Condensed Consolidating Financial Statements

12 Months Ended

Mar. 31, 2012

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements

Note 17: 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.

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

Consolidating Balance Sheet
March 31, 2012

	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	7,933		$	178,205	$	24,383		$	—		$	210,521
Accounts receivable, net		—			42,706		62,244			—			104,950
Intercompany receivable		251,970			28,002		171,921			(451,893	)		—
Inventories, net		—			121,611		90,623			—			212,234
Prepaid expenses and other		306			13,537		18,416			—			32,259
Deferred income taxes		—			192		6,178			—			6,370
Total current assets		260,209			384,253		373,765			(451,893	)		566,334
Property and equipment, net		20			114,615		201,213			—			315,848
Investments in subsidiaries		454,517			435,970		(4,622	)		(885,865	)		—
Goodwill		—			36,676		—			—			36,676
Intangible assets, net		—			31,630		9,897			—			41,527
Other assets		7,796			6,160		1,211			—			15,167
Long-term intercompany receivable		79,185			62,235		1,065			(142,485	)		—
Total assets	$	801,727		$	1,071,539	$	582,529		$	(1,480,243	)	$	975,552
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	—		$	25	$	1,926		$	—		$	1,951
Accounts payable, trade		460			35,206		39,490			(752	)		74,404
Intercompany payable		34,830			315,906		122,799			(473,535	)		—
Accrued expenses		30,747			23,007		35,325			—			89,079
Income taxes payable		(2,778	)		3,031		2,003			—			2,256
Total current liabilities		63,259			377,175		201,543			(474,287	)		167,690
Long-term debt, less current portion		343,539			—		1,841			—			345,380
Other non-current obligations		35,933			5,400		59,896			—			101,229
Deferred income taxes		—			272		1,985			—			2,257
Long-term intercompany payable		—			79,185		63,300			(142,485	)		—
Stockholders' equity		358,996			609,507		253,964			(863,471	)		358,996
Total liabilities and stockholders' equity	$	801,727		$	1,071,539	$	582,529		$	(1,480,243	)	$	975,552

Consolidating Balance Sheet
March 31, 2011

	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	6,417		$	119,326	$	26,308		$	—		$	152,051
Accounts receivable, net		—			64,380		85,990			—			150,370
Intercompany receivable		190,973			176,233		197,329			(564,535	)		—
Inventories, net		—			113,908		92,830			(298	)		206,440
Prepaid expenses and other		302			11,034		16,761			—			28,097
Deferred income taxes		(596	)		1,373		4,524			—			5,301
Total current assets		197,096			486,254		423,742			(564,833	)		542,259
Property and equipment, net		122			82,962		227,328			—			310,412
Investments in subsidiaries		347,997			333,801		(5,686	)		(676,112	)		—
Intangible assets, net		—			8,666		11,426			—			20,092
Other assets		6,160			4,356		1,030			—			11,546
Long-term intercompany receivable		84,231			102,324		—			(186,555	)		—
Total assets	$	635,606		$	1,018,363	$	657,840		$	(1,427,500	)	$	884,309
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	39,012		$	—	$	3,089		$	—		$	42,101
Accounts payable, trade		40			32,762		58,195			—			90,997
Intercompany payable		732			419,043		145,058			(564,833	)		—
Accrued expenses		10,837			31,330		46,124			—			88,291
Income taxes payable		(1,380	)		1,434		4,211			—			4,265
Total current liabilities		49,241			484,569		256,677			(564,833	)		225,654
Long-term debt, less current portion		227,208			—		4,007			—			231,215
Other non-current obligations		—			7,989		51,738			—			59,727
Deferred income taxes		(596	)		2,169		6,387			—			7,960
Long-term intercompany payable		—			84,231		102,324			(186,555	)		—
Stockholders' equity		359,753			439,405		236,707			(676,112	)		359,753
Total liabilities and stockholders' equity	$	635,606		$	1,018,363	$	657,840		$	(1,427,500	)	$	884,309

Consolidating Statements of Operations
Fiscal Year Ended March 31, 2012

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	—		$	938,525		$	944,166		$	(897,858	)	$	984,833
Operating costs and expenses:
Cost of sales		799			799,659			848,822			(873,610	)		775,670
Selling, general and administrative expenses		32,846			58,767			44,813			(24,862	)		111,564
Research and development		—			21,283			8,157			—			29,440
Restructuring charges		—			2,255			11,999			—			14,254
Net (gain) loss on sales and disposals of assets		—			384			(66	)		—			318
Write down of long-lived assets		—			—			15,786			—			15,786
Total operating costs and expenses		33,645			882,348			929,511			(898,472	)		947,032
Operating income (loss)		(33,645	)		56,177			14,655			614			37,801
Interest income		(12	)		(58	)		(105	)		—			(175	)
Interest expense		27,375			459			733			—			28,567
Other (income) expense, net		(59,913	)		62,093			(986	)		(229	)		965
Equity in earnings of subsidiaries		(6,595	)		—			—			6,595			—
Income (loss) before income taxes		5,500			(6,317	)		15,013			(5,752	)		8,444
Income tax expense (benefit)		(1,192	)		(80	)		3,024			—			1,752
Net income (loss)	$	6,692		$	(6,237	)	$	11,989		$	(5,752	)	$	6,692

Consolidating Statements of Comprehensive Loss
Fiscal Year Ended March 31, 2012

Comprehensive loss $ (5,046 ) $ (983 ) $ (4,506 ) $ — $ (10,535 )

Consolidating Statements of Operations
Fiscal Year Ended March 31, 2011

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	—		$	948,292		$	983,594		$	(913,398	)	$	1,018,488
Operating costs and expenses:
Cost of sales		—			738,855			889,886			(875,895	)		752,846
Selling, general and administrative expenses		36,607			64,521			38,978			(35,499	)		104,607
Research and development		—			19,148			6,961			(245	)		25,864
Restructuring charges		—			4,378			2,793			—			7,171
Net (gain) loss on sales and disposals of assets		—			(1,705	)		444			—			(1,261	)
Total operating costs and expenses		36,607			825,197			939,062			(911,639	)		889,227
Operating income (loss)		(36,607	)		123,095			44,532			(1,759	)		129,261
Interest income		(20	)		(110	)		(88	)		—			(218	)
Interest expense		28,399			260			1,516			—			30,175
Loss on early extinguishment of debt		38,248			—			—			—			38,248
Other (income) expense, net		(30,751	)		25,631			331			97			(4,692	)
Equity in earnings of subsidiaries		(135,521	)		—			—			135,521			—
Income before income taxes		63,038			97,314			42,773			(137,377	)		65,748
Income tax expense (benefit)		(6	)		9			2,701			—			2,704
Net income	$	63,044		$	97,305		$	40,072		$	(137,377	)	$	63,044

Consolidating Statements of Comprehensive Income (Loss)
Fiscal Year Ended March 31, 2011

Comprehensive income (loss) $ 11,265 $ (5,245 ) $ 4,545 $ — $ 10,565

Consolidating Statements of Operations
Fiscal Year Ended March 31, 2010

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Reclassifications and Eliminations			Consolidated
Net sales	$	—		$	706,700		$	757,587		$	(727,952	)	$	736,335
Operating costs and expenses:
Cost of sales		—			606,361			698,823			(693,546	)		611,638
Selling, general and administrative expenses		32,339			50,047			38,368			(34,669	)		86,085
Research and development		—			16,820			5,244			—			22,064
Restructuring charges		—			1,486			7,712			—			9,198
Net (gain) loss on sales and disposals of assets		—			2,717			(3,720	)		—			(1,003	)
Write down of long-lived assets		—			—			656			—			656
Total operating costs and expenses		32,339			677,431			747,083			(728,215	)		728,638
Operating income (loss)		(32,339	)		29,269			10,504			263			7,697
Interest income		—			(119	)		(69	)		—			(188	)
Interest expense		24,849			238			921			—			26,008
Gain on early extinguishment of debt		(38,921	)		—			—			—			(38,921	)
Increase in value of warrant		81,088			—			—			—			81,088
Other (income) expense, net		(32,196	)		35,893			424			—			4,121
Equity in earnings of subsidiaries		1,789			—			—			(1,789	)		—
Income (loss) before income taxes		(68,948	)		(6,743	)		9,228			2,052			(64,411	)
Income tax expense		499			485			4,052			—			5,036
Net income (loss)	$	(69,447	)	$	(7,228	)	$	5,176		$	2,052		$	(69,447	)

Consolidating Statements of Comprehensive Income (Loss)
Fiscal Year Ended March 31, 2010

Comprehensive income (loss) $ — $ 157 $ (830 ) $ — $ (673 )

Consolidating Statements of Cash Flows
Fiscal Year Ended March 31, 2012

	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	$	(71,930	)	$	124,591		$	28,069		$	—	$	80,730
Investing activities:
Capital expenditures		—			(23,099	)		(26,215	)		—		(49,314	)
Acquisitions net of cash received		—			(42,613	)		—			—		(42,613	)
Proceeds from sale of assets		—			—			74			—		74
Net cash used in investing activities		—			(65,712	)		(26,141	)		—		(91,853	)
Financing activities:
Proceeds from issuance of debt		116,050			—			—			—		116,050
Payment of long-term debt		(40,581	)		—			—			—		(40,581	)
Net (payments) borrowings under other credit facilities		—			—			(3,154	)		—		(3,154	)
Debt issuance costs		(2,313	)		—			—			—		(2,313	)
Proceeds from exercise of stock options		290			—			—			—		290
Net cash provided by (used in) financing activities		73,446			—			(3,154	)		—		70,292
Net increase (decrease) in cash and cash equivalents		1,516			58,879			(1,226	)		—		59,169
Effect of foreign currency fluctuations on cash		—			—			(699	)		—		(699	)
Cash and cash equivalents at beginning of fiscal year		6,417			119,326			26,308			—		152,051
Cash and cash equivalents at end of fiscal year	$	7,933		$	178,205		$	24,383		$	—	$	210,521

Consolidating Statements of Cash Flows
Fiscal Year Ended March 31, 2011

	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	$	(13,967	)	$	90,445		$	37,490		$	—	$	113,968
Investing activities:
Capital expenditures		—			(15,842	)		(19,147	)		—		(34,989	)
Proceeds from sale of assets		—			5,425			—			—		5,425
Net cash used in investing activities		—			(10,417	)		(19,147	)		—		(29,564	)
Financing activities:
Proceeds from issuance of debt		226,976			—			549			—		227,525
Payments of long-term debt		(210,604	)		(15,000	)		(4,809	)		—		(230,413	)
Net (payments) borrowings under other credit facilities		—			—			(2,479	)		—		(2,479	)
Debt issuance costs		(7,472	)		(381	)		—			—		(7,853	)
Debt extinguishment costs		(207	)		—			—			—		(207	)
Proceeds from exercise of stock options		89			—			—			—		89
Net cash provided by (used in) financing activities		8,782			(15,381	)		(6,739	)		—		(13,338	)
Net increase (decrease) in cash     and cash equivalents		(5,185	)		64,647			11,604			—		71,066
Effect of foreign currency fluctuations on cash		—			(28	)		1,814			—		1,786
Cash and cash equivalents at beginning of fiscal year		11,602			54,707			12,890			—		79,199
Cash and cash equivalents at end of fiscal year	$	6,417		$	119,326		$	26,308		$	—	$	152,051

Consolidating Statements of Cash Flows
Fiscal Year Ended March 31, 2010

	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	$	(885	)	$	33,746		$	21,759		$	—	$	54,620
Investing activities:
Capital expenditures		(56	)		(3,200	)		(9,665	)		—		(12,921	)
Proceeds from sale of assets		—			1,500			—			—		1,500
Net cash used in investing activities		(56	)		(1,700	)		(9,665	)		—		(11,421	)
Financing activities:
Proceeds from issuance of debt		57,830			—			1,119			—		58,949
Payments of long-term debt		(49,565	)		—			(4,960	)		—		(54,525	)
Net (payments) borrowings under other credit facilities		—			—			475			—		475
Permanent intercompany financing		12,062			(12,062	)		—			—		—
Debt issuance costs		(4,206	)		—			—			—		(4,206	)
Debt extinguishment costs		(3,605	)		—			—			—		(3,605	)
Dividends received (paid)		—			8,883			(8,883	)		—		—
Net cash provided by (used in) financing activities		12,516			(3,179	)		(12,249	)		—		(2,912	)
Net increase (decrease) in cash and cash equivalents		11,575			28,867			(155	)		—		40,287
Effect of foreign currency fluctuations on cash		—			(28	)		(264	)		—		(292	)
Cash and cash equivalents at beginning of fiscal year		27			25,868			13,309			—		39,204
Cash and cash equivalents at end of fiscal year	$	11,602		$	54,707		$	12,890		$	—	$	79,199