Annual report pursuant to Section 13 and 15(d)

Segment and Geographic Information

v2.4.0.6
Segment and Geographic Information
12 Months Ended
Mar. 31, 2013
Segment and Geographic Information  
Segment and Geographic Information

Note 9: Segment and Geographic Information

        The Company is organized into three business groups: Tantalum, Ceramic, and Film and Electrolytic based primarily on product lines. Each business group is responsible for the operations of certain manufacturing sites as well as all related research and development efforts. In 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

        Tantalum operates in eight manufacturing sites in Portugal, Mexico, China and the United States and produces tantalum and aluminum polymer capacitors which are sold globally and produces tantalum powder used in the production of tantalum capacitors. Tantalum shares with Ceramic the Company's product innovation center in the United States.

Ceramic

        Ceramic operates in two manufacturing locations in Mexico and produces ceramic capacitors which are sold globally. Ceramic 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 and filters in the United States.

Film and Electrolytic

        Film and Electrolytic operates fourteen manufacturing sites throughout Europe, Asia, Mexico and the United States and 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 product innovation centers in the United Kingdom, Italy, Germany and Sweden.

        The following tables summarize information about each segment's net sales, operating income (loss), depreciation and amortization, capitalized expenditures and total assets (amounts in thousands):

 
  Fiscal Years Ended March 31,  
 
  2013   2012   2011  

Net sales:

                   

Tantalum

  $ 412,791   $ 416,995   $ 486,595  

Ceramic

    209,514     213,767     210,509  

Film and Electrolytic. 

    220,649     354,071     321,384  
               

 

  $ 842,954   $ 984,833   $ 1,018,488  
               

Operating income (loss)(1)(2)(3):

                   

Tantalum

  $ 41,573   $ 52,508   $ 134,363  

Ceramic

    53,149     59,261     61,732  

Film and Electrolytic

    (35,311 )   22,065     29,702  

Corporate

    (98,693 )   (96,033 )   (96,536 )
               

Consolidated operating income (loss)

  $ (39,282 ) $ 37,801   $ 129,261  
               

Depreciation and amortization:

                   

Tantalum

  $ 21,154   $ 21,537   $ 29,307  

Ceramic

    6,253     6,402     7,735  

Film and Electrolytic

    13,761     12,121     11,831  

Corporate

    4,391     4,064     4,059  
               

 

  $ 45,559   $ 44,124   $ 52,932  
               

Capital expenditures:

                   

Tantalum

  $ 13,669   $ 12,357   $ 8,962  

Ceramic

    3,169     6,682     4,764  

Film and Electrolytic

    23,970     21,539     16,445  

Corporate

    5,366     8,736     4,818  
               

 

  $ 46,174   $ 49,314   $ 34,989  
               

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

 
  Fiscal Years Ended March 31,  
 
  2013   2012   2011  

Total restructuring:

                   

Tantalum

  $ 3,979   $ 950   $ 864  

Ceramic

    3,356     211     444  

Film and Electrolytic. 

    9,621     13,093     5,863  

Restructuring charges

    1,763          
               

 

  $ 18,719   $ 14,254   $ 7,171  
               
(2)
Impairment charges and write downs included in Operating income (loss) were as follows (amounts in thousands):

 
  Fiscal Years Ended
March 31,
 
 
  2013   2012   2011  

Impairment and write down of long-lived assets:

                   

Tantalum

  $ 3,348   $ 15,786   $  

Film and Electrolytic

    5,326          
               

 

  $ 8,674   $ 15,786   $  
               
(3)
(Gain) loss on sales and disposals of assets included in Operating income (loss) were as follows (amounts in thousands):

 
  Fiscal Years Ended
March 31,
 
 
  2013   2012   2011  

(Gain) loss on sales and disposals of assets:

                   

Tantalum

  $ (187 ) $ 269   $ 25  

Ceramic

    26     69     (1,578 )

Film and Electrolytic

    179     (20 )   292  
               

 

  $ 18   $ 318   $ (1,261 )
               


 

 
  March 31,  
 
  2013   2012  

Total assets:

             

Tantalum

  $ 404,333   $ 512,640  

Ceramic

    145,793     202,713  

Film and Electrolytic. 

    361,465     265,509  
           

 

  $ 911,591   $ 980,862  
           

        The following highlights net sales by geographic location (amounts in thousands):

 
  Fiscal Years Ended March 31,(1)  
 
  2013   2012   2011  

United States

  $ 230,917   $ 237,472   $ 240,775  

Hong Kong

    148,447     147,054     171,129  

Germany

    106,168     143,119     131,107  

Europe(2)(3)

    90,220     137,562     157,348  

China

    74,506     104,524     114,879  

United Kingdom

    34,188     39,512     34,321  

Singapore

    25,120     33,633     37,118  

Italy

    21,762     32,512     39,525  

Asia Pacific(2)(3)

    67,542     49,406     58,581  

Netherlands

    24,570     19,455     20,426  

Other countries(2)

    19,514     40,584     13,279  
               

 

  $ 842,954   $ 984,833   $ 1,018,488  
               

(1)
Revenues are attributed to countries or regions based on the location of the customer. The Company sold $127.7 million, $125.3 million and $133.3 million in fiscal years 2013, 2012 and 2011, respectively, to one customer, TTI, Inc. Tantalum sales to TTI, Inc. were $73.2 million, $68.0 million and $81.3 million in fiscal years 2013, 2012 and 2011, respectively. Ceramic sales to TTI, Inc. were $45.8 million, $44.3 million and $44.2 million in fiscal years 2013, 2012 and 2011, respectively. Film and Electrolytic sales to TTI, Inc. were $8.7 million, $13.0 million and $7.8 million in fiscal years 2013, 2012 and 2011, respectively.

(2)
No country included in this caption exceeded 2% of consolidated net sales for fiscal years 2013, 2012 and 2011.

(3)
Excluding the specific countries listed in this table.

        The following geographic information includes Property, plant and equipment, Goodwill, Intangible assets, net, based on physical location (amounts in thousands):

 
  March 31,  
 
  2013   2012  

United States

  $ 136,794   $ 146,876  

Mexico

    69,870     65,255  

Italy

    56,899     58,976  

China

    33,873     40,415  

Portugal

    28,716     35,971  

Macedonia

    18,724     7,757  

Indonesia

    7,243     7,979  

Finland

    6,992     7,904  

United Kingdom

    5,246     7,393  

Other

    14,381     15,525  
           

 

  $ 378,738   $ 394,051