Organization, Consolidation and Presentation of Financial Statements

3 Months Ended

Dec. 31, 2011

Organization, Consolidation and Presentation of Financial Statements

Nature of Operations [Text Block]

1.  BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Because of the seasonal nature of the Company’s business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year.  In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of financial position, results of operation and cash flows at the dates and for the periods presented have been included.  The unaudited information included in this Form 10-Q should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2011.

Taxes Collected from Customers

Certain subsidiaries are subject to value added taxes on local sales.  These amounts have been included in sales and were $4,864 and $6,868 for the three months ended December 31, 2011 and 2010, respectively and $13,478 and $25,538 for the nine months ended December 31, 2011 and 2010, respectively.

Other Deferred Charges

Other deferred charges are primarily deferred financing costs that are amortized over the life of the debt.

Property Exchange in Brazil

During the quarter ended, December 31, 2011 the Company exchanged real property with a third party in Brazil.  The transaction consisted of the Company exchanging real property located in Vera Cruz, Brazil and $9,403 of cash for real property located in Venancio Aires, Brazil.  The Company accounted for the transaction as a nonmonetary exchange involving monetary consideration.  In accordance with U.S. GAAP, the transaction was recorded and measured at fair value as the transaction had commercial substance, the fair values of the assets exchanged were determinable within reasonable limits, and the Company’s real property was not held for sale in the ordinary course of business or for property to be sold in the same line of business to facilitate sales to customers other than the parties to the exchange.  The cost of the real property received in the exchange was measured using the fair value of the assets given which equaled $26,250 including the cash.  The Company’s basis in its assets given was $13,178 and a gain of $13,072 was recorded in Other Income in the Condensed Consolidated Statements of Operations.

New Accounting Standards

Recently Adopted Accounting Pronouncements

On April 1, 2011 the Company adopted new accounting guidance on accounting for multiple-deliverable revenue arrangements.  The objective of this accounting guidance is to address the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than as a combined unit.  The Company adopted this new accounting guidance with no material impact on its financial condition or results of operations.

         On April 1, 2011, the Company adopted new accounting guidance on fair value measurements and disclosures.  This guidance requires reporting entities to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers.  It also requires reporting entities to present separately information about purchases, sales, issuances, and settlements in their Level 3 fair value reconciliations.  The Company adopted these new disclosure requirements with no material impact on its financial condition or results of operations.  See Note 17 “Fair Value Measurements” for further details.

Recent Accounting Pronouncements Not Yet Adopted

In May 2011, the FASB issued new accounting guidance on fair value measurements and disclosures.  The objective of this accounting guidance is to provide consistent common fair value measurement and disclosure requirements in U.S. GAAP and IFRS such as clarifying how existing fair value measurement requirements should be applied, changing particular principles and requirements for measuring fair value and fair value measurement disclosures.  This accounting guidance will be effective for the Company on January 1, 2012.  The Company does not expect the impact of this new accounting guidance to have a material impact on its financial condition or results of operations.

          In June 2011, the FASB issued new accounting guidance on comprehensive income that was amended in December 2011.  The objective of this accounting guidance is to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income.  The guidance eliminates the option to present components of other comprehensive income as part of the statement of stockholders’ equity and requires them to be presented in the statement of comprehensive income instead.  This accounting guidance, as amended, will be effective for the Company on April 1, 2012.  The Company does not expect the impact of this new accounting guidance to have a material impact on its financial condition or results of operations.

          In September 2011, the FASB issued new accounting guidance on testing goodwill for impairment.  The primary objective of this accounting guidance is to reduce complexity and costs by allowing an entity to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it should calculate the fair value of a reporting unit.  If, after assessing qualitative factors, an entity determines that it is not more likely than not (a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, then the two-step goodwill impairment test is unnecessary.  This accounting guidance is effective for the Company in fiscal 2013 but early adoption is permitted.  The Company does not expect the impact of this new accounting guidance to have a material impact on its financial condition or results of operations.

In December 2011, the FASB issued new accounting guidance on disclosures about offsetting assets and liabilities.  The requirements for offsetting are different under U.S. GAAP and IFRS.  Therefore, the objective of this accounting guidance is to facilitate comparison between financials statements prepared under U.S. GAAP and IFRS by enhancing disclosures of the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain assets and liabilities.  This accounting guidance will be effective for the Company on April 1, 2013.  The Company does not expect the impact of this new accounting guidance to have a material impact on its financial condition or results of operations.

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

6.  VARIABLE INTEREST ENTITIES

Consolidated Variable Interest Entities

The Company held a variable interest in one joint venture in which the Company was the primary beneficiary because of its power to direct activities that most significantly impacted the economic performance of the entity.  The joint venture was an enterprise that served as a dedicated inventory supply source in Asia and the Company’s variable interest in this joint venture related to working capital advances and guarantees of the joint venture’s borrowings.  The Company terminated its relationship with this entity during the three months ended June 30, 2011 with no material impact on its financial condition or results of operations.

          As the primary beneficiary of this VIE, the entity’s material assets, liabilities and results of operations were previously included in the Company’s consolidated financial statements.  The following table summarizes the material carrying amounts of the entity’s assets, all of which were restricted, and liabilities included in the Company’s consolidated balance sheets.

Assets of Consolidated VIE	December 31, 2010	March 31, 2011
Inventory	$ 14,269	$ 5,195
Advances to suppliers	3,694	1,770
Liabilities of Consolidated VIE
Notes payable to banks	4,764	-

          Amounts presented in the table above as restricted assets relating to the consolidated VIE are adjusted for intercompany eliminations.

Nonconsolidated Variable Interest Entities

The Company holds variable interests in four joint ventures that are accounted for under the equity method of accounting.  These joint ventures procure inventory on behalf of the Company and the other joint venture partners.  The variable interests relate to equity investments and advances made by the Company to the joint ventures.  In addition, the Company also guarantees one of its joint venture’s borrowings which also represent a variable interest in that joint venture.  The Company is not the primary beneficiary, as it does not have the power to direct the activities that most significantly impact the economic performance of the entities as a result of the entities’ management and board of directors structure.  Therefore, these entities are not consolidated.  At December 31, 2011 and 2010, and March 31, 2011, the Company’s investment in these joint ventures was $23,471, $25,144, and $24,753, respectively and is classified as Investments in Unconsolidated Affiliates in the Condensed Consolidated Balance Sheets. The Company’s advances to these joint ventures were $56, $8,936 and $36 at December 31, 2011 and 2010, and March 31, 2011, respectively and are classified as Accounts Receivable, Related Parties in the Condensed Consolidated Balance Sheets.  The Company guaranteed an amount to a joint venture not to exceed $16,115, $16,921 and $16,982 at December 31, 2011 and 2010, and March 31, 2011, respectively.  The investments, advances and guarantee in these joint ventures represent the Company’s maximum exposure to loss.