Segment and Geographic Information

6 Months Ended

Sep. 30, 2012

Segment and Geographic Information

Segment and Geographic Information

Note 9. Segment and Geographic Information

The Company is organized into three business groups: Tantalum, the Ceramic Business Group (“Ceramic”), 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, general and administrative functions are shared by the business groups and substantially all expenses are allocated to each business group based on the business group’s respective budgeted net sales. Substantially all research and development expenses are direct costs to the respective business group.

Tantalum

Tantalum operates in seven manufacturing sites in the United States, Mexico, China and Portugal. This business group produces tantalum and aluminum polymer capacitors and produces tantalum powder used in the production of tantalum capacitors. Tantalum shares with Ceramic the Company’s product innovation center in the United States.  Tantalum products are sold in all regions of the world.

Ceramic

Ceramic operates in two manufacturing sites in Mexico. This business group produces ceramic capacitors. The business group shares with Tantalum the Company’s product innovation center in the United States. In addition, Ceramic maintains a design and manufacturing plant for electrical transformers, inductors, chokes, coils and filters in the United States. Ceramic products are sold in all regions of the world.

Film and Electrolytic

Film and Electrolytic operates in fourteen manufacturing sites in Europe, Asia and North America. This business group produces film, paper, and electrolytic capacitors. Film and Electrolytic also operates a machinery division located in Italy that provides automation solutions for the manufacture, processing and assembly of metalized films, film/foil and electrolytic capacitors; and designs, assembles and installs automation solutions for the production of energy storage devices. In addition, this business group has a product innovation center in Sweden. Film and Electrolytic products are sold in all regions of the world.

The following table reflects each business group’s net sales, operating income (loss), depreciation and amortization expenses and sales by region for the quarters and six months ended September 30, 2012 and 2011 (amounts in thousands):

	Quarters Ended September 30,					Six Months Ended September 30,
	2012			2011		2012			2011
Net sales:
Tantalum	$	109,308		$	112,290	$	218,507		$	234,733
Ceramic	53,116			56,112		104,661			115,491
Film and Electrolytic	53,567			97,112		116,455			205,146
	$	215,991		$	265,514	$	439,623		$	555,370
Operating income (loss) (1):
Tantalum	$	(579	)	$	10,601	$	1,904		$	28,013
Ceramic	6,882			10,553		13,479			21,409
Film and Electrolytic (2)	(20,323		)	3,759		(33,448		)	16,333
	$	(14,020	)	$	24,913	$	(18,065	)	$	65,755
Depreciation and amortization expenses:
Tantalum	$	6,206		$	6,705	$	12,018		$	12,913
Ceramic	1,864			2,002		3,929			3,805
Film and Electrolytic	3,450			3,145		7,230			6,293
	$	11,520		$	11,852	$	23,177		$	23,011

	Quarters Ended September 30,				Six Months Ended September 30,
	2012		2011		2012		2011
Sales by region:
North and South America (“Americas”)	$	62,243	$	81,663	$	122,728	$	154,422
Europe, Middle East, Africa (“EMEA”)	70,673		106,897		150,058		209,609
Asia and Pacific Rim (“APAC”)	83,075		76,954		166,837		191,339
	$	215,991	$	265,514	$	439,623	$	555,370

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

	Quarters Ended September 30,				Six Months Ended September 30,
	2012		2011		2012		2011
Total restructuring:
Tantalum	$	1,987	$	864	$	2,031	$	899
Ceramic	1,081		49		1,179		88
Film and Electrolytic	5,454		692		6,576		1,643
	$	8,522	$	1,605	$	9,786	$	2,630

(2)Film and Electrolytic incurred the following operating expenses (benefits): Goodwill impairment of $1.1 million, Write down of long-lived assets of $4.2 million and a Settlement gain on benefit plan of $(1.7) million.

	September 30, 2012		March 31, 2012
Total assets:
Tantalum	$	517,782	$	511,193
Ceramic	183,863		201,971
Film and Electrolytic	239,152		262,388
	$	940,797	$	975,552