Segment and Geographic Information

9 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment and Geographic Information

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 Film and Electrolytic and Solid Capacitors.  The business groups are responsible for their respective manufacturing sites as well as their respective 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

Operating in fifteen manufacturing sites throughout Europe, Asia, and the United States, Film and Electrolytic primarily 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. 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 and nine month periods ended December 31, 2013 and 2012 (amounts in thousands):

	Quarters Ended December 31,						Nine Month Periods Ended December 31,
	2013			2012			2013			2012
Net sales:
Solid Capacitors	$	156,082		$	149,772		$	463,197		$	472,940
Film and Electrolytic	51,257			47,926			154,648			151,423
	$	207,339		$	197,698		$	617,845		$	624,363
Operating income (loss) (1):
Solid Capacitors (2)	$	27,616		$	24,757		$	65,795		$	73,325
Film and Electrolytic (3)	(2,374		)	(5,554		)	(10,888		)	(23,049		)
Unallocated operating expenses	(21,619		)	(22,615		)	(67,911		)	(70,827		)
	$	3,623		$	(3,412	)	$	(13,004	)	$	(20,551	)
Depreciation and amortization expenses:
Solid Capacitors	$	6,798		$	6,091		$	21,409		$	20,616
Film and Electrolytic	3,360			3,234			10,960			9,578
Unallocated operating expenses	1,601			1,080			4,983			3,195
	$	11,759		$	10,405		$	37,352		$	33,389

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

	Quarters Ended December 31,				Nine Month Periods Ended December 31,
	2013		2012		2013		2012
Restructuring charges:
Solid Capacitors	$	91	$	2,030	$	3,235	$	5,389
Film and Electrolytic	2,100		1,856		4,573		8,283
Corporate	3		—		361		—
	$	2,194	$	3,886	$	8,169	$	13,672

___________________

(2) Solid Capacitors incurred operating expenses related to the Write down of long-lived assets of $2.8 million and $3.1 million in the quarters and nine month periods endedDecember 31, 2013 and December 31, 2012, respectively. In the quarters and nine month periods endedDecember 31, 2012 Solid Capacitors incurred a curtailment charge on a benefit plan of $0.4 million.

(3) In the quarter and nine month period endedDecember 31, 2013, Film and Electrolytic incurred expenses related to the Write down of long-lived assets of $0.6 million. In the nine month period endedDecember 31, 2012, 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 net curtailment and settlement gain on benefit plans of $1.5 million.

	Quarters Ended December 31,				Nine Month Periods Ended December 31,
	2013		2012		2013		2012
Sales by region:
North and South America (“Americas”)	$	67,875	$	61,255	$	192,625	$	182,684
Europe, Middle East, Africa (“EMEA”)	68,026		65,081		209,183		212,473
Asia and Pacific Rim (“APAC”)	71,438		71,362		216,037		229,206
	$	207,339	$	197,698	$	617,845	$	624,363

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

	December 31, 2013		March 31, 2013
Total assets:
Solid Capacitors	$	483,352	$	517,024
Film and Electrolytic	289,287		297,518
Corporate	78,907		85,816
Discontinued operations	10,779		11,233
	$	862,325	$	911,591