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
|
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
|
X
|
Accelerated
filer
|
Non-accelerated
filer
|
Page
|
||
Item
1.
|
Business.
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. . . . . . . .
|
4
|
Item
1A.
|
Risk
Factors. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. . . . .
|
12
|
Item
1B.
|
Unresolved
Staff Comments . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . .
.
|
16
|
Item
2.
|
Properties.
. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. . . . . .
|
16
|
Item
3.
|
Legal
Proceedings . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. . . .
|
18
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
.
|
18
|
Item
5.
|
and
Issuer Purchases of Equity Securities . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . .
.
|
19
|
Item
6.
|
Selected
Financial Data . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. . .
|
22
|
Item
7.
|
23
|
|
Item
7A.
|
Quantitative
and Qualitative Disclosures About Market
Risk . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
.
|
35
|
Item
8.
|
Financial
Statements and Supplementary Data . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . .
.
|
35
|
Item
9.
|
35
|
|
Item
9A.
|
Controls
and Procedures . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. .
|
36
|
Item
9B.
|
Other
Information. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. . . . .
|
37
|
|
||
Item
10.
|
Directors,
Executive Officers and Corporate
Governance . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . .
|
37
|
Item
11.
|
Executive
Compensation. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. .
|
38
|
Item
12.
|
Related
Stockholder Matters . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. . . . .
|
38
|
Item
13.
|
Certain
Relationships and Related Transactions, and
Director Independence . . . . . . . . . . . . . . . .
|
38
|
Item
14.
|
Principal
Accounting Fees and Services. . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
|
38
|
|
||
Item
15.
|
Exhibits
and Financial Statement Schedules. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . .
.
|
38
|
Signatures.
. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . .
. . . . . . . . . . . . . . . . . . .
|
40
|
Item
1.
|
Sales
Revenue (in thousands)
|
Years
Ended March 31,
|
|||||
2005
|
|
2006
|
|
2007
|
||
Ceramic
Components
|
$
|
249,381
|
$
|
236,283
|
$
|
228,136
|
Tantalum
Components
|
|
262,525
|
|
269,198
|
|
286,943
|
Advanced
Components
|
|
287,043
|
|
321,781
|
|
376,356
|
Total
Passive Components
|
|
798,949
|
|
827,262
|
|
891,435
|
KDP
and KKC Resale
|
|
358,120
|
|
367,270
|
|
434,857
|
KEC
Resale Connectors
|
|
59,314
|
|
60,269
|
|
74,911
|
Total
KED Resale
|
|
417,434
|
|
427,539
|
|
509,768
|
Connectors
|
|
66,819
|
|
78,407
|
|
97,292
|
Total
Revenue
|
$
|
1,283,202
|
$
|
1,333,208
|
$
|
1,498,495
|
·
|
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
|
63
|
Chief
Executive Officer and President
|
C.
Marshall Jackson
|
58
|
Executive
Vice President of Sales and Marketing
|
Carl
L. Eggerding
|
57
|
Vice
President, Chief Technology Officer
|
Kurt
P. Cummings
|
51
|
Vice
President, Chief Financial Officer, Treasurer and
Secretary
|
S.
M. Chan
|
51
|
Vice
President of Sales and Marketing –Asia
|
Keith
Thomas
|
53
|
Vice
President, President of Kyocera Electronic Devices
|
Peter
Collis
|
55
|
Vice
President of Tantalum Products
|
Peter
Venuto
|
54
|
Vice
President of North American and European Sales
|
John
Sarvis
|
57
|
Vice
President of Ceramic Products
|
John
Lawing
|
56
|
Vice
President of Advanced Products
|
Item
1A.
|
·
|
A
global economic slowdown in any one, or all, of our
markets.
|
·
|
Rapid
material 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
|
Square
Footage
|
Type
of Interest
|
Description
of
Use
|
||
UNITED
STATES
|
|||||
Myrtle
Beach, SC
|
535,000
|
Owned
|
Manufacturing/Research/
Headquarters — PC — CP
|
||
Myrtle
Beach, SC
|
69,000
|
Owned
|
Office/Warehouse
— PC — CP
|
||
Conway,
SC
|
71,000
|
Owned
|
Manufacturing/Office
— PC — CP
|
||
Biddeford,
ME
|
73,000
|
Owned
|
Manufacturing
— PC
|
||
Colorado
Springs, CO
|
15,000
|
Owned
|
Manufacturing
— PC
|
||
Atlanta,
GA
|
49,000
|
Leased
|
Office/Warehouse
— PC — CP
|
||
Olean,
NY
|
113,000
|
Owned
|
Manufacturing
— PC
|
||
Raleigh,
NC
|
203,000
|
Owned
|
Manufacturing
— PC
|
||
Sun
Valley, CA
|
25,000
|
Leased
|
Manufacturing
— PC
|
||
OUTSIDE
THE UNITED STATES
|
|||||
Saint-Apollinaire,
France
|
387,000
|
Leased
|
Manufacturing/Research
— PC
|
||
Betzdorf,
Germany
|
115,000
|
Owned
|
Manufacturing
— CP
|
||
Juarez,
Mexico
|
96,000
|
Owned
|
Manufacturing
— PC — CP
|
||
Coleraine,
N. Ireland
|
171,000
|
Owned
|
Manufacturing/Research
— PC
|
||
Hong
Kong
|
30,000
|
Owned
|
Warehouse/Office
— PC — CP
|
||
Jerusalem,
Israel
|
88,000
|
Leased
|
Manufacturing/Research
— PC
|
||
Lanskroun,
Czech Republic
|
219,000
|
Leased
|
Manufacturing/Warehouse
— PC
|
||
Lanskroun,
Czech Republic
|
308,000
|
Owned
|
Manufacturing/Warehouse
— PC
|
||
Uherske
Hradiste, Czech Republic
|
258,000
|
Owned
|
Manufacturing
— PC — CP
|
||
Uherske
Hradiste, Czech Republic
|
44,000
|
Leased
|
Warehouse
— PC
|
||
Manaus,
Brazil
|
80,000
|
Owned
|
Manufacturing
— PC
|
||
Newmarket,
England
|
62,000
|
Leased
|
Manufacturing
— CP
|
||
Paignton,
England
|
127,000
|
Owned
|
Manufacturing/Research
— PC
|
||
Penang,
Malaysia
|
162,000
|
Owned
|
Manufacturing
— PC
|
||
San
Salvador, El Salvador
|
438,000
|
Owned
|
Manufacturing
— PC
|
||
Singapore
|
26,000
|
Leased
|
Warehouse/Office
— PC — CP
|
||
Tianjin,
China
|
520,000
|
Owned
|
Manufacturing
— PC – CP
|
Item
3.
|
Common
Stock Price Range
|
Dividends
Declared
|
||||||||||||
2006
|
2007
|
Per
Share
|
|||||||||||
High
|
Low
|
High
|
Low
|
2006
|
2007
|
||||||||
First
Quarter
|
$
|
12.45
|
$
|
10.55
|
$
|
19.90
|
$
|
13.92
|
|
$
|
0.0375
|
$
|
0.0375
|
Second
Quarter
|
|
13.97
|
|
12.10
|
|
17.85
|
|
13.09
|
|
|
0.0375
|
|
0.0375
|
Third
Quarter
|
|
14.80
|
|
11.27
|
|
18.52
|
|
14.42
|
|
|
0.0375
|
|
0.0375
|
Fourth
Quarter
|
|
17.83
|
|
14.26
|
|
16.29
|
|
13.90
|
|
|
0.0375
|
|
0.0400
|
Cumulative
Total Return
|
|||||||
3/31/02
|
3/31/03
|
3/31/04
|
3/31/05
|
3/31/06
|
3/31/07
|
||
AVX
-NYSE
|
$ 100
|
$ 44
|
$ 81
|
$ 61
|
$ 89
|
$ 77
|
|
S
& P 500
|
$ 100
|
$ 75
|
$ 102
|
$ 108
|
$ 121
|
$ 136
|
|
Peer
Group
|
$ 100
|
$ 35
|
$ 69
|
$ 39
|
$ 45
|
$ 44
|
Period
|
|
Total
Number of Shares Purchased
|
Average
Price Paid Per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans
or
Programs
|
Maximum
Number of Shares that may yet be Purchased Under the Plans or
Programs
|
|||
1/1/07
- 1/31/07
|
|
44,305
|
|
$ 14.35
|
|
44,305
|
|
5,402,600
|
2/1/07
- 2/28/07
|
|
146,800
|
|
15.24
|
|
146,800
|
|
5,255,800
|
3/1/07
- 3/31/07
|
|
68,400
|
|
14.95
|
|
68,400
|
|
5,187,400
|
Total
|
|
259,505
|
|
$ 15.01
|
|
259,505
|
|
5,187,400
|
Item
6.
|
|
2003
|
|
2004
|
|
2005
|
|
2006
|
|
2007
|
|
Operating
Results Data:
|
||||||||||
Net
sales
|
$
|
1,134,111
|
$
|
1,136,577
|
$
|
1,283,202
|
$
|
1,333,208
|
$
|
1,498,495
|
Cost
of sales
|
1,067,939
|
1,078,891
|
1,105,164
|
1,125,917
|
1,201,337
|
|||||
Materials
charge
|
|
—
|
|
87,720
|
|
—
|
|
—
|
|
—
|
Gross
profit (loss)
|
|
66,172
|
|
(30,034)
|
|
178,038
|
|
207,291
|
|
297,158
|
Selling,
general and administrative expenses
|
92,041
|
85,528
|
107,429
|
111,110
|
116,482
|
|||||
Restructuring
charges
|
|
—
|
|
27,213
|
|
—
|
|
—
|
|
—
|
Profit
(loss) from operations
|
|
(25,869)
|
|
(142,775)
|
|
70,609
|
|
96,181
|
|
180,676
|
Interest
income
|
17,337
|
11,495
|
12,739
|
22,999
|
40,033
|
|||||
Interest
expense
|
(1,255)
|
(391)
|
(376)
|
(1,454)
|
—
|
|||||
Other,
net
|
|
(651)
|
|
—
|
|
5,072
|
|
1,894
|
|
(3,143)
|
Income
(loss) before income taxes
|
|
(10,438)
|
|
(131,671)
|
|
88,044
|
|
119,620
|
|
217,566
|
Provision
(benefit) for income taxes
|
|
2,000
|
|
(24,065)
|
|
32,312
|
|
37,868
|
|
63,701
|
Net
income (loss)
|
$
|
(12,438)
|
$
|
(107,606)
|
$
|
55,732
|
$
|
81,752
|
$
|
153,865
|
Income
(loss) per share:
|
||||||||||
Basic
|
$
|
(0.07)
|
$
|
(0.62)
|
$
|
0.32
|
$
|
0.47
|
$
|
0.89
|
Diluted
|
$
|
(0.07)
|
$
|
(0.62)
|
$
|
0.32
|
$
|
0.47
|
$
|
0.89
|
Weighted
average common shares outstanding:
|
||||||||||
Basic
|
174,325
|
173,634
|
173,450
|
172,532
|
172,047
|
|||||
Diluted
|
174,325
|
173,634
|
173,906
|
173,053
|
172,751
|
|||||
Cash
dividends declared per common share
|
$
|
0.15
|
$
|
0.15
|
$
|
0.15
|
$
|
0.15
|
$
|
0.15
|
As
of March 31,
|
|
2003
|
|
2004
|
|
2005
|
|
2006
|
|
2007
|
Balance
Sheet Data:
|
||||||||||
Working
capital
|
$
|
892,400
|
$
|
887,089
|
$
|
921,564
|
$
|
1,032,742
|
$
|
1,214,035
|
Total
assets
|
|
1,700,513
|
|
1,667,877
|
|
1,689,749
|
|
1,675,208
|
|
1,899,536
|
Stockholders'
equity
|
|
1,463,156
|
|
1,386,544
|
|
1,439,251
|
|
1,448,109
|
|
1,635,279
|
Years
Ended March 31,
|
|
2003
|
|
2004
|
|
2005
|
|
2006
|
|
2007
|
Other
Data:
|
||||||||||
Capital
expenditures
|
$
|
38,254
|
$
|
33,712
|
$
|
48,324
|
$
|
41,328
|
$
|
51,881
|
Research,
development and engineering expenses
|
43,504
|
38,630
|
36,699
|
30,904
|
29,397
|
Sales
Revenue (in thousands)
|
Years
Ended March 31,
|
|||||
2005
|
|
2006
|
|
2007
|
||
Ceramic
Components
|
$
|
249,381
|
$
|
236,283
|
$
|
228,136
|
Tantalum
Components
|
|
262,525
|
|
269,198
|
|
286,943
|
Advanced
Components
|
|
287,043
|
|
321,781
|
|
376,356
|
Total
Passive Components
|
|
798,949
|
|
827,262
|
|
891,435
|
KDP
and KKC Resale
|
|
358,120
|
|
367,270
|
|
434,857
|
KEC
Resale Connectors
|
|
59,314
|
|
60,269
|
|
74,911
|
Total
KED Resale
|
|
417,434
|
|
427,539
|
|
509,768
|
Connectors
|
|
66,819
|
|
78,407
|
|
97,292
|
Total
Revenue
|
$
|
1,283,202
|
$
|
1,333,208
|
$
|
1,498,495
|
FY
2009 -
|
FY
2011 -
|
|||||||||
Contractual
Obligations (in thousands)
|
Total
|
|
FY
2008
|
|
FY
2010
|
|
FY
2012
|
|
Thereafter
|
|
Operating
Leases
|
$
|
20,113
|
$
|
6,617
|
$
|
8,088
|
$
|
4,575
|
$
|
833
|
Page
|
|
41
|
|
43
|
|
44
|
|
45
|
|
46
|
|
70
|
Item
9A.
|
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 the Company (incorporated by reference to Exhibit 3.2 to the
Annual
Report on Form 10-K of the Company for the year ended March 31,
2003).
|
*10.1
|
Amended
AVX Corporation 1995 Stock Option Plan (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 (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).
|
10.4
|
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).
|
10.5
|
Disclosure
and Option to License Agreement by and between Kyocera Corporation
and AVX
Corporation (incorporated by reference to Exhibit 10.5 to the Annual
Report on Form 10-K of the Company for the year ended March 31,
2000).
|
*10.6
|
Amended
AVX Nonqualified Supplemental Retirement Plan (the AVX Corporation
SERP
was merged into this plan effective January 1, 2005) (incorporated
by
reference to Exhibit 10.6 to the Annual Report on Form 10-K of
the Company
for the year ended March 31, 2006).
|
*10.7
|
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).
|
*10.9
|
Employment
Agreement between AVX Corporation and John S. Gilbertson (incorporated
by
reference to Exhibit 10.10 to the Annual Report on Form 10-K of
the
Company for the year ended March 31, 2002).
|
*10.10
|
AVX
Corporation 2004 Stock Option Plan (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).
|
*10.11
|
AVX
Corporation 2004 Non-Employee Directors' Stock Option Plan (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).
|
*10.12
|
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),
|
*10.13
|
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).
|
10.14
|
|
10.15
|
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).
|
10.16
|
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).
|
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
21, 2007
|
Signature
|
Title
|
Date
|
|
*
|
|||
Benedict
P. Rosen
|
Chairman
of the Board
|
May
21, 2007
|
|
*
|
|||
Kazuo
Inamori
|
Chairman
Emeritus of the Board
|
May
21, 2007
|
|
*
|
|||
John
S. Gilbertson
|
Chief
Executive Officer, President and Director
|
May
21, 2007
|
|
*
|
|||
Donald
B. Christiansen
|
Director
|
May
21, 2007
|
|
*
|
|||
Kensuke
Itoh
|
Director
|
May
21, 2007
|
|
*
|
|||
Makoto
Kawamura
|
Director
|
May
21, 2007
|
|
*
|
|||
Rodney
N. Lanthorne
|
Director
|
May
21, 2007
|
|
*
|
|||
Joseph
Stach
|
Director
|
May
21, 2007
|
|
*
|
|||
Richard
Tressler
|
Director
|
May
21, 2007
|
|
*
|
|||
Masahiro
Umemura
|
Director
|
May
21, 2007
|
|
*
|
|||
Yuzo
Yamamura
|
Director
|
May
21, 2007
|
|
*
by: /s/ Kurt P. Cummings
|
|||
KURT
P. CUMMINGS, Attorney-in-Fact for each of the persons
indicated
|
March
31,
|
||||
Assets
|
2006
|
2007
|
||
Current
assets:
|
||||
Cash
and cash equivalents
|
$
|
505,326
|
$
|
684,382
|
Short-term
investments in securities
|
|
158,995
|
|
145,000
|
Accounts
receivable - trade
|
|
174,530
|
|
191,106
|
Accounts
receivable - affiliates
|
|
2,918
|
|
5,059
|
Inventories
|
|
307,653
|
|
330,141
|
Deferred
income taxes
|
|
25,196
|
|
26,941
|
Prepaid
and other
|
|
29,154
|
|
38,766
|
Total
current assets
|
|
1,203,772
|
|
1,421,395
|
Long-term
investments in securities
|
|
135,004
|
|
139,000
|
Property
and equipment:
|
||||
Land
|
|
20,471
|
|
20,543
|
Buildings
and improvements
|
|
249,193
|
|
276,497
|
Machinery
and equipment
|
|
1,181,329
|
|
1,281,985
|
Construction
in progress
|
|
17,393
|
|
14,257
|
|
|
1,468,386
|
|
1,593,282
|
Accumulated
depreciation
|
|
(1,235,436)
|
|
(1,349,409)
|
|
|
232,950
|
|
243,873
|
Goodwill
|
|
69,483
|
|
71,166
|
Other
assets
|
|
33,999
|
|
24,102
|
Total
Assets
|
$
|
1,675,208
|
$
|
1,899,536
|
March
31,
|
||||
Liabilities
and Stockholders' Equity
|
2006
|
2007
|
||
Current
liabilities:
|
||||
Accounts
payable - trade
|
$
|
41,412
|
$
|
50,903
|
Accounts
payable - affiliates
|
|
63,599
|
|
75,786
|
Income
taxes payable
|
|
9,179
|
|
14,668
|
Accrued
payroll and benefits
|
|
34,272
|
|
38,965
|
Accrued
expenses
|
|
22,568
|
|
27,038
|
Total
current liabilities
|
|
171,030
|
|
207,360
|
Pensions
|
|
43,023
|
|
42,037
|
Other
liabilities
|
|
13,046
|
|
14,860
|
Total
non-current liabilities
|
|
56,069
|
|
56,897
|
Total
Liabilities
|
|
227,099
|
|
264,257
|
Commitments
and contingencies (Notes 10 and 14)
|
||||
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,
172,216
|
||||
and
171,674 shares for 2006 and 2007, respectively
|
|
|
||
Additional
paid-in capital
|
|
338,784
|
|
340,911
|
Retained
earnings
|
|
1,098,237
|
|
1,226,283
|
Accumulated
other comprehensive income
|
|
62,589
|
|
128,812
|
Treasury
stock, at cost, 4,152 and
4,694 shares for 2006 and 2007, respectively
|
|
(53,265)
|
|
(62,491)
|
Total
Stockholders' Equity
|
|
1,448,109
|
|
1,635,279
|
Total
Liabilities and Stockholders' Equity
|
$
|
1,675,208
|
$
|
1,899,536
|
Years
Ended March 31,
|
|
2005
|
|
2006
|
|
2007
|
Net
sales
|
$
|
1,283,202
|
$
|
1,333,208
|
$
|
1,498,495
|
Cost
of sales
|
|
1,105,164
|
|
1,125,917
|
|
1,201,337
|
Gross
profit
|
|
178,038
|
|
207,291
|
|
297,158
|
Selling,
general and administrative expenses
|
|
107,429
|
|
111,110
|
|
116,482
|
Profit
from operations
|
|
70,609
|
|
96,181
|
|
180,676
|
Other
income (expense):
|
||||||
Interest
income
|
|
12,739
|
|
22,999
|
|
40,033
|
Interest
expense
|
|
(376)
|
|
(1,454)
|
|
—
|
Other,
net
|
|
5,072
|
|
1,894
|
|
(3,143)
|
Income
before income taxes
|
|
88,044
|
|
119,620
|
|
217,566
|
Provision
for income taxes
|
|
32,312
|
|
37,868
|
|
63,701
|
Net
income
|
$
|
55,732
|
$
|
81,752
|
$
|
153,865
|
Income
per share:
|
||||||
Basic
|
$
|
0.32
|
$
|
0.47
|
$
|
0.89
|
Diluted
|
$
|
0.32
|
$
|
0.47
|
$
|
0.89
|
Weighted
average common shares outstanding:
|
||||||
Basic
|
|
173,450
|
|
172,532
|
|
172,047
|
Diluted
|
|
173,906
|
|
173,053
|
|
172,751
|
|
|
||||||||
Common
Stock
|
|
Accumulated
|
|||||||
Number
|
Additional
|
Other
|
|||||||
Of
|
Treasury
|
Paid-In
|
Retained
|
Comprehensive
|
Comprehensive
|
||||
Shares
|
Amount
|
Stock
|
Capital
|
Earnings
|
Income
|
Total
|
Income
|
||
Balance,
March 31, 2004
|
173,648
|
$
1,764
|
$
(35,285)
|
$
342,811
|
$
1,012,637
|
$
64,617
|
$
1,386,544
|
||
Net
income
|
|
|
|
|
55,732
|
|
55,732
|
$ 55,732
|
|
Affiliate
Excess
Purchase
Price
|
|
|
|
(2,218)
|
|
|
(2,218)
|
||
Other
comprehensive
income (loss)
|
34,967
|
34,967
|
34,967
|
||||||
Dividends
of $0.15
per
share
|
(26,022)
|
(26,022)
|
|||||||
Stock
option activity
|
32
|
|
409
|
(118)
|
|
|
291
|
|
|
Tax
benefit of stock
option
exercises
|
|
|
|
(1,117)
|
|
|
(1,117)
|
|
|
Treasury
stock purchased
|
(725)
|
|
(8,926)
|
|
|
|
(8,926)
|
|
|
Balance,
March 31, 2005
|
172,955
|
$
1,764
|
$
(43,802)
|
$
339,358
|
$
1,042,347
|
$
99,584
|
$
1,439,251
|
$ 90,699
|
|
Net
income
|
|
|
|
|
81,752
|
|
81,752
|
81,752
|
|
Other
comprehensive
income
(loss)
|
(36,995)
|
(36,995)
|
(36,995)
|
||||||
Dividends
of $0.15
per
share
|
(25,862)
|
(25,862)
|
|||||||
Stock
option activity
|
501
|
|
6,325
|
(610)
|
|
|
5,715
|
|
|
Tax
benefit of stock
option
exercises
|
|
|
|
36
|
|
|
36
|
|
|
Treasury
stock purchased
|
(1,240)
|
|
(15,788)
|
|
|
|
(15,788)
|
|
|
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
(loss)
|
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
|
(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
|
Years
Ended March 31,
|
2005
|
2006
|
2007
|
|||
Operating
Activities:
|
||||||
Net
income
|
$
|
55,732
|
$
|
81,752
|
$
|
153,865
|
Adjustment
to reconcile net income to net cash from operating
activities:
|
||||||
Depreciation
|
|
80,734
|
|
64,966
|
|
53,859
|
Stock-based
compensation expense
|
|
—
|
|
—
|
|
2,629
|
Deferred
income taxes
|
|
12,933
|
|
6,572
|
|
11,245
|
Gain
on sale of property, plant & equipment
|
|
(3,566)
|
|
(910)
|
|
(88)
|
Changes
in operating assets and liabilities:
|
||||||
Accounts
receivable
|
|
20,203
|
|
(25,855)
|
|
(12,402)
|
Inventories
|
|
(72,044)
|
|
61,948
|
|
(6,721)
|
Accounts
payable and accrued expenses
|
|
(43,006)
|
|
(30,263)
|
|
42,998
|
Income
taxes payable
|
|
(5,988)
|
|
(740)
|
|
6,139
|
Other
assets
|
|
15,343
|
|
3,630
|
|
(2,921)
|
Other
liabilities
|
|
(3,241)
|
|
(745)
|
|
(3,574)
|
Net
cash provided by operating activities
|
|
57,100
|
|
160,355
|
|
245,029
|
Investing
Activities:
|
||||||
Purchases
of property and equipment
|
|
(48,324)
|
|
(41,328)
|
|
(51,881)
|
Proceeds
from the purchase of business, net of cash acquired
|
|
3,247
|
|
—
|
|
—
|
Purchases
of investment securities
|
|
(106,000)
|
|
(100,000)
|
|
(228,000)
|
Proceeds
from sale of investment securities
|
|
79,989
|
|
36,000
|
|
238,181
|
Proceeds
from property, plant & equipment dispositions
|
|
5,790
|
|
437
|
|
88
|
Other
|
|
(61)
|
|
528
|
|
—
|
Net
cash used in investing activities
|
|
(65,359)
|
|
(104,363)
|
|
(41,612)
|
Financing
Activities:
|
||||||
Repayment
of debt
|
|
(26)
|
|
—
|
|
—
|
Dividends
paid
|
|
(26,022)
|
|
(25,862)
|
|
(25,819)
|
Purchase
of treasury stock
|
|
(8,926)
|
|
(15,788)
|
|
(14,807)
|
Proceeds
from exercise of stock options
|
|
291
|
|
5,715
|
|
4,412
|
Excess
tax benefit from stock-based payment arrangements
|
|
—
|
|
—
|
|
667
|
Net
cash used in financing activities
|
|
(34,683)
|
|
(35,935)
|
|
(35,547)
|
|
|
|
|
|
|
|
Effect
of exchange rate on cash
|
|
3,682
|
|
(5,201)
|
|
11,186
|
Increase
(decrease) in cash and cash equivalents
|
|
(39,260)
|
|
14,856
|
|
179,056
|
Cash
and cash equivalents at beginning of period
|
|
529,730
|
|
490,470
|
|
505,326
|
Cash
and cash equivalents at end of period
|
$
|
490,470
|
$
|
505,326
|
$
|
684,382
|
1.
|
Summary
of Significant Accounting
Policies:
|
Years
Ended March 31,
|
||||||
|
2005
|
|
2006
|
|
2007
|
|
Engineering
expense:
|
|
|
|
|
|
|
Cost
of sales
|
$
|
24,054
|
$
|
18,437
|
$
|
16,534
|
Selling
general and administrative expense
|
1,596
|
|
1,575
|
|
1,578
|
|
Total
engineering expense
|
$
|
25,650
|
$
|
20,012
|
$
|
18,112
|
2005
|
2006
|
|||||
Net
income:
|
||||||
As
reported
|
$
|
55,732
|
$
|
81,752
|
||
Less:
|
Total
stock-based employee compensation expense determined under fair
value
based method for all awards, net of taxes
|
(4,039)
|
|
(3,151)
|
||
Pro
forma net income
|
$
|
51,693
|
$
|
78,601
|
||
Earnings
per share:
|
||||||
Basic
- as reported
|
$
|
0.32
|
$
|
0.47
|
||
Basic
- pro forma
|
$
|
0.30
|
$
|
0.46
|
||
Diluted
- as reported
|
$
|
0.32
|
$
|
0.47
|
||
Diluted
- pro forma
|
$
|
0.30
|
$
|
0.45
|
2.
|
Earnings
Per Share:
|
|
|
2005
|
2006
|
2007
|
||
Net
Income
|
$
|
55,732
|
$
|
81,752
|
$
|
153,865
|
Computation
of Basic EPS:
|
||||||
Weighted
Average Shares Outstanding used in Computing Basic EPS
|
|
173,450
|
|
172,532
|
|
172,047
|
Basic
earnings per share
|
$
|
0.32
|
$
|
0.47
|
$
|
0.89
|
Computation
of Diluted EPS:
|
||||||
Weighted
Average Shares Outstanding
|
|
173,450
|
|
172,532
|
|
172,047
|
Effect
of stock options
|
|
456
|
|
521
|
|
704
|
Shares
used in Computing Diluted EPS (1)
|
|
173,906
|
|
173,053
|
|
172,751
|
Diluted
Income per share
|
$
|
0.32
|
$
|
0.47
|
$
|
0.89
|
3.
|
Comprehensive
Income:
|
Years
Ended March 31,
|
|||||||
|
|
2005
|
2006
|
2007
|
|||
Net
income
|
$
|
55,732
|
$
|
81,752
|
$
|
153,865
|
|
Other
comprehensive income (loss):
|
|||||||
|
Pension
liability adjustment, net of tax
|
|
(1,764)
|
|
(2,709)
|
|
(1,464)
|
|
Foreign
currency translation adjustment
|
|
37,259
|
|
(34,560)
|
|
69,597
|
|
Foreign
currency cash flow hedges
|
|
(528)
|
|
274
|
|
947
|
Comprehensive
income
|
$
|
90,699
|
$
|
44,757
|
$
|
222,945
|
Years
Ended March 31,
|
|||||||
2005
|
2006
|
2007
|
|||||
Pension
liability adjustment, net of tax
|
$
|
(21,938)
|
$
|
(24,647)
|
$
|
(31,825)
|
|
Foreign
currency translation adjustment
|
|
121,891
|
|
87,331
|
|
156,929
|
|
Foreign
currency cash flow hedges
|
|
(369)
|
|
(95)
|
|
851
|
|
Adjustment
to initially apply SFAS 158, (net of tax in the amount of
$1,299)
|
|
—
|
|
—
|
|
2,857
|
|
Balance
at end of period
|
$
|
99,584
|
$
|
62,589
|
$
|
128,812
|
4.
|
Accounts
Receivable:
|
Accounts
receivable at March 31 consisted of:
|
2006
|
2007
|
|||
Trade
|
$
|
199,090
|
$
|
213,869
|
|
Less:
|
|
|
|
|
|
|
Allowances
for doubtful accounts
|
|
1,772
|
|
1,705
|
|
Ship
from stock and debit and stock rotation
|
|
14,292
|
|
11,918
|
|
Sales
returns and discounts
|
|
8,496
|
|
9,140
|
|
Total
allowances
|
|
24,560
|
|
22,763
|
|
|
$
|
174,530
|
$
|
191,106
|
|
2005
|
|
2006
|
|
2007
|
|
Allowances
for doubtful accounts:
|
||||||
Beginning
Balance
|
$
|
5,324
|
$
|
3,426
|
$
|
1,772
|
Charges
|
|
(1,574)
|
|
21
|
|
—
|
Applications
|
|
(444)
|
|
(1,575)
|
|
(125)
|
Translation
and other
|
|
120
|
|
(100)
|
|
58
|
Ending
Balance
|
$
|
3,426
|
$
|
1,772
|
$
|
1,705
|
Ship
from stock and debit and stock rotation:
|
||||||
Beginning
Balance
|
$
|
17,596
|
$
|
18,174
|
$
|
14,292
|
Charges
|
|
46,197
|
|
37,543
|
|
38,124
|
Applications
|
|
(45,647)
|
|
(41,374)
|
|
(40,609)
|
Translation
and other
|
|
28
|
|
(51)
|
|
111
|
Ending
Balance
|
$
|
18,174
|
$
|
14,292
|
$
|
11,918
|
Sales
returns and discounts:
|
||||||
Beginning
Balance
|
$
|
7,028
|
$
|
11,043
|
$
|
8,496
|
Charges
|
|
29,351
|
|
20,524
|
|
27,345
|
Applications
|
|
(25,380)
|
|
(23,557)
|
|
(26,909)
|
Translation
and other
|
|
44
|
|
486
|
|
208
|
Ending
Balance
|
$
|
11,043
|
$
|
8,496
|
$
|
9,140
|
5.
|
Inventories:
|
Inventories
at March 31 consisted of:
|
2006
|
2007
|
||
Finished
goods
|
$
|
97,963
|
$
|
100,266
|
Work
in process
|
|
81,055
|
|
98,147
|
Raw
materials and supplies
|
|
128,635
|
|
131,728
|
|
$
|
307,653
|
$
|
330,141
|
6.
|
Financial
Instruments and Investments in
Securities:
|
2006
|
||||||||
Cost
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Estimated
Fair Value
|
|||||
Short-term
investments:
|
||||||||
U.S.
government and agency securities
|
$
|
158,995
|
$
|
—
|
$
|
(1,293)
|
$
|
157,702
|
Long-term
investments:
|
|
|
|
|
|
|
|
|
U.S.
government and agency securities
|
|
135,004
|
|
—
|
|
(1,978)
|
|
133,026
|
|
$
|
293,999
|
$
|
—
|
$
|
(3,271)
|
$
|
290,728
|
2007
|
||||||||
Cost
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Estimated
Fair Value
|
|||||
Short-term
investments:
|
||||||||
U.S.
government and agency securities
|
$
|
145,000
|
$
|
—
|
$
|
(407)
|
$
|
144,593
|
Long-term
investments:
|
|
|
|
|
|
|
|
|
U.S.
government and agency securities
|
|
139,000
|
|
—
|
|
(142)
|
|
138,858
|
|
$
|
284,000
|
$
|
—
|
$
|
(549)
|
$
|
283,451
|
|
|
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
Due
in one year or less
|
|
|
$
|
145,000
|
$
|
144,593
|
Due
after one year through five years
|
|
|
|
139,000
|
|
138,858
|
Total
|
|
|
$
|
284,000
|
$
|
283,451
|
7.
|
Income
Taxes:
|
Years
Ended March 31,
|
2005
|
2006
|
2007
|
|||
Domestic
|
$
|
57,602
|
$
|
58,133
|
$
|
90,275
|
Foreign
|
|
30,442
|
|
61,487
|
|
127,291
|
|
$
|
88,044
|
$
|
119,620
|
$
|
217,566
|
Years
Ended March 31,
|
2005
|
2006
|
2007
|
|||
Current:
|
||||||
Federal/State
|
$
|
11,397
|
$
|
24,960
|
$
|
31,520
|
Foreign
|
|
7,982
|
|
6,337
|
|
20,936
|
|
|
19,379
|
|
31,297
|
|
52,456
|
Deferred:
|
||||||
Federal/State
|
|
11,385
|
|
(1,080)
|
|
2,609
|
Foreign
|
|
1,548
|
|
7,651
|
|
8,636
|
|
|
12,933
|
|
6,571
|
|
11,245
|
|
$
|
32,312
|
$
|
37,868
|
$
|
63,701
|
March
31,
|
2006
|
2007
|
||||||
Current:
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
||||
Sales
and receivable allowances
|
$
|
8,492
|
$
|
85
|
$
|
9,673
|
$
|
91
|
Inventory
reserves
|
|
6,712
|
|
5
|
|
5,935
|
|
11
|
Accrued
expenses
|
|
14,321
|
|
4
|
|
13,880
|
|
—
|
Net
operating loss and tax credit carry forwards
|
|
219
|
|
—
|
|
216
|
|
—
|
Sub
total
|
|
29,744
|
|
94
|
|
29,704
|
|
102
|
Less
valuation allowances
|
|
(4,455)
|
|
—
|
|
(2,661)
|
|
—
|
Total
Current
|
$
|
25,289
|
$
|
94
|
$
|
27,043
|
$
|
102
|
March 31, |
2006
|
2007
|
||||||
Non-current:
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
||||
Tax
over book depreciation
|
$
|
18,154
|
$
|
1,211
|
$
|
19,476
|
$
|
1,351
|
Deduction
of foreign branch losses
|
|
—
|
|
48,459
|
|
—
|
|
46,387
|
Pension
obligations
|
|
14,789
|
|
—
|
|
13,166
|
|
—
|
Other,
net
|
|
3,535
|
|
4,029
|
|
4,356
|
|
4,375
|
Net
operating loss and tax credit carry forwards
|
|
119,511
|
|
—
|
|
109,123
|
|
—
|
Sub
total
|
|
155,989
|
|
53,699
|
|
146,121
|
|
52,113
|
Less
valuation allowances
|
|
(77,016)
|
|
—
|
|
(78,988)
|
|
—
|
Total
Non-current
|
$
|
78,973
|
$
|
53,699
|
$
|
67,133
|
$
|
52,113
|
Years
Ended March 31,
|
|||||
2005
|
2006
|
2007
|
|||
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
|
(0.3)
|
0.5
|
(0.1)
|
||
Effect
of foreign operations
|
(12.0)
|
(4.8)
|
(6.6)
|
||
Change
in valuation allowance
|
10.9
|
1.5
|
(0.3)
|
||
Settlement
of certain income tax exposures
|
—
|
(2.8)
|
—
|
||
Foreign
branch losses not subject to recapture
|
—
|
—
|
(1.5)
|
||
Other,
net
|
3.1
|
2.3
|
2.8
|
||
Effective
tax rate
|
36.7%
|
31.7%
|
29.3%
|
8.
|
Employee
Retirement Plans:
|
|
|
Before
Application of SFAS No. 158
|
|
Adjustments
|
|
After
Application of SFAS No. 158
|
Deferred
tax asset (1)
|
$
|
11,867
|
$
|
1,299
|
$
|
13,166
|
Other
non-current assets
|
100
|
(100)
|
—
|
|||
Total
Assets
|
|
11,967
|
|
1,199
|
|
13,166
|
|
|
|
|
|
|
|
Non-current
pensions liability
|
|
41,914
|
|
123
|
|
42,037
|
Accumulated
other comprehensive income (1)
|
|
(26,109)
|
|
(2,857)
|
|
(28,966)
|
Total
liabilities and stockholders' equity
|
$
|
15,805
|
$
|
(2,734)
|
$
|
13,071
|
(1)
|
Amounts
relate only to pension plans
|
Years
Ended March 31,
|
|||||||
U.S.
Plans
|
International
Plans
|
||||||
2006
|
2007
|
2006
|
2007
|
||||
Change
in benefit obligation:
|
|||||||
Benefit
obligation at beginning of year
|
$ 29,417
|
|
$ 30,236
|
|
$105,896
|
|
$115,432
|
Service
cost
|
400
|
|
426
|
|
996
|
|
1,493
|
Interest
cost
|
1,622
|
|
1,635
|
|
5,227
|
|
6,053
|
Plan
participants' contributions
|
—
|
|
—
|
|
794
|
|
834
|
Actuarial
loss (gain)
|
452
|
|
(776)
|
|
13,471
|
|
2,985
|
Benefits
paid
|
(1,655)
|
|
(1,816)
|
|
(3,773)
|
|
(3,849)
|
Foreign
currency exchange rate changes
|
—
|
|
—
|
|
(7,643)
|
|
14,173
|
Benefit
obligation at end of year
|
30,236
|
|
29,705
|
|
114,968
|
|
137,121
|
Change
in plan assets:
|
|||||||
Fair
value of plan assets at beginning of year
|
21,150
|
|
22,453
|
|
72,138
|
|
79,883
|
Actual
return on assets
|
1,158
|
|
2,079
|
|
12,517
|
|
6,230
|
Employer
contributions
|
1,800
|
|
1,802
|
|
3,773
|
|
7,559
|
Plan
participants' contributions
|
—
|
|
—
|
|
794
|
|
834
|
Benefits
paid
|
(1,655)
|
|
(1,815)
|
|
(3,773)
|
|
(3,849)
|
Other
expenses
|
—
|
|
—
|
|
(270)
|
|
(333)
|
Foreign
currency exchange rate changes
|
—
|
|
—
|
|
(5,296)
|
|
9,946
|
Fair
value of plan assets at end of year
|
22,453
|
|
24,519
|
|
79,883
|
|
100,270
|
Funded
status
|
$ (7,783)
|
|
$ (5,186)
|
|
$
(35,086)
|
|
$
(36,851)
|
March
31,
|
||||
2006
|
2007
|
|||
Assumptions:
|
||||
Discount
rates
|
4.25-5.50%
|
4.40-5.75%
|
||
Increase
in compensation
|
2.00-3.00%
|
3.40%
|
Years
Ended March 31,
|
|||||||
U.S.
Plans
|
International
Plans
|
||||||
2006
|
2007
(1)
|
2006
|
2007
(1)
|
||||
Unrecognized
net actuarial loss
|
$ 7,103
|
|
$ 3,867
|
|
$ 32,737
|
|
$ 25,031
|
Unamortized
prior service cost
|
101
|
|
55
|
|
75
|
|
13
|
|
$ 7,204
|
|
$ 3,922
|
|
$ 32,812
|
|
$ 25,044
|
Years
Ended March 31,
|
||||||
2005
|
2006
|
2007
|
||||
Service
cost
|
$
|
1,533
|
$
|
1,396
|
$
|
1,919
|
Interest
cost
|
|
7,036
|
|
6,849
|
|
7,688
|
Expected
return on plan assets
|
|
(5,968)
|
|
(5,959)
|
|
(7,167)
|
Amortization
of prior service cost
|
|
127
|
|
129
|
|
152
|
Recognized
actuarial loss
|
|
1,421
|
|
1,444
|
|
1,749
|
Net
periodic pension cost
|
$
|
4,149
|
$
|
3,859
|
$
|
4,341
|
March
31,
|
|||||
|
2005
|
2006
|
2007
|
||
Assumptions:
|
|||||
Discount
rates
|
5.25-6.00%
|
4.50-5.75%
|
4.25-5.50%
|
||
Increase
in compensation
|
1.25-3.25%
|
1.25-3.25%
|
3.00%
|
||
Expected
long-term rate of return on plan assets
|
7.00-8.00%
|
6.30-8.00%
|
6.40-7.50%
|
March
31, 2006
|
March
31, 2007
|
|||||||
Asset
Category
|
U.S.
Plans
|
International
Plans
|
U.S.
Plans
|
International
Plans
|
||||
Equity
securities
|
53%
|
61%
|
52%
|
61%
|
||||
Debt
securities
|
47%
|
39%
|
37%
|
39%
|
||||
Other
|
—
|
—
|
11%
|
—
|
||||
Total
|
100%
|
100%
|
100%
|
100%
|
Years
ended March 31,
|
U.S.
Plans
|
International
Plans
|
||||
2008
|
|
$ 1
,351
|
|
|
$ 4,095
|
|
2009
|
|
1,362
|
|
|
4,262
|
|
2010
|
|
1,443
|
|
|
4,460
|
|
2011
|
|
1,531
|
|
|
4,647
|
|
2012
|
|
1,607
|
|
|
4,858
|
|
2013-2017
|
|
9,901
|
|
|
27,343
|
9.
|
Stock
Based Compensation:
|
|
|
Number
of Shares
|
|
Average
Price (a)
|
|
Average
Life (years) (b)
|
|
Aggregated
Intrinsic Value
|
Outstanding
at March 31, 2006
|
|
4,813
|
$
|
14.72
|
|
|
|
|
Options
granted
|
|
513
|
|
15.27
|
|
|
|
|
Options
exercised
|
|
(430)
|
|
10.27
|
|
|
$
|
2,762
|
Options
cancelled/forfeited
|
|
(75)
|
|
18.62
|
|
|
|
|
Outstanding
at March 31, 2007
|
|
4,821
|
$
|
15.14
|
|
5.11
|
$
|
280
|
Exercisable
at March 31, 2007
|
|
3,564
|
$
|
15.69
|
|
4.03
|
$
|
(1,755)
|
(a)
|
Weighted-average
exercise price
|
(b)
|
Weighted-average
contractual life remaining
|
|
|
|
Number
of Shares
|
|
Weighted
Average Grant-Date Fair Value
|
Unvested
balance at March 31, 2006
|
|
1,382
|
$
|
5.65
|
|
Options
granted
|
|
|
513
|
|
5.44
|
Options
forfeited
|
|
|
(36)
|
|
5.60
|
Options
vested
|
|
|
(602)
|
|
6.57
|
Unvested
balance at March 31, 2007
|
|
1,257
|
$
|
5.39
|
2005
|
2006
|
2007
|
||||
|
Grants
|
Grants
|
Grants
|
|||
Expected
life (years)
|
4
|
4
|
5
|
|||
Interest
rate
|
3.53%
|
4.00%
|
4.90%
|
|||
Volatility
|
55.97%
|
55.74%
|
35.25%
|
|||
Dividend
yield
|
1.07%
|
1.31%
|
0.98%
|
10.
|
Commitments
and Contingencies:
|
Years
ended March 31,
|
|
|
2008
|
$
|
6,617
|
2009
|
|
4,815
|
2010
|
|
3,273
|
2011
|
|
3,252
|
2012
|
|
1,323
|
Thereafter
|
|
833
|
11.
|
Derivative
Financial Instruments:
|
12.
|
Transactions
With Affiliate:
|
Years
Ended March 31,
|
||||||
|
2005
|
2006
|
2007
|
|||
Sales:
|
||||||
Product
and equipment sales to affiliates
|
$
|
24,352
|
$
|
21,562
|
$
|
21,813
|
Subcontracting
activities
|
|
2,231
|
|
1,790
|
|
1,601
|
Commissions
received
|
|
782
|
|
149
|
|
71
|
Purchases:
|
||||||
Purchases
of resale inventories, raw materials, supplies, equipment and
services
|
|
395,035
|
|
391,019
|
|
470,166
|
Other:
|
||||||
Dividends
paid
|
|
18,270
|
|
18,270
|
|
18,270
|
13.
|
Segment
and Geographic
Information:
|
|
2005
|
2006
|
2007
|
|||
Net
sales:
|
||||||
Passive
components
|
$
|
798,949
|
$
|
827,262
|
$
|
891,435
|
KED
Resale
|
|
417,434
|
|
427,539
|
|
509,768
|
Connectors
|
|
66,819
|
|
78,407
|
|
97,292
|
Total
|
$
|
1,283,202
|
$
|
1,333,208
|
$
|
1,498,495
|
Operating
profit (loss):
|
||||||
Passive
components
|
$
|
76,582
|
$
|
95,515
|
$
|
175,276
|
KED
Resale
|
23,511
|
32,713
|
40,633
|
|||
Connectors
|
6,975
|
6,393
|
7,301
|
|||
Research
& development
|
(11,049)
|
(10,892)
|
(11,285)
|
|||
Corporate
administration
|
|
(25,411)
|
|
(27,548)
|
|
(31,249)
|
Total
|
$
|
70,608
|
$
|
96,181
|
$
|
180,676
|
Depreciation:
|
||||||
Passive
components
|
$
|
74,352
|
$
|
57,272
|
$
|
45,049
|
KED
Resale
|
|
626
|
|
612
|
|
863
|
Connectors
|
|
3,472
|
|
4,638
|
|
6,038
|
Research
& development
|
|
1,082
|
|
1,114
|
|
886
|
Corporate
administration
|
|
1,202
|
|
1,330
|
|
1,023
|
Total
|
$
|
80,734
|
$
|
64,966
|
$
|
53,859
|
|
|
2005
|
|
2006
|
|
2007
|
Assets:
|
||||||
Passive
components
|
$
|
600,509
|
$
|
471,991
|
$
|
498,343
|
KED
Resale
|
|
33,163
|
|
31,347
|
|
39,943
|
Connectors
|
|
35,272
|
|
34,156
|
|
44,913
|
Research
& development
|
|
7,470
|
|
6,747
|
|
7,133
|
Cash,
A/R and L/T investments
|
|
876,532
|
|
976,773
|
|
1,164,547
|
Goodwill
- Passive components
|
|
59,909
|
|
59,206
|
|
60,889
|
Goodwill
- Connectors
|
|
10,277
|
|
10,277
|
|
10,277
|
Corporate
administration
|
|
66,617
|
|
84,711
|
|
73,491
|
Total
|
$
|
1,689,749
|
$
|
1,675,208
|
$
|
1,899,536
|
Capital
expenditures:
|
||||||
Passive
components
|
$
|
41,250
|
$
|
34,899
|
$
|
45,822
|
KED
Resale
|
|
160
|
|
136
|
|
288
|
Connectors
|
|
6,446
|
|
5,889
|
|
4,289
|
Research
& development
|
|
370
|
|
331
|
|
1,369
|
Corporate
administration
|
|
98
|
|
73
|
|
113
|
Total
|
$
|
48,324
|
$
|
41,328
|
$
|
51,881
|
Years
Ended March 31,
|
||||||
|
2005
|
2006
|
2007
|
|||
Net
sales:
|
||||||
Americas
|
$
|
402,155
|
$
|
418,056
|
$
|
439,695
|
Europe
|
|
346,370
|
|
311,078
|
|
343,162
|
Asia
|
|
534,677
|
|
604,074
|
|
715,638
|
Total
|
$
|
1,283,202
|
$
|
1,333,208
|
$
|
1,498,495
|
Property,
plant and equipment, net:
|
||||||
Americas
|
$
|
87,973
|
$
|
80,324
|
$
|
84,513
|
Europe
|
|
153,661
|
|
121,889
|
|
124,565
|
Asia
|
|
24,258
|
|
30,737
|
|
34,795
|
Total
|
$
|
265,892
|
$
|
232,950
|
$
|
243,873
|
14.
|
Environmental
Matters and Contingencies:
|
15.
|
Summary
of Quarterly Financial Information
(Unaudited):
|
First
Quarter
|
Second
Quarter
|
|||||||
2006
|
2007
|
2006
|
2007
|
|||||
Net
sales
|
$
|
319,814
|
$
|
366,408
|
$
|
325,931
|
$
|
374,648
|
Gross
profit
|
|
37,853
|
|
75,327
|
|
45,056
|
|
77,891
|
Net
income
|
|
10,230
|
|
36,233
|
|
17,025
|
|
38,785
|
Basic
earnings per share
|
|
0.06
|
|
0.21
|
|
0.10
|
|
0.23
|
Diluted
earnings per share
|
|
0.06
|
|
0.21
|
|
0.10
|
|
0.22
|
Third
Quarter
|
Fourth
Quarter
|
|||||||
2006
|
2007
|
2006
|
2007
|
|||||
Net
sales
|
$
|
349,068
|
$
|
378,088
|
$
|
338,395
|
$
|
379,351
|
Gross
profit
|
|
58,422
|
|
72,595
|
|
65,960
|
|
71,345
|
Net
income
|
|
24,414
|
|
35,827
|
|
30,083
|
|
43,020
|
Basic
earnings per share
|
|
0.14
|
|
0.21
|
|
0.17
|
|
0.25
|
Diluted
earnings per share
|
|
0.14
|
|
0.21
|
|
0.17
|
|
0.25
|
16.
|
Subsequent
Event:
|