Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-15491 | |
Entity Registrant Name | KEMET CORP | |
Entity Central Index Key | 0000887730 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 57-0923789 | |
Entity Address, Address Line One | KEMET Tower, One East Broward Blvd. | |
Entity Address, City or Town | Fort Lauderdale | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33301 | |
City Area Code | 954 | |
Local Phone Number | 766-2800 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | KEM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 58,025,570 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 217,307 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 219,882 | $ 207,918 | |
Accounts receivable, net | [1] | 154,522 | 154,059 |
Inventories, net | 256,140 | 241,129 | |
Prepaid expenses and other current assets | 48,187 | 38,947 | |
Total current assets | [1] | 676,156 | 642,053 |
Noncurrent Assets: | |||
Property, plant and equipment, net of accumulated depreciation of $889,142 and $880,451 as of June 30, 2019 and March 31, 2019, respectively | 518,310 | 495,280 | |
Goodwill | 40,294 | 40,294 | |
Intangible assets, net | 53,448 | 53,749 | |
Equity method investments | 14,238 | 12,925 | |
Equity method investments | 44,544 | 57,024 | |
Other assets | [1] | 44,216 | 16,770 |
Total assets | [1] | 1,391,206 | 1,318,095 |
Current liabilities: | |||
Current portion of long-term debt | 29,225 | 28,430 | |
Accounts payable | 161,853 | 153,287 | |
Accrued expenses | [1] | 79,173 | 93,761 |
Income taxes payable | 808 | 2,995 | |
Total current liabilities | [1] | 271,059 | 278,473 |
Liabilities, Noncurrent [Abstract] | |||
Long-term debt | 282,871 | 266,041 | |
Other non-current obligations | [1] | 149,267 | 125,360 |
Deferred Tax Liabilities, Net, Noncurrent | [1] | 11,214 | 8,806 |
Liabilities | [1] | 714,411 | 678,680 |
Stockholders’ equity: | |||
Preferred stock, par value $0.01, authorized 10,000 shares, none issued | 0 | 0 | |
Common stock, par value $0.01, authorized 175,000 shares, issued 58,018 and 57,822 shares at June 30, 2019 and March 31, 2019, respectively | 580 | 578 | |
Additional paid-in capital | 466,704 | 465,366 | |
Retained earnings (deficit) | [1] | 241,635 | 204,195 |
Accumulated other comprehensive income (loss) | [1] | (32,124) | (30,724) |
Total stockholders’ equity | [1] | 676,795 | 639,415 |
Total liabilities and stockholders’ equity | [1] | $ 1,391,206 | $ 1,318,095 |
[1] | June 30, 2019 March 31, 2019 ASSETS Current assets: Cash and cash equivalents $ 217,307 $ 207,918 Accounts receivable, net 154,522 154,059 Inventories, net 256,140 241,129 Prepaid expenses and other current assets 48,187 38,947 Total current assets 676,156 642,053 Property, plant and equipment, net of accumulated depreciation of $889,142 and $880,451 as of June 30, 2019 and March 31, 2019, respectively 518,310 495,280 Goodwill 40,294 40,294 Intangible assets, net 53,448 53,749 Equity method investments 14,238 12,925 Deferred income taxes 44,544 57,024 Other assets 44,216 16,770 Total assets $ 1,391,206 $ 1,318,095 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 29,225 $ 28,430 Accounts payable 161,853 153,287 Accrued expenses 79,173 93,761 Income taxes payable 808 2,995 Total current liabilities 271,059 278,473 Long-term debt 282,871 266,041 Other non-current obligations 149,267 125,360 Deferred income taxes 11,214 8,806 Total liabilities 714,411 678,680 Stockholders’ equity: Preferred stock, par value $0.01, authorized 10,000 shares, none issued — — Common stock, par value $0.01, authorized 175,000 shares, issued 58,018 and 57,822 shares at June 30, 2019 and March 31, 2019, respectively 580 578 Additional paid-in capital 466,704 465,366 Retained earnings 241,635 204,195 Accumulated other comprehensive income (loss) (32,124 ) (30,724 ) Total stockholders’ equity 676,795 639,415 Total liabilities and stockholders’ equity $ 1,391,206 $ 1,318,095 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Financial Position [Abstract] | |||
Accrued expenses | [1] | $ 79,173 | $ 93,761 |
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, accumulated depreciation | $ 889,142 | $ 866,614 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 | |
Preferred stock, issued shares | 0 | 0 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01003130893 | $ 0.01020462209 | |
Common stock, authorized shares | 175,000,000 | 175,000,000 | |
Common stock, issued shares | 57,818,975 | 56,641,000 | |
[1] | June 30, 2019 March 31, 2019 ASSETS Current assets: Cash and cash equivalents $ 217,307 $ 207,918 Accounts receivable, net 154,522 154,059 Inventories, net 256,140 241,129 Prepaid expenses and other current assets 48,187 38,947 Total current assets 676,156 642,053 Property, plant and equipment, net of accumulated depreciation of $889,142 and $880,451 as of June 30, 2019 and March 31, 2019, respectively 518,310 495,280 Goodwill 40,294 40,294 Intangible assets, net 53,448 53,749 Equity method investments 14,238 12,925 Deferred income taxes 44,544 57,024 Other assets 44,216 16,770 Total assets $ 1,391,206 $ 1,318,095 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 29,225 $ 28,430 Accounts payable 161,853 153,287 Accrued expenses 79,173 93,761 Income taxes payable 808 2,995 Total current liabilities 271,059 278,473 Long-term debt 282,871 266,041 Other non-current obligations 149,267 125,360 Deferred income taxes 11,214 8,806 Total liabilities 714,411 678,680 Stockholders’ equity: Preferred stock, par value $0.01, authorized 10,000 shares, none issued — — Common stock, par value $0.01, authorized 175,000 shares, issued 58,018 and 57,822 shares at June 30, 2019 and March 31, 2019, respectively 580 578 Additional paid-in capital 466,704 465,366 Retained earnings 241,635 204,195 Accumulated other comprehensive income (loss) (32,124 ) (30,724 ) Total stockholders’ equity 676,795 639,415 Total liabilities and stockholders’ equity $ 1,391,206 $ 1,318,095 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenues [Abstract] | |||
Net sales | [1] | $ 345,242 | $ 327,616 |
Operating costs and expenses: | |||
Cost of sales | [1] | 223,614 | 232,795 |
Selling, general and administrative expenses | 47,885 | 48,542 | |
Research and development | 12,175 | 10,688 | |
Restructuring charges | 2,208 | (96) | |
(Gain) loss on write down and disposal of long-lived assets | 960 | 511 | |
Total operating costs and expenses | [1] | 286,842 | 292,440 |
Operating income (loss) | [1] | 58,400 | 35,176 |
Non-operating (income) expense | |||
Interest income | (809) | (378) | |
Interest expense | 2,545 | 7,036 | |
Other (income) expense, net | (726) | (11,371) | |
Income (loss) before income taxes and equity income (loss) from equity method investments | [1] | 57,390 | 39,889 |
Income tax expense (benefit) | [1] | 16,800 | 4,600 |
Income (loss) before equity income (loss) from equity method investments | [1] | 40,590 | 35,289 |
Equity income (loss) from equity method investments | (250) | (69) | |
Net income (loss) | [1],[2] | $ 40,340 | $ 35,220 |
Net income (loss) per basic share: | |||
Net income (loss) per basic share (in usd per share) | $ 0.69 | $ 0.61 | |
Net income (loss) per diluted share (in usd per share) | 0.68 | 0.60 | |
Dividends declared per share | $ 0.05 | $ 0 | |
Weighted-average shares outstanding: | |||
Basic (in shares) | 58,350 | 57,339 | |
Diluted (in shares) | 59,055 | 59,038 | |
[1] | |||
[2] |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | [1],[2] | $ 40,340 | $ 35,220 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gains (losses) | [2] | 3,179 | (24,203) |
Defined benefit pension plans | 164 | 39 | |
Defined benefit post-retirement plan adjustments | (37) | (39) | |
Equity interest in investee's other comprehensive income (loss) | 0 | (11) | |
Cash flow hedges | (5,998) | (4,438) | |
Excluded component of fair value hedges | 1,292 | 0 | |
Other comprehensive income (loss) | [2] | (1,400) | (28,652) |
Total comprehensive income (loss) | [2] | $ 38,940 | $ 6,568 |
[1] | |||
[2] |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement of Cash Flows [Abstract] | |||
Restricted Cash | $ 2,575 | $ 0 | |
Net income (loss) | [1],[2] | 40,340 | 35,220 |
Operating Activities: | |||
Depreciation and amortization | [3] | 14,259 | 13,097 |
Equity (income) loss from equity method investments | 250 | 69 | |
Non-cash debt and financing costs | 894 | 229 | |
Stock-based compensation expense | 2,725 | 4,060 | |
Rent receivable | 0 | 3,077 | |
(Gain) loss on write down and disposal of long-lived assets | 960 | 511 | |
Pension and other post-retirement benefits | 1,341 | 1,274 | |
Change in deferred income taxes | [3] | 14,895 | 951 |
Change in operating assets | [3] | (15,626) | (24,520) |
Change in operating liabilities | [3] | (26,268) | (49,330) |
Other | (57) | (488) | |
Net cash provided by (used in) operating activities | [3] | 33,713 | (15,850) |
Investing activities: | |||
Capital expenditures | (37,112) | (16,021) | |
Payments to Acquire Interest in Joint Venture | (2,000) | 0 | |
Net cash used in investing activities | (38,679) | (15,249) | |
Financing activities: | |||
Proceeds from Issuance of Secured Debt | 12,541 | 0 | |
Proceeds from Hedge, Financing Activities | 6,476 | 0 | |
Finance Lease, Principal Payments | (367) | 0 | |
Payments of long-term debt | 0 | (4,313) | |
Proceeds from exercise of stock options | 30 | 275 | |
Payments of Ordinary Dividends, Common Stock | (2,900) | 0 | |
Proceeds from Equity Method Investment, Distribution | 433 | 772 | |
Net cash provided by (used in) financing activities | 15,780 | (4,038) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 10,814 | (35,137) | |
Effect of foreign currency fluctuations on cash, cash equivalents and restricted cash | [3] | 1,150 | (7,061) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 219,882 | 244,648 | |
Cash, cash equivalents, and restricted cash, at end of fiscal period | $ 217,307 | $ 244,648 | |
[1] | |||
[2] | |||
[3] |
Basis of Financial Statement Pr
Basis of Financial Statement Presentation | 3 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The Condensed Consolidated Financial Statements contained herein are unaudited and have been prepared from the books and records of KEMET Corporation and its subsidiaries (“KEMET” or the “Company”). In the opinion of management, the Condensed Consolidated Financial Statements reflect all adjustments, consisting only of normal recurring adjustments unless otherwise disclosed, necessary for a fair presentation of the results for the interim periods. The Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q, and therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). Although the Company believes the disclosures are adequate to make the information presented not misleading, it is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended March 31, 2019 (the “Company’s 2019 Annual Report”). The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. In consolidation, all intercompany amounts and transactions have been eliminated. Net sales and operating results for the three months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year. The Company’s significant accounting policies are presented in the Company’s 2019 Annual Report. Refer to the “Change in Accounting Policies” section below for changes in accounting policies since the issuance of the Company's 2019 Annual Report. Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions, and judgments based on historical data and other assumptions that management believes are reasonable. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. In addition, they affect the reported amounts of revenues and expenses during the reporting period. The Company’s judgments are based on management’s assessment as to the effect certain estimates, assumptions, or future trends or events may have on the financial condition and results of operations reported in the unaudited condensed consolidated financial statements. It is important that readers of these unaudited financial statements understand that actual results could differ from these estimates, assumptions, and judgments. Change in Accounting Policies Effective April 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”) and Accounting Standards Update (“ASU”) No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing (Hosting) Arrangement that is a Service Contract (“ASU 2018-15”). As a result, the Company changed its accounting policy for leases and for implementation costs related to hosting arrangements. Except as discussed below, there have not been any other changes to the Company's significant accounting policies since the issuance of the Company's 2019 Annual Report. Leases ASC 842 requires the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases on the Condensed Consolidated Balance Sheets. The Company adopted ASC 842 using a modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to not reassess whether arrangements contained leases, not reassess lease classifications, and not reassess initial direct costs. The adoption of ASC 842 did not impact beginning retained earnings, or the prior year Condensed Consolidated Statements of Operations and Cash Flows. Under ASC 842, the Company determines if an arrangement contains a lease at inception based on whether or not the Company has the right to control the asset during the contract period and other facts and circumstances. The Company has elected to not allocate the contract consideration for operating lease contracts with lease and non-lease components, and account for the lease and non-lease components as a single lease component. Operating lease ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The operating lease ROU asset also includes any lease prepayments, net of lease incentives. Leases with a lease term of 12 months or less at inception are not recorded on the Condensed Consolidated Balance Sheets and are expensed on a straight-line basis over the lease term in the Condensed Consolidated Statements of Operations. The lease term is determined by assuming the exercise of renewal options that are reasonably certain. As most of the Company's leases do not provide an implicit interest rate, the Company uses its local incremental borrowing rate at the lease commencement date to determine the present value of lease payments. ROU assets and the short-term and long-term lease liabilities from operating leases are included in “Other assets,” “Accrued expenses,” and “Other non-current obligations,” respectively, in the Condensed Consolidated Balance Sheet. The Company's accounting for finance leases (formerly referred to as capital leases prior to the adoption of ASC 842) remains substantially unchanged. Finance leases are not material to the Company's Condensed Consolidated Financial Statements. Refer to Note 14 , Leases , for additional information regarding the Company's leases and related transition adjustments. Capitalized Software and Cloud-computing Arrangements In August 2018, the FASB issued ASU No. 2018-15. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company early adopted the amendment in the first quarter of fiscal year 2020 and is applying the ASU prospectively to implementation costs incurred after April 1, 2019. As of June 30, 2019 , the Company had $2.2 million of capitalized implementation costs related to cloud-computing arrangements, net of amortization. These capitalized implementation costs are amortized on a straight-line basis over the expected terms of the hosting arrangements and are amortized in the same line item in the Consolidated Statements of Operations as the expense for fees for the associated hosting arrangements. Significant Accounting Policies Revenue Recognition The Company recognizes revenue under the guidance provided in ASC 606, Revenue from Contracts with Customers (“ASC 606”). Consistent with the terms of ASC 606, the Company records revenue on product sales in the period in which the Company satisfies its performance obligation by transferring control over a product to a customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for transferring products to a customer. The Company has elected the practical expedient under ASC 606-10-32-18 and does not consider the effects of a financing component on the promised amount of consideration because the period between when the Company transfers a product to a customer and when the customer pays for that product is one year or less. As performance obligations are expected to be fulfilled in one year or less, the Company has elected the practical expedient under ASC 606-10-50-14 and has not disclosed information relating to remaining performance obligations. The Company sells its products to distributors, original equipment manufacturers (“OEM”), and electronic manufacturing services providers (“EMS”), and the sales price may include adjustments for sales discounts, price adjustments, and sales allowances. The Company has elected the practical expedient under ASC 606-10-10-4 and evaluates these sales-related adjustments on a portfolio basis. The principle forms of these adjustments include: • Inventory price protection and ship-from stock and debit (“SFSD”) programs, • Distributor rights of returns, • Sales allowances, and • Limited assurance warranties The Company's inventory price protection and SFSD programs provide authorized distributors with the flexibility to meet marketplace prices by allowing them, upon a pre-approved case-by-case basis, to adjust their purchased inventory cost to correspond with current market demand. Requests for SFSD adjustments are considered on an individual basis, require a pre-approved cost adjustment quote from their local KEMET sales representative, and apply only to a specific customer, part, specified special price amount, specified quantity, and are only valid for a specific period of time. To estimate potential SFSD adjustments corresponding with current period sales, KEMET records a sales reserve based on historical SFSD credits, distributor inventory levels, and certain accounting assumptions, all of which are reviewed quarterly. Select distributors have the right to return a certain portion of their purchased inventory to KEMET from the previous fiscal quarter. The Company estimates future returns based on historical return patterns and records a corresponding right of return asset and refund liability as a component of the line items, “Inventories, net” and “Accrued expenses,” respectively, on the Condensed Consolidated Balance Sheets. The Company also offers volume based rebates on a case-by-case basis to certain customers in each of the Company’s sales channels. The Company's sales allowances are recognized as a reduction in the line item “Net sales” on the Condensed Consolidated Statements of Operations, while the associated reserves are included in the line item “Accounts receivable, net” on the Condensed Consolidated Balance Sheets. Estimates used in determining sales allowances are subject to various factors. This includes, but is not limited to, changes in economic conditions, pricing changes, product demand, inventory levels in the supply chain, the effects of technological change, and other variables that might result in changes to the Company’s estimates. The Company provides a limited assurance warranty on products that meet certain specifications to select customers. The warranty coverage period is generally limited to one year for United States based customers and a length of time commensurate with regulatory requirements or industry practice outside the United States. A warranty cannot be purchased by the customer separately and, as a result, product warranties are not considered to be separate performance obligations. The Company’s liability under these warranties is generally limited to a replacement of the product or refund of the purchase price of the product. Warranty costs were not material for the three months ended June 30, 2019 and 2018 . Shipping and handling costs are included in cost of sales. Disaggregation of Revenue Refer to Note 8 , “ Segment and Geographic Information” for revenue disaggregated by primary geographical market, sales channel, and major product line. Contract liabilities Contract liabilities consist of advance payments from certain customers within the OEM channel for the development of additional production capacity. The current and noncurrent portions of these liabilities are included as a component of the line items, “Accrued expenses” and “Other non-current obligations,” respectively, on the Condensed Consolidated Balance Sheets. The balance of net contract liabilities consisted of the following at June 30, 2019 and March 31, 2019 (amounts in thousands): Contract Liabilities Classification in Balance Sheet June 30, 2019 March 31, 2019 Current Accrued expenses $ 256 $ 256 Non-current Other non-current obligations — — $ 256 $ 256 In the three months ended June 30, 2019 , the Company did not recognize any revenue related to contract liabilities at March 31, 2019 . In the three months ended June 30, 2018 , the Company recognized revenue of $0.1 million related to contract liabilities at March 31, 2018 . Revenue related to contract liabilities is recorded on the Condensed Consolidated Statements of Operations in the line item, "Net sales." Contract assets The Company recognizes an asset from the costs incurred to fulfill a contract if those costs directly relate to an existing or anticipated contract or specific business opportunity, if the costs enhance resources that will be used in satisfying performance obligations in the future, and the costs are expected to be recovered through subsequent sale of product to the customer. The Company has determined that certain direct labor, materials, and allocations of overhead incurred within research and development activities meet the requirements to be capitalized. As most of the Company's contracts and customer specific business opportunities do not include a stated term, the Company amortizes these capitalized costs over the expected product life cycle, which is consistent with the estimated transfer of goods to the customer. Capitalized contract costs were $1.5 million and $1.6 million at June 30, 2019 and March 31, 2019 , respectively. Capitalized contracts costs are recorded on the Condensed Consolidated Balance Sheets in the line item, “Other assets.” Amortization expense related to the contract costs was $0.2 million and $0.2 million for the three months ended June 30, 2019 and 2018 , respectively. There was no impairment loss in relation to the costs capitalized for the three months ended June 30, 2019 and 2018. Amortization expense related to contract assets is recorded on the Condensed Consolidated Statements of Operations in the line item "Cost of sales." Fair Value Measurement The Company utilizes three levels of inputs to measure the fair value of (a) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company’s Condensed Consolidated Financial Statements on a recurring basis (at least annually) and (b) all financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The first two levels of inputs are considered observable and the last is considered unobservable. The levels of inputs are as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and March 31, 2019 are as follows (amounts in thousands): Carrying Value June 30, Fair Value June 30, Fair Value Measurement Using Carrying Value March 31, Fair Value March 31, Fair Value Measurement Using 2019 2019 Level 1 Level 2 (3) Level 3 2019 2019 Level 1 Level 2 (3) Level 3 Assets (Liabilities): Money markets (1)(2) $ 62,846 $ 62,846 $ 62,846 $ — $ — $ 60,687 $ 60,687 $ 60,687 $ — $ — Derivative assets 706 706 — 706 — 5,141 5,141 5,141 Derivative liabilities (3,145 ) (3,145 ) — (3,145 ) — — — — — — Total debt (312,096 ) (322,700 ) — (322,700 ) — (294,471 ) (303,170 ) — (303,170 ) — ___________________ (1) Included in the line item “Cash and cash equivalents” on the Condensed Consolidated Balance Sheets. (2) Certificates of Deposit of $34.1 million and $32.2 million that mature in three months or less are included within the balance as of June 30, 2019 and March 31, 2019 , respectively. (3) Derivative assets and liabilities fair value was determined by using a third-party matrix-pricing model that uses significant inputs derived from or corroborated by observable market data. Where applicable, these models discount future cash flow amounts using market-based observable inputs, including interest rate yield curves, and forward and spot prices for currencies. For total debt, the valuation approach used to calculate fair value was a discounted cash flow based on the current market rate. Deferred Income Taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The Company periodically evaluates its net deferred tax assets based on an assessment of historical performance, ability to forecast future events, and the likelihood that the Company will realize the benefits through future taxable income. Valuation allowances are recorded to reduce the net deferred tax assets to the amount that is more likely than not to be realized. For interim reporting purposes, the Company records income taxes based on the expected annual effective income tax rate, taking into consideration global forecasted tax results and the effect of discrete tax events. The Company makes certain estimates and judgments in the calculation for the provision for income taxes, in the resulting tax liabilities, and in the recoverability of deferred tax assets. All deferred tax assets are reported as noncurrent in the Condensed Consolidated Balance Sheets. Inventories Inventories are stated at the lower of cost or net realizable value. The components of inventories are as follows (amounts in thousands): June 30, 2019 March 31, 2019 Raw materials and supplies $ 104,160 $ 97,119 Work in process 83,856 71,374 Finished goods 86,766 88,175 Subtotal 274,782 256,668 Inventory reserves (18,642 ) (15,539 ) Inventories, net $ 256,140 $ 241,129 Recently Issued Accounting Pronouncements There are currently no accounting standards that have been issued that will have a significant impact on the Company’s financial position, results of operations or cash flows upon adoption. |
Acquisitions (Notes)
Acquisitions (Notes) | 3 Months Ended |
Jun. 30, 2019 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Acquisitions</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Sale of Electro-Mechanical Business and Acquisition of Remaining Interest in TOKIN</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Between February 1, 2013 and April 19, 2017, KEMET, through its wholly-owned subsidiary, KEMET Electronics Corporation (&#8220;KEC&#8221;), held a </font><font style="font-family:inherit;font-size:10pt;">34%</font><font style="font-family:inherit;font-size:10pt;"> economic interest in TOKIN Corporation (&#8220;TOKIN&#8221;) pursuant to a Stock Purchase Agreement (the &#8220;Stock Purchase Agreement&#8221;) by and among KEC, TOKIN and NEC Corporation (&#8220;NEC&#8221;), as calculated based on the number of common shares held by KEC, directly and indirectly, in proportion to the aggregate number of common and preferred shares of TOKIN outstanding as of such date. TOKIN was established in Japan in 1938 and is engaged in production and distribution of tantalum capacitors, transmitting communication devices, magnetic devices, piezoelectric devices and sensors. TOKIN has </font><font style="font-family:inherit;font-size:10pt;">six</font><font style="font-family:inherit;font-size:10pt;"> manufacturing locations throughout Asia and was previously operating as a joint venture with NEC. </font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On April 14, 2017, TOKIN closed on the sale of its electro-mechanical devices (&#8220;EMD&#8221;) business to NTJ Holdings 1 Ltd. (&#8220;NTJ&#8221;), a special purpose entity that is owned by funds managed or operated by Japan Industrial Partners, Inc. (&#8220;JIP&#8221;), pursuant to a master sale and purchase agreement (the &#8220;EMD Master Sale and Purchase Agreement&#8221;) previously entered into between TOKIN, NTJ and JIP (&#8220;Sale of EMD&#8221;). The initial selling price for EMD was </font><font style="font-family:inherit;font-size:10pt;">JPY 48.2 billion</font><font style="font-family:inherit;font-size:10pt;">, or approximately </font><font style="font-family:inherit;font-size:10pt;">$431.0 million</font><font style="font-family:inherit;font-size:10pt;">, using the March 31, 2017 exchange rate of </font><font style="font-family:inherit;font-size:10pt;">111.823</font><font style="font-family:inherit;font-size:10pt;"> Japanese Yen (&#8220;JPY&#8221;) to 1.00 U.S. Dollar (&#8220;USD&#8221;), and was subject to certain working capital adjustments. In the third quarter of fiscal year 2018, the selling price was adjusted by </font><font style="font-family:inherit;font-size:10pt;">JPY 1.1 billion</font><font style="font-family:inherit;font-size:10pt;"> or approximately </font><font style="font-family:inherit;font-size:10pt;">$10.1 million</font><font style="font-family:inherit;font-size:10pt;"> (using the December 31, 2017 exchange rate of </font><font style="font-family:inherit;font-size:10pt;">112.574</font><font style="font-family:inherit;font-size:10pt;"> Japanese Yen to 1.00 U.S. Dollar) related to working capital and other adjustments in accordance with the EMD Master Sale and Purchase Agreement. At the closing of the Sale of EMD, TOKIN used a portion of the sale proceeds to repay debt related to a shareholder loan from NEC. The TOKIN historical balance sheet was adjusted to reflect the removal of net assets sold and other items directly impacted by the Sale of EMD. Additionally, due to KEMET&#8217;s </font><font style="font-family:inherit;font-size:10pt;">34%</font><font style="font-family:inherit;font-size:10pt;"> equity interest in TOKIN held as of the closing, adjustments were made to reflect KEMET&#8217;s accounting for the Sale of EMD in accordance with the equity method of accounting.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On April 19, 2017, pursuant to a stock purchase agreement (the &#8220;TOKIN Purchase Agreement&#8221;) dated February 23, 2017 between KEC and NEC, KEC completed its acquisition, subject to final purchase price adjustments, of the remaining </font><font style="font-family:inherit;font-size:10pt;">66%</font><font style="font-family:inherit;font-size:10pt;"> economic interest in TOKIN, and as a result, TOKIN became a </font><font style="font-family:inherit;font-size:10pt;">100%</font><font style="font-family:inherit;font-size:10pt;"> owned indirect subsidiary of KEMET (the &#8220;TOKIN Acquisition&#8221;). Under the terms of the TOKIN Purchase Agreement, KEC paid NEC </font><font style="font-family:inherit;font-size:10pt;">JPY 16.2 billion</font><font style="font-family:inherit;font-size:10pt;">, or approximately </font><font style="font-family:inherit;font-size:10pt;">$148.6 million</font><font style="font-family:inherit;font-size:10pt;"> (using the April 19, 2017 exchange rate of </font><font style="font-family:inherit;font-size:10pt;">109.007</font><font style="font-family:inherit;font-size:10pt;"> Japanese Yen to 1.00 U.S. Dollar), for all of the outstanding shares of TOKIN it did not already own. The preliminary purchase price was comprised of </font><font style="font-family:inherit;font-size:10pt;">JPY 6.0 billion</font><font style="font-family:inherit;font-size:10pt;">, or approximately </font><font style="font-family:inherit;font-size:10pt;">$55.0 million</font><font style="font-family:inherit;font-size:10pt;"> (using the April 19, 2017 exchange rate of </font><font style="font-family:inherit;font-size:10pt;">109.007</font><font style="font-family:inherit;font-size:10pt;"> Japanese Yen to 1.00 U.S. Dollar) plus </font><font style="font-family:inherit;font-size:10pt;">JPY 10.2 billion</font><font style="font-family:inherit;font-size:10pt;">, or approximately </font><font style="font-family:inherit;font-size:10pt;">$93.6 million</font><font style="font-family:inherit;font-size:10pt;">, which represented one-half of the estimated excess net cash proceeds (&#8220;Excess Cash&#8221;) from the Sale of EMD. The acquisition price was subject to working capital adjustments pursuant to the EMD Master Sale and Purchase Agreement. As a result of these working capital adjustments, the acquisition price was increased by </font><font style="font-family:inherit;font-size:10pt;">JPY 0.3 billion</font><font style="font-family:inherit;font-size:10pt;">, or approximately </font><font style="font-family:inherit;font-size:10pt;">$3.0 million</font><font style="font-family:inherit;font-size:10pt;"> (using the September 30, 2017 exchange rate of </font><font style="font-family:inherit;font-size:10pt;">112.502</font><font style="font-family:inherit;font-size:10pt;"> Japanese Yen to 1.00 U.S. Dollar) in the second quarter of fiscal year 2018. </font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company believes the acquisition of TOKIN expands KEMET&#8217;s geographic presence, combining KEMET&#8217;s presence in the western hemisphere and TOKIN&#8217;s excellent position in Asia to enhance customer reach and creates an entrance into Japan for KEMET. The Company believes TOKIN&#8217;s product portfolio is a strong complement to KEMET&#8217;s existing product portfolio. KEMET believes the combination creates a leader in the combined polymer and tantalum capacitors market. The acquisition also enhances KEMET&#8217;s product diversification with entry into Electro-Magnetic Compatible ("EMC") devices, as well as sensors and actuators. With the increased scale, the Company anticipates optimizing costs through competitive raw materials sourcing and maximizing operating efficiencies. Consistent with expectations, the acquisition has been accretive to earnings with improvement in Net income, Adjusted EBITDA and cash flows. TOKIN&#8217;s tantalum capacitor business is included within KEMET&#8217;s Solid Capacitor segment (&#8220;Solid Capacitors&#8221;) and the remainder of TOKIN&#8217;s business formed a new reportable segment for KEMET in fiscal year 2018, Electro-Magnetic, Sensors, and Actuators (&#8220;MSA&#8221;).</font></div></div> |
Debt
Debt | 3 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of debt is as follows (amounts in thousands): June 30, March 31, TOKIN Term Loan Facility (1) 284,623 276,808 Customer Advances (2) 20,906 11,270 Other (3) 6,567 6,393 Total debt 312,096 294,471 Current maturities (29,225 ) (28,430 ) Total long-term debt $ 282,871 $ 266,041 _________________ (1) Amount shown is net of discount, bank issuance costs, and other indirect issuance costs of $8.9 million and $8.7 million at June 30, 2019 and March 31, 2019 , respectively. (2) Amount shown is net of discount of $5.0 million and $2.1 million at June 30, 2019 , and March 31, 2019 , respectively. (3) Amounts are shown net of discounts of $0.6 million at June 30, 2019 and March 31, 2019 , respectively. The line item “Interest expense” on the Condensed Consolidated Statements of Operations for the three months ended June 30, 2019 and 2018 , consists of the following (amounts in thousands): Three Months Ended June 30, 2019 2018 Contractual interest expense $ 1,740 $ 6,845 Capitalized interest (105 ) (64 ) Amortization of debt issuance costs 127 116 Amortization of debt (premium) discount 767 98 Imputed interest on acquisition-related obligations — 15 Interest expense on finance leases 16 26 Total interest expense $ 2,545 $ 7,036 TOKIN Term Loan Facility On October 29, 2018, the Company entered into a JPY 33.0 billion Term Loan Agreement (the “TOKIN Term Loan Facility”) by and among TOKIN Corporation (“TOKIN”), the lenders party thereto (the “Lenders”) and Sumitomo Mitsui Trust Bank, Limited in its capacity as agent (the “Agent”), arranger and Lender. Funding for the TOKIN Term Loan Facility occurred on November 7, 2018. The proceeds, which were net of an arrangement fee withheld from the funding amount, were JPY 32.1 billion , or approximately $283.9 million using the exchange rate as of November 7, 2018. Net of the arrangement fee, bank issuance costs, and other indirect issuance costs, the Company's net proceeds from the TOKIN Term Loan Facility was $281.8 million . The proceeds from the TOKIN Term Loan Facility were used by TOKIN to make intercompany loans (the “Intercompany Loans”) to the Company. The proceeds of the Intercompany Loans, along with other cash on hand, were used by the Company to prepay in full the outstanding amounts under the Company's previous term loan of $323.4 million and a prepayment premium of 1.0% , or $3.2 million . The TOKIN Term Loan Facility consists of (i) a JPY 16.5 billion (approximately $146.0 million using the exchange rate as of November 7, 2018) Term Loan A tranche (the “Term Loan A”) and (ii) a JPY 16.5 billion (approximately $146.0 million using the exchange rate as of November 7, 2018) Term Loan B tranche (the “Term Loan B” and, together with the Term Loan A, collectively, the “Term Loans”). Principal payments under Term Loan A are required semi-annually, in the amount of JPY 1.4 billion (approximately $12.8 million using the exchange rate as of June 30, 2019 ), while the principal of Term Loan B is due in one payment at maturity. At each reporting period, the carrying value of the loan is translated from Japanese Yen to U.S. Dollars using the spot exchange rate as of the end of the reporting period. Interest payments are due semi-annually on the Term Loans, with the interest rate based on a margin over the six-month Japanese TIBOR. The applicable margin for Term Loan A is 2.00% and for Term Loan B is 2.25% . Japanese TIBOR at June 30, 2019 was 0.13% . Interest payable related to the TOKIN Term Loan Facility included in the line item “Accrued expenses” on the Condensed Consolidated Balance Sheets was $1.7 million as of June 30, 2019 . The Term Loans mature on September 30, 2024. KEMET and certain subsidiaries of TOKIN provided guarantees of the obligations under the Term Loans, which also are secured by certain assets, properties and equity interests of TOKIN and its material subsidiaries. The Term Loans contain customary covenants applicable to both the Company and to TOKIN, including maintenance of a consolidated leverage ratio, the absence of two consecutive years of consolidated operating losses and the maintenance of certain required levels of consolidated net assets. The TOKIN Term Loan Facility agreement also contains customary events of default. The Company may prepay the Term Loans at any time, subject to certain notice requirements and reimbursement of loan breakage costs. Revolving Line of Credit In connection with the closing of the TOKIN Term Loan Facility on October 29, 2018, the Company entered into Amendment No. 10 to the Loan and Security Agreement, Waiver and Consent (the “Revolver Amendment”), by and among KEMET, KEMET Electronics Corporation (“KEC”), the other borrowers named therein, the financial institutions party thereto as lenders and Bank of America, N.A., a national banking association, as agent for the lenders. The Revolver Amendment provides the Company with, among other things, increased flexibility for certain restricted payments (including dividends), and also released certain pledges that allowed the Company to obtain the TOKIN Term Loan Facility in order to pay in full the Company's prior term loan. The revolving line of credit has a facility amount of up to $75.0 million , which is based on factors including outstanding eligible accounts receivable, inventory, and equipment collateral. There were no borrowings under the revolving line of credit during the quarter ended June 30, 2019 , and the Company’s available borrowing capacity under the Loan and Security Agreement was $62.5 million as of June 30, 2019 . Customer Advances In September, November, and February of fiscal year 2019, the Company entered into three agreements with different customers (the “Customers”) pursuant to which the Customers agreed to make advances (collectively, the “Advances”) to the Company in an aggregate amount of up to $72.0 million (collectively, the “Customer Capacity Agreements”). The Company is using these Advances to fund the purchase of production equipment and to make other investments and improvements in its business and operations (the “Investments”) to increase overall capacity to produce various electronic components of the type and part as may be sold by the Company to the Customers from time to time. The Company retains all rights to the production equipment purchased with the funds from the Advances. The Advances from the Customers are being made in quarterly installments (“Installments”) over an expected period of 18 to 24 months from the effective date of the Customer Capacity Agreements . The Advances will be repaid beginning on the date that production from the Investments is sufficient to meet the Company's obligations under the agreements with the Customers. Repayments will be made on a quarterly basis as determined by calculations that generally consider the number of components purchased by the Customers during the quarter. Repayments based on the calculations will continue until either the Advances are repaid in full, or December 31, 2038 for all three Customers. The Company has a quarterly repayment cap in the agreement with each of the Customers and is not required to make any quarterly repayments to the Customers that in the aggregate exceeds $1.8 million. If the Customers do not purchase a number of components that would require full repayment of the Advances by December 31, 2038, then the Advances shall be deemed repaid in full. Additionally, if the Customers do not purchase a number of components that would require a payment on the Advances for a period of 16 consecutive quarters, the Advances shall be deemed repaid in full . As of June 30, 2019 , the Company has received a total of $26.0 million in Advances from these Customers. Since the debt is non-interest bearing, the Company has recorded debt discounts on the Advances . T hese discounts will be amortized over the expected life of the Advances through interest expense. During the three months ended June 30, 2019 , the Company had $7.7 million in capital expenditures related to the Customer Capacity Agreements. As of June 30, 2019 , the Company had $2.6 million in cash that was restricted to be used to fund these Investments. Restricted cash is recorded within “Prepaid expenses and other current assets” in the Condensed Consolidated Balance Sheets. Other Debt In January 2017, KEMET Electronics Portugal, S.A. (“KEP”), a wholly owned subsidiary, entered into a program with the Portuguese government where KEP is eligible to receive interest free loans if purchases of fixed assets meet certain approved terms within the program. In January 2017, KEP received the first part of an interest free loan in the amount of EUR 2.2 million (or $2.5 million ). In July 2017, KEP received the second part of the loan in the amount of EUR 0.3 million (or $0.3 million ). The loan has a maturity date of February 1, 2025. The loan will be repaid through semi-annual payments on August 1 and February 1 of each year beginning on August 1, 2019. The repayments will be in the amount of EUR 0.2 million (or $0.2 million ). In February 2019, KEP received a second interest free loan from the Portuguese government in the amount of EUR 0.9 million , (or $1.1 million ). The loan has a maturity date of September 1, 2026 and will be repaid through semi-annual payments on March 1 and September 1 of each year beginning on March 1, 2021. The repayments will be in the amount of EUR 0.1 million (or $0.1 million ). Since the KEP debt is non-interest bearing, the Company has recorded debt discounts on these loans. These discounts are being amortized over the life of the loans through interest expense. If certain conditions are met by KEP, such as increased headcount at its facility in Evora, Portugal, increased revenue, and increased gross value added, a portion of these loans could be forgiven. TOKIN has a short term borrowing pursuant to an agreement with The 77 Bank Limited, located in Japan, in the amount of 350.0 million Yen (or $3.2 million ), at an interest rate of 0.53% (Japanese TIBOR plus 40 basis points). The loan was originally due in September 2018 and was extended to September 2019. The loan agreement automatically renews for successive one year periods if both parties choose not to terminate or modify it. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Notes) | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets The following table highlights the Company’s intangible assets (amounts in thousands): June 30, 2019 March 31, 2019 Carrying Amount Accumulated Amortization Net Amount Carrying Amount Accumulated Amortization Net Amount Indefinite Lived Intangible Assets: Trademarks $ 15,375 $ — $ 15,375 $ 15,151 $ — $ 15,151 Amortizing Intangibles: Patents (10 - 18 years) 26,662 (12,401 ) 14,261 26,662 (12,046 ) 14,616 Customer relationships (10 - 21 years) 38,714 (14,902 ) 23,812 37,850 (13,868 ) 23,982 Other 215 (215 ) — 214 (214 ) — Total amortizing intangibles 65,591 (27,518 ) 38,073 64,726 (26,128 ) 38,598 Total intangible assets $ 80,966 $ (27,518 ) $ 53,448 $ 79,877 $ (26,128 ) $ 53,749 For each of the three months ended June 30, 2019 and 2018 , amortization related to intangibles was $1.1 million , consisting of amortization related to patents of $0.3 million and amortization related to customer relationships of $0.8 million . The weighted-average useful life for patents was 15.8 years as of June 30, 2019 and March 31, 2019 , respectively, and 12.3 years for customer relationships as of June 30, 2019 and March 31, 2019 , respectively. Estimated amortization of intangible assets for each of the next five fiscal years is $4.5 million , and thereafter, amortization will total $15.7 million . Estimated amortization of patents for each of the next five fiscal years is $1.4 million , and thereafter, amortization will total $7.2 million . Estimated amortization of customer relationships for each of the next five fiscal years is $3.1 million , and thereafter, amortization will total $8.5 million . There were no changes to the carrying amount of goodwill during the three months ended June 30, 2019 . The Company’s goodwill balance was $40.3 million at June 30, 2019 and March 31, 2019 |
(Gain) Loss on Write Down and D
(Gain) Loss on Write Down and Disposal of Long-Lived Assets - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||
(Gain) loss on write down and disposal of long-lived assets | $ 960 | $ 511 |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges The Company has implemented restructuring plans, which include programs to increase competitiveness by removing excess capacity, relocating production to lower cost locations, and eliminating unnecessary costs throughout the Company. Significant restructuring plans in progress or recently completed as of June 30, 2019 are summarized below (amounts in thousands): Total expected to be incurred Incurred during quarter ended June 30, 2019 Cumulative incurred to date Restructuring Plan Segment Personnel Reduction Costs Relocation & Exit Costs Personnel Reduction Costs Relocation & Exit Costs Personnel Reduction Costs Relocation & Exit Costs Tantalum powder facility relocation (1) Solid Capacitors 897 2,098 448 (552 ) 448 2,805 Axial electrolytic production relocation from Granna to Evora Film and Electrolytic 673 3,964 673 1,308 673 3,603 Reorganization of MnO2 product line Solid Capacitors 3,128 — 43 — 1,628 — __________________ (1) The current quarter credit for manufacturing relocation and exit costs is due to the recovery of costs related to the sale of tantalum that has been reclaimed (“tantalum reclaim”) as part of the plant exit activities. Tantalum reclaim in future periods is expected to further reduce the cumulative incurred costs. A summary of the expenses aggregated in the Condensed Consolidated Statements of Operations line item “Restructuring charges” in the three months ended June 30, 2019 and 2018 , is as follows (amounts in thousands): Three Months Ended June 30, 2019 2018 Personnel reduction costs $ 1,229 $ (84 ) Relocation and exit costs 979 (12 ) Restructuring charges $ 2,208 $ (96 ) Three Months Ended June 30, 2019 The Company incurred $2.2 million in restructuring charges in the three months ended June 30, 2019 comprised of $1.2 million in personnel reduction costs and $1.0 million in manufacturing relocation and exit costs. The personnel reduction costs of $1.2 million were primarily due to $0.7 million in costs in the Film and Electrolytic segment related to severance charges resulting from the closing of the Granna, Sweden manufacturing plant as axial electrolytic production is being moved to the plant in Evora, Portugal and $0.5 million in costs in the Solid Capacitors segment related to severance charges resulting from the closing of the tantalum powder facility in Carson City, Nevada as tantalum powder production is moving to the plant in Matamoros, Mexico. The manufacturing relocation and exit costs of $1.0 million primarily related to $1.3 million in costs resulting from the relocation of axial electrolytic production equipment from the Company's plant in Granna, Sweden to its plant in Evora, Portugal. Manufacturing relocation and exit costs were benefited by a $0.6 million credit from tantalum reclaim. Reconciliation of Restructuring Liability A reconciliation of the beginning and ending liability balances for restructuring charges included in the line items “Accrued expenses” and “Other non-current obligations” on the Condensed Consolidated Balance Sheets for the three months ended June 30, 2019 and 2018 is as follows (amounts in thousands): Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Personnel Manufacturing Personnel Manufacturing Beginning of period $ 1,865 $ 316 $ 9,629 $ 330 Costs charged to expense 1,229 979 (84 ) (12 ) Costs paid or settled (1,315 ) (979 ) (5,131 ) 12 Change in foreign exchange 10 9 (244 ) (13 ) End of period $ 1,789 $ 325 $ 4,170 $ 317 |
Comprehensive Income (Loss) and
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income | 3 Months Ended |
Jun. 30, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income | Comprehensive Income (Loss) and Accumulated Other Comprehensive Income Changes in AOCI for the three months ended June 30, 2019 and 2018 include the following components (amounts in thousands): Foreign Currency Translation, net of Tax (1) Post-Retirement Defined Benefit Pension Plans, net of Tax (2) Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss), net of Tax Cash Flow Hedges, net of Tax Excluded Component of Fair Value Hedges, net of Tax Net Accumulated Other Comprehensive Income (Loss), net of Tax Balance at March 31, 2019 $ (14,350 ) $ 793 $ (15,758 ) $ 274 $ 566 $ (2,249 ) $ (30,724 ) Other comprehensive income (loss) before reclassifications (3) (4) 5,834 — — — (1,704 ) (346 ) 3,784 Amounts reclassified out of AOCI (2,655 ) (37 ) 164 — (4,294 ) 1,638 (5,184 ) Other comprehensive income (loss) 3,179 (37 ) 164 — (5,998 ) 1,292 (1,400 ) Balance at June 30, 2019 $ (11,171 ) $ 756 $ (15,594 ) $ 274 $ (5,432 ) $ (957 ) $ (32,124 ) Foreign Currency Translation, net of Tax (1) Post-Retirement Defined Benefit Pension Plans, net of Tax (2) Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss), net of Tax Cash Flow Hedges, net of Tax Excluded Component of Fair Value Hedges, net of Tax Net Accumulated Other Comprehensive Income (Loss), net of Tax Balance at March 31, 2018 $ 9,715 $ 879 $ (14,831 ) $ 285 $ 1,154 $ — $ (2,798 ) Other comprehensive income (loss) before reclassifications (24,203 ) — — (11 ) (3,795 ) — (28,009 ) Amounts reclassified out of AOCI — (39 ) 39 — (643 ) — (643 ) Other comprehensive income (loss) (24,203 ) (39 ) 39 (11 ) (4,438 ) — (28,652 ) Balance at June 30, 2018 $ (14,488 ) $ 840 $ (14,792 ) $ 274 $ (3,284 ) $ — $ (31,450 ) _________________ (1) Due primarily to the Company’s valuation allowance on deferred tax assets, there were no significant deferred tax effects associated with the cumulative currency translation gains and losses during the three months ended June 30, 2019 and 2018 . (2) Ending balance is net of tax of $2.4 million and $2.3 million as of June 30, 2019 and 2018 , respectively. (3) Foreign currency translation, net of tax for the three months ended June 30, 2019 includes losses of $2.0 million related to a derivative instrument accounted for as a net investment hedge. Refer to Note 13 , Derivatives, for further information. (4) Cash flow hedges, net of tax for the three months ended June 30, 2019 includes losses of $6.9 million |
Changes in Shareholders' Equity
Changes in Shareholders' Equity (Notes) | 3 Months Ended |
Jun. 30, 2019 | |
Changes in Shareholders' Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Changes in Stockholders' Equity Changes in Stockholders' Equity for the three months ended June 30, 2019 and 2018 include the following components (amounts in thousands): Shares Common Additional Retained Earnings Accumulated Total Balance at March 31, 2019 57,822 $ 578 $ 465,366 $ 204,195 $ (30,724 ) $ 639,415 Net income (loss) — — — 40,340 — 40,340 Other comprehensive income (loss) — — — — (1,400 ) (1,400 ) Cash dividends ($0.05 per share) — — — (2,900 ) — (2,900 ) Issuance of shares 196 2 (1,387 ) — — (1,385 ) Stock-based compensation — — 2,725 — — 2,725 Balance at June 30, 2019 58,018 $ 580 $ 466,704 $ 241,635 $ (32,124 ) $ 676,795 Shares Common Additional Retained Earnings Accumulated Total Balance at March 31, 2018 56,641 $ 566 $ 462,737 $ 3,370 $ (2,798 ) $ 463,875 Net income (loss) — — — 35,220 — 35,220 Other comprehensive income (loss) — — — — (28,652 ) (28,652 ) Issuance of shares 706 7 (5,536 ) — — (5,529 ) Stock-based compensation — — 4,060 — — 4,060 Balance at June 30, 2018 57,347 $ 573 $ 461,261 $ 38,590 $ (31,450 ) $ 468,974 |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in NEC TOKIN | The following table provides a reconciliation of equity method investments to the Company's Condensed Consolidated Balance Sheets (amounts in thousands): June 30, 2019 March 31, 2019 Nippon Yttrium Co., Ltd ("NYC") $ 7,884 $ 8,215 NT Sales Co., Ltd ("NTS") 1,258 1,218 Novasentis Inc. (“Novasentis”) 671 977 KEMET Jianghai Electronics Components Co., Ltd (“KEMET Jianghai”) 4,425 2,515 $ 14,238 $ 12,925 Under the equity method, the Company's share of profits and losses and impairment charges on investments in affiliates are included in “Equity income (loss) from equity method investments” in the Consolidated Statements of Operations. TOKIN's Joint Ventures - NYC and NTS NYC was established in 1966 by TOKIN (previously Tohoku Metal Industries Co., Ltd.) and Mitsui Mining and Smelting Co., Ltd (“Mitsui”). NYC was established to commercialize yttrium oxides and the Company owns 30% of NYC's stock. The carrying amount of the Company's equity investment in NYC was $7.9 million and $8.2 million as of June 30, 2019 and March 31, 2019 , respectively. NTS was established in 2004 by TOKIN, however subsequent to its formation, TOKIN sold 67% of its stock. NTS provides world-class electronic devices by utilizing global procurement networks and the Company owns 33% of NTS' stock. During the quarter ended June 30, 2019 , a significant portion of NTS' sales were TOKIN’s products. The carrying amount of the Company's equity investment in NTS was $1.3 million and $1.2 million as of June 30, 2019 and March 31, 2019 , respectively. Summarized transactions between KEMET and NTS were as follows (amounts in thousands): Three Months Ended June 30, 2019 2018 KEMET's sales to NTS $ 11,537 $ 12,208 NTS' sales to KEMET 307 388 Investment in Novasentis During fiscal year 2018, KEMET invested in the Series-D round of funding of Novasentis, a leading developer of film-based haptic actuators. Novasentis produces the world’s thinnest electro mechanical polymer-based actuators that provide rich haptic feedback for a variety of applications, including AR/VR and Wearables. Novasentis supplies its “smart” film and KEMET applies its expertise in manufacturing film capacitors to the development and commercial production of the actuators. The Company's ownership percentage in Novasentis is 27.9% and it has 1 of 3 seats on Novasentis’ board of directors. Additionally, KEMET has an exclusive manufacturing supply agreement with Novasentis, whereby Novasentis will purchase goods exclusively from KEMET and KEMET shall manufacture and sell goods exclusively to Novasentis. While the Company determined that Novasentis is a variable interest entity, the Company concluded that it is not the primary beneficiary of Novasentis. Accordingly, the Company accounts for its investment in Novasentis under the equity method of accounting. The carrying amount of the Company's equity investment in Novasentis was $0.7 million and $1.0 million as of June 30, 2019 and March 31, 2019 , respectively. Subsequent to June 30, 2019 , the Company purchased the remaining ownership interests in Novasentis and it became a wholly owned subsidiary of the Company. KEMET Jianghai Joint Venture On January 29, 2018, KEC entered into a joint venture agreement (the “Agreement”) with Jianghai (Nantong) Film Capacitor Co., Ltd (“Jianghai Film”), a subsidiary of Nantong Jianghai Capacitor Co., Ltd (“Jianghai”) for the formation of KEMET Jianghai Electronic Components Co. Ltd., a limited liability company located in Nantong, China. KEMET Jianghai was officially formed on May 16, 2018 to manufacture axial electrolytic capacitors and (H)EV Film DC brick capacitors, for distribution through the KEMET and Jianghai Film sales channels. During fiscal year 2019 the Company signed an amendment to the Agreement with Jianghai Film to expand the scope of KEMET Jianghai to also produce solid aluminum capacitors and aluminum electrolytic capacitors. The Company's ownership percentage is 50.0% and the Company and Jianghai Film are equally represented on the joint venture’s board of directors. The Company's initial capital contribution to KEMET Jianghai was made during the second quarter of fiscal year 2019, and the Company accounts for its investment using the equity method due to the related nature of operations and its ability to influence the joint venture's decisions. As of June 30, 2019 , the carrying amount of the Company's equity investment in KEMET Jianghai was $4.4 million . |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information The Company is organized into three reportable segments: Solid Capacitors, Film and Electrolytic, and Electro-magnetic, Sensors & Actuators (“MSA”) based primarily on product lines. The reportable segments are responsible for their respective manufacturing sites as well as their research and development (“R&D”) efforts. The Company does not allocate corporate indirect selling, general and administrative (“SG&A”) or shared R&D expenses to the segments. Solid Capacitors Solid Capacitors operates in ten manufacturing sites in the United States, Mexico and Asia, and operates innovation centers in the United States and Japan. Solid Capacitors primarily produces tantalum (polymer, aluminum, and Mn02) and ceramic capacitors, which are sold globally. Solid Capacitors also produces tantalum powder used in the production of tantalum capacitors. Film and Electrolytic Film and Electrolytic operates in eight manufacturing sites throughout Europe and Asia, and maintain product innovation centers in Italy, Portugal, and Sweden. Film and Electrolytic primarily produces film, paper, and wet aluminum electrolytic capacitors, which are sold globally. In addition, the Film and Electrolytic reportable segment designs and produces electromagnetic interference filters. MSA MSA operates in four sites throughout Asia and operates a product innovation center in Japan. MSA primarily produces Electro-magnetic compatible (“EMC”) materials and devices, piezo materials and actuators, and various types of sensors, which are sold globally. In the following tables, revenue is disaggregated by primary geographical market, sales channel, and major product lines. The tables also include reconciliations of the disaggregated revenue with the reportable segments for the three months ended June 30, 2019 and 2018 (amounts in thousands): Three Months Ended June 30, 2019 Solid Capacitors Film and Electrolytic MSA Total Primary geographical markets Asia and the Pacific Rim ("APAC") $ 103,299 $ 10,943 $ 13,522 $ 127,764 Europe, the Middle East, and Africa ("EMEA") 53,084 27,793 829 81,706 North and South America ("Americas") 82,829 7,794 2,727 93,350 Japan and Korea ("JPKO") 8,995 179 33,248 42,422 $ 248,207 $ 46,709 $ 50,326 $ 345,242 Sales channel OEM $ 77,704 $ 18,527 $ 46,972 $ 143,203 Distributor 123,229 22,326 2,564 148,119 EMS 47,274 5,856 790 53,920 $ 248,207 $ 46,709 $ 50,326 $ 345,242 Major product lines Tantalum $ 132,386 $ — $ — $ 132,386 Ceramics 115,821 — — 115,821 Film and Electrolytic — 46,709 — 46,709 MSA — — 50,326 50,326 $ 248,207 $ 46,709 $ 50,326 $ 345,242 Three Months Ended June 30, 2018 Solid Capacitors Film and Electrolytic MSA Total Primary geographical markets APAC $ 100,370 $ 15,589 $ 17,000 $ 132,959 EMEA 41,466 32,607 575 74,648 Americas 63,105 6,649 2,397 72,151 JPKO 8,880 110 38,868 47,858 $ 213,821 $ 54,955 $ 58,840 $ 327,616 Sales channel OEM $ 70,388 $ 22,441 $ 56,100 $ 148,929 Distributor 107,634 26,568 2,484 136,686 EMS 35,799 5,946 256 42,001 $ 213,821 $ 54,955 $ 58,840 $ 327,616 Major product lines Tantalum $ 134,313 $ — $ — $ 134,313 Ceramics 79,508 — — 79,508 Film and Electrolytic — 54,955 — 54,955 MSA — — 58,840 58,840 $ 213,821 $ 54,955 $ 58,840 $ 327,616 The following table reflects each segment’s operating income (loss), depreciation and amortization expenses, and restructuring charges for the three months ended June 30, 2019 and 2018 (amounts in thousands): Three Months Ended June 30, 2019 2018 Operating income (loss): Solid Capacitors $ 102,686 $ 69,665 Film and Electrolytic (2,879 ) 1,067 MSA 3,658 6,055 Corporate (45,065 ) (41,611 ) $ 58,400 $ 35,176 Depreciation and amortization expense: Solid Capacitors $ 7,792 $ 7,182 Film and Electrolytic 2,291 2,620 MSA 1,510 1,504 Corporate 2,666 1,791 $ 14,259 $ 13,097 Restructuring charges: Solid Capacitors 121 (18 ) Film and Electrolytic 2,048 1 MSA — — Corporate 39 (79 ) $ 2,208 $ (96 ) |
Defined Benefit Pension and Oth
Defined Benefit Pension and Other Postretirement Benefit Plans | 3 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Defined Benefit Pension and Other Postretirement Benefit Plans The Company sponsors twelve defined benefit pension plans: six in Europe, one in Singapore, two in Mexico, two in Japan, and one in Thailand. The Company funds the pension liabilities in accordance with laws and regulations applicable to those plans. In addition, the Company maintains two frozen post-retirement benefit plans in the United States: health care and life insurance benefits for certain retired United States employees who reached retirement age while working for the Company. The health care plan is contributory, with participants’ contributions adjusted annually. The life insurance plan is non-contributory. The balance sheet classifications and carrying amounts of the Company's pension and other post-retirement benefit plans at June 30, 2019 and March 31, 2019 consist of the following (amounts in thousands): Pension Other Benefits June 30, 2019 March 31, 2019 June 30, 2019 March 31, 2019 Prepaid expenses and other current assets $ 815 $ 670 $ — $ — Accrued expenses (2,806 ) (2,753 ) (50 ) (50 ) Other non-current obligations (84,617 ) (82,455 ) (291 ) (262 ) Net amount recognized, end of period $ (86,608 ) $ (84,538 ) $ (341 ) $ (312 ) The components of net periodic benefit (income) costs relating to the Company’s pension and other post-retirement benefit plans for the three months ended June 30, 2019 and 2018 are as follows (amounts in thousands): Pension Other Benefits Three Months Ended June 30, Three Months Ended June 30, 2019 2018 2019 2018 Net service cost $ 1,250 $ 1,233 $ — $ — Interest cost 462 478 2 3 Expected return on net assets (470 ) (531 ) — — Amortization: Actuarial (gain) loss 113 107 (37 ) (39 ) Prior service cost 21 23 — — Total net periodic benefit cost (credit) $ 1,376 $ 1,310 $ (35 ) $ (36 ) All of the amounts in the tables above, other than service cost, were recorded in the line item "Other (income) expense, net" in our Condensed Consolidated Statements of Operations. In fiscal year 2020 , the Company expects to contribute up to $5.1 million to the pension plans, $0.9 million of which has been contributed as of June 30, 2019 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-Based Compensation As of June 30, 2019 , the KEMET Corporation Omnibus Incentive Plan (the “Incentive Plan”) is the only plan utilized by the Company to issue equity-based awards to executives and key employees. The Incentive Plan has authorized, in the aggregate, the grant of up to 12.2 million shares of the Company’s Common Stock, comprised of 11.4 million shares under the Incentive Plan and 0.8 million shares remaining from prior plans and authorizes the Company to provide equity-based compensation in the form of: • stock options, including incentive stock options, entitling the optionee to favorable tax treatment under Section 422 of the Code; • stock appreciation rights; • restricted stock and restricted stock units (“RSUs”); • other share-based awards; and • performance awards. Except as described below, options issued under these plans vest within one to three years and expire ten years from the grant date. Restricted Stock Units (“RSUs”) and Long-term Incentive Plans (“LTIP”) Time-based RSUs vest over three years , except for RSUs granted to members of the Board of Directors (the “Board”), which vest immediately. The Company grants RSUs to members of the Board, the Chief Executive Officer and key members of management. Once vested and settled, RSUs are converted into stock. For members of the Board and key members of management, such stock cannot be sold until 90 days after termination of service with the Company, or until the individual achieves the targeted ownership under the Company’s stock ownership guidelines, and only to the extent that such ownership level exceeds the target. Compensation expense is recognized over the respective vesting periods. Historically, the Board of the Company has approved annual LTIPs, which cover two -year periods and are primarily based upon the achievement of an adjusted EBITDA range for the two-year period. At the time of the award, the individual plans entitle the participants to receive cash or RSUs, or a combination of both as determined by the Company's Board. The Company assesses the likelihood of meeting the Adjusted EBITDA financial metric on a quarterly basis and adjusts compensation expense to match expectations. The 2017/2018 LTIP, 2018/2019 LTIP, 2019/2020 LTIP and 2020/2021 LTIP also awarded time-based RSUs which vest over the course of three years from the anniversary of the grant date and are not subject to a performance metric. Any related liability (for the cash portion of the LTIP) is reflected in the line item “Accrued expenses” on the Condensed Consolidated Balance Sheets and any RSU commitment is reflected in the line item “Additional paid-in capital” on the Condensed Consolidated Balance Sheets. On May 18, 2019, the Company granted RSUs under the 2020/2021 LTIP with a grant date fair value of $17.43 that vest as follows (amounts in thousands): Shares May 18, 2020 66 May 18, 2021 141 May 18, 2022 144 Total RSUs granted (1) 351 __________________ (1) RSUs granted include a performance component. Therefore, the granted RSUs shown above are an estimate based upon current performance expectations. The final number of RSUs granted depends on the achievement of performance metrics. The following is the vesting schedule of RSUs under each respective LTIP, which vested during the three months ended June 30, 2019 (shares in thousands): 2019/2020 2018/2019 2017/2018 Time-based award vested 53 58 156 Performance-based award vested — — — RSU activity, including performance-based and time-based LTIP activity, for the three months ended June 30, 2019 is as follows (amounts in thousands except fair value): Shares Weighted- Non-vested RSUs at March 31, 2019 1,415 $ 15.19 Granted 351 17.43 Vested (267 ) 7.92 Forfeited (8 ) 15.32 Non-vested RSUs at June 30, 2019 1,491 $ 17.02 The compensation expense associated with stock-based compensation for the three months ended June 30, 2019 and 2018 is recorded on the Condensed Consolidated Statements of Operations as follows (amounts in thousands): Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Stock Options RSUs LTIPs Stock Options RSUs LTIPs Cost of sales $ — $ 490 $ 384 $ — $ 351 $ 238 Selling, general and administrative expenses — 1,005 730 — 2,881 521 Research and development — 34 82 — 16 53 Total $ — $ 1,529 $ 1,196 $ — $ 3,248 $ 812 In the “Operating activities” section of the Condensed Consolidated Statements of Cash Flows, stock-based compensation expense was treated as an adjustment to net income for the three months ended June 30, 2019 , and 2018 . There were 16,667 stock options exercised in the three months ended June 30, 2019 and 44,100 stock options were exercised in the three months ended June 30, 2018 . |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three months ended June 30, 2019 , the Company recognized $16.8 million of income tax expense, comprised of $5.7 million of income tax expense related to foreign operations, $11.0 million of federal income tax expense, and $0.1 million of state income tax expense. During the three months ended June 30, 2018 , the Company recognized $4.6 million of income tax expense, comprised of $4.7 million of income tax expense related to foreign operations, $0.2 million of federal income tax expense, and $0.3 million of state income tax benefit. The $4.7 million of income tax expense related to foreign operations included a $0.9 million benefit related to the settlement of an uncertain tax position. The effective tax rates differ from income taxes recorded using a statutory rate largely due to the relative mix in earnings and losses in various tax jurisdictions, the usage of the net operating losses, and reversal of associated valuation allowances previously recorded on the deferred tax assets. |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) Per Common Share | 3 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) Per Common Share | Basic and Diluted Net Income Per Common Share Basic earnings per share calculation is based on the weighted-average number of common shares outstanding. Diluted earnings per share calculation is based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of common stock include stock options and RSUs. The following table presents basic earnings per share (“EPS”) and diluted EPS (amounts in thousands, except per share data): Three Months Ended June 30, 2019 2018 Numerator: Net income $ 40,340 $ 35,220 Denominator: Weighted-average shares outstanding: Basic 58,350 57,339 Assumed conversion of employee stock grants 705 1,699 Diluted 59,055 59,038 Net income per basic share $ 0.69 $ 0.61 Net income per diluted share $ 0.68 $ 0.60 There were no common stock equivalents that could potentially dilute net income per basic share in the future, but were not included in the computation of diluted earnings per share because the impact would have been anti-dilutive. |
Derivatives
Derivatives | 3 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Certain of the Company’s foreign operations expose the Company to fluctuations in currency exchange rates. These fluctuations may impact the value of the Company’s cash payments, assets, and liabilities in terms of the Company’s functional currency. The Company enters into derivative financial instruments to protect the value of certain obligations and its net investment in its TOKIN subsidiary in terms of its functional currency, the U.S. dollar. The Company’s primary exposure to foreign currency exchange rate risk relates to (i) intercompany financings with TOKIN, (ii) its net investment in TOKIN, and (iii) certain operating expenses at the Company’s Mexican facilities. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure as well as to hedge specific anticipated transactions. The Company does not utilize derivatives for speculative or other purposes other than currency risk management. The use of derivative financial instruments carries certain risks, including the risk that any counterparty to a contractual arrangement may not be able to perform under the agreement. To mitigate this risk, historically the Company has only entered into derivative financial instruments with a counterparty that is a major financial institution with a high credit rating. The Company does not anticipate that the counterparty will fail to meet its obligations. Each derivative instrument that qualifies for hedge accounting is expected to be highly effective at reducing the risk associated with the exposure being hedged, and the Company monitors each instrument for effectiveness on a quarterly basis. The Company formally documents all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various hedge transactions. Changes in fair value of all its derivative instruments are reported in earnings or in AOCI, depending on whether the derivative is designated as part of a hedge transaction, and if so, the type of hedge transaction. The Company records all derivative financial instruments on its Condensed Consolidated Balance Sheets at fair value. Certain of the derivative instruments are subject to master netting agreements and are presented in the Condensed Consolidated Balance Sheets on a net basis. If the Company were to account for the asset and liability balances of those derivative contracts on a gross basis, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current net presentation to the gross amounts as detailed in the table below. The balance sheet classifications and fair value of derivative instruments designated as hedges as of June 30, 2019 and March 31, 2019 are as follows (amounts in thousands): Fair Value of Derivative Instruments June 30, 2019 March 31, 2019 Balance Sheet Location As Presented Offset Gross As Presented Offset Gross Derivative Assets Cross-currency swaps Other assets $ — $ — $ — $ 4,577 $ — $ 4,577 Foreign exchange contracts Prepaid and other current assets 706 633 1,339 564 645 1,209 Derivative Liabilities Cross-currency swaps Other non-current obligations $ 3,145 $ — $ 3,145 $ — $ — $ — Foreign exchange contracts Accrued expenses — 633 633 — 645 645 Fair Value Hedging Strategy The Company entered into two cross-currency swaps designated as fair value hedges on November 7, 2018 to hedge the foreign currency risk on the Intercompany Loans. These agreements were contracts to exchange floating-rate payments in one currency with floating-rate payments in another currency. Changes in the fair value of these cross-currency swaps due to changes in foreign currency exchange rates were recognized in earnings upon the recognition of the change in the fair value of the hedged intercompany financings. The notional value of these contracts was JPY 31.6 billion or $279.7 million at March 31, 2019 . The Company terminated these contracts with the counterparty on May 28, 2019, and received proceeds of $6.5 million for the combined fair value of these contracts at the time of termination. Hedges of Net Investments in Foreign Operations Strategy The Company entered into a cross-currency swap designated as a net investment hedge on November 7, 2018 to hedge the JPY currency exposure of the Company’s net investment in TOKIN. This agreement is a contract to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. Changes in the fair value of this swap are recorded in equity as a component of AOCI in the same manner as foreign currency translation adjustments. In assessing the effectiveness of this hedge, the Company uses a method based on changes in spot rates to measure the impact of the foreign currency exchange rate fluctuations on both its foreign subsidiary net investment and the related swap. Under this method, changes in the fair value of the hedging instrument other than those due to changes in the spot rate are initially recorded in AOCI as a translation adjustment, and then are amortized into other (income) expense, net in the Condensed Consolidated Statement of Operations using a systematic and rational method over the instrument’s term. Changes in the fair value associated with the effective portion (i.e. those changes due to the spot rate) are recorded in AOCI as a translation adjustment and are released and recognized in earnings only upon the sale or liquidation of the hedged net investment. The terms of this cross-currency swap are as follows: • An amortizing cross-currency swap with an initial notional value of JPY 33.0 billion . The notional amount is amortized by approximately JPY 1.4 billion every six months and matures on September 30, 2024. Interest payments are made by the Company in JPY on March 31 and September 30 of each year based on the JPY notional value and a fixed rate of 2.61% . The Company receives interest in USD on March 31 and September 30 of each year based on the USD equivalent of the JPY notional value and a fixed rate of 6.25% . The notional value of this contract was JPY 31.6 billion or $279.7 million at June 30, 2019 and March 31, 2019 , respectively. Cash Flow Hedging Strategy Foreign Exchange Contracts Certain operating expenses at the Company’s Mexican facilities are paid in Mexican Pesos. In order to hedge a portion of these forecasted cash flows, the Company purchases foreign exchange contracts, with terms generally less than fifteen months, to buy Mexican Pesos for periods and amounts consistent with underlying cash flow exposures. These contracts are designated as cash flow hedges at inception. Unrealized gains and losses associated with the change in fair value of the foreign exchange contracts are recorded in AOCI. Changes in the derivatives’ fair values are deferred and recorded as a component of AOCI until the underlying transaction is settled and recorded to the Condensed Consolidated Statement of Operations. When the hedged item affects income, gains or losses are reclassified from AOCI to the Condensed Consolidated Statement of Operations as Cost of Sales for foreign exchange contracts to purchase such foreign currency. The notional value of outstanding Peso contracts was $100.7 million and $74.3 million as of June 30, 2019 and March 31, 2019 , respectively. Cross-Currency Swaps On May 28, 2019, the Company entered into two cross-currency swaps designated as cash flow hedges to hedge the foreign currency risk on the principal payments on the Intercompany Loans. These agreements are contracts to exchange floating-rate payments in one currency with fixed-rate payments in another currency. The Company uses these cross-currency swaps to hedge the changes in cash flows on the Intercompany Loans due to changes in foreign currency exchange rates. For this hedging program, the Company records the remeasurement of the Intercompany Loans due to changes in foreign currency exchange rates each period. Changes in the fair value of these cross-currency swaps are initially recorded in AOCI each period with an immediate reclassification into earnings for the change in fair value attributable to the fluctuations in foreign currency exchanges. The Company excludes the change in the fair value of these cross-currency swaps due to changes in interest rates from the assessment of hedge effectiveness. Changes in fair value of the swaps associated with changes in interest rates are initially recorded as a component of AOCI and recognized into other (income) expense, net in the Consolidated Statement of Operations using a systematic and rational method over the instrument’s term. The terms of the two cross-currency swaps designated as cash flow hedges are as follows: • An amortizing cross-currency swap with an initial notional value of JPY 15.1 billion . The notional value is amortized by approximately JPY 1.4 billion every six months and matures on September 30, 2024. The Company receives interest in JPY on March 31 and September 30 of each year based on the JPY notional value and JPY Libor plus 2.00% . Interest payments are made in USD on March 31 and September 30 of each year based on the USD equivalent of the JPY notional value and a fixed rate of 4.88% . • A non-amortizing cross-currency swap with a notional value of JPY 16.5 billion maturing on September 30, 2024. The Company receives interest in JPY on March 31 and September 30 of each year based on the JPY notional value and JPY Libor plus 2.25% . Interest payments are made in USD on March 31 and September 30 of each year based on the USD equivalent of the JPY notional value and a fixed rate of 5.26% . The notional value of these contracts were JPY 31.6 billion , or $288.9 million as of June 30, 2019 . Hedging Strategy Impact on Statements of Operations The following tables present gain and loss activity for the three months ended June 30, 2019 and 2018 for derivative instruments designated as hedges (amounts in thousands): Three Months Ended June 30, 2019 Gain (Loss) Derivative Instrument Hedge Designation Location of Gain (Loss) Recognized in Statements of Operations Recognized in AOCI Reclassified from AOCI to Income Recorded Directly to Income Cross-currency swaps (1) Fair Value Other income/expense, net $ (346 ) $ (1,622 ) $ 3,337 Cross-currency swaps (2) Net Investment Other income/expense, net (2,006 ) 2,655 — Cross-currency swaps (3) Cash Flow Other income/expense, net (2,231 ) 3,909 — Foreign exchange contracts (4) Cash Flow Cost of sales 527 385 — Three-Months Ended June 30, 2018 Gain (Loss) Derivative Instrument Hedge Designation Location of Gain (Loss) Recognized in Statements of Operations Recognized in AOCI Reclassified from AOCI to Income Recorded Directly to Income Foreign exchange contracts (4) Cash Flow Cost of sales (3,795 ) 643 — _________________ (1) Amounts recognized in AOCI represent the change in the fair value of the derivative instruments related to the excluded components. Amounts reclassified from AOCI to income represent amortization of excluded components based upon the instruments' periodic coupons. Amounts recorded directly to income represent the change in the fair value of the derivative instruments related to the effective portion of the qualifying hedge. (2) Amounts recognized in AOCI represent the total change in the fair value of the derivative instrument. Amounts recorded to AOCI are recorded within foreign currency translation. Amounts reclassified from AOCI to income represent amortization of excluded components based on the instrument's periodic coupon. (3) Amounts recognized in AOCI represent the total change in the fair value of the derivative instruments. Amounts reclassified from AOCI to income represent the change in the fair value of the derivative instruments related of the effective portion of the qualifying hedges, as well as amortization of the excluded components based upon the instruments' periodic coupons. For the three months ended June 30, 2019 , the amount reclassified to income from AOCI includes $4.7 million in gains related to the effective portion of the hedges and $0.8 million in losses related to amortization of the excluded components. (4) Amounts recognized in AOCI represent the total change in the fair value of the derivative instruments. Amounts reclassified from AOCI to income represent the change in the fair value of the derivative instruments pertaining to the settlement of the qualifying hedged item (effective portion). The following tables present the total amount of each income and expense line item presented in the Condensed Statements of Operations in which the results of fair value and cash flow hedges are recorded and the effects of those hedging strategies on income (amounts in thousands): Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Cost of sales Other income (expense), net Cost of sales Other income (expense), net Total income (expense) in Statements of Operations $ (223,614 ) $ 726 $ (232,795 ) $ 11,371 Fair value hedging impact Cross-currency swaps: Gain (loss) on hedged item — (3,337 ) — — Gain (loss) on derivative instrument (1) — 1,715 — — Cash flow hedging impact Cross-currency swaps: Gain (loss) reclassified from AOCI to income (2) — 3,909 — — Foreign exchange contracts: Gain (loss) reclassified from AOCI to income (3) 385 — 643 — _________________ (1) Amounts recognized in income includes the change in the fair value of the derivative instruments related to the effective portion of the qualifying hedges and amortization of the excluded components. (2) Net losses of $8.5 million are expected to be reclassified from AOCI into income within the next 12 months. (3) Net gains of $1.5 million are expected to be reclassified from AOCI into income within the next 12 months. |
Leases
Leases | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company’s operating leases are primarily for distribution facilities, and sales and administrative offices. These operating leases have lease periods expiring between 2019 and 2061 . The Company’s finance leases are primarily for vehicles and certain network equipment. These leases expire between 2019 and 2024 . Many leases require the Company to pay certain executory costs (taxes, insurance, and maintenance) and contain renewal and purchase options. The Company does not assume renewals in the determination of the lease term unless renewals are deemed to be reasonably assured at lease commencement. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense for the three months ended June 30, 2019 are as follows (amounts in thousands): Three Months Ended June 30, 2019 Operating lease expense $ 2,404 Variable lease expense and other, net (1) 277 Short-term lease expense — Finance lease expense Amortization of right-of-use assets 251 Interest 16 Total lease expense $ 2,948 __________________ (1) Predominantly includes common area maintenance and parking expenses. Supplemental balance sheet information related to operating and finance leases as of June 30, 2019 is as follows (amounts in thousands, except lease term and discount rate): Balance Sheet Location June 30, 2019 Lease assets Operating lease ROU assets Other assets $ 32,169 Finance lease ROU assets (1) Property, plant and equipment, net of accumulated depreciation 2,297 $ 34,466 Lease liabilities Current operating lease liabilities Accrued expenses $ 8,061 Current finance lease liabilities Accrued expenses 1,000 Non-current operating lease liabilities Other non-current obligations 23,646 Non-current finance lease liabilities Other non-current obligations 1,328 $ 34,035 Weighted average remaining lease term Operating leases 6.43 years Finance leases 2.59 years Weighted average discount rate Operating leases 4.72 % Finance leases 5.63 % _________________ (1) Finance lease ROU assets are shown net of accumulated depreciation of $4.5 million . Supplemental cash flow information related to leases for the three months ended June 30, 2019 is as follows (amounts in thousands): Three Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 2,922 Operating cash flows used for finance leases 30 Financing cash flows used for finance leases 367 $ 3,319 Lease liabilities arising from obtaining ROU assets Operating leases $ 1,975 Finance leases 405 $ 2,380 Maturities of operating and finance lease liabilities as of June 30, 2019 were as follows (amounts in thousands): Fiscal year ending March 31, Operating Lease Liabilities Finance Lease Liabilities 2020 (nine months ending March 31, 2020) $ 7,026 $ 893 2021 7,546 834 2022 4,431 513 2023 4,035 225 2024 3,426 42 Thereafter 11,501 8 Total undiscounted cash flows $ 37,965 $ 2,515 Less imputed interest (6,258 ) (187 ) Present value of lease liabilities $ 31,707 $ 2,328 |
Leases | Leases The Company’s operating leases are primarily for distribution facilities, and sales and administrative offices. These operating leases have lease periods expiring between 2019 and 2061 . The Company’s finance leases are primarily for vehicles and certain network equipment. These leases expire between 2019 and 2024 . Many leases require the Company to pay certain executory costs (taxes, insurance, and maintenance) and contain renewal and purchase options. The Company does not assume renewals in the determination of the lease term unless renewals are deemed to be reasonably assured at lease commencement. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense for the three months ended June 30, 2019 are as follows (amounts in thousands): Three Months Ended June 30, 2019 Operating lease expense $ 2,404 Variable lease expense and other, net (1) 277 Short-term lease expense — Finance lease expense Amortization of right-of-use assets 251 Interest 16 Total lease expense $ 2,948 __________________ (1) Predominantly includes common area maintenance and parking expenses. Supplemental balance sheet information related to operating and finance leases as of June 30, 2019 is as follows (amounts in thousands, except lease term and discount rate): Balance Sheet Location June 30, 2019 Lease assets Operating lease ROU assets Other assets $ 32,169 Finance lease ROU assets (1) Property, plant and equipment, net of accumulated depreciation 2,297 $ 34,466 Lease liabilities Current operating lease liabilities Accrued expenses $ 8,061 Current finance lease liabilities Accrued expenses 1,000 Non-current operating lease liabilities Other non-current obligations 23,646 Non-current finance lease liabilities Other non-current obligations 1,328 $ 34,035 Weighted average remaining lease term Operating leases 6.43 years Finance leases 2.59 years Weighted average discount rate Operating leases 4.72 % Finance leases 5.63 % _________________ (1) Finance lease ROU assets are shown net of accumulated depreciation of $4.5 million . Supplemental cash flow information related to leases for the three months ended June 30, 2019 is as follows (amounts in thousands): Three Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 2,922 Operating cash flows used for finance leases 30 Financing cash flows used for finance leases 367 $ 3,319 Lease liabilities arising from obtaining ROU assets Operating leases $ 1,975 Finance leases 405 $ 2,380 Maturities of operating and finance lease liabilities as of June 30, 2019 were as follows (amounts in thousands): Fiscal year ending March 31, Operating Lease Liabilities Finance Lease Liabilities 2020 (nine months ending March 31, 2020) $ 7,026 $ 893 2021 7,546 834 2022 4,431 513 2023 4,035 225 2024 3,426 42 Thereafter 11,501 8 Total undiscounted cash flows $ 37,965 $ 2,515 Less imputed interest (6,258 ) (187 ) Present value of lease liabilities $ 31,707 $ 2,328 |
Concentrations of Risks
Concentrations of Risks | 3 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risks | Concentrations of Risks The Company sells to customers globally. Credit evaluations of its customers’ financial condition are performed periodically, and the Company generally does not require collateral from its customers. There were no customers’ accounts receivable balances exceeding 10% of gross accounts receivable at June 30, 2019 or March 31, 2019 . Consistent with industry practice, the Company utilizes electronics distributors for a large percentage of its sales. Electronics distributors are an effective means to distribute the products to end-users and they accounted for 42.9% and 41.7% of the Company's net sales for the three months ended June 30, 2019 and 2018 , respectively. One of the Company's customers, TTI, Inc., an electronics distributor, accounted for over 10% of the Company’s net sales for the three months ended June 30, 2019 and 2018 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 3 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated events from June 30, 2019 |
Basis of Financial Statement _2
Basis of Financial Statement Presentation (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions, and judgments based on historical data and other assumptions that management believes are reasonable. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. In addition, they affect the reported amounts of revenues and expenses during the reporting period. The Company’s judgments are based on management’s assessment as to the effect certain estimates, assumptions, or future trends or events may have on the financial condition and results of operations reported in the unaudited condensed consolidated financial statements. It is important that readers of these unaudited financial statements understand that actual results could differ from these estimates, assumptions, and judgments. |
Change in Accounting Policies | Change in Accounting Policies Effective April 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”) and Accounting Standards Update (“ASU”) No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing (Hosting) Arrangement that is a Service Contract (“ASU 2018-15”). As a result, the Company changed its accounting policy for leases and for implementation costs related to hosting arrangements. Except as discussed below, there have not been any other changes to the Company's significant accounting policies since the issuance of the Company's 2019 Annual Report. Leases ASC 842 requires the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases on the Condensed Consolidated Balance Sheets. The Company adopted ASC 842 using a modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to not reassess whether arrangements contained leases, not reassess lease classifications, and not reassess initial direct costs. The adoption of ASC 842 did not impact beginning retained earnings, or the prior year Condensed Consolidated Statements of Operations and Cash Flows. Under ASC 842, the Company determines if an arrangement contains a lease at inception based on whether or not the Company has the right to control the asset during the contract period and other facts and circumstances. The Company has elected to not allocate the contract consideration for operating lease contracts with lease and non-lease components, and account for the lease and non-lease components as a single lease component. Operating lease ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The operating lease ROU asset also includes any lease prepayments, net of lease incentives. Leases with a lease term of 12 months or less at inception are not recorded on the Condensed Consolidated Balance Sheets and are expensed on a straight-line basis over the lease term in the Condensed Consolidated Statements of Operations. The lease term is determined by assuming the exercise of renewal options that are reasonably certain. As most of the Company's leases do not provide an implicit interest rate, the Company uses its local incremental borrowing rate at the lease commencement date to determine the present value of lease payments. ROU assets and the short-term and long-term lease liabilities from operating leases are included in “Other assets,” “Accrued expenses,” and “Other non-current obligations,” respectively, in the Condensed Consolidated Balance Sheet. The Company's accounting for finance leases (formerly referred to as capital leases prior to the adoption of ASC 842) remains substantially unchanged. Finance leases are not material to the Company's Condensed Consolidated Financial Statements. Refer to Note 14 , Leases , for additional information regarding the Company's leases and related transition adjustments. Capitalized Software and Cloud-computing Arrangements In August 2018, the FASB issued ASU No. 2018-15. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company early adopted the amendment in the first quarter of fiscal year 2020 and is applying the ASU prospectively to implementation costs incurred after April 1, 2019. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue under the guidance provided in ASC 606, Revenue from Contracts with Customers (“ASC 606”). Consistent with the terms of ASC 606, the Company records revenue on product sales in the period in which the Company satisfies its performance obligation by transferring control over a product to a customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for transferring products to a customer. The Company has elected the practical expedient under ASC 606-10-32-18 and does not consider the effects of a financing component on the promised amount of consideration because the period between when the Company transfers a product to a customer and when the customer pays for that product is one year or less. As performance obligations are expected to be fulfilled in one year or less, the Company has elected the practical expedient under ASC 606-10-50-14 and has not disclosed information relating to remaining performance obligations. The Company sells its products to distributors, original equipment manufacturers (“OEM”), and electronic manufacturing services providers (“EMS”), and the sales price may include adjustments for sales discounts, price adjustments, and sales allowances. The Company has elected the practical expedient under ASC 606-10-10-4 and evaluates these sales-related adjustments on a portfolio basis. The principle forms of these adjustments include: • Inventory price protection and ship-from stock and debit (“SFSD”) programs, • Distributor rights of returns, • Sales allowances, and • Limited assurance warranties The Company's inventory price protection and SFSD programs provide authorized distributors with the flexibility to meet marketplace prices by allowing them, upon a pre-approved case-by-case basis, to adjust their purchased inventory cost to correspond with current market demand. Requests for SFSD adjustments are considered on an individual basis, require a pre-approved cost adjustment quote from their local KEMET sales representative, and apply only to a specific customer, part, specified special price amount, specified quantity, and are only valid for a specific period of time. To estimate potential SFSD adjustments corresponding with current period sales, KEMET records a sales reserve based on historical SFSD credits, distributor inventory levels, and certain accounting assumptions, all of which are reviewed quarterly. Select distributors have the right to return a certain portion of their purchased inventory to KEMET from the previous fiscal quarter. The Company estimates future returns based on historical return patterns and records a corresponding right of return asset and refund liability as a component of the line items, “Inventories, net” and “Accrued expenses,” respectively, on the Condensed Consolidated Balance Sheets. The Company also offers volume based rebates on a case-by-case basis to certain customers in each of the Company’s sales channels. The Company's sales allowances are recognized as a reduction in the line item “Net sales” on the Condensed Consolidated Statements of Operations, while the associated reserves are included in the line item “Accounts receivable, net” on the Condensed Consolidated Balance Sheets. Estimates used in determining sales allowances are subject to various factors. This includes, but is not limited to, changes in economic conditions, pricing changes, product demand, inventory levels in the supply chain, the effects of technological change, and other variables that might result in changes to the Company’s estimates. The Company provides a limited assurance warranty on products that meet certain specifications to select customers. The warranty coverage period is generally limited to one year for United States based customers and a length of time commensurate with regulatory requirements or industry practice outside the United States. A warranty cannot be purchased by the customer separately and, as a result, product warranties are not considered to be separate performance obligations. The Company’s liability under these warranties is generally limited to a replacement of the product or refund of the purchase price of the product. Warranty costs were not material for the three months ended June 30, 2019 and 2018 . Shipping and handling costs are included in cost of sales. Disaggregation of Revenue Refer to Note 8 , “ Segment and Geographic Information” for revenue disaggregated by primary geographical market, sales channel, and major product line. Contract liabilities Contract liabilities consist of advance payments from certain customers within the OEM channel for the development of additional production capacity. The current and noncurrent portions of these liabilities are included as a component of the line items, “Accrued expenses” and “Other non-current obligations,” respectively, on the Condensed Consolidated Balance Sheets. The balance of net contract liabilities consisted of the following at June 30, 2019 and March 31, 2019 (amounts in thousands): Contract Liabilities Classification in Balance Sheet June 30, 2019 March 31, 2019 Current Accrued expenses $ 256 $ 256 Non-current Other non-current obligations — — $ 256 $ 256 In the three months ended June 30, 2019 , the Company did not recognize any revenue related to contract liabilities at March 31, 2019 . In the three months ended June 30, 2018 , the Company recognized revenue of $0.1 million related to contract liabilities at March 31, 2018 . Revenue related to contract liabilities is recorded on the Condensed Consolidated Statements of Operations in the line item, "Net sales." Contract assets The Company recognizes an asset from the costs incurred to fulfill a contract if those costs directly relate to an existing or anticipated contract or specific business opportunity, if the costs enhance resources that will be used in satisfying performance obligations in the future, and the costs are expected to be recovered through subsequent sale of product to the customer. The Company has determined that certain direct labor, materials, and allocations of overhead incurred within research and development activities meet the requirements to be capitalized. As most of the Company's contracts and customer specific business opportunities do not include a stated term, the Company amortizes these capitalized costs over the expected product life cycle, which is consistent with the estimated transfer of goods to the customer. Capitalized contract costs were $1.5 million and $1.6 million at June 30, 2019 and March 31, 2019 , respectively. Capitalized contracts costs are recorded on the Condensed Consolidated Balance Sheets in the line item, “Other assets.” Amortization expense related to the contract costs was $0.2 million and $0.2 million for the three months ended June 30, 2019 and 2018 , respectively. There was no impairment loss in relation to the costs capitalized for the three months ended June 30, 2019 and 2018. Amortization expense related to contract assets is recorded on the Condensed Consolidated Statements of Operations in the line item "Cost of sales." Fair Value Measurement |
Fair Value Measurement | Fair Value Measurement The Company utilizes three levels of inputs to measure the fair value of (a) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company’s Condensed Consolidated Financial Statements on a recurring basis (at least annually) and (b) all financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The first two levels of inputs are considered observable and the last is considered unobservable. The levels of inputs are as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Deferred Income Taxes | Deferred Income Taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The Company periodically evaluates its net deferred tax assets based on an assessment of historical performance, ability to forecast future events, and the likelihood that the Company will realize the benefits through future taxable income. Valuation allowances are recorded to reduce the net deferred tax assets to the amount that is more likely than not to be realized. For interim reporting purposes, the Company records income taxes based on the expected annual effective income tax rate, taking into consideration global forecasted tax results and the effect of discrete tax events. The Company makes certain estimates and judgments in the calculation for the provision for income taxes, in the resulting tax liabilities, and in the recoverability of deferred tax assets. All deferred tax assets are reported as noncurrent in the Condensed Consolidated Balance Sheets. |
Inventories | Inventories |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements There are currently no accounting standards that have been issued that will have a significant impact on the Company’s financial position, results of operations or cash flows upon adoption. |
Basis of Financial Statement _3
Basis of Financial Statement Presentation (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Contract with customer, asset and liability | The balance of net contract liabilities consisted of the following at June 30, 2019 and March 31, 2019 (amounts in thousands): Contract Liabilities Classification in Balance Sheet June 30, 2019 March 31, 2019 Current Accrued expenses $ 256 $ 256 Non-current Other non-current obligations — — $ 256 $ 256 |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and March 31, 2019 are as follows (amounts in thousands): Carrying Value June 30, Fair Value June 30, Fair Value Measurement Using Carrying Value March 31, Fair Value March 31, Fair Value Measurement Using 2019 2019 Level 1 Level 2 (3) Level 3 2019 2019 Level 1 Level 2 (3) Level 3 Assets (Liabilities): Money markets (1)(2) $ 62,846 $ 62,846 $ 62,846 $ — $ — $ 60,687 $ 60,687 $ 60,687 $ — $ — Derivative assets 706 706 — 706 — 5,141 5,141 5,141 Derivative liabilities (3,145 ) (3,145 ) — (3,145 ) — — — — — — Total debt (312,096 ) (322,700 ) — (322,700 ) — (294,471 ) (303,170 ) — (303,170 ) — ___________________ (1) Included in the line item “Cash and cash equivalents” on the Condensed Consolidated Balance Sheets. (2) Certificates of Deposit of $34.1 million and $32.2 million that mature in three months or less are included within the balance as of June 30, 2019 and March 31, 2019 , respectively. (3) Derivative assets and liabilities fair value was determined by using a third-party matrix-pricing model that uses significant inputs derived from or corroborated by observable market data. Where applicable, these models discount future cash flow amounts using market-based observable inputs, including interest rate yield curves, and forward and spot prices for currencies. For total debt, the valuation approach used to calculate fair value was a discounted cash flow based on the current market rate. |
Schedule of components of inventories | Inventories are stated at the lower of cost or net realizable value. The components of inventories are as follows (amounts in thousands): June 30, 2019 March 31, 2019 Raw materials and supplies $ 104,160 $ 97,119 Work in process 83,856 71,374 Finished goods 86,766 88,175 Subtotal 274,782 256,668 Inventory reserves (18,642 ) (15,539 ) Inventories, net $ 256,140 $ 241,129 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt | A summary of debt is as follows (amounts in thousands): June 30, March 31, TOKIN Term Loan Facility (1) 284,623 276,808 Customer Advances (2) 20,906 11,270 Other (3) 6,567 6,393 Total debt 312,096 294,471 Current maturities (29,225 ) (28,430 ) Total long-term debt $ 282,871 $ 266,041 _________________ (1) Amount shown is net of discount, bank issuance costs, and other indirect issuance costs of $8.9 million and $8.7 million at June 30, 2019 and March 31, 2019 , respectively. (2) Amount shown is net of discount of $5.0 million and $2.1 million at June 30, 2019 , and March 31, 2019 , respectively. (3) Amounts are shown net of discounts of $0.6 million |
Schedule of line item Interest expense on the Condensed Consolidated Statements of Operations | The line item “Interest expense” on the Condensed Consolidated Statements of Operations for the three months ended June 30, 2019 and 2018 , consists of the following (amounts in thousands): Three Months Ended June 30, 2019 2018 Contractual interest expense $ 1,740 $ 6,845 Capitalized interest (105 ) (64 ) Amortization of debt issuance costs 127 116 Amortization of debt (premium) discount 767 98 Imputed interest on acquisition-related obligations — 15 Interest expense on finance leases 16 26 Total interest expense $ 2,545 $ 7,036 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table highlights the Company’s intangible assets (amounts in thousands): June 30, 2019 March 31, 2019 Carrying Amount Accumulated Amortization Net Amount Carrying Amount Accumulated Amortization Net Amount Indefinite Lived Intangible Assets: Trademarks $ 15,375 $ — $ 15,375 $ 15,151 $ — $ 15,151 Amortizing Intangibles: Patents (10 - 18 years) 26,662 (12,401 ) 14,261 26,662 (12,046 ) 14,616 Customer relationships (10 - 21 years) 38,714 (14,902 ) 23,812 37,850 (13,868 ) 23,982 Other 215 (215 ) — 214 (214 ) — Total amortizing intangibles 65,591 (27,518 ) 38,073 64,726 (26,128 ) 38,598 Total intangible assets $ 80,966 $ (27,518 ) $ 53,448 $ 79,877 $ (26,128 ) $ 53,749 |
Schedule of Goodwill [Table Text Block] | There were no changes to the carrying amount of goodwill during the three months ended June 30, 2019 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of the expenses aggregated on the Condensed Consolidated Statements of Operations line item "Restructuring charges" | A summary of the expenses aggregated in the Condensed Consolidated Statements of Operations line item “Restructuring charges” in the three months ended June 30, 2019 and 2018 , is as follows (amounts in thousands): Three Months Ended June 30, 2019 2018 Personnel reduction costs $ 1,229 $ (84 ) Relocation and exit costs 979 (12 ) Restructuring charges $ 2,208 $ (96 ) |
Reconciliation of the beginning and ending liability balances for restructuring charges included in the line items Accrued expenses and Other non-current obligations on the Condensed Consolidated Balance Sheets | A reconciliation of the beginning and ending liability balances for restructuring charges included in the line items “Accrued expenses” and “Other non-current obligations” on the Condensed Consolidated Balance Sheets for the three months ended June 30, 2019 and 2018 is as follows (amounts in thousands): Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Personnel Manufacturing Personnel Manufacturing Beginning of period $ 1,865 $ 316 $ 9,629 $ 330 Costs charged to expense 1,229 979 (84 ) (12 ) Costs paid or settled (1,315 ) (979 ) (5,131 ) 12 Change in foreign exchange 10 9 (244 ) (13 ) End of period $ 1,789 $ 325 $ 4,170 $ 317 |
Comprehensive Income (Loss) a_2
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in Accumulated Other Comprehensive Income (Loss) | Changes in AOCI for the three months ended June 30, 2019 and 2018 include the following components (amounts in thousands): Foreign Currency Translation, net of Tax (1) Post-Retirement Defined Benefit Pension Plans, net of Tax (2) Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss), net of Tax Cash Flow Hedges, net of Tax Excluded Component of Fair Value Hedges, net of Tax Net Accumulated Other Comprehensive Income (Loss), net of Tax Balance at March 31, 2019 $ (14,350 ) $ 793 $ (15,758 ) $ 274 $ 566 $ (2,249 ) $ (30,724 ) Other comprehensive income (loss) before reclassifications (3) (4) 5,834 — — — (1,704 ) (346 ) 3,784 Amounts reclassified out of AOCI (2,655 ) (37 ) 164 — (4,294 ) 1,638 (5,184 ) Other comprehensive income (loss) 3,179 (37 ) 164 — (5,998 ) 1,292 (1,400 ) Balance at June 30, 2019 $ (11,171 ) $ 756 $ (15,594 ) $ 274 $ (5,432 ) $ (957 ) $ (32,124 ) Foreign Currency Translation, net of Tax (1) Post-Retirement Defined Benefit Pension Plans, net of Tax (2) Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss), net of Tax Cash Flow Hedges, net of Tax Excluded Component of Fair Value Hedges, net of Tax Net Accumulated Other Comprehensive Income (Loss), net of Tax Balance at March 31, 2018 $ 9,715 $ 879 $ (14,831 ) $ 285 $ 1,154 $ — $ (2,798 ) Other comprehensive income (loss) before reclassifications (24,203 ) — — (11 ) (3,795 ) — (28,009 ) Amounts reclassified out of AOCI — (39 ) 39 — (643 ) — (643 ) Other comprehensive income (loss) (24,203 ) (39 ) 39 (11 ) (4,438 ) — (28,652 ) Balance at June 30, 2018 $ (14,488 ) $ 840 $ (14,792 ) $ 274 $ (3,284 ) $ — $ (31,450 ) _________________ (1) Due primarily to the Company’s valuation allowance on deferred tax assets, there were no significant deferred tax effects associated with the cumulative currency translation gains and losses during the three months ended June 30, 2019 and 2018 . (2) Ending balance is net of tax of $2.4 million and $2.3 million as of June 30, 2019 and 2018 , respectively. (3) Foreign currency translation, net of tax for the three months ended June 30, 2019 includes losses of $2.0 million related to a derivative instrument accounted for as a net investment hedge. Refer to Note 13 , Derivatives, for further information. (4) Cash flow hedges, net of tax for the three months ended June 30, 2019 includes losses of $6.9 million |
Changes in Shareholders' Equi_2
Changes in Shareholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Changes in Shareholders' Equity [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | Changes in Stockholders' Equity for the three months ended June 30, 2019 and 2018 include the following components (amounts in thousands): Shares Common Additional Retained Earnings Accumulated Total Balance at March 31, 2019 57,822 $ 578 $ 465,366 $ 204,195 $ (30,724 ) $ 639,415 Net income (loss) — — — 40,340 — 40,340 Other comprehensive income (loss) — — — — (1,400 ) (1,400 ) Cash dividends ($0.05 per share) — — — (2,900 ) — (2,900 ) Issuance of shares 196 2 (1,387 ) — — (1,385 ) Stock-based compensation — — 2,725 — — 2,725 Balance at June 30, 2019 58,018 $ 580 $ 466,704 $ 241,635 $ (32,124 ) $ 676,795 Shares Common Additional Retained Earnings Accumulated Total Balance at March 31, 2018 56,641 $ 566 $ 462,737 $ 3,370 $ (2,798 ) $ 463,875 Net income (loss) — — — 35,220 — 35,220 Other comprehensive income (loss) — — — — (28,652 ) (28,652 ) Issuance of shares 706 7 (5,536 ) — — (5,529 ) Stock-based compensation — — 4,060 — — 4,060 Balance at June 30, 2018 57,347 $ 573 $ 461,261 $ 38,590 $ (31,450 ) $ 468,974 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |
Reconciliation between NEC TOKIN's net loss and KEMET's equity investment loss | The following table provides a reconciliation of equity method investments to the Company's Condensed Consolidated Balance Sheets (amounts in thousands): June 30, 2019 March 31, 2019 Nippon Yttrium Co., Ltd ("NYC") $ 7,884 $ 8,215 NT Sales Co., Ltd ("NTS") 1,258 1,218 Novasentis Inc. (“Novasentis”) 671 977 KEMET Jianghai Electronics Components Co., Ltd (“KEMET Jianghai”) 4,425 2,515 $ 14,238 $ 12,925 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of business group's net sales, operating income (loss), depreciation and amortization expenses and sales by region | in four sites throughout Asia and operates a product innovation center in Japan. MSA primarily produces Electro-magnetic compatible (“EMC”) materials and devices, piezo materials and actuators, and various types of sensors, which are sold globally. In the following tables, revenue is disaggregated by primary geographical market, sales channel, and major product lines. The tables also include reconciliations of the disaggregated revenue with the reportable segments for the three months ended June 30, 2019 and 2018 (amounts in thousands): Three Months Ended June 30, 2019 Solid Capacitors Film and Electrolytic MSA Total Primary geographical markets Asia and the Pacific Rim ("APAC") $ 103,299 $ 10,943 $ 13,522 $ 127,764 Europe, the Middle East, and Africa ("EMEA") 53,084 27,793 829 81,706 North and South America ("Americas") 82,829 7,794 2,727 93,350 Japan and Korea ("JPKO") 8,995 179 33,248 42,422 $ 248,207 $ 46,709 $ 50,326 $ 345,242 Sales channel OEM $ 77,704 $ 18,527 $ 46,972 $ 143,203 Distributor 123,229 22,326 2,564 148,119 EMS 47,274 5,856 790 53,920 $ 248,207 $ 46,709 $ 50,326 $ 345,242 Major product lines Tantalum $ 132,386 $ — $ — $ 132,386 Ceramics 115,821 — — 115,821 Film and Electrolytic — 46,709 — 46,709 MSA — — 50,326 50,326 $ 248,207 $ 46,709 $ 50,326 $ 345,242 Three Months Ended June 30, 2018 Solid Capacitors Film and Electrolytic MSA Total Primary geographical markets APAC $ 100,370 $ 15,589 $ 17,000 $ 132,959 EMEA 41,466 32,607 575 74,648 Americas 63,105 6,649 2,397 72,151 JPKO 8,880 110 38,868 47,858 $ 213,821 $ 54,955 $ 58,840 $ 327,616 Sales channel OEM $ 70,388 $ 22,441 $ 56,100 $ 148,929 Distributor 107,634 26,568 2,484 136,686 EMS 35,799 5,946 256 42,001 $ 213,821 $ 54,955 $ 58,840 $ 327,616 Major product lines Tantalum $ 134,313 $ — $ — $ 134,313 Ceramics 79,508 — — 79,508 Film and Electrolytic — 54,955 — 54,955 MSA — — 58,840 58,840 $ 213,821 $ 54,955 $ 58,840 $ 327,616 The following table reflects each segment’s operating income (loss), depreciation and amortization expenses, and restructuring charges for the three months ended June 30, 2019 and 2018 (amounts in thousands): Three Months Ended June 30, 2019 2018 Operating income (loss): Solid Capacitors $ 102,686 $ 69,665 Film and Electrolytic (2,879 ) 1,067 MSA 3,658 6,055 Corporate (45,065 ) (41,611 ) $ 58,400 $ 35,176 Depreciation and amortization expense: Solid Capacitors $ 7,792 $ 7,182 Film and Electrolytic 2,291 2,620 MSA 1,510 1,504 Corporate 2,666 1,791 $ 14,259 $ 13,097 Restructuring charges: Solid Capacitors 121 (18 ) Film and Electrolytic 2,048 1 MSA — — Corporate 39 (79 ) $ 2,208 $ (96 ) |
Defined Benefit Pension and O_2
Defined Benefit Pension and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | he balance sheet classifications and carrying amounts of the Company's pension and other post-retirement benefit plans at June 30, 2019 and March 31, 2019 consist of the following (amounts in thousands): Pension Other Benefits June 30, 2019 March 31, 2019 June 30, 2019 March 31, 2019 Prepaid expenses and other current assets $ 815 $ 670 $ — $ — Accrued expenses (2,806 ) (2,753 ) (50 ) (50 ) Other non-current obligations (84,617 ) (82,455 ) (291 ) (262 ) Net amount recognized, end of period $ (86,608 ) $ (84,538 ) $ (341 ) $ (312 ) |
Schedule of components of net periodic benefit (income) costs relating to pension and other postretirement benefit plans | The components of net periodic benefit (income) costs relating to the Company’s pension and other post-retirement benefit plans for the three months ended June 30, 2019 and 2018 are as follows (amounts in thousands): Pension Other Benefits Three Months Ended June 30, Three Months Ended June 30, 2019 2018 2019 2018 Net service cost $ 1,250 $ 1,233 $ — $ — Interest cost 462 478 2 3 Expected return on net assets (470 ) (531 ) — — Amortization: Actuarial (gain) loss 113 107 (37 ) (39 ) Prior service cost 21 23 — — Total net periodic benefit cost (credit) $ 1,376 $ 1,310 $ (35 ) $ (36 ) |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | On May 18, 2019, the Company granted RSUs under the 2020/2021 LTIP with a grant date fair value of $17.43 that vest as follows (amounts in thousands): Shares May 18, 2020 66 May 18, 2021 141 May 18, 2022 144 Total RSUs granted (1) 351 __________________ (1) RSUs granted include a performance component. Therefore, the granted RSUs shown above are an estimate based upon current performance expectations. The final number of RSUs granted depends on the achievement of performance metrics. The following is the vesting schedule of RSUs under each respective LTIP, which vested during the three months ended June 30, 2019 (shares in thousands): 2019/2020 2018/2019 2017/2018 Time-based award vested 53 58 156 Performance-based award vested — — — RSU activity, including performance-based and time-based LTIP activity, for the three months ended June 30, 2019 is as follows (amounts in thousands except fair value): Shares Weighted- Non-vested RSUs at March 31, 2019 1,415 $ 15.19 Granted 351 17.43 Vested (267 ) 7.92 Forfeited (8 ) 15.32 Non-vested RSUs at June 30, 2019 1,491 $ 17.02 |
Schedule of the compensation expense (recovery) associated with stock-based compensation | The compensation expense associated with stock-based compensation for the three months ended June 30, 2019 and 2018 is recorded on the Condensed Consolidated Statements of Operations as follows (amounts in thousands): Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Stock Options RSUs LTIPs Stock Options RSUs LTIPs Cost of sales $ — $ 490 $ 384 $ — $ 351 $ 238 Selling, general and administrative expenses — 1,005 730 — 2,881 521 Research and development — 34 82 — 16 53 Total $ — $ 1,529 $ 1,196 $ — $ 3,248 $ 812 |
Basic and Diluted Net Income _2
Basic and Diluted Net Income (Loss) Per Common Share (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic EPS and diluted EPS | The following table presents basic earnings per share (“EPS”) and diluted EPS (amounts in thousands, except per share data): Three Months Ended June 30, 2019 2018 Numerator: Net income $ 40,340 $ 35,220 Denominator: Weighted-average shares outstanding: Basic 58,350 57,339 Assumed conversion of employee stock grants 705 1,699 Diluted 59,055 59,038 Net income per basic share $ 0.69 $ 0.61 Net income per diluted share $ 0.68 $ 0.60 |
Schedule of common stock equivalents that could potentially dilute net income (loss) per basic share in the future, but were not included in the computation of diluted earnings per share because the impact would have been antidilutive | ommon stock equivalents that could potentially dilute net income per basic share in the future, but were not included in the computation of diluted earnings per share because the impact would have been anti-dilutive. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The balance sheet classifications and fair value of derivative instruments designated as hedges as of June 30, 2019 and March 31, 2019 are as follows (amounts in thousands): Fair Value of Derivative Instruments June 30, 2019 March 31, 2019 Balance Sheet Location As Presented Offset Gross As Presented Offset Gross Derivative Assets Cross-currency swaps Other assets $ — $ — $ — $ 4,577 $ — $ 4,577 Foreign exchange contracts Prepaid and other current assets 706 633 1,339 564 645 1,209 Derivative Liabilities Cross-currency swaps Other non-current obligations $ 3,145 $ — $ 3,145 $ — $ — $ — Foreign exchange contracts Accrued expenses — 633 633 — 645 645 |
Gain (Loss) for Derivative Instruments Designated as Hedges | The following tables present gain and loss activity for the three months ended June 30, 2019 and 2018 for derivative instruments designated as hedges (amounts in thousands): Three Months Ended June 30, 2019 Gain (Loss) Derivative Instrument Hedge Designation Location of Gain (Loss) Recognized in Statements of Operations Recognized in AOCI Reclassified from AOCI to Income Recorded Directly to Income Cross-currency swaps (1) Fair Value Other income/expense, net $ (346 ) $ (1,622 ) $ 3,337 Cross-currency swaps (2) Net Investment Other income/expense, net (2,006 ) 2,655 — Cross-currency swaps (3) Cash Flow Other income/expense, net (2,231 ) 3,909 — Foreign exchange contracts (4) Cash Flow Cost of sales 527 385 — Three-Months Ended June 30, 2018 Gain (Loss) Derivative Instrument Hedge Designation Location of Gain (Loss) Recognized in Statements of Operations Recognized in AOCI Reclassified from AOCI to Income Recorded Directly to Income Foreign exchange contracts (4) Cash Flow Cost of sales (3,795 ) 643 — _________________ (1) Amounts recognized in AOCI represent the change in the fair value of the derivative instruments related to the excluded components. Amounts reclassified from AOCI to income represent amortization of excluded components based upon the instruments' periodic coupons. Amounts recorded directly to income represent the change in the fair value of the derivative instruments related to the effective portion of the qualifying hedge. (2) Amounts recognized in AOCI represent the total change in the fair value of the derivative instrument. Amounts recorded to AOCI are recorded within foreign currency translation. Amounts reclassified from AOCI to income represent amortization of excluded components based on the instrument's periodic coupon. (3) Amounts recognized in AOCI represent the total change in the fair value of the derivative instruments. Amounts reclassified from AOCI to income represent the change in the fair value of the derivative instruments related of the effective portion of the qualifying hedges, as well as amortization of the excluded components based upon the instruments' periodic coupons. For the three months ended June 30, 2019 , the amount reclassified to income from AOCI includes $4.7 million in gains related to the effective portion of the hedges and $0.8 million in losses related to amortization of the excluded components. (4) Amounts recognized in AOCI represent the total change in the fair value of the derivative instruments. Amounts reclassified from AOCI to income represent the change in the fair value of the derivative instruments pertaining to the settlement of the qualifying hedged item (effective portion). |
Schedule of Fair Value and Cash Flow Hedges Included in Earnings | The following tables present the total amount of each income and expense line item presented in the Condensed Statements of Operations in which the results of fair value and cash flow hedges are recorded and the effects of those hedging strategies on income (amounts in thousands): Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Cost of sales Other income (expense), net Cost of sales Other income (expense), net Total income (expense) in Statements of Operations $ (223,614 ) $ 726 $ (232,795 ) $ 11,371 Fair value hedging impact Cross-currency swaps: Gain (loss) on hedged item — (3,337 ) — — Gain (loss) on derivative instrument (1) — 1,715 — — Cash flow hedging impact Cross-currency swaps: Gain (loss) reclassified from AOCI to income (2) — 3,909 — — Foreign exchange contracts: Gain (loss) reclassified from AOCI to income (3) 385 — 643 — _________________ (1) Amounts recognized in income includes the change in the fair value of the derivative instruments related to the effective portion of the qualifying hedges and amortization of the excluded components. (2) Net losses of $8.5 million are expected to be reclassified from AOCI into income within the next 12 months. (3) Net gains of $1.5 million are expected to be reclassified from AOCI into income within the next 12 months. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | Supplemental cash flow information related to leases for the three months ended June 30, 2019 is as follows (amounts in thousands): Three Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used for operating leases $ 2,922 Operating cash flows used for finance leases 30 Financing cash flows used for finance leases 367 $ 3,319 Lease liabilities arising from obtaining ROU assets Operating leases $ 1,975 Finance leases 405 $ 2,380 The components of lease expense for the three months ended June 30, 2019 are as follows (amounts in thousands): Three Months Ended June 30, 2019 Operating lease expense $ 2,404 Variable lease expense and other, net (1) 277 Short-term lease expense — Finance lease expense Amortization of right-of-use assets 251 Interest 16 Total lease expense $ 2,948 __________________ (1) Predominantly includes common area maintenance and parking expenses. |
Assets And Liabilities, Lessee | Supplemental balance sheet information related to operating and finance leases as of June 30, 2019 is as follows (amounts in thousands, except lease term and discount rate): Balance Sheet Location June 30, 2019 Lease assets Operating lease ROU assets Other assets $ 32,169 Finance lease ROU assets (1) Property, plant and equipment, net of accumulated depreciation 2,297 $ 34,466 Lease liabilities Current operating lease liabilities Accrued expenses $ 8,061 Current finance lease liabilities Accrued expenses 1,000 Non-current operating lease liabilities Other non-current obligations 23,646 Non-current finance lease liabilities Other non-current obligations 1,328 $ 34,035 Weighted average remaining lease term Operating leases 6.43 years Finance leases 2.59 years Weighted average discount rate Operating leases 4.72 % Finance leases 5.63 % _________________ (1) Finance lease ROU assets are shown net of accumulated depreciation of $4.5 million . |
Finance Lease, Liability, Maturity | Maturities of operating and finance lease liabilities as of June 30, 2019 were as follows (amounts in thousands): Fiscal year ending March 31, Operating Lease Liabilities Finance Lease Liabilities 2020 (nine months ending March 31, 2020) $ 7,026 $ 893 2021 7,546 834 2022 4,431 513 2023 4,035 225 2024 3,426 42 Thereafter 11,501 8 Total undiscounted cash flows $ 37,965 $ 2,515 Less imputed interest (6,258 ) (187 ) Present value of lease liabilities $ 31,707 $ 2,328 |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating and finance lease liabilities as of June 30, 2019 were as follows (amounts in thousands): Fiscal year ending March 31, Operating Lease Liabilities Finance Lease Liabilities 2020 (nine months ending March 31, 2020) $ 7,026 $ 893 2021 7,546 834 2022 4,431 513 2023 4,035 225 2024 3,426 42 Thereafter 11,501 8 Total undiscounted cash flows $ 37,965 $ 2,515 Less imputed interest (6,258 ) (187 ) Present value of lease liabilities $ 31,707 $ 2,328 |
Basis of Financial Statement _4
Basis of Financial Statement Presentation - Revenue Recognition Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Period of product warranty | 1 year | ||
Contracts with customers, revenues recognized | $ 0.1 | ||
Capitalized contract costs | $ 1.5 | $ 1.6 | |
Capitalized contract cost, amortization | $ 0.2 | $ 0.2 |
Basis of Financial Statement _5
Basis of Financial Statement Presentation - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Current | $ 256 | $ 256 |
Non-current | 0 | 0 |
Total contract liabilities | $ 256 | $ 256 |
Basis of Financial Statement _6
Basis of Financial Statement Presentation - Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Contracts with customers, revenues recognized | $ 0.1 | ||
Capitalized contract costs | $ 1.5 | $ 1.6 | |
Capitalized contract cost, amortization | $ 0.2 | $ 0.2 |
Basis of Financial Statement _7
Basis of Financial Statement Presentation - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money markets, Carrying Value | $ 62,846 | $ 60,687 |
Total debt, Carrying Value | (312,096) | (294,471) |
Certificates of Deposit, at carrying value | 34,100 | 32,200 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt, Fair Value | (322,700) | (303,170) |
Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 0 | |
Derivative Liability | 0 | 0 |
Total debt, Fair Value | 0 | 0 |
Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 706 | |
Derivative Asset, Fair Value, Gross Asset | 5,141 | |
Derivative Liability | (3,145) | 0 |
Total debt, Fair Value | (322,700) | (303,170) |
Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 0 | |
Derivative Liability | 0 | 0 |
Total debt, Fair Value | 0 | 0 |
Money markets | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money markets, Fair Value Measurement | 62,846 | 60,687 |
Money markets | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money markets, Fair Value Measurement | 62,846 | 60,687 |
Money markets | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money markets, Fair Value Measurement | 0 | 0 |
Money markets | Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money markets, Fair Value Measurement | $ 0 | $ 0 |
Basis of Financial Statement _8
Basis of Financial Statement Presentation - Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials and supplies | $ 104,160 | $ 97,119 |
Work in process | 83,856 | 71,374 |
Finished goods | 86,766 | 88,175 |
Subtotal | 274,782 | 256,668 |
Inventory reserves | (18,642) | (15,539) |
Inventories, net | $ 256,140 | $ 241,129 |
Basis of Financial Statement _9
Basis of Financial Statement Presentation - ASC 606 Adjustments Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |||
Assets | |||||||
Account receivable, net | [1] | $ 154,522 | $ 154,059 | ||||
Total current assets | [1] | 676,156 | 642,053 | ||||
Other assets | [1] | 44,216 | 16,770 | ||||
Total assets | [1] | 1,391,206 | 1,318,095 | ||||
Liabilities and Stockholders' Equity | |||||||
Accrued expenses | [1] | 79,173 | 93,761 | ||||
Total current liabilities | [1] | 271,059 | 278,473 | ||||
Deferred Tax Liabilities, Net, Noncurrent | [1] | 11,214 | 8,806 | ||||
Other non-current obligations | [1] | 149,267 | 125,360 | ||||
Total liabilities | [1] | 714,411 | 678,680 | ||||
Retained earnings (deficit) | [1] | 241,635 | 204,195 | ||||
Accumulated other comprehensive income (loss) | [1] | (32,124) | (30,724) | ||||
Total stockholders’ equity | 676,795 | [1] | 639,415 | [1] | $ 468,974 | $ 463,875 | |
Total liabilities and stockholders’ equity | [1] | $ 1,391,206 | $ 1,318,095 | ||||
[1] | June 30, 2019 March 31, 2019 ASSETS Current assets: Cash and cash equivalents $ 217,307 $ 207,918 Accounts receivable, net 154,522 154,059 Inventories, net 256,140 241,129 Prepaid expenses and other current assets 48,187 38,947 Total current assets 676,156 642,053 Property, plant and equipment, net of accumulated depreciation of $889,142 and $880,451 as of June 30, 2019 and March 31, 2019, respectively 518,310 495,280 Goodwill 40,294 40,294 Intangible assets, net 53,448 53,749 Equity method investments 14,238 12,925 Deferred income taxes 44,544 57,024 Other assets 44,216 16,770 Total assets $ 1,391,206 $ 1,318,095 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 29,225 $ 28,430 Accounts payable 161,853 153,287 Accrued expenses 79,173 93,761 Income taxes payable 808 2,995 Total current liabilities 271,059 278,473 Long-term debt 282,871 266,041 Other non-current obligations 149,267 125,360 Deferred income taxes 11,214 8,806 Total liabilities 714,411 678,680 Stockholders’ equity: Preferred stock, par value $0.01, authorized 10,000 shares, none issued — — Common stock, par value $0.01, authorized 175,000 shares, issued 58,018 and 57,822 shares at June 30, 2019 and March 31, 2019, respectively 580 578 Additional paid-in capital 466,704 465,366 Retained earnings 241,635 204,195 Accumulated other comprehensive income (loss) (32,124 ) (30,724 ) Total stockholders’ equity 676,795 639,415 Total liabilities and stockholders’ equity $ 1,391,206 $ 1,318,095 |
Basis of Financial Statement_10
Basis of Financial Statement Presentation - ASC 606 Adjustment Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net sales | [1] | $ 345,242 | $ 327,616 |
Operating costs and expenses: | |||
Cost of sales | [1] | 223,614 | 232,795 |
Research and development | 12,175 | 10,688 | |
Operating Income (Loss) | [1] | 58,400 | 35,176 |
Income tax expense | [1] | 16,800 | 4,600 |
Net income (loss) | [1],[2] | $ 40,340 | $ 35,220 |
Net income (loss) per basic share (in usd per share) | $ 0.69 | $ 0.61 | |
Earnings Per Share, Diluted | $ 0.68 | $ 0.60 | |
[1] | |||
[2] |
Basis of Financial Statement_11
Basis of Financial Statement Presentation - ASC 606 Adjustment Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net income (loss) | [1],[2] | $ 40,340 | $ 35,220 |
Foreign currency translation gains (losses) | [2] | 3,179 | (24,203) |
Other comprehensive income (loss) | [2] | (1,400) | (28,652) |
Total comprehensive income (loss) | [2] | $ 38,940 | $ 6,568 |
[1] | |||
[2] |
Basis of Financial Statement_12
Basis of Financial Statement Presentation - ASC 606 Adjustment Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net income (loss) | [1],[2] | $ 40,340 | $ 35,220 |
Depreciation and amortization | [3] | 14,259 | 13,097 |
Change in deferred income taxes | [3] | 14,895 | 951 |
Change in operating assets | [3] | (15,626) | (24,520) |
Change in operating liabilities | [3] | (26,268) | (49,330) |
Other | (57) | (488) | |
Net cash provided by (used in) operating activities | [3] | 33,713 | (15,850) |
Effect of foreign currency fluctuations on cash | [3] | $ 1,150 | $ (7,061) |
[1] | |||
[2] | |||
[3] |
Basis of Financial Statement_13
Basis of Financial Statement Presentation Capitalized software and cloud-computing arrangements (Details) $ in Millions | Jun. 30, 2019USD ($) |
Capitalized Hosting Arrangement Costs [Abstract] | |
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, after Accumulated Amortization | $ 2.2 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands, ¥ in Billions | Apr. 19, 2017USD ($)Rate | Apr. 19, 2017JPY (¥)Rate | Jun. 30, 2019USD ($)manufacturing_site | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($)Rate | Dec. 31, 2017JPY (¥)Rate | Sep. 30, 2017Rate | Apr. 14, 2017USD ($) | Apr. 14, 2017JPY (¥) | Mar. 31, 2017Rate |
Business Acquisition [Line Items] | ||||||||||
Foreign Currency Exchange Rate, Translation | Rate | 10900.70% | 10900.70% | 11257.40% | 11257.40% | 11250.20% | 11182.30% | ||||
Equity income (loss) from equity method investments | $ | $ (250) | $ (69) | ||||||||
Business Acquisition Cost of Acquired Entity Working Capital Adjustment | $ 0 | ¥ 0.3 | ||||||||
KEC [Member] | TOKIN [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 66.00% | 66.00% | ||||||||
Payments to Acquire Businesses, Gross | $ 148,600 | ¥ 16.2 | ||||||||
TOKIN [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of Manufacturing Sites | manufacturing_site | 6 | |||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 10,100 | ¥ 1.1 | $ 431,000 | ¥ 48.2 | ||||||
Stock Purchase Agreement [Member] | NEC TOKIN Corporation [Member] | KEMET Electronics Corporation [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity Method Investment, Ownership Percentage | 34.00% | |||||||||
Excess cash [Member] | KEC [Member] | TOKIN [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to Acquire Businesses, Gross | 93,600 | 10.2 | ||||||||
Cash Distribution [Member] | KEC [Member] | TOKIN [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to Acquire Businesses, Gross | $ 55,000 | ¥ 6 |
Debt (Details)
Debt (Details) $ in Thousands, € in Millions, ¥ in Millions | Sep. 07, 2018USD ($) | Sep. 01, 2017USD ($) | Sep. 01, 2017JPY (¥) | Feb. 28, 2019EUR (€) | Feb. 28, 2019USD ($) | Jul. 31, 2017EUR (€) | Jul. 31, 2017USD ($) | Jan. 31, 2017EUR (€) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 01, 2026EUR (€) | Feb. 01, 2025EUR (€) | Feb. 01, 2025USD ($) | Mar. 31, 2019USD ($) | Nov. 07, 2018USD ($) | Nov. 07, 2018JPY (¥) | Dec. 31, 2017Rate | May 02, 2016USD ($) |
Debt | ||||||||||||||||||
Long-term Debt | $ 312,096 | $ 294,471 | ||||||||||||||||
Debt, Long-term and Short-term, Combined Amount [Abstract] | ||||||||||||||||||
Revolving line of credit | 0 | |||||||||||||||||
Current maturities | (29,225) | (28,430) | ||||||||||||||||
Total long-term debt | 282,871 | 266,041 | ||||||||||||||||
Interest expense | ||||||||||||||||||
Contractual interest expense | 1,740 | $ 6,845 | ||||||||||||||||
Capitalized interest | (105) | (64) | ||||||||||||||||
Amortization of debt issuance costs | 127 | 116 | ||||||||||||||||
Amortization of debt (premium) discount | 767 | 98 | ||||||||||||||||
Imputed interest on acquisition-related obligations | 0 | 15 | ||||||||||||||||
Interest expense on finance leases | 16 | 26 | ||||||||||||||||
Total interest expense | 2,545 | 7,036 | ||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||
Payments to Acquire Property, Plant, and Equipment | 37,112 | 16,021 | ||||||||||||||||
Restricted Cash | 2,575 | $ 0 | ||||||||||||||||
Second part of loan | € 0.3 | $ 300 | ||||||||||||||||
Term Loan Facility | ||||||||||||||||||
Debt | ||||||||||||||||||
Long-term Debt | 284,623 | 276,808 | ¥ 33,000 | |||||||||||||||
Debt Issuance Costs, Net | (8,900) | (8,700) | ||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||
Interest payable | 1,700 | |||||||||||||||||
Advanced Payment from Original Equipment Manufacturer [Member] | ||||||||||||||||||
Debt | ||||||||||||||||||
Long-term Debt | 20,906 | 11,270 | ||||||||||||||||
Debt Issuance Costs, Net | (5,000) | (2,100) | ||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||
Proceeds from Issuance of Debt | $ 26,000 | |||||||||||||||||
Payments to Acquire Property, Plant, and Equipment | 7,700 | |||||||||||||||||
Advanced Payment from Original Equipment Manufacturer [Member] | Line of Credit [Member] | ||||||||||||||||||
Debt | ||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 72,000 | |||||||||||||||||
Term Loan Credit Agreement | ||||||||||||||||||
Debt | ||||||||||||||||||
Long-term Debt | $ 323,400 | |||||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||||||||
Current borrowing capacity | $ 75,000 | |||||||||||||||||
Remaining borrowing capacity | 62,500 | |||||||||||||||||
Other Debt Obligations [Member] | ||||||||||||||||||
Debt | ||||||||||||||||||
Long-term Debt | 6,567 | 6,393 | ||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||
Debt Instrument, Unamortized Discount | $ (600) | $ (600) | ||||||||||||||||
Portuguese Government Loan 2 [Member] | Other Debt Obligations [Member] | ||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||
Proceeds from Issuance of Debt | € 0.9 | $ 1,100 | ||||||||||||||||
Forecast [Member] | Portuguese Government Loan 2 [Member] | Other Debt Obligations [Member] | ||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||
Repayments of Other Debt | € | € 0.1 | |||||||||||||||||
TOKIN [Member] | Other Debt Obligations [Member] | ||||||||||||||||||
Debt | ||||||||||||||||||
Line of Credit, Debt Issue Discount Percent | Rate | 0.04% | |||||||||||||||||
Line of Credit Facility [Abstract] | ||||||||||||||||||
Rate | 0.53% | |||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||
Proceeds from Issuance of Debt | $ 3,200 | ¥ 350 | ||||||||||||||||
Initial Repayment [Member] [Member] | Forecast [Member] | Portuguese Government Loan 1 [Member] | Other Debt Obligations [Member] | ||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||
Repayments of Other Debt | € 0.2 | $ 200 | ||||||||||||||||
Prepaid Expenses and Other Current Assets | ||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||
Restricted Cash | $ 2,600 | |||||||||||||||||
Euro Member Countries, Euro | Portuguese Government Loan 1 [Member] | Other Debt Obligations [Member] | ||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||
Proceeds from Issuance of Debt | € | € 2.2 | |||||||||||||||||
United States of America, Dollars | Portuguese Government Loan 1 [Member] | Other Debt Obligations [Member] | ||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||
Proceeds from Issuance of Debt | € | € 2.5 |
Debt Term Loan Facility (JPY) (
Debt Term Loan Facility (JPY) (Details) $ in Thousands, ¥ in Billions | Dec. 31, 2018 | Nov. 08, 2018USD ($) | Nov. 08, 2018JPY (¥) | Jun. 30, 2019USD ($) | Jun. 30, 2019JPY (¥) | Jun. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Nov. 07, 2018USD ($) | Nov. 07, 2018JPY (¥) |
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 312,096 | $ 294,471 | |||||||
Proceeds from Issuance of Secured Debt | 12,541 | $ 0 | |||||||
Term Loan Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 323,400 | ||||||||
Debt, Prepayment Premium, Percent | 1.00% | 1.00% | |||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 3,200 | ||||||||
Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | 284,623 | $ 276,808 | ¥ 33 | ||||||
Proceeds from Issuance of Secured Debt | 283,900 | ¥ 32.1 | |||||||
Proceeds from Debt, Net of Issuance Costs | $ 281,800 | ||||||||
Interest Payable, Current | 1,700 | ||||||||
Term Loan A Tranche | Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 146,000 | ¥ 16.5 | |||||||
Debt Instrument, Periodic Payment, Principal | $ 12,800 | ¥ 1.4 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | |||||||
Term Loan B Tranche | Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 146,000 | ¥ 16.5 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | |||||||
TIBOR | Term Loan B Tranche | Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.13% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (27,518) | $ (26,128) | ||
Intangible Assets, Net (Including Goodwill) | 53,448 | 53,749 | ||
Finite-Lived Intangible Assets, Net | 38,073 | 38,598 | ||
Finite-Lived Intangible Assets, Gross | 65,591 | 64,726 | ||
Intangible Assets, Gross (Excluding Goodwill) | 80,966 | 79,877 | ||
Indefinite-Lived Trademarks | 15,375 | 15,151 | ||
Intangible Assets, Net (Excluding Goodwill) | 53,448 | 53,749 | ||
Goodwill | 40,294 | 40,294 | ||
Amortization of Intangible Assets | 1,100 | $ 1,100 | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 4,500 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 15,700 | |||
Purchased Technology Customer Relationships And Patents [Member] | Weighted Average [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years 9 months 18 days | 15 years 9 months 12 days | ||
Patents [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (12,401) | (12,046) | ||
Finite-Lived Intangible Assets, Net | 14,261 | 14,616 | ||
Finite-Lived Patents, Gross | 26,662 | 26,662 | ||
Amortization of Intangible Assets | 300 | 400 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 7,200 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,400 | |||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (14,902) | (13,868) | ||
Finite-Lived Intangible Assets, Net | 23,812 | 23,982 | ||
Finite-Lived Customer Relationships, Gross | 38,714 | 37,850 | ||
Amortization of Intangible Assets | $ 800 | $ 700 | ||
Finite-Lived Intangible Asset, Useful Life | 12 years 3 months 18 days | 12 years 3 months 12 days | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 8,500 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,100 | |||
Other Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (215) | (214) | ||
Finite-Lived Intangible Assets, Net | 0 | 0 | ||
Other Finite-Lived Intangible Assets, Gross | 215 | 214 | ||
Trademarks [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Net (Excluding Goodwill) | $ 15,375 | $ 15,151 |
(Gain) Loss on Write Down and_2
(Gain) Loss on Write Down and Disposal of Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Disposal Group, Not (Gain) loss on write down and disposal of long-lived assetsDiscontinued Operation, Loss (Gain) on Write-down | $ 960 | $ 511 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Charges | ||
Restructuring charges | $ 2,208 | $ (96) |
Reconciliation of restructuring liability | ||
Costs charged to expense | 2,208 | (96) |
Employee Severance | ||
Restructuring Charges | ||
Restructuring charges | 1,229 | (84) |
Reconciliation of restructuring liability | ||
Beginning of period | 1,865 | 9,629 |
Costs charged to expense | 1,229 | (84) |
Costs paid or settled | (1,315) | (5,131) |
Change in foreign exchange | 10 | (244) |
End of period | 1,789 | 4,170 |
Employee Severance | NEVADA | Solid Capacitors | ||
Restructuring Charges | ||
Restructuring and Related Cost, Incurred Cost | 448 | |
Restructuring and Related Cost, Cost Incurred to Date | 448 | |
Restructuring and Related Cost, Expected Cost | 897 | |
Employee Severance | Granna, Sweden [Member] | Film and Electrolytic [Member] | ||
Restructuring Charges | ||
Restructuring and Related Cost, Incurred Cost | 673 | |
Restructuring and Related Cost, Cost Incurred to Date | 673 | |
Restructuring and Related Cost, Expected Cost | 673 | |
Manufacturing Relocation 1 [Member] | ||
Reconciliation of restructuring liability | ||
Costs paid or settled | (979) | |
Facility Closing [Member] | NEVADA | Solid Capacitors | ||
Restructuring Charges | ||
Restructuring and Related Cost, Incurred Cost | (552) | |
Restructuring and Related Cost, Cost Incurred to Date | 2,805 | |
Restructuring and Related Cost, Expected Cost | 2,098 | |
Facility Closing [Member] | Granna, Sweden [Member] | Film and Electrolytic [Member] | ||
Restructuring Charges | ||
Restructuring and Related Cost, Incurred Cost | 1,308 | |
Restructuring and Related Cost, Cost Incurred to Date | 3,603 | |
Restructuring and Related Cost, Expected Cost | 3,964 | |
Manufacturing Relocation | ||
Restructuring Charges | ||
Restructuring charges | 979 | (12) |
Reconciliation of restructuring liability | ||
Beginning of period | 316 | 330 |
Costs charged to expense | 979 | (12) |
Costs paid or settled | (12) | |
Change in foreign exchange | 9 | (13) |
End of period | 325 | $ 317 |
reorganization due to decline of MnO2 Products [Member] | Employee Severance | Solid Capacitors | ||
Restructuring Charges | ||
Restructuring and Related Cost, Incurred Cost | 43 | |
Restructuring and Related Cost, Cost Incurred to Date | 1,628 | |
Restructuring and Related Cost, Expected Cost | 3,128 | |
reorganization due to decline of MnO2 Products [Member] | Facility Closing [Member] | Solid Capacitors | ||
Restructuring Charges | ||
Restructuring and Related Cost, Incurred Cost | 0 | |
Restructuring and Related Cost, Cost Incurred to Date | 0 | |
Restructuring and Related Cost, Expected Cost | $ 0 |
Comprehensive Income (Loss) a_3
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | [1] | Mar. 31, 2018 | ||
Accumulated other comprehensive income (loss) | ||||||
Stockholders' Equity Attributable to Parent | $ 676,795 | [1] | $ 468,974 | $ 639,415 | $ 463,875 | |
Changes in accumulated other comprehensive income (loss) | ||||||
Other comprehensive income (loss) | (1,400) | (28,652) | ||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Changes in accumulated other comprehensive income (loss) | ||||||
Accumulated tax expense (benefit) | 2,400 | 2,300 | ||||
Foreign Currency Translation | ||||||
Changes in accumulated other comprehensive income (loss) | ||||||
Balance at the beginning of the period | (14,350) | 9,715 | ||||
Other comprehensive income (loss) before reclassifications | 5,834 | (24,203) | ||||
Amounts reclassified out of AOCI | (2,655) | 0 | ||||
Other comprehensive income (loss) | 3,179 | (24,203) | ||||
Balance at the end of the period | (11,171) | (14,488) | ||||
accumulated defined benefit post [Member] | ||||||
Changes in accumulated other comprehensive income (loss) | ||||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
Changes in accumulated other comprehensive income (loss) | ||||||
Balance at the beginning of the period | (15,758) | (14,831) | ||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||||
Amounts reclassified out of AOCI | 164 | 39 | ||||
Other comprehensive income (loss) | 164 | 39 | ||||
Balance at the end of the period | (15,594) | (14,792) | ||||
Post-Retirement Benefit Plan Adjustments, net of Tax | ||||||
Changes in accumulated other comprehensive income (loss) | ||||||
Balance at the beginning of the period | 793 | 879 | ||||
Amounts reclassified out of AOCI | (37) | (39) | ||||
Other comprehensive income (loss) | (37) | (39) | ||||
Balance at the end of the period | 756 | 840 | ||||
Ownership Share of Equity Method Investees’ Other Comprehensive Income (Loss), net of Tax | ||||||
Changes in accumulated other comprehensive income (loss) | ||||||
Balance at the beginning of the period | 274 | 285 | ||||
Other comprehensive income (loss) before reclassifications | 0 | (11) | ||||
Amounts reclassified out of AOCI | 0 | |||||
Other comprehensive income (loss) | 0 | (11) | ||||
Balance at the end of the period | 274 | 274 | ||||
Cash Flow Hedges, net of Tax | ||||||
Changes in accumulated other comprehensive income (loss) | ||||||
Balance at the beginning of the period | 566 | 1,154 | ||||
Other comprehensive income (loss) before reclassifications | (1,704) | (3,795) | ||||
Amounts reclassified out of AOCI | (4,294) | (643) | ||||
Other comprehensive income (loss) | (5,998) | (4,438) | ||||
Balance at the end of the period | (5,432) | (3,284) | ||||
Accumulated Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, net [Member] | ||||||
Changes in accumulated other comprehensive income (loss) | ||||||
Balance at the beginning of the period | (2,249) | 0 | ||||
Other comprehensive income (loss) before reclassifications | (346) | 0 | ||||
Amounts reclassified out of AOCI | 1,638 | 0 | ||||
Other comprehensive income (loss) | 1,292 | 0 | ||||
Balance at the end of the period | (957) | 0 | ||||
Net Accumulated Other Comprehensive Income (Loss) | ||||||
Changes in accumulated other comprehensive income (loss) | ||||||
Other comprehensive income (loss) before reclassifications | 3,784 | (28,009) | ||||
Amounts reclassified out of AOCI | (5,184) | (643) | ||||
Other comprehensive income (loss) | (1,400) | (28,652) | ||||
Balance at the end of the period | (32,124) | $ (31,450) | ||||
Cash Flow Hedging [Member] | ||||||
Accumulated other comprehensive income (loss) | ||||||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), before Adjustments, after Tax | $ 6,900 | |||||
[1] | June 30, 2019 March 31, 2019 ASSETS Current assets: Cash and cash equivalents $ 217,307 $ 207,918 Accounts receivable, net 154,522 154,059 Inventories, net 256,140 241,129 Prepaid expenses and other current assets 48,187 38,947 Total current assets 676,156 642,053 Property, plant and equipment, net of accumulated depreciation of $889,142 and $880,451 as of June 30, 2019 and March 31, 2019, respectively 518,310 495,280 Goodwill 40,294 40,294 Intangible assets, net 53,448 53,749 Equity method investments 14,238 12,925 Deferred income taxes 44,544 57,024 Other assets 44,216 16,770 Total assets $ 1,391,206 $ 1,318,095 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 29,225 $ 28,430 Accounts payable 161,853 153,287 Accrued expenses 79,173 93,761 Income taxes payable 808 2,995 Total current liabilities 271,059 278,473 Long-term debt 282,871 266,041 Other non-current obligations 149,267 125,360 Deferred income taxes 11,214 8,806 Total liabilities 714,411 678,680 Stockholders’ equity: Preferred stock, par value $0.01, authorized 10,000 shares, none issued — — Common stock, par value $0.01, authorized 175,000 shares, issued 58,018 and 57,822 shares at June 30, 2019 and March 31, 2019, respectively 580 578 Additional paid-in capital 466,704 465,366 Retained earnings 241,635 204,195 Accumulated other comprehensive income (loss) (32,124 ) (30,724 ) Total stockholders’ equity 676,795 639,415 Total liabilities and stockholders’ equity $ 1,391,206 $ 1,318,095 |
Changes in Shareholders' Equi_3
Changes in Shareholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||||
Net income (loss) | [1],[2] | $ 40,340 | $ 35,220 | ||||
Other Comprehensive Income (Loss), Net of Tax | (1,400) | (28,652) | |||||
Payments of Ordinary Dividends, Common Stock | (2,900) | 0 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (1,385) | (5,529) | |||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,725 | 4,060 | |||||
Stockholders' Equity Attributable to Parent | $ 676,795 | [3] | $ 468,974 | $ 639,415 | [3] | $ 463,875 | |
Common Stock [Member] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 196 | 706 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 2 | $ 7 | |||||
Shares, Issued | 58,018 | 57,347 | 57,822 | 56,641 | |||
Stockholders' Equity Attributable to Parent | $ 580 | $ 573 | $ 578 | $ 566 | |||
Retained Earnings [Member] | |||||||
Net income (loss) | 40,340 | 35,220 | |||||
Payments of Ordinary Dividends, Common Stock | (2,900) | ||||||
Stockholders' Equity Attributable to Parent | 241,635 | 38,590 | 204,195 | 3,370 | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |||||||
Other Comprehensive Income (Loss), Net of Tax | (1,400) | (28,652) | |||||
Additional Paid-in Capital [Member] | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (1,387) | (5,536) | |||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,725 | 4,060 | |||||
Stockholders' Equity Attributable to Parent | 466,704 | 461,261 | 465,366 | 462,737 | |||
AOCI Attributable to Parent [Member] | |||||||
Stockholders' Equity Attributable to Parent | $ (32,124) | $ (31,450) | $ (30,724) | $ (2,798) | |||
[1] | |||||||
[2] | |||||||
[3] | June 30, 2019 March 31, 2019 ASSETS Current assets: Cash and cash equivalents $ 217,307 $ 207,918 Accounts receivable, net 154,522 154,059 Inventories, net 256,140 241,129 Prepaid expenses and other current assets 48,187 38,947 Total current assets 676,156 642,053 Property, plant and equipment, net of accumulated depreciation of $889,142 and $880,451 as of June 30, 2019 and March 31, 2019, respectively 518,310 495,280 Goodwill 40,294 40,294 Intangible assets, net 53,448 53,749 Equity method investments 14,238 12,925 Deferred income taxes 44,544 57,024 Other assets 44,216 16,770 Total assets $ 1,391,206 $ 1,318,095 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 29,225 $ 28,430 Accounts payable 161,853 153,287 Accrued expenses 79,173 93,761 Income taxes payable 808 2,995 Total current liabilities 271,059 278,473 Long-term debt 282,871 266,041 Other non-current obligations 149,267 125,360 Deferred income taxes 11,214 8,806 Total liabilities 714,411 678,680 Stockholders’ equity: Preferred stock, par value $0.01, authorized 10,000 shares, none issued — — Common stock, par value $0.01, authorized 175,000 shares, issued 58,018 and 57,822 shares at June 30, 2019 and March 31, 2019, respectively 580 578 Additional paid-in capital 466,704 465,366 Retained earnings 241,635 204,195 Accumulated other comprehensive income (loss) (32,124 ) (30,724 ) Total stockholders’ equity 676,795 639,415 Total liabilities and stockholders’ equity $ 1,391,206 $ 1,318,095 |
Equity Method Investments - Sto
Equity Method Investments - Stock Purchase Agreement (Details) | Jun. 30, 2019 |
NEC TOKIN Corporation [Member] | KEMET Electronics Corporation [Member] | Stock Purchase Agreement [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 34.00% |
Equity Method Investments - Equ
Equity Method Investments - Equity Method Investment Income (Loss) Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Income (Loss) from Equity Method Investments | $ (250) | $ (69) |
Equity Method Investments - E_2
Equity Method Investments - Equity Method Investment Reconciliation (Details) $ in Thousands, R$ in Millions, $ in Millions | Jul. 26, 2016USD ($) | Jul. 26, 2016BRL (R$) | May 02, 2016installmentsuit | Dec. 09, 2015USD ($) | Dec. 09, 2015TWD ($) | Sep. 02, 2015installment | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2019USD ($) |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | |||||||||
Equity method investments | $ 14,238 | $ 12,925 | |||||||
Indemnification Agreement [Member] | Equity Method Investments [Member] | NEC TOKIN Corporation [Member] | |||||||||
Related Party Transactions [Abstract] | |||||||||
Litigation Settlement, Number of Payment Installments | installment | 5 | ||||||||
Settled Litigation [Member] | Indemnification Agreement [Member] | Equity Method Investments [Member] | |||||||||
Related Party Transactions [Abstract] | |||||||||
Litigation Settlement, Payment Period | 5 years | ||||||||
Litigation Settlement, Number of Payment Installments | installment | 6 | ||||||||
Preliminary Settlement [Member] | Indemnification Agreement [Member] | Equity Method Investments [Member] | NEC TOKIN Corporation [Member] | |||||||||
Related Party Transactions [Abstract] | |||||||||
Loss Contingency, Pending Claims, Number | suit | 2 | ||||||||
TAIWAN, PROVINCE OF CHINA | |||||||||
Related Party Transactions [Abstract] | |||||||||
Loss Contingency, Damages Sought, Value | $ 39,200 | $ 1,200 | |||||||
TAIWAN, PROVINCE OF CHINA | Minimum [Member] | |||||||||
Related Party Transactions [Abstract] | |||||||||
Loss Contingency, Damages Sought, Value | $ 19,600 | $ 609.1 | |||||||
BRAZIL | Settled Litigation [Member] | |||||||||
Related Party Transactions [Abstract] | |||||||||
Loss Contingency, Damages Paid, Value | $ 200 | R$ 0.6 | |||||||
NT Sales Co., Ltd (NTS) [Member] | |||||||||
Related Party Transactions [Abstract] | |||||||||
Sales to NEC TOKIN | 11,537 | $ 12,208 | |||||||
NEC TOKIN's sales to KEMET | $ 307 | $ 388 |
Equity Method Investments - E_3
Equity Method Investments - Equity Method Investments Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 14,238 | $ 12,925 |
Equity Method Investments | The following table provides a reconciliation of equity method investments to the Company's Condensed Consolidated Balance Sheets (amounts in thousands): June 30, 2019 March 31, 2019 Nippon Yttrium Co., Ltd ("NYC") $ 7,884 $ 8,215 NT Sales Co., Ltd ("NTS") 1,258 1,218 Novasentis Inc. (“Novasentis”) 671 977 KEMET Jianghai Electronics Components Co., Ltd (“KEMET Jianghai”) 4,425 2,515 $ 14,238 $ 12,925 | |
Nippon Yttrium Co., Ltd (NYC) [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 7,884 | 8,215 |
NT Sales Co., Ltd (NTS) [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 1,258 | 1,218 |
Novasentis [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 671 | 977 |
KEMET Jianghai [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 4,425 | $ 2,515 |
Equity Method Investments Narra
Equity Method Investments Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 14,238 | $ 12,925 |
Novasentis [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 27.90% | |
Equity method investments | $ 671 | 977 |
Nippon Yttrium Co., Ltd (NYC) [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 30.00% | |
Equity method investments | $ 7,884 | 8,215 |
NT Sales Co., Ltd (NTS) [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 33.00% | |
Equity method investments | $ 1,258 | 1,218 |
KEMET Jianghai [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | |
Equity method investments | $ 4,425 | $ 2,515 |
NT Sales Co., Ltd (NTS) [Member] | TOKIN [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 67.00% |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019USD ($)manufacturing_sitebusiness_group | Jun. 30, 2018USD ($) | ||
Segment and geographic information | |||
Net sales | [1] | $ 345,242 | $ 327,616 |
Number of business groups | business_group | 3 | ||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Operating income (loss) | [1] | $ 58,400 | 35,176 |
Depreciation and amortization expense | [2] | 14,259 | 13,097 |
Restructuring charges | 2,208 | (96) | |
Asia and Pacific Rim (“APAC”) | |||
Segment and geographic information | |||
Net sales | 127,764 | 132,959 | |
Europe, Middle East, Africa (“EMEA”) | |||
Segment and geographic information | |||
Net sales | 81,706 | 74,648 | |
North and South America (“Americas”) | |||
Segment and geographic information | |||
Net sales | 93,350 | 72,151 | |
Japan and Korea (“JPKO”) | |||
Segment and geographic information | |||
Net sales | 42,422 | 47,858 | |
Operating Income (Loss) [Member] | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Restructuring charges | 2,208 | (96) | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Operating income (loss) | (45,065) | (41,611) | |
Depreciation and amortization expense | 2,666 | 1,791 | |
Corporate, Non-Segment [Member] | Operating Income (Loss) [Member] | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Restructuring charges | 39 | (79) | |
Solid Capacitors | |||
Segment and geographic information | |||
Net sales | $ 248,207 | 213,821 | |
Number of Manufacturing Sites | manufacturing_site | 10 | ||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Operating income (loss) | $ 102,686 | 69,665 | |
Depreciation and amortization expense | 7,792 | 7,182 | |
Solid Capacitors | Asia and Pacific Rim (“APAC”) | |||
Segment and geographic information | |||
Net sales | 103,299 | 100,370 | |
Solid Capacitors | Europe, Middle East, Africa (“EMEA”) | |||
Segment and geographic information | |||
Net sales | 53,084 | 41,466 | |
Solid Capacitors | North and South America (“Americas”) | |||
Segment and geographic information | |||
Net sales | 82,829 | 63,105 | |
Solid Capacitors | Japan and Korea (“JPKO”) | |||
Segment and geographic information | |||
Net sales | 8,995 | 8,880 | |
Solid Capacitors | Operating Income (Loss) [Member] | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Restructuring charges | 121 | (18) | |
Film and Electrolytic [Member] | |||
Segment and geographic information | |||
Net sales | $ 46,709 | 54,955 | |
Number of Manufacturing Sites | manufacturing_site | 8 | ||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Operating income (loss) | $ (2,879) | 1,067 | |
Depreciation and amortization expense | 2,291 | 2,620 | |
Film and Electrolytic [Member] | Asia and Pacific Rim (“APAC”) | |||
Segment and geographic information | |||
Net sales | 10,943 | 15,589 | |
Film and Electrolytic [Member] | Europe, Middle East, Africa (“EMEA”) | |||
Segment and geographic information | |||
Net sales | 27,793 | 32,607 | |
Film and Electrolytic [Member] | North and South America (“Americas”) | |||
Segment and geographic information | |||
Net sales | 7,794 | 6,649 | |
Film and Electrolytic [Member] | Japan and Korea (“JPKO”) | |||
Segment and geographic information | |||
Net sales | 179 | 110 | |
Film and Electrolytic [Member] | Operating Income (Loss) [Member] | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Restructuring charges | 2,048 | 1 | |
Electro-magnetic, Sensors & Actuators [Member] | |||
Segment and geographic information | |||
Net sales | $ 50,326 | 58,840 | |
Number of Manufacturing Sites | manufacturing_site | 4 | ||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Operating income (loss) | $ 3,658 | 6,055 | |
Depreciation and amortization expense | 1,510 | 1,504 | |
Electro-magnetic, Sensors & Actuators [Member] | Asia and Pacific Rim (“APAC”) | |||
Segment and geographic information | |||
Net sales | 13,522 | 17,000 | |
Electro-magnetic, Sensors & Actuators [Member] | Europe, Middle East, Africa (“EMEA”) | |||
Segment and geographic information | |||
Net sales | 829 | 575 | |
Electro-magnetic, Sensors & Actuators [Member] | North and South America (“Americas”) | |||
Segment and geographic information | |||
Net sales | 2,727 | 2,397 | |
Electro-magnetic, Sensors & Actuators [Member] | Japan and Korea (“JPKO”) | |||
Segment and geographic information | |||
Net sales | 33,248 | 38,868 | |
Electro-magnetic, Sensors & Actuators [Member] | Operating Income (Loss) [Member] | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Restructuring charges | 0 | 0 | |
OEM [Member] | |||
Segment and geographic information | |||
Net sales | 143,203 | 148,929 | |
OEM [Member] | Solid Capacitors | |||
Segment and geographic information | |||
Net sales | 77,704 | 70,388 | |
OEM [Member] | Film and Electrolytic [Member] | |||
Segment and geographic information | |||
Net sales | 18,527 | 22,441 | |
OEM [Member] | Electro-magnetic, Sensors & Actuators [Member] | |||
Segment and geographic information | |||
Net sales | 46,972 | 56,100 | |
Distributor [Member] | |||
Segment and geographic information | |||
Net sales | 148,119 | 136,686 | |
Distributor [Member] | Solid Capacitors | |||
Segment and geographic information | |||
Net sales | 123,229 | 107,634 | |
Distributor [Member] | Film and Electrolytic [Member] | |||
Segment and geographic information | |||
Net sales | 22,326 | 26,568 | |
Distributor [Member] | Electro-magnetic, Sensors & Actuators [Member] | |||
Segment and geographic information | |||
Net sales | 2,564 | 2,484 | |
EMS [Member] | |||
Segment and geographic information | |||
Net sales | 53,920 | 42,001 | |
EMS [Member] | Solid Capacitors | |||
Segment and geographic information | |||
Net sales | 47,274 | 35,799 | |
EMS [Member] | Film and Electrolytic [Member] | |||
Segment and geographic information | |||
Net sales | 5,856 | 5,946 | |
EMS [Member] | Electro-magnetic, Sensors & Actuators [Member] | |||
Segment and geographic information | |||
Net sales | 790 | 256 | |
Tantalum [Member] | Solid Capacitors | |||
Segment and geographic information | |||
Net sales | 132,386 | 134,313 | |
Ceramics [Member] | Solid Capacitors | |||
Segment and geographic information | |||
Net sales | $ 115,821 | $ 79,508 | |
[1] | |||
[2] |
Defined Benefit Pension and O_3
Defined Benefit Pension and Other Postretirement Benefit Plans (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Number of Plans | 12 | ||
Pension | |||
Defined Benefit Plan Disclosure | |||
Contribution by employer | $ 900 | ||
Net periodic benefit (income) costs | |||
Net service cost | 1,250 | $ 1,233 | |
Interest cost | 462 | 478 | |
Expected return on net assets | (470) | (531) | |
Amortization: | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 113 | 107 | |
Prior service cost | 21 | 23 | |
Total net periodic benefit cost (credit) | 1,376 | 1,310 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (86,608) | $ (84,538) | |
Pension | Maximum | |||
Defined Benefit Plan Disclosure | |||
Estimated employer contribution in current fiscal year | $ 5,100 | ||
Pension | Europe | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Number of Plans | 6 | ||
Pension | Singapore | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Number of Plans | 1 | ||
Pension | Mexico | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Number of Plans | 2 | ||
Pension | JAPAN | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Number of Plans | 2 | ||
Other Benefits | |||
Net periodic benefit (income) costs | |||
Net service cost | $ 0 | 0 | |
Interest cost | 2 | 3 | |
Expected return on net assets | 0 | 0 | |
Amortization: | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (37) | (39) | |
Prior service cost | 0 | 0 | |
Total net periodic benefit cost (credit) | (35) | $ (36) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (341) | (312) | |
Prepaid Expenses and Other Current Assets [Member] | Pension | |||
Defined Benefit Plan Disclosure | |||
Assets for Plan Benefits, Defined Benefit Plan | (815) | (670) | |
Prepaid Expenses and Other Current Assets [Member] | Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Assets for Plan Benefits, Defined Benefit Plan | 0 | 0 | |
Accrued Liabilities [Member] | Pension | |||
Defined Benefit Plan Disclosure | |||
Assets for Plan Benefits, Defined Benefit Plan | (2,806) | (2,753) | |
Accrued Liabilities [Member] | Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Assets for Plan Benefits, Defined Benefit Plan | (50) | (50) | |
Other Noncurrent Liabilities [Member] | Pension | |||
Defined Benefit Plan Disclosure | |||
Assets for Plan Benefits, Defined Benefit Plan | (84,617) | (82,455) | |
Other Noncurrent Liabilities [Member] | Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Assets for Plan Benefits, Defined Benefit Plan | $ (291) | $ (262) |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - shares | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 12,200,000 | |
Stock options exercised | 16,667 | 44,100 |
Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
Share-based Payment Arrangement, Option [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Share-based Payment Arrangement, Option [Member] | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Restricted Stock Units (RSUs) [Member] | Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period of restriction for sale of shares | 90 days | |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Restricted Stock Units (RSUs) [Member] | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 267,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 8,000 | |
Restricted Stock [Member] | Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Omnibus Equity Incentive Plan 2011 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 11,400,000 | |
Prior Plans [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 800,000 | |
Long Term Incentive Plans [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Long Term Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | P2Y | |
Long Term Incentive Plan 2019 2020 [Member] | Restricted Stock Units, Time-Based Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 53,000 | |
Long Term Incentive Plan 2019 2020 [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Long Term Incentive Plan 2016 2017 [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Award Activity (Details) - $ / shares shares in Thousands | May 18, 2018 | Jun. 30, 2019 |
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2019 2020 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Shares | ||
Granted | 351 | |
Weighted- average Fair Value on Grant Date | ||
Granted | $ 17.43 | |
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2016 2017 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2018 2019 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2017 2018 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Restricted Stock Units (RSUs) [Member] | May 18, 2020 | Long Term Incentive Plan 2019 2020 [Member] | ||
Shares | ||
Granted | 66 | |
Restricted Stock Units (RSUs) [Member] | May 18, 2021 | Long Term Incentive Plan 2019 2020 [Member] | ||
Shares | ||
Granted | 141 | |
Restricted Stock Units (RSUs) [Member] | May 18, 2022 | Long Term Incentive Plan 2019 2020 [Member] | ||
Shares | ||
Granted | 144 | |
Restricted Stock Units, Performance-Based Award [Member] | Long Term Incentive Plan 2018 2019 [Member] | ||
Shares | ||
Vested | 0 | |
Restricted Stock Units, Performance-Based Award [Member] | Long Term Incentive Plan 2017 2018 [Member] | ||
Shares | ||
Vested | 0 | |
Restricted Stock Units, Time-Based Award [Member] | Long Term Incentive Plan 2019 2020 [Member] | ||
Shares | ||
Vested | (53) | |
Restricted Stock Units, Time-Based Award [Member] | Long Term Incentive Plan 2018 2019 [Member] | ||
Shares | ||
Vested | (58) | |
Restricted Stock Units, Time-Based Award [Member] | Long Term Incentive Plan 2017 2018 [Member] | ||
Shares | ||
Vested | (156) | |
RSUs | ||
Shares | ||
Beginning balance | 1,415 | |
Granted | 351 | |
Vested | (267) | |
Forfeited | (8) | |
Ending balance | 1,491 | |
Weighted- average Fair Value on Grant Date | ||
Beginning balance | $ 15.19 | |
Granted | 17.43 | |
Vested | 7.92 | |
Forfeited | 15.32 | |
Ending balance | $ 17.02 |
Stock-based Compensation - Allo
Stock-based Compensation - Allocation of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Long Term Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | $ 1,196 | $ 812 |
Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 0 | 0 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 1,529 | 3,248 |
Cost of sales | Long Term Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 384 | 238 |
Cost of sales | Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 0 | 0 |
Cost of sales | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 490 | 351 |
Selling, General and Administrative Expenses [Member] | Long Term Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 730 | 521 |
Selling, General and Administrative Expenses [Member] | Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 0 | 0 |
Selling, General and Administrative Expenses [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 1,005 | 2,881 |
Research and Development Expense [Member] | Long Term Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 82 | 53 |
Research and Development Expense [Member] | Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 0 | 0 |
Research and Development Expense [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | $ 34 | $ 16 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Income Tax Contingency [Line Items] | |||
Income tax expense (benefit) | [1] | $ 16,800 | $ 4,600 |
Current Federal Tax Expense (Benefit) | 11,000 | 200 | |
Foreign Tax Authority [Member] | |||
Income Tax Contingency [Line Items] | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | 5,700 | 4,700 | |
Tax Adjustments, Settlements, and Unusual Provisions | (900) | ||
State and Local Jurisdiction [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax expense (benefit) | $ 100 | $ (300) | |
[1] |
Basic and Diluted Net Income _3
Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Numerator: | |||
Net income (loss) | [1],[2] | $ 40,340 | $ 35,220 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 58,350 | 57,339 | |
Assumed conversion of employee stock grants (in shares) | 705 | 1,699 | |
Diluted (in shares) | 59,055 | 59,038 | |
Net income (loss) per basic share (in usd per share) | $ 0.69 | $ 0.61 | |
Net income (loss) per diluted share (in usd per share) | $ 0.68 | $ 0.60 | |
Common stock equivalents that could potentially dilute net income per basic share in the future, but were not included in the computation of diluted earnings per share because the impact would have been antidilutive | |||
Payments of Ordinary Dividends, Common Stock | $ 2,900 | $ 0 | |
[1] | |||
[2] |
Derivatives - Balance Sheet Cla
Derivatives - Balance Sheet Classification and Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Other Noncurrent Assets | Currency Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Liability | $ 0 | $ 0 |
Derivative Asset, Fair Value, Gross Asset | 0 | 4,577 |
Prepaid Expenses and Other Current Assets | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative Asset | 706 | 564 |
Derivative Asset, Fair Value, Gross Liability | 633 | 645 |
Derivative Asset, Fair Value, Gross Asset | 1,339 | 1,209 |
Other Noncurrent Liabilities | Currency Swap | ||
Derivative [Line Items] | ||
Derivative Liability | 0 | |
Derivative Liability, Fair Value, Gross Liability | 3,145 | 0 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Accrued Liabilities | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative Liability | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 633 | 645 |
Derivative Liability, Fair Value, Gross Asset | $ 633 | $ 645 |
Derivatives - Gain (Loss) for D
Derivatives - Gain (Loss) for Derivative Instruments Designated as Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 385 | $ 643 |
Currency Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 8,500 | |
Gain (Loss) Reclassified from AOCI to Income | 4,700 | |
Currency Swap | Other income/expense, net | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCI | (346) | |
Gain (Loss) Reclassified from AOCI to Income | (1,622) | |
Gain (Loss) Recorded Directly to Income | 3,337 | |
Currency Swap | Other income/expense, net | Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCI | (2,006) | |
Gain (Loss) Reclassified from AOCI to Income | 2,655 | |
Gain (Loss) Recorded Directly to Income | 0 | |
Currency Swap | Other income/expense, net | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCI | (2,231) | |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 3,909 | |
Gain (Loss) Recorded Directly to Income | 0 | |
Forward Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | (800) | |
Foreign Exchange Forward | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 1,500 | |
Foreign Exchange Forward | Cost of sales | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCI | 527 | (3,795) |
Gain (Loss) Reclassified from AOCI to Income | 385 | 643 |
Gain (Loss) Recorded Directly to Income | $ 0 | $ 0 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) $ in Millions, ¥ in Billions | 3 Months Ended | ||||||
Jun. 30, 2019USD ($) | Jun. 30, 2019JPY (¥) | Jun. 30, 2019JPY (¥) | May 28, 2019JPY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019JPY (¥) | Nov. 07, 2018JPY (¥) | |
Currency Swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ | $ 8.5 | ||||||
Mexico, Pesos | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount | $ | 100.7 | $ 74.3 | |||||
Fair Value Hedging | Currency Swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount | 288.9 | ¥ 31.6 | $ 279.7 | ¥ 31.6 | |||
Net Investment Hedging | Currency Swap Two | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount | ¥ 33 | ||||||
Net Investment Hedging | Currency Swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount | $ 279.7 | ¥ 31.6 | |||||
Amortization | ¥ 1.4 | ||||||
Derivative, fixed interest rate paid | 2.61% | 2.61% | |||||
Derivative, fixed interest rate received | 6.25% | 6.25% | |||||
Cash Flow Hedging [Member] | Currency Swap One | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount | ¥ 15.1 | ||||||
Derivative, fixed interest rate paid | 4.88% | 4.88% | |||||
Cash Flow Hedging [Member] | Currency Swap Two | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount | ¥ 16.5 | ||||||
Derivative, fixed interest rate paid | 5.26% | 5.26% | |||||
Cash Flow Hedging [Member] | Currency Swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Amortization | ¥ 1.4 | ||||||
JPY LIBOR | Cash Flow Hedging [Member] | Currency Swap One | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, basis spread on variable rate | 2.00% | 2.00% | |||||
JPY LIBOR | Cash Flow Hedging [Member] | Currency Swap Two | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative, basis spread on variable rate | 2.25% | 2.25% |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Value and Cash Flow Hedges Included in Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Derivative [Line Items] | |||
Cost of sales | [1] | $ 223,614 | $ 232,795 |
Other (income) expense, net | 726 | 11,371 | |
Other income/expense, net | |||
Derivative [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (3,337) | ||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 1,715 | ||
Cost of sales | |||
Derivative [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 385 | 643 | |
Currency Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 4,700 | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 8,500 | ||
Currency Swap [Member] | Cash Flow Hedging [Member] | Other income/expense, net | |||
Derivative [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 3,909 | ||
Currency Swap [Member] | Cash Flow Hedging [Member] | Other Nonoperating Income (Expense) [Member] | |||
Derivative [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 3,909 | ||
Foreign Exchange Forward [Member] | |||
Derivative [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 1,500 | ||
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Cost of sales | |||
Derivative [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 385 | $ 643 | |
[1] |
Leases - Schedule of Lease Cos
Leases - Schedule of Lease Cost (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 2,404 |
Variable lease expense and other, net | 277 |
Short-term lease expense | 0 |
Amortization of right-of-use assets | 251 |
Interest | 16 |
Total lease expense | $ 2,948 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lease assets | |
Operating lease ROU assets | $ 32,169 |
Finance lease ROU assets | 2,297 |
Total lease ROU asset | 34,466 |
Lease liabilities | |
Current operating lease liabilities | 8,061 |
Current finance lease liabilities | 1,000 |
Non-current operating lease liabilities | 23,646 |
Non-current operating lease liabilities | 1,328 |
Total lease liability | $ 34,035 |
Weighted average remaining lease term | |
Operating leases | 6 years 5 months 4 days |
Finance leases | 2 years 7 months 2 days |
Weighted average discount rate | |
Operating leases | 4.72% |
Finance leases | 5.63% |
Finance lease ROU asset accumulated depreciation | $ (4,500) |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | ||
Operating cash flows used for operating leases | $ 2,922 | |
Operating cash flows used for finance leases | 30 | |
Financing cash flows used for finance leases | 367 | $ 0 |
Cash paid for amounts included in the measurement of lease liabilities | 3,319 | |
Operating leases | 1,975 | |
Finance leases | 405 | |
Lease liabilities arising from obtaining ROU assets | $ 2,380 |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Lease Liabilities | |
2020 (nine months ending March 31, 2020) | $ 7,026 |
2021 | 7,546 |
2022 | 4,431 |
2023 | 4,035 |
2024 | 3,426 |
Thereafter | 11,501 |
Total undiscounted cash flows | 37,965 |
Less imputed interest | (6,258) |
Present value of lease liabilities | 31,707 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2020 (nine months ending March 31, 2020) | 893 |
2021 | 834 |
2022 | 513 |
2023 | 225 |
2024 | 42 |
Thereafter | 8 |
Total undiscounted cash flows | 2,515 |
Less imputed interest | (187) |
Present value of lease liabilities | $ 2,328 |
Concentrations of Risks (Detail
Concentrations of Risks (Details) $ in Thousands, € in Millions, ¥ in Millions, R$ in Millions, $ in Millions, $ in Millions, ₩ in Billions | Nov. 30, 2018USD ($) | Nov. 30, 2018KRW (₩) | Jun. 27, 2018USD ($) | Jun. 27, 2018CAD ($) | Mar. 21, 2018EUR (€) | Mar. 21, 2018USD ($) | Jul. 26, 2016USD ($) | Jul. 26, 2016BRL (R$) | May 02, 2016USD ($)installmentsuit | Mar. 29, 2016USD ($) | Mar. 29, 2016JPY (¥) | Dec. 09, 2015USD ($) | Dec. 09, 2015TWD ($) | Sep. 02, 2015USD ($)installment | Jul. 31, 2013defendantsuit | Jun. 30, 2019USD ($) | Jun. 30, 2018 | Mar. 31, 2019USD ($) | |
Concentration of Risk | |||||||||||||||||||
Accounts Payable, Trade, Current | $ 161,853 | $ 153,287 | |||||||||||||||||
Accrued Liabilities, Current | [1] | 79,173 | 93,761 | ||||||||||||||||
Other non-current obligations | [1] | $ 149,267 | $ 125,360 | ||||||||||||||||
Sales revenue | Sales risk | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Concentration Risk, Customer | 1 | 1 | |||||||||||||||||
Sales revenue | Sales risk | Minimum [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Concentration risk, percentage | 10.00% | 10.00% | |||||||||||||||||
Sales revenue | Electronics distributor risk | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Concentration risk, percentage | 42.90% | 41.70% | |||||||||||||||||
Accounts receivable | Sales risk | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Concentration Risk, Customer | 0 | 0 | |||||||||||||||||
Indemnification Agreement [Member] | Equity Method Investments [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 13,800 | ||||||||||||||||||
Settled Litigation [Member] | Indemnification Agreement [Member] | Equity Method Investments [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Litigation Settlement, Payment Period | 5 years | ||||||||||||||||||
Litigation Settlement, Number of Payment Installments | installment | 6 | ||||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 2,300 | ||||||||||||||||||
TAIWAN, PROVINCE OF CHINA | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Loss Contingency, Damages Sought, Value | $ 39,200 | $ 1,200 | |||||||||||||||||
TAIWAN, PROVINCE OF CHINA | Minimum [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Loss Contingency, Damages Sought, Value | $ 19,600 | $ 609.1 | |||||||||||||||||
JAPAN | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 1,100 | ¥ 127.2 | |||||||||||||||||
BRAZIL | Settled Litigation [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Loss Contingency, Damages Paid, Value | $ 200 | R$ 0.6 | |||||||||||||||||
TOKIN [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Loss Contingency Accrual | $ 26,300 | ||||||||||||||||||
TOKIN [Member] | CANADA | Settled Litigation [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Loss Contingency, Damages Paid, Value | $ 2,200 | $ 2.9 | |||||||||||||||||
NEC TOKIN Corporation [Member] | Indemnification Agreement [Member] | Equity Method Investments [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Litigation Settlement, Number of Payment Installments | installment | 5 | ||||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 37,300 | ||||||||||||||||||
NEC TOKIN Corporation [Member] | Preliminary Settlement [Member] | Indemnification Agreement [Member] | Equity Method Investments [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Loss Contingency, Pending Claims, Number | suit | 2 | ||||||||||||||||||
Lithium Ion Batteries Antitrust Litigation [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Loss Contingency, Number of Defendants | defendant | 8 | ||||||||||||||||||
Loss Contingency, Pending Claims, Number | suit | 2 | ||||||||||||||||||
Lithium Ion Batteries Antitrust Litigation [Member] | TOKIN [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Loss Contingency, Number of Defendants | defendant | 1 | ||||||||||||||||||
Battery Action Class Suit - Indirect Product Purchasers [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | 2,000 | ||||||||||||||||||
Battery Action Class Suit [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | 4,950 | ||||||||||||||||||
Competition Laws of the European Union [Member] | TOKIN [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | € 8.8 | $ 10,300 | |||||||||||||||||
Competition Laws of the European Union [Member] | NEC TOKIN Corporation [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | € 5 | $ 5,900 | |||||||||||||||||
Monopoly and Fair Trade Laws [Member] | TOKIN [Member] | KOREA, REPUBLIC OF | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 7,200 | ₩ 8.1 | |||||||||||||||||
AASI and Benchmark Complaints [Member] | TOKIN [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | 950 | ||||||||||||||||||
Accounts Payable [Member] | Unfavorable Regulatory Action [Member] | TOKIN [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Accounts Payable, Trade, Current | 7,300 | ||||||||||||||||||
Accrued Liabilities [Member] | Unfavorable Regulatory Action [Member] | TOKIN [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Accrued Liabilities, Current | 6,900 | ||||||||||||||||||
Other Noncurrent Liabilities [Member] | Unfavorable Regulatory Action [Member] | TOKIN [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Other non-current obligations | 12,100 | ||||||||||||||||||
Taiwan, New Dollars | TOKIN [Member] | TAIWAN, PROVINCE OF CHINA | Pending Litigation [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Loss Contingency, Damages Paid, Value | 182,700 | ||||||||||||||||||
United States of America, Dollars | TOKIN [Member] | TAIWAN, PROVINCE OF CHINA | Pending Litigation [Member] | |||||||||||||||||||
Concentration of Risk | |||||||||||||||||||
Loss Contingency, Damages Paid, Value | $ 5,900 | ||||||||||||||||||
[1] | June 30, 2019 March 31, 2019 ASSETS Current assets: Cash and cash equivalents $ 217,307 $ 207,918 Accounts receivable, net 154,522 154,059 Inventories, net 256,140 241,129 Prepaid expenses and other current assets 48,187 38,947 Total current assets 676,156 642,053 Property, plant and equipment, net of accumulated depreciation of $889,142 and $880,451 as of June 30, 2019 and March 31, 2019, respectively 518,310 495,280 Goodwill 40,294 40,294 Intangible assets, net 53,448 53,749 Equity method investments 14,238 12,925 Deferred income taxes 44,544 57,024 Other assets 44,216 16,770 Total assets $ 1,391,206 $ 1,318,095 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 29,225 $ 28,430 Accounts payable 161,853 153,287 Accrued expenses 79,173 93,761 Income taxes payable 808 2,995 Total current liabilities 271,059 278,473 Long-term debt 282,871 266,041 Other non-current obligations 149,267 125,360 Deferred income taxes 11,214 8,806 Total liabilities 714,411 678,680 Stockholders’ equity: Preferred stock, par value $0.01, authorized 10,000 shares, none issued — — Common stock, par value $0.01, authorized 175,000 shares, issued 58,018 and 57,822 shares at June 30, 2019 and March 31, 2019, respectively 580 578 Additional paid-in capital 466,704 465,366 Retained earnings 241,635 204,195 Accumulated other comprehensive income (loss) (32,124 ) (30,724 ) Total stockholders’ equity 676,795 639,415 Total liabilities and stockholders’ equity $ 1,391,206 $ 1,318,095 |