Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
12 Months Ended
Mar. 31, 2013
Income Taxes  
Schedule of components of income (loss) before income taxes and equity loss from NEC TOKIN

The components of Income (loss) before income taxes and equity loss from NEC TOKIN consists of (amounts in thousands):

 
  Fiscal Years Ended March 31,  
 
  2013   2012   2011  

Domestic (U.S.)

  $ (90,028 ) $ (6,568 ) $ 27,473  

Foreign (Outside U.S.)

    12,418     15,012     38,275  
               

 

  $ (77,610 ) $ 8,444   $ 65,748  
               
Schedule of the provision (benefit) for income tax expense

The provision (benefit) for Income tax expense is as follows (amounts in thousands):

 
  Fiscal Years Ended March 31,  
 
  2013   2012   2011  

Current:

                   

Federal

  $   $ (938 ) $  

State and local

    37     49     58  

Foreign

    3,598     7,195     6,049  
               

 

    3,635     6,306     6,107  
               

Deferred:

                   

Federal

    (65 )   11     21  

State and local

    700     (394 )   99  

Foreign

    (952 )   (4,171 )   (3,523 )
               

 

    (317 )   (4,554 )   (3,403 )
               

Income tax expense

  $ 3,318   $ 1,752   $ 2,704  
               
Schedule of reconciliation of the statutory federal income tax rate to the effective income tax rate

 

 

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

Statutory U.S. federal income tax rate

    35.0     35.0     35.0  

Change in U.S. valuation allowance

    (35.5 )   13.2     (22.9 )

Taxable foreign source income

    (4.6 )   4.6     6.8  

State income taxes, net of federal taxes

    (1.0 )   4.9     0.2  

Other non-deductible expenses

    (0.4 )   3.5     1.5  

Income tax settlements

        (14.1 )    

Change in foreign operations valuation allowance

    5.9     (112.2 )   (20.8 )

Other effect of foreign operations

    (3.7 )   85.8     4.3  
               

Effective income tax rate

    (4.3 )   20.7     4.1  
               
Schedule of the components of deferred tax assets and liabilities

  The components of deferred tax assets and liabilities are as follows (amounts in thousands):

 
  March 31,  
 
  2013   2012  

Deferred tax assets:

             

Net operating loss carry forwards

  $ 154,841   $ 135,458  

Sales allowances and inventory reserves

    14,683     12,937  

Tax credits

    11,664     11,763  

Medical and employee benefits

    7,868     8,960  

Stock options

    3,416     3,574  

Other

    4,615     8,259  
           

Total deferred tax assets before valuation allowance

    197,087     180,951  

Less valuation allowance

    (169,270 )   (149,306 )
           

Total deferred tax assets

    27,817     31,645  
           

Deferred tax liabilities:

             

Depreciation and differences in basis

    (14,629 )   (14,598 )

Amortization of intangibles and debt discounts

    (6,978 )   (9,394 )

Non-amortized intangibles

    (2,542 )   (2,591 )

Other

    (72 )   (949 )
           

Total deferred tax liabilities

    (24,221 )   (27,532 )
           

Net deferred tax asset

  $ 3,596   $ 4,113  
           
Schedule of annual activities included in the deferred tax valuation allowance

 

 

 
  Valuation
Allowance for
Deferred Tax
Assets
 

Balance at March 31, 2010

  $ 162,217  

Benefit to costs and expenses

   
(11,623

)

Deductions

    (7,378 )
       

Balance at March 31, 2011

    143,216  

Benefit to costs and expenses

   
10,206
 

Deductions

    (4,116 )
       

Balance at March 31, 2012

    149,306  

Benefit to costs and expenses

   
23,977
 

Deductions

    (4,013 )
       

Balance at March 31, 2013

  $ 169,270  
       
Schedule of change in net deferred income tax asset (liability)

The change in net deferred income tax asset (liability) for the current year is presented below (amounts in thousands):

Balance at March 31, 2012

  $ 4,113  

Deferred income taxes related to operations

    317  

Deferred income taxes related to purchased subsidiary

     

Deferred income taxes related to other comprehensive income

    (396 )

Foreign currency translation

    (438 )
       

Balance at March 31, 2013

  $ 3,596  
       
Schedule of tax credit carryforwards available

At March 31, 2013, the U.S. consolidated group of companies had the following tax credit carryforwards available (amounts in thousands):

 
  Tax
Credits ($)
  Fiscal Year
of Expiration
 

U.S. foreign tax credits

    8,012     2017  

U.S. research credits

    172     2018  

Texas franchise tax credits

    3,480     2026  
Schedule of reconciliation of gross unrecognized tax benefits (excluding interest and penalties)

A reconciliation of gross unrecognized tax benefits (excluding interest and penalties) is as follows (amounts in thousands):

 
  Fiscal Years Ended March 31,  
 
  2013   2012   2011  

Beginning of fiscal year

  $ 6,321   $ 5,156   $ 5,010  

Additions for tax positions of the current year

    35     433     247  

Additions for tax positions of prior years

    37     820     29  

Reductions for tax positions of prior years

    (640 )   (39 )    

Lapse in statute of limitations

    (358 )       (130 )

Settlements

        (49 )    
               

End of fiscal year

  $ 5,395   $ 6,321   $ 5,156