 Day Period Ended April 19, 2017
 
Nine-Month Period Ended December 31, 2016
TOKIN net income (loss)
$
1,082

 
$
247,786

 
$
5,444

KEC’s economic interest %
34
%
 
34
%
 
34
%
Equity income (loss) from TOKIN before adjustments
368

 
84,247

 
1,851

 


 


 
 
Adjustments:


 


 
 
Amortization and depreciation
(562
)
 
(113
)
 
(1,686
)
Removal of EMD memo accounts
—

 
(8,981
)
 
—

Inventory profit elimination
61

 
24

 
106

Equity income (loss) from TOKIN
$
(133
)
 
$
75,177

 
$
271

Acquired equity method investment income (loss)
$
—

 
$
240

 
$
—

Equity income (loss) from equity method investments
$
(133
)
 
$
75,417

 
$
271

Summarized transactions between KEC and TOKIN are as follows (amounts in thousands):
 
Quarter Ended December 31, 2016
 
19 Day Period Ended April 19, 2017
 
Nine-Month Period Ended December 31, 2016
KEC’s sales to TOKIN
$
4,814

 
$
727

 
$
13,096

TOKIN’s sales to KEMET
2,350

 
356

 
6,112