10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2018

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________

Commission file number 1-7201

(Exact name of registrant as specified in its charter)

Delaware	33-0379007
(State or other jurisdiction of incorporation or organization)	(IRS Employer ID No.)
1 AVX Boulevard Fountain Inn, South Carolina	29644
(Address of principal executive offices)	(Zip Code)
(864) 967-2150
(Registrant's phone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding at November 1, 2018
Common Stock, par value $0.01 per share	168,795,198

1

AVX Corporation and Subsidiaries

Table of Contents

		Page
PART I:	Financial Information:
ITEM 1.	Financial Statements (unaudited):	3
	Consolidated Balance Sheets as of March 31, 2018 and September 30, 2018	3
	Consolidated Statements of Operations for the three and six months ended September 30, 2017 and 2018	4
	Consolidated Statements of Comprehensive Income for the three and six months ended September 30, 2017 and 2018	5
	Consolidated Statements of Cash Flows for the six months ended September 30, 2017 and 2018	6
	Notes to Consolidated Financial Statements	7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	30
ITEM 4.	Controls and Procedures	30
PART II:	Other Information:
ITEM 1.	Legal Proceedings	31
ITEM 1A.	Risk Factors	31
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
ITEM 6.	Exhibits	31
Signature		32

2

PART I:     FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS (Unaudited)

AVX Corporation and Subsidiaries

Consolidated Balance Sheets (unaudited)

(in thousands, except per share data)

	As of			As of
	March 31, 2018			September 30, 2018
Assets
Current assets:
Cash and cash equivalents	$	547,415		$	487,896
Short-term investments in securities		279,787			356,815
Accounts receivable - trade, net		275,259			262,433
Accounts receivable - affiliates		9,255			631
Inventories, net		516,777			555,761
Income taxes receivable		2,566			14,212
Prepaid and other		70,665			66,717
Total current assets		1,701,724			1,744,465
Property and equipment, net		418,286			437,554
Goodwill		316,298			327,926
Intangible assets, net		128,612			125,750
Deferred income taxes		75,720			68,306
Other assets		32,126			36,654
Total Assets	$	2,672,766		$	2,740,655
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable - trade	$	89,726		$	93,057
Accounts payable - affiliates		26,320			1,226
Income taxes payable		8,290			19,924
Accrued payroll and benefits		52,044			52,205
Accrued expenses		118,183			151,014
Total current liabilities		294,563			317,426
Income taxes payable		69,645			63,589
Pensions		10,605			7,954
Deferred income taxes		12,895			12,224
Other liabilities		41,615			39,709
Total Liabilities		429,323			440,902
Stockholders' Equity:
Preferred stock, par value $.01 per share:
Authorized, 20,000 shares; None issued and outstanding		-			-
Common stock, par value $.01 per share:
Authorized, 300,000 shares; issued, 176,369 shares; outstanding, 168,434 and 168,795 shares at March 31, 2018 and September 30, 2018, respectively		1,764			1,764
Additional paid-in capital		360,077			360,076
Retained earnings		1,962,467			2,051,628
Accumulated other comprehensive income (loss)		21,257			(16,139	)
Treasury stock, at cost:
7,935 and 7,574 shares at March 31, 2018 and September 30, 2018, respectively		(102,122	)		(97,576	)
Total Stockholders' Equity		2,243,443			2,299,753
Total Liabilities and Stockholders' Equity	$	2,672,766		$	2,740,655

  See accompanying notes to consolidated financial statements.

3

AVX Corporation and Subsidiaries

Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data) 

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Net sales	$	352,693		$	456,328		$	684,047		$	910,444
Cost of sales		275,420			329,852			532,928			675,635
Gross profit		77,273			126,476			151,119			234,809
Selling, general and administrative expenses		32,487			40,839			63,902			81,154
Profit from operations		44,786			85,637			87,217			153,655
Other income (loss):
Interest income		5,067			4,055			7,398			7,538
Other, net		(813	)		(760	)		(1,231	)		(1,491	)
Income before income taxes		49,040			88,932			93,384			159,702
Provision for income taxes		14,222			16,863			27,082			31,670
Net income	$	34,818		$	72,069		$	66,302		$	128,032
Income per share:
Basic	$	0.21		$	0.43		$	0.39		$	0.76
Diluted	$	0.21		$	0.43		$	0.39		$	0.76
Dividends declared (per share)	$	0.115		$	0.115		$	0.225		$	0.230
Weighted average common shares outstanding:
Basic		168,262			168,749			168,167			168,621
Diluted		168,918			169,472			168,754			169,217

See accompanying notes to consolidated financial statements.

4

AVX Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2017		2018		2017			2018
Net income	$	34,818	$	72,069	$	66,302		$	128,032
Other comprehensive income (loss), net of income taxes
Foreign currency translation adjustment		12,385		1,310		33,447			(40,431	)
Foreign currency cash flow hedges adjustment		267		126		(421	)		189
Pension liability adjustment		68		216		(113	)		2,846
Other comprehensive income (loss), net of income taxes		12,720		1,652		32,913			(37,396	)
Comprehensive income	$	47,538	$	73,721	$	99,215		$	90,636

See accompanying notes to consolidated financial statements.

5

AVX Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

 (in thousands)

	Six Months Ended
	September 30,
	2017			2018
Operating Activities:
Net income	$	66,302		$	128,032
Adjustment to reconcile net income to net cash from operating activities:
Depreciation and amortization		21,241			41,937
Stock-based compensation expense		1,727			1,848
Deferred income taxes		746			(1,455	)
Gain on disposal of property and equipment		1			258
Equity income from equity-method investments		-			36
Changes in operating assets and liabilities, excluding acquisitions:
Accounts receivable		(9,291	)		17,196
Inventories		15,559			(42,626	)
Accounts payable and accrued expenses		(3,035	)		8,796
Income taxes payable		(1,373	)		(8,004	)
Other assets		28,900			(19,094	)
Other liabilities		7,657			11,537
Net cash provided by operating activities		128,434			138,461
Investing Activities:
Purchases of property and equipment		(38,916	)		(65,016	)
Purchase of business, net of cash and debt acquired		-			(12,317	)
Purchases of investment securities		(986,710	)		(699,887	)
Redemptions of investment securities		970,348			621,640
Other investing activities		(960	)		(951	)
Net cash used in investing activities		(56,238	)		(156,531	)
Financing Activities:
Dividends paid		(37,004	)		(38,785	)
Proceeds from exercise of stock options		4,121			3,509
Purchase of treasury stock		-			(811	)
Principle payments of debt		-			(1,893	)
Payments of tax withholdings for vested restricted stock units		(498	)		(790	)
Net cash used in financing activities		(33,381	)		(38,770	)
Effect of exchange rate on cash		1,340			(2,679	)
Increase (decrease) in cash and cash equivalents		40,155			(59,519	)
Cash and cash equivalents at beginning of period		578,634			547,415
Cash and cash equivalents at end of period	$	618,789		$	487,896

See accompanying notes to consolidated financial statements.

6

AVX Corporation and Subsidiaries

Notes to the Consolidated Financial Statements (Unaudited)

(in thousands, except per share data)

1. Basis of Presentation:

The consolidated financial statements of AVX Corporation and its subsidiaries (“AVX” or the “Company”) include all accounts of the Company and its subsidiaries. All intercompany transactions and accounts have been eliminated. We have prepared the accompanying financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in the opinion of management, include all adjustments, consisting of normal recurring adjustments and accruals, necessary for the fair statement of the consolidated balance sheets, operating results, comprehensive income, and cash flows for the periods presented. Operating results for the three and six months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2019 due to changes in economic conditions and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted in accordance with the rules and regulations of the SEC for interim financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.

Summary of Significant Accounting Policies

We have identified the accounting policies and estimates that are critical to our business operations and understanding our results of operations. Those policies and estimates can be found in Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements and in “Critical Accounting Policies and Estimates,” in “Management's Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. During the three and six month periods ended September 30, 2018, there were no significant changes to any critical accounting policies or to the methodology used in determining estimates including those related to investment securities, inventories, goodwill, intangible assets, property and equipment, and contingencies other than those discussed below and in Note 3 related to revenue recognition.

Revenue Recognition:

All products are built to specification and tested by AVX or our suppliers for adherence to such specification before shipment to customers. We ship products to customers based upon firm orders. Shipping and handling costs are treated as fulfillment costs and as such are included in cost of sales. The Company applies this accounting policy election consistently to its sales. We recognize revenue as performance obligations are satisfied, which is when the customer takes control of the products as they are shipped to or received by the customer in accordance with the terms of the agreement of sale.

There are general product warranties within our contracts, as the Company warrants that products will function as expected in accordance with the specifications per the contract. These warranties cannot be purchased by the customer separately and accordingly these warranties are not considered to be separate performance obligations.

Payment terms for the Company’s sales are generally less than 90 days. Substantially all of the Company’s receivables are collected within twelve months of the transfer of products to the customer and the Company expects this to continue going forward. The Company applies the practical expedient within ASC 606 to all of its contracts with payment terms less than or equal to twelve months and does not recognize a financing component in the determination of the transaction price.

We evaluate gross versus net presentation on revenues from products purchased and resold in accordance with the revenue recognition criteria outlined in ASC 606. Based on the evaluation of our resale arrangements with Kyocera, including consideration of the primary indicators set forth in ASC 606, we record revenue related to products purchased and resold on a gross basis.

The Company pays commissions to sales representatives on a per-sale basis and applies the practical expedient available within ASC 340. Accordingly, commissions are expensed as incurred.

7

The Company recognizes the estimated variable consideration to be received as revenue and records a related reduction to accounts receivable or as an accrued expense for the consideration not expected to be received, based upon its estimate of credits issued or products returned under the sales allowance programs described below. Marketplace volatilities which impact the estimates of variable consideration include, but are 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 our estimates. Accordingly, there can be no assurance that actual results will not differ from those estimates. We utilize the “portfolio approach” practical expedient in ASC 606, which allows entities to apply the guidance to a portfolio of contracts with similar characteristics because the effects on the financial statements of this approach would not differ materially from applying the guidance to individual contracts. Using the “portfolio approach,” we believe we have an adequate basis to assess the reasonableness and reliability of our estimates for each program.

Returns

Sales revenue and cost of sales reported in the statement of operations are reduced to reflect estimated returns. We record an estimated right of return liability for returns at the time of sale based on historical trends, current pricing and volume information, other market specific information, and input from sales, marketing, and other key management personnel. The liability accrued reflects the variable consideration not expected to be received. The estimated value of the return to customer’s inventory is recorded as an asset. These procedures require the exercise of significant judgments. We believe that these procedures enable us to make reliable estimates of future returns. Our actual results have historically approximated our estimates. When the product is returned and verified, the customer is given credit against their accounts receivable.

Distribution Programs

A portion of our sales to independent electronic component distributor customers are subject to various distributor sales programs. We report provisions for distributor allowances in connection with such sales programs as a reduction in revenue and report distributor allowances on the balance sheet as either a reduction in accounts receivable or right-of-return liabilities. For the distribution programs described below, we do not track the individual units that are recorded against specific products sold from distributor inventories, which would allow us to directly compare revenue reduction for credits recorded during any period with credits ultimately awarded in respect of products sold during that period. Rather, we believe our use of the “portfolio approach” provides an adequate basis to assess the reasonableness and reliability of our estimates for each program.

Distributor Stock Rotation Program

Stock rotation is a program whereby distributor customers are allowed to return, for credit, qualified inventory, semi-annually, equal to a certain percentage, primarily limited to 5% of the previous six months net sales. We record an estimated right of return liability for stock rotation at the time of sale based on a percentage of distributor sales using historical trends, current pricing and volume information, other market specific information, and input from sales, marketing, and other key management personnel. An asset is recorded for the estimated value of returned product. These procedures require the exercise of significant judgments. We believe that these procedures enable us to make reliable estimates of future returns under the stock rotation program. Our actual results have historically approximated our estimates. When the product is returned and verified, the distributor is given credit against their accounts receivable.

Distributor Ship-from-Stock and Debit Program

Ship-from-Stock and Debit (“ship and debit”) is a program designed to assist distributor customers in meeting competitive prices in the marketplace on sales to their end customers. Ship and debit programs require a request from the distributor for a pricing adjustment for a specific part for a sale to the distributor’s end customer from the distributor’s stock. The pricing adjustment is deemed variable consideration. Ship and debit authorizations may cover current and future distributor activity for a specific part for sale to their customer. At the time we record sales to the distributors, we provide an allowance for the variable consideration of the estimated future distributor activity related to such sales since it is probable that such sales to distributors will result in ship and debit activity. We record an estimated sales allowance based on sales during the period, credits issued to distributors, distributor inventory levels, historical trends, market conditions, pricing trends we see in our direct sales activity with original equipment manufacturers and other customers, and input from sales, marketing, and other key management personnel. These procedures require the exercise of significant judgments. We believe that these procedures enable us to make reliable estimates of future credits under the ship and debit program. Our actual results have historically approximated our estimates. At the time the distributor ships the part from stock, the distributor debits us for the authorized pricing adjustment.

8

Relevant New Accounting Standards

In 2014, FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This guidance modifies how an entity will determine the measurement of revenue and timing of when it is recognized. The Company adopted this guidance effective April 1, 2018, using the modified retrospective method, with no material impact on our results of operations. Please refer to Note 3 for additional information.

In February 2016, FASB issued ASU 2016-02, “Leases.” This guidance changes the requirements for inclusion of certain right-of-use assets and the associated lease liabilities to be included in a statement of financial position. The classification criteria maintains the distinction between finance leases and operating leases. Regarding finance leases, lessees are required to 1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position, 2) recognize interest on the lease liability separate from the amortization of the right-of-use asset in the statement of comprehensive income, and 3) classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows. Regarding operating leases, lessees are required to 1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position, 2) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis, and 3) classify all cash payments within operating activities in the statement of cash flows. This guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. Prior to our recent acquisitions, we disclosed that we anticipated no material impact from adopting ASU 2016-02. However, we are in the process of updating our assessment to include the impact of our recently acquired companies.

In August 2017, FASB issued ASU 2017-12, “Derivatives and Hedging.” The standard aims to align the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results for cash flow and fair value hedge accounting with risk management activities. The guidance is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted in any interim period after issuance. Management is currently evaluating the impact this guidance will have on our consolidated financial statements.

We have reviewed other newly issued accounting pronouncements and concluded that they are either not applicable to our business or that no material effect is expected on our consolidated financial statements as a result of future adoption.

2. Acquisitions:

We used the acquisition method of accounting to record the below transactions in accordance with FASB Accounting Standards Codification Topic 805, “Business Combinations.” In accordance with the acquisition method, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values with the excess being allocated to goodwill. Factors that contributed to the recognition of goodwill include expected synergies and the trained workforce. The goodwill is not deductible for tax purposes.

On October 2, 2017, AVX acquired the AB Electronics sensing and control business from TT Electronics, PLC, for $162,038, net of cash acquired. Now named Sensing and Control (“S&C”) and consolidated with our Interconnect, Sensing and Control Devices segment (formerly AVX Interconnect) for financial reporting purposes, the acquisition enhances AVX’s position in the automotive business and provides further opportunities for expansion and growth.

9

The results of operations for S&C since the acquisition date are included in the accompanying consolidated statements of operations.

Assets Acquired and Liabilities Assumed	Allocation of Purchase Price
Accounts receivable	$	61,483
Inventory		42,443
Accounts payable and accrued liabilities		(67,930	)
Other current assets and liabilities, net		8,566
Working capital		44,562
Property and equipment		85,794
Intangible assets		18,168
Other non-current assets and liabilities, net		(13,806	)
Total identified assets and liabilities		134,718
Purchase price		162,038
Goodwill	$	27,320

We recorded approximately $18,168 of identifiable intangible assets and $27,320 of goodwill pertaining to this acquisition. The acquired intangible assets relate to the AB Electronics trade name, existing technology and customer relationships which are being amortized over one, eleven, and six years respectively.  In the quarter ended September 30, 2018, immaterial measurement period adjustments were made to the allocation of the purchase price. The measurement period is no longer open.

The unaudited pro forma combined financial information is provided for the three and six month periods ended September 30, 2017 as though S&C had been acquired as of April 1, 2017. These pro forma combined results of revenues have been prepared by adjusting our historical results to include the historical results of S&C based on information available. Unaudited pro forma net sales for the three and six month periods ending September 30, 2017 would have been $442,057 and $871,161, respectively, with the inclusion of S&C's net sales for such period. We recognized revenue of $89,364 from S&C in the three month period ended September 30, 2018 and $187,114 for the six month period ended September 30, 2018.

On January 31, 2018, AVX acquired Ethertronics, Inc. for $127,677 net of cash and debt acquired. The Ethertronics business is now named “AVX Antenna” and is consolidated with our Electronic Components segment. The purchase of Ethertronics expands AVX’s extensive electronic product offering into the antenna technology market and will provide new and exciting growth opportunities for AVX going forward.

Assets Acquired and Liabilities Assumed	Allocation of Purchase Price
Accounts receivable	$	14,419
Accounts payable		(10,140	)
Other current assets and liabilities, net		3,613
Working capital		7,892
Debt		(21,105	)
Property and equipment		13,769
Intangible assets		64,800
Other non-current assets and liabilities, net		(15,498	)
Total identified assets and liabilities		49,858
Purchase price		127,677
Goodwill	$	77,819

The results of operations for AVX Antenna since the acquisition date are included in the accompanying consolidated statements of operations. We recorded approximately $64,800 of identifiable intangible assets and $77,819 of goodwill. The acquired intangible assets relate to the Ethertronics trade name, existing technology and customer relationships which are being amortized over ten, ten, and thirteen years, respectively. We recognized revenue of $31,806 and $63,747 from AVX Antenna in the three and six month periods ended September 30, 2018, respectively.  Immaterial working capital and other measurement period adjustments were made to the allocation to the purchase price. The measurement period remains open until February 2019.

On April 30, 2018, AVX, through its subsidiary AVX Interconnect Europe GmbH, acquired KUMATEC Sondermaschinenbau & Kunststoffverarbeitung GmbH (“Kumatec”) for consideration of approximately $12,882, net of cash acquired and debt assumed. Now named Kumatec and consolidated with our Interconnect, Sensing and Control segment, the purchase of Kumatec provides AVX with additional manufacturing capabilities and new business opportunities. We recorded approximately $3,189 of identifiable intangible assets and $9,754 of goodwill.  The acquired intangible assets relate to the Kumatec trade name, existing technology and customer relationships which are being amortized over six years. We recognized revenue of $658 and $2,755 from Kumatec in the three and six month periods ended September 30, 2018.

10

3. Revenue Recognition:

We adopted ASC 606 effective April 1, 2018 using the modified retrospective approach. We elected the practical expedient to only apply the standard to contracts that were not completed at the effective date. Implementing this standard had no impact on our revenue recognition for the uncompleted contracts and accordingly no cumulative adjustment was made to the opening balance of retained earnings as of April 1, 2018.

We identified a change in how we record right-of-return liabilities which impacts Current Assets and Current Liabilities. The change is primarily due to how ASC 606 defines a right-of-return contract liability. The following table compares the amounts reported in the Consolidated Balance Sheet had the previous revenue recognition guidance been in effect:

	Six Months Ended September 30, 2018
			Balances without		Increase Due to
	As reported		ASC 606 Adoption		Adoption
Accounts Receivable - trade, net	$	262,433	$	247,611	$	14,822
Accrued Expenses	$	151,014	$	136,192	$	14,822

Reference Note 5, "Trade Accounts Receivable and Contract Liabilities," for information on variable consideration and right-of-return liability details.

Reference Note 11, "Segment and Geographic Information," for disaggregated revenue information.

4. Earnings per Share:

Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the dilutive effect of potential common stock equivalents during the period. Stock options and unvested service-based restricted stock unit (“RSU”) awards make up the common stock equivalents and are computed using the treasury stock method.

The table below represents the basic and diluted earnings per share and sets forth the weighted average number of shares of common stock outstanding and potential common stock equivalents for the three and six month periods ending September 30, 2017 and 2018.

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2017		2018		2017		2018
Net income	$	34,818	$	72,069	$	66,302	$	128,032
Computation of Basic EPS:
Weighted Average Shares Outstanding used in Computing Basic EPS		168,262		168,749		168,167		168,621
Basic earnings per share	$	0.21	$	0.43	$	0.39	$	0.76
Computation of Diluted EPS:
Weighted Average Shares Outstanding used in Computing Basic EPS		168,262		168,749		168,167		168,621
Effect of stock awards		656		723		587		596
Weighted Average Shares used in Computing Diluted EPS (1)		168,918		169,472		168,754		169,217
Diluted earnings per share	$	0.21	$	0.43	$	0.39	$	0.76

(1) Common stock equivalents not included in the computation of diluted earnings per share because the impact would have been anti-dilutive were 0 shares and 14 shares for the three month periods ended September 30, 2017 and 2018, respectively and 94 shares and 14 shares for the six months ended September 30, 2017 and 2018, respectively. 

11

5. Trade Accounts Receivable and Contract Liabilities:

	March 31, 2018		September 30, 2018
Gross Accounts Receivable - trade	$	300,016	$	274,299
Less:
Allowances for doubtful accounts		1,893		1,327
Stock rotation		7,109		-
Ship from stock and debit		9,663		10,201
Sales returns		5,374		-
Discounts		718		338
Total allowances		24,757		11,866
Accounts Receivable - trade, net	$	275,259	$	262,433

Charges related to allowances for doubtful accounts are charged to selling, general and administrative expenses. Charges related to stock rotation, ship from stock and debit, sales returns, and sales discounts are reported as deductions from revenue. Please refer to Note 3, “Revenue Recognition,” for additional information.

12

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Allowances for doubtful accounts:
Beginning balance	$	1,447		$	1,294		$	1,285		$	1,893
Charges		-			49			164			81
Applications		(846	)		(16	)		(848	)		(647	)
Ending balance	$	601		$	1,327		$	601		$	1,327

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Stock rotation and ship from stock and debit:
Beginning balance	$	14,893		$	9,869		$	14,853		$	15,989
Charges		7,527			7,072			14,266			13,464
Applications		(7,301	)		(6,740	)		(14,000	)		(12,926	)
Stock rotation reclassified to liability		-			-			-			(6,326	)
Ending balance	$	15,119		$	10,201		$	15,119		$	10,201

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Sales returns and discounts:
Beginning balance	$	5,163		$	589		$	5,623		$	6,875
Charges		2,715			1,974			6,780			2,060
Applications		(2,819	)		(2,219	)		(7,372	)		(2,434	)
Sales returns reclassified to liability		-			-			-			(6,157	)
Translation, acquisition and other		17			(6	)		45			(6	)
Ending balance	$	5,076		$	338		$	5,076		$	338

6. Fair Value:

Fair Value Hierarchy:

The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to value the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:

^■ Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.

^■ Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.

^■ Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

During the three and six month periods ended September 30, 2018, there have been no transfers of assets or liabilities between levels within the fair value hierarchy.

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			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2018		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program(1)	$	6,649	$	5,959	$	690	$	-
Foreign currency derivatives(2)		257		-		257		-
Total	$	6,906	$	5,959	$	947	$	-

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2018		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program(1)	$	6,649	$	5,959	$	690	$	-
Foreign currency derivatives(2)		514		-		514		-
Total	$	7,163	$	5,959	$	1,204	$	-

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	September 30, 2018		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program(1)	$	7,342	$	5,576	$	1,766	$	-
Foreign currency derivatives(2)		355		-		355		-
Total	$	7,697	$	5,576	$	2,121	$	-

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	September 30, 2018		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program(1)	$	7,342	$	5,576	$	1,766	$	-
Foreign currency derivatives(2)		207		-		207		-
Total	$	7,549	$	5,576	$	1,973	$	-

(1) The market value of the assets held in the trust for the non-qualified deferred compensation program is included as an asset and as a liability as the trust’s assets are both assets of the Company and also a liability as they are available to general creditors in certain circumstances.

(2) Foreign currency derivatives in the form of forward contracts are included in prepaid and other assets or accrued expenses in the consolidated balance sheets. Unrealized gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income (loss). Realized gains and losses on derivatives designated as cash flow hedges and gains and losses on derivatives not designated as hedges are recorded in other income.

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Valuation Techniques:

The following describes valuation techniques used to appropriately value our assets held in the non-qualified deferred compensation plan and derivatives.

Assets held in the non-qualified deferred compensation plan

Assets valued using Level 1 and Level 2 inputs in the table above represent assets from our non-qualified deferred compensation program. The funds in the non-qualified deferred compensation program are valued based on the number of shares in the funds using a price per share traded in an active market.

Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. If the cost of an investment exceeds its fair value, among other factors, we evaluate general market conditions, the duration and extent to which the fair value is less than cost, and whether or not we expect to recover the security's entire amortized cost. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established.

Derivatives

We primarily use forward contracts, with maturities generally less than four months, designated as cash flow hedges, to protect against the foreign currency exchange rate risks inherent in our forecasted transactions related to purchase commitments and sales, denominated in various currencies. We also use derivatives not designated as hedging instruments to hedge foreign currency balance sheet exposures. These derivatives are used to offset currency changes in the fair value of the hedged assets and liabilities. Fair values for all of our derivative financial instruments are valued by adjusting the market spot rate by forward points, based on the date of the contract. The spot rates and forward points used are an average rate from an actively traded market. At March 31, 2018 and September 30, 2018, all of our forward contracts are valued using Level 2 measurements.

7. Financial Instruments and Investments in Securities:

At March 31, 2018 and September 30, 2018, we classified investments in debt securities and time deposits as held-to-maturity securities.

Our long-term and short-term investment securities are accounted for as held-to-maturity securities and are carried at amortized cost. We have the ability and intent to hold these investments until maturity. All income generated from the held-to-maturity securities investments are recorded as interest income.

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Investments in held-to-maturity securities, recorded at amortized cost, were as follows: 

	March 31, 2018
			Gross		Gross
			Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
Short-term investments:
Commercial Paper	$	10,597	$	-	$	(1	)	$	10,596
Time deposits		269,190		203		-			269,393
	$	279,787	$	203	$	(1	)	$	279,989

	September 30, 2018
			Gross		Gross
			Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Short-term investments:
Commercial paper	$	14,899	$	4	$	-	$	14,903
Time deposits		341,916		352		-		342,268
	$	356,815	$	356	$	-	$	357,171

The amortized cost and estimated fair value of held-to-maturity investments at September 30, 2018, by contractual maturity, are shown below. The estimated fair value of these investments are based on valuation inputs that include benchmark yields, reported trades, broker and dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data, which are Level 2 inputs in the fair value hierarchy. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

	Held-to-Maturity
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	356,815	$	357,171
Due after one year through five years		-		-
Total	$	356,815	$	357,171

8. Inventories:

	March 31, 2018		September 30, 2018
Finished goods	$	93,467	$	85,169
Work in process		133,556		142,837
Raw materials		289,754		327,755
Total Inventories, net	$	516,777	$	555,761

9. Commitments and Contingencies:

We have been identified by the United States Environmental Protection Agency (“EPA”), state governmental agencies or other private parties as a potentially responsible party (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), or equivalent non-U.S., state or local laws, for clean-up and response costs associated with certain sites at which remediation is required with respect to prior contamination. Because CERCLA or such state statutes authorize joint and several liability, the EPA or non-U.S., state or local regulatory authorities could seek to recover all clean-up costs from any one of the PRPs at a site despite the involvement of other PRPs. At certain sites, financially responsible PRPs other than AVX also are, or have been, involved in site investigation and clean-up activities. We believe that liability resulting from these sites will be apportioned between AVX and other PRPs.

To resolve our liability at the sites at which we have been named a PRP, we have entered into various administrative orders and consent decrees with federal and state regulatory agencies governing the timing and nature of investigation and remediation. As is customary, the orders and decrees regarding sites where the PRPs are not themselves implementing the chosen remedy contain provisions allowing the EPA to reopen the agreement and seek additional amounts from settling PRPs in the event that certain contingencies occur, such as the discovery of significant new information about site conditions.

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On June 3, 2010, AVX entered into an agreement with the EPA and the City of New Bedford, pursuant to which AVX is required to perform environmental remediation at a site referred to as the “Aerovox Site” (the “Site”), located in New Bedford, Massachusetts. AVX has substantially completed its obligations pursuant to such agreement with the EPA and the City of New Bedford with respect to the satisfaction of AVX’s federal law requirements. The Massachusetts Department of Environmental Protection has jurisdiction over the balance of the environmental remediation at the Site. AVX has submitted its proposed remedy, but until the state has approved such proposal, AVX cannot determine if additional groundwater and soil remediation will be required, if substantial material will have to be disposed of offsite, or if additional remediation techniques will be required, any of which could result in a more extensive and costly plan of remediation. Further, the Site and the remediation may be subject to additional scrutiny under other statutory procedures which could also add to the cost of remediation. We have a remaining accrual of $14,020 at September 30, 2018, representing our current estimate of the potential liability related to the remaining performance of environmental remediation actions at the Site and neighboring properties using certain assumptions regarding the plan of remediation. Until all parties agree and remediation is complete, we cannot be certain there will be no additional cost relating to the Site.

We had total reserves of approximately $18,618 and $18,729 at March 31, 2018 and September 30, 2018, respectively, related to various environmental matters and sites, including those discussed above. These reserves are classified in the Consolidated Balance Sheets as $3,329 and $6,040 in accrued expenses at March 31, 2018 and September 30, 2018, respectively, and $15,289 and $12,689 in other non-current liabilities at March 31, 2018 and September 30, 2018, respectively. The amounts recorded for identified environmental liabilities are based on estimates. Periodically, we review amounts recorded and adjust them to reflect additional legal and technical information that becomes available. Uncertainties about the status of laws, regulations, regulatory actions, technology, and information related to individual sites make it difficult to develop an estimate of the reasonably possible aggregate environmental remediation exposure. Accordingly, these costs could differ from our current estimates.

On April 19, 2016, the Canadian Ministry of the Environment and Climate Change (the “MoE”) issued a Director’s Order naming AVX Corporation, and others, as responsible parties with respect to a location in Hamilton, Ontario that was at one time the site of operations of Aerovox Canada, a former subsidiary of Aerovox Corporation, a predecessor of AVX. This Director’s Order follows a draft order issued on November 4, 2015. AVX has taken the position that any liability of Aerovox Canada for such site under the laws of Canada cannot be imposed on AVX. At present, it is unclear whether the MoE will seek to enforce such Canadian order against AVX, and whether, in the event it does so, AVX will have any liability under applicable law. AVX intends to contest any such course of action that may be taken by the MoE.

In connection with the same location, Union Gas Limited and Coca-Cola Refreshments Canada Company filed suits in the Superior Court of Justice for Ontario, Canada, against AVX Corporation, Aerovox Corp. and Cooper Industries, LLC seeking to recover the costs of remediation of the site and for damages associated with alleged contamination of the site. Those suits were filed on April 18, 2018, but not served on AVX until October 11, 2018, and are in their initial stages. AVX is considering its legal options but intends to vigorously defend these matters. 

We also operate, or did at one time, on other sites that may have potential future environmental issues as a result of activities at sites during AVX’s long history of manufacturing operations or prior to the start of operations by AVX. Even though we may have rights of indemnity for such environmental matters at certain sites, regulatory agencies in those jurisdictions may require us to address such issues. Once it becomes probable that we will incur costs in connection with remediation of a site and such costs can be reasonably estimated, we establish reserves or adjust our reserves for our projected share of these costs. A separate account receivable is recorded for any indemnified costs. Our environmental reserves are not discounted and do not reflect any possible future insurance recoveries, which are not expected to be significant, but do reflect a reasonable estimate of cost sharing at multiple party sites or indemnification of our liability by a third party.

We are not involved in any pending or threatened environmental proceedings that would require curtailment of our operations. We continually expend funds to ensure that our facilities comply with applicable environmental regulations. While we believe that we are in compliance with applicable environmental laws, we cannot accurately predict future developments and do not necessarily have knowledge of all past occurrences on sites that we currently occupy. New environmental regulations may be enacted and we cannot determine the modifications, if any, in our operations that any such future regulations might require, or the cost of compliance with such regulations. Moreover, the risk of environmental liability and remediation costs is inherent in the nature of our business and, therefore, there can be no assurance that material environmental costs, including remediation costs, will not arise in the future.

On April 25, 2013, AVX was named as a defendant in a patent infringement case filed in the United States District Court for the District of Delaware captioned Greatbatch, Inc. v. AVX Corporation. This case alleged that certain AVX products infringe on one or more of six Greatbatch patents. On January 26, 2016, the jury returned a verdict in favor of the plaintiff in the first phase of a segmented trial and a mixed verdict in the second phase of a segmented trial, and found damages to Greatbatch in the amount of $ 37,500, which was recorded in fiscal 2016.  That verdict was later vacated by the court on March 30, 2018. The amount of damages will be subject to further legal proceedings including a potential trial on damages, which we expect to occur in fiscal 2019. AVX is continuing to litigate the case.

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On September 2, 2014, a subsidiary of AVX, American Technical Ceramics (“ATC”), was named as a defendant in a patent infringement case filed in the United States District Court of the Southern District of California captioned Presidio Components, Inc. v. American Technical Ceramics Corp. This case alleged that certain ATC products infringe on a Presidio patent. On April 18, 2016, the jury returned a verdict in favor of the plaintiff and found damages to Presidio. On August 17, 2016, the court issued a permanent injunction prohibiting ATC from manufacturing or selling the related products after November 16, 2016. Subsequently, on October 21, 2016, the Federal Circuit Court granted AVX’s request for a stay of the permanent injunction whereby ATC was allowed to continue to sell the disputed product until March 17, 2017 to anyone who was a customer prior to June 17, 2016. Any sales subsequent to November 16, 2016 pursuant to the stay of the permanent injunction were subject to court mandated intellectual property damages for each product sold. In December, 2017, a panel of the Federal Circuit vacated the damage award to Presidio, vacated the injunction, and remanded the case for further proceedings to determine damages limited to “reasonable royalties” and to reconsider the requested injunction in light of its opinion and any additional facts. In 2018, the District Court set the amount of royalties and re-issued the injunction. An appeal has been filed from both decisions.

As of September 30, 2018, we had total reserves of $73,392 plus accrued interest in accrued expenses with respect to the two intellectual property cases discussed above. The amounts recorded are based on estimated outcomes. Amounts recorded are reviewed periodically and adjusted to reflect additional information that becomes available. Accordingly, these costs could differ from our current estimates.

During calendar year 2014, AVX was named as a co-defendant in a series of cases filed in the United States and in the Canadian provinces of Quebec, Ontario, British Columbia, Saskatchewan and Manitoba alleging violations of United States, state and Canadian antitrust laws and asserting that AVX and numerous other companies were participants in alleged price-fixing in the capacitor market. The cases in the United States were consolidated into the Northern District of California on October 2, 2014. However, some plaintiffs have broken off from the United States class action and filed actions on their own, although AVX is not named in all of these independent actions. The cases in Canada have not been consolidated. These cases are still in progress. AVX believes it has meritorious defenses and intends to vigorously defend the cases.

We are involved in other disputes, warranty, and legal proceedings arising in the normal course of business. While we cannot predict the outcome of these other disputes and proceedings, we believe, based upon a review with legal counsel, that none of these other disputes or proceedings will have a material impact on our financial position, results of operations, comprehensive income (loss), or cash flows. However, we cannot be certain of the eventual outcome in these or other matters that may arise and their potential impact on our financial position, results of operations, comprehensive income (loss), or cash flows.  

10. Comprehensive Income (Loss):

Comprehensive income (loss) represents changes in equity during a period except those resulting from investments by and distributions to shareholders. The specific components include net income, pension liability and other post-retirement benefit adjustments, deferred gains and losses resulting from foreign currency translation adjustments and unrealized gains and losses on qualified foreign currency cash flow hedges.

Other comprehensive income (loss) includes the following components: 

	Three Months Ended
	September 30,
	2017				2018
	Pre-tax		Net of Tax		Pre-tax		Net of Tax
Foreign currency translation adjustment	$	12,385	$	12,385	$	1,310	$	1,310
Foreign currency cash flow hedges adjustment		195		267		171		126
Pension liability adjustment		91		68		272		216
Other comprehensive income (loss)	$	12,671	$	12,720	$	1,753	$	1,652

	Six Months Ended
	September 30,
	2017						2018
	Pre-tax			Net of Tax			Pre-tax			Net of Tax
Foreign currency translation adjustment	$	33,447		$	33,447		$	(40,431	)	$	(40,431	)
Foreign currency cash flow hedges adjustment		(524	)		(421	)		248			189
Pension liability adjustment		(150	)		(113	)		3,579			2,846
Other comprehensive income (loss)	$	32,773		$	32,913		$	(36,604	)	$	(37,396	)

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Amounts reclassified out of accumulated other comprehensive income (loss) into net income (loss) include those that pertain to the Company’s pension and postretirement benefit plans and realized gains and losses on derivative instruments designated as cash flow hedges. Please see Note 12 for additional information related to the amortization of prior service cost and the recognized actuarial losses, which amounts are reclassified from accumulated other comprehensive income (loss) into net income (loss) and are included in selling, general and administrative expenses in the statement of operations during the three and six month periods ended September 30, 2017 and 2018. Please see Note 13 for additional information related to realized gains and losses on derivative instruments reclassified from accumulated other comprehensive income (loss) into net income (loss) during the three and six month periods ended September 30, 2018.

11. Segment and Geographic Information:

Our operating segments are based on the types of products from which we generate revenues. We are organized into a product line organization with four product groups and two reportable segments. Our four product groups are: Ceramic Components; Tantalum Components; Advanced Components; and Interconnect, Sensing and Control Devices (formerly AVX Interconnect). Historically, KED Resale reported as its own product group, but it has now been combined with Advanced Components. The reportable segments are: Electronic Components and Interconnect, Sensing and Control Devices. The product groups of Ceramic, Advanced, and Tantalum Components have been aggregated into the Electronic Components reportable segment in accordance with the SEC’s aggregation criteria and quantitative thresholds. The aggregation criteria consist of similar economic characteristics, products and services, production processes, customer classes, and distribution channels. The Electronic Components segment consists primarily of surface mount and leaded ceramic capacitors, RF thick and thin film components, surface mount and leaded tantalum capacitors, polymer tantalum capacitors, surface mount and leaded film capacitors, ceramic and film power capacitors, super capacitors, EMI filters (bolt in and surface mount), thick and thin film packages of multiple passive integrated components, varistors, thermistors, inductors, resistive products, and passive and active electronic antennas and antenna systems manufactured by us or purchased from other manufacturers for resale. The Interconnect, Sensing and Control Devices segment consists primarily of automotive sensing and control devices and automotive, telecom, and memory connectors manufactured by or for AVX. Sales and operating results from these reportable segments are shown in the tables below. In addition, we have a corporate administration group consisting of finance, legal, environmental, health & safety, and administrative activities.

We evaluate performance of our segments based upon sales and operating profit. There are no intersegment revenues. We allocate the costs of shared resources between segments based on each segment’s usage of the shared resources. Cash, accounts receivable, investments in securities, and certain other assets, which are centrally managed, are not readily allocable to operating segments.

The tables below present information about reported segments:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
Sales Revenue:	2017		2018		2017		2018
Ceramic Components	$	57,319	$	102,678	$	108,375	$	181,514
Tantalum Components		93,987		105,702		182,940		206,734
Advanced Components		168,810		123,849		330,471		263,193
Total Electronic Components		320,116		332,229		621,786		651,441
Interconnect, Sensing and Control Devices		32,577		124,100		62,261		259,004
Total Revenue	$	352,693	$	456,328	$	684,047	$	910,444

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	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Operating profit:
Electronic Components	$	56,076		$	104,135		$	110,795		$	190,545
Interconnect, Sensing and Control Devices		3,366			2,283			6,644			(467	)
Corporate activities		(14,656	)		(20,781	)		(30,222	)		(36,423	)
Total	$	44,786		$	85,637		$	87,217		$	153,655

	As of		As of
	March 31, 2018		September 30, 2018
Assets:
Electronic Components	$	632,014	$	678,940
Interconnect, Sensing and Control Devices		241,959		251,738
Cash, A/R, and investments in securities		1,111,716		1,107,775
Goodwill - Electronic Components		278,247		290,870
Goodwill - Interconnect, Sensing and Control Devices		38,051		37,056
Corporate activities		370,779		374,276
Total	$	2,672,766	$	2,740,655

The following geographic data is based upon net sales generated by operations located within particular geographic areas. Substantially all of the sales in the Americas region were generated in the United States.

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2017		2018		2017		2018
Net sales:
Americas	$	102,838	$	126,004	$	202,779	$	240,571
Europe		103,045		184,004		195,565		382,408
Asia		146,810		146,320		285,703		287,465
Total	$	352,693	$	456,328	$	684,047	$	910,444

12. Pension Plans:

Net periodic pension cost for our defined benefit plans consisted of the following for the three and six month periods ended September 30, 2017 and 2018:

	U.S. Plans						International Plans
	Three Months Ended						Three Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Service cost	$	33		$	-		$	231		$	212
Interest cost		352			327			1,136			1,024
Expected return on plan assets		(450	)		(393	)		(1,450	)		(1,441	)
Recognized actuarial loss		286			221			329			252
Net periodic pension cost	$	221		$	155		$	246		$	47

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	U.S. Plans						International Plans
	Six Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Service cost	$	66		$	-		$	459		$	427
Interest cost		704			655			2,244			2,070
Expected return on plan assets		(900	)		(786	)		(2,867	)		(2,912	)
Recognized actuarial loss		571			442			650			508
Net periodic pension cost	$	441		$	311		$	486		$	93

Based on current actuarial computations, during the six months ended September 30, 2018, we made contributions of $3,436 to the international plans. We expect to make additional contributions of approximately $3,270 to the international plans over the remainder of fiscal 2019. We made a contribution of $2,289 to the U.S. plans during the six months ended September 30, 2018. We do not expect to make additional contributions to the U.S. plans the remainder of fiscal 2019.

13. Derivative Financial Instruments:

We are exposed to foreign currency exchange rate fluctuations in the normal course of business. We use derivative instruments (forward contracts) to hedge certain foreign currency exposures as part of our risk management strategy. The objective is to offset gains and losses resulting from these exposures with gains and losses on the forward contracts used to hedge them, thereby reducing volatility of earnings or protecting fair values of assets and liabilities. We do not enter into any trading or speculative positions with regard to derivative instruments.

We primarily use forward contracts, with maturities less than four months, to protect against the foreign currency exchange rate risks inherent in our forecasted transactions related to purchase commitments and sales, denominated in various currencies. These derivative instruments are designated and qualify as cash flow hedges.

The effectiveness of the cash flow hedges is determined by comparing the cumulative change in the fair value of the hedge contract with the cumulative change in the fair value of the hedged transaction, both of which are based on forward rates. The effective portion of the gain or loss on these cash flow hedges is initially recorded in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Once the hedged transaction is recognized, the gain or loss is recognized in our statement of operations. At March 31, 2018 and September 30, 2018, respectively, the following forward contracts were entered into to hedge against the volatility of foreign currency exchange rates for certain forecasted sales and purchases:

	March 31, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	212	Accrued expenses	$	377

	September 30, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	222	Accrued expenses	$	139

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For these derivatives designated as cash flow hedging instruments, during the three and six month periods ended September 30, 2018, a net pre-tax gain of $715 and a net pre-tax loss of $118 were recognized in other comprehensive income (loss). In addition, during the three and six month periods ended September 30, 2018,  net pre-tax gains of $545 and $2,590, respectively, were reclassified from accumulated other comprehensive income (loss) into cost of sales (for hedging purchases), and net pretax gains of $32 and $1,403 were reclassified from accumulated other comprehensive income (loss) into sales (for hedging sales) in the accompanying statement of operations.

Derivatives not designated as cash flow hedging instruments consist primarily of forwards used to hedge foreign currency balance sheet exposures. These hedging instruments are used to offset foreign currency changes in the fair values of the underlying assets and liabilities. The gains and losses on these foreign currency forward contracts are recognized in other income (loss) in the same period as the re-measurement gains and losses of the related foreign currency denominated assets and liabilities and thus naturally offset these gains and losses. At March 31, 2018 and September 30, 2018, we had the following forward contracts that were entered into to hedge against these exposures.

	March 31, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	45	Accrued expenses	$	137

	September 30, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	133	Accrued expenses	$	68

For these derivatives not designated as cash flow hedging instruments during the three month and six month periods ended September 30, 2018, gains of $66 on hedging contracts were recognized in other income (loss), along with the approximately $1,245 in exchange gains that were recognized in other income (loss) in the accompanying statement of operations.

At March 31, 2018 and September 30, 2018, we had outstanding foreign exchange contracts with notional amounts totaling $156,238 and $175,751, respectively, denominated primarily in Euros, Czech Korunas, and Japanese Yen.

14. Subsequent Events:

On October 17, 2018, the Board of Directors of the Company declared a $0.115 dividend per share of common stock with respect to the quarter ended September 30, 2018. The dividend will be paid to stockholders of record on November 2, 2018 and will be disbursed on November 16, 2018.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding industry prospects, trends and future results of operations or financial position, made in this Quarterly Report on Form 10-Q are forward-looking. The forward-looking information may include, among other information, statements concerning our outlook for fiscal year 2019, overall volume and pricing trends, cost reduction and acquisition strategies and their anticipated results, and expectations for research and development and capital expenditures. There may also be other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Forward-looking statements reflect management’s expectations and are inherently uncertain.  Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them.  However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements.  Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by the forward-looking statements for a variety of reasons, including without limitation, changes in the global economy or the economy of any locality in which we conduct business; changes in general industry and market conditions or regional growth or declines; loss of business from increased competition; higher raw material costs or raw material shortages; changes in consumer and customer preferences for end products; customer losses; changes in regulatory conditions; changes import/export regulations and tariffs; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; market acceptance of our new products; possible adverse results of pending or future litigation or infringement claims; our ability to successfully integrate and realize expected synergies from acquired businesses; our ability to protect our intellectual property rights; negative impacts of environmental investigations or other governmental investigations and associated litigation; tax assessments by governmental authorities and changes in our effective tax rate; dependence on and relationships with customers and suppliers; and other risks and uncertainties discussed in our Annual Report on Form 10-K for fiscal year ended March 31, 2018. Forward-looking statements should be read in context with, and with the understanding of, the various other disclosures concerning the Company and its business made elsewhere in this quarterly report as well as other public reports filed by the Company with the SEC. You should not place undue reliance on any forward-looking statements as a prediction of actual results or developments.

Any forward-looking statements by the Company are intended to speak only as of the date thereof. We do not intend to update or revise any forward-looking statement contained in this quarterly report to reflect new events or circumstances unless and to the extent required by applicable law. All forward-looking statements contained in this quarterly report constitute “forward-looking statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934 and, to the extent it may be applicable by way of incorporation of statements contained in this quarterly report by reference or otherwise, Section 27A of the United States Securities Act of 1933, each of which establishes a safe-harbor from private actions for forward-looking statements as defined in those statutes.

Critical Accounting Policies and Estimates

“Management’s Discussion and Analysis of Financial Condition and Results of Operations” is based upon our unaudited Consolidated Financial Statements and Notes thereto contained in this Form 10-Q, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported periods. On an ongoing basis, management evaluates its estimates and judgments, including those related to investment securities, revenue recognition, inventories, property and equipment, goodwill, intangible assets, income taxes, and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There can be no assurance that actual results will not differ from those estimates.

We have identified the accounting policies and estimates that are critical to our business operations and understanding the Company’s results of operations. Those policies and estimates can be found in Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements and in “Critical Accounting Policies and Estimates,” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, in Note 1, “Summary of Significant Accounting Policies,” and in Note 3, "Revenue Recognition" in the Notes to Consolidated Financial Statements in this Form 10-Q. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. There were no significant changes to other critical accounting policies, judgments involved in applying those policies, or the methodology used in determining estimates with respect to those related to investment securities, inventories, goodwill, intangible assets, property and equipment, and contingencies, during the three and six month periods ended September 30, 2018 other than those discussed in Note 1, "Basis of Presentation," and Note 3, "Revenue Recognition," in the Notes to Consolidated Financial Statements in this Form 10-Q related to revenue recognition. 

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Business Overview

AVX is a leading worldwide manufacturer, supplier, and reseller of a broad line of electronic components, interconnect, sensing and control devices, and related products. Electronic components and connector, sensing and control products manufactured or resold by AVX are used in many types of end-use products, including those in telecommunications, automotive, transportation, energy harvesting, consumer electronics, military/aerospace, medical, computer, and industrial markets. 

We have manufacturing, sales, and distribution facilities located throughout the world, which are divided into three geographic regions: the Americas, Asia, and Europe. AVX is organized into four product groups with two reportable segments: Electronic Components and Interconnect, Sensing and Control Devices. The Electronic Components segment consists primarily of surface mount and leaded ceramic capacitors, RF thick and thin film components, surface mount and leaded tantalum capacitors, polymer tantalum capacitors, surface mount and leaded film capacitors, ceramic and film power capacitors, super capacitors, EMI filters (bolt in and surface mount), thick and thin film packages of multiple integrated components, varistors, thermistors, inductors, resistive products, and passive and active electronic antennas and antenna systems manufactured by us or purchased from other manufacturers for resale. The Interconnect, Sensing and Control Devices segment consists primarily of automotive sensing and control devices and automotive, telecom, and memory connectors manufactured by, or for, AVX.

Our customers consist of multi-national original equipment manufacturers, or OEMs, independent electronic component distributors, and electronic manufacturing service providers, or EMSs. We market our products through our own direct sales force and independent manufacturers’ representatives, based upon market characteristics and demands. We coordinate our sales, marketing, and manufacturing organizations by strategic customer account and globally by region.

Results of Operations - Three Months Ended September 30, 2017 and 2018

Our net income for the three months ended September 30, 2018 was $72.1 million, or $0.43 per share, compared to net income of $34.8 million, or $0.21 per share, for the three months ended September 30, 2017.

	Three Months Ended
	September 30,
(in thousands, except per share data)	2017		2018
Net sales	$	352,693	$	456,328
Gross profit		77,273		126,476
Operating income		44,786		85,637
Net income		34,818		72,069
Diluted earnings per share	$	0.21	$	0.43

Net sales in the three month period ended September 30, 2018 increased $103.6 million or 29.4%, to $456.3 million compared to $352.7 million in the three month period ended September 30, 2017.  Global market conditions remained healthy, contributing to strong overall demand, primarily in the automotive, medical, and defense and aerospace markets.  Market demand is being driven in part by the power of electronics to enhance the user experience in automotive, wearables, smartphones, drones, solid state drives, personal and industrial robots, virtual reality devices, smart home control and security devices enabled through the internet within a broad category called IoT, or Internet of Things.  The increase in revenue for the three month period ended September 30, 2018 includes sales of $89.4 million in our Interconnect, Sensing and Control Devices segment that are attributable to our acquisition of the AB Electronic sensing and control (“S&C”) business and $31.8 million in our Electronic Components segment attributable to our acquisition of Ethertronics, Inc., ("AVX Antenna"). The increased sales were partially offset by the loss of Kyocera Resale sales in our Electronic Components segment, due to Kyocera's decision to market and sell certain of its products globally using its own sales force rather than have AVX resell such products in various geographies, which were $1.4 million for the three month period ended September 30, 2018 compared to $85.2 million for the three month period ended September 30, 2017. Sales were unfavorably impacted by approximately $8.8 million as a result of currency movement due to the stronger U.S. Dollar as compared to the Japanese Yen and Euro when compared to the same period last year.

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The table below represents product group revenues for the quarters ended September 30, 2017 and 2018.

	Three Months Ended
(in thousands)	September 30,
Sales Revenue	2017		2018
Ceramic Components	$	57,319	$	102,678
Tantalum Components		93,987		105,702
Advanced Components		168,810		123,849
Total Electronic Components		320,116		332,229
Interconnect, Sensing and Control Devices		32,577		124,100
Total Revenue	$	352,693	$	456,328

Electronic Components sales increased $12.1 million, or 3.8% to $332.2 million in the three month period ended September 30, 2018 compared to sales of $320.1 million during the same period last year driven by favorable global macro-economic conditions, increased electronic content in automobiles, increased global defense spending, and technological advances across a broad range of IoT products and smart home devices driving increased sales in all of our Electronic Components groups.  The sales increases in our Advanced Component group were offset by lower Kyocera Resale product sales due to the previously announced decision by Kyocera to market and sell certain of its products globally using Kyocera’s salesforce as discussed above. Ceramic Components sales for the three months ended September 30, 2018 were favorably impacted by sales of $31.8 million related to our acquisition of AVX Antenna in February 2018.

Interconnect, Sensing and Control Devices product sales increased $91.5 million to $124.1 million in the three month period ended September 30, 2018 compared to $32.6 million during the same period last year. This increase is primarily attributable to increased sales of $89.4 million resulting from the addition of the S&C business, in addition to increased demand in the European automotive markets for our interconnect, sensing and control products.

Geographically, compared to the same period last year, sales increased in Americas and Europe, primarily reflecting higher demand resulting from steadily improving global market conditions in the electronics market.  Sales decreased in Asia primarily from the reduction of Kyocera Resale product sales partially offset by higher demand in the electronics market. With the addition of S&C, whose sales are concentrated in Europe, overall sales percentages decreased in the Asian and American regions while sales increased in our European region compared to the same three-month period last year. Sales in the Asian, American, and European markets represented 32%, 28% and 40% of total sales, respectively, for the three month period ended September 30, 2018. This compares to 42%, 29% and 29% of total sales for the Asian, American, and European regions in the same period last year, respectively.

Our sales to independent electronic distributor customers represented 43% of total sales for the three month period ended September 30, 2018, compared to 49% for the three month period ended September 30, 2017. Our S&C sales are primarily direct to OEM customers, which led to the decrease in our distributor sales percentage when compared to the same period last year. Overall, distributor sales activity increased when compared to the same period last year as distributors increased order activity during the past several quarters in response to improved end-market demand and extended product delivery lead times. Our sales to distributor customers involve specific ship-and-debit and stock rotation programs for which sales allowances are recorded as reductions in sales. Such allowance charges were $7.1 million, or 3.7% of gross sales to distributor customers for the three month period ended September 30, 2018, and $7.5 million, or 4.4% of gross sales to distributor customers, for the three month period ended September 30, 2017. Applications under such programs for the three month periods ended September 30, 2017 and 2018 were approximately $7.3 million and $6.7 million, respectively. The decrease in both percentage and dollars compared to the prior year is reflective of the increased demand and improved pricing environment in the marketplace.

Gross profit in the three month period ended September 30, 2018 was $126.5 million, compared to a gross profit of $77.3 million in the three month period ended September 30, 2017. Gross profit as a percentage of sales for the three month period ended September 30, 2018 was 27.7% compared to 21.9% for the three month period ended September 30, 2017. This increase in gross profit in dollars and as a percentage of sales is reflective of our continued focus on the sale of value-added components with better margin opportunities, increased operational efficiencies, and an improved pricing environment in the global marketplace. Costs due to currency movement were favorably impacted by $5.8 million when compared to the same period last year.

Selling, general and administrative expenses in the three month period ended September 30, 2018 were $40.8 million, or 8.9% of net sales, compared to $32.5 million, or 9.2% of net sales, in the three month period ended September 30, 2017. When compared to the same quarter last year, the overall increase in these expenses is primarily due to higher selling expenses resulting from the increase in sales as well as the effects of amortization for intangible assets related to the S&C and AVX Antenna acquisitions.

Income from operations was $85.6 million in the three month period ended September 30, 2018 compared to $44.8 million in the three month period ended September 30, 2017. This increase was a result of the factors described above.

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Other income, net, was $3.3 million for the three month period ended September 30, 2018 compared to $4.3 million for the same three month period last year.

The provision for income tax for the three month period ended September 30, 2018 was $16.9 million compared to $14.2 million for the three month period ended September 30, 2017. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted in the U.S. Among numerous other provisions, the Act reduced the statutory U.S. corporation income tax rate from 35% to 21%, effective January 1, 2018. Our effective tax rate for the quarter ended September 30, 2018 was approximately 20.9%, reflective of the lower income tax rates arising from the Act. The Company will continue to assess all relevant aspects of the Act, including additional guidance under the Act, among other things which may impact our income tax provision.

As a result of the factors discussed above, net income for the three month period ended September 30, 2018 was $72.1 million compared to net income of $34.8 million for the same three month period last year.

Results of Operations – Six Months Ended September 30, 2017 and 2018

Our net income for the six months ended September 30, 2018 was $128.0 million, or $0.76 per share, compared to $66.3 million, or $0.39 per share, for the six months ended September 30, 2017.

	Six Months Ended
	September 30,
(in thousands, except per share data)	2017		2018
Net sales	$	684,047	$	910,444
Gross profit		151,119		234,809
Operating income		87,217		153,655
Net income		66,302		128,032
Diluted earnings per share	$	0.39	$	0.76

Net sales in the six month period ended September 30, 2018 increased $226.4 million, or 33.1%, to $910.4 million compared to $684.0 million in the six month period ended September 30, 2017. The increase in revenue was attributable to higher volumes across most of our markets resulting from steadily improving global market conditions reflecting higher overall demand, primarily in the automotive, medical, and consumer markets driven by the power of electronics to enhance the user experience such as in automotive, wearables, smartphones, drones, solid state drives, personal and industrial robots, virtual reality devices, smart home control, and security devices enabled through the IoT. The increase in revenue for the six month period ended September 30, 2018 includes sales of $187.1 million in our Interconnect, Sensing and Control Devices segment that are attributable to our acquisition of S&C and $63.7 million in our Electronic Components segment attributable to our acquisition of AVX Antenna. The increased sales were partially offset by the loss of Kyocera Resale sales in our Electronic Components segment, due to Kyocera's decision to market and sell certain of its products globally using its own sales force rather than have AVX resell such products in various geographies, which were $18.6 million for the six month period ended September 30, 2018 compared to $161.9 million for the six month period ended September 30, 2017.

The table below represents product group revenues for the six months ended September 30, 2017 and 2018.

	Six Months Ended
(in thousands)	September 30,
Sales Revenue	2017		2018
Ceramic Components	$	108,375	$	181,514
Tantalum Components		182,940		206,734
Advanced Components		330,471		263,193
Total Electronic Components		621,786		651,441
Interconnect, Sensing and Control Devices		62,261		259,004
Total Revenue	$	684,047	$	910,444

Electronic Component sales increased $29.7 million, or 4.8% to $651.4 million in the six month period ended September 30, 2018 compared to sales of $621.8 million during the same six month period last year as a result of steadily improving global market conditions driven by increased electronic content in automobiles, increased global defense spending, and technological advances across a broad range of IoT products and smart home devices driving the increased sales in all of our Electronic Components groups.  The sales increases in our Advanced Component group were offset by lower Kyocera Resale product sales due to the previously announced decision by Kyocera to market and sell certain of its products globally using Kyocera’s salesforce as discussed above.

Total Interconnect, Sensing and Control Devices increased $196.7 million, or 316.0%, to $259.0 million in the six month period ended September 30, 2018 compared to $62.3 million during the same period last year.  This increase is primarily attributable to increased sales of $187.1 million resulting from the addition of the S&C business, in addition to increased demand in the European automotive markets for our interconnect, sensing and control products.

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Geographically, compared to the same period last year, sales increased in all regions, primarily reflecting higher demand resulting from steadily improving global market conditions in the electronics market. With the addition of S&C, whose sales are concentrated in Europe, overall sales percentages decreased in the Asian and American regions while sales increased in our European region compared to the same six-month period last year. Sales in the Asian, American, and European markets represented 32%, 26% and 42% of total sales, respectively, for the six month period ended September 30, 2018. This compares to 41%, 30% and 29% of total sales for the Asian, American, and European regions in the same period last year, respectively.

Our sales to independent electronic distributor customers represented 41.2% of total sales for the six month period ended September 30, 2018, compared to 48.8% for the six month period ended September 30, 2017. Overall, distributor sales activity increased when compared to the same period last year as distributors increased order activity in response to good end market demand during the period. Our sales to distributor customers involve specific ship-and-debit and stock rotation programs for which sales allowances are recorded as reductions in sales. Such allowance charges were $13.5 million, or 3.6% of gross sales to distributor customers, for the six month period ended September 30, 2018, and $14.3 million, or 4.3% of gross sales to distributor customers, for the six month period ended September 30, 2017. Applications under such programs for the six month period ended September 30, 2017 and 2018 were approximately $14.0 million and $12.9 million, respectively.

Gross profit in the six month period ended September 30, 2018 was 25.8% of sales, or $234.8 million, compared to a gross profit of 22.1% of sales, or $151.1 million, in the six month period ended September 30, 2017.  This increase in gross profit in dollars and as a percentage of sales is reflective of our continued focus on the sale of value added components with better margin opportunities, increased operational efficiencies, and an improved pricing environment in the global marketplace. Costs due to currency movement were favorably impacted by $1.4 million when compared to the same period last year.

Selling, general and administrative expenses in the six month period ended September 30, 2018 were $81.2 million, or 8.9% of net sales, compared to $63.9 million, or 9.3% of net sales, in the six month period ended September 30, 2017. The overall increase in these expenses is primarily due to higher selling expenses resulting from the increase in sales when compared to the same period last year.

Income from operations was $153.7 million in the six month period ended September 30, 2018 compared to $87.2 million in the six month period ended September 30, 2017. This increase was a result of the factors described above.

Other income, net was $6.0 million for the six month period ended September 30, 2018 compared to $6.2 million for the same six month period last year. This slight decrease was primarily due to higher foreign exchange losses resulting from currency fluctuations.

The provision for income tax for the six month period ended September 30, 2018 was $31.7 million compared to $27.1 million for the six month period ended September 30, 2017. Our effective tax rate for the six month period ended September 30, 2018 was 20.9% compared to 29.0% for the six months ended September 30, 2017.  The reduction in effective tax rate is primarily due to the enactment of the Act on December 22, 2017, as discussed above.  The Company will continue to assess all relevant aspects of the Act, including additional guidance under the Act, among other things which may impact our income tax provision.

As a result of the factors discussed above, net income for the six month period ended September 30, 2018 was $128.0 million compared to $66.3 million for the same six month period last year.

Outlook

Near-Term:

With unpredictable global geopolitical and economic conditions, it is difficult to quantify expectations for the remainder of fiscal 2019. Near-term results for us will depend on the impact of the overall global geopolitical and economic conditions and their impact on telecommunications, information technology hardware, automotive, consumer electronics, and other electronic markets. Looking ahead, visibility is low and forecasting is a challenge in this uncertain and volatile market. We expect to see lower than normal sales price pressure in the markets we serve due to increasing demand combined with lower product availability. In response to anticipated market conditions, we expect to continue to focus on cost management and product line rationalization to maximize earnings potential. We also continue to focus on process improvements and enhanced production capabilities in conjunction with our focus on the sale of value-added electronic components to support today’s advanced electronic use products. If current global geopolitical and economic conditions worsen, the overall impact on our customers as well as end-user demand for electronic products could have a significant adverse impact on our near-term results.

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Long-Term:

Although there is unpredictability in the near-term market as a result of the current global geopolitical and economic conditions, we continue to see opportunities for long-term growth and profitability improvement due to: (a) a projected increase in the long-term worldwide demand for more sophisticated electronic end use products based on new IoT applications, the increase of electronic content in cars, smart home devices that are connected to the internet and new consumer wireless devices, which require electronic components and interconnect, sensing and control devices such as the ones we sell, (b) cost reductions and improvements in our production processes, (c) opportunities for growth in our Electronic Component and Interconnect, Sensing and Control Devices product lines due to advances in component design and our production capabilities. We have fostered our financial health and the strength of our balance sheet putting us in a good position to react to changes in the marketplace as they occur. We remain confident that our strategies will enable our continued long-term success.

Liquidity and Capital Resources

Our liquidity needs arise primarily from working capital requirements, dividends, capital expenditures, and acquisitions. Historically, we have satisfied our liquidity requirements through funds from operations, investment income from cash and investments in securities, and cash on hand. As of September 30, 2018, we had a current ratio of 5.5 to 1, $844.7 million of cash, cash equivalents, and investments in securities, $2.3 billion of stockholders’ equity, and no borrowings. On December 22, 2017, the Act was enacted in the U.S. Among numerous other provisions, the Act reduced or eliminated certain corporate tax deductions and provided for a transition from a worldwide to a territorial tax system for resident corporations and related corporate group members. As a result of the Act we will have greater flexibility to redirect our global cash resources where they are needed.

Net cash provided by operating activities was $138.5 million in the six month period ended September 30, 2018 compared to $128.4 million of cash provided by operating activities in the six month period ended September 30, 2017.

Purchases of property and equipment were $65.0 million in the six month period ended September 30, 2018 and $38.9 million in the six month period ended September 30, 2017. Expenditures in the current quarter were primarily made in connection with strategic building expansion and equipment purchase activities in our Fountain Inn, South Carolina facilities and our plants in El Salvador, the Czech Republic, Germany and Malaysia. We expect to continue making strategic capital investments in our Electronic Component and Interconnect, Sensing and Control Devices product lines and estimate that we will incur capital expenditures of approximately $100 million in fiscal 2019. The actual amount of capital expenditures will depend upon the outlook for end-market demand and timing of capital projects.

On April 30, 2018, AVX completed its purchase of Kumatec for $12.9 million in cash, net of cash acquired and debt assumed. Kumatec develops, constructs and manufactures automation equipment and manufactures plastic components.

Historically, our operating funding is internally generated through operations, investment income from cash, cash equivalents, and investments in securities and cash on hand. We have assessed the condition of our financial resources and our current business and believe that, based on our financial condition as of September 30, 2018, cash on hand and cash expected to be generated from operating activities and investment income from cash, cash equivalents, and investments in securities will be sufficient to satisfy our anticipated financing needs for working capital, capital expenditures, environmental clean-up costs, expenses related to ongoing litigation, pension plan funding, research, development, and engineering expenses, and dividend payments or stock repurchases to be made during the next twelve months. While changes in customer demand have an impact on our future cash requirements, changes in those requirements are mitigated by our ability to adjust manufacturing capabilities to meet increases or decreases in customer demand. We do not anticipate any significant changes in our ability to generate capital or meet our liquidity needs in the foreseeable future.

From time to time we enter into delivery contracts with selected suppliers for certain precious metals used in our production processes. The delivery contracts represent routine purchase orders for delivery within three months and payment is due upon receipt. As of September 30, 2018, we did not have any significant delivery contracts outstanding.

Commitments and Contingencies

Information related to commitments and contingencies can be found in Note 13, “Commitments and Contingencies,” of the Notes to Consolidated Financial Statements and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, as well as in Note 9, “Commitments and Contingencies,” in the Notes to the Consolidated Financial Statements in this Form 10-Q. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.

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New Accounting Standards

Information related to new Statements of Financial Accounting Standards and Financial Accounting Standards Board Staff Positions that we have recently adopted or are currently reviewing can be found in Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements and in “Critical Accounting Policies and Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, as well as in Note 1, “Summary of Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in this Form 10-Q. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our sales are denominated in various foreign currencies in addition to the U.S. Dollar. Certain manufacturing and operating costs denominated in local currencies are incurred in Europe, Asia, Mexico, and Central and South America. Additionally, purchases of resale products from Kyocera may be denominated in Yen. As a result, fluctuations in currency exchange rates affect our operating results and cash flow. In order to minimize the effect of movements in currency exchange rates, we periodically enter into forward exchange contracts to hedge external and intercompany foreign currency transactions. We do not hold or issue derivative financial instruments for speculative purposes. Accordingly, we have hedging commitments to cover a portion of our exchange risk on purchases, operating expenses, and sales. There have been no material net changes in our exposure to foreign currency exchange rates as reflected in Part II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. See Note 13 of our Notes to Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for further discussion of derivative financial instruments.

ITEM 4. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.  Our disclosure controls and procedures are designed to provide reasonable assurance that the controls and procedures will meet their objectives.  Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

As of the end of the period covered in this report, we carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that as of the end of the period covered by this report, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

In addition, there were no changes in our internal control over financial reporting during the second quarter of fiscal 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II:	OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS

Please refer to Note 9, “Commitments and Contingencies,” in our Notes to Consolidated Financial Statements in Part I, Item 1 to this Form 10-Q for a discussion of our involvement in certain environmental and other pending legal proceedings.

ITEM 1A. RISK FACTORS

Please refer to Part I, Item 1A, Risk Factors, in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018 for information regarding factors that could affect our results of operations, financial condition, and liquidity. There have been no material changes to the risk factors affecting the company as reported in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following table shows our purchases of common stock during the quarter.

					Total number of		Maximum number
					shares purchased		of shares that may
	Total number				as part of publicly		yet be purchased
	of shares		Average price		announced plans		under the plans or
Period	purchased		paid per share		or programs (1)		programs (1)
7/1/18 - 7/31/18		-	$	-		-		3,012,074
8/1/18 - 8/31/18		-		-		-		3,012,074
9/1/18 - 9/30/18		-		-		-		3,012,074
Total		-	$	-		-		3,012,074

(1) On October 17, 2007, the Board of Directors of the Company authorized the repurchase of 5,000,000 shares of our common stock from time to time in the open market. The repurchased shares are held as treasury stock and are available for general corporate purposes. As of September 30, 2018, there were 3,012,074 shares that may yet be repurchased under this program. There is no expiration date for this repurchase program.

ITEM 6.	EXHIBITS
Exhibit 3.1	Amended and Restated Bylaws of the Company, effective October 17, 2018 (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed with the SEC on October 24, 2018).
Exhibit 31.1	Certification of John Sarvis, Chairman, Chief Executive Officer and President, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 6, 2018.
Exhibit 31.2	Certification of Michael Hufnagel, Senior Vice President, Chief Financial Officer and Treasurer, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 6, 2018.
Exhibit 32.1	Certification Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - John Sarvis and Michael Hufnagel.
101	The following financial information from our Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operation, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Cash Flows, and (v) the Notes to Consolidated Financial Statements.

31

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized, and the undersigned also has signed this report in his capacity as the registrant’s Chief Financial Officer.

Date: November 6, 2018

AVX Corporation
By:	/s/ Michael Hufnagel
	Michael Hufnagel
	Senior Vice President, Chief Financial Officer, and Treasurer

32

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, John Sarvis, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AVX Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

	/s/ John Sarvis
Date: November 6, 2018	John Sarvis
	Chairman, Chief Executive Officer and President

A signed original of this written statement required by Section 302 of the Sarbanes-Oxley Act of 2002 has been provided to AVX Corporation and will be retained by AVX Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Michael Hufnagel, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AVX Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

	/s/ Michael Hufnagel
Date: November 6, 2018	Michael Hufnagel
	Senior Vice President, Chief Financial Officer and   Treasurer

A signed original of this written statement required by Section 302 of the Sarbanes-Oxley Act of 2002 has been provided to AVX Corporation and will be retained by AVX Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AVX Corporation (the "Registrant") on Form 10-Q for the period ending September 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, John Sarvis and Michael Hufnagel, Chief Executive Officer and Chief Financial Officer, respectively, of the Registrant, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to our knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the results of operations and financial condition of the Registrant.

Date:   November 6, 2018

  /s/ John Sarvis

  John Sarvis

  Chairman, Chief Executive Officer and

  President

  Senior

  /s/ Michael Hufnagel

  Michael Hufnagel

  Senior Vice President, Chief Financial

  Officer and Treasurer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to AVX Corporation and will be retained by AVX Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Assets
Cash and cash equivalents	$ 487,896	$ 547,415
Short-term investments in securities	356,815	279,787
Accounts receivable - trade, net	262,433	275,259
Accounts receivable - affiliates	631	9,255
Inventories, net	555,761	516,777
Income taxes receivable	14,212	2,566
Prepaid and other	66,717	70,665
Total current assets	1,744,465	1,701,724
Property and equipment, net	437,554	418,286
Goodwill	327,926	316,298
Intangible assets, net	125,750	128,612
Deferred income taxes	68,306	75,720
Other assets	36,654	32,126
Total Assets	2,740,655	2,672,766
Liabilities and Stockholders' Equity
Accounts payable - trade	93,057	89,726
Accounts payable - affiliates	1,226	26,320
Income taxes payable	19,924	8,290
Accrued payroll and benefits	52,205	52,044
Accrued expenses	151,014	118,183
Total current liabilities	317,426	294,563
Income taxes payable	63,589	69,645
Pensions	7,954	10,605
Deferred income taxes	12,224	12,895
Other liabilities	39,709	41,615
Total Liabilities	440,902	429,323
Stockholders' Equity:
Preferred stock, par value $.01 per share: Authorized, 20,000 shares; None issued and outstanding
Common stock, par value $.01 per share: Authorized, 300,000 shares; issued, 176,369 shares; outstanding, 168,434 and 168,795 shares at March 31, 2018 and September 30, 2018, respectively	1,764	1,764
Additional paid-in capital	360,076	360,077
Retained earnings	2,051,628	1,962,467
Accumulated other comprehensive income (loss)	(16,139)	21,257
Treasury stock, at cost: 7,935 and 7,574 shares at March 31, 2018 and September 30, 2018, respectively	(97,576)	(102,122)
Total Stockholders' Equity	2,299,753	2,243,443
Total Liabilities and Stockholders' Equity	$ 2,740,655	$ 2,672,766

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands	Sep. 30, 2018	Mar. 31, 2018
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	20,000	20,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	300,000	300,000
Common stock, shares issued (in shares)	176,369	176,369
Common stock, shares outstanding (in shares)	168,795	168,434
Treasury stock, shares (in shares)	7,574	7,935

XML

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net sales		$ 456,328	$ 352,693	$ 910,444	$ 684,047
Cost of sales		329,852	275,420	675,635	532,928
Gross profit		126,476	77,273	234,809	151,119
Selling, general and administrative expenses		40,839	32,487	81,154	63,902
Profit from operations		85,637	44,786	153,655	87,217
Other income (loss):
Interest income		4,055	5,067	7,538	7,398
Other, net		(760)	(813)	(1,491)	(1,231)
Income before income taxes		88,932	49,040	159,702	93,384
Provision for income taxes		16,863	14,222	31,670	27,082
Net income		$ 72,069	$ 34,818	$ 128,032	$ 66,302
Income per share:
Basic (in dollars per share)		$ 0.43	$ 0.21	$ 0.76	$ 0.39
Diluted (in dollars per share)		0.43	0.21	0.76	0.39
Dividends declared (per share) (in dollars per share)		$ 0.115	$ 0.115	$ 0.23	$ 0.225
Weighted average common shares outstanding:
Basic (in shares)		168,749	168,262	168,621	168,167
Diluted (in shares)	[1]	169,472	168,918	169,217	168,754

[1] Common stock equivalents not included in the computation of diluted earnings per share because the impact would have been anti-dilutive were 0 shares and 14 shares for the three month periods ended September 30, 2017 and 2018, respectively and 94 shares and 14 shares for the six months ended September 30, 2017 and 2018, respectively.

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net income	$ 72,069	$ 34,818	$ 128,032	$ 66,302
Other comprehensive income (loss), net of income taxes
Foreign currency translation adjustment	1,310	12,385	(40,431)	33,447
Foreign currency cash flow hedges adjustment	126	267	189	(421)
Pension liability adjustment	216	68	2,846	(113)
Other comprehensive income (loss), net of income taxes	1,652	12,720	(37,396)	32,913
Comprehensive income	$ 73,721	$ 47,538	$ 90,636	$ 99,215

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating Activities:
Net income	$ 128,032	$ 66,302
Adjustment to reconcile net income to net cash from operating activities:
Depreciation and amortization	41,937	21,241
Stock-based compensation expense	1,848	1,727
Deferred income taxes	(1,455)	746
Gain on disposal of property and equipment	258	1
Equity income from equity-method investments	36
Changes in operating assets and liabilities, excluding acquisitions:
Accounts receivable	17,196	(9,291)
Inventories	(42,626)	15,559
Accounts payable and accrued expenses	8,796	(3,035)
Income taxes payable	(8,004)	(1,373)
Other assets	(19,094)	28,900
Other liabilities	11,537	7,657
Net cash provided by operating activities	138,461	128,434
Investing Activities:
Purchases of property and equipment	(65,016)	(38,916)
Purchase of business, net of cash and debt acquired	(12,317)
Purchases of investment securities	(699,887)	(986,710)
Redemptions of investment securities	621,640	970,348
Other investing activities	(951)	(960)
Net cash used in investing activities	(156,531)	(56,238)
Financing Activities:
Dividends paid	(38,785)	(37,004)
Proceeds from exercise of stock options	3,509	4,121
Purchase of treasury stock	(811)
Principle payments of debt	(1,893)
Payments of tax withholdings for vested restricted stock units	(790)	(498)
Net cash used in financing activities	(38,770)	(33,381)
Effect of exchange rate on cash	(2,679)	1,340
Increase (decrease) in cash and cash equivalents	(59,519)	40,155
Cash and cash equivalents at beginning of period	547,415	578,634
Cash and cash equivalents at end of period	$ 487,896	$ 618,789

XML

Note 1 - Basis of Presentation

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1.

Basis of Presentation:

The consolidated financial statements of AVX Corporation and its subsidiaries (“AVX” or the “Company”) include all accounts of the Company and its subsidiaries. All intercompany transactions and accounts have been eliminated. We have prepared the accompanying financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in the opinion of management, include all adjustments, consisting of normal recurring adjustments and accruals, necessary for the fair statement of the consolidated balance sheets, operating results, comprehensive income, and cash flows for the periods presented. Operating results for the

three

and

six

months ended

September 30, 2018

are

not

necessarily indicative of the results that

may

be expected for the fiscal year ending

March 31, 2019

due to changes in economic conditions and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted in accordance with the rules and regulations of the SEC for interim financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form

10

-K for the fiscal year ended

March 31, 2018.

Summary of Significant Accounting Policies

We have identified the accounting policies and estimates that are critical to our business operations and understanding our results of operations. Those policies and estimates can be found in Note

1,

“Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements and in “Critical Accounting Policies and Estimates,” in “Management's Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form

10

-K for the fiscal year ended

March 31, 2018.

Accordingly, this Quarterly Report on Form

10

-Q should be read in conjunction with our Annual Report on Form

10

-K for the fiscal year ended

March 31, 2018.

During the

three

and

six

month periods ended

September 30, 2018,

there were

no

significant changes to any critical accounting policies or to the methodology used in determining estimates including those related to investment securities, inventories, goodwill, intangible assets, property and equipment, and contingencies other than those discussed below and in Note

3

related to revenue recognition.

Revenue Recognition:

All products are built to specification and tested by AVX or our suppliers for adherence to such specification before shipment to customers. We ship products to customers based upon firm orders. Shipping and handling costs are treated as fulfillment costs and as such are included in cost of sales. The Company applies this accounting policy election consistently to its sales. We recognize revenue as performance obligations are satisfied, which is when the customer takes control of the products as they are shipped to or received by the customer in accordance with the terms of the agreement of sale.

There are general product warranties within our contracts, as the Company warrants that products will function as expected in accordance with the specifications per the contract. These warranties cannot be purchased by the customer separately and accordingly these warranties are

not

considered to be separate performance obligations.

Payment terms for the Company’s sales are generally less than

90

days. Substantially all of the Company’s receivables are collected within

twelve

months of the transfer of products to the customer and the Company expects this to continue going forward. The Company applies the practical expedient within ASC

606

to all of its contracts with payment terms less than or equal to

twelve

months and does

not

recognize a financing component in the determination of the transaction price.

We evaluate gross versus net presentation on revenues from products purchased and resold in accordance with the revenue recognition criteria outlined in ASC

606.

Based on the evaluation of our resale arrangements with Kyocera, including consideration of the primary indicators set forth in ASC

606,

we record revenue related to products purchased and resold on a gross basis.

The Company pays commissions to sales representatives on a per-sale basis and applies the practical expedient available within ASC

340.

Accordingly, commissions are expensed as incurred.

The Company recognizes the estimated variable consideration to be received as revenue and records a related reduction to accounts receivable or as an accrued expense for the consideration

not

expected to be received, based upon its estimate of credits issued or products returned under the sales allowance programs described below. Marketplace volatilities which impact the estimates of variable consideration include, but are

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 our estimates. Accordingly, there can be

no

assurance that actual results will

not

differ from those estimates. We utilize the “portfolio approach” practical expedient in ASC

606,

which allows entities to apply the guidance to a portfolio of contracts with similar characteristics because the effects on the financial statements of this approach would

not

differ materially from applying the guidance to individual contracts. Using the “portfolio approach,” we believe we have an adequate basis to assess the reasonableness and reliability of our estimates for each program.

Returns

Sales revenue and cost of sales reported in the statement of operations are reduced to reflect estimated returns. We record an estimated right of return liability for returns at the time of sale based on historical trends, current pricing and volume information, other market specific information, and input from sales, marketing, and other key management personnel. The liability accrued reflects the variable consideration

not

expected to be received. The estimated value of the return to customer’s inventory is recorded as an asset. These procedures require the exercise of significant judgments. We believe that these procedures enable us to make reliable estimates of future returns. Our actual results have historically approximated our estimates. When the product is returned and verified, the customer is given credit against their accounts receivable.

Distribution Programs

A portion of our sales to independent electronic component distributor customers are subject to various distributor sales programs. We report provisions for distributor allowances in connection with such sales programs as a reduction in revenue and report distributor allowances on the balance sheet as either a reduction in accounts receivable or right-of-return liabilities. For the distribution programs described below, we do

not

track the individual units that are recorded against specific products sold from distributor inventories, which would allow us to directly compare revenue reduction for credits recorded during any period with credits ultimately awarded in respect of products sold during that period. Rather, we believe our use of the “portfolio approach” provides an adequate basis to assess the reasonableness and reliability of our estimates for each program.

Distributor Stock Rotation Program

Stock rotation is a program whereby distributor customers are allowed to return, for credit, qualified inventory, semi-annually, equal to a certain percentage, primarily limited to

5%

of the previous

six

months net sales. We record an estimated right of return liability for stock rotation at the time of sale based on a percentage of distributor sales using historical trends, current pricing and volume information, other market specific information, and input from sales, marketing, and other key management personnel. An asset is recorded for the estimated value of returned product. These procedures require the exercise of significant judgments. We believe that these procedures enable us to make reliable estimates of future returns under the stock rotation program. Our actual results have historically approximated our estimates. When the product is returned and verified, the distributor is given credit against their accounts receivable.

Distributor Ship-from-Stock and Debit Program

Ship-from-Stock and Debit (“ship and debit”) is a program designed to assist distributor customers in meeting competitive prices in the marketplace on sales to their end customers. Ship and debit programs require a request from the distributor for a pricing adjustment for a specific part for a sale to the distributor’s end customer from the distributor’s stock. The pricing adjustment is deemed variable consideration. Ship and debit authorizations

may

cover current and future distributor activity for a specific part for sale to their customer. At the time we record sales to the distributors, we provide an allowance for the variable consideration of the estimated future distributor activity related to such sales since it is probable that such sales to distributors will result in ship and debit activity. We record an estimated sales allowance based on sales during the period, credits issued to distributors, distributor inventory levels, historical trends, market conditions, pricing trends we see in our direct sales activity with original equipment manufacturers and other customers, and input from sales, marketing, and other key management personnel. These procedures require the exercise of significant judgments. We believe that these procedures enable us to make reliable estimates of future credits under the ship and debit program. Our actual results have historically approximated our estimates. At the time the distributor ships the part from stock, the distributor debits us for the authorized pricing adjustment.

Relevant New Accounting Standards

In

2014,

FASB issued ASU

2014

-

09,

 “Revenue from Contracts with Customers.” This guidance modifies how an entity will determine the measurement of revenue and timing of when it is recognized. The Company adopted this guidance effective

April 1, 2018,

using the modified retrospective method, with

no

material impact on our results of operations. Please refer to Note

3

for additional information.

In

February 2016,

FASB issued ASU

2016

-

02,

“Leases.” This guidance changes the requirements for inclusion of certain right-of-use assets and the associated lease liabilities to be included in a statement of financial position. The classification criteria maintains the distinction between finance leases and operating leases. Regarding finance leases, lessees are required to

1

) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position,

2

) recognize interest on the lease liability separate from the amortization of the right-of-use asset in the statement of comprehensive income, and

3

) classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows. Regarding operating leases, lessees are required to

1

) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position,

2

) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis, and

3

) classify all cash payments within operating activities in the statement of cash flows. This guidance is effective for public companies for interim and annual reporting periods beginning after

December 15, 2018.

Early adoption is permitted. Prior to our recent acquisitions, we disclosed that we anticipated

no

material impact from adopting ASU

2016

-

02.

 However, we are in the process of updating our assessment to include the impact of our recently acquired companies.

In

August 2017,

FASB issued ASU

2017

-

12,

“Derivatives and Hedging.” The standard aims to align the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results for cash flow and fair value hedge accounting with risk management activities. The guidance is effective for public companies for annual reporting periods beginning after

December 15, 2018,

and interim periods within those annual periods. Early adoption is permitted in any interim period after issuance. Management is currently evaluating the impact this guidance will have on our consolidated financial statements.

We have reviewed other newly issued accounting pronouncements and concluded that they are either

not

applicable to our business or that

no

material effect is expected on our consolidated financial statements as a result of future adoption.

XML

Note 2 - Acquisitions

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Business Combination Disclosure [Text Block]

2.

Acquisitions:

We used the acquisition method of accounting to record the below transactions in accordance with FASB Accounting Standards Codification Topic

805,

“Business Combinations.” In accordance with the acquisition method, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values with the excess being allocated to goodwill. Factors that contributed to the recognition of goodwill include expected synergies and the trained workforce. The goodwill is

not

deductible for tax purposes.

On

October 2, 2017,

AVX acquired the AB Electronics sensing and control business from TT Electronics, PLC, for

$162,038,

net of cash acquired. Now named Sensing and Control (“S&C”) and consolidated with our Interconnect, Sensing and Control Devices segment (formerly AVX Interconnect) for financial reporting purposes, the acquisition enhances AVX’s position in the automotive business and provides further opportunities for expansion and growth.

The results of operations for S&C since the acquisition date are included in the accompanying consolidated statements of operations.

Assets Acquired and Liabilities Assumed	Allocation of Purchase Price
Accounts receivable	$	61,483
Inventory		42,443
Accounts payable and accrued liabilities		(67,930	)
Other current assets and liabilities, net		8,566
Working capital		44,562
Property and equipment		85,794
Intangible assets		18,168
Other non-current assets and liabilities, net		(13,806	)
Total identified assets and liabilities		134,718
Purchase price		162,038
Goodwill	$	27,320

We recorded approximately

$18,168

of identifiable intangible assets and

$27,320

of goodwill pertaining to this acquisition. The acquired intangible assets relate to the AB Electronics trade name, existing technology and customer relationships which are being amortized over

one

,

eleven

, and

six

years respectively.  In the quarter ended

September 30, 2018,

immaterial measurement period adjustments were made to the allocation of the purchase price. The measurement period is

no

longer open.

The unaudited pro forma combined financial information is provided for the

three

and

six

month periods ended

September 30, 2017

as though S&C had been acquired as of

April 1, 2017.

These pro forma combined results of revenues have been prepared by adjusting our historical results to include the historical results of S&C based on information available. Unaudited pro forma net sales for the

three

and

six

month periods ending

September 30, 2017

would have been

$442,057

and

$871,161,

respectively, with the inclusion of S&C's net sales for such period. We recognized revenue of

$89,364

from S&C in the

three

month period ended

September 30, 2018

and

$187,114

for the

six

month period ended

September 30, 2018.

On

January 31, 2018,

AVX acquired Ethertronics, Inc. for

$127,677

net of cash and debt acquired. The Ethertronics business is now named “AVX Antenna” and is consolidated with our Electronic Components segment. The purchase of Ethertronics expands AVX’s extensive electronic product offering into the antenna technology market and will provide new and exciting growth opportunities for AVX going forward.

Assets Acquired and Liabilities Assumed	Allocation of Purchase Price
Accounts receivable	$	14,419
Accounts payable		(10,140	)
Other current assets and liabilities, net		3,613
Working capital		7,892
Debt		(21,105	)
Property and equipment		13,769
Intangible assets		64,800
Other non-current assets and liabilities, net		(15,498	)
Total identified assets and liabilities		49,858
Purchase price		127,677
Goodwill	$	77,819

The results of operations for AVX Antenna since the acquisition date are included in the accompanying consolidated statements of operations. We recorded approximately

$64,800

of identifiable intangible assets and

$77,819

of goodwill. The acquired intangible assets relate to the Ethertronics trade name, existing technology and customer relationships which are being amortized over

ten

,

ten

, and

thirteen

years, respectively. We recognized revenue of

$31,806

and

$63,747

from AVX Antenna in the

three

and

six

month periods ended

September 30, 2018,

respectively.  Immaterial working capital and other measurement period adjustments were made to the allocation to the purchase price. The measurement period remains open until

February 2019.

On

April 30, 2018,

AVX, through its subsidiary AVX Interconnect Europe GmbH, acquired KUMATEC Sondermaschinenbau & Kunststoffverarbeitung GmbH (“Kumatec”) for consideration of approximately

$12,882,

net of cash acquired and debt assumed. Now named Kumatec and consolidated with our Interconnect, Sensing and Control segment, the purchase of Kumatec provides AVX with additional manufacturing capabilities and new business opportunities. We recorded approximately

$3,189

of identifiable intangible assets and

$9,754

of goodwill.  The acquired intangible assets relate to the Kumatec trade name, existing technology and customer relationships which are being amortized over

six

years. We recognized revenue of

$658

and

$2,755

from Kumatec in the

three

and

six

month periods ended

September 30, 2018.

XML

Note 3 - Revenue Recognition

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

3.

Revenue Recognition:

We adopted ASC

606

effective

April 1, 2018

using the modified retrospective approach. We elected the practical expedient to only apply the standard to contracts that were

not

completed at the effective date. Implementing this standard had

no

impact on our revenue recognition for the uncompleted contracts and accordingly

no

cumulative adjustment was made to the opening balance of retained earnings as of

April 1, 2018.

We identified a change in how we record right-of-return liabilities which impacts Current Assets and Current Liabilities. The change is primarily due to how ASC

606

defines a right-of-return contract liability. The following table compares the amounts reported in the Consolidated Balance Sheet had the previous revenue recognition guidance been in effect:

	Six Months Ended September 30, 2018
			Balances without		Increase Due to
	As reported		ASC 606 Adoption		Adoption
Accounts Receivable - trade, net	$	262,433	$	247,611	$	14,822
Accrued Expenses	$	151,014	$	136,192	$	14,822

Reference Note

5,

"Trade Accounts Receivable and Contract Liabilities," for information on variable consideration and right-of-return liability details.

Reference Note

11,

"Segment and Geographic Information," for disaggregated revenue information.

XML

Note 4 - Earnings Per Share

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

4.

Earnings per Share:

Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the dilutive effect of potential common stock equivalents during the period. Stock options and unvested service-based restricted stock unit (“RSU”) awards make up the common stock equivalents and are computed using the treasury stock method.

The table below represents the basic and diluted earnings per share and sets forth the weighted average number of shares of common stock outstanding and potential common stock equivalents for the

three

and

six

month periods ending

September 30, 2017

and

2018.

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2017		2018		2017		2018
Net income	$	34,818	$	72,069	$	66,302	$	128,032
Computation of Basic EPS:
Weighted Average Shares Outstanding used in Computing Basic EPS		168,262		168,749		168,167		168,621
Basic earnings per share	$	0.21	$	0.43	$	0.39	$	0.76
Computation of Diluted EPS:
Weighted Average Shares Outstanding used in Computing Basic EPS		168,262		168,749		168,167		168,621
Effect of stock awards		656		723		587		596
Weighted Average Shares used in Computing Diluted EPS (1)		168,918		169,472		168,754		169,217
Diluted earnings per share	$	0.21	$	0.43	$	0.39	$	0.76

( 1 ) Common stock equivalents not included in the computation of diluted earnings per share because the impact would have been anti-dilutive were 0 shares and 14 shares for the three month periods ended September 30, 2017 and 2018, respectively and 94 shares and 14 shares for the six months ended September 30, 2017 and 2018, respectively. 

XML

Note 5 - Trade Accounts Receivable and Contract Liabilities

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

5.

Trade Accounts Receivable and Contract Liabilities:

	March 31, 2018		September 30, 2018
Gross Accounts Receivable - trade	$	300,016	$	274,299
Less:
Allowances for doubtful accounts		1,893		1,327
Stock rotation		7,109		-
Ship from stock and debit		9,663		10,201
Sales returns		5,374		-
Discounts		718		338
Total allowances		24,757		11,866
Accounts Receivable - trade, net	$	275,259	$	262,433

Charges related to allowances for doubtful accounts are charged to selling, general and administrative expenses. Charges related to stock rotation, ship from stock and debit, sales returns, and sales discounts are reported as deductions from revenue. Please refer to Note

3,

“Revenue Recognition,” for additional information.

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Allowances for doubtful accounts:
Beginning balance	$	1,447		$	1,294		$	1,285		$	1,893
Charges		-			49			164			81
Applications		(846	)		(16	)		(848	)		(647	)
Ending balance	$	601		$	1,327		$	601		$	1,327

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Stock rotation and ship from stock and debit:
Beginning balance	$	14,893		$	9,869		$	14,853		$	15,989
Charges		7,527			7,072			14,266			13,464
Applications		(7,301	)		(6,740	)		(14,000	)		(12,926	)
Stock rotation reclassified to liability		-			-			-			(6,326	)
Ending balance	$	15,119		$	10,201		$	15,119		$	10,201

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Sales returns and discounts:
Beginning balance	$	5,163		$	589		$	5,623		$	6,875
Charges		2,715			1,974			6,780			2,060
Applications		(2,819	)		(2,219	)		(7,372	)		(2,434	)
Sales returns reclassified to liability		-			-			-			(6,157	)
Translation, acquisition and other		17			(6	)		45			(6	)
Ending balance	$	5,076		$	338		$	5,076		$	338

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Note 6 - Fair Value

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

6.

Fair Value:

Fair Value Hierarchy:

The fair value framework requires the categorization of assets and liabilities into

three

levels based upon the assumptions (inputs) used to value the assets or liabilities. Level

1

provides the most reliable measure of fair value, whereas Level

3

generally requires significant management judgment. The

three

levels are defined as follows:

■ Level 1 : Unadjusted quoted prices in active markets for identical assets and liabilities.

■ Level 2 : Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.

■ Level 3 : Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

During the

three

and

six

month periods ended

September 30, 2018,

there have been

no

transfers of assets or liabilities between levels within the fair value hierarchy.

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2018		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program (1)	$	6,649	$	5,959	$	690	$	-
Foreign currency derivatives (2)		257		-		257		-
Total	$	6,906	$	5,959	$	947	$	-

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2018		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program (1)	$	6,649	$	5,959	$	690	$	-
Foreign currency derivatives (2)		514		-		514		-
Total	$	7,163	$	5,959	$	1,204	$	-

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	September 30, 2018		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program (1)	$	7,342	$	5,576	$	1,766	$	-
Foreign currency derivatives (2)		355		-		355		-
Total	$	7,697	$	5,576	$	2,121	$	-

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	September 30, 2018		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program (1)	$	7,342	$	5,576	$	1,766	$	-
Foreign currency derivatives (2)		207		-		207		-
Total	$	7,549	$	5,576	$	1,973	$	-

(

1

) The market value of the assets held in the trust for the non-qualified deferred compensation program is included as an asset and as a liability as the trust’s assets are both assets of the Company and also a liability as they are available to general creditors in certain circumstances.

(

2

) Foreign currency derivatives in the form of forward contracts are included in prepaid and other assets or accrued expenses in the consolidated balance sheets. Unrealized gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income (loss). Realized gains and losses on derivatives designated as cash flow hedges and gains and losses on derivatives

not

designated as hedges are recorded in other income.

Valuation Techniques:

The following describes valuation techniques used to appropriately value our assets held in the non-qualified deferred compensation plan and derivatives.

Assets held in the non-qualified deferred compensation plan

Assets valued using Level

1

and Level

2

inputs in the table above represent assets from our non-qualified deferred compensation program. The funds in the non-qualified deferred compensation program are valued based on the number of shares in the funds using a price per share traded in an active market.

Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. If the cost of an investment exceeds its fair value, among other factors, we evaluate general market conditions, the duration and extent to which the fair value is less than cost, and whether or

not

we expect to recover the security's entire amortized cost. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established.

Derivatives

We primarily use forward contracts, with maturities generally less than

four

months, designated as cash flow hedges, to protect against the foreign currency exchange rate risks inherent in our forecasted transactions related to purchase commitments and sales, denominated in various currencies. We also use derivatives

not

designated as hedging instruments to hedge foreign currency balance sheet exposures. These derivatives are used to offset currency changes in the fair value of the hedged assets and liabilities. Fair values for all of our derivative financial instruments are valued by adjusting the market spot rate by forward points, based on the date of the contract. The spot rates and forward points used are an average rate from an actively traded market. At

March 31, 2018

and

September 30, 2018,

all of our forward contracts are valued using Level

2

measurements.

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Note 7 - Financial Instruments and Investments in Securities

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

7.

Financial Instruments and Investments in Securities:

At

March 31, 2018

and

September 30, 2018,

we classified investments in debt securities and time deposits as held-to-maturity securities.

Our long-term and short-term investment securities are accounted for as held-to-maturity securities and are carried at amortized cost. We have the ability and intent to hold these investments until maturity. All income generated from the held-to-maturity securities investments are recorded as interest income.

Investments in held-to-maturity securities, recorded at amortized cost, were as follows: 

	March 31, 2018
			Gross		Gross
			Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
Short-term investments:
Commercial Paper	$	10,597	$	-	$	(1	)	$	10,596
Time deposits		269,190		203		-			269,393
	$	279,787	$	203	$	(1	)	$	279,989

	September 30, 2018
			Gross		Gross
			Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Short-term investments:
Commercial paper	$	14,899	$	4	$	-	$	14,903
Time deposits		341,916		352		-		342,268
	$	356,815	$	356	$	-	$	357,171

The amortized cost and estimated fair value of held-to-maturity investments at

September 30, 2018,

by contractual maturity, are shown below. The estimated fair value of these investments are based on valuation inputs that include benchmark yields, reported trades, broker and dealer quotes, issuer spreads,

two

-sided markets, benchmark securities, bids, offers, and reference data, which are Level

2

inputs in the fair value hierarchy. Actual maturities

may

differ from contractual maturities because issuers

may

have the right to call or prepay obligations without call or prepayment penalties.

	Held-to-Maturity
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	356,815	$	357,171
Due after one year through five years		-		-
Total	$	356,815	$	357,171

XML

Note 8 - Inventories

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Inventory Disclosure [Text Block]

8.

Inventories:

	March 31, 2018		September 30, 2018
Finished goods	$	93,467	$	85,169
Work in process		133,556		142,837
Raw materials		289,754		327,755
Total Inventories, net	$	516,777	$	555,761

XML

Note 9 - Commitments and Contingencies

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

9.

Commitments and Contingencies:

We have been identified by the United States Environmental Protection Agency (“EPA”), state governmental agencies or other private parties as a potentially responsible party (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), or equivalent non-U.S., state or local laws, for clean-up and response costs associated with certain sites at which remediation is required with respect to prior contamination. Because CERCLA or such state statutes authorize joint and several liability, the EPA or non-U.S., state or local regulatory authorities could seek to recover all clean-up costs from any

one

of the PRPs at a site despite the involvement of other PRPs. At certain sites, financially responsible PRPs other than AVX also are, or have been, involved in site investigation and clean-up activities. We believe that liability resulting from these sites will be apportioned between AVX and other PRPs.

To resolve our liability at the sites at which we have been named a PRP, we have entered into various administrative orders and consent decrees with federal and state regulatory agencies governing the timing and nature of investigation and remediation. As is customary, the orders and decrees regarding sites where the PRPs are

not

themselves implementing the chosen remedy contain provisions allowing the EPA to reopen the agreement and seek additional amounts from settling PRPs in the event that certain contingencies occur, such as the discovery of significant new information about site conditions.

On

June 3, 2010,

AVX entered into an agreement with the EPA and the City of New Bedford, pursuant to which AVX is required to perform environmental remediation at a site referred to as the “Aerovox Site” (the “Site”), located in New Bedford, Massachusetts. AVX has substantially completed its obligations pursuant to such agreement with the EPA and the City of New Bedford with respect to the satisfaction of AVX’s federal law requirements. The Massachusetts Department of Environmental Protection has jurisdiction over the balance of the environmental remediation at the Site. AVX has submitted its proposed remedy, but until the state has approved such proposal, AVX cannot determine if additional groundwater and soil remediation will be required, if substantial material will have to be disposed of offsite, or if additional remediation techniques will be required, any of which could result in a more extensive and costly plan of remediation. Further, the Site and the remediation

may

be subject to additional scrutiny under other statutory procedures which could also add to the cost of remediation. We have a remaining accrual of

$14,020

at

September 30, 2018,

representing our current estimate of the potential liability related to the remaining performance of environmental remediation actions at the Site and neighboring properties using certain assumptions regarding the plan of remediation. Until all parties agree and remediation is complete, we cannot be certain there will be

no

additional cost relating to the Site.

We had total reserves of approximately

$18,618

and

$18,729

at

March 31, 2018

and

September 30, 2018,

respectively, related to various environmental matters and sites, including those discussed above. These reserves are classified in the Consolidated Balance Sheets as

$3,329

and

$6,040

in accrued expenses at

March 31, 2018

and

September 30, 2018,

respectively, and

$15,289

and

$12,689

in other non-current liabilities at

March 31, 2018

and

September 30, 2018,

respectively. The amounts recorded for identified environmental liabilities are based on estimates. Periodically, we review amounts recorded and adjust them to reflect additional legal and technical information that becomes available. Uncertainties about the status of laws, regulations, regulatory actions, technology, and information related to individual sites make it difficult to develop an estimate of the reasonably possible aggregate environmental remediation exposure. Accordingly, these costs could differ from our current estimates.

On

April 19, 2016,

the Canadian Ministry of the Environment and Climate Change (the “MoE”) issued a Director’s Order naming AVX Corporation, and others, as responsible parties with respect to a location in Hamilton, Ontario that was at

one

time the site of operations of Aerovox Canada, a former subsidiary of Aerovox Corporation, a predecessor of AVX. This Director’s Order follows a draft order issued on

November 4, 2015.

AVX has taken the position that any liability of Aerovox Canada for such site under the laws of Canada cannot be imposed on AVX. At present, it is unclear whether the MoE will seek to enforce such Canadian order against AVX, and whether, in the event it does so, AVX will have any liability under applicable law. AVX intends to contest any such course of action that

may

be taken by the MoE.

In connection with the same location, Union Gas Limited and Coca-Cola Refreshments Canada Company filed suits in the Superior Court of Justice for Ontario, Canada, against AVX Corporation, Aerovox Corp. and Cooper Industries, LLC seeking to recover the costs of remediation of the site and for damages associated with alleged contamination of the site. Those suits were filed on

April 18, 2018,

but

not

served on AVX until

October 11, 2018,

and are in their initial stages. AVX is considering its legal options but intends to vigorously defend these matters. 

We also operate, or did at

one

time, on other sites that

may

have potential future environmental issues as a result of activities at sites during AVX’s long history of manufacturing operations or prior to the start of operations by AVX. Even though we

may

have rights of indemnity for such environmental matters at certain sites, regulatory agencies in those jurisdictions

may

require us to address such issues. Once it becomes probable that we will incur costs in connection with remediation of a site and such costs can be reasonably estimated, we establish reserves or adjust our reserves for our projected share of these costs. A separate account receivable is recorded for any indemnified costs. Our environmental reserves are

not

discounted and do

not

reflect any possible future insurance recoveries, which are

not

expected to be significant, but do reflect a reasonable estimate of cost sharing at multiple party sites or indemnification of our liability by a

third

party.

We are

not

involved in any pending or threatened environmental proceedings that would require curtailment of our operations. We continually expend funds to ensure that our facilities comply with applicable environmental regulations. While we believe that we are in compliance with applicable environmental laws, we cannot accurately predict future developments and do

not

necessarily have knowledge of all past occurrences on sites that we currently occupy. New environmental regulations

may

be enacted and we cannot determine the modifications, if any, in our operations that any such future regulations might require, or the cost of compliance with such regulations. Moreover, the risk of environmental liability and remediation costs is inherent in the nature of our business and, therefore, there can be

no

assurance that material environmental costs, including remediation costs, will

not

arise in the future.

On

April 25, 2013,

AVX was named as a defendant in a patent infringement case filed in the United States District Court for the District of Delaware captioned

Greatbatch, Inc. v. AVX Corporation

. This case alleged that certain AVX products infringe on

one

or more of

six

Greatbatch patents. On

January 26, 2016,

the jury returned a verdict in favor of the plaintiff in the

first

phase of a segmented trial and a mixed verdict in the

second

phase of a segmented trial, and found damages to Greatbatch in the amount of $

37,500,

which was recorded in fiscal

2016.

  That verdict was later vacated by the court on

March 30, 2018. 

The amount of damages will be subject to further legal proceedings including a potential trial on damages, which we expect to occur in fiscal

2019.

AVX is continuing to litigate the case.

On

September 2, 2014,

a subsidiary of AVX, American Technical Ceramics (“ATC”), was named as a defendant in a patent infringement case filed in the United States District Court of the Southern District of California captioned

Presidio Components, Inc. v. American Technical Ceramics Corp.

This case alleged that certain ATC products infringe on a Presidio patent. On

April 18, 2016,

the jury returned a verdict in favor of the plaintiff and found damages to Presidio. On

August 17, 2016,

the court issued a permanent injunction prohibiting ATC from manufacturing or selling the related products after

November 16, 2016.

Subsequently, on

October 21, 2016,

the Federal Circuit Court granted AVX’s request for a stay of the permanent injunction whereby ATC was allowed to continue to sell the disputed product until

March 17, 2017

to anyone who was a customer prior to

June 17, 2016.

Any sales subsequent to

November 16, 2016

pursuant to the stay of the permanent injunction were subject to court mandated intellectual property damages for each product sold. In

December, 2017,

a panel of the Federal Circuit vacated the damage award to Presidio, vacated the injunction, and remanded the case for further proceedings to determine damages limited to “reasonable royalties” and to reconsider the requested injunction in light of its opinion and any additional facts. In

2018,

the District Court set the amount of royalties and re-issued the injunction. An appeal has been filed from both decisions.

As of

September 30, 2018,

we had total reserves of

$73,392

plus accrued interest in accrued expenses with respect to the

two

intellectual property cases discussed above. The amounts recorded are based on estimated outcomes. Amounts recorded are reviewed periodically and adjusted to reflect additional information that becomes available. Accordingly, these costs could differ from our current estimates.

During calendar year

2014,

AVX was named as a co-defendant in a series of cases filed in the United States and in the Canadian provinces of Quebec, Ontario, British Columbia, Saskatchewan and Manitoba alleging violations of United States, state and Canadian antitrust laws and asserting that AVX and numerous other companies were participants in alleged price-fixing in the capacitor market. The cases in the United States were consolidated into the Northern District of California on

October 2, 2014.

However, some plaintiffs have broken off from the United States class action and filed actions on their own, although AVX is

not

named in all of these independent actions. The cases in Canada have

not

been consolidated. These cases are still in progress. AVX believes it has meritorious defenses and intends to vigorously defend the cases.

We are involved in other disputes, warranty, and legal proceedings arising in the normal course of business. While we cannot predict the outcome of these other disputes and proceedings, we believe, based upon a review with legal counsel, that

none

of these other disputes or proceedings will have a material impact on our financial position, results of operations, comprehensive income (loss), or cash flows. However, we cannot be certain of the eventual outcome in these or other matters that

may

arise and their potential impact on our financial position, results of operations, comprehensive income (loss), or cash flows.  

XML

Note 10 - Comprehensive Income (Loss)

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

10.

Comprehensive Income (Loss):

Comprehensive income (loss) represents changes in equity during a period except those resulting from investments by and distributions to shareholders. The specific components include net income, pension liability and other post-retirement benefit adjustments, deferred gains and losses resulting from foreign currency translation adjustments and unrealized gains and losses on qualified foreign currency cash flow hedges.

Other comprehensive income (loss) includes the following components: 

	Three Months Ended
	September 30,
	2017				2018
	Pre-tax		Net of Tax		Pre-tax		Net of Tax
Foreign currency translation adjustment	$	12,385	$	12,385	$	1,310	$	1,310
Foreign currency cash flow hedges adjustment		195		267		171		126
Pension liability adjustment		91		68		272		216
Other comprehensive income (loss)	$	12,671	$	12,720	$	1,753	$	1,652

	Six Months Ended
	September 30,
	2017						2018
	Pre-tax			Net of Tax			Pre-tax			Net of Tax
Foreign currency translation adjustment	$	33,447		$	33,447		$	(40,431	)	$	(40,431	)
Foreign currency cash flow hedges adjustment		(524	)		(421	)		248			189
Pension liability adjustment		(150	)		(113	)		3,579			2,846
Other comprehensive income (loss)	$	32,773		$	32,913		$	(36,604	)	$	(37,396	)

Amounts reclassified out of accumulated other comprehensive income (loss) into net income (loss) include those that pertain to the Company’s pension and postretirement benefit plans and realized gains and losses on derivative instruments designated as cash flow hedges. Please see Note

12

 for additional information related to the amortization of prior service cost and the recognized actuarial losses, which amounts are reclassified from accumulated other comprehensive income (loss) into net income (loss) and are included in selling, general and administrative expenses in the statement of operations during the

three

and

six

month periods ended

September 30, 2017

and

2018.

Please see Note

13

 for additional information related to realized gains and losses on derivative instruments reclassified from accumulated other comprehensive income (loss) into net income (loss) during the

three

and

six

month periods ended

September 30, 2018.

XML

Note 11 - Segment and Geographic Information

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

11.

Segment and Geographic Information:

Our operating segments are based on the types of products from which we generate revenues. We are organized into a product line organization with

four

 product groups and

two

reportable segments. Our

four

product groups are: Ceramic Components; Tantalum Components; Advanced Components; and Interconnect, Sensing and Control Devices (formerly AVX Interconnect). Historically, KED Resale reported as its own product group, but it has now been combined with Advanced Components. The reportable segments are: Electronic Components and Interconnect, Sensing and Control Devices. The product groups of Ceramic, Advanced, and Tantalum Components have been aggregated into the Electronic Components reportable segment in accordance with the SEC’s aggregation criteria and quantitative thresholds. The aggregation criteria consist of similar economic characteristics, products and services, production processes, customer classes, and distribution channels. The Electronic Components segment consists primarily of surface mount and leaded ceramic capacitors, RF thick and thin film components, surface mount and leaded tantalum capacitors, polymer tantalum capacitors, surface mount and leaded film capacitors, ceramic and film power capacitors, super capacitors, EMI filters (bolt in and surface mount), thick and thin film packages of multiple passive integrated components, varistors, thermistors, inductors, resistive products, and passive and active electronic antennas and antenna systems manufactured by us or purchased from other manufacturers for resale. The Interconnect, Sensing and Control Devices segment consists primarily of automotive sensing and control devices and automotive, telecom, and memory connectors manufactured by or for AVX. Sales and operating results from these reportable segments are shown in the tables below. In addition, we have a corporate administration group consisting of finance, legal, environmental, health & safety, and administrative activities.

We evaluate performance of our segments based upon sales and operating profit. There are

no

intersegment revenues. We allocate the costs of shared resources between segments based on each segment’s usage of the shared resources. Cash, accounts receivable, investments in securities, and certain other assets, which are centrally managed, are

not

readily allocable to operating segments.

The tables below present information about reported segments:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
Sales Revenue:	2017		2018		2017		2018
Ceramic Components	$	57,319	$	102,678	$	108,375	$	181,514
Tantalum Components		93,987		105,702		182,940		206,734
Advanced Components		168,810		123,849		330,471		263,193
Total Electronic Components		320,116		332,229		621,786		651,441
Interconnect, Sensing and Control Devices		32,577		124,100		62,261		259,004
Total Revenue	$	352,693	$	456,328	$	684,047	$	910,444

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Operating profit:
Electronic Components	$	56,076		$	104,135		$	110,795		$	190,545
Interconnect, Sensing and Control Devices		3,366			2,283			6,644			(467	)
Corporate activities		(14,656	)		(20,781	)		(30,222	)		(36,423	)
Total	$	44,786		$	85,637		$	87,217		$	153,655

	As of		As of
	March 31, 2018		September 30, 2018
Assets:
Electronic Components	$	632,014	$	678,940
Interconnect, Sensing and Control Devices		241,959		251,738
Cash, A/R, and investments in securities		1,111,716		1,107,775
Goodwill - Electronic Components		278,247		290,870
Goodwill - Interconnect, Sensing and Control Devices		38,051		37,056
Corporate activities		370,779		374,276
Total	$	2,672,766	$	2,740,655

The following geographic data is based upon net sales generated by operations located within particular geographic areas. Substantially all of the sales in the Americas region were generated in the United States.

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2017		2018		2017		2018
Net sales:
Americas	$	102,838	$	126,004	$	202,779	$	240,571
Europe		103,045		184,004		195,565		382,408
Asia		146,810		146,320		285,703		287,465
Total	$	352,693	$	456,328	$	684,047	$	910,444

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Note 12 - Pension Plans

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

12.

Pension Plans:

Net periodic pension cost for our defined benefit plans consisted of the following for the

three

and

six

month periods ended

September 30, 2017

and

2018:

	U.S. Plans						International Plans
	Three Months Ended						Three Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Service cost	$	33		$	-		$	231		$	212
Interest cost		352			327			1,136			1,024
Expected return on plan assets		(450	)		(393	)		(1,450	)		(1,441	)
Recognized actuarial loss		286			221			329			252
Net periodic pension cost	$	221		$	155		$	246		$	47

	U.S. Plans						International Plans
	Six Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Service cost	$	66		$	-		$	459		$	427
Interest cost		704			655			2,244			2,070
Expected return on plan assets		(900	)		(786	)		(2,867	)		(2,912	)
Recognized actuarial loss		571			442			650			508
Net periodic pension cost	$	441		$	311		$	486		$	93

Based on current actuarial computations, during the

six

months ended

September 30, 2018,

we made contributions of

$3,436

to the international plans. We expect to make additional contributions of approximately

$3,270

to the international plans over the remainder of fiscal

2019.

We made a contribution of

$2,289

to the U.S. plans during the

six

months ended

September 30, 2018.

We do

not

expect to make additional contributions to the U.S. plans the remainder of fiscal

2019.

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Note 13 - Derivative Financial Instruments

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

13.

Derivative Financial Instruments:

We are exposed to foreign currency exchange rate fluctuations in the normal course of business. We use derivative instruments (forward contracts) to hedge certain foreign currency exposures as part of our risk management strategy. The objective is to offset gains and losses resulting from these exposures with gains and losses on the forward contracts used to hedge them, thereby reducing volatility of earnings or protecting fair values of assets and liabilities. We do

not

enter into any trading or speculative positions with regard to derivative instruments.

We primarily use forward contracts, with maturities less than

four

months, to protect against the foreign currency exchange rate risks inherent in our forecasted transactions related to purchase commitments and sales, denominated in various currencies. These derivative instruments are designated and qualify as cash flow hedges.

The effectiveness of the cash flow hedges is determined by comparing the cumulative change in the fair value of the hedge contract with the cumulative change in the fair value of the hedged transaction, both of which are based on forward rates. The effective portion of the gain or loss on these cash flow hedges is initially recorded in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Once the hedged transaction is recognized, the gain or loss is recognized in our statement of operations. At

March 31, 2018

and

September 30, 2018,

respectively, the following forward contracts were entered into to hedge against the volatility of foreign currency exchange rates for certain forecasted sales and purchases:

	March 31, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	212	Accrued expenses	$	377

	September 30, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	222	Accrued expenses	$	139

For these derivatives designated as cash flow hedging instruments, during the

three

and

six

month periods ended

September 30, 2018,

a net pre-tax gain of

$715

and a net pre-tax loss of

$118

were recognized in other comprehensive income (loss). In addition, during the

three

and

six

month periods ended

September 30, 2018,  

net pre-tax gains of

$545

and 

$2,590,

respectively, were reclassified from accumulated other comprehensive income (loss) into cost of sales (for hedging purchases), and net pretax gains of

$32

and

$1,403

were reclassified from accumulated other comprehensive income (loss) into sales (for hedging sales) in the accompanying statement of operations.

Derivatives

not

designated as cash flow hedging instruments consist primarily of forwards used to hedge foreign currency balance sheet exposures. These hedging instruments are used to offset foreign currency changes in the fair values of the underlying assets and liabilities. The gains and losses on these foreign currency forward contracts are recognized in other income (loss) in the same period as the re-measurement gains and losses of the related foreign currency denominated assets and liabilities and thus naturally offset these gains and losses. At

March 31, 2018

and

September 30, 2018,

we had the following forward contracts that were entered into to hedge against these exposures.

	March 31, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	45	Accrued expenses	$	137

	September 30, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	133	Accrued expenses	$	68

For these derivatives

not

designated as cash flow hedging instruments during the

three

month and

six

month periods ended

September 30, 2018,

gains of

$66

on hedging contracts were recognized in other income (loss), along with the approximately

$1,245

in exchange gains that were recognized in other income (loss) in the accompanying statement of operations.

At

March 31, 2018

and

September 30, 2018,

we had outstanding foreign exchange contracts with notional amounts totaling

$156,238

and

$175,751,

respectively, denominated primarily in Euros, Czech Korunas, and Japanese Yen.

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Note 14 - Subsequent Events

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Subsequent Events [Text Block]

14.

Subsequent Events:

On

October 17, 2018

,

the Board of Directors of the Company declared a

$0.115

dividend per share of common stock with respect to the quarter ended

September 30, 2018.

The dividend will be paid to stockholders of record on

November 2, 2018

and will be disbursed on

November 16, 2018

.

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Significant Accounting Policies (Policies)

6 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Use of Estimates, Policy [Policy Text Block]

Summary of Significant Accounting Policies

We have identified the accounting policies and estimates that are critical to our business operations and understanding our results of operations. Those policies and estimates can be found in Note

1,

“Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements and in “Critical Accounting Policies and Estimates,” in “Management's Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form

10

-K for the fiscal year ended

March 31, 2018.

Accordingly, this Quarterly Report on Form

10

-Q should be read in conjunction with our Annual Report on Form

10

-K for the fiscal year ended

March 31, 2018.

During the

three

and

six

month periods ended

September 30, 2018,

there were

no

significant changes to any critical accounting policies or to the methodology used in determining estimates including those related to investment securities, inventories, goodwill, intangible assets, property and equipment, and contingencies other than those discussed below and in Note

3

related to revenue recognition.

Revenue Recognition and Accounts Receivable, Policy [Policy Text Block]

Revenue Recognition:

All products are built to specification and tested by AVX or our suppliers for adherence to such specification before shipment to customers. We ship products to customers based upon firm orders. Shipping and handling costs are treated as fulfillment costs and as such are included in cost of sales. The Company applies this accounting policy election consistently to its sales. We recognize revenue as performance obligations are satisfied, which is when the customer takes control of the products as they are shipped to or received by the customer in accordance with the terms of the agreement of sale.

There are general product warranties within our contracts, as the Company warrants that products will function as expected in accordance with the specifications per the contract. These warranties cannot be purchased by the customer separately and accordingly these warranties are

not

considered to be separate performance obligations.

Payment terms for the Company’s sales are generally less than

90

days. Substantially all of the Company’s receivables are collected within

twelve

months of the transfer of products to the customer and the Company expects this to continue going forward. The Company applies the practical expedient within ASC

606

to all of its contracts with payment terms less than or equal to

twelve

months and does

not

recognize a financing component in the determination of the transaction price.

We evaluate gross versus net presentation on revenues from products purchased and resold in accordance with the revenue recognition criteria outlined in ASC

606.

Based on the evaluation of our resale arrangements with Kyocera, including consideration of the primary indicators set forth in ASC

606,

we record revenue related to products purchased and resold on a gross basis.

The Company pays commissions to sales representatives on a per-sale basis and applies the practical expedient available within ASC

340.

Accordingly, commissions are expensed as incurred.

The Company recognizes the estimated variable consideration to be received as revenue and records a related reduction to accounts receivable or as an accrued expense for the consideration

not

expected to be received, based upon its estimate of credits issued or products returned under the sales allowance programs described below. Marketplace volatilities which impact the estimates of variable consideration include, but are

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 our estimates. Accordingly, there can be

no

assurance that actual results will

not

differ from those estimates. We utilize the “portfolio approach” practical expedient in ASC

606,

which allows entities to apply the guidance to a portfolio of contracts with similar characteristics because the effects on the financial statements of this approach would

not

differ materially from applying the guidance to individual contracts. Using the “portfolio approach,” we believe we have an adequate basis to assess the reasonableness and reliability of our estimates for each program.

Returns

Sales revenue and cost of sales reported in the statement of operations are reduced to reflect estimated returns. We record an estimated right of return liability for returns at the time of sale based on historical trends, current pricing and volume information, other market specific information, and input from sales, marketing, and other key management personnel. The liability accrued reflects the variable consideration

not

expected to be received. The estimated value of the return to customer’s inventory is recorded as an asset. These procedures require the exercise of significant judgments. We believe that these procedures enable us to make reliable estimates of future returns. Our actual results have historically approximated our estimates. When the product is returned and verified, the customer is given credit against their accounts receivable.

Distribution Programs

A portion of our sales to independent electronic component distributor customers are subject to various distributor sales programs. We report provisions for distributor allowances in connection with such sales programs as a reduction in revenue and report distributor allowances on the balance sheet as either a reduction in accounts receivable or right-of-return liabilities. For the distribution programs described below, we do

not

track the individual units that are recorded against specific products sold from distributor inventories, which would allow us to directly compare revenue reduction for credits recorded during any period with credits ultimately awarded in respect of products sold during that period. Rather, we believe our use of the “portfolio approach” provides an adequate basis to assess the reasonableness and reliability of our estimates for each program.

Distributor Stock Rotation Program

Stock rotation is a program whereby distributor customers are allowed to return, for credit, qualified inventory, semi-annually, equal to a certain percentage, primarily limited to

5%

of the previous

six

months net sales. We record an estimated right of return liability for stock rotation at the time of sale based on a percentage of distributor sales using historical trends, current pricing and volume information, other market specific information, and input from sales, marketing, and other key management personnel. An asset is recorded for the estimated value of returned product. These procedures require the exercise of significant judgments. We believe that these procedures enable us to make reliable estimates of future returns under the stock rotation program. Our actual results have historically approximated our estimates. When the product is returned and verified, the distributor is given credit against their accounts receivable.

Distributor Ship-from-Stock and Debit Program

Ship-from-Stock and Debit (“ship and debit”) is a program designed to assist distributor customers in meeting competitive prices in the marketplace on sales to their end customers. Ship and debit programs require a request from the distributor for a pricing adjustment for a specific part for a sale to the distributor’s end customer from the distributor’s stock. The pricing adjustment is deemed variable consideration. Ship and debit authorizations

may

cover current and future distributor activity for a specific part for sale to their customer. At the time we record sales to the distributors, we provide an allowance for the variable consideration of the estimated future distributor activity related to such sales since it is probable that such sales to distributors will result in ship and debit activity. We record an estimated sales allowance based on sales during the period, credits issued to distributors, distributor inventory levels, historical trends, market conditions, pricing trends we see in our direct sales activity with original equipment manufacturers and other customers, and input from sales, marketing, and other key management personnel. These procedures require the exercise of significant judgments. We believe that these procedures enable us to make reliable estimates of future credits under the ship and debit program. Our actual results have historically approximated our estimates. At the time the distributor ships the part from stock, the distributor debits us for the authorized pricing adjustment.

New Accounting Pronouncements, Policy [Policy Text Block]

Relevant New Accounting Standards

In

2014,

FASB issued ASU

2014

-

09,

 “Revenue from Contracts with Customers.” This guidance modifies how an entity will determine the measurement of revenue and timing of when it is recognized. The Company adopted this guidance effective

April 1, 2018,

using the modified retrospective method, with

no

material impact on our results of operations. Please refer to Note

3

for additional information.

In

February 2016,

FASB issued ASU

2016

-

02,

“Leases.” This guidance changes the requirements for inclusion of certain right-of-use assets and the associated lease liabilities to be included in a statement of financial position. The classification criteria maintains the distinction between finance leases and operating leases. Regarding finance leases, lessees are required to

1

) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position,

2

) recognize interest on the lease liability separate from the amortization of the right-of-use asset in the statement of comprehensive income, and

3

) classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows. Regarding operating leases, lessees are required to

1

) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position,

2

) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis, and

3

) classify all cash payments within operating activities in the statement of cash flows. This guidance is effective for public companies for interim and annual reporting periods beginning after

December 15, 2018.

Early adoption is permitted. Prior to our recent acquisitions, we disclosed that we anticipated

no

material impact from adopting ASU

2016

-

02.

 However, we are in the process of updating our assessment to include the impact of our recently acquired companies.

In

August 2017,

FASB issued ASU

2017

-

12,

“Derivatives and Hedging.” The standard aims to align the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results for cash flow and fair value hedge accounting with risk management activities. The guidance is effective for public companies for annual reporting periods beginning after

December 15, 2018,

and interim periods within those annual periods. Early adoption is permitted in any interim period after issuance. Management is currently evaluating the impact this guidance will have on our consolidated financial statements.

We have reviewed other newly issued accounting pronouncements and concluded that they are either

not

applicable to our business or that

no

material effect is expected on our consolidated financial statements as a result of future adoption.

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Note 2 - Acquisitions (Tables)

6 Months Ended

Sep. 30, 2018

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Assets Acquired and Liabilities Assumed	Allocation of Purchase Price
Accounts receivable	$	61,483
Inventory		42,443
Accounts payable and accrued liabilities		(67,930	)
Other current assets and liabilities, net		8,566
Working capital		44,562
Property and equipment		85,794
Intangible assets		18,168
Other non-current assets and liabilities, net		(13,806	)
Total identified assets and liabilities		134,718
Purchase price		162,038
Goodwill	$	27,320

Assets Acquired and Liabilities Assumed	Allocation of Purchase Price
Accounts receivable	$	14,419
Accounts payable		(10,140	)
Other current assets and liabilities, net		3,613
Working capital		7,892
Debt		(21,105	)
Property and equipment		13,769
Intangible assets		64,800
Other non-current assets and liabilities, net		(15,498	)
Total identified assets and liabilities		49,858
Purchase price		127,677
Goodwill	$	77,819

XML

Note 3 - Revenue Recognition (Tables)

6 Months Ended

Sep. 30, 2018

Notes Tables

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

	Six Months Ended September 30, 2018
			Balances without		Increase Due to
	As reported		ASC 606 Adoption		Adoption
Accounts Receivable - trade, net	$	262,433	$	247,611	$	14,822
Accrued Expenses	$	151,014	$	136,192	$	14,822

XML

Note 4 - Earnings Per Share (Tables)

6 Months Ended

Sep. 30, 2018

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2017		2018		2017		2018
Net income	$	34,818	$	72,069	$	66,302	$	128,032
Computation of Basic EPS:
Weighted Average Shares Outstanding used in Computing Basic EPS		168,262		168,749		168,167		168,621
Basic earnings per share	$	0.21	$	0.43	$	0.39	$	0.76
Computation of Diluted EPS:
Weighted Average Shares Outstanding used in Computing Basic EPS		168,262		168,749		168,167		168,621
Effect of stock awards		656		723		587		596
Weighted Average Shares used in Computing Diluted EPS (1)		168,918		169,472		168,754		169,217
Diluted earnings per share	$	0.21	$	0.43	$	0.39	$	0.76

XML

Note 5 - Trade Accounts Receivable and Contract Liabilities (Tables)

6 Months Ended

Sep. 30, 2018

Notes Tables

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	March 31, 2018		September 30, 2018
Gross Accounts Receivable - trade	$	300,016	$	274,299
Less:
Allowances for doubtful accounts		1,893		1,327
Stock rotation		7,109		-
Ship from stock and debit		9,663		10,201
Sales returns		5,374		-
Discounts		718		338
Total allowances		24,757		11,866
Accounts Receivable - trade, net	$	275,259	$	262,433

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Allowances for doubtful accounts:
Beginning balance	$	1,447		$	1,294		$	1,285		$	1,893
Charges		-			49			164			81
Applications		(846	)		(16	)		(848	)		(647	)
Ending balance	$	601		$	1,327		$	601		$	1,327

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Stock rotation and ship from stock and debit:
Beginning balance	$	14,893		$	9,869		$	14,853		$	15,989
Charges		7,527			7,072			14,266			13,464
Applications		(7,301	)		(6,740	)		(14,000	)		(12,926	)
Stock rotation reclassified to liability		-			-			-			(6,326	)
Ending balance	$	15,119		$	10,201		$	15,119		$	10,201

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Sales returns and discounts:
Beginning balance	$	5,163		$	589		$	5,623		$	6,875
Charges		2,715			1,974			6,780			2,060
Applications		(2,819	)		(2,219	)		(7,372	)		(2,434	)
Sales returns reclassified to liability		-			-			-			(6,157	)
Translation, acquisition and other		17			(6	)		45			(6	)
Ending balance	$	5,076		$	338		$	5,076		$	338

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Note 6 - Fair Value (Tables)

6 Months Ended

Sep. 30, 2018

Notes Tables

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2018		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program (1)	$	6,649	$	5,959	$	690	$	-
Foreign currency derivatives (2)		257		-		257		-
Total	$	6,906	$	5,959	$	947	$	-

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2018		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program (1)	$	6,649	$	5,959	$	690	$	-
Foreign currency derivatives (2)		514		-		514		-
Total	$	7,163	$	5,959	$	1,204	$	-

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	September 30, 2018		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program (1)	$	7,342	$	5,576	$	1,766	$	-
Foreign currency derivatives (2)		355		-		355		-
Total	$	7,697	$	5,576	$	2,121	$	-

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	September 30, 2018		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program (1)	$	7,342	$	5,576	$	1,766	$	-
Foreign currency derivatives (2)		207		-		207		-
Total	$	7,549	$	5,576	$	1,973	$	-

XML

Note 7 - Financial Instruments and Investments in Securities (Tables)

6 Months Ended

Sep. 30, 2018

Notes Tables

Debt Securities, Held-to-maturity [Table Text Block]

	March 31, 2018
			Gross		Gross
			Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
Short-term investments:
Commercial Paper	$	10,597	$	-	$	(1	)	$	10,596
Time deposits		269,190		203		-			269,393
	$	279,787	$	203	$	(1	)	$	279,989

	September 30, 2018
			Gross		Gross
			Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Short-term investments:
Commercial paper	$	14,899	$	4	$	-	$	14,903
Time deposits		341,916		352		-		342,268
	$	356,815	$	356	$	-	$	357,171

Investments Classified by Contractual Maturity Date [Table Text Block]

	Held-to-Maturity
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	356,815	$	357,171
Due after one year through five years		-		-
Total	$	356,815	$	357,171

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Note 8 - Inventories (Tables)

6 Months Ended

Sep. 30, 2018

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	March 31, 2018		September 30, 2018
Finished goods	$	93,467	$	85,169
Work in process		133,556		142,837
Raw materials		289,754		327,755
Total Inventories, net	$	516,777	$	555,761

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Note 10 - Comprehensive Income (Loss) (Tables)

6 Months Ended

Sep. 30, 2018

Notes Tables

Comprehensive Income (Loss) [Table Text Block]

	Three Months Ended
	September 30,
	2017				2018
	Pre-tax		Net of Tax		Pre-tax		Net of Tax
Foreign currency translation adjustment	$	12,385	$	12,385	$	1,310	$	1,310
Foreign currency cash flow hedges adjustment		195		267		171		126
Pension liability adjustment		91		68		272		216
Other comprehensive income (loss)	$	12,671	$	12,720	$	1,753	$	1,652

	Six Months Ended
	September 30,
	2017						2018
	Pre-tax			Net of Tax			Pre-tax			Net of Tax
Foreign currency translation adjustment	$	33,447		$	33,447		$	(40,431	)	$	(40,431	)
Foreign currency cash flow hedges adjustment		(524	)		(421	)		248			189
Pension liability adjustment		(150	)		(113	)		3,579			2,846
Other comprehensive income (loss)	$	32,773		$	32,913		$	(36,604	)	$	(37,396	)

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Note 11 - Segment and Geographic Information (Tables)

6 Months Ended

Sep. 30, 2018

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended				Six Months Ended
	September 30,				September 30,
Sales Revenue:	2017		2018		2017		2018
Ceramic Components	$	57,319	$	102,678	$	108,375	$	181,514
Tantalum Components		93,987		105,702		182,940		206,734
Advanced Components		168,810		123,849		330,471		263,193
Total Electronic Components		320,116		332,229		621,786		651,441
Interconnect, Sensing and Control Devices		32,577		124,100		62,261		259,004
Total Revenue	$	352,693	$	456,328	$	684,047	$	910,444

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Operating profit:
Electronic Components	$	56,076		$	104,135		$	110,795		$	190,545
Interconnect, Sensing and Control Devices		3,366			2,283			6,644			(467	)
Corporate activities		(14,656	)		(20,781	)		(30,222	)		(36,423	)
Total	$	44,786		$	85,637		$	87,217		$	153,655

	As of		As of
	March 31, 2018		September 30, 2018
Assets:
Electronic Components	$	632,014	$	678,940
Interconnect, Sensing and Control Devices		241,959		251,738
Cash, A/R, and investments in securities		1,111,716		1,107,775
Goodwill - Electronic Components		278,247		290,870
Goodwill - Interconnect, Sensing and Control Devices		38,051		37,056
Corporate activities		370,779		374,276
Total	$	2,672,766	$	2,740,655

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2017		2018		2017		2018
Net sales:
Americas	$	102,838	$	126,004	$	202,779	$	240,571
Europe		103,045		184,004		195,565		382,408
Asia		146,810		146,320		285,703		287,465
Total	$	352,693	$	456,328	$	684,047	$	910,444

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Note 12 - Pension Plans (Tables)

6 Months Ended

Sep. 30, 2018

Notes Tables

Schedule of Net Benefit Costs [Table Text Block]

	U.S. Plans						International Plans
	Three Months Ended						Three Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Service cost	$	33		$	-		$	231		$	212
Interest cost		352			327			1,136			1,024
Expected return on plan assets		(450	)		(393	)		(1,450	)		(1,441	)
Recognized actuarial loss		286			221			329			252
Net periodic pension cost	$	221		$	155		$	246		$	47

	U.S. Plans						International Plans
	Six Months Ended						Six Months Ended
	September 30,						September 30,
	2017			2018			2017			2018
Service cost	$	66		$	-		$	459		$	427
Interest cost		704			655			2,244			2,070
Expected return on plan assets		(900	)		(786	)		(2,867	)		(2,912	)
Recognized actuarial loss		571			442			650			508
Net periodic pension cost	$	441		$	311		$	486		$	93

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Note 13 - Derivative Financial Instruments (Tables)

6 Months Ended

Sep. 30, 2018

Notes Tables

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

	March 31, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	212	Accrued expenses	$	377

	September 30, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	222	Accrued expenses	$	139

	March 31, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	45	Accrued expenses	$	137

	September 30, 2018
	Fair Value of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
	Caption	Value		Caption	Value
Foreign exchange contracts	Prepaid and other	$	133	Accrued expenses	$	68

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Note 1 - Basis of Presentation (Details Textual)	6 Months Ended
	Sep. 30, 2018
Stock Rotation Program, Percentage of Previous Six Months Net Sales	5.00%

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Note 2 - Acquisitions (Details Textual) - USD ($) $ in Thousands				3 Months Ended		6 Months Ended
	Apr. 30, 2018	Jan. 31, 2018	Oct. 02, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018
Payments to Acquire Businesses, Net of Cash Acquired, Total						$ 12,317
Goodwill, Ending Balance				$ 327,926		327,926		$ 316,298
Business Acquisition, Pro Forma Revenue					$ 442,057		871,161
Revenue from Contract with Customer, Including Assessed Tax				456,328	$ 352,693	910,444	$ 684,047
AB Electronics Sensing and Control Business [Member]
Payments to Acquire Businesses, Net of Cash Acquired, Total			$ 162,038
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total			18,168
Goodwill, Ending Balance			$ 27,320
Revenue from Contract with Customer, Including Assessed Tax				89,364		187,114
AB Electronics Sensing and Control Business [Member] | Customer Relationships [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			6 years
AB Electronics Sensing and Control Business [Member] | Trade Names [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			1 year
AB Electronics Sensing and Control Business [Member] | Existing Technology [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			11 years
AVX Antenna [Member]
Payments to Acquire Businesses, Net of Cash Acquired, Total		$ 127,677
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total		64,800
Goodwill, Ending Balance		$ 77,819
Revenue from Contract with Customer, Including Assessed Tax				31,806		63,747
AVX Antenna [Member] | Customer Relationships [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		13 years
AVX Antenna [Member] | Trade Names [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		10 years
AVX Antenna [Member] | Existing Technology [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		10 years
Kumatec [Member]
Payments to Acquire Businesses, Net of Cash Acquired, Total	$ 12,882
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total	3,189
Goodwill, Ending Balance	$ 9,754
Revenue from Contract with Customer, Including Assessed Tax				$ 658		$ 2,755
Kumatec [Member] | Customer Relationships [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years
Kumatec [Member] | Trade Names [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years
Kumatec [Member] | Existing Technology [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 years

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Note 2 - Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Oct. 02, 2017	Sep. 30, 2018	Mar. 31, 2018
Goodwill			$ 327,926	$ 316,298
AB Electronics Sensing and Control Business [Member]
Accounts receivable		$ 61,483
Inventory		42,443
Accounts payable and accrued liabilities		(67,930)
Other current assets and liabilities, net		8,566
Working capital		44,562
Property and equipment		85,794
Intangible assets		18,168
Other non-current assets and liabilities, net		(13,806)
Total identified assets and liabilities		134,718
Purchase price		162,038
Goodwill		$ 27,320
AVX Antenna [Member]
Accounts receivable	$ 14,419
Other current assets and liabilities, net	3,613
Working capital	7,892
Property and equipment	13,769
Intangible assets	64,800
Other non-current assets and liabilities, net	(15,498)
Total identified assets and liabilities	49,858
Purchase price	127,677
Goodwill	77,819
Accounts payable	(10,140)
Debt	$ (21,105)

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Note 3 - Revenue Recognition - Summary of Consolidated Balance Sheet Under Revenue Recognition Guidance (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Accounts receivable - trade, net	$ 262,433	$ 275,259
Accrued expenses	151,014	$ 118,183
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Accounts receivable - trade, net	247,611
Accrued expenses	136,192
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Accounts receivable - trade, net	14,822
Accrued expenses	$ 14,822

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Note 4 - Earnings Per Share (Details Textual) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Common Stock Equivalents [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	14	0	14	94

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Note 4 - Earnings Per Share - Basic and Diluted Weighted Average Number of Shares of Common Stock and Potential Common Stock Equivalents (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net income		$ 72,069	$ 34,818	$ 128,032	$ 66,302
Computation of Basic EPS:
Weighted Average Shares Outstanding used in Computing Basic EPS (in shares)		168,749	168,262	168,621	168,167
Basic earnings per share (in dollars per share)		$ 0.43	$ 0.21	$ 0.76	$ 0.39
Computation of Diluted EPS:
Weighted Average Shares Outstanding used in Computing Basic EPS (in shares)		168,749	168,262	168,621	168,167
Effect of stock awards (in shares)		723	656	596	587
Weighted Average Shares used in Computing Diluted EPS (1) (in shares)	[1]	169,472	168,918	169,217	168,754
Diluted earnings per share (in dollars per share)		$ 0.43	$ 0.21	$ 0.76	$ 0.39

[1] Common stock equivalents not included in the computation of diluted earnings per share because the impact would have been anti-dilutive were 0 shares and 14 shares for the three month periods ended September 30, 2017 and 2018, respectively and 94 shares and 14 shares for the six months ended September 30, 2017 and 2018, respectively.

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Note 5 - Trade Accounts Receivable and Contract Liabilities - Schedule of Trade Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017
Gross Accounts Receivable - trade	$ 274,299		$ 300,016
Allowances	11,866		24,757
Accounts Receivable - trade, net	262,433		275,259
Allowances for Doubtful Accounts [Member]
Allowances	1,327	$ 1,294	1,893	$ 601	$ 1,447	$ 1,285
Allowance for Stock Rotation [Member]
Allowances			7,109
Allowance for Ship from Stock and Debit [Member]
Allowances	10,201		9,663
Allowance for Sales Returns [Member]
Allowances			5,374
Allowance for Discounts [Member]
Allowances	$ 338		$ 718

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Note 5 - Trade Accounts Receivable and Contract Liabilities - Charges Related to Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Beginning balance			$ 24,757
Ending balance	$ 11,866		11,866
Allowances for Doubtful Accounts [Member]
Beginning balance	1,294	$ 1,447	1,893	$ 1,285
Charges	49		81	164
Applications	(16)	(846)	(647)	(848)
Ending balance	1,327	601	1,327	601
Allowance for Stock Rotation and Ship from Stock and Debit [Member]
Beginning balance	9,869	14,893	15,989	14,853
Charges	7,072	7,527	13,464	14,266
Applications	(6,740)	(7,301)	(12,926)	(14,000)
Stock rotation reclassified to liability			(6,326)
Ending balance	10,201	15,119	10,201	15,119
Allowance and Reserve for Sales Returns and Discounts [Member]
Beginning balance	589	5,163	6,875	5,623
Charges	1,974	2,715	2,060	6,780
Applications	(2,219)	(2,819)	(2,434)	(7,372)
Stock rotation reclassified to liability			(6,157)
Translation, acquisition and other	(6)	17	(6)	45
Ending balance	$ 338	$ 5,076	$ 338	$ 5,076

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Note 6 - Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands		Sep. 30, 2018	Mar. 31, 2018
Assets held in the non-qualified deferred compensation program	[1]	$ 7,342	$ 6,649
Foreign currency derivatives	[2]	355	257
Assets measured at fair value, Total		7,697	6,906
Obligation related to assets held in the non-qualified deferred compensation program	[1]	7,342	6,649
Foreign currency derivatives liabilities	[2]	207	514
Liabilities measured at fair value, Total		7,549	7,163
Fair Value, Inputs, Level 1 [Member]
Assets held in the non-qualified deferred compensation program	[1]	5,576	5,959
Foreign currency derivatives	[2]
Assets measured at fair value, Total		5,576	5,959
Obligation related to assets held in the non-qualified deferred compensation program	[1]	5,576	5,959
Foreign currency derivatives liabilities	[2]
Liabilities measured at fair value, Total		5,576	5,959
Fair Value, Inputs, Level 2 [Member]
Assets held in the non-qualified deferred compensation program	[1]	1,766	690
Foreign currency derivatives	[2]	355	257
Assets measured at fair value, Total		2,121	947
Obligation related to assets held in the non-qualified deferred compensation program	[1]	1,766	690
Foreign currency derivatives liabilities	[2]	207	514
Liabilities measured at fair value, Total		1,973	1,204
Fair Value, Inputs, Level 3 [Member]
Assets held in the non-qualified deferred compensation program	[1]
Foreign currency derivatives	[2]
Assets measured at fair value, Total
Obligation related to assets held in the non-qualified deferred compensation program	[1]
Foreign currency derivatives liabilities	[2]
Liabilities measured at fair value, Total

[1] The market value of the assets held in the trust for the non-qualified deferred compensation program is included as an asset and as a liability as the trust's assets are both assets of the Company and also a liability as they are available to general creditors in certain circumstances.

[2] Foreign currency derivatives in the form of forward contracts are included in prepaid and other assets or accrued expenses in the consolidated balance sheets. Unrealized gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income (loss). Realized gains and losses on derivatives designated as cash flow hedges and gains and losses on derivatives not designated as hedges are recorded in other income.

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Note 7 - Financial Instruments and Investments in Securities - Investments in Held-to-maturity Securities, Recorded at Amortized Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Cost	$ 356,815
Estimated Fair Value	357,171
Short-term Investments [Member]
Cost	356,815	$ 279,787
Gross Unrealized Gains	356	203
Gross Unrealized Losses		(1)
Estimated Fair Value	357,171	279,989
Short-term Investments [Member] | Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Cost	14,899	10,597
Gross Unrealized Gains	4
Gross Unrealized Losses		(1)
Estimated Fair Value	14,903	10,596
Short-term Investments [Member] | Time Deposits [Member]
Cost	341,916	269,190
Gross Unrealized Gains	352	203
Gross Unrealized Losses
Estimated Fair Value	$ 342,268	$ 269,393

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Note 7 - Financial Instruments and Investments in Securities - Contractual Maturity (Details) $ in Thousands	Sep. 30, 2018 USD ($)
Due in one year or less, amortized cost	$ 356,815
Due in one year or less, estimated fair value	357,171
Due after one year through five years, amortized cost
Due after one year through five years, estimated fair value
Total, amortized cost	356,815
Held-to-maturity securities, fair value, total	$ 357,171

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Note 8 - Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Finished goods	$ 85,169	$ 93,467
Work in process	142,837	133,556
Raw materials	327,755	289,754
Total Inventories, net	$ 555,761	$ 516,777

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Note 9 - Commitments and Contingencies (Details Textual) $ in Thousands		12 Months Ended
	Apr. 25, 2013	Mar. 31, 2016 USD ($)	Sep. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)
Accrual for Environmental Loss Contingencies, Ending Balance			$ 14,020
Greatbatch, Inc. v AVX Corporation [Member]
Loss Contingency, Damages Awarded, Value		$ 37,500
Greatbatch, Inc. v AVX Corporation And Presidio Components v. American Technical Ceramics Corp. [Member]
Loss Contingency, Pending Claims, Number, Ending Balance			2
Unfavorable Regulatory Action - Environmental Matters [Member]
Loss Contingency Accrual, Ending Balance			$ 18,729	$ 18,618
Loss Contingency, Accrual, Current			6,040	3,329
Loss Contingency, Accrual, Noncurrent			12,689	$ 15,289
Unfavorable Regulatory Action - Patent Infringement Matters [Member] | Greatbatch, Inc. v AVX Corporation [Member] | Minimum [Member]
Loss Contingency, Patents Allegedly Infringed, Number	1
Unfavorable Regulatory Action - Patent Infringement Matters [Member] | Greatbatch, Inc. v AVX Corporation [Member] | Maximum [Member]
Loss Contingency, Patents Allegedly Infringed, Number	6
Unfavorable Regulatory Action - Patent Infringement Matters [Member] | Greatbatch, Inc. v AVX Corporation And Presidio Components v. American Technical Ceramics Corp. [Member]
Loss Contingency Accrual, Ending Balance			$ 73,392

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Note 10 - Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Foreign currency translation adjustment, pre-tax	$ 1,310	$ 12,385	$ (40,431)	$ 33,447
Foreign currency translation adjustment, net of tax	1,310	12,385	(40,431)	33,447
Foreign currency cash flow hedges adjustment, pre-tax	171	195	248	(524)
Foreign currency cash flow hedges adjustment, net of tax	126	267	189	(421)
Pension liability adjustment, pre-tax	272	91	3,579	(150)
Pension liability adjustment, net of tax	216	68	2,846	(113)
Other comprehensive income (loss), pre-tax	1,753	12,671	(36,604)	32,773
Other comprehensive income (loss), net of tax	$ 1,652	$ 12,720	$ (37,396)	$ 32,913

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Note 11 - Segment and Geographic Information (Details Textual) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)
Number of Reportable Segments			2
Revenue from Contract with Customer, Including Assessed Tax	$ 456,328	$ 352,693	$ 910,444	$ 684,047
Intersegment Eliminations [Member]
Revenue from Contract with Customer, Including Assessed Tax			$ 0

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Note 11 - Segment and Geographic Information - Reportable Segment Revenue, Profit and Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Mar. 31, 2018
Net sales	$ 456,328	$ 352,693	$ 910,444	$ 684,047
Operating profit (loss)	85,637	44,786	153,655	87,217
Total Assets	2,740,655		2,740,655		$ 2,672,766
Goodwill	327,926		327,926		316,298
Operating Segments [Member] | Electronic Components [Member]
Net sales	332,229	320,116	651,441	621,786
Operating profit (loss)	104,135	56,076	190,545	110,795
Total Assets	678,940		678,940		632,014
Operating Segments [Member] | Electronic Components [Member] | Ceramic Components [Member]
Net sales	102,678	57,319	181,514	108,375
Operating Segments [Member] | Electronic Components [Member] | Tantalum Components [Member]
Net sales	105,702	93,987	206,734	182,940
Operating Segments [Member] | Electronic Components [Member] | Advanced Components [Member]
Net sales	123,849	168,810	263,193	330,471
Operating Segments [Member] | Interconnect, Sensing and Control Devices [Member]
Net sales	124,100	32,577	259,004	62,261
Operating profit (loss)	2,283	3,366	(467)	6,644
Total Assets	251,738		251,738		241,959
Corporate, Non-Segment [Member]
Operating profit (loss)	(20,781)	$ (14,656)	(36,423)	$ (30,222)
Total Assets	374,276		374,276		370,779
Segment Reconciling Items [Member]
Cash, A/R, and investments in securities	1,107,775		1,107,775		1,111,716
Segment Reconciling Items [Member] | Electronic Components [Member]
Goodwill	290,870		290,870		278,247
Segment Reconciling Items [Member] | Interconnect, Sensing and Control Devices [Member]
Goodwill	$ 37,056		$ 37,056		$ 38,051

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Note 11 - Segment and Geographic Information - Schedule of Geographical Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net sales	$ 456,328	$ 352,693	$ 910,444	$ 684,047
Americas [Member]
Net sales	126,004	102,838	240,571	202,779
Europe [Member]
Net sales	184,004	103,045	382,408	195,565
Asia [Member]
Net sales	$ 146,320	$ 146,810	$ 287,465	$ 285,703

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Note 12 - Pension Plans (Details Textual) $ in Thousands	3 Months Ended
	Sep. 30, 2018 USD ($)
Foreign Plan [Member]
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 3,436
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year	3,270
UNITED STATES
Defined Benefit Plan, Plan Assets, Contributions by Employer	2,289
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year	$ 0

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Note 12 - Pension Plans - Net Benefit Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
UNITED STATES
Service cost		$ 33		$ 66
Interest cost	327	352	655	704
Expected return on plan assets	(393)	(450)	(786)	(900)
Recognized actuarial loss	221	286	442	571
Net periodic pension cost	155	221	311	441
Foreign Plan [Member]
Service cost	212	231	427	459
Interest cost	1,024	1,136	2,070	2,244
Expected return on plan assets	(1,441)	(1,450)	(2,912)	(2,867)
Recognized actuarial loss	252	329	508	650
Net periodic pension cost	$ 47	$ 246	$ 93	$ 486

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Note 13 - Derivative Financial Instruments (Details Textual) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Mar. 31, 2018
Other Expense [Member]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net, Total	$ 66	$ 66
Other Income [Member]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net, Total	1,245	$ 1,245
Foreign Exchange Forward [Member]
Derivative Contract Maximum Maturity Term		120 days
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	715	$ (118)
Foreign Exchange Forward [Member] | Cost of Sales [Member]
Gain (Loss) on Derivative Instruments, Net, Pretax, Total	545	(2,590)
Foreign Exchange Forward [Member] | Sales [Member]
Gain (Loss) on Derivative Instruments, Net, Pretax, Total	32	1,403
Foreign Exchange Contract [Member]
Derivative, Notional Amount	$ 175,751	$ 175,751	$ 156,238

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Note 13 - Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Thousands	Sep. 30, 2018	Mar. 31, 2018
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member]
Asset derivatives, fair value	$ (222)	$ 212
Asset derivatives, fair value	222	(212)
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member]
Asset derivatives, fair value	(133)	(45)
Asset derivatives, fair value	133	45
Accrued Expenses [Member] | Designated as Hedging Instrument [Member]
Liability derivatives, fair value	139	377
Accrued Expenses [Member] | Not Designated as Hedging Instrument [Member]
Liability derivatives, fair value	$ 68	$ 137

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Note 14 - Subsequent Events (Details Textual) - $ / shares		3 Months Ended		6 Months Ended
	Oct. 17, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Common Stock, Dividends, Per Share, Declared		$ 0.115	$ 0.115	$ 0.23	$ 0.225
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared	$ 0.115
Dividends Payable, Date Declared	Oct. 17, 2018
Dividends Payable, Date of Record	Nov. 02, 2018
Dividends Payable, Date to be Paid	Nov. 16, 2018