Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

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Goodwill and Intangible Assets
6 Months Ended
Sep. 30, 2011
Goodwill and Intangible Assets  
Goodwill and Intangible Assets

Note 5. Goodwill and Intangible Assets

 

On June 13, 2011, the Company completed its acquisition of Cornell Dubilier Foil, LLC (whose name was subsequently changed to KEMET Foil Manufacturing, LLC), a Tennessee based manufacturer of etched foils utilized as a core component in the manufacture of aluminum electrolytic capacitors.  The purchase price was $15 million plus or minus an adjustment amount, of which $11.6 million (net of cash received) was paid at closing and $1.0 million is to be paid on each of the first, second and third anniversaries of the closing date.  The Company recorded goodwill of $1.1 million and amortizable intangibles of $1.7 million.  The allocation of the purchase price to specific assets and liabilities was based on the relative fair value of all assets and liabilities.  Factors contributing to the purchase price which resulted in the goodwill (which is tax deductible) include the trained workforce. Pro forma results are not presented because the acquisition was not material.

 

The following table highlights the Company’s intangible assets (amounts in thousands):

 

 

 

September 30, 2011

 

March 31, 2011

 

 

 

Carrying

 

Accumulated

 

Carrying

 

Accumulated

 

 

 

Amount

 

Amortization

 

Amount

 

Amortization

 

Indefinite Lived Intangibles:

 

 

 

 

 

 

 

 

 

Goodwill

 

$

1,092

 

$

—

 

$

—

 

$

—

 

Trademarks

 

7,644

 

—

 

7,644

 

—

 

Unamortized Intangibles

 

8,736

 

—

 

7,644

 

—

 

 

 

 

 

 

 

 

 

 

 

Amortized Intangibles:

 

 

 

 

 

 

 

 

 

Customer relationships, patents and other (3-18 years)

 

21,577

 

8,984

 

20,910

 

8,462

 

 

 

 

 

 

 

 

 

 

 

 

 

$

30,313

 

$

8,984

 

$

28,554

 

$

8,462

 

 

The Company completed its annual impairment test on the indefinite lived intangible assets in the first quarter of fiscal year 2012 and concluded no impairment existed.