|
[X]
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
|
For
the fiscal year ended March 31, 2009
|
|
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
|
For
the transition period from _________
to__________
|
|
Commission
File Number: 1-7201
|
Delaware
|
33-0379007
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
employer identification number)
|
|
801
17th
Avenue South Myrtle Beach, South Carolina
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29577
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
(843)
448-9411
|
||
(Registrant's
telephone number, including area code)
|
||
Securities
registered Pursuant to Section 12(b) of the Act:
|
||
Title
of each class
|
Name
of each exchange on which registered
|
|
Common
Stock, $.01 par value per share
|
New
York Stock Exchange
|
|
Securities
registered pursuant to Section 12(g) of the Act:
None
|
Large
accelerated filer
|
[ ]
|
Accelerated
filer
|
[X]
|
|
Non-accelerated
filer
|
[ ]
|
(Do
not check if a smaller reporting company)
|
Smaller
reporting company
|
[ ]
|
Page
|
||
Item
1.
|
Business. . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
|
3
|
Item
1A.
|
Risk
Factors. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . .
.
|
10
|
Item
1B.
|
Unresolved Staff
Comments . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
|
16
|
Item
2.
|
Properties
. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
|
16
|
Item
3.
|
Legal
Proceedings. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
|
17
|
Item
4.
|
Submission of
Matters to a Vote of Security Holders . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
|
17
|
Item
5.
|
and Issuer Purchases
of Equity Securities. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .
|
17
|
Item
6.
|
Selected Financial
Data. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
|
20
|
Item
7.
|
21
|
|
Item
7A.
|
Quantitative and
Qualitative Disclosures About Market Risk. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
|
33
|
Item
8.
|
Financial Statements
and Supplementary Data. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
|
33
|
Item
9.
|
33
|
|
Item
9A.
|
Controls and
Procedures . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
|
33
|
Item
9B.
|
Other
Information. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . .
|
34
|
Item
10.
|
Directors, Executive
Officers and Corporate Governance . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
|
35
|
Item
11.
|
Executive
Compensation. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
|
35
|
Item
12.
|
Related Stockholder
Matters . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
|
35
|
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence . . . . . . .
. . . . . . . . . . . . . .
|
35
|
Item
14.
|
Principal Accounting
Fees and Services . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . .
|
35
|
Item
15.
|
Exhibits and
Financial Statement Schedules. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
|
36
|
Signatures. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
|
38
|
Business
|
|
Years
Ended March 31,
|
|||||
Sales
revenue: (in thousands)
|
2007
|
2008
|
2009
|
|||
Ceramic
Components
|
$
|
228,136
|
$
|
211,759
|
$
|
165,740
|
Tantalum
Components
|
286,943
|
312,761
|
268,326
|
|||
Advanced
Components
|
376,356
|
433,646
|
434,039
|
|||
Total
Passive Components
|
891,435
|
958,166
|
868,105
|
|||
KDP
and KKC Resale
|
434,857
|
468,186
|
354,258
|
|||
KEC
Resale Connectors
|
74,911
|
86,531
|
76,209
|
|||
Total
KED Resale
|
509,768
|
554,717
|
430,467
|
|||
Connectors
|
97,292
|
106,392
|
91,041
|
|||
Total
Revenue
|
$
|
1,498,495
|
$
|
1,619,275
|
$
|
1,389,613
|
·
|
Code
of Business Conduct and Ethics
|
·
|
Code
of Business Conduct and Ethics Supplement Applicable to the Chief
Executive Officer, Chief Financial Officer, Controllers and Financial
Managers
|
·
|
Corporate
Governance Guidelines
|
·
|
Audit
Committee Charter
|
·
|
Contact
the Board – Whistleblower and Ethics Hotline
Procedures
|
AVX
Corporation
|
Investor
Relations
|
P.O.
Box 867
|
Myrtle
Beach, SC 29578-0867
|
Name
|
Age
|
Position
|
||
John
S.
Gilbertson
|
65
|
Chief
Executive Officer and President
|
||
C.
Marshall Jackson
|
60
|
Executive
Vice President of Sales and Marketing
|
||
Peter
Venuto
|
56
|
Vice
President of Sales
|
||
Carl
L.
Eggerding
|
59
|
Vice
President, Chief Technology Officer
|
||
Kurt
P.
Cummings
|
53
|
Vice
President, Chief Financial Officer, Treasurer and
Secretary
|
||
Keith
Thomas
|
55
|
Vice
President, President of Kyocera Electronic Devices
|
||
Peter
Collis
|
57
|
Vice
President of Tantalum Products
|
||
John
Sarvis
|
59
|
Vice
President of Ceramic Products
|
||
John
Lawing
|
58
|
Vice
President of Advanced
Products
|
Item
1A.
|
|
Credit
risk on our accounts receivable could adversely affect our financial
condition and operating results
|
|
Counterparty
non-performance to derivative transactions could adversely affect our
financial condition and operating
results
|
|
Returns
on pension and retirement plan assets and interest rate changes could
affect our earnings in future
periods
|
·
|
A
global economic slowdown in any one, or all, of our
markets.
|
·
|
Rapid
escalation of the cost of regulatory compliance and
litigation.
|
·
|
Unexpected
government policies and regulations affecting us or our significant
customers’ sales or production
facilities.
|
·
|
Unforeseen
regional conflicts or actions, including but not limited to armed conflict
and trade wars that could impact our, or our customers’ production
capabilities.
|
·
|
Unforeseen
interruptions to our business with our significant customers and suppliers
resulting from but not limited to, strikes, financial instabilities,
computer malfunctions, environmental disruptions or inventory
excesses.
|
Item
1B.
|
Item
2.
|
Location
|
Approximate
Square
Footage
|
Type
of Interest
|
Description
of
Use
|
||
UNITED
STATES
|
|||||
Myrtle
Beach, SC
|
500,000
|
Owned
|
Manufacturing/Research/
Headquarters — PC — CP
|
||
Myrtle
Beach, SC
|
69,000
|
Owned
|
Office/Warehouse
— PC — CP
|
||
Olean,
NY
|
113,000
|
Owned
|
Manufacturing
— PC
|
||
Jacksonville,
FL
|
100,000
|
Owned
|
Manufacturing
— PC
|
||
Huntington
Station, NY
|
94,000
|
Owned
|
Manufacturing/Research—
PC
|
||
Biddeford,
ME
|
74,000
|
Owned
|
Manufacturing
— PC
|
||
Conway,
SC
|
71,000
|
Owned
|
Manufacturing/Office
— PC
|
||
Atlanta,
GA
|
49,000
|
Leased
|
Office/Warehouse
— PC — CP
|
||
Sun
Valley, CA
|
25,000
|
Leased
|
Manufacturing
— PC
|
||
Colorado
Springs, CO
|
15,000
|
Owned
|
Manufacturing
— PC
|
||
NON
U.S.
|
|||||
Tianjin,
China
|
520,000
|
Owned
|
Manufacturing
— PC
|
||
San
Salvador, El Salvador
|
420,000
|
Owned
|
Manufacturing
— PC
|
||
Saint-Apollinaire,
France
|
322,000
|
Leased
|
Manufacturing/Research
— PC
|
||
Lanskroun,
Czech Republic
|
360,000
|
Owned
|
Manufacturing/Warehouse/Research
— PC
|
||
Lanskroun,
Czech Republic
|
187,000
|
Leased
|
Manufacturing/Warehouse
— PC
|
||
Uherske
Hradiste, Czech Republic
|
275,000
|
Owned
|
Manufacturing
— PC — CP
|
||
Uherske
Hradiste, Czech Republic
|
59,000
|
Leased
|
Warehouse
— PC
|
||
Uherske
Hradiste, Czech Republic
|
26,000
|
Leased
|
Manufacturing
— CP
|
||
Penang,
Malaysia
|
190,000
|
Owned
|
Manufacturing
— PC
|
||
Coleraine,
N. Ireland
|
171,000
|
Owned
|
Manufacturing/Research
— PC
|
||
Betzdorf,
Germany
|
115,000
|
Owned
|
Manufacturing
— CP
|
||
Juarez,
Mexico
|
109,000
|
Owned
|
Manufacturing
— PC — CP
|
||
Jerusalem,
Israel
|
88,000
|
Leased
|
Manufacturing/Research
— PC
|
||
Hong
Kong
|
30,000
|
Owned
|
Warehouse/Office
— PC — CP
|
Item
3.
|
Common
Stock Price Range
|
Dividends
Declared
|
||||||||||||
2008
|
2009
|
Per
Share
|
|||||||||||
High
|
Low
|
High
|
Low
|
2008
|
2009
|
||||||||
First
Quarter
|
$
|
18.40
|
$
|
15.00
|
$
|
13.79
|
$
|
11.22
|
$
|
0.0400
|
$
|
0.0400
|
|
Second
Quarter
|
18.16
|
13.90
|
11.82
|
9.71
|
0.0400
|
0.0400
|
|||||||
Third
Quarter
|
17.54
|
13.00
|
10.37
|
7.10
|
0.0400
|
0.0400
|
|||||||
Fourth
Quarter
|
14.00
|
11.74
|
9.63
|
7.32
|
0.0400
|
0.0400
|
3/31/04
|
3/31/05
|
3/31/06
|
3/31/07
|
3/31/08
|
3/31/09
|
||
AVX
-NYSE
|
$ 100
|
$ 75
|
$ 110
|
$ 95
|
$ 81
|
$ 58
|
|
S
& P 500
|
$ 100
|
$ 107
|
$ 119
|
$ 133
|
$ 127
|
$ 78
|
|
Peer
Group
|
$ 100
|
$ 58
|
$ 64
|
$ 66
|
$ 44
|
$ 20
|
Period
|
Total
Number of Shares Purchased (1) (2)
|
Average
Price Paid Per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(1)
(2)
|
Maximum
Number of Shares that may yet be Purchased Under the Plans or Programs
(1)
(2)
|
||||
1/1/09
- 1/31/09
|
-
|
$ -
|
-
|
8,105,828
|
||||
2/1/09
- 2/28/09
|
146,000
|
8.66
|
146,000
|
7,959,828
|
||||
3/1/09
- 3/31/09
|
75,200
|
8.28
|
75,200
|
7,884,628
|
||||
Total
|
221,200
|
$ 8.53
|
221,200
|
7,884,628
|
(1)
|
On
October 19, 2005, the Board of Directors of the Company authorized the
repurchase of 5,000,000 shares of our common stock from time to time in
the open market. The repurchased shares are held as treasury
stock and are available for general corporate
purposes.
|
(2)
|
On
October 17, 2007, the Board of Directors of the Company authorized the
repurchase of an additional 5,000,000 shares of our common stock from time
to time in the open market. The repurchased shares are held as
treasury stock and are available for general corporate
purposes.
|
Item
6.
|
2005
|
2006
|
2007
|
2008
|
2009
|
||||||
Operating
Results Data:
|
||||||||||
Net
sales
|
$
|
1,283,202
|
$
|
1,333,208
|
$
|
1,498,495
|
$
|
1,619,275
|
$
|
1,389,613
|
Cost
of sales
|
1,105,164
|
1,125,917
|
1,201,337
|
1,328,491
|
1,158,196
|
|||||
Restructuring
charges
|
-
|
-
|
-
|
2,421
|
15,123
|
|||||
Gross
profit
|
178,038
|
207,291
|
297,158
|
288,363
|
216,294
|
|||||
Selling,
general and administrative expenses
|
107,429
|
111,110
|
116,482
|
126,848
|
121,897
|
|||||
Environmental
charge
|
-
|
-
|
-
|
-
|
18,200
|
|||||
Restructuring
charges
|
-
|
-
|
-
|
-
|
3,504
|
|||||
In-process
research and development charge
|
-
|
-
|
-
|
390
|
-
|
|||||
Other
operating income
|
-
|
-
|
-
|
-
|
(4,051)
|
|||||
Profit
from operations
|
70,609
|
96,181
|
180,676
|
161,125
|
76,744
|
|||||
Interest
income
|
12,739
|
22,999
|
40,033
|
43,226
|
21,112
|
|||||
Interest
expense
|
(376)
|
(1,454)
|
-
|
(456)
|
(139)
|
|||||
Other,
net
|
5,072
|
1,894
|
(3,143)
|
(530)
|
(578)
|
|||||
Income
before income taxes
|
88,044
|
119,620
|
217,566
|
203,365
|
97,139
|
|||||
Provision
for income taxes
|
32,312
|
37,868
|
63,701
|
53,892
|
16,293
|
|||||
Net
income
|
$
|
55,732
|
$
|
81,752
|
$
|
153,865
|
$
|
149,473
|
$
|
80,846
|
Income
per share:
|
||||||||||
Basic
|
$
|
0.32
|
$
|
0.47
|
$
|
0.89
|
$
|
0.87
|
$
|
0.47
|
Diluted
|
$
|
0.32
|
$
|
0.47
|
$
|
0.89
|
$
|
0.87
|
$
|
0.47
|
Weighted
average common shares outstanding:
|
||||||||||
Basic
|
173,450
|
172,532
|
172,047
|
171,487
|
170,616
|
|||||
Diluted
|
173,906
|
173,053
|
172,751
|
172,065
|
170,689
|
|||||
Cash
dividends declared per common share
|
$
|
0.15
|
$
|
0.15
|
$
|
0.15
|
$
|
0.16
|
$
|
0.16
|
As
of March 31,
|
2005
|
2006
|
2007
|
2008
|
2009
|
|||||
Balance
Sheet Data:
|
||||||||||
Working
capital
|
$
|
921,564
|
$
|
1,032,742
|
$
|
1,214,035
|
$
|
1,156,689
|
$
|
983,102
|
Total
assets
|
1,689,749
|
1,675,208
|
1,899,536
|
2,109,078
|
1,872,529
|
|||||
Stockholders'
equity
|
1,439,251
|
1,448,109
|
1,635,279
|
1,829,351
|
1,669,753
|
|||||
Years
Ended March 31,
|
2005
|
2006
|
2007
|
2008
|
2009
|
|||||
Other
Data:
|
||||||||||
Capital
expenditures
|
$
|
48,324
|
$
|
41,328
|
$
|
51,881
|
$
|
70,886
|
$
|
44,205
|
Research,
development and engineering expenses
|
36,699
|
30,904
|
29,397
|
35,465
|
31,477
|
(in
thousands)
|
Years
Ended March 31,
|
|||||
Sales
revenue:
|
2007
|
2008
|
2009
|
|||
Ceramic
Components
|
$
|
228,136
|
$
|
211,759
|
$
|
165,740
|
Tantalum
Components
|
286,943
|
312,761
|
268,326
|
|||
Advanced
Components
|
376,356
|
433,646
|
434,039
|
|||
Total
Passive Components
|
891,435
|
958,166
|
868,105
|
|||
KDP
and KKC Resale
|
434,857
|
468,186
|
354,258
|
|||
KEC
Resale Connectors
|
74,911
|
86,531
|
76,209
|
|||
Total
KED Resale
|
509,768
|
554,717
|
430,467
|
|||
Connectors
|
97,292
|
106,392
|
91,041
|
|||
Total
Revenue
|
$
|
1,498,495
|
$
|
1,619,275
|
$
|
1,389,613
|
FY
2011 -
|
FY
2013 -
|
|||||||||
Contractual
Obligations (in thousands)
|
Total
|
FY
2010
|
FY
2012
|
FY
2014
|
Thereafter
|
|||||
Operating
Leases
|
$
|
22,637
|
$
|
6,092
|
$
|
9,605
|
$
|
4,489
|
$
|
2,451
|
·
|
FSP
FAS 157-4, “Determining Fair Value When the Volume and Level of
Activity for the Asset or Liability Have Significantly Decreased and
Identifying Transactions That Are Not Orderly” (“FSP FAS 157-4”),
addresses the determination of fair values when there is no active market
or where the price inputs represent distressed sales. FSP FAS 157-4
reaffirms the view in SFAS 157 that the objective of fair value
measurement is to reflect an asset’s sale price in an orderly transaction
at the date of the financial
statements.
|
·
|
FSP
FAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of
Financial Instruments”, enhances consistency in financial reporting by
increasing the frequency of fair value disclosures to a quarterly instead
of annual basis for any financial instruments that are not currently
reflected on the balance sheet at fair
value.
|
·
|
FSP
FAS 115-2 and FAS 124-2, “Recognition and Presentation of
Other-Than-Temporary Impairments” amends the other-than-temporary
impairment guidance for debt securities and presentation and disclosure
requirement of other-than-temporary impairments of debt and equity
securities.
|
Page
|
|
39
|
|
40
|
|
41
|
|
42
|
|
43
|
|
71
|
Item
9B.
|
Item
11.
|
Item
12.
|
(a)
|
Financial
Statements and Financial Statement Schedules - See Index to Consolidated
Financial Statements at Item 8 of this report.
|
(b)
|
Exhibits:
|
As
indicated below, certain of the exhibits to this report are hereby
incorporated by reference from other documents on file with the Securities
and Exchange Commission with which they are filed.
|
|
3.1
|
Restated
Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to
Registration Statement on Form S-1 (File No. 33-94310) of the Company (the
"Form S-1")).
|
3.2
|
By-laws
of AVX Corporation as Amended and Restated March 30, 2009 (incorporated by
reference to Exhibit 3.2 of the Current Report on Form 8-K filed with the
Securities and Exchange Commission on March 31, 2009).
|
*10.1
|
Amended
AVX Corporation 1995 Stock Option Plan as amended through October 24, 2000
(incorporated by reference to Exhibit 10.11 to the Quarterly Report on
Form 10-Q of the Company for the quarter ended December 31,
2000).
|
*10.2
|
Amended
Non-Employee Directors' Stock Option Plan as amended through February 4,
2003 (incorporated by reference to Exhibit 10.1 to the Quarterly Report on
Form 10-Q of the Company for the quarter ended December 31,
2002).
|
10.3
|
Products
Supply and Distribution Agreement by and between Kyocera Corporation and
AVX Corporation (incorporated by reference to Exhibit 10.4 to the Annual
Report on Form 10-K of the Company for the year ended March 31,
2000).
|
*10.4
|
|
*10.5
|
Deferred
Compensation Plan for Eligible Board Members (incorporated by reference to
Exhibit 10.2 to the Quarterly Report on Form 10-Q of the Company for the
quarter ended December 31, 2002).
|
*10.6
|
Employment
Agreement between AVX Corporation and John S. Gilbertson dated December
19, 2008 (incorporated by reference to Exhibit 10.10 to the Quarterly
Report on Form 10-Q of the Company for the quarter ended December 31,
2008).
|
*10.7
|
AVX
Corporation 2004 Stock Option Plan as amended through July 23, 2008
(incorporated by reference to Exhibit 10.11 to the Annual Report on Form
10-K of the Company for the year ended March 31, 2004).
|
*10.8
|
AVX
Corporation 2004 Non-Employee Directors' Stock Option Plan as amended
through July 28, 2008 (incorporated by reference to Exhibit 10.12 to the
Annual Report on Form 10-K of the Company for the year ended March 31,
2004).
|
*10.9
|
Form
of Notice of Grant of Stock Options and Option Agreement for awards
pursuant to AVX Corporation 2004 Stock Option Plan and AVX Corporation
2004 Non-Employee Directors’ Stock Option Plan (incorporated by reference
to Exhibit 10.1 to the Quarterly Report on Form 10-Q of the Company for
the quarterly period ended June 30, 2005).
|
*10.10
|
AVX
Corporation Management Incentive Plan (incorporated by reference to
Exhibit 10.13 to the Annual Report on Form 10-K of the Company for the
year ended March 31, 2004).
|
10.11
|
Machinery
and Equipment Purchase Agreement by and between Kyocera Corporation and
AVX Corporation (incorporated by reference to Exhibit 10.14 to the Annual
Report on Form 10-K of the Company for the year ended March 31,
2005).
|
10.12
|
Materials
Supply Agreement by and between Kyocera Corporation and AVX Corporation
(incorporated by reference to Exhibit 10.15 to the Annual Report on Form
10-K of the Company for the year ended March 31, 2005).
|
10.13
|
Agreement
and Plan of Merger, dated as of June 15, 2007, by and among AVX
Corporation, Admiral Byrd Acquisition Sub, Inc. and American Technical
Ceramics Corp. (incorporated by reference to Exhibit 2 to the Schedule 13D
filed by the Company with the Securities and Exchange Commission on June
25, 2007).
|
10.14
|
Disclosure
and Option to License Agreement effective as of April 1, 2008 by and
between Kyocera Corporation and AVX Corporation. (incorporated by
reference to Exhibit 10.1 to the Current Report on Form 8-K of the Company
filed with the Securities and Exchange Commission on March 25,
2008).
|
21.1
|
|
23.1
|
|
24.1
|
|
31.1
|
|
31.2
|
|
32.1
|
|
*
Agreement relates to executive
compensation.
|
AVX
Corporation
|
by: /s/ Kurt P.
Cummings
|
KURT
P. CUMMINGS
|
Vice
President, Chief Financial Officer, Treasurer and
Secretary
|
Dated: May
20, 2009
|
Signature
|
Title
|
Date
|
|
*
|
|||
Kazuo
Inamori
|
Chairman
Emeritus of the Board
|
May
20, 2009
|
|
*
|
|||
John
S. Gilbertson
|
Chairman
of the Board, Chief Executive Officer and President
|
May
20, 2009
|
|
*
|
|||
Donald
B. Christiansen
|
Director
|
May
20, 2009
|
|
*
|
|||
Kensuke
Itoh
|
Director
|
May
20, 2009
|
|
*
|
|||
Makoto
Kawamura
|
Director
|
May
20, 2009
|
|
*
|
|||
Rodney
N. Lanthorne
|
Director
|
May
20, 2009
|
|
*
|
|||
Joseph
Stach
|
Director
|
May
20, 2009
|
|
*
|
|||
David
DeCenzo
|
Director
|
May
20, 2009
|
|
*
|
|||
Tetsuo
Kuba
|
Director
|
May
20, 2009
|
|
*
|
|||
Yuzo
Yamamura
|
Director
|
May
20, 2009
|
|
*
by: /s/ Kurt P.
Cummings
|
|||
KURT
P. CUMMINGS, Attorney-in-Fact for each of the persons
indicated
|
March
31,
|
||||
Assets
|
2008
|
2009
|
||
Current
assets:
|
||||
Cash
and cash equivalents
|
$
|
568,864
|
$
|
522,709
|
Short-term
investments in securities
|
50,000
|
-
|
||
Available-for-sale
securities
|
44,790
|
24,014
|
||
Accounts
receivable - trade, net
|
198,641
|
141,525
|
||
Accounts
receivable - affiliates
|
5,121
|
2,190
|
||
Inventories
|
421,216
|
365,003
|
||
Deferred
income taxes
|
38,940
|
35,016
|
||
Prepaid
and other
|
49,633
|
42,047
|
||
Total
current assets
|
1,377,205
|
1,132,504
|
||
Long-term
investments in securities
|
108,999
|
199,192
|
||
Long-term
available-for-sale securities
|
42,666
|
16,565
|
||
Property
and equipment:
|
||||
Land
|
26,346
|
25,705
|
||
Buildings
and improvements
|
329,486
|
301,007
|
||
Machinery
and equipment
|
1,330,493
|
1,125,159
|
||
Construction
in progress
|
20,940
|
15,651
|
||
1,707,265
|
1,467,522
|
|||
Accumulated
depreciation
|
(1,390,693)
|
(1,204,135)
|
||
316,572
|
263,387
|
|||
Goodwill
|
159,013
|
162,263
|
||
Intangible
assets - net
|
95,046
|
90,586
|
||
Other
assets
|
9,577
|
8,032
|
||
Total
Assets
|
$
|
2,109,078
|
$
|
1,872,529
|
Liabilities
and Stockholders' Equity
|
||||
Current
liabilities:
|
||||
Accounts
payable - trade
|
$
|
66,601
|
$
|
25,294
|
Accounts
payable - affiliates
|
70,551
|
38,681
|
||
Income
taxes payable
|
10,616
|
2,928
|
||
Accrued
payroll and benefits
|
45,987
|
39,227
|
||
Accrued
expenses
|
26,761
|
43,272
|
||
Total
current liabilities
|
220,516
|
149,402
|
||
Pensions
|
25,826
|
30,335
|
||
Other
liabilities
|
33,385
|
23,039
|
||
Total
non-current liabilities
|
59,211
|
53,374
|
||
Total
Liabilities
|
279,727
|
202,776
|
||
Commitments
and contingencies (Notes 12)
|
||||
Stockholders'
Equity:
|
||||
Preferred
stock, par value $.01 per
share:
|
-
|
-
|
||
Authorized,
20,000 shares; None issued and outstanding
|
||||
Common
stock, par value $.01 per share:
|
1,764
|
1,764
|
||
Authorized,
300,000 shares; issued, 176,368 shares; outstanding,
171,066
|
||||
and
170,384 shares for 2008 and 2009, respectively
|
||||
Additional
paid-in capital
|
342,843
|
343,275
|
||
Retained
earnings
|
1,349,349
|
1,402,202
|
||
Accumulated
other comprehensive income
|
207,350
|
64
|
||
Treasury
stock, at cost,
|
(71,955)
|
(77,552)
|
||
5,303 and 5,984
shares for 2008 and 2009, respectively
|
||||
Total
Stockholders' Equity
|
1,829,351
|
1,669,753
|
||
Total
Liabilities and Stockholders' Equity
|
$
|
2,109,078
|
$
|
1,872,529
|
Years
Ended March 31,
|
2007
|
2008
|
2009
|
|||
Net
sales
|
$
|
1,498,495
|
$
|
1,619,275
|
$
|
1,389,613
|
Cost
of sales
|
1,201,337
|
1,328,491
|
1,158,196
|
|||
Restructuring
charges
|
-
|
2,421
|
15,123
|
|||
Gross
profit
|
297,158
|
288,363
|
216,294
|
|||
Selling,
general and administrative expenses
|
116,482
|
126,848
|
121,897
|
|||
Environmental
charge
|
-
|
-
|
18,200
|
|||
Restructuring
charges
|
-
|
-
|
3,504
|
|||
In-process
research and development charge
|
-
|
390
|
-
|
|||
Other
operating income
|
-
|
-
|
(4,051)
|
|||
Profit
from operations
|
180,676
|
161,125
|
76,744
|
|||
Other
income (expense):
|
||||||
Interest
income
|
40,033
|
43,226
|
21,112
|
|||
Interest
expense
|
-
|
(456)
|
(139)
|
|||
Other,
net
|
(3,143)
|
(530)
|
(578)
|
|||
Income
before income taxes
|
217,566
|
203,365
|
97,139
|
|||
Provision
for income taxes
|
63,701
|
53,892
|
16,293
|
|||
Net
income
|
$
|
153,865
|
$
|
149,473
|
$
|
80,846
|
Income
per share:
|
||||||
Basic
|
$
|
0.89
|
$
|
0.87
|
$
|
0.47
|
Diluted
|
$
|
0.89
|
$
|
0.87
|
$
|
0.47
|
Accumulated
|
|||||||||||||||
Common
Stock
|
Additional
|
Other
|
|||||||||||||
Number
|
Treasury
|
Paid-In
|
Retained
|
Comprehensive
|
Comprehensive
|
||||||||||
Of
Shares
|
Amount
|
Stock
|
Capital
|
Earnings
|
Income
|
Total
|
Income
|
||||||||
Balance,
March 31, 2006
|
172,216
|
$1,764
|
$(53,265)
|
$338,784
|
$1,098,237
|
$62,589
|
$1,448,109
|
$ 44,757
|
|||||||
Net
income
|
153,865
|
153,865
|
153,865
|
||||||||||||
Other
comprehensive
|
|||||||||||||||
income
|
69,080
|
69,080
|
69,080
|
||||||||||||
Dividends
of $0.15
|
|||||||||||||||
per
share
|
(25,819)
|
(25,819)
|
|||||||||||||
Stock-based
|
|||||||||||||||
compensation
expense
|
2,629
|
2,629
|
|||||||||||||
Stock
option activity
|
430
|
5,581
|
(1,169)
|
4,412
|
|||||||||||
Tax
benefit of stock
|
|||||||||||||||
option
exercises
|
667
|
667
|
|||||||||||||
Treasury
stock purchased
|
(972)
|
(14,807)
|
(14,807)
|
||||||||||||
Adjustment
to initially
|
|||||||||||||||
apply
SFAS No. 158, net
of tax
in the amount of $1,299
|
(2,857)
|
(2,857)
|
|||||||||||||
Balance,
March 31, 2007
|
171,674
|
$1,764
|
$(62,491)
|
$340,911
|
$1,226,283
|
$128,812
|
$1,635,279
|
$ 222,945
|
|||||||
Net
income
|
149,473
|
149,473
|
149,473
|
||||||||||||
Other
comprehensive
|
|||||||||||||||
income
|
78,538
|
78,538
|
78,538
|
||||||||||||
Dividends
of $0.15
|
|||||||||||||||
per
share
|
(27,466)
|
(27,466)
|
|||||||||||||
Stock-based
|
|||||||||||||||
compensation
expense
|
2,749
|
2,749
|
|||||||||||||
Adjustment
to initially
|
|||||||||||||||
apply
FIN 48
|
1,059
|
1,059
|
|||||||||||||
Stock
option activity
|
571
|
7,677
|
(1,811)
|
5,866
|
|||||||||||
Tax
benefit of stock
|
|||||||||||||||
option
exercises
|
994
|
994
|
|||||||||||||
Treasury
stock purchased
|
(1,179)
|
(17,141)
|
(17,141)
|
||||||||||||
Balance,
March 31, 2008
|
171,066
|
$1,764
|
$(71,955)
|
$342,843
|
$ 1,349,349
|
$ 207,350
|
$1,829,351
|
$ 228,011
|
|||||||
Net
income
|
80,846
|
80,846
|
80,846
|
||||||||||||
Other
comprehensive
|
|||||||||||||||
loss
|
(207,286)
|
(207,286)
|
(207,286)
|
||||||||||||
Dividends
of $0.16
|
|||||||||||||||
per
share
|
(27,316)
|
(27,316)
|
|||||||||||||
Stock-based
|
|||||||||||||||
compensation
expense
|
2,488
|
2,488
|
|||||||||||||
Adjustment
to initially
|
|||||||||||||||
apply
SFAS No. 158,
remeasurement
|
(677)
|
(677)
|
|||||||||||||
Stock
option activity
|
442
|
5,825
|
(2,296)
|
3,529
|
|||||||||||
Tax
benefit of stock
|
|||||||||||||||
option
exercises
|
240
|
240
|
|||||||||||||
Treasury
stock purchased
|
(1,124)
|
(11,422)
|
(11,422)
|
||||||||||||
Balance,
March 31, 2009
|
170,384
|
$1,764
|
$(77,552)
|
$343,275
|
$1,402,202
|
$ 64
|
$
1,669,753
|
$
(126,440)
|
Consolidated
Statements of Cash Flows
|
Years
Ended March 31,
|
2007
|
2008
|
2009
|
|||
Operating
Activities:
|
||||||
Net
income
|
$
|
153,865
|
$
|
149,473
|
$
|
80,846
|
Adjustment
to reconcile net income to net cash from operating
activities:
|
||||||
Depreciation
and amortization
|
53,859
|
55,546
|
66,198
|
|||
In-process
research and development charge
|
-
|
390
|
-
|
|||
Stock-based
compensation expense
|
2,629
|
2,749
|
2,488
|
|||
Deferred
income taxes
|
11,245
|
(460)
|
(9,483)
|
|||
Loss
on pro rata distribution of available-for-sale securities
|
-
|
980
|
-
|
|||
(Gain)
Loss on available-for-sale securities
|
-
|
(1,748)
|
4,216
|
|||
Gain
on sale of property, plant & equipment, net of
retirements
|
(88)
|
(189)
|
(2,847)
|
|||
Changes
in operating assets and liabilities:
|
||||||
Accounts
receivable
|
(12,402)
|
6,320
|
44,648
|
|||
Inventories
|
(6,721)
|
(23,363)
|
7,668
|
|||
Accounts
payable and accrued expenses
|
42,998
|
5,968
|
(125,109)
|
|||
Income
taxes payable
|
6,139
|
(3,506)
|
(20,124)
|
|||
Other
assets
|
(2,921)
|
5,313
|
(1,153)
|
|||
Other
liabilities
|
(3,574)
|
(15,610)
|
17,643
|
|||
Net
cash provided by (used in) operating activities
|
245,029
|
181,863
|
64,991
|
|||
Investing
Activities:
|
||||||
Purchases
of property and equipment
|
(51,881)
|
(70,886)
|
(44,205)
|
|||
Purchase
of business, net of cash acquired
|
-
|
(226,107)
|
||||
Pro
rata distribution of available-for-sale securities
|
-
|
(114,705)
|
||||
Sales
and redemptions of available-for-sale securities
|
-
|
26,461
|
42,447
|
|||
Purchases
of investment securities
|
(228,000)
|
(159,000)
|
(309,193)
|
|||
Sales
and redemptions of investment securities
|
238,181
|
284,000
|
269,000
|
|||
Proceeds
from property, plant & equipment dispositions
|
88
|
2,261
|
6,106
|
|||
Contingent
consideration for a prior acquisition
|
-
|
-
|
(6,677)
|
|||
Other
investing activities
|
-
|
-
|
202
|
|||
Net
cash provided by (used in) investing activities
|
(41,612)
|
(257,976)
|
(42,320)
|
|||
Financing
Activities:
|
||||||
Repayment
of debt
|
-
|
(5,367)
|
-
|
|||
Dividends
paid
|
(25,819)
|
(27,466)
|
(27,316)
|
|||
Purchase
of treasury stock
|
(14,807)
|
(17,141)
|
(11,422)
|
|||
Proceeds
from exercise of stock options
|
4,412
|
5,866
|
3,529
|
|||
Excess
tax benefit from stock-based payment arrangements
|
667
|
994
|
240
|
|||
Net
cash provided by (used in) financing activities
|
(35,547)
|
(43,114)
|
(34,969)
|
|||
Effect
of exchange rate on cash
|
11,186
|
3,709
|
(33,857)
|
|||
Increase
(decrease) in cash and cash equivalents
|
179,056
|
(115,518)
|
(46,155)
|
|||
Cash
and cash equivalents at beginning of period
|
505,326
|
684,382
|
568,864
|
|||
Cash
and cash equivalents at end of period
|
$
|
684,382
|
$
|
568,864
|
$
|
522,709
|
See accompanying notes to
consolidated financial
statements.
|
1.
|
Summary
of Significant Accounting Policies:
|
Years
Ended March 31,
|
||||||
2007
|
2008
|
2009
|
||||
Engineering
expense:
|
||||||
Cost
of sales
|
$
|
16,534
|
$
|
20,619
|
$
|
17,283
|
Selling
general and administrative expense
|
1,578
|
2,396
|
2,491
|
|||
Total
engineering expense
|
$
|
18,112
|
$
|
23,015
|
$
|
19,774
|
·
|
FSP
FAS 157-4, “Determining Fair Value When the Volume and Level of
Activity for the Asset or Liability Have Significantly Decreased and
Identifying Transactions That Are Not Orderly” (“FSP FAS 157-4”),
addresses the determination of fair values when there is no active market
or where the price inputs represent distressed sales. FSP FAS 157-4
reaffirms the view in SFAS 157 that the objective of fair value
measurement is to reflect an asset’s sale price in an orderly transaction
at the date of the financial
statements.
|
·
|
FSP
FAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of
Financial Instruments”, enhances consistency in financial reporting by
increasing the frequency of fair value disclosures to a quarterly instead
of annual basis for any financial instruments that are not currently
reflected on the balance sheet at fair
value.
|
·
|
FSP
FAS 115-2 and FAS 124-2, “Recognition and Presentation of
Other-Than-Temporary Impairments” amends the other-than-temporary
impairment guidance for debt securities and presentation and disclosure
requirement of other-than-temporary impairments of debt and equity
securities.
|
2.
|
Earnings Per Share:
|
2007
|
2008
|
2009
|
||||
Net
Income
|
$
|
153,865
|
$
|
149,473
|
$
|
80,846
|
Computation
of Basic EPS:
|
||||||
Weighted
Average Shares Outstanding used in Computing Basic EPS
|
172,047
|
171,487
|
170,616
|
|||
Basic
earnings per share
|
$
|
0.89
|
$
|
0.87
|
$
|
0.47
|
Computation
of Diluted EPS:
|
||||||
Weighted
Average Shares Outstanding
|
172,047
|
171,487
|
170,616
|
|||
Effect
of stock options
|
704
|
578
|
73
|
|||
Shares
used in Computing Diluted EPS (1)
|
172,751
|
172,065
|
170,689
|
|||
Diluted
Income per share
|
$
|
0.89
|
$
|
0.87
|
$
|
0.47
|
3.
|
Comprehensive
Income:
|
Years
Ended March 31,
|
|||||||
2007
|
2008
|
2009
|
|||||
Net
income
|
$
|
153,865
|
$
|
149,473
|
$
|
80,846
|
|
Other
comprehensive income (loss):
|
|||||||
Pension
liability and other savings plan liability adjustment
|
(1,464)
|
6,677
|
(4,882)
|
||||
Foreign
currency translation adjustment
|
69,597
|
70,909
|
(196,686)
|
||||
Foreign
currency cash flow hedges
|
947
|
2,041
|
(3,954)
|
||||
Unrealized
loss on available-for-sale securities
|
-
|
(1,089)
|
(1,764)
|
||||
Comprehensive
income (loss)
|
$
|
222,945
|
$
|
228,011
|
$
|
(126,440)
|
Years
Ended March 31,
|
|||||||
2007
|
2008
|
2009
|
|||||
Pension
liability and other savings plan liability adjustment
|
$
|
(31,825)
|
$
|
(22,291)
|
$
|
(27,173)
|
|
Foreign
currency translation adjustment
|
156,929
|
227,838
|
31,152
|
||||
Foreign
currency cash flow hedges
|
851
|
2,892
|
(1,062)
|
||||
Unrealized
loss on available-for-sale securities
|
-
|
(1,089)
|
(2,853)
|
||||
Adjustment
to initially apply SFAS 158
|
2,857
|
-
|
-
|
||||
Balance
at end of period
|
$
|
128,812
|
$
|
207,350
|
$
|
64
|
4.
|
Fair
Value:
|
§
|
Level 1: Unadjusted
quoted prices in active markets for identical assets and
liabilities.
|
§
|
Level 2: Observable
inputs other than those included in Level 1. For example, quoted prices
for similar assets or liabilities in active markets or quoted prices for
identical assets or liabilities in inactive
markets.
|
§
|
Level 3: Unobservable
inputs reflecting management’s own assumptions about the inputs used in
pricing the asset or liability.
|
Based
on
|
||||
Fair
Value at March 31, 2009
|
Quoted
prices in active markets
(Level
1)
|
Other
observable inputs
(Level
2)
|
Unobservable
inputs
(Level
3)
|
|
Assets
measured at fair value on a recurring basis:
|
||||
Available-for-sale
investment securities - short-term
|
$ 24,014
|
$ -
|
$ 19,813
|
$ 4,201
|
Available-for-sale
investment securities - long-term
|
16,565
|
-
|
13,668
|
2,897
|
Assets
held in the non-qualified deferred compensation program(1)
|
7,265
|
7,265
|
-
|
-
|
Total
|
$ 47,844
|
$ 7,265
|
$ 33,481
|
$ 7,098
|
Based
on
|
||||
Fair
Value at March 31, 2009
|
Quoted
prices in active markets (Level 1)
|
Other
observable inputs
(Level
2)
|
Unobservable
inputs
(Level
3)
|
|
Liabilities
measured at fair value on a recurring basis:
|
||||
Obligation
related to assets held in the non-qualified deferred
compensation
program(1)
|
$ 7,265
|
$ 7,265
|
$ -
|
$ -
|
Foreign
currency derivatives(2)
|
1,025
|
-
|
1,025
|
-
|
Total
|
$ 8,290
|
$ 7,265
|
$ 1,025
|
$ -
|
Available-for-sale
marketable securities
|
||
Year
Ended March 31,
2009
|
||
Balance,
beginning of period
|
$ 14,364
|
|
Net
realized and unrealized gains (losses) included in
earnings
|
(2,672)
|
|
Net
unrealized gains (losses) included in comprehensive income
|
(1,342)
|
|
Purchases,
issuances and settlements
|
(8,490)
|
|
Transfers
in and/or out of Level 3, net
|
5,238
|
|
Balance,
end of period
|
$ 7,098
|
5.
|
Restructuring
Activities:
|
Asset
|
Other
|
|||||||
$(000's)
|
Workforce
|
Impairment
|
Facility
|
|||||
Reductions
|
Write-down
|
Closure
Costs
|
Total
|
|||||
Balance
at March 31, 2007
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
Charges
|
2,421
|
-
|
-
|
2,421
|
||||
Utilization
/ Payments
|
(2,421)
|
-
|
-
|
(2,421)
|
||||
Balance
at March 31, 2008
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
Charges
|
16,545
|
1,005
|
1,077
|
18,627
|
||||
Utilization
/ Payments
|
(11,538)
|
(1,005)
|
(945)
|
(13,488)
|
||||
Foreign
Currency Translation
|
(191)
|
-
|
(8)
|
(199)
|
||||
Balance
at March 31, 2009
|
$
|
4,816
|
$
|
-
|
$
|
124
|
$
|
4,940
|
6.
|
Accounts
Receivable:
|
Accounts
receivable at March 31 consisted of:
|
2008
|
2009
|
|||
Trade
|
$
|
222,138
|
$
|
161,563
|
|
Less:
|
|||||
Allowances
for doubtful accounts
|
1,303
|
947
|
|||
Ship
from stock and debit and stock rotation
|
12,941
|
12,169
|
|||
Sales
returns and discounts
|
9,253
|
6,922
|
|||
Total
allowances
|
23,497
|
20,038
|
|||
$
|
198,641
|
$
|
141,525
|
2007
|
2008
|
2009
|
||||
Allowances
for doubtful accounts:
|
||||||
Beginning
Balance
|
$
|
1,772
|
$
|
1,705
|
$
|
1,303
|
Charges
|
-
|
(402)
|
(276)
|
|||
Applications
|
(125)
|
(15)
|
(47)
|
|||
Translation
and other
|
58
|
15
|
(33)
|
|||
Ending
Balance
|
$
|
1,705
|
$
|
1,303
|
$
|
947
|
Ship
from stock and debit and stock rotation:
|
||||||
Beginning
Balance
|
$
|
14,292
|
$
|
11,918
|
$
|
12,941
|
Charges
|
38,124
|
42,979
|
38,459
|
|||
Applications
|
(40,609)
|
(41,977)
|
(39,096)
|
|||
Translation
and other
|
111
|
21
|
(135)
|
|||
Ending
Balance
|
$
|
11,918
|
$
|
12,941
|
$
|
12,169
|
Sales
returns and discounts:
|
||||||
Beginning
Balance
|
$
|
8,496
|
$
|
9,140
|
$
|
9,253
|
Charges
|
27,345
|
28,080
|
21,156
|
|||
Applications
|
(26,909)
|
(28,022)
|
(22,698)
|
|||
Translation
and other
|
208
|
55
|
(789)
|
|||
Ending
Balance
|
$
|
9,140
|
$
|
9,253
|
$
|
6,922
|
7.
|
Inventories:
|
Inventories
at March 31 consisted of:
|
2008
|
2009
|
||
Finished
goods
|
$
|
119,433
|
$
|
106,688
|
Work
in process
|
111,748
|
78,498
|
||
Raw
materials and supplies
|
190,035
|
179,817
|
||
$
|
421,216
|
$
|
365,003
|
8.
|
Financial
Instruments and Investments in
Securities:
|
|
2008
|
||||||||
Cost
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Estimated
Fair Value
|
|||||
Short-term
investments:
|
||||||||
U.S.
government and agency securities
|
$
|
50,000
|
$
|
227
|
$
|
-
|
$
|
50,227
|
Long-term
investments:
|
||||||||
U.S.
government and agency securities
|
108,999
|
628
|
-
|
109,627
|
||||
$
|
158,999
|
$
|
855
|
$
|
-
|
$
|
159,854
|
2009
|
||||||||
Cost
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Estimated
Fair Value
|
|||||
Long-term
investments:
|
||||||||
U.S.
government and agency securities
|
$
|
199,192
|
$
|
175
|
$
|
(758)
|
$
|
198,609
|
$
|
199,192
|
$
|
175
|
$
|
(758)
|
$
|
198,609
|
Held-to-Maturity
|
||||||
Amortized
Cost
|
Estimated
Fair Value
|
|||||
Due
in one year or less
|
$
|
-
|
$
|
-
|
||
Due
after one year through five years
|
199,192
|
198,609
|
||||
Total
|
$
|
199,192
|
$
|
198,609
|
9.
|
Income
Taxes:
|
Years
Ended March 31,
|
2007
|
2008
|
2009
|
|||
Domestic
|
$
|
90,275
|
$
|
68,893
|
$
|
48,080
|
Foreign
|
127,291
|
134,472
|
49,059
|
|||
$
|
217,566
|
$
|
203,365
|
$
|
97,139
|
|
Years
Ended March 31,
|
2007
|
2008
|
2009
|
|||
Current:
|
||||||
Federal/State
|
$
|
31,520
|
$
|
32,342
|
$
|
18,254
|
Foreign
|
20,936
|
22,010
|
7,522
|
|||
52,456
|
54,352
|
25,776
|
||||
Deferred:
|
||||||
Federal/State
|
2,609
|
(8,354)
|
(6,837)
|
|||
Foreign
|
8,636
|
7,894
|
(2,646)
|
|||
11,245
|
(460)
|
(9,483)
|
||||
$
|
63,701
|
$
|
53,892
|
$
|
16,293
|
March
31,
|
2008
|
2009
|
||||||
Current:
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
||||
Sales
and receivable allowances
|
$
|
10,063
|
$
|
116
|
$
|
9,006
|
$
|
-
|
Inventory
reserves
|
11,176
|
15
|
10,302
|
10
|
||||
Accrued
expenses
|
22,431
|
11
|
20,295
|
-
|
||||
Net
operating loss and tax credit carry forwards
|
96
|
-
|
-
|
-
|
||||
Sub
total
|
43,766
|
142
|
39,603
|
10
|
||||
Less
valuation allowances
|
(4,684)
|
-
|
(4,577)
|
-
|
||||
Total
Current
|
$
|
39,082
|
$
|
142
|
$
|
35,026
|
$
|
10
|
March
31,
|
2008
|
2009
|
||||||
Non-current:
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
||||
Tax
over book depreciation / amortization
|
$
|
20,890
|
$
|
28,645
|
$
|
15,814
|
$
|
26,637
|
Deduction
of foreign branch losses
|
-
|
38,618
|
-
|
30,578
|
||||
Pension
obligations
|
9,353
|
-
|
12,237
|
-
|
||||
Other,
net
|
2,260
|
4,168
|
5,566
|
4,137
|
||||
Net
operating loss and tax credit carry forwards
|
105,482
|
-
|
103,254
|
-
|
||||
Sub
total
|
137,985
|
71,431
|
136,871
|
61,352
|
||||
Less
valuation allowances
|
(77,785)
|
-
|
(78,144)
|
-
|
||||
Total
Non-current
|
$
|
60,200
|
$
|
71,431
|
$
|
58,727
|
$
|
61,352
|
Years
Ended March 31,
|
|||||
2007
|
2008
|
2009
|
|||
U.S.
Federal statutory rate
|
35.0%
|
35.0%
|
35.0%
|
||
Increase
(decrease) in tax rate resulting from:
|
|||||
State
income taxes, net of federal benefit
|
(0.1)
|
1.0
|
1.3
|
||
Effect
of foreign operations
|
(6.6)
|
(8.6)
|
(8.5)
|
||
Change
in valuation allowance
|
0.1
|
0.4
|
0.3
|
||
Reinvestment
Allowances
|
-
|
-
|
(3.8)
|
||
Foreign
branch losses not subject to recapture
|
(1.5)
|
(3.9)
|
(8.7)
|
||
Other,
net
|
2.4
|
2.6
|
1.2
|
||
Effective
tax rate
|
29.3%
|
26.5%
|
16.8%
|
||
Balance
at April 1, 2007
|
$
|
4,503
|
Additions
for tax positions of prior years
|
432
|
|
Reductions
for tax positions of prior years
|
(428)
|
|
Balance
at March 31, 2008
|
$
|
4,507
|
Additions
for tax positions of prior years
|
2,375
|
|
Reductions
for tax positions of prior years
|
(1,781)
|
|
Balance
at March 31, 2009
|
$
|
5,101
|
10.
|
Employee
Retirement Plans:
|
Years
Ended March 31,
|
||||||||
U.S.
Plans
|
International
Plans
|
|||||||
2008
|
2009
|
2008
|
2009
|
|||||
Change
in benefit obligation:
|
||||||||
Benefit
obligation at beginning of year
|
$
|
29,705
|
$
|
29,244
|
$
|
137,454
|
$
|
135,522
|
Service
cost
|
442
|
554
|
1,722
|
862
|
||||
Interest
cost
|
1,693
|
2,257
|
6,694
|
6,916
|
||||
Plan
participants' contributions
|
-
|
-
|
749
|
409
|
||||
Actuarial
gain
|
(732)
|
(2,967)
|
(9,608)
|
(13,235)
|
||||
Benefits
paid
|
(1,864)
|
(2,193)
|
(6,086)
|
(5,374)
|
||||
Foreign
currency exchange rate changes
|
-
|
-
|
4,597
|
(37,266)
|
||||
Benefit
obligation at end of year
|
$
|
29,244
|
$
|
26,895
|
$
|
135,522
|
$
|
87,834
|
Change
in plan assets:
|
||||||||
Fair
value of plan assets at beginning of year
|
$
|
24,519
|
$
|
27,691
|
$
|
100,603
|
$
|
110,755
|
Actual
return on assets
|
1,879
|
(6,330)
|
6,327
|
(15,475)
|
||||
Employer
contributions
|
3,157
|
771
|
6,998
|
5,132
|
||||
Plan
participants' contributions
|
-
|
-
|
749
|
409
|
||||
Benefits
paid
|
(1,864)
|
(2,193)
|
(6,086)
|
(5,374)
|
||||
Foreign
currency exchange rate changes
|
-
|
-
|
2,164
|
(31,448)
|
||||
Fair
value of plan assets at end of year
|
27,691
|
19,939
|
110,755
|
63,999
|
||||
Funded
status
|
$
|
(1,553)
|
$
|
(6,956)
|
$
|
(24,767)
|
$
|
(23,835)
|
March 31, | ||||
2008
|
2009
|
|||
Assumptions:
|
||||
Discount
rates
|
5.50-6.25%
|
6.00-7.25%
|
||
Increase
in compensation
|
3.90%
|
4.00%
|
Years
Ended March 31,
|
||||||||
U.S.
Plans
|
International
Plans
|
|||||||
2008
|
2009
|
2008
|
2009
|
|||||
Beginning
balance
|
$
|
5,704
|
$
|
4,741
|
$
|
36,428
|
$
|
26,459
|
Net
(gain) loss incurred during the year
|
(701)
|
5,885
|
(9,387)
|
8,417
|
||||
Amortization
of net loss
|
(240)
|
(196)
|
(1,560)
|
(814)
|
||||
Amortization
of prior service cost
|
(22)
|
(21)
|
(20)
|
-
|
||||
Exchange
|
-
|
-
|
998
|
(7,302)
|
||||
$
|
4,741
|
$
|
10,409
|
$
|
26,459
|
$
|
26,760
|
Years
Ended March 31,
|
||||||||
U.S.
Plans
|
International
Plans
|
|||||||
2008 (1)
|
2009
(2)
|
2008 (1)
|
2009 (2)
|
|||||
Unrecognized
net actuarial loss
|
$
|
2,905
|
$
|
6,482
|
$
|
19,051
|
$
|
19,267
|
Unamortized
prior service cost
|
58
|
24
|
-
|
-
|
||||
$
|
2,963
|
$
|
6,506
|
$
|
19,051
|
$
|
19,267
|
Years
Ended March 31,
|
||||||
2007
|
2008
|
2009
|
||||
Service
cost
|
$
|
1,919
|
$
|
2,164
|
$
|
1,263
|
Interest
cost
|
7,688
|
8,387
|
8,390
|
|||
Expected
return on plan assets
|
(7,167)
|
(8,458)
|
(8,196)
|
|||
Amortization
of prior service cost
|
152
|
42
|
16
|
|||
Recognized
actuarial loss
|
1,749
|
1,800
|
971
|
|||
Net
periodic pension cost
|
$
|
4,341
|
$
|
3,935
|
$
|
2,444
|
March
31,
|
||||||
2007
|
2008
|
2009
|
||||
Assumptions:
|
||||||
Discount
rates
|
4.25-5.50%
|
4.50-5.80%
|
5.50-6.25%
|
|||
Increase
in compensation
|
3.00%
|
3.90%
|
3.90%
|
|||
Expected
long-term rate of return on plan assets
|
6.40-7.50%
|
6.60-7.50%
|
6.60-7.50%
|
March
31, 2008
|
March
31, 2009
|
|||||||
Asset
Category
|
U.S.
Plans
|
International
Plans
|
U.S.
Plans
|
International
Plans
|
||||
Equity
securities
|
48%
|
50%
|
49%
|
50%
|
||||
Debt
securities
|
44%
|
49%
|
45%
|
50%
|
||||
Other
|
8%
|
1%
|
6%
|
0%
|
||||
Total
|
100%
|
100%
|
100%
|
100%
|
Years
ended March 31,
|
U.S.
Plans
|
International
Plans
|
|||
2010
|
$
|
1,493
|
$
|
3,909
|
|
2011
|
1,526
|
4,150
|
|||
2012
|
1,580
|
4,395
|
|||
2013
|
1,671
|
4,647
|
|||
2014
|
1,750
|
4,933
|
|||
2015-2019
|
10,584
|
29,340
|
11.
|
Stock
Based Compensation:
|
Number
of Shares
|
Average
Price (a)
|
Average
Life (years) (b)
|
Aggregated
Intrinsic Value (c)
|
|||||
Outstanding
at March 31, 2008
|
4,829
|
$
|
15.99
|
|||||
Options
granted
|
530
|
12.97
|
||||||
Options
exercised
|
(442)
|
7.99
|
$
|
875
|
||||
Options
cancelled/forfeited
|
(467)
|
17.11
|
||||||
Outstanding
at March 31, 2009
|
4,450
|
$
|
16.31
|
5.15
|
$
|
-
|
||
Exercisable
at March 31, 2009
|
3,205
|
$
|
16.91
|
3.97
|
$
|
-
|
||
(a)
|
Weighted-average
exercise price
|
(b)
|
Weighted-average
contractual life remaining
|
(c)
|
Options
outstanding and exercisable at March 31, 2009 have a negative aggregated
intrinsic value
|
Number
of Shares
|
Weighted
Average Grant-Date Fair Value
|
|||||||
Unvested
balance at March 31, 2008
|
1,331
|
$
|
5.51
|
|||||
Options
granted
|
530
|
3.48
|
||||||
Options
forfeited
|
(86)
|
4.86
|
||||||
Options
vested
|
(531)
|
8.82
|
||||||
Unvested
balance at March 31, 2009
|
1,245
|
$
|
4.69
|
2007
|
2008
|
2009
|
||||
Grants
|
Grants
|
Grants
|
||||
Expected
life (years)
|
5
|
5
|
5
|
|||
Interest
rate
|
4.90%
|
4.53%
|
3.22%
|
|||
Volatility
|
35.25%
|
32.51%
|
28.46%
|
|||
Dividend
yield
|
0.98%
|
0.88%
|
1.24%
|
12.
|
Commitments
and Contingencies:
|
|
Years
ended March 31,
|
||
2010
|
$
|
6,092
|
2011
|
5,200
|
|
2012
|
4,405
|
|
2013
|
3,438
|
|
2014
|
1,051
|
|
Thereafter
|
2,451
|
13.
|
Derivative
Financial Instruments:
|
Fair
Value of Derivative Instruments
|
|||||||
Asset
Derivatives
|
Liability
Derivatives
|
||||||
Balance
|
Balance
|
||||||
Sheet
|
Fair
|
Sheet
|
Fair
|
||||
Caption
|
Value
|
Caption
|
Value
|
||||
Foreign
exchange contracts
|
Prepaid
and other
|
$
|
1,355
|
Accrued
expenses
|
$
|
2,701
|
|
Fair
Value of Derivative Instruments
|
|||||||
Asset
Derivatives
|
Liability
Derivatives
|
||||||
Balance
|
Balance
|
||||||
Sheet
|
Fair
|
Sheet
|
Fair
|
||||
Caption
|
Value
|
Caption
|
Value
|
||||
Foreign
exchange contracts
|
Prepaid
and other
|
$
|
518
|
Accrued
expenses
|
$
|
1,232
|
|
14.
|
Transactions
With Affiliate:
|
Years
Ended March 31,
|
||||||
2007
|
2008
|
2009
|
||||
Sales:
|
||||||
Product
and equipment sales to affiliates
|
$
|
21,813
|
$
|
30,755
|
$
|
16,790
|
Subcontracting
activities
|
1,601
|
1,080
|
287
|
|||
Commissions
received
|
71
|
-
|
-
|
|||
Purchases:
|
||||||
Purchases
of resale inventories, raw materials,
supplies,
equipment and
services
|
470,166
|
517,185
|
389,639
|
|||
Other:
|
||||||
Dividends
paid
|
18,270
|
19,488
|
19,488
|
|||
15.
|
Segment
and Geographic Information:
|
Sales
revenue:
|
2007
|
2008
|
2009
|
|||
Ceramic
Components
|
$
|
228,136
|
$
|
211,759
|
$
|
165,740
|
Tantalum
Components
|
286,943
|
312,761
|
268,326
|
|||
Advanced
Components
|
376,356
|
433,646
|
434,039
|
|||
Total
Passive Components
|
891,435
|
958,166
|
868,105
|
|||
KDP
and KKC Resale
|
434,857
|
468,186
|
354,258
|
|||
KEC
Resale Connectors
|
74,911
|
86,531
|
76,209
|
|||
Total
KED Resale
|
509,768
|
554,717
|
430,467
|
|||
Connectors
|
97,292
|
106,392
|
91,041
|
|||
Total
Revenue
|
$
|
1,498,495
|
$
|
1,619,275
|
$
|
1,389,613
|
2007
|
2008
|
2009
|
||||
Operating
profit:
|
||||||
Passive
components
|
$
|
175,276
|
$
|
154,816
|
$
|
110,428
|
KED
Resale
|
40,633
|
41,750
|
20,242
|
|||
Connectors
|
7,301
|
8,809
|
3,602
|
|||
Research
& development
|
(11,285)
|
(12,450)
|
(11,703)
|
|||
Corporate
administration
|
(31,249)
|
(31,800)
|
(45,825)
|
|||
Total
|
$
|
180,676
|
$
|
161,125
|
$
|
76,744
|
2007
|
2008
|
2009
|
||||
Depreciation
and amortization:
|
||||||
Passive
components
|
$
|
45,049
|
$
|
45,052
|
$
|
54,262
|
KED
Resale
|
863
|
742
|
809
|
|||
Connectors
|
6,038
|
5,964
|
5,363
|
|||
Research
& development
|
886
|
759
|
1,083
|
|||
Corporate
administration
|
1,023
|
3,029
|
4,681
|
|||
Total
|
$
|
53,859
|
$
|
55,546
|
$
|
66,198
|
2007
|
2008
|
2009
|
||||
Assets:
|
||||||
Passive
components
|
$
|
498,343
|
$
|
755,897
|
$
|
639,993
|
KED
Resale
|
39,943
|
48,024
|
33,299
|
|||
Connectors
|
44,913
|
55,928
|
48,808
|
|||
Research
& development
|
7,133
|
6,797
|
6,965
|
|||
Cash,
A/R and S/T and L/T
investments
|
1,164,547
|
1,019,081
|
906,195
|
|||
Goodwill
- Passive components
|
60,889
|
148,736
|
151,985
|
|||
Goodwill
- Connectors
|
10,277
|
10,277
|
10,277
|
|||
Corporate
administration
|
73,491
|
64,338
|
75,007
|
|||
Total
|
$
|
1,899,536
|
$
|
2,109,078
|
$
|
1,872,529
|
2007
|
2008
|
2009
|
||||
Capital
expenditures:
|
||||||
Passive
components
|
$
|
45,822
|
$
|
64,178
|
$
|
38,284
|
KED
Resale
|
288
|
65
|
408
|
|||
Connectors
|
4,289
|
5,524
|
4,011
|
|||
Research
& development
|
1,369
|
1,040
|
1,347
|
|||
Corporate
administration
|
113
|
79
|
155
|
|||
Total
|
$
|
51,881
|
$
|
70,886
|
$
|
44,205
|
Years
Ended March 31,
|
||||||
2007
|
2008
|
2009
|
||||
Net
sales:
|
||||||
Americas
|
$
|
439,695
|
$
|
435,484
|
$
|
432,549
|
Europe
|
343,162
|
382,137
|
339,277
|
|||
Asia
|
715,638
|
801,654
|
617,787
|
|||
Total
|
$
|
1,498,495
|
$
|
1,619,275
|
$
|
1,389,613
|
Property,
plant and equipment, net:
|
||||||
Americas
|
$
|
84,513
|
$
|
134,199
|
$
|
126,246
|
Europe
|
124,565
|
145,956
|
100,394
|
|||
Asia
|
34,795
|
36,417
|
36,747
|
|||
Total
|
$
|
243,873
|
$
|
316,572
|
$
|
263,387
|
16.
|
Acquisition:
|
Assets
and Liabilities Acquired
|
||
Accounts
receivable
|
$ 12,818
|
|
Inventory
|
29,360
|
|
Other
current assets and liabilities
|
11,517
|
|
Working
capital
|
$ 53,695
|
|
Property
and equipment
|
31,825
|
|
Intangible
assets
|
97,440
|
|
Long-term
debt
|
(4,803)
|
|
Deferred
taxes
|
(29,213)
|
|
Total
identified assets and liabilities
|
$ 148,944
|
|
Purchase
price
|
$ 234,091
|
|
Goodwill
|
$ 85,147
|
March
31, 2008
|
March
31, 2009
|
||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
||||||
Amortized
intangible assets
|
|||||||||
Customer
relationships
|
$
|
51,000
|
$
|
(1,416)
|
$
|
51,000
|
$
|
(4,249)
|
|
Developed
technology and other
|
12,050
|
(588)
|
12,050
|
(2,215)
|
|||||
Total
|
$
|
63,050
|
$
|
(2,004)
|
$
|
63,050
|
$
|
(6,464)
|
|
Years
ended March 31,
|
Estimated
Amortization Expense
|
|
2010
|
4,308
|
|
2011
|
4,299
|
|
2012
|
4,291
|
|
2013
|
4,291
|
|
2014
|
4,291
|
Gross
Carrying Amount
|
||||
March
31, 2008
|
March
31, 2009
|
|||
Unamortized
intangible assets
|
||||
Trade
name and trademarks
|
$
|
34,000
|
$
|
34,000
|
Total
|
$
|
34,000
|
$
|
34,000
|
17.
|
Summary
of Quarterly Financial Information
(Unaudited):
|
First
Quarter
|
Second
Quarter
|
|||||||
2008
|
2009
|
2008
|
2009
|
|||||
Net
sales
|
$
|
383,158
|
$
|
396,889
|
$
|
400,706
|
$
|
400,280
|
Gross
profit
|
74,725
|
62,152
|
68,789
|
63,473
|
||||
Net
income
|
39,159
|
31,005
|
37,441
|
27,791
|
||||
Basic
earnings per share
|
0.23
|
0.18
|
0.22
|
0.16
|
||||
Diluted
earnings per share
|
0.23
|
0.18
|
0.22
|
0.16
|
||||
Third
Quarter
|
Fourth
Quarter
|
|||||||
2008
|
2009
|
2008
|
2009
|
|||||
Net
sales
|
$
|
429,542
|
$
|
320,617
|
$
|
405,869
|
$
|
271,827
|
Gross
profit
|
73,806
|
52,981
|
71,043
|
37,688
|
||||
Net
income
|
37,019
|
23,864
|
35,854
|
(1,814)
|
||||
Basic
earnings per share
|
0.22
|
0.14
|
0.21
|
(0.01)
|
||||
Diluted
earnings per share
|
0.22
|
0.14
|
0.21
|
(0.01)
|
18.
|
Subsequent
Event:
|