Annual report pursuant to Section 13 and 15(d)

Condensed Consolidating Financial Statements

v2.4.0.6
Condensed Consolidating Financial Statements
12 Months Ended
Mar. 31, 2013
Condensed Consolidating Financial Statements  
Condensed Consolidating Financial Statements

Note 18: Condensed Consolidating Financial Statements

        As discussed in Note 2, "Debt", the Company's 10.5% Senior Notes are fully and unconditionally guaranteed, jointly and severally, on a senior basis by certain of the Company's 100% owned domestic subsidiaries ("Guarantor Subsidiaries") and secured by a first priority lien on 51% of the capital stock of certain of the Company's foreign restricted subsidiaries ("Non-Guarantor Subsidiaries"). The Company's Guarantor Subsidiaries are not consistent with the Company's business groups or geographic operations; accordingly this basis of presentation is not intended to present the Company's financial condition, results of operations or cash flows for any purpose other than to comply with the specific requirements for subsidiary guarantor reporting. We are required to present condensed consolidating financial information in order for the subsidiary guarantors of the Company's public debt to be exempt from reporting under the Securities Exchange Act of 1934, as amended.

        In fiscal year 2012, the Company incorrectly reflected transactions between the Parent and the Guarantor Subsidiaries in the Condensed Consolidating Financial Statements which did not impact the consolidated results. As of March 31, 2012, this resulted in an understatement of the Guarantor Subsidiaries' retained earnings, intercompany receivables and net income by $27.8 million. Management concluded that the correction of prior periods is immaterial; accordingly, previous filings have not been revised. However, during the current period, the Company has corrected its disclosure of the Condensed Consolidating Balance Sheet as of March 31, 2012 and the Condensed Consolidating Statement of Operations as of March 31, 2012.

        Condensed consolidating financial statements for the Company's Guarantor Subsidiaries and Non-Guarantor Subsidiaries are presented in the following tables (amounts in thousands):


Condensed Consolidating Balance Sheet
March 31, 2013

 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Reclassifications
and
Eliminations
  Consolidated  

ASSETS

                               

Current assets:

                               

Cash and cash equivalents

  $ 17,202   $ 52,056   $ 26,720   $   $ 95,978  

Accounts receivable, net

        42,051     54,513         96,564  

Intercompany receivable

    287,513     251,524     150,376     (689,413 )    

Inventories, net

        126,286     79,329         205,615  

Prepaid expenses and other

    3,186     13,564     27,303     (2,952 )   41,101  

Deferred income taxes

        578     3,589         4,167  
                       

Total current assets

    307,901     486,059     341,830     (692,365 )   443,425  

Property and equipment, net

    361     111,584     192,563         304,508  

Investments in NEC TOKIN

        52,738             52,738  

Investments in subsidiaries

    423,695     424,386     10,750     (858,831 )    

Goodwill

        35,584             35,584  

Intangible assets, net

        29,763     8,883         38,646  

Restricted cash

        17,397             17,397  

Deferred income taxes

        1,500     6,494         7,994  

Other assets

    6,741     3,173     1,385         11,299  

Long-term intercompany receivable

    75,919     56,338     2,800     (135,057 )    
                       

Total assets

  $ 814,617   $ 1,218,522   $ 564,705   $ (1,686,253 ) $ 911,591  
                       

LIABILITIES AND STOCKHOLDERS' EQUITY

                               

Current liabilities:

                               

Current portion of long-term debt

  $ 9,561   $ 16   $ 1,216   $   $ 10,793  

Accounts payable, trade

    61     37,444     36,164         73,669  

Intercompany payable

    100,947     481,707     106,759     (689,413 )    

Accrued expenses

    37,490     19,615     38,839         95,944  

Income taxes payable

        3,046     980     (2,952 )   1,074  
                       

Total current liabilities

    148,059     541,828     183,958     (692,365 )   181,480  

Long-term debt, less current portion

    372,157         550         372,707  

Other non-current obligations

    17,485     3,899     50,562         71,946  

Deferred income taxes

        2,808     5,734         8,542  

Long-term intercompany payable

        75,919     59,138     (135,057 )    

Stockholders' equity

    276,916     594,068     264,763     (858,831 )   276,916  
                       

Total liabilities and stockholders' equity

  $ 814,617   $ 1,218,522   $ 564,705   $ (1,686,253 ) $ 911,591  
                       


Condensed Consolidating Balance Sheet
March 31, 2012

 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Reclassifications
and
Eliminations
  Consolidated  

ASSETS

                               

Current assets:

                               

Cash and cash equivalents

  $ 7,933   $ 178,205   $ 24,383   $   $ 210,521  

Accounts receivable, net

        42,706     62,244         104,950  

Intercompany receivable

    251,970     55,863     171,921     (479,754 )    

Inventories, net

        121,611     90,623         212,234  

Prepaid expenses and other

    3,084     13,537     18,416     (2,778 )   32,259  

Deferred income taxes

        192     4,028         4,220  
                       

Total current assets

    262,987     412,114     371,615     (482,532 )   564,184  

Property and equipment, net

    20     114,615     201,213         315,848  

Investment in subsidiaries

    454,517     435,970     (4,622 )   (885,865 )    

Goodwill

        36,676             36,676  

Intangible assets, net

        31,630     9,897         41,527  

Restricted cash

        2,204             2,204  

Deferred income taxes

        2,200     5,260           7,460  

Other assets

    7,796     3,956     1,211         12,963  

Long-term intercompany receivable

    79,185     62,235     1,065     (142,485 )    
                       

Total assets

  $ 804,505   $ 1,101,600   $ 585,639   $ (1,510,882 ) $ 980,862  
                       

LIABILITIES AND STOCKHOLDERS' EQUITY

                               

Current liabilities:

                               

Current portion of long-term debt

  $   $ 25   $ 1,926   $   $ 1,951  

Accounts payable, trade

    460     35,206     39,490     (752 )   74,404  

Intercompany payable

    34,830     315,906     122,799     (473,535 )    

Accrued expenses

    30,747     23,007     35,325         89,079  

Income taxes payable

        3,031     2,003     (2,778 )   2,256  
                       

Total current liabilities

    66,037     377,175     201,543     (477,065 )   167,690  

Long-term debt, less current portion

    343,539         1,841         345,380  

Other non-current obligations

    35,933     5,400     59,896         101,229  

Deferred income taxes

        2,472     5,095         7,567  

Long-term intercompany payable

        79,185     63,300     (142,485 )    

Stockholders' equity

    358,996     637,368     253,964     (891,332 )   358,996  
                       

Total liabilities and stockholders' equity

  $ 804,505   $ 1,101,600   $ 585,639   $ (1,510,882 ) $ 980,862  
                       


Condensed Consolidating Statements of Operations
Fiscal Year Ended March 31, 2013

 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Reclassifications
and
Eliminations
  Consolidated  

Net sales

  $   $ 905,755   $ 862,989   $ (925,790 ) $ 842,954  

Operating costs and expenses:

                               

Cost of sales

    2,003     823,170     774,065     (882,880 )   716,358  

Selling, general and administrative expenses

    30,838     68,711     53,835     (42,910 )   110,474  

Research and development

    190     20,028     7,775         27,993  

Restructuring charges

        7,266     11,453         18,719  

Write down of long-lived assets

        438     7,144         7,582  

Goodwill impairment

        1,092             1,092  

Net (gain) loss on sales and disposals of assets

    3     98     (83 )       18  
                       

Total operating costs and expenses

    33,034     920,803     854,189     (925,790 )   882,236  
                       

Operating income (loss)

    (33,034 )   (15,048 )   8,800         (39,282 )

Interest income

   
(24

)
 
(43

)
 
(72

)
 
   
(139

)

Interest expense

    40,651     972     (292 )       41,331  

Gain on early extinguishment of debt

                     

Increase in value of warrant

                     

Other (income) expense, net

    (27,233 )   27,623     (3,254 )       (2,864 )

Equity in earnings of subsidiaries

    35,754             (35,754 )    
                       

Income (loss) before income taxes and equity loss from NEC TOKIN

    (82,182 )   (43,600 )   12,418     35,754     (77,610 )

Income tax expense

   
   
636
   
2,682
   
   
3,318
 
                       

Income (loss) before equity loss from NEC TOKIN          

    (82,182 )   (44,236 )   9,736     35,754     (80,928 )

Equity loss from NEC TOKIN

        (1,254 )           (1,254 )
                       

Net income (loss)

  $ (82,182 ) $ (45,490 ) $ 9,736   $ 35,754   $ (82,182 )
                       


Condensed Consolidating Statements of Comprehensive Income (Loss)
Fiscal Year Ended March 31, 2013

Comprehensive income (loss)

  $ (85,449 ) $ (43,519 ) $ 6,706   $ 35,754   $ (86,508 )
                       

Condensed Consolidating Statements of Operations
Fiscal Year Ended March 31, 2012

 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Reclassifications
and
Eliminations
  Consolidated  

Net sales

  $   $ 938,525   $ 944,166   $ (897,858 ) $ 984,833  

Operating costs and expenses:

                               

Cost of sales

    799     799,659     848,822     (873,610 )   775,670  

Selling, general and administrative expenses

    30,741     60,872     44,813     (24,862 )   111,564  

Research and development

        21,283     8,157         29,440  

Restructuring charges

        2,255     11,999         14,254  

Net (gain) loss on sales and disposals of assets

        384     (66 )       318  

Write down of long-lived assets

            15,786         15,786  
                       

Total operating costs and expenses

    31,540     884,453     929,511     (898,472 )   947,032  
                       

Operating income (loss)

    (31,540 )   54,072     14,655     614     37,801  

Interest income

   
(12

)
 
(58

)
 
(105

)
 
   
(175

)

Interest expense

    27,375     459     733         28,567  

Other (income) expense, net

    (29,947 )   32,127     (986 )   (229 )   965  

Equity in earnings of subsidiaries

    (34,456 )           34,456      
                       

Income (loss) before income taxes

    5,500     21,544     15,013     (33,613 )   8,444  

Income tax expense (benefit)

   
(1,192

)
 
(80

)
 
3,024
   
   
1,752
 
                       

Net income (loss)

  $ 6,692   $ 21,624   $ 11,989   $ (33,613 ) $ 6,692  
                       


Condensed Consolidating Statements of Comprehensive Loss
Fiscal Year Ended March 31, 2012

Comprehensive loss

  $ 1,646   $ 20,641   $ 7,483   $ (33,613 ) $ (3,843 )
                       


Condensed Consolidating Statements of Operations
Fiscal Year Ended March 31, 2011

 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Reclassifications
and
Eliminations
  Consolidated  

Net sales

  $   $ 948,292   $ 983,594   $ (913,398 ) $ 1,018,488  

Operating costs and expenses:

                               

Cost of sales

        738,855     889,886     (875,895 )   752,846  

Selling, general and administrative expenses

    36,607     64,521     38,978     (35,499 )   104,607  

Research and development

        19,148     6,961     (245 )   25,864  

Restructuring charges

        4,378     2,793         7,171  

Net (gain) loss on sales and disposals of assets

        (1,705 )   444         (1,261 )
                       

Total operating costs and expenses

    36,607     825,197     939,062     (911,639 )   889,227  
                       

Operating income (loss)

    (36,607 )   123,095     44,532     (1,759 )   129,261  

Interest income

   
(20

)
 
(110

)
 
(88

)
 
   
(218

)

Interest expense

    28,399     260     1,516         30,175  

Loss on early extinguishment of debt

    38,248                 38,248  

Other (income) expense, net

    (30,751 )   25,631     331     97     (4,692 )

Equity in earnings of subsidiaries

    (135,521 )           135,521      
                       

Income before income taxes

    63,038     97,314     42,773     (137,377 )   65,748  

Income tax expense (benefit)

   
(6

)
 
9
   
2,701
   
   
2,704
 
                       

Net income

  $ 63,044   $ 97,305   $ 40,072   $ (137,377 ) $ 63,044  
                       


Condensed Consolidating Statements of Comprehensive Income (Loss)
Fiscal Year Ended March 31, 2011

Comprehensive income (loss)

  $ 74,309   $ 92,060   $ 44,617   $ (137,377 ) $ 73,609  
                       


Condensed Consolidating Statements of Cash Flows
Fiscal Year Ended March 31, 2013

 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Reclassifications
and
Eliminations
  Consolidated  

Sources (uses) of cash and cash equivalents

                               

Net cash provided by (used in) operating activities

  $ (14,492 ) $ (43,099 ) $ 34,764   $   $ (22,827 )
                       

Investing activities:

                               

Capital expenditures

        (15,841 )   (30,333 )       (46,174 )

Investment in NEC TOKIN

        (50,917 )           (50,917 )

Change in restricted cash

        (15,284 )           (15,284 )

Proceeds from sale of assets

            398         398  
                       

Net cash used in investing activities

        (82,042 )   (29,935 )       (111,977 )
                       

Financing activities:

                               

Proceeds from issuance of debt

    39,825                 39,825  

Deferred acquisition payments

    (15,900 )   (1,000 )           (16,900 )

Payments of long-term debt

        (8 )   (1,901 )       (1,909 )

Permanent intercompany financing

                     

Debt issuance costs

    (275 )               (275 )

Proceeds from exercise of stock options

    111                 111  

Dividends received (paid)

                     
                       

Net cash provided by (used in) financing activities           

    23,761     (1,008 )   (1,901 )       20,852  
                       

Net increase (decrease) in cash and cash equivalents           

    9,269     (126,149 )   2,928         (113,952 )

Effect of foreign currency fluctuations on cash

            (591 )       (591 )

Cash and cash equivalents at beginning of fiscal year

    7,933     178,205     24,383         210,521  
                       

Cash and cash equivalents at end of fiscal year

  $ 17,202   $ 52,056   $ 26,720   $   $ 95,978  
                       


Condensed Consolidating Statements of Cash Flows
Fiscal Year Ended March 31, 2012

 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Reclassifications
and
Eliminations
  Consolidated  

Sources (uses) of cash and cash equivalents

                               

Net cash provided by (used in) operating activities

  $ (71,930 ) $ 124,591   $ 28,069   $   $ 80,730  
                       

Investing activities:

                               

Capital expenditures

        (23,099 )   (26,215 )       (49,314 )

Acquisitions net of cash received

        (42,613 )           (42,613 )

Proceeds from sale of assets

            74         74  
                       

Net cash used in investing activities

        (65,712 )   (26,141 )       (91,853 )
                       

Financing activities:

                               

Proceeds from issuance of debt

    116,050                 116,050  

Payment of long-term debt

    (40,581 )               (40,581 )

Net (payments) borrowings under other credit facilities

            (3,154 )       (3,154 )

Debt issuance costs

    (2,313 )               (2,313 )

Proceeds from exercise of stock options

    290                 290  
                       

Net cash provided by (used in) financing activities           

    73,446         (3,154 )       70,292  
                       

Net increase (decrease) in cash and cash equivalents           

    1,516     58,879     (1,226 )       59,169  

Effect of foreign currency fluctuations on cash

            (699 )       (699 )

Cash and cash equivalents at beginning of fiscal year

    6,417     119,326     26,308         152,051  
                       

Cash and cash equivalents at end of fiscal year

  $ 7,933   $ 178,205   $ 24,383   $   $ 210,521  
                       


Condensed Consolidating Statements of Cash Flows
Fiscal Year Ended March 31, 2011

 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Reclassifications
and
Eliminations
  Consolidated  

Sources (uses) of cash and cash equivalents

                               

Net cash provided by (used in) operating activities

  $ (13,967 ) $ 90,445   $ 37,490   $   $ 113,968  
                       

Investing activities:

                               

Capital expenditures

        (15,842 )   (19,147 )       (34,989 )

Proceeds from sale of assets

        5,425             5,425  
                       

Net cash used in investing activities

        (10,417 )   (19,147 )       (29,564 )
                       

Financing activities:

                               

Proceeds from issuance of debt

    226,976         549         227,525  

Payments of long-term debt

    (210,604 )   (15,000 )   (4,809 )       (230,413 )

Net (payments) borrowings under other credit facilities

            (2,479 )       (2,479 )

Debt issuance costs

    (7,472 )   (381 )           (7,853 )

Debt extinguishment costs

    (207 )               (207 )

Proceeds from exercise of stock options

    89                 89  
                       

Net cash provided by (used in) financing activities           

    8,782     (15,381 )   (6,739 )       (13,338 )
                       

Net increase (decrease) in cash and cash equivalents           

    (5,185 )   64,647     11,604         71,066  

Effect of foreign currency fluctuations on cash

        (28 )   1,814         1,786  

Cash and cash equivalents at beginning of fiscal year

    11,602     54,707     12,890         79,199  
                       

Cash and cash equivalents at end of fiscal year

  $ 6,417   $ 119,326   $ 26,308   $   $ 152,051