Segment and Geographic Information

9 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company is organized into three segments: Solid Capacitors, Film and Electrolytics and MSA.  In prior years, the Company reported two reportable segments, Solid Capacitors and Film and Electrolytics. However, effective beginning the quarter ended June 30, 2017 and in connection with the TOKIN acquisition, TOKIN’s tantalum capacitor business is included within KEMET’s Solid Capacitors reportable segment and the remainder of TOKIN’s business became a new reportable segment, MSA. Refer to Note 2, "Acquisitions," for additional information on MSA.

The segments are responsible for their respective manufacturing sites as well as their respective research and development efforts. The Company does not allocate corporate indirect selling, general and administrative (“SG&A”) or shared Research and development (“R&D”) expenses to the segments so these expenses are recorded as a "Corporate" expense in the tables below.  Results for the first quarter of fiscal year 2018 have been reclassified to conform to the current period presentation where certain regional SG&A amounts have been allocated to certain segments, and also a portion of the allocation within the segments was allocated to costs of goods sold. These adjustments are reflected in the nine-month results included below.

Solid Capacitors

Solid Capacitors operates in eleven manufacturing sites in the United States, Mexico and Asia, and operates innovation centers in the United States and Japan. Solid Capacitors primarily produces tantalum, aluminum polymer, and ceramic capacitors which are sold globally.  Solid Capacitors also produces tantalum powder used in the production of tantalum capacitors.

Film and Electrolytic

Film and Electrolytic operates in nine manufacturing sites throughout Europe and Asia. Film and Electrolytic primarily produces film, paper, and electrolytic capacitors which are sold globally. In addition, this segment has product innovation centers in Portugal, Italy and Sweden.

MSA

MSA operates in four manufacturing sites throughout Asia. MSA primarily produces electro magnetically compatible materials and components, piezo materials and actuators and various types of sensors which are sold globally. In addition, this segment has a product innovation center in Sendai, Japan.

The following table reflects each segment’s net sales, operating income (loss), depreciation and amortization expenses and sales by region for the quarters and nine-month periods endedDecember 31, 2017 and 2016 (amounts in thousands):

	Quarters Ended December 31,						Nine-Month Periods Ended December 31,
	2017			2016			2017			2016
Net sales:
Solid Capacitors	$	195,049		$	141,555		$	568,435		$	426,140
Film and Electrolytic	51,300			46,474			146,738			134,132
MSA	60,059			—			166,706			—
	$	306,408		$	188,029		$	881,879		$	560,272
Operating income (loss) (1),(2),(3):
Solid Capacitors	$	60,991		$	37,421		$	170,417		$	108,262
Film and Electrolytic	574			2,361			4,188			(6,117		)
MSA	9,932			—			18,055			—
Corporate	(39,420		)	(25,600		)	(101,156		)	(75,291		)
	$	32,077		$	14,182		$	91,504		$	26,854
Depreciation and amortization expense:
Solid Capacitors	$	6,900		$	5,078		$	21,490		$	15,643
Film and Electrolytic	2,500			2,560			7,609			8,111
MSA	(478		)	—			1,026			—
Corporate	2,203			1,457			6,569			4,217
	$	11,125		$	9,095		$	36,694		$	27,971

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⁽¹⁾ Quarter and nine-month period ended December 31, 2016 adjusted due to the adoption of ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

⁽²⁾ Restructuring charges included in Operating income (loss) are as follows (amounts in thousands):

	Quarters Ended December 31,					Nine-Month Periods Ended December 31,
	2017		2016			2017		2016
Restructuring charges:
Solid Capacitors	$	121	$	(128	)	$	841	$	566
Film and Electrolytic	2,309		(243		)	2,574		3,421
MSA	—		—			—		—
Corporate	1,100		2			3,121		330
	$	3,530	$	(369	)	$	6,536	$	4,317

⁽³⁾ (Gain) loss on write down and disposal of long-lived assets included in Operating income (loss) are as follows (amounts in thousands):

	Quarters Ended December 31,					Nine-Month Periods Ended December 31,
	2017			2016		2017			2016
(Gain) loss on write down and disposal of long-lived assets:
Solid Capacitors	$	21		$	67	$	33		$	2,227
Film and Electrolytic	(990		)	28		(1,153		)	4,236
MSA	—			—		—			—
Corporate	67			37		198			37
	$	(902	)	$	132	$	(922	)	$	6,500

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	Quarters Ended December 31,				Nine-Month Periods Ended December 31,
	2017		2016		2017		2016
Sales by region:
North and South America (“Americas”)	$	65,097	$	54,976	$	191,428	$	166,858
Europe, Middle East, Africa (“EMEA”)	68,676		55,765		201,711		176,298
Japan and Korea (“JPKO”)	48,395		—		128,514		—
Asia and Pacific Rim (“APAC”)	124,240		77,288		360,226		217,116
	$	306,408	$	188,029	$	881,879	$	560,272