Segment and Geographic Information

3 Months Ended

Jun. 30, 2013

Segment and Geographic Information

Segment and Geographic Information

Note 6. Segment and Geographic Information

In the first quarter of fiscal year 2014, the Company reorganized its business by combining its Tantalum Business Group and Ceramic Business Group into one business group, Solid Capacitors.  Following the reorganization, based on information regularly reviewed by the chief operating decision maker, KEMET’s two business groups are comprised of: the Solid Capacitors Business Group (“Solid Capacitors”) and the Film and Electrolytic Business Group (“Film and Electrolytic”).  These business groups are responsible for their respective manufacturing sites as well as all related research and development efforts.

Consistent with management reporting, the Company does not allocate indirect Selling, general and administrative (“SG&A”) and Research and development (“R&D”) expenses to the business groups.  Prior period information has been reclassified to conform to current year presentation.

Solid Capacitors

Operating in ten manufacturing sites in the United States, Mexico, China and Portugal, 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 fourteen manufacturing sites throughout Europe, Asia, and the United States and produces film, paper, and electrolytic capacitors which are sold globally. Film and Electrolytic also manufactures etched foils utilized as a core component in the manufacture of electrolytic capacitors and 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 product innovation centers in the United Kingdom, Italy, Germany and Sweden.

The following table reflects each business group’s net sales, operating income (loss), depreciation and amortization expenses and sales by region for the quarters ended June 30, 2013 and 2012 (amounts in thousands):

	Quarters Ended June 30,
	2013			2012
Net sales:
Solid Capacitors	$	149,401		$	160,744
Film and Electrolytic	53,322			62,888
	$	202,723		$	223,632
Operating income (loss)(1):
Solid Capacitors	$	12,808		$	25,518
Film and Electrolytic	(8,043		)	(6,208		)
Unallocated operating expenses	(24,723		)	(23,355		)
	$	(19,958	)	$	(4,045	)
Depreciation and amortization expenses:
Solid Capacitors	$	7,310		$	7,191
Film and Electrolytic	4,507			3,449
Unallocated operating expenses	1,914			1,016
	$	13,731		$	11,656

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

	Quarters Ended June 30,
Restructuring charges:	2013		2012
Solid Capacitors	$	3,045	$	142
Film and Electrolytic	1,410		1,122
Corporate	155		—
	$	4,610	$	1,264

	Quarters Ended June 30,
	2013		2012
Sales by region:
North and South America (“Americas”)	$	59,570	$	60,485
Europe, Middle East, Africa (“EMEA”)	73,041		79,385
Asia and Pacific Rim (“APAC”)	70,112		83,762
	$	202,723	$	223,632

The following table reflects each business group’s total assets as of June 30, 2013 and March 31, 2013 (amounts in thousands):

	June 30, 2013		March 31, 2013
Total assets:
Solid Capacitors	$	497,165	$	517,024
Film and Electrolytic	304,708		308,751
Corporate	79,297		85,816
	$	881,170	$	911,591