Quarterly report pursuant to Section 13 or 15(d)

Write Down of Long-Lived Assets

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Write Down of Long-Lived Assets
6 Months Ended
Sep. 30, 2012
Write Down of Long-Lived Assets.  
Write Down of Long-Lived Assets

Note 4. Write Down of Long-Lived Assets

 

During the second quarter of fiscal year 2013, the Company incurred impairment charges totaling $4.2 million related to the Film and Electrolytic Business Group (“Film and Electrolytic”). In connection with the consolidation of two manufacturing facilities within Italy, the Company obtained appraisals for each of these facilities.  These appraisals indicated that there was a decrease in the market price of the manufacturing facilities, and therefore, the carrying amounts for these manufacturing facilities were reviewed for recoverability.  It was determined that the carrying amounts of the manufacturing facilities were not recoverable since they exceeded the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). The impairment was measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value.  The Company utilized the market approach to estimate fair value of the long-lived asset group.  The impairment charge is recorded on the Condensed Consolidated Statements of Operations line item “Write down of long-lived assets” in the second quarter of fiscal year 2013.