Quarterly report pursuant to Section 13 or 15(d)

Impairment Charges

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Impairment Charges
9 Months Ended
Dec. 31, 2011
Impairment Charges  
Impairment Charges

Note 3. Impairment Charges

 

During the third quarter of fiscal year 2012, the Company incurred impairment charges totaling $15.8 million related to its Tantalum Business Group (“Tantalum”).  Due to customer demands for lower Equivalent Series Resistance (“ESR”) capacitors the Company evaluated the costs it would need to incur in order to modify the product line in Evora, Portugal to enable it to produce lower ESR capacitors.  Based on this evaluation, the Company has idled equipment with a net carrying value of $15.8 million and plans to dispose of the equipment.  The impairment amount of $15.8 million was the carrying amount of the equipment less the scrap value net of disposal costs.  The impairment charge is recorded on the Condensed Consolidated Statements of Operations line item “Write down of long-lived assets” in the three and nine months ended December 31, 2011.