Annual report pursuant to Section 13 and 15(d)

Equity Method Investments

v3.20.1
Equity Method Investments
12 Months Ended
Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments Equity Method Investments
The following table provides a reconciliation of equity method investments to the Company's Consolidated Balance Sheets (amounts in thousands):
 
 
March 31,
 
 
2020
 
2019
Nippon Yttrium Co., Ltd ("NYC")
 
$
8,617

 
$
8,215

NT Sales Co., Ltd ("NTS")
 
1,509

 
1,218

KEMET Jianghai Electronics Components Co., Ltd (“KEMET Jianghai”)
 
6,467

 
2,515

Novasentis
 

 
977

 
 
$
16,593

 
$
12,925


TOKIN's Joint Ventures - NYC and NTS
NYC was established in 1966 by TOKIN and Mitsui Mining and Smelting Co., Ltd (“Mitsui”). NYC was established to commercialize yttrium oxides and the Company owns 30% of NYC's stock. The carrying amount of the Company's equity investment in NYC was $8.6 million and $8.2 million as of March 31, 2020 and 2019, respectively.
NTS was established in 2004 by TOKIN. However subsequent to its formation, TOKIN sold 67% of its stock. NTS provides world-class electronic devices by utilizing global procurement networks and the Company owns 33% of NTS' stock. During the year ended March 31, 2020, a significant portion of NTS' sales were TOKIN’s products. The carrying amount of the Company's equity investment in NTS was $1.5 million and $1.2 million as of March 31, 2020 and 2019, respectively.
Summarized transactions between TOKIN and NTS are as follows (amounts in thousands):
 
 
Fiscal Year Ended March 31,
 
 
2020
 
2019
 
2018
KEMET's sales to NTS
 
$
49,841

 
$
49,740

 
$
52,883

NTS' sales to KEMET
 
1,112

 
2,501

 
1,616


KEMET JIANGHAI Joint Venture
On January 29, 2018, KEC entered into a joint venture agreement (the “Agreement”) with Jianghai (Nantong) Film Capacitor Co., Ltd (“Jianghai Film”), a subsidiary of Nantong Jianghai Capacitor Co., Ltd (“Jianghai”) for the formation of KEMET Jianghai Electronic Components Co. Ltd., a limited liability company located in Nantong, China. KEMET Jianghai was officially formed on May 16, 2018 to manufacture axial electrolytic capacitors and (H)EV Film DC brick capacitors, for distribution through the KEMET and Jianghai Film sales channels. During fiscal year 2019 the Company signed an amendment to the Agreement with Jianghai Film to expand the scope of KEMET Jianghai to also produce solid aluminum capacitors and aluminum electrolytic capacitors. The Company's ownership percentage is 50.0% and the Company and Jianghai Film are equally represented on the joint venture’s board of directors.     
The Company accounts for its investment using the equity method due to its ability to influence the joint venture's decisions. As of March 31, 2020, and 2019, the carrying amount of the Company's equity investment in KEMET Jianghai was $6.5 million and $2.5 million, respectively.
Summarized transactions between KEMET and KEMET Jianghai were as follows (amounts in thousands):
 
 
Fiscal Year Ended March 31,
 
 
2020
 
2019
KEMET Jianghai sales to KEMET
 
$
2,131

 
$
56


Investment in Novasentis
During fiscal year 2018, KEMET invested in Novasentis, a leading developer of film-based haptic actuators and accounted for its investment using the equity method of accounting. In July 2019, the Company purchased the remaining
ownership interests in Novasentis and it became a wholly owned subsidiary. Refer to Note 3, “Acquisition” for further information. The carrying amount of the Company's equity investment in Novasentis was $1.0 million as of March 31, 2019.