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Investment in NEC TOKIN (Tables)
 6 Months Ended
Sep. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]  
Reconciliation between NEC TOKIN's net loss and KEMET's equity investment loss
Summarized financial information for NEC TOKIN follows (amounts in thousands):
 
September 30,
2016
 
March 31,
2016
Current assets
$
249,818

 
$
240,427

Non-current assets
258,333

 
260,614

Current liabilities
171,193

 
179,360

Non-current liabilities
368,011

 
335,500


 
Quarters Ended September 30,
 
Six-Month Periods Ended September 30,
 
2016
 
2015
 
2016
 
2015
Sales
$
126,589

 
$
117,358

 
$
247,099

 
$
232,092

Gross profit
27,055

 
25,055

 
53,601

 
49,723

Net income (loss)
2,012

 
2,007

 
4,362

 
7,261



A reconciliation between NEC TOKIN’s net income (loss) and KEC’s equity investment income (loss) follows (amounts in thousands):
 
Quarters Ended September 30,
 
Six-Month Periods Ended September 30,
 
2016
 
2015
 
2016
 
2015
NEC TOKIN net income (loss)
$
2,012

 
$
2,007

 
4,362

 
7,261

KEC’s economic interest %
34
%
 
34
%
 
34
%
 
34
%
Equity income (loss) from NEC TOKIN before adjustments
684

 
682

 
1,483

 
2,469

 


 


 
 
 
 
Adjustments:


 


 
 
 
 
Amortization and depreciation
(581
)
 
(488
)
 
(1,125
)
 
(624
)
Inventory profit elimination
78

 
(32
)
 
46

 
(98
)
Equity income (loss) from NEC TOKIN
$
181

 
$
162

 
$
404

 
$
1,747

    
A reconciliation between NEC TOKIN’s net assets and KEC’s investment in NEC TOKIN follows (amounts in thousands):
 
September 30,
2016
 
March 31,
2016
Investment in NEC TOKIN
$
15,174

 
$
20,334

Purchase price accounting basis adjustments:
 
 
 
Property, plant and equipment (1)
3,565

 
3,365

Technology (1)
(10,413
)
 
(10,134
)
Long-term debt (1)
(1,684
)
 
(1,975
)
Goodwill
(8,377
)
 
(7,555
)
Indemnity asset for legal investigation
(8,500
)
 
(8,500
)
Inventory profit elimination (2)
326

 
371

Other
(650
)
 
(604
)
KEC’s 34% economic interest in NEC TOKIN’s net assets
$
(10,559
)
 
$
(4,698
)

(1) Amortized over the estimated lives.
(2) Adjusted each period for any activity.
Schedule of Related Party Transactions
Summarized transactions between KEC and NEC TOKIN are as follows (amounts in thousands):
 
Quarters Ended September 30,
 
Six-Month Periods Ended September 30,
 
2016
 
2015
 
2016
 
2015
KEC’s sales to NEC TOKIN
$
5,135

 
$
4,474

 
$
8,282

 
$
9,330

NEC TOKIN’s sales to KEMET
1,889

 
2,112

 
3,761

 
3,590


 
September 30,
2016
 
March 31,
2016
Accounts receivable
$
3,708

 
$
5,220

Accounts payable
792

 
1,019

Management service agreement receivable (1)
649

 
748

(1) In accordance with the Stockholders’ Agreement, KEC entered into a management services agreement with NEC TOKIN to provide services for which KEC is being reimbursed.