Segment and Geographic Information

9 Months Ended

Dec. 31, 2012

Segment and Geographic Information

Segment and Geographic Information

Note 9. Segment and Geographic Information

The Company’s three business groups: Tantalum, the Ceramic Business Group (“Ceramic”), and Film and Electrolytic, are responsible for the operations of certain manufacturing sites as well as all related research and development efforts. Beginning in the third quarter of fiscal year 2013, the Company did not allocate indirect Selling, general and administrative (“SG&A”) and Research and Development (“R&D”) expenses to be consistent with its management reporting.  Prior period information has been reclassified to conform to current year presentation.  Substantially all research and development expenses are direct costs to the respective business group.

Tantalum

Operating in seven manufacturing sites in the United States, Mexico, China and Portugal, the Tantalum business group primarily produces tantalum and aluminum polymer capacitors which are sold globally. Tantalum shares with Ceramic the Company’s product innovation center in the United States.

Ceramic

Operating in two manufacturing sites in Mexico, the Ceramic business group produces ceramic capacitors which are sold globally. The business group shares with Tantalum the Company’s product innovation center in the United States. In addition, Ceramic maintains a design and manufacturing plant for electrical transformers, inductors, chokes, coils and filters in the United States.

Film and Electrolytic

Operating in fourteen manufacturing sites in Europe, Asia and North America, the Film and Electrolytic business group produces film, paper, and electrolytic capacitors which are sold globally. Film and Electrolytic also operates a machinery division located in Italy that provides automation solutions for the manufacture, processing and assembly of metalized films, film/foil and electrolytic capacitors; and designs, assembles and installs automation solutions for the production of energy storage devices. In addition, this business group has a product innovation center in Sweden.

The following table reflects each business group’s net sales, operating income (loss), depreciation and amortization expenses and sales by region for the quarters and nine months ended December 31, 2012 and 2011 (amounts in thousands):

	Quarters Ended December 31,						Nine Months Ended December 31,
	2012			2011			2012			2011
Net sales:
Tantalum	$	98,496		$	92,091		$	317,003		$	326,824
Ceramic	51,276			47,510			155,937			163,001
Film and Electrolytic	50,525			79,194			166,980			284,340
	$	200,297		$	218,795		$	639,920		$	774,165
Operating income (loss) (1):
Tantalum (2)	$	10,117		$	(4,842	)	$	34,050		$	46,418
Ceramic	14,639			13,927			39,275			46,199
Film and Electrolytic (3)	(7,431		)	(5,926		)	(25,853		)	27,329
Segment operating income	$	17,325		$	3,159		$	47,472		$	119,946
Unallocated operating expenses	22,615			21,121			70,827			72,153
Consolidated operating income (loss)	$	(5,290	)	$	(17,962	)	$	(23,355	)	$	47,793
Depreciation and amortization expenses:
Tantalum	$	5,251		$	5,351		$	17,269		$	18,264
Ceramic	1,576			1,586			5,505			5,391
Film and Electrolytic	3,675			3,436			10,905			9,729
	$	10,502		$	10,373		$	33,679		$	33,384

	Quarters Ended December 31,				Nine Months Ended December 31,
	2012		2011		2012		2011
Sales by region:
North and South America (“Americas”)	$	62,185	$	64,256	$	184,913	$	218,678
Europe, Middle East, Africa (“EMEA”)	66,056		84,676		216,114		294,285
Asia and Pacific Rim (“APAC”)	72,056		69,863		238,893		261,202
	$	200,297	$	218,795	$	639,920	$	774,165

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

	Quarters Ended December 31,				Nine Months Ended December 31,
	2012		2011		2012		2011
Total restructuring:
Tantalum	$	652	$	6	$	2,759	$	905
Ceramic	1,378		1		2,630		89
Film and Electrolytic	1,856		10,741		8,283		12,384
	$	3,886	$	10,748	$	13,672	$	13,378

(2)In both the quarters and nine month periods ended December 31, 2012 and 2011, Tantalum incurred charges of $3.1 million and $15.8 million, respectively related to the Write down of long-lived assets.

(3)   In the nine month period ended December 31, 2012, Film and Electrolytic incurred the following operating expenses/benefits: Goodwill impairment of $1.1 million, Write down of long-lived assets of $4.2 million and a Settlement gain on benefit plan of $1.5 million.

The following table reflects each business group’s total assets as of December 31, 2012 and March 31, 2012 (amounts in thousands):

	December 31, 2012		March 31, 2012
Total assets:
Tantalum	$	455,530	$	511,193
Ceramic	237,141		201,971
Film and Electrolytic	233,669		262,388
	$	926,340	$	975,552