0000859163falseAVX Corpfalse--03-31Q12020falsefalsetruefalseCommon stock equivalents not included in the computation of diluted earnings per share because the impact would have been anti-dilutive were 55 shares and 56 shares for the three month periods ended June 30, 2018 and 2019, respectively.The market value of the assets held in the trust for the non-qualified deferred compensation program is included as an asset and as a liability as the trust's assets are both assets of the Company and also a liability as they are available to general creditors in certain circumstances.Foreign currency derivatives in the form of forward contracts are included in prepaid and other assets or accrued expenses in the consolidated balance sheets. Unrealized gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income (loss). Realized gains and losses on derivatives designated as cash flow hedges and gains and losses on derivatives not designated as hedges are recorded in other 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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended ~~December~~June 3130, ~~2018~~2019

☐

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~~number1-7201

(Exact name of registrant as specified in its charter)

Delaware		33-0379007
(State or other jurisdiction of incorporation or organization)		(IRS Employer ID No.)

1 AVX Boulevard Fountain Inn, South Carolina		29644
(Address of principal executive offices)		(Zip Code)

(864) 967-2150
(Registrant's phone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value per share	AVX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class		Outstanding at ~~February~~August 12, 2019
Common Stock, par value $0.01 per share		~~168~~169,~~799~~092,~~776~~718

Table of Contents

AVX Corporation and Subsidiaries

Table of Contents

		Page
PART I:	Financial Information:
ITEM 1.	Financial Statements (unaudited):	3
	Consolidated Balance Sheets as of March 31, 2018 and December 31, 2018	3
	Consolidated Balance Sheets as of March 31, 2019 and June 30, 2019	3
	Consolidated Statements of Operations for the three and nine months ended December 31, 2017 and 2018	4
	Consolidated Statements of Operations for the three months ended June 30, 2018 and 2019	4
	Consolidated Statements of Comprehensive Income for the three and nine months ended December 31, 2017 and 2018	5
	Consolidated Statements of Comprehensive Income for the three months ended June 30, 2018 and 2019	5
	Consolidated Statements of Cash Flows for the nine months ended December 31, 2017 and 2018	6
	Consolidated Statements of Stockholders’ Equity for the three months ended June 30, 2018 and 2019	6
	Notes to Consolidated Financial Statements	7
	Consolidated Statements of Cash Flows for the three months ended June 30, 2018 and 2019	7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
	Notes to Consolidated Financial Statements	8
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	30
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
ITEM 4.	Controls and Procedures	30
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	27
ITEM 4.	Controls and Procedures	27
PART II:	Other Information:
ITEM 1.	Legal Proceedings	3128
ITEM 1A.	Risk Factors	3128
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
ITEM 6.	Exhibits	28
ITEM 6.	Exhibits	31
Signature		29
Signature		32

Table of Contents

PART I: FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (Unaudited)

AVX Corporation and Subsidiaries

Consolidated Balance Sheets (unaudited)

(in thousands, except per share data)

	As of			As of
	March 31, 2018			December 31, 2018
	March 31, 2019			June 30, 2019
Assets
Current assets:
Cash and cash equivalents	$	~~547~~378,~~415~~456		$	~~354~~307,~~218~~471
Short-term investments in securities		~~279~~434,~~787~~754			~~499~~482,~~528~~821
Accounts receivable - trade, net		~~275~~256,~~259~~991			~~249~~243,~~615~~417
Accounts receivable - affiliates		~~9,255~~500			~~527~~500
Inventories, net		~~516~~631,~~777~~688			~~590~~666,~~827~~248
Income taxes receivable		24,~~566~~788			254,~~399~~692
Prepaid and other		7076,~~665~~550			6373,~~665~~407
Total current assets		1,~~701~~783,~~724~~727			1,~~783~~778,~~779~~556
Property and equipment, net		~~418~~455,~~286~~757			~~442~~478,~~811~~044
Goodwill		316,~~298~~675			317,~~676~~080
Intangible assets, net		~~128~~118,~~612~~944			~~122~~115,~~171~~400
Deferred income taxes		75,~~720~~938			6680,~~051~~905
Other assets		3262,~~126~~237			3778,~~042~~590
Total Assets	$	2,~~672~~813,~~766~~278		$	2,~~769~~848,~~530~~575
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable - trade	$	8995,~~726~~498		$	9188,~~019~~020
Accounts payable - affiliates		261,~~320~~133			~~939~~920
Income taxes payable		824,~~290~~993			2613,~~629~~302
Accrued payroll and benefits		5255,~~044~~068			4853,~~003~~429
Accrued expenses		~~118~~136,~~183~~493			~~140~~137,~~208~~810
Total current liabilities		~~294~~313,~~563~~185			~~306~~293,~~798~~481
Income taxes payable		6947,~~645~~588			5947,~~061~~588
Pensions		109,~~605~~543			710,~~847~~059
Deferred income taxes		1214,~~895~~235			1113,~~939~~816
Other liabilities		4144,~~615~~547			4656,~~912~~472
Total Liabilities		429,~~323~~098			~~432~~421,~~557~~416
Stockholders' Equity:
Preferred stock, par value $.01 per share:
Authorized, 20,000 shares; None issued and outstanding		-			-
Common stock, par value $.01 per share:
Authorized, 300,000 shares; issued, 176,369 shares; outstanding, 168,434 and 168,795 shares at March 31, 2018 and December 31, 2018, respectively		1,764			1,764
Authorized, 300,000 shares; issued, 176,369 shares; outstanding, 168,826 and 169,081 shares at March 31, 2019 and June 30, 2019, respectively		1,764			1,764
Additional paid-in capital		~~360~~362,~~077~~498			~~361~~359,~~324~~831
Retained earnings		12,~~962~~156,~~467~~584			2,~~106~~191,~~514~~817
Accumulated other comprehensive income (loss)		21,257			(35,060	)
Accumulated other comprehensive loss		(39,494	)		(32,371	)
Treasury stock, at cost:
7,935 and 7,574 shares at March 31, 2018 and December 31, 2018, respectively		(102,122	)		(97,569	)
7,543 and 7,287 shares at March 31, 2019 and June 30, 2019, respectively		(97,172	)		(93,882	)
Total Stockholders' Equity		2,~~243~~384,~~443~~180			2,~~336~~427,~~973~~159
Total Liabilities and Stockholders' Equity	$	2,~~672~~813,~~766~~278		$	2,~~769~~848,~~530~~575

See accompanying notes to consolidated financial statements.

Table of Contents

AVX Corporation and Subsidiaries

Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

	Three Months Ended						~~Nine Months Ended~~
	December 31,						December 31,
	June 30,
	2017			2018			2017			2018
	2018			2019
Net sales	$	~~431~~454,~~795~~116		$	~~442~~401,~~395~~769		$	~~1,115,842~~		$	~~1,352,839~~
Cost of sales		~~349~~345,~~692~~783			~~316~~301,~~241~~124			~~882,620~~			~~991,876~~
Gross profit		82108,~~103~~333			~~126~~100,~~154~~645			~~233,222~~			~~360,963~~
Selling, general and administrative expenses		3640,~~772~~316			4241,~~187~~932			~~100,674~~			~~123,341~~
Legal and environmental charges		-			(5,589	)		-			(5,589	)
Profit from operations		68,017			58,713
Profit from operations		45,331			89,556			132,548			243,211
Other income (loss):
Other income (loss):
Interest income		3,483			4,867
Interest income		2,907			4,621			10,305			12,159
Other, net		(730	)		(371	)
Other, net		(686	)		(3,616	)		(1,917	)		(5,107	)
Income before income taxes		70,770			63,209
Income before income taxes		47,552			90,561			140,936			250,263
Provision for income taxes		14,807			8,532
Provision for income taxes		140,764			16,264			167,846			47,934
Net income	$	55,963		$	54,677
Net income (loss)	$	(93,212	)	$	74,297		$	(26,910	)	$	202,329
Income per share:
Income (loss) per share:
Basic	$	0.33		$	0.32
Basic	$	(0.55	)	$	0.44		$	(0.16	)	$	1.20
Diluted	$	0.33		$	0.32
Diluted	$	(0.55	)	$	0.44		$	(0.16	)	$	1.20
Dividends declared (per share)	$	0.115		$	0.115
Dividends declared (per share)	$	0.115		$	0.115		$	0.340		$	0.345
Weighted average common shares outstanding:
Weighted average common shares outstanding:
Basic		168,492			169,021
Basic		168,313			168,795			168,216			168,679
Diluted		168,964			169,478
Diluted		168,313			169,314			168,216			169,247

See accompanying notes to consolidated financial statements.

Table of Contents

AVX Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)

	Three Months Ended						~~Nine Months Ended~~
	December 31,						December 31,
	June 30,
	2017			2018			2017			2018
	2018			2019
Net income (loss)	$	(93,212	)	$	74,297		$	(26,910	)	$	202,329
Net income	$	55,963		$	54,677
Other comprehensive income (loss), net of income taxes
Foreign currency translation adjustment		7(41,~~749~~741	)		~~(18~~6,~~639~~438	)		~~41,196~~			~~(59,070~~	)
Foreign currency cash flow hedges adjustment		~~(518~~63	)		(36187	)		~~(939~~	)		~~153~~
Pension liability adjustment		~~243~~2,630			~~(246~~872	)		~~130~~			~~2,600~~
Other comprehensive income (loss), net of income taxes		7(39,~~474~~048	)		~~(18~~7,~~921~~123	)		~~40,387~~			~~(56,317~~	)
Comprehensive income (loss)	$	(85,738	)	$	55,376		$	13,477		$	146,012
Comprehensive income	$	16,915		$	61,800

See accompanying notes to consolidated financial statements.

Table of Contents

AVX Corporation and Subsidiaries

Consolidated Statements of ~~Cash~~Stockholders’ ~~Flows~~Equity (Unaudited)

(in thousands, except per share data)

	Nine Months Ended
																Accumulated
	December 31,
	Common Stock									Additional						Other
	2017			2018
	Number						Treasury			Paid-In			Retained			Comprehensive
Operating Activities:
	Of Shares			Amount			Stock			Capital			Earnings			Income (Loss)			Total
Net income (loss)	$	(26,910	)	$	202,329
Balance at March 31, 2018		168,434		$	1,764		$	(102,122	)	$	360,077		$	1,962,467		$	21,257		$	2,243,443
Adjustment to reconcile net income (loss) to net cash from operating activities:
Net income		-			-			-			-			55,963			-			55,963
Depreciation and amortization		38,258			65,109
Other comprehensive loss, net of income taxes		-			-			-			-			-			(39,048	)		(39,048	)
Stock-based compensation expense		2,527			3,098
Dividends of $0.115 per share		-			-			-			-			(19,466	)		-			(19,466	)
Deferred income taxes		40,666			7,321
Stock-based compensation expense		-			-			-			838			-			-			838
Loss on disposal of property and equipment		60			278
Stock option activity		95			-			1,940			(1,396	)		-			-			544
Loss from equity-method investments		-			107
Tax expense on stock option exercises		-			-			-			(24	)		-			-			(24	)
Changes in operating assets and liabilities, excluding acquisitions:
Payment of tax withholding for vested restricted stock units					-			-			(720	)		-			-			(720	)
Accounts receivable		(3,499	)		29,791
Treasury stock purchased		-			-			(811	)		-			-			-			(811	)
Inventories		28,152			(87,461	)
Balance at June 30, 2018		168,529		$	1,764		$	(100,993	)	$	358,775		$	1,998,964		$	(17,791	)	$	2,240,719
Accounts payable and accrued expenses		(55,523	)		(4,474	)
Balance at March 31, 2019		168,826		$	1,764		$	(97,172	)	$	362,498		$	2,156,584		$	(39,494	)	$	2,384,180
Income taxes payable		81,159			(33,345	)
Net income		-			-			-			-			54,677			-			54,677
Other assets		36,297			(30,271	)
Other comprehensive loss, net of income taxes		-			-			-			-			-			7,123			7,123
Other liabilities		19,763			44,515
Dividends of $0.115 per share		-			-			-			-			(19,444	)		-			(19,444	)
Net cash provided by operating activities		160,950			196,997
Stock-based compensation expense		-			-			-			996			-			-			996
Investing Activities:
Stock option activity		255			-			3,290			(2,494	)		-			-			796
Purchases of property and equipment		(65,249	)		(94,083	)
Tax benefit of stock option exercises		-			-			-			135			-			-			135
Purchase of business, net of cash and debt acquired		(150,277	)		(12,317	)
Payment of tax withholding for vested restricted stock units		-			-			-			(1,304	)		-			-			(1,304	)
Purchases of investment securities		(1,476,235	)		(1,102,776	)
Balance at June 30, 2019		169,081		$	1,764		$	(93,882	)	$	359,831		$	2,191,817		$	(32,371	)	$	2,427,159
Redemptions of investment securities		1,466,490			881,372
Other investing activities		(959	)		(950	)
Net cash used in investing activities		(226,230	)		(328,754	)
Financing Activities:
Dividends paid		(56,359	)		(58,196	)
Proceeds from exercise of stock options		4,369			3,515
Purchase of treasury stock		-			(811	)
Principle payments of debt		-			(1,893	)
Payments of tax withholdings for vested restricted stock units		(498	)		(790	)
Net cash used in financing activities		(52,488	)		(58,175	)
Effect of exchange rate on cash		3,307			(3,265	)
Decrease in cash and cash equivalents		(114,461	)		(193,197	)
Cash and cash equivalents at beginning of period		578,634			547,415
Cash and cash equivalents at end of period	$	464,173		$	354,218

See accompanying notes to consolidated financial statements.

Table of Contents

AVX Corporation and Subsidiaries

~~Notes~~Consolidated toStatements ~~the~~of ~~Consolidated~~Cash ~~Financial~~Flows ~~Statements~~ (Unaudited)

(in thousands~~, except per share data~~)

1. Basis of Presentation:

	Three Months Ended
	June 30,
	2018			2019
Operating Activities:
Net income	$	55,963		$	54,677
Adjustment to reconcile net income to net cash from operating activities:
Depreciation and amortization		20,289			22,185
Stock-based compensation expense		838			996
Deferred income taxes		(1,250	)		(3,190	)
Loss on disposal of property and equipment		33			620
Loss from equity-method investments		44			195
Changes in operating assets and liabilities, excluding acquisitions:
Accounts receivable		22,579			13,238
Inventories		(1,373	)		(32,718	)
Accounts payable and accrued expenses		(8,479	)		(17,671	)
Income taxes payable		14,107			(12,426	)
Other assets		(10,488	)		(7,582	)
Other liabilities		5,364			13,781
Net cash provided by operating activities		97,627			32,105

Investing Activities:
Purchases of property and equipment		(38,020	)		(34,350	)
Purchase of business, net of cash and debt acquired		(12,909	)		-
Purchases of investment securities		(380,803	)		(472,171	)
Redemptions of investment securities		270,947			424,269
Other investing activities		(958	)		-
Net cash used in investing activities		(161,743	)		(82,252	)

Financing Activities:
Dividends paid		(19,381	)		(19,444	)
Purchase of treasury stock		(811	)		-
Net change of equity awards		(199	)		(373	)
Principle payments of debt		(1,892	)		-
Payments of tax withholdings for vested restricted stock units		(720	)		(1,304	)
Net cash used in financing activities		(23,003	)		(21,121	)

Effect of exchange rate on cash		(2,361	)		283

Decrease in cash and cash equivalents		(89,480	)		(70,985	)

Cash, cash equivalents, and restricted cash at beginning of period		547,415			400,625
Cash, cash equivalents, and restricted cash at end of period	$	457,935		$	329,640
Reconciliation of cash, cash equivalents, and restricted cash to the Balance Sheet
Cash and cash equivalents		457,935			307,471
Restricted cash		-			22,169
Total cash, cash equivalents, and restricted cash to the Balance Sheet	$	457,935		$	329,640

~~The~~See consolidated financial statements of AVX Corporation and its subsidiaries (“AVX” or the “Company”) include all accounts of the Company and its subsidiaries. All intercompany transactions and accounts have been eliminated. We have prepared the accompanying ~~consolidated~~notes ~~financial statements pursuant~~ to ~~the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. These~~ consolidated financial statements are unaudited and, in the opinion of management, include all adjustments, consisting of normal recurring adjustments and accruals, necessary for the fair statement of the consolidated balance sheets, operating results, comprehensive income, and cash flows for the periods presented. Operating results for the three and nine months ended December 31, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2019 due to changes in economic conditions and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted in accordance with the rules and regulations of the SEC for interim financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.

~~Summary of Significant Accounting Policies~~ 7

We Table ~~have identified the accounting policies and estimates that are critical to our business operations and understanding our results~~ of operations. Those policies and estimates can be found in Note 1, “Summary of Significant Accounting Policies,” of the Notes to our Consolidated Financial Statements and in “Critical Accounting Policies and Estimates,” in “Management's Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. During the three and nine month periods ended December 31, 2018, there were no significant changes to any critical accounting policies or to the methodology used in determining estimates including those related to investment securities, inventories, goodwill, intangible assets, property and equipment, and contingencies other than those discussed below and in Note 3 related to revenue recognition.Contents

~~Revenue~~AVX ~~Recognition:~~Corporation and Subsidiaries

~~All~~Notes ~~products are built~~ to specification and tested by AVX or our suppliers for adherence to such specification before shipment to customers. We ship products to customers based upon firm orders. Shipping and handling costs are treated as fulfillment costs and as such are included in cost of sales. The Company applies this accounting policy election consistently to its sales. We recognize revenue as performance obligations are satisfied, which is when the ~~customer~~Consolidated ~~takes~~Financial ~~control~~Statements ~~of the products as they are shipped to or received by the customer in accordance with the terms of the agreement of sale.~~(Unaudited)

~~There~~(in ~~are general product warranties within our contracts~~thousands, asexcept ~~the Company warrants that products will function as expected in accordance with the specifications~~ per ~~the~~share ~~contract. These warranties cannot be purchased by the customer separately and accordingly these warranties are not considered to be separate performance obligations.~~data)

~~Payment terms for the Company’s sales are generally less than 90 days~~1. ~~Substantially~~Basis ~~all~~ of the Company’s receivables are collected within twelve months of the transfer of products to the customer and the Company expects this to continue going forward. The Company applies the practical expedient within Accounting Standards Codification 606 - Revenue (“ASC 606”) to all of its contracts with payment terms less than or equal to twelve months and does not recognize a financing component in the determination of the transaction price.Presentation:

WeThe ~~evaluate~~consolidated ~~gross~~financial ~~versus~~statements ~~net~~of ~~presentation~~AVX onCorporation ~~revenues~~and ~~from~~its ~~products~~subsidiaries ~~purchased~~(“AVX” or the “Company”) include all accounts of the Company and ~~resold~~its insubsidiaries. ~~accordance~~All ~~with~~significant intercompany transactions and accounts have been eliminated. We have prepared the ~~revenue~~accompanying ~~recognition~~financial ~~criteria~~statements ~~outlined~~pursuant into ~~ASC~~the ~~606~~rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. ~~Based~~These onconsolidated financial statements are unaudited and, in the ~~evaluation~~opinion of ~~our~~management, ~~resale~~include ~~arrangements~~all ~~with~~adjustments, ~~Kyocera~~consisting of normal recurring adjustments and accruals, ~~including~~necessary ~~consideration~~for the fair statement of the ~~primary~~consolidated ~~indicators~~balance ~~set~~sheets, ~~forth~~operating inresults, ~~ASC~~comprehensive ~~606~~income, westatements ~~record~~of ~~revenue~~stockholders’ ~~related~~equity and cash flows for the periods presented. Operating results for the three month period ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2020 due to ~~products~~changes ~~purchased~~in economic conditions and ~~resold~~other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted in accordance with the rules and regulations of the SEC for interim financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on aForm ~~gross~~10-K ~~basis~~for the fiscal year ended March 31, 2019.

7Summary of Significant Accounting Policies

~~Table~~We have identified the accounting policies and estimates that are critical to our business operations and understanding our results of ~~Contents~~operations. Those policies and estimates can be found in Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements and in “Critical Accounting Policies and Estimates,” in “Management's Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2019. During the three month period ended June 30, 2019, there were no significant changes to any critical accounting policies or to the methodology used in determining estimates including those related to investment securities, inventories, goodwill, intangible assets, property and equipment, and contingencies other than those discussed below.

~~The~~During ~~Company pays commissions to sales representatives on a per-sale basis and applies~~ the ~~practical~~three ~~expedient~~month ~~available~~period ~~within~~ended June ~~Accounting~~30, ~~Standards~~2019, ~~Codification~~goodwill ~~340~~increased –by ~~Other~~$405 ~~Assets~~due ~~and~~to ~~Deferred~~foreign ~~Costs~~currency ~~(“ASC 340”)~~translation. ~~Accordingly, commissions are expensed as incurred.~~

The Company recognizes the estimated variable consideration to be received as revenue and records a related reduction to accounts receivable or as an accrued expense for the consideration not expected to be received, based upon its estimate of credits issued or products returned under the sales allowance programs described below. Marketplace volatilities which impact the estimates of variable consideration include, but are not limited to, changes in economic conditions, pricing changes, product demand, inventory levels in the supply chain, the effects of technological change, and other variables that might result in changes to our estimates. Accordingly, there can be no assurance that actual results will not differ from those estimates. We utilize the “portfolio approach” practical expedient in ASC 606, which allows entities to apply the guidance to a portfolio of contracts with similar characteristics because the effects on the financial statements of this approach would not differ materially from applying the guidance to individual contracts. Using the “portfolio approach,” we believe we have an adequate basis to assess the reasonableness and reliability of our estimates for each program.Reclassifications

~~Returns~~Certain amounts in the prior year consolidated financial statements have been reclassified to the current year presentation. The impact of the reclassifications made to prior year amounts is not material and did not affect net loss.

~~Sales~~Relevant ~~revenue~~New ~~and~~Accounting cost of sales reported in the statement of operations are reduced to reflect estimated returns. We record an estimated right of return liability for returns at the time of sale based on historical trends, current pricing and volume information, other market specific information, and input from sales, marketing, and other key management personnel. The liability accrued reflects the variable consideration not expected to be received. The estimated value of the return to customer’s inventory is recorded as an asset. These procedures require the exercise of significant judgments. We believe that these procedures enable us to make reliable estimates of future returns. Our actual results have historically approximated our estimates. When the product is returned and verified, the customer is given credit against their accounts receivable.Standards

~~Distribution~~In ~~Programs~~2016, the FASB issued ASU 2016-02, “Leases”. This guidance changes the requirements for inclusion of certain right-of-use assets and the associated liabilities to be included in a statement of financial position. The Company adopted this guidance effective April 1, 2019, using the modified retrospective method and utilized the optional transition method under which the Company will continue to apply the legacy guidance in Accounting Standards Codification (“ASC”) 840, including its disclosure requirements, in the comparative period presented. In addition, the Company elected the package of practical expedients permitted under the transition guidance which permits the following: a) carrying forward the historical lease classification, b) not separating lease components from non-lease components within the Company’s facility lease contracts, c) not presenting comparative periods but rather recording a cumulative catch-up during fiscal 2020, and d) electing, by asset class, not to record on the balance sheet a lease whose term is twelve months or less including reasonably certain renewal options. As a result of the adoption of ASU 2016-02 for the fiscal year beginning April 1, 2019, the Company recorded initial operating lease right-of-use assets and operating lease liabilities related of $18,351 and $18,053, respectively. Right-of-use assets are included in “Other assets” on the Company’s Balance Sheet as of June 30, 2019. Lease liabilities are classified as current and non-current, and are included in “Accrued expenses” and “Other liabilities”, respectively, on the Company’s Balance Sheet as of June 30, 2019. Please refer to Note 2 for additional information.

A portion of our sales to independent electronic component distributor customers are subject to various distributor sales programs. We report provisions for distributor allowances in connection with such sales programs as a reduction in revenue and report distributor allowances on the balance sheet as either a reduction in accounts receivable or right-of-return liabilities. For the distribution programs described below, we do not track the individual units that are recorded against specific products sold from distributor inventories, which would allow us to directly compare revenue reduction for credits recorded during any period with credits ultimately awarded in respect of products sold during that period. Rather, we believe our use of the “portfolio approach” provides an adequate basis to assess the reasonableness and reliability of our estimates for each program. 8

~~Distributor~~ Table ~~Stock~~of ~~Rotation Program~~Contents

~~Stock~~In June ~~rotation is a program whereby distributor customers are allowed to return~~2016, ~~for~~the ~~credit,~~FASB ~~qualified~~issued ~~inventory,~~ASU ~~semi~~2016-~~annually~~13, ~~equal~~“Financial toInstruments a– ~~certain~~Credit ~~percentage,~~Losses: ~~primarily~~Measurements ~~limited to 5%~~ of ~~the~~Credit ~~previous~~Losses ~~six~~on ~~months~~Financial ~~net sales~~Instruments.” WeThis ~~record~~standard anrequires ~~estimated~~the ~~right~~measurement ofand ~~return~~recognition ~~liability~~of ~~for~~expected ~~stock~~credit ~~rotation~~losses held at ~~the~~amortized ~~time~~cost. ofThis ~~sale~~new ~~based~~standard onreplaces athe ~~percentage~~use of ~~distributor~~forward-looking ~~sales using historical trends, current pricing and volume~~ information, ~~other~~to ~~market~~estimate ~~specific~~credit ~~information,~~losses and ~~input~~requires ~~from~~credit ~~sales,~~losses ~~marketing,~~for ~~and~~available ~~other~~for ~~key~~sale ~~management~~debt ~~personnel.~~securities Anto ~~asset~~be is recorded ~~for~~through ~~the~~an ~~estimated~~allowance ~~value~~for ofcredit ~~returned~~losses ~~product.~~rather ~~These~~than ~~procedures~~a ~~require~~reduction in the ~~exercise~~amortized ofcost ~~significant judgments~~basis. WeThis ~~believe~~update ~~that~~is ~~these~~effective ~~procedures~~for ~~enable~~public uscompanies tofor ~~make~~annual ~~reliable~~reporting ~~estimates~~periods ofbeginning ~~future~~after December ~~returns~~15, ~~under the stock rotation program~~2019. ~~Our~~Management ~~actual results have historically approximated our estimates. When the product~~ is ~~returned~~currently ~~and~~evaluating ~~verified,~~ the ~~distributor~~impact isof ~~given~~ASU ~~credit~~2016-13 ~~against~~on ~~their~~our ~~accounts~~consolidated ~~receivable~~financial statements.

~~Distributor~~In August ~~Ship~~2017, the FASB issued ASU 2017-~~from~~12, “Derivatives and Hedging.” The standard aims to align the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results for cash flow and fair value hedge accounting with risk management activities. The guidance is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods. Additionally, in October 2018, the FASB issued ASU 2018-~~Stock~~16, “Derivatives and ~~Debit~~Hedging ~~Program~~(Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes”, which permits use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815. This update is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods. For entities that have not yet adopted ASU 2017-12, the concurrent adoption of ASU 2018-16 is required. The Company concurrently adopted ASU 2017-12 and ASU 2018-16 effective April 1, 2019. The adoption of these standards has not had a material impact on our consolidated financial statements.

~~Ship-from-Stock~~In February ~~and~~2018, ~~Debit~~the ~~(“ship~~FASB ~~and~~issued ~~debit”)~~ASU is2018-02, a"Income ~~program~~Statement ~~designed~~- toReporting ~~assist~~Comprehensive ~~distributor customers in meeting competitive prices in the marketplace on sales to their end customers~~Income." ~~Ship~~This ~~and~~standard ~~debit~~allows ~~programs require~~ a ~~request~~reclassification from ~~the~~accumulated ~~distributor~~other ~~for~~comprehensive aincome ~~pricing~~to ~~adjustment~~retained earnings for astranded ~~specific~~tax ~~part~~effects ~~for~~resulting afrom ~~sale to~~ the ~~distributor’s~~Tax ~~end~~Cuts ~~customer~~and ~~from~~Jobs Act ~~the~~of ~~distributor’s stock~~2017. The ~~pricing~~standard ~~adjustment~~ is ~~deemed~~effective ~~variable~~for ~~consideration.~~fiscal ~~Ship~~years ~~and~~beginning ~~debit authorizations~~after ~~may~~December ~~cover~~15, ~~current~~2018, ~~and~~including ~~future~~interim ~~distributor~~periods ~~activity~~within ~~for~~those afiscal ~~specific part for sale to their customer~~years. AtEarly ~~the~~adoption ~~time~~is wepermitted ~~record sales to the distributors, we provide an allowance~~ for ~~the~~any ~~variable~~interim ~~consideration~~and ofannual ~~the~~financial ~~estimated~~statements ~~future distributor activity related to such sales since it is probable~~ that ~~such~~have ~~sales~~not toyet ~~distributors~~been ~~will result in ship and debit activity~~issued. WeThe ~~record~~Company anadopted ~~estimated~~ASU ~~sales~~2018-02 ~~allowance~~effective April ~~based on sales during the period~~1, ~~credits~~2019 ~~issued~~and elected to ~~distributors,~~not ~~distributor~~reclassify ~~inventory~~the ~~levels,~~income ~~historical~~tax ~~trends,~~effects ~~market~~of ~~conditions,~~the ~~pricing~~Tax ~~trends~~Cuts ~~we see in our direct sales activity with original equipment manufacturers~~ and ~~other~~Jobs ~~customers,~~Act ~~and input~~ from ~~sales,~~accumulated ~~marketing, and~~ other ~~key~~comprehensive ~~management~~income ~~personnel.~~to ~~These~~retained ~~procedures require the exercise of significant judgments~~earnings. WeThe ~~believe~~adoption ~~that these procedures enable us to make reliable estimates~~ of ~~future~~this ~~credits~~standard ~~under~~has ~~the~~not ~~ship~~had ~~and~~a ~~debit~~material ~~program.~~impact ~~Our~~on ~~actual results have historically approximated~~ our ~~estimates.~~consolidated Atfinancial ~~the time the distributor ships the part from stock, the distributor debits us for the authorized pricing adjustment~~statements.

8In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”. This standard removes, adds and modifies certain disclosure requirements in the existing framework. ASU 2018-13 removes the following disclosure requirements: (i) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and (ii) the entity’s valuation processes for Level 3 fair value measurements. ASU 2018-13 adds the following disclosure requirements: (i) provide information about the measurement uncertainty of Level 3 fair value measurements as of the reporting date rather than a point in the future, (ii) disclose changes in unrealized gains and losses related to Level 3 measurements for the period included in other comprehensive income, and (iii) disclose for Level 3 measurements the range and weighted average of the significant unobservable inputs and the way it is calculated. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the potential impact on our consolidated financial statements and disclosures.

~~Table~~In August of2018, ~~Contents~~the FASB issued ASU 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General.” This standard removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and added additional disclosures. The standard is effective for fiscal years beginning after December 15, 2020, and early adoption is permitted. The amendments in ASU 2018-14 would need to be applied on a retrospective basis. We are currently assessing the impact the new guidance will have on our disclosures.

~~Relevant~~In August ~~New~~2018, the FASB issued ASU 2018-15, “Customer’s Accounting ~~Standards~~For Implementation Costs Incurred In A Cloud Computing Arrangement That Is A Service Contract”. This guidance reduces the complexity for the accounting for costs of implementing a cloud computing service arrangement and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This update is effective for public companies for annual reporting periods beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company early adopted this standard effective April 1, 2019, utilizing the prospective approach to all implementation costs incurred after the date of adoption. The adoption of ASU 2018-15 has not had a material impact on our consolidated financial statements.

InWe ~~2014,~~have ~~FASB~~reviewed ~~issued~~other ~~ASU~~newly ~~2014-09, “Revenue~~issued ~~from~~accounting ~~Contracts~~pronouncements ~~with Customers.” This guidance modifies how an entity will determine the measurement of revenue~~ and ~~timing~~concluded ofthat ~~when~~they itare iseither ~~recognized.~~not ~~The~~applicable ~~Company~~to ~~adopted~~our ~~this~~business ~~guidance~~or ~~effective April~~that ~~1, 2018, using the modified retrospective method, with~~ no material ~~impact~~effect is expected on our ~~results~~consolidated offinancial ~~operations. Please~~statements ~~refer~~as toa ~~Note~~result 3of ~~for~~future ~~additional information~~adoption.

In February 2016, FASB issued ASU 2016-02, “Leases.” This guidance changes the requirements for inclusion of certain right-of-use assets and the associated lease liabilities to be included in a statement of financial position. The classification criteria maintains the distinction between finance leases and operating leases. Regarding finance leases, lessees are required to 1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position, 2) recognize interest on the lease liability separate from the amortization of the right-of-use asset in the statement of comprehensive income, and 3) classify repayments of the principal portion of the lease liability within financing activities and payments of interest on the lease liability and variable lease payments within operating activities in the statement of cash flows. Regarding operating leases, lessees are required to 1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position, 2) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis, and 3) classify all cash payments within operating activities in the statement of cash flows. This guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. Based on work performed to date to analyze ASU 2016-02, including a review of the language and structure in our (including recent acquisitions) current lease and rental contracts, management does not anticipate the adoption of ASU 2016-02 to have a material impact on our consolidated financial statements.Leases:

~~In August~~As ~~2017,~~discussed ~~FASB~~in ~~issued~~Note ~~ASU 2017-12~~1, ~~“Derivatives~~we ~~and~~adopted ~~Hedging.” The standard aims to align~~ the ~~designation~~new ~~and~~leasing ~~measurement~~standard ~~guidance~~using ~~for qualifying hedging relationships and~~ the ~~presentation~~modified ofretrospective ~~hedge~~approach ~~results for cash flow and fair value hedge accounting~~ with ~~risk~~an ~~management activities. The guidance is~~ effective ~~for~~date ~~public companies for annual reporting periods beginning after~~of ~~December~~April 151, ~~2018, and interim periods within those annual periods~~2019. ~~Early~~Prior ~~adoption~~year isfinancial ~~permitted~~statements inwere ~~any~~not ~~interim~~recast ~~period~~under ~~after issuance. Additionally, in October 2018,~~ the ~~FASB~~new ~~issued~~standard ~~ASU 2018-16, “Derivatives~~ and ~~Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes”~~, which permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815. This update is effective for public companies for annual reporting periods beginning after December 15therefore, ~~2018, and interim periods within~~ those ~~annual~~amounts ~~periods.~~are ~~For entities that have~~ not ~~yet~~presented ~~adopted~~below. ~~ASU~~We ~~2017-12,~~elected the ~~concurrent~~package ~~adoption~~ of ~~ASU~~transition ~~2018-16~~provisions isavailable ~~required.~~for ~~The~~expired ~~Company~~or ~~intends~~existing ~~to adopt~~contracts, ~~this~~which ~~update~~allowed ~~concurrently~~us ~~with~~to ~~ASU~~carry ~~2017-12.~~forward ~~Management~~our ~~does~~historical ~~not~~assessments ~~anticipate the adoption~~ of ~~ASU~~(1) ~~2017-12~~whether ~~and~~contracts ~~ASU~~are ~~2018-16~~or tocontain ~~have~~leases, a(2) ~~material~~lease ~~impact~~classification onand ~~our~~(3) ~~consolidated~~initial ~~financial~~direct ~~statements~~costs.

We have reviewed other newly issued accounting pronouncements and concluded that they are either not applicable to our business or that no material effect is expected on our consolidated financial statements as a result of future adoption. 9

2. Table ~~Acquisitions:~~of Contents

WeThe ~~used~~Company’s ~~the~~operating ~~acquisition~~leases ~~method~~consist of ~~accounting~~automobiles, tomachinery ~~record~~and ~~the~~equipment, ~~below~~and ~~transactions~~real inestate, ~~accordance~~including ~~with~~office, ~~FASB~~storage ~~Accounting~~and ~~Standards~~parking ~~Codification~~spaces. ~~Topic~~The ~~805,~~duration ~~“Business~~of ~~Combinations~~these leases range from 1 to 6 years.” InThe ~~accordance~~Company has no financing lease arrangements. For leases with ~~the~~terms ~~acquisition~~greater ~~method~~than 12 months, the ~~purchase~~Company ~~price~~recorded isthe ~~allocated~~related toright-of-use asset and lease liability at the ~~assets~~present ~~acquired~~value ~~and~~of ~~liabilities~~lease ~~assumed~~payments ~~based~~over the term. Leases with a term 12 months or less at inception are not recorded on ~~their~~our ~~estimated~~Consolidated ~~fair~~Balance ~~values~~Sheet ~~with~~and are expensed on a straight-line basis over the ~~excess~~lease ~~being~~term ~~allocated~~in toour ~~goodwill~~Consolidated Statement of Operations. ~~Factors~~Some of our leases contain variable rental escalation clauses which are recognized when incurred. Additionally, some of our leases contain renewal options and/or termination options that ~~contributed~~are tofactored into the ~~recognition~~determination of ~~goodwill~~lease ~~include~~payments ~~expected~~and ~~synergies~~lease ~~and~~terms when it is reasonably certain that the ~~trained~~Company ~~workforce~~will exercise these options. The ~~goodwill~~Company isrecognizes ~~not~~lease ~~deductible~~expense for ~~tax~~these ~~purposes~~leases on a straight-line basis over the lease term. For leases beginning in fiscal year 2020 and later, we account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common area maintenance costs).

~~On October~~When 2available, ~~2017,~~we ~~AVX~~use ~~acquired~~ the ABrate ~~Electronics~~implicit ~~sensing~~in ~~and~~the ~~control business~~lease ~~from TT~~to ~~Electronics,~~discount ~~PLC,~~lease ~~for~~payments ~~$162~~to present value; however,~~038,~~ ~~net~~most of ~~cash~~ ~~acquired. Now~~our ~~named~~leases ~~Sensing~~do ~~and~~not ~~Control~~provide ~~(“S&C”) and~~a ~~consolidated~~readily ~~with~~determinable ~~our~~implicit ~~Interconnect~~rate. Therefore, ~~Sensing~~we ~~and~~must ~~Control~~estimate ~~Devices~~our ~~segment~~incremental ~~(formerly~~borrowing ~~AVX~~rate ~~Interconnect)~~to ~~for~~discount ~~financial~~the ~~reporting~~lease ~~purposes,~~payments ~~the~~based ~~acquisition~~on ~~enhances~~information ~~AVX’s~~available ~~position~~at inlease ~~the~~commencement. ~~automotive~~Our ~~business~~incremental ~~and~~borrowing ~~provides~~rate ~~further~~is ~~opportunities~~based ~~for~~on ~~expansion~~a ~~and~~credit-adjusted ~~growth~~risk-free rate at commencement date, which best approximates a secured rate over a similar term of lease.

9The following table presents our lease balances:

Table of Contents

	Classification on the Balance Sheet	As of June 30, 2019
Assets
Operating lease assets	Other assets	$	17,054

Liabilities
Current
Operating lease liabilities	Accrued expenses	$	5,057
Noncurrent
Operating lease liabilities	Other liabilities		11,727
Total lease liabilities		$	16,784

The ~~results~~following oftable ~~operations~~presents ~~for~~our ~~S&C~~lease ~~since~~costs ~~the~~for ~~acquisition~~operating ~~date are included in the accompanying consolidated statements of operations.~~leases:

Assets Acquired and Liabilities Assumed	Allocation of Purchase Price
	Three months ended
Accounts receivable	$	61,483
	June 30, 2019
Inventory		42,443
Operating lease cost	$	1,148
Accounts payable and accrued liabilities		(67,930	)
Short-term lease cost		533
Other current assets and liabilities, net		8,566
Variable lease cost		444
Working capital		44,562
Total lease cost	$	2,125
Property and equipment		85,794
Intangible assets		18,168
Other non-current assets and liabilities, net		(13,806	)
Total identified assets and liabilities		134,718
Purchase price		162,038
Goodwill	$	27,320

WeThe ~~recorded~~Company ~~approximately~~paid $182,~~168~~251 for ofits ~~identifiable~~operating ~~intangible~~leases ~~assets~~in ~~and~~the ~~$27~~fiscal quarter ended June 30,~~320~~ of2019, ~~goodwill~~which ~~pertaining~~are toincluded ~~this~~in ~~acquisition~~operating cash flows on the consolidated statement of cash flows. The ~~acquired~~weighted-average ~~intangible~~remaining ~~assets~~lease ~~relate~~term tofor the ABCompany’s ~~Electronics trade~~operating ~~name,~~leases ~~existing~~is ~~technology~~3.8 years and ~~customer~~the ~~relationships~~weighted-average ~~which~~discount ~~are~~rate ~~being~~is ~~amortized~~3.25% ~~over~~as ~~one,~~of June ~~eleven~~30, ~~and six years respectively~~2019.

The unaudited pro forma combined financial information is provided for the nine month period ended December 31, 2017 as though S&C had been acquired as of April 1, 2017. These pro forma combined results of revenues have been prepared by adjusting our historical results to include the historical results of S&C based on information available. Unaudited pro forma net sales for the nine month period ending December 31, 2017 would have been $1,302,956 with the inclusion of S&C's net sales for such period. We recognized revenue on S&C products of $266,970 for the nine month period ended December 31, 2018. 10

~~On January~~ Table ~~31, 2018, AVX acquired Ethertronics, Inc. for $127,677 net~~ of cash and debt acquired. The Ethertronics business is now named “AVX Antenna” and is consolidated with our Electronic Components segment. The purchase of the Ethertronics business expands AVX’s extensive electronic product offering into the antenna technology market and will provide new and exciting growth opportunities for AVX going forward.Contents

Assets Acquired and Liabilities Assumed	Allocation of Purchase Price
Accounts receivable	$	14,419
Accounts payable		(10,140	)
Other current assets and liabilities, net		3,613
Working capital		7,892
Debt		(21,105	)
Property and equipment		13,769
Intangible assets		64,800
Other non-current assets and liabilities, net		(6,434	)
Total identified assets and liabilities		58,922
Purchase price		127,677
Goodwill	$	68,755

The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities on the balance sheet as of June 30, 2019:

The results of operations for AVX Antenna since the acquisition date are included in the accompanying consolidated statements of operations. We recorded approximately $64,800 of identifiable intangible assets and $68,755 of goodwill. The acquired intangible assets relate to the Ethertronics trade name, existing technology and customer relationships which are being amortized over ten, ten, and thirteen years, respectively. We recognized revenue of $25,512 and $89,259 from AVX Antenna in the three and nine month periods ended December 31, 2018, respectively. In the quarter ended December 31, 2018 goodwill decreased by $9,064, and other non-current assets and liabilities, net decreased by $9,064, which was primarily the result of the Company's measurement of the deferred tax assets and liabilities that were acquired.

Fiscal Year Ending
2020	$	4,529
2021		4,955
2022		3,495
2023		2,040
2024		1,392
Thereafter		1,502
Total operating lease payments	$	17,913
Less imputed interest		1,129
Total operating lease liabilities	$	16,784

OnAs of April 301, ~~2018~~2019, ~~AVX,~~the ~~through~~Company ~~its~~had subsidiary AVX Interconnect Europe GmbH, acquired KUMATEC Sondermaschinenbau & Kunststoffverarbeitung GmbH (“Kumatec”) for consideration of approximately $12,882, net of cash acquired and debt assumed. Now named Kumatec and consolidated with our Interconnect, Sensing and Control segment, the ~~purchase~~following offuture ~~Kumatec~~minimum ~~provides~~lease ~~AVX~~payments ~~with~~under ~~additional~~non-cancelable ~~manufacturing~~leases ~~capabilities~~prior ~~and new business opportunities. We recorded approximately $3,189 of identifiable intangible assets and $9,802 of goodwill. The acquired intangible assets relate~~ to the ~~Kumatec~~adoption ~~trade name, existing technology and customer relationships which are being amortized over six years. We recognized revenue~~ of ~~$1,450 and $4,204 from Kumatec in~~ the ~~three~~new ~~and~~lease ~~nine month periods ended December 31, 2018.~~standard:

Fiscal Year Ending
2020	$	6,642
2021		4,742
2022		3,218
2023		2,372
2024		445
Thereafter		1,856
Total operating lease payments	$	19,275

~~Table~~3. ofEarnings ~~Contents~~per Share:

3Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding for the period. ~~Revenue~~Diluted ~~Recognition:~~earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the dilutive effect of potential common stock equivalents during the period. Stock options and unvested service-based RSU awards make up the common stock equivalents and are computed using the treasury stock method.

WeThe ~~adopted~~table ~~ASC~~below ~~606~~represents ~~effective April 1, 2018 using~~ the ~~modified~~basic ~~retrospective~~and ~~approach.~~diluted Weearnings ~~elected~~per ~~the~~share ~~practical~~and ~~expedient~~sets toforth ~~only apply~~ the ~~standard~~weighted toaverage ~~contracts~~number ~~that~~of ~~were~~shares ~~not~~of ~~completed~~common atstock ~~the~~outstanding ~~effective~~and ~~date.~~potential ~~Implementing~~common ~~this~~stock ~~standard~~equivalents ~~had no impact on our revenue recognition~~ for the ~~uncompleted~~three ~~contracts~~month ~~and~~periods ~~accordingly no cumulative adjustment was made to the opening balance of retained earnings as of~~ending ~~April~~June 130, 2018 and 2019.

We identified a change in how we record right-of-return liabilities which impacts Current Assets and Current Liabilities. The change is primarily due to how ASC 606 defines a right-of-return contract liability. The following table compares the amounts reported in the Consolidated Balance Sheet had the previous revenue recognition guidance been in effect:

	Three Months Ended
	June 30,
	2018		2019
Net income	$	55,963	$	54,677
Computation of Basic EPS:
Weighted Average Shares Outstanding used in Computing Basic EPS		168,492		169,021
Basic earnings per share	$	0.33	$	0.32
Computation of Diluted EPS:
Weighted Average Shares Outstanding used in Computing Basic EPS		168,492		169,021
Effect of stock awards		472		457
Weighted Average Shares used in Computing Diluted EPS (1)		168,964		169,478
Diluted earnings per share	$	0.33	$	0.32

	December 31, 2018
			Balances without		Increase Due to
	As reported		ASC 606 Adoption		Adoption
Accounts Receivable - trade, net	$	249,615	$	234,035	$	15,580
Accrued Expenses	$	140,208	$	124,628	$	15,580

(1)

Common stock equivalents not included in the computation of diluted earnings per share because the impact would have been anti-dilutive were 55 shares and 56 shares for the three month periods ended June 30, 2018 and 2019, respectively.

~~Reference~~4. ~~Note 5, "~~Trade Accounts Receivable and Contract Liabilities~~," for information on variable consideration and right-of-return liability details.~~:

Reference Note 11, "Segment and Geographic Information," for disaggregated revenue information.

	March 31, 2019		June 30, 2019
Gross Accounts Receivable - trade	$	273,053	$	259,417
Less:
Allowances for doubtful accounts		1,276		1,167
Stock rotation and ship from stock and debt		14,140		14,350
Sales returns and discounts		646		483
Total allowances		16,062		16,000
Accounts Receivable - trade, net		256,991		243,417

~~4. Earnings (Loss) per Share:~~ 11

~~Basic~~ Table ~~earnings (loss) per share are computed by dividing net earnings (loss) by the weighted average number~~ of shares of common stock outstanding for the period. Diluted earnings (loss) per share are computed by dividing net earnings (loss) by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the dilutive effect of potential common stock equivalents during the period. Stock options and unvested service-based restricted stock unit (“RSU”) awards make up the common stock equivalents and are computed using the treasury stock method.Contents

~~The~~Charges ~~table~~related ~~below~~to ~~represents~~allowances ~~the~~for ~~basic~~doubtful ~~and~~accounts ~~diluted~~are ~~earnings~~charged ~~(loss)~~to ~~per~~selling, ~~share~~general and ~~sets~~administrative ~~forth~~expenses. ~~the~~Charges ~~weighted~~related ~~average~~to ~~number~~stock ofrotation, ~~shares~~ship offrom ~~common~~ stock ~~outstanding~~and debit, sales returns, and ~~potential~~sales ~~common~~discounts ~~stock~~are ~~equivalents~~reported ~~for~~as ~~the~~deductions ~~three~~from ~~and~~revenue. ~~nine~~Please ~~month~~refer ~~periods~~to ~~ending December~~Note 3110, ~~2017~~"Segment and ~~2018~~Geographic Information," for disaggregated revenue information.

	Three Months Ended						~~Nine Months Ended~~
	December 31,						December 31,
	June 30,
	2017			2018			2017			2018
	2018			2019
Net income (loss)	$	(93,212	)	$	74,297		$	(26,910	)	$	202,329
Allowances for doubtful accounts:
Computation of Basic EPS:
Beginning balance	$	1,893		$	1,276
Weighted Average Shares Outstanding used in Computing Basic EPS		168,313			168,795			168,216			168,679
Charges		91			26
Basic earnings (loss) per share	$	(0.55	)	$	0.44		$	(0.16	)	$	1.20
Applications		(690	)		(137	)
Computation of Diluted EPS:
Translation, acquisition and other		-			2
Weighted Average Shares Outstanding used in Computing Basic EPS		168,313			168,795			168,216			168,679
Ending balance	$	1,294		$	1,167
Effect of stock awards		-			519			-			568
Weighted Average Shares used in Computing Diluted EPS (1)		168,313			169,314			168,216			169,247
Diluted earnings (loss) per share	$	(0.55	)	$	0.44		$	(0.16	)	$	1.20

(1) Common stock equivalents not included in the computation of diluted earnings per share because the impact would have been anti-dilutive were 0 shares for the three month periods ended December 31, 2017 and 2018, respectively, and 121 shares and 8 shares for the nine months ended December 31, 2017 and 2018, respectively.

	Three Months Ended
	June 30,
	2018			2019
Stock rotation and ship stock and debit:
Beginning balance	$	15,989		$	14,140
Charges		6,392			5,298
Applications		(6,186	)		(5,088	)
Stock rotation reclassified to liability		(6,326	)		-
Ending balance	$	9,869		$	14,350

	Three Months Ended
	June 30,
	2018			2019
Sales returns and discounts:
Beginning balance	$	6,875		$	646
Charges		86			1,588
Applications		(215	)		(1,719	)
Sales returns reclassified to liability		(6,157	)		-
Translation, acquisition and other		-			(32	)
Ending balance	$	589		$	483

Table of Contents

	Three Months Ended
	June 30,
	2018			2019

Contract liabilities:
Beginning balance	$	-		$	15,753
Increase due to adoption of ASC 606		12,483			-
Charges		6,221			2,870
Applications		(4,819	)		(2,035	)
Translation, acquisition and other		(16	)		9
Ending balance	$	13,869		$	16,597

5. ~~Trade~~Fair ~~Accounts Receivable and Contract Liabilities~~Value:

	March 31, 2018		December 31, 2018
Gross Accounts Receivable - trade	$	300,016	$	261,721
Less:
Allowances for doubtful accounts		1,893		1,188
Stock rotation		7,109		-
Ship from stock and debit		9,663		10,521
Sales returns		5,374		-
Discounts		718		397
Total allowances		24,757		12,106
Accounts Receivable - trade, net	$	275,259	$	249,615

Fair Value Hierarchy:

~~Charges~~The ~~related~~fair tovalue ~~allowances~~framework ~~for~~requires ~~doubtful~~the ~~accounts~~categorization ~~are~~of ~~charged~~assets toand ~~selling,~~liabilities ~~general~~into ~~and~~three ~~administrative~~levels ~~expenses.~~based ~~Charges~~upon ~~related~~the toassumptions ~~stock~~(inputs) ~~rotation,~~used ~~ship-from-stock~~to ~~and~~value ~~debit,~~the ~~sales~~assets ~~returns,~~or ~~and~~liabilities. ~~sales~~Level ~~discounts~~1 ~~are~~provides ~~reported~~the asmost ~~deductions~~reliable ~~from~~measure ~~revenue.~~of ~~Please~~fair ~~refer~~value, towhereas ~~Note~~Level 3, ~~“Revenue~~generally ~~Recognition,”~~requires ~~for~~significant ~~additional~~management ~~information~~judgment. The three levels are defined as follows:

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2017			2018			2017			2018
Allowances for doubtful accounts:
Beginning balance	$	601		$	1,327		$	1,285		$	1,893
Charges		-			-			164			81
Applications		(143	)		(153	)		(991	)		(800	)
Translation, acquisition and other		723			14			723			14
Ending balance	$	1,181		$	1,188		$	1,181		$	1,188

	^■	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.

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2017			2018			2017			2018
Stock rotation and ship stock and debit:
Beginning balance	$	15,119		$	10,201		$	14,853		$	15,989
Charges		8,309			6,658			22,575			20,122
Applications		(7,901	)		(6,338	)		(21,901	)		(19,264	)
Stock rotation reclassified to liability		-			-			-			(6,326	)
Ending balance	$	15,527		$	10,521		$	15,527		$	10,521

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2017			2018			2017			2018
Sales returns and discounts:
Beginning balance	$	5,076		$	338		$	5,623		$	6,875
Charges		6,105			173			12,885			2,233
Applications		(4,877	)		(114	)		(12,249	)		(2,548	)
Sales returns reclassified to liability		-			-			-			(6,157	)
Translation, acquisition and other		93			-			138			(6	)
Ending balance	$	6,397		$	397		$	6,397		$	397

Table of Contents

12During the three month periods ended March 31, 2019 and June 30, 2019, there have been no transfers of assets or liabilities between levels within the fair value hierarchy.

Table of Contents

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2019		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program⁽¹⁾	$	4,693	$	3,265	$	1,428	$	-
Foreign currency derivatives⁽²⁾		853		-		853		-
Total	$	5,546	$	3,265	$	2,281	$	-

6. Fair Value:

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2019		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program⁽¹⁾	$	4,693	$	3,265	$	1,428	$	-
Foreign currency derivatives(2)		588		-		588		-
Total	$	5,281	$	3,265	$	2,016	$	-

Fair Value Hierarchy:

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	June 30, 2019		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program⁽¹⁾	$	4,963	$	3,468	$	1,495	$	-
Foreign currency derivatives⁽²⁾		601		-		601		-
Total	$	5,564	$	3,468	$	2,096	$	-

The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to value the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: 13

■ Table ~~Level~~of ~~1: Unadjusted quoted prices in active markets for identical assets and liabilities.~~Contents

■ 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.

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	June 30, 2019		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program⁽¹⁾	$	4,963	$	3,468	$	1,495	$	-
Foreign currency derivatives⁽²⁾		619		-		619		-
Total	$	5,582	$	3,468	$	2,114	$	-

■(1) ~~Level~~The 3:market ~~Unobservable~~value ~~inputs~~of ~~reflecting~~the ~~management’s~~assets ~~own~~held ~~assumptions~~in ~~about~~the trust for the ~~inputs~~non-qualified ~~used~~deferred incompensation ~~pricing~~program ~~the~~is included as an asset orand as a liability as the trust’s assets are both assets of the Company and also a liability as they are available to general creditors in certain circumstances.

~~During~~(2) ~~the~~Foreign ~~three~~currency ~~and~~derivatives ~~nine~~in ~~month~~the ~~periods~~form ~~ended December~~of ~~31,~~forward ~~2018,~~contracts ~~there~~are ~~have~~included ~~been~~in noprepaid ~~transfers~~and ofother assets or ~~liabilities~~accrued ~~between~~expenses ~~levels~~in ~~within~~ the ~~fair~~consolidated ~~value~~balance ~~hierarchy~~sheets. Unrealized gains and losses on derivatives designated as cash flow hedges are recorded in other comprehensive income (loss). Realized gains and losses on derivatives designated as cash flow hedges and gains and losses on derivatives not designated as hedges are recorded in other income.

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2018		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program(1)	$	6,649	$	5,959	$	690	$	-
Foreign currency derivatives(2)		257		-		257		-
Total	$	6,906	$	5,959	$	947	$	-

Valuation Techniques:

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	March 31, 2018		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program(1)	$	6,649	$	5,959	$	690	$	-
Foreign currency derivatives(2)		514		-		514		-
Total	$	7,163	$	5,959	$	1,204	$	-

The following describes valuation techniques used to appropriately value our assets held in the non-qualified deferred compensation plan and derivatives.

13Assets held in the non-qualified deferred compensation plan

~~Table~~Assets valued using Level 1 and Level 2 inputs in the table above represent assets from our non-qualified deferred compensation program. The funds in the non-qualified deferred compensation program are valued based on the number of ~~Contents~~shares in the funds using a price per share traded in an active market.

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	December 31, 2018		(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Assets held in the non-qualified deferred compensation program(1)	$	7,133	$	5,342	$	1,791	$	-
Foreign currency derivatives(2)		697		-		697		-
Total	$	7,830	$	5,342	$	2,488	$	-

Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. If the cost of an investment exceeds its fair value, among other factors, we evaluate general market conditions, the duration and extent to which the fair value is less than cost, and whether or not we expect to recover the security's entire amortized cost. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established.

			Based on
			Quoted
			prices		Other
			in active		observable		Unobservable
	Fair Value at		markets		inputs		inputs
	December 31, 2018		(Level 1)		(Level 2)		(Level 3)
Liabilities measured at fair value on a recurring basis:
Obligation related to assets held in the non-qualified deferred compensation program(1)	$	7,133	$	5,342	$	1,791	$	-
Foreign currency derivatives(2)		679		-		679		-
Total	$	7,812	$	5,342	$	2,470	$	-

Derivatives

~~(1)~~We ~~The~~primarily ~~market~~use ~~value~~forward ofcontracts, ~~the~~with ~~assets~~maturities ~~held~~generally inless ~~the~~than ~~trust~~four ~~for~~months, designated as cash flow hedges, to protect against the ~~non-qualified~~foreign ~~deferred~~currency ~~compensation~~exchange ~~program~~rate isrisks ~~included~~inherent asin anour ~~asset~~forecasted transactions related to purchase commitments and assales, adenominated ~~liability~~in various currencies. We also use derivatives not designated as hedging instruments to hedge foreign currency balance sheet exposures. These derivatives are used to offset currency changes in the ~~trust’s~~fair value of the hedged assets and liabilities. Fair values for all of our derivative financial instruments are ~~both~~valued ~~assets~~by adjusting the market spot rate by forward points, based on the date of the ~~Company~~contract. ~~and~~The ~~also~~spot arates ~~liability~~and asforward ~~they~~points used are ~~available~~an toaverage ~~general~~rate ~~creditors~~from inan ~~certain~~actively ~~circumstances~~traded market. At March 31, 2019 and June 30, 2019, all of our forward contracts are valued using Level 2 measurements.

~~(2) Foreign currency derivatives in the form of forward contracts are included in prepaid and other assets or accrued expenses in the consolidated balance sheets~~6. ~~Unrealized~~Financial ~~gains~~Instruments and ~~losses~~Investments ~~on derivatives designated as cash flow hedges are recorded~~ in ~~other comprehensive income (loss). Realized gains and losses on derivatives designated as cash flow hedges and gains and losses on derivatives not designated as hedges are recorded in other income.~~Securities:

~~Valuation~~At March ~~Techniques:~~31, 2019 and June 30, 2019, we classified investments in debt securities and time deposits as held-to-maturity securities.

~~The~~Our ~~following~~long-term ~~describes~~and ~~valuation~~short-term ~~techniques~~investment ~~used~~securities are accounted for as held-to-maturity ~~appropriately~~securities ~~value~~and ~~our~~are ~~assets~~carried ~~held~~at inamortized cost. We have the ~~non~~ability and intent to hold these investments until maturity. All income generated from the held-~~qualified~~to-maturity ~~deferred~~securities ~~compensation~~investments ~~plan~~are ~~and~~recorded ~~derivatives~~as interest income.

~~Assets held in the non-qualified deferred compensation plan~~ 14

~~Assets~~ Table valued using Level 1 and Level 2 inputs in the table above represent assets from our non-qualified deferred compensation program. The funds in the non-qualified deferred compensation program are valued based on the number of ~~shares in the funds using a price per share traded in an active market.~~Contents

Investments ~~are considered to be impaired when a decline~~ in ~~fair value is judged~~ held-to ~~be other~~-~~than-temporary.~~maturity ~~If the cost of an investment exceeds its fair value~~securities, ~~among~~recorded ~~other~~at ~~factors, we evaluate general market conditions, the duration and extent to which the fair value is less than cost, and whether or not we expect to recover the security's entire~~ amortized cost~~. Once a decline in fair value is determined to be other-than-temporary~~, anwere ~~impairment~~as ~~charge is recorded and a new cost basis in the investment is established.~~follows:

March 31, 2019

Gross

Unrealized

Estimated

Cost

Gains

Losses

Fair Value

Short-term investments:

Time deposits

434,754

184

434,938

Table of Contents

June 30, 2019

Gross

Unrealized

Estimated

Cost

Gains

Losses

Fair Value

Short-term investments:

Time deposits

482,821

347

483,168

~~Derivatives~~The amortized cost and estimated fair value of held-to-maturity investments at June 30, 2019, by contractual maturity, are shown below. The estimated fair value of these investments are based on valuation inputs that include benchmark yields, reported trades, broker and dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data, which are Level 2 inputs in the fair value hierarchy. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

We primarily use forward contracts, with maturities generally less than four months, designated as cash flow hedges, to protect against the foreign currency exchange rate risks inherent in our forecasted transactions related to purchase commitments and sales, denominated in various currencies. We also use derivatives not designated as hedging instruments to hedge foreign currency balance sheet exposures. These derivatives are used to offset currency changes in the fair value of the hedged assets and liabilities. Fair values for all of our derivative financial instruments are valued by adjusting the market spot rate by forward points, based on the date of the contract. The spot rates and forward points used are an average rate from an actively traded market. At March 31, 2018 and December 31, 2018, all of our forward contracts are valued using Level 2 measurements.

	Held-to-Maturity
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less		482,821		483,168

7. ~~Financial Instruments and Investments in Securities~~Inventories:

At March 31, 2018 and December 31, 2018, we classified investments in debt securities and time deposits as held-to-maturity securities.

	March 31, 2019		June 30, 2019
Finished goods	$	102,373	$	108,743
Work in process		142,475		142,349
Raw materials		386,840		415,156
Total Inventories, net	$	631,688	$	666,248

~~Our long-term and short-term investment securities are accounted for as held-to-maturity securities and are carried at amortized cost~~8. WeCommitments ~~have the ability~~ and ~~intent to hold these investments until maturity. All income generated from the held-to-maturity securities investments are recorded as interest income.~~Contingencies:

~~Investments~~We inhave ~~held~~been identified by the United States Environmental Protection Agency (“EPA”), state governmental agencies or other private parties as a potentially responsible party (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), or equivalent non-toU.S., state or local laws, for clean-~~maturity~~up ~~securities~~and response costs associated with certain sites at which remediation is required with respect to prior contamination. Because CERCLA or such state statutes authorize joint and several liability, ~~recorded~~the EPA or non-U.S., state or local regulatory authorities could seek to recover all clean-up costs from any one of the PRPs at ~~amortized~~a ~~cost~~site despite the involvement of other PRPs. At certain sites, ~~were~~financially asresponsible ~~follows:~~ PRPs other than AVX also are, or have been, involved in site investigation and clean-up activities. We believe that liability resulting from these sites will be apportioned between AVX and other PRPs.

	March 31, 2018
			Gross		Gross
			Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
Short-term investments:
Commercial paper	$	10,597	$	-	$	(1	)	$	10,596
Time deposits		269,190		203		-			269,393
	$	279,787	$	203	$	(1	)	$	279,989

	December 31, 2018
			Gross		Gross
			Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Short-term investments:
Commercial paper	$	74,505	$	314	$	-	$	74,819
Time deposits		425,023		369		-		425,392
	$	499,528	$	683	$	-	$	500,211

Table of Contents

~~The~~To ~~amortized~~resolve ~~cost~~our ~~and~~liability ~~estimated~~at ~~fair~~the ~~value~~sites ofat ~~held-to-maturity~~which ~~investments~~we ~~at December~~have ~~31,~~been ~~2018,~~named bya ~~contractual maturity~~PRP, ~~are~~we ~~shown~~have ~~below.~~entered ~~The~~into ~~estimated~~various ~~fair~~administrative ~~value~~orders ofand ~~these~~consent ~~investments~~decrees ~~are~~with ~~based~~federal onand ~~valuation~~state ~~inputs~~regulatory ~~that~~agencies ~~include~~governing ~~benchmark~~the ~~yields,~~timing ~~reported~~and ~~trades,~~nature ~~broker~~of investigation and ~~dealer~~remediation. ~~quotes,~~As ~~issuer~~is ~~spreads~~customary, ~~two-sided~~the ~~markets,~~orders ~~benchmark~~and ~~securities,~~decrees ~~bids,~~regarding ~~offers,~~sites ~~and~~where ~~reference~~the ~~data,~~PRPs ~~which~~ are ~~Level~~not 2themselves ~~inputs~~implementing inthe chosen remedy contain provisions allowing the ~~fair~~EPA ~~value~~to ~~hierarchy.~~reopen ~~Actual~~the ~~maturities may~~agreement ~~differ~~and ~~from~~seek ~~contractual~~additional ~~maturities~~amounts ~~because~~from ~~issuers may~~settling ~~have~~PRPs in the ~~right~~event tothat ~~call~~certain orcontingencies ~~prepay~~occur, ~~obligations~~such ~~without~~as ~~call~~the ordiscovery ~~prepayment~~of ~~penalties~~significant new information about site conditions.

	Held-to-Maturity
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	499,528	$	500,211
Due after one year through five years		-		-
Total	$	499,528	$	500,211

On June 3, 2010, AVX entered into an agreement with the EPA and the City of New Bedford, pursuant to which AVX is required to perform environmental remediation at a site referred to as the “Aerovox Site” (the “Site”), located in New Bedford, Massachusetts. AVX has substantially completed its obligations pursuant to such agreement with the EPA and the City of New Bedford with respect to the satisfaction of AVX’s federal law requirements. The Massachusetts Department of Environmental Protection has jurisdiction over the balance of the environmental remediation at the Site. AVX has submitted its proposed remedy, but until the state has approved such proposal, AVX cannot determine if additional groundwater and soil remediation will be required, if substantial material will have to be disposed of offsite, or if additional remediation techniques will be required, any of which could result in a more extensive and costly plan of remediation. Further, the Site and the remediation may be subject to additional scrutiny under other statutory procedures which could also add to the cost of remediation. During the year ended March 31, 2019 we increased our estimated accrual for work to be done at the Site by $8,312 pursuant to discussions with the Massachusetts Department of Environmental Protection and our environmental engineers. We have a remaining accrual of $22,043 at June 30, 2019, representing our current estimate of the potential liability related to the remaining performance of environmental remediation actions at the Site and neighboring properties using certain assumptions regarding the plan of remediation. Until all parties agree and remediation is complete, we cannot be certain there will be no additional cost relating to the Site.

15We had total reserves of approximately $26,371 and $26,419 at March 31, 2019 and June 30, 2019, respectively, related to various environmental matters and sites, including those discussed above. These reserves are classified in the Consolidated Balance Sheets as $5,749 and $5,597 in accrued expenses at March 31, 2019 and June 30, 2019, respectively, and $20,622 and $20,822 in other non-current liabilities at March 31, 2019 and June 30, 2019, respectively. The amounts recorded for identified environmental liabilities are based on estimates. Periodically, we review amounts recorded and adjust them to reflect additional legal and technical information that becomes available. Uncertainties about the status of laws, regulations, regulatory actions, technology, and information related to individual sites make it difficult to develop an estimate of the reasonably possible aggregate environmental remediation exposure. Accordingly, these costs could differ significantly from our current estimates.

~~Table~~On April 19, 2016, the Canadian Ministry of ~~Contents~~the Environment and Climate Change (the “MoE”) issued a Director’s Order naming AVX Corporation, and others, as responsible parties with respect to a location in Hamilton, Ontario that was at one time the site of operations of Aerovox Canada, a former subsidiary of Aerovox Corporation, a predecessor of AVX. AVX has taken the position that any liability of Aerovox Canada for such site under the laws of Canada cannot be imposed on AVX. At present, it is unclear whether the MoE will seek to enforce such Canadian order against AVX, and whether, in the event it does so, AVX will have any liability under applicable law. AVX intends to contest any such course of action that may be taken by the MoE.

8In connection with the same location, Union Gas Limited and Coca-Cola Refreshments Canada Company filed suits in the Superior Court of Justice for Ontario, Canada, against AVX Corporation, Aerovox Corp. ~~Inventories:~~and Cooper Industries, LLC seeking to recover the costs of remediation of the site and for damages associated with alleged contamination of the site. Those suits were filed on April 18, 2018, but not served on AVX until October 11, 2018, and are in their initial stages. AVX is considering its legal options but intends to vigorously defend these matters.

	March 31, 2018		December 31, 2018
Finished goods	$	93,467	$	95,022
Work in process		133,556		141,884
Raw materials		289,754		353,921
Total Inventories, net	$	516,777	$	590,827

We also operate, or did at one time, on other sites that may have potential future environmental issues as a result of activities at sites during AVX’s long history of manufacturing operations or prior to the start of operations by AVX. Even though we may have rights of indemnity for such environmental matters at certain sites, regulatory agencies in those jurisdictions may require us to address such issues. Once it becomes probable that we will incur costs in connection with remediation of a site and such costs can be reasonably estimated, we establish reserves or adjust our reserves for our projected share of these costs. A separate account receivable is recorded for any indemnified costs. Our environmental reserves are not discounted and do not reflect any possible future insurance recoveries, which are not expected to be significant, but do reflect a reasonable estimate of cost sharing at multiple party sites or indemnification of our liability by a third party.

9We are not involved in any pending or threatened environmental proceedings that would require curtailment of our operations. ~~Commitments~~We continually expend funds to ensure that our facilities comply with applicable environmental regulations. While we believe that we are in compliance with applicable environmental laws, we cannot accurately predict future developments and ~~Contingencies:~~do not necessarily have knowledge of all past occurrences on sites that we currently occupy. New environmental regulations may be enacted and we cannot determine the modifications, if any, in our operations that any such future regulations might require, or the cost of compliance with such regulations. Moreover, the risk of environmental liability and remediation costs is inherent in the nature of our business and, therefore, there can be no assurance that material environmental costs, including remediation costs, will not arise in the future.

We have been identified by the United States Environmental Protection Agency (“EPA”), state governmental agencies or other private parties as a potentially responsible party (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), or equivalent non-U.S., state or local laws, for clean-up and response costs associated with certain sites at which remediation is required with respect to prior contamination. Because CERCLA or such state statutes authorize joint and several liability, the EPA or non-U.S., state or local regulatory authorities could seek to recover all clean-up costs from any one of the PRPs at a site despite the involvement of other PRPs. At certain sites, financially responsible PRPs other than AVX also are, or have been, involved in site investigation and clean-up activities. We believe that liability resulting from these sites will be apportioned between AVX and other PRPs. 16

To Table resolve our liability at the sites at which we have been named a PRP, we have entered into various administrative orders and consent decrees with federal and state regulatory agencies governing the timing and nature of investigation and remediation. As is customary, the orders and decrees regarding sites where the PRPs are not themselves implementing the chosen remedy contain provisions allowing the EPA to reopen the agreement and seek additional amounts from settling PRPs in the event that certain contingencies occur, such as the discovery of significant new information about site conditions.Contents

On ~~June~~April 325, ~~2010~~2013, AVX ~~entered~~was ~~into~~named anas ~~agreement~~a ~~with~~defendant ~~the~~in ~~EPA~~a ~~and~~patent ~~the~~infringement ~~City~~case offiled ~~New~~in ~~Bedford,~~the ~~pursuant~~United toStates ~~which~~District ~~AVX~~Court isfor ~~required to perform environmental remediation at a site referred to as~~ the ~~“Aerovox~~District ~~Site”~~of ~~(the~~Delaware ~~“Site”),~~captioned ~~located in New Bedford~~Greatbatch, ~~Massachusetts~~Inc. v. AVX ~~has~~Corporation. ~~substantially~~This ~~completed~~case ~~its~~alleged ~~obligations~~that ~~pursuant~~certain toAVX ~~such~~products ~~agreement~~infringe ~~with~~on ~~the~~one ~~EPA~~or ~~and~~more ~~the City~~ of ~~New~~six ~~Bedford~~Greatbatch ~~with~~patents. ~~respect~~On January to26, 2016, the ~~satisfaction~~jury ofreturned ~~AVX’s~~a ~~federal~~verdict ~~law~~in ~~requirements.~~favor ~~The Massachusetts Department~~ of ~~Environmental Protection has jurisdiction over~~ the ~~balance~~plaintiff ofin the ~~environmental~~first ~~remediation~~phase atof ~~the~~a ~~Site.~~segmented ~~AVX~~trial ~~has~~and ~~submitted~~a ~~its~~mixed ~~proposed~~verdict ~~remedy,~~in ~~but until~~ the ~~state~~second ~~has~~phase ~~approved~~of ~~such~~a ~~proposal~~segmented trial, ~~AVX~~and ~~cannot~~found ~~determine~~damages ifto ~~additional~~Greatbatch ~~groundwater~~in ~~and~~the ~~soil~~amount ~~remediation~~of ~~will be required~~$37,500, ifwhich ~~substantial~~was ~~material~~recorded ~~will~~in ~~have~~fiscal to2016. beThat ~~disposed~~verdict ofwas ~~offsite,~~later orvacated ifby ~~additional~~the ~~remediation~~court ~~techniques~~on March ~~will be required~~30, ~~any~~2018. ofIn ~~which~~fiscal ~~could~~2018, ~~result~~we inrecorded a ~~more~~favorable ~~extensive~~accrual ~~and~~adjustment ~~costly plan~~ of ~~remediation. Further~~$1,500 ~~the~~related ~~Site and the remediation may be subject~~ to ~~additional~~this ~~scrutiny~~patent ~~under~~infringement ~~other~~case. ~~statutory~~In ~~procedures~~a ~~which~~new ~~could~~trial, ~~also add to~~ the ~~cost~~amount of ~~remediation. During~~damages ~~the~~(excluding ~~quarter~~interest) ~~ended December~~was ~~31,~~determined ~~2018~~by wea ~~increased~~jury ~~our estimated accrual for work~~ to be ~~done at the Site by~~ $822,~~312~~100 ~~pursuant~~on January to15, ~~discussions~~2019 ~~with~~resulting ~~the~~in ~~Massachusetts Department of Environmental Protection and our environmental engineers. We have~~ a ~~remaining~~favorable accrual adjustment of $2213,~~272~~900 ~~at December~~for ~~31,~~the ~~2018,~~year ~~representing~~ended ~~our~~in March ~~current~~31, ~~estimate~~2019. ofDuring the ~~potential~~year ~~liability~~ended March ~~related~~31, to2019 the ~~remaining~~company ~~performance~~made ofa ~~environmental~~payment ~~remediation~~of ~~actions~~$22,100 atto ~~the~~an ~~Site~~escrow ~~and~~account ~~neighboring~~which ~~properties~~is ~~using~~classified ~~certain~~within ~~assumptions~~“Other ~~regarding~~assets”. However, the ~~plan~~matter ofis ~~remediation.~~still ~~Until~~subject ~~all~~to ~~parties~~various ~~agree~~post-trial proceedings and ~~remediation~~possible isappeal ~~complete,~~which wecould ~~cannot~~result bein ~~certain~~a ~~there~~material ~~will~~impact beto nothe ~~additional~~accrual ~~cost~~for ~~relating~~this tocase in the ~~Site~~future.

WeOn September ~~had~~2, ~~total~~2014, ~~reserves~~a subsidiary of ~~approximately $18~~AVX,~~618~~ ~~and~~American ~~$26,658~~Technical ~~at March~~Ceramics 31(“ATC”), ~~2018~~was ~~and December~~named ~~31,~~as ~~2018,~~a ~~respectively,~~defendant ~~related~~in toa ~~various~~patent ~~environmental~~infringement ~~matters~~case ~~and~~filed ~~sites,~~in ~~including~~the ~~those~~United ~~discussed~~States ~~above~~District Court of the Southern District of California captioned Presidio Components, Inc. ~~These~~v. ~~reserves~~American ~~are~~Technical ~~classified~~Ceramics inCorp. ~~the~~This ~~Consolidated~~case ~~Balance~~alleged ~~Sheets~~that ascertain ~~$3,329~~ATC ~~and~~products ~~$6,036~~infringe inon ~~accrued~~a ~~expenses~~Presidio atpatent. On ~~March~~April 3118, ~~2018~~2016, the jury returned a verdict in favor of the plaintiff and found damages to Presidio. On ~~December~~August 3117, ~~2018~~2016, ~~respectively,~~the ~~and~~court ~~$15,289~~issued ~~and~~a ~~$20,622~~permanent ininjunction ~~other~~prohibiting ~~non-current~~ATC ~~liabilities~~from atmanufacturing or selling the related products after ~~March~~November 3116, ~~2018~~2016. ~~and~~Subsequently, on ~~December~~October 3121, ~~2018~~2016, ~~respectively.~~the ~~The~~Federal ~~amounts~~Circuit ~~recorded~~Court granted AVX’s request for ~~identified~~a ~~environmental~~stay ~~liabilities~~of ~~are~~the ~~based~~permanent oninjunction ~~estimates.~~whereby ~~Periodically,~~ATC wewas ~~review~~allowed ~~amounts~~to ~~recorded~~continue ~~and~~to ~~adjust~~sell ~~them~~the disputed product until March 17, 2017 to ~~reflect~~anyone ~~additional~~who ~~legal~~was ~~and~~a ~~technical~~customer ~~information~~prior ~~that~~to June ~~becomes~~17, ~~available~~2016. ~~Uncertainties~~Any ~~about~~sales subsequent to November 16, 2016 pursuant to the ~~status~~stay of ~~laws,~~the ~~regulations~~permanent injunction were subject to court mandated intellectual property damages for each product sold. In December 2017, ~~regulatory~~a ~~actions~~panel of the Federal Circuit vacated the damage award to Presidio, ~~technology~~vacated the injunction, and ~~information~~remanded ~~related~~the case for further proceedings to ~~individual~~determine ~~sites~~damages ~~make~~limited itto ~~difficult~~“reasonable royalties” and to ~~develop~~reconsider anthe ~~estimate~~requested injunction in light of its opinion and any additional facts. In June 2018, the ~~reasonably~~District ~~possible~~Court ~~aggregate~~set ~~environmental~~the ~~remediation~~amount ~~exposure~~of royalties and re-issued the injunction. ~~Accordingly,~~An ~~these~~appeal ~~costs~~has ~~could~~been ~~differ~~filed from ~~our~~both ~~current estimates~~decisions.

OnAs of ~~April~~June 1930, ~~2016~~2019, ~~the~~we ~~Canadian~~had ~~Ministry~~total reserves of ~~the Environment and Climate Change (the “MoE”) issued a Director’s Order naming AVX Corporation~~$59,752 ~~and~~plus ~~others,~~accrued asinterest ~~responsible~~in ~~parties~~accrued expenses with respect to ~~a location in Hamilton, Ontario that was at one time~~ the ~~site~~two ofintellectual ~~operations~~property ofcases ~~Aerovox~~discussed ~~Canada, a former subsidiary of Aerovox Corporation, a predecessor of AVX~~above. ~~This~~The ~~Director’s~~amounts ~~Order~~recorded ~~follows~~are abased ~~draft order issued~~ on ~~November~~ 4,estimated ~~2015~~outcomes. ~~AVX~~Amounts ~~has~~recorded ~~taken~~are ~~the~~reviewed ~~position~~periodically ~~that~~and ~~any~~adjusted ~~liability~~to ofreflect ~~Aerovox~~additional ~~Canada~~information ~~for~~that ~~such~~becomes ~~site under the laws of Canada cannot be imposed on AVX~~available. ~~At present~~Accordingly, itthese iscosts ~~unclear~~could ~~whether~~differ ~~the~~significantly ~~MoE~~from ~~will~~our ~~seek~~current ~~to enforce such Canadian order against AVX, and whether, in the event it does so, AVX will have any liability under applicable law~~estimates. ~~AVX intends to contest any such course of action that may be taken by the MoE.~~

16During calendar year 2014, AVX was named as a co-defendant in a series of cases filed in the United States and in the Canadian provinces of Quebec, Ontario, British Columbia, Saskatchewan and Manitoba alleging violations of United States, state and Canadian antitrust laws asserting that AVX and numerous other companies were participants in alleged price-fixing in the capacitor market. The cases in the United States were consolidated into the Northern District of California on October 2, 2014. Some plaintiffs have broken off from the United States class action and filed actions on their own, although AVX is not named in all of these independent actions. The cases in Canada have not been consolidated. These cases are still in progress. AVX believes it has meritorious defenses and intends to vigorously defend the cases.

~~Table~~We are involved in other disputes, warranty, and legal proceedings arising in the normal course of ~~Contents~~business. While we cannot predict the outcome of these other disputes and proceedings, we believe, based upon a review with legal counsel, that none of these other disputes or proceedings will have a material impact on our financial position, results of operations, comprehensive income (loss), or cash flows. However, we cannot be certain of the eventual outcome in these or other matters that may arise and their potential impact on our financial position, results of operations, comprehensive income (loss), or cash flows.

In connection with the same location, Union Gas Limited and Coca-Cola Refreshments Canada Company filed suits in the Superior Court of Justice for Ontario, Canada, against AVX Corporation, Aerovox Corp9. ~~and~~Comprehensive ~~Cooper~~Income Industries, LLC seeking to recover the costs of remediation of the site and for damages associated with alleged contamination of the site. Those suits were filed on April 18, 2018, but not served on AVX until October 11, 2018, and are in their initial stages. AVX is considering its legal options but intends to vigorously defend these matters. (Loss):

WeComprehensive ~~also~~income ~~operate,~~(loss) orrepresents ~~did~~changes atin ~~one~~equity ~~time,~~during ~~on other sites that may have potential future environmental issues as~~ a ~~result~~period ofexcept ~~activities~~those atresulting ~~sites~~from ~~during~~investments ~~AVX’s~~by ~~long~~and ~~history~~distributions ~~of manufacturing operations or prior~~ to ~~the start of operations by AVX~~shareholders. ~~Even~~The ~~though~~specific ~~we may~~components ~~have~~include ~~rights~~net ~~of indemnity for such environmental matters at certain sites~~income, ~~regulatory~~pension ~~agencies~~liability ~~in those jurisdictions may require us to address such issues. Once it becomes probable that we will incur costs in connection with remediation of a site~~ and ~~such~~other ~~costs~~post-retirement ~~can~~benefit ~~be reasonably estimated~~adjustments, wedeferred ~~establish~~gains ~~reserves~~and orlosses ~~adjust~~resulting ~~our~~from ~~reserves~~foreign ~~for~~currency ~~our~~translation ~~projected~~adjustments ~~share~~and ofunrealized ~~these~~gains ~~costs. A separate account receivable is recorded for any indemnified costs. Our environmental reserves are not discounted~~ and dolosses ~~not~~on ~~reflect~~qualified ~~any~~foreign ~~possible~~currency ~~future~~cash ~~insurance~~flow ~~recoveries, which are not expected to be significant, but do reflect a reasonable estimate of cost sharing at multiple party sites or indemnification of our liability by a third party~~hedges.

WeOther ~~are~~comprehensive ~~not~~income ~~involved~~(loss) inincludes any pending or threatened environmental proceedings that would require curtailment of our operations. We continually expend funds to ensure that our facilities comply with applicable environmental regulations. While we believe that we are in compliance with applicable environmental laws, we cannot accurately predict future developments and do not necessarily have knowledge of all past occurrences on sites that we currently occupy. New environmental regulations may be enacted and we cannot determine the ~~modifications,~~following if any, in our operations that any such future regulations might require, or the cost of compliance with such regulations. Moreover, the risk of environmental liability and remediation costs is inherent in the nature of our business and, therefore, there can be no assurance that material environmental costs, including remediation costs, will not arise in the future.components:

On April 25, 2013, AVX was named as a defendant in a patent infringement case filed in the United States District Court for the District of Delaware captioned Greatbatch, Inc. v. AVX Corporation. This case alleged that certain AVX products infringe on one or more of six Greatbatch patents. On January 26, 2016, the jury returned a verdict in favor of the plaintiff in the first phase of a segmented trial and a mixed verdict in the second phase of a segmented trial, and found damages to Greatbatch in the amount of $37,500, which was recorded in fiscal 2016. That verdict was later vacated by the court on March 30, 2018, which resulted in a favorable accrual adjustment of $1,500. In a new trial, the amount of damages (excluding interest) was determined by a jury to be $22,100 on January 15, 2019 resulting in a favorable accrual adjustment of $13,900 for the three month period ended December 31, 2018. However, the matter is still subject to various post-trial proceedings and possible appeal, which could result in a material impact to the accrual for this case in the future.

	Three Months Ended
	June 30,
	2018						2019
	Pre-tax			Net of Tax			Pre-tax			Net of Tax
Foreign currency translation adjustment	$	(41,741	)	$	(41,741	)	$	6,438		$	6,438
Foreign currency cash flow hedges adjustment		77			63			(213	)		(187	)
Pension liability adjustment		3,307			2,630			1,058			872
Other comprehensive income (loss)	$	(38,357	)	$	(39,048	)	$	7,283		$	7,123

~~On September~~Amounts 2,reclassified ~~2014,~~out ~~a subsidiary~~ of ~~AVX,~~accumulated ~~American~~other ~~Technical~~comprehensive ~~Ceramics~~income (~~“ATC”~~loss), ~~was~~into ~~named~~net asincome ainclude ~~defendant~~those inthat apertain ~~patent~~to ~~infringement case filed in~~ the ~~United~~Company’s ~~States~~pension ~~District~~and ~~Court~~postretirement ofbenefit ~~the~~plans ~~Southern~~and ~~District~~realized ofgains ~~California~~and ~~captioned~~losses ~~Presidio~~on ~~Components,~~derivative ~~Inc.~~instruments v.designated ~~American~~as ~~Technical~~cash ~~Ceramics~~flow ~~Corp~~hedges. ~~This~~Please ~~case~~see ~~alleged~~Note ~~that~~11 for ~~certain~~additional ~~ATC~~information ~~products~~related ~~infringe~~to ~~on a Presidio patent. On April 18, 2016,~~ the ~~jury~~amortization ~~returned~~of aprior ~~verdict~~service incost ~~favor~~and of the ~~plaintiff~~recognized ~~and~~actuarial ~~found damages to Presidio. On August 17~~losses, ~~2016,~~which ~~the~~amounts ~~court~~are ~~issued~~reclassified afrom ~~permanent~~accumulated ~~injunction~~other ~~prohibiting~~comprehensive ~~ATC~~income ~~from~~(loss) ~~manufacturing~~into ornet ~~selling~~income ~~the~~and ~~related~~are ~~products~~included ~~after November~~in 16selling, ~~2016.~~general ~~Subsequently,~~and ~~on October~~administrative ~~21,~~expenses ~~2016,~~in the ~~Federal~~statement ~~Circuit Court granted AVX’s request for a stay~~ of ~~the~~operations ~~permanent~~during ~~injunction whereby ATC was allowed to continue to sell~~ the ~~disputed~~three ~~product~~month ~~until March~~periods ~~17, 2017 to anyone who was a customer prior to~~ended June 1730, ~~2016.~~2018 ~~Any~~and ~~sales~~2019. ~~subsequent~~Please ~~to November~~see ~~16,~~Note ~~2016 pursuant to the stay of the permanent injunction were subject to court mandated intellectual property damages~~ 12 for ~~each~~additional ~~product~~information ~~sold.~~related ~~In December 2017, a panel of the Federal Circuit vacated the damage award~~ to ~~Presidio,~~realized ~~vacated~~gains ~~the injunction,~~ and ~~remanded~~losses ~~the~~on ~~case~~derivative ~~for~~instruments ~~further~~reclassified ~~proceedings~~from toaccumulated ~~determine~~other ~~damages~~comprehensive ~~limited~~income to(loss) ~~“reasonable~~into ~~royalties”~~net ~~and~~income toduring ~~reconsider~~ the ~~requested~~three ~~injunction~~month inperiods ~~light of its opinion and any additional facts. In~~ended June ~~2018~~ 30, ~~the~~2018 ~~District Court set the amount of royalties~~ and ~~re-issued the injunction~~2019. ~~An appeal has been filed from both decisions.~~

As of December 31, 2018, we had total reserves of $59,683 plus accrued interest in accrued expenses with respect to the two intellectual property cases discussed above. The amounts recorded are based on estimated outcomes. Amounts recorded are reviewed periodically and adjusted to reflect additional information that becomes available. Accordingly, these costs could differ from our current estimates. 17

~~During~~ Table ~~calendar year 2014, AVX was named as a co-defendant in a series~~ of cases filed in the United States and in the Canadian provinces of Quebec, Ontario, British Columbia, Saskatchewan and Manitoba alleging violations of United States, state and Canadian antitrust laws and asserting that AVX and numerous other companies were participants in alleged price-fixing in the capacitor market. The cases in the United States were consolidated into the Northern District of California on October 2, 2014. However, some plaintiffs have broken off from the United States class action and filed actions on their own, although AVX is not named in all of these independent actions. The cases in Canada have not been consolidated. These cases are still in progress. AVX believes it has meritorious defenses and intends to vigorously defend the cases.Contents

1710. Segment and Geographic Information:

~~Table~~Our operating segments are based on the types of ~~Contents~~products from which we generate revenues. We are organized into a product line organization with four product groups and two reportable segments. Our four product groups are: Ceramic Components; Tantalum Components; Advanced Components; and Interconnect, Sensing and Control Devices (formerly AVX Interconnect). Historically, KED Resale reported as its own product group, but it has now been combined with Advanced Components. The reportable segments are: Electronic Components and Interconnect, Sensing and Control Devices. The product groups of Ceramic, Advanced, and Tantalum Components have been aggregated into the Electronic Components reportable segment in accordance with the SEC’s aggregation criteria and quantitative thresholds. The aggregation criteria consist of similar economic characteristics, products and services, production processes, customer classes, and distribution channels. The Electronic Components segment consists primarily of surface mount and leaded ceramic capacitors, RF thick and thin film components, surface mount and leaded tantalum capacitors, polymer tantalum capacitors, surface mount and leaded film capacitors, ceramic and film power capacitors, super capacitors, EMI filters (bolt in and surface mount), thick and thin film packages of multiple passive integrated components, varistors, thermistors, inductors, resistive products, and passive and active electronic antennas and antenna systems manufactured by us or purchased from other manufacturers for resale. The Interconnect, Sensing and Control Devices segment consists primarily of automotive sensing and control devices and automotive, telecom, and memory connectors manufactured by or for AVX. Sales and operating results from these reportable segments are shown in the tables below. In addition, we have a corporate administration group consisting of finance, legal, environmental, health & safety, and administrative activities.

We ~~are~~evaluate ~~involved~~performance inof ~~other~~our ~~disputes,~~segments ~~warranty,~~based ~~and~~upon ~~legal~~sales ~~proceedings~~and ~~arising~~operating inprofit. ~~the~~There ~~normal~~are ~~course~~no ofintersegment ~~business~~revenues. ~~While~~We weallocate ~~cannot predict~~ the ~~outcome~~costs of ~~these~~shared ~~other~~resources ~~disputes~~between ~~and~~segments ~~proceedings, we believe,~~ based ~~upon~~on aeach ~~review~~segment’s ~~with~~usage ~~legal counsel, that none~~ of ~~these~~the ~~other~~shared ~~disputes~~resources. ~~or proceedings will have a material impact on our financial position~~Cash, ~~results~~accounts ~~of operations~~receivable, ~~comprehensive~~investments ~~income~~in ~~(loss)~~securities, orand ~~cash flows. However, we cannot be~~ certain ~~of the eventual outcome in these or~~ other ~~matters~~assets, ~~that may~~which ~~arise~~are ~~and~~centrally ~~their potential impact on our financial position~~managed, ~~results~~are ofnot ~~operations,~~readily ~~comprehensive~~allocable ~~income~~to ~~(loss),~~operating ~~or cash flows~~segments.

~~10.~~The ~~Comprehensive~~tables ~~Income~~below ~~(Loss)~~present information about reportable segments:

Comprehensive income (loss) represents changes in equity during a period except those resulting from investments by and distributions to shareholders. The specific components include net income (loss), pension liability and other post-retirement benefit adjustments, deferred gains and losses resulting from foreign currency translation adjustments and unrealized gains and losses on qualified foreign currency cash flow hedges.

	Three Months Ended
	June 30,
Sales Revenue:	2018		2019
Ceramic Components	$	78,836	$	106,623
Tantalum Components		101,032		62,724
Advanced Components		139,344		108,133
Total Electronic Components		319,212		277,480
Interconnect, Sensing and Control Devices		134,904		124,289
Total Revenue	$	454,116	$	401,769

Other comprehensive income (loss) includes the following components:

	Three Months Ended
	June 30,
	2018			2019
Operating profit (loss):
Electronic Components	$	86,410		$	78,525
Interconnect, Sensing and Control Devices		(2,750	)		676
Corporate activities		(15,643	)		(20,488	)
Total	$	68,017		$	58,713

	Three Months Ended
	December 31,
	2017						2018
	Pre-tax			Net of Tax			Pre-tax			Net of Tax
Foreign currency translation adjustment	$	7,749		$	7,749		$	(18,639	)	$	(18,639	)
Foreign currency cash flow hedges adjustment		(690	)		(518	)		(52	)		(36	)
Pension liability adjustment		321			243			(300	)		(246	)
Other comprehensive income (loss)	$	7,380		$	7,474		$	(18,991	)	$	(18,921	)

	Nine Months Ended
	December 31,
	2017						2018
	Pre-tax			Net of Tax			Pre-tax			Net of Tax
Foreign currency translation adjustment	$	41,196		$	41,196		$	(59,070	)	$	(59,070	)
Foreign currency cash flow hedges adjustment		(1,215	)		(939	)		196			153
Pension liability adjustment		171			130			3,279			2,600
Other comprehensive income (loss)	$	40,152		$	40,387		$	(55,595	)	$	(56,317	)

Table of Contents

Amounts reclassified out of accumulated other comprehensive income (loss) into net income (loss) include those that pertain to the Company’s pension and postretirement benefit plans and realized gains and losses on derivative instruments designated as cash flow hedges. Please see Note 12 for additional information related to the amortization of prior service cost and the recognized actuarial losses, which amounts are reclassified from accumulated other comprehensive income (loss) into net income (loss) and are included in selling, general and administrative expenses in the statement of operations during the three and nine month periods ended December 31, 2017 and 2018. Please see Note 13 for additional information related to realized gains and losses on derivative instruments reclassified from accumulated other comprehensive income (loss) into net income (loss) during the three and nine month periods ended December 31, 2018.

	As of		As of
	March 31, 2019		June 30, 2019
Assets:
Electronic Components	$	659,933	$	745,702
Interconnect, Sensing and Control Devices		265,682		282,173
Cash, A/R, and investments in securities		1,070,701		1,034,209
Goodwill - Electronic Components		271,374		271,374
Goodwill - Interconnect, Sensing and Control Devices		45,301		45,706
Corporate activities		500,287		469,411
Total	$	2,813,278	$	2,848,575

11The following geographic data is based upon net sales generated by operations located within particular geographic areas. ~~Segment~~Substantially ~~and~~all ~~Geographic~~of ~~Information:~~the sales in the Americas region were generated in the United States.

Our operating segments are based on the types of products from which we generate revenues. We are organized into a product line organization with four product groups and two reportable segments. Our four product groups are: Ceramic Components; Tantalum Components; Advanced Components; and Interconnect, Sensing and Control Devices (formerly AVX Interconnect). Historically, KED Resale reported as its own product group, but it has now been combined with Advanced Components. The reportable segments are: Electronic Components and Interconnect, Sensing and Control Devices. The product groups of Ceramic, Advanced, and Tantalum Components have been aggregated into the Electronic Components reportable segment in accordance with the SEC’s aggregation criteria and quantitative thresholds. The aggregation criteria consist of similar economic characteristics, products and services, production processes, customer classes, and distribution channels. The Electronic Components segment consists primarily of surface mount and leaded ceramic capacitors, RF thick and thin film components, surface mount and leaded tantalum capacitors, polymer tantalum capacitors, surface mount and leaded film capacitors, ceramic and film power capacitors, super capacitors, EMI filters (bolt in and surface mount), thick and thin film packages of multiple passive integrated components, varistors, thermistors, inductors, resistive products, and passive and active electronic antennas and antenna systems manufactured by us or purchased from other manufacturers for resale. The Interconnect, Sensing and Control Devices segment consists primarily of automotive sensing and control devices, automotive connectors, plastic/mechatronic parts and industrial connectors. Sales and operating results from these reportable segments are shown in the tables below. In addition, we have a corporate administration group consisting of finance, legal, environmental, health & safety, and administrative activities.

	Three Months Ended
	June 30,
	2018		2019
Net sales:
Americas	$	114,567	$	115,224
Europe		198,404		169,198
Asia		141,145		117,347
Total	$	454,116	$	401,769

1811. Pension Plans:

~~Table~~Net periodic pension cost for our defined benefit plans consisted of ~~Contents~~the following for the three month periods ended June 30, 2018 and 2019:

We evaluate performance of our segments based upon sales and operating profit. There are no intersegment revenues. We allocate the costs of shared resources between segments based on each segment’s usage of the shared resources. Cash, accounts receivable, investments in securities, and certain other assets, which are centrally managed, are not readily allocable to operating segments.

	U.S. Plans						International Plans
	Three Months Ended						Three Months Ended
	June 30,						June 30,
	2018			2019			2018			2019
Service cost	$	-		$	-		$	215		$	206
Interest cost		327			303			1,045			880
Expected return on plan assets		(393	)		(415	)		(1,471	)		(1,316	)
Recognized actuarial loss		221			279			257			194
Net periodic pension cost	$	155		$	167		$	46		$	(36	)

~~The~~Based ~~tables~~on ~~below~~current ~~present~~actuarial ~~information~~computations, ~~about~~during ~~reported~~the ~~segments:~~three months ended June 30, 2019, we made contributions of $646 to the international plans. We expect to make additional contributions of approximately $451 to the international plans over the remainder of fiscal 2020. We made no contributions to the U.S. plans during the three months ended June 30, 2019. We expect to make no additional contributions to the U.S. plans the remainder of fiscal 2020.

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
Sales Revenue:	2017		2018		2017		2018
Ceramic Components	$	60,136	$	120,561	$	168,512	$	302,075
Tantalum Components		90,517		95,167		273,457		301,901
Advanced Components		155,914		110,344		486,384		373,537
Total Electronic Components		306,567		326,072		928,353		977,513
Interconnect, Sensing and Control Devices		125,228		116,323		187,489		375,326
Total Revenue	$	431,795	$	442,395	$	1,115,842	$	1,352,839

12. Derivative Financial Instruments:

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2017			2018			2017			2018
Operating profit (loss):
Electronic Components	$	54,880		$	115,787		$	165,675		$	306,332
Interconnect, Sensing and Control Devices		6,637			1,883			13,281			1,416
Corporate activities		(16,186	)		(28,114	)		(46,408	)		(64,537	)
Total	$	45,331		$	89,556		$	132,548		$	243,211

We are exposed to foreign currency exchange rate fluctuations in the normal course of business. We use derivative instruments (forward contracts) to hedge certain foreign currency exposures as part of our risk management strategy. The objective is to offset gains and losses resulting from these exposures with gains and losses on the forward contracts used to hedge them, thereby reducing volatility of earnings or protecting fair values of assets and liabilities. We do not enter into any trading or speculative positions with regard to derivative instruments.

	As of		As of
	March 31, 2018		December 31, 2018
Assets:
Electronic Components	$	632,014	$	723,804
Interconnect, Sensing and Control Devices		241,959		250,798
Cash, A/R, and investments in securities		1,111,716		1,103,886
Goodwill - Electronic Components		278,247		281,806
Goodwill - Interconnect, Sensing and Control Devices		38,051		35,870
Corporate activities		370,779		373,366
Total	$	2,672,766	$	2,769,530

19 Table of Contents

~~Table~~We ofprimarily ~~Contents~~use forward contracts, with maturities less than 4 months, to protect against the foreign currency exchange rate risks inherent in our forecasted transactions related to purchase commitments and sales denominated in various currencies. These derivative instruments are designated and qualify as cash flow hedges.

The ~~following~~effectiveness ~~geographic~~of ~~data~~the cash flow hedges is ~~based~~determined ~~upon~~by ~~net~~comparing ~~sales~~the ~~generated~~cumulative bychange ~~operations~~in ~~located~~the ~~within~~fair ~~particular~~value ~~geographic~~of ~~areas~~the hedge contract with the cumulative change in the fair value of the hedged transaction, both of which are based on forward rates. ~~Substantially~~The ~~all~~effective portion of the ~~sales~~gain or loss on these cash flow hedges is initially recorded in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Once the ~~Americas~~hedged ~~region~~transaction ~~were~~is ~~generated~~recognized, the gain or loss is recognized in ~~the~~our ~~United~~statement ~~States~~of operations. At March 31, 2019 and June 30, 2019, respectively, the following forward contracts were entered into to hedge against the volatility of foreign currency exchange rates for certain forecasted sales and purchases:

		Three Months Ended							Nine Months Ended
	March 31, 2019
		December 31,							December 31,
	Fair Value of Derivative Instruments
		2017			2018				2017		2018
	Asset Derivatives				Liability Derivatives
Net sales:
	Balance				Balance
Americas		$	96,508		$	121,086			$	299,287	$	361,657
	Sheet		Fair		Sheet		Fair
Europe			183,523			176,058				379,088		558,466
	Caption		Value		Caption		Value
Asia			151,764			145,251				437,467		432,716
Foreign exchange contracts	Prepaid and other		$	570	Accrued expenses		$	318
Total		$	431,795		$	442,395			$	1,115,842	$	1,352,839

12. Pension Plans:

	June 30, 2019
	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	$	440	Accrued expenses	$	401

~~Net~~For ~~periodic~~these ~~pension~~derivatives ~~cost~~designated ~~for~~as ~~our~~cash ~~defined~~flow ~~benefit~~hedging ~~plans~~instruments, ~~consisted~~during the three month period ended June 30, 2019, net pre-tax gains of ~~the~~$512 ~~following~~were ~~for~~recognized ~~the~~in ~~three~~other ~~and~~comprehensive ~~nine~~income (loss). In addition, during the three month ~~periods~~period ended ~~December~~June 3130, ~~2017~~2019, net pre-tax losses of $392 were reclassified from accumulated other comprehensive income (loss) into cost of sales (for hedging purchases), and ~~2018:~~net pre-tax gains of $694 were reclassified from accumulated other comprehensive income (loss) into sales (for hedging sales) in the accompanying statement of operations.

	U.S. Plans						International Plans
	Three Months Ended						Three Months Ended
	December 31,						December 31,
	2017			2018			2017			2018
Service cost	$	33		$	-		$	229		$	206
Interest cost		352			327			1,151			988
Expected return on plan assets		(450	)		(393	)		(1,469	)		(1,390	)
Recognized actuarial loss		286			221			333			243
Net periodic pension cost	$	221		$	155		$	244		$	47

Derivatives not designated as cash flow hedging instruments consist primarily of forwards used to hedge foreign currency balance sheet exposures. These hedging instruments are used to offset foreign currency changes in the fair values of the underlying assets and liabilities. The gains and losses on these foreign currency forward contracts are recognized in other income (loss) in the same period as the remeasurement gains and losses of the related foreign currency denominated assets and liabilities and thus naturally offset these gains and losses. At March 31, 2019 and June 30, 2019, we had the following forward contracts that were entered into to hedge against these exposures.

		U.S. Plans							International Plans
	March 31, 2019
		Nine Months Ended							Nine Months Ended
	Fair Value of Derivative Instruments
		December 31,							December 31,
	Asset Derivatives				Liability Derivatives
		2017			2018				2017			2018
	Balance				Balance
Service cost		$	99		$	-			$	688		$	633
	Sheet		Fair		Sheet		Fair
Interest cost			1,056			982				3,394			3,058
	Caption		Value		Caption		Value
Expected return on plan assets			(1,350	)		(1,179	)			(4,337	)		(4,302	)
Foreign exchange contracts	Prepaid and other		$	283	Accrued expenses		$	270
Recognized actuarial loss			857			663				983			751
Net periodic pension cost		$	662		$	466			$	728		$	140

Based on current actuarial computations, during the nine months ended December 31, 2018, we made contributions of $5,061 to the international plans. We expect to make additional contributions of approximately $1,600 to the international plans over the remainder of fiscal 2019. We made a contribution of $2,289 to the U.S. plans during the nine months ended December 31, 2018. We do not expect to make additional contributions to the U.S. plans the remainder of fiscal 2019. 20

~~13.~~ Table ~~Derivative~~of ~~Financial Instruments:~~Contents

We are exposed to foreign currency exchange rate fluctuations in the normal course of business. We use derivative instruments (forward contracts) to hedge certain foreign currency exposures as part of our risk management strategy. The objective is to offset gains and losses resulting from these exposures with gains and losses on the forward contracts used to hedge them, thereby reducing volatility of earnings or protecting fair values of assets and liabilities. We do not enter into any trading or speculative positions with regard to derivative instruments.

	June 30, 2019
	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	$	161	Accrued expenses	$	218

20For these derivatives not designated as cash flow hedging instruments during the three month period ended June 30, 2019, losses of $57 on hedging contracts were recognized in other income (loss), along with the approximately $227 in exchange losses that were recognized in other income (loss) in the accompanying statement of operations.

~~Table~~At March of31, ~~Contents~~2019 and June 30, 2019, we had outstanding foreign exchange contracts with notional amounts totaling $216,555 and $242,587, respectively, denominated primarily in Euros, Czech Korunas, British Pounds, and Japanese Yen.

We primarily use forward contracts, with maturities less than four months, to protect against the foreign currency exchange rate risks inherent in our forecasted transactions related to purchase commitments and sales, denominated in various currencies13. ~~These~~Subsequent ~~derivative instruments are designated and qualify as cash flow hedges.~~Events:

~~The~~On July ~~effectiveness~~24, of2019, the ~~cash~~Board ~~flow~~of ~~hedges~~Directors isof ~~determined by comparing~~ the ~~cumulative~~Company ~~change~~declared ina ~~the~~$0.115 ~~fair~~dividend ~~value~~per share of ~~the~~common ~~hedge~~stock ~~contract~~ with ~~the~~respect ~~cumulative~~to ~~change in~~ the ~~fair~~quarter ~~value~~ended June ~~of the hedged transaction~~30, ~~both of which are based on forward rates~~2019. The ~~effective~~dividend ~~portion~~will ofbe ~~the~~paid ~~gain~~to ~~or loss on these cash flow hedges is initially recorded in accumulated other comprehensive income (loss) as a separate component of~~ stockholders’ ~~equity. Once the hedged transaction is recognized, the gain or loss is recognized in our statement~~ of ~~operations.~~record Aton ~~March~~August 311, ~~2018~~2019 and ~~December~~ ~~31,~~will ~~2018,~~be ~~respectively,~~disbursed ~~the~~on August ~~following~~15, ~~forward contracts were entered into to hedge against the volatility of foreign currency exchange rates for certain forecasted sales and purchases:~~2019.

	March 31, 2018
	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	$	212	Accrued expenses	$	377

	December 31, 2018
	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	$	373	Accrued expenses	$	342

Table of Contents

~~For~~ITEM these derivatives designated as cash flow hedging instruments, during the three and nine month periods ended December 31, 2018, a net pre-tax loss of $394 and $513, respectively, were recognized in other comprehensive income (loss)2. InMANAGEMENT'S ~~addition,~~DISCUSSION ~~during~~AND ~~the~~ANALYSIS ~~three~~OF ~~and~~FINANCIAL ~~nine~~CONDITION ~~month~~AND ~~periods~~RESULTS ~~ended December~~OF 31, 2018, a net pre-tax gain of $943 and a net pre-tax loss of $557, respectively, were reclassified from accumulated other comprehensive income (loss) into cost of sales (for hedging purchases), and a net pre-tax loss of $1,070 and a net pre-tax gain of $268, respectively, were reclassified from accumulated other comprehensive income (loss) into sales (for hedging sales) in the accompanying statement of operations.OPERATIONS

21Forward-Looking Statements

~~Table~~This Quarterly Report on Form 10-Q contains “forward-looking” information within the meaning of ~~Contents~~the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding industry prospects, trends and future results of operations or financial position, made in this Quarterly Report on Form 10-Q are forward-looking. The forward-looking information may include, among other information, statements concerning our outlook for fiscal year 2020, overall volume and pricing trends, cost reduction and acquisition strategies and their anticipated results, and expectations for research and development and capital expenditures. There may also be other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Forward-looking statements reflect management’s expectations and are inherently uncertain. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by the forward-looking statements for a variety of reasons, including without limitation, changes in the global economy or the economy of any locality in which we conduct business; changes in general industry and market conditions or regional growth or declines; loss of business from increased competition; higher raw material costs or raw material shortages; changes in consumer and customer preferences for end products; customer or supplier losses; changes in regulatory conditions; changes import/export regulations and tariffs; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; market acceptance of our new products; possible adverse results of pending or future litigation or infringement claims; our ability to successfully integrate and realize expected synergies from acquired businesses; our ability to protect our intellectual property rights; negative impacts of environmental investigations or other governmental investigations and any associated litigation; tax assessments by governmental authorities and changes in our effective tax rate; dependence on and relationships with customers and suppliers; and other risks and uncertainties discussed in our Annual Report on Form 10-K for fiscal year ended March 31, 2019. Forward-looking statements should be read in context with, and with the understanding of, the various other disclosures concerning the Company and its business made elsewhere in this quarterly report as well as other public reports filed by the Company with the SEC. You should not place undue reliance on any forward-looking statements as a prediction of actual results or developments.

~~Derivatives~~Any ~~not~~forward-looking ~~designated~~statements asby ~~cash~~the ~~flow~~Company ~~hedging~~are ~~instruments~~intended ~~consist~~to ~~primarily~~speak only as of ~~forwards~~the ~~used~~date thereof. We do not intend to ~~hedge~~update ~~foreign~~or ~~currency~~revise ~~balance~~any ~~sheet~~forward-looking ~~exposures.~~statement ~~These~~contained ~~hedging~~in ~~instruments~~this ~~are~~quarterly ~~used~~report to ~~offset~~reflect ~~foreign~~new ~~currency~~events ~~changes~~or incircumstances ~~the~~unless ~~fair~~and ~~values~~to of the ~~underlying~~extent ~~assets~~required ~~and~~by ~~liabilities~~applicable law. ~~The~~All ~~gains~~forward-looking ~~and~~statements ~~losses~~contained onin ~~these~~this ~~foreign~~quarterly ~~currency~~report constitute “forward-looking ~~contracts~~statements” ~~are~~within ~~recognized~~the inmeaning ~~other~~of ~~income~~Section ~~(loss)~~21E inof the ~~same~~United ~~period~~States Securities Exchange Act of 1934, as amended (the ~~re-measurement~~"Exchange ~~gains~~Act"), and, ~~losses~~to of the ~~related~~extent ~~foreign~~it ~~currency~~may ~~denominated~~be ~~assets~~applicable ~~and~~by ~~liabilities~~way ~~and~~of ~~thus~~incorporation ~~naturally~~of ~~offset~~statements ~~these~~contained ~~gains~~in ~~and~~this ~~losses.~~quarterly ~~At March~~report 31by reference or otherwise, ~~2018~~Section ~~and December~~27A 31of the United States Securities Act of 1933, ~~2018~~as amended, each weof ~~had~~which ~~the~~establishes ~~following~~a ~~forward~~safe-harbor ~~contracts~~from ~~that~~private ~~were~~actions ~~entered~~for ~~into~~forward-looking tostatements ~~hedge~~as ~~against~~defined ~~these~~in ~~exposures~~those statutes.

	March 31, 2018
	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	$	45	Accrued expenses	$	137

Critical Accounting Policies and Estimates

	December 31, 2018
	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	$	324	Accrued expenses	$	337

“Management’s Discussion and Analysis of Financial Condition and Results of Operations” is based upon our unaudited Consolidated Financial Statements and Notes thereto contained in this Form 10-Q, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported periods. On an ongoing basis, management evaluates its estimates and judgments, including those related to investment securities, revenue recognition, inventories, property and equipment, goodwill, intangible assets, income taxes, and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There can be no assurance that actual results will not differ from those estimates.

For these derivatives not designated as cash flow hedging instruments during the three month and nine month periods ended December 31, 2018, losses of $300 on hedging contracts were recognized in other income (loss), along with approximately $276 in exchange gains that were recognized in other income (loss) in the accompanying statement of operations. 22

~~At March~~ Table ~~31,~~of 2018 and December 31, 2018, we had outstanding foreign exchange contracts with notional amounts totaling $156,238 and $196,547, respectively, denominated primarily in Euros, Czech Korunas, and Japanese Yen.Contents

14We have identified the accounting policies and estimates that are critical to our business operations and understanding the Company’s results of operations. ~~Subsequent~~Those ~~Events:~~policies and estimates can be found in Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements and in “Critical Accounting Policies and Estimates,” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019, and in Note 1, “Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements in this Form 10-Q. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2019. There were no significant changes to critical accounting policies, judgments involved in applying those policies, or the methodology used in determining estimates with respect to those related to investment securities, inventories, goodwill, intangible assets, property and equipment, and contingencies, during the three month period ended June 30, 2019.

~~On January~~ Business 15, 2019, the Company was informed of a jury verdict in the Greatbatch, Inc. v. AVX Corporation patent infringement case. The verdict returned, in the favor of the plaintiff, found revised damages to Greatbatch in the amount of $22,100. Accordingly, the Company recorded a favorable accrual adjustment of $13,900, which is reflected in profit from operations in the three and nine month periods ended December 31, 2018. Refer to Note 9 for additional information.Overview

~~On February~~AVX 6is a leading worldwide manufacturer, ~~2019~~supplier, ~~the~~and ~~Board~~reseller of ~~Directors~~a broad line of ~~the~~electronic ~~Company~~components, ~~declared~~interconnect, asensing ~~$0.115~~and ~~dividend~~control ~~per~~devices, ~~share~~and ofrelated ~~common~~products. ~~stock~~Electronic ~~with~~components ~~respect~~and toconnector, ~~the~~sensing ~~quarter~~and ~~ended December~~control ~~31,~~products ~~2018.~~manufactured ~~The~~or ~~dividend~~resold ~~will~~by beAVX ~~paid~~are toused ~~stockholders~~in many types of ~~record~~end-use ~~on February~~products, 22including those in telecommunications, ~~2019~~automotive, ~~and~~transportation, ~~will~~energy beharvesting, ~~disbursed~~consumer ~~on March~~electronics, 4military/aerospace, ~~2019~~medical, computer, and industrial markets.

22We have manufacturing, sales, and distribution facilities located throughout the world, which are divided into three geographic regions: the Americas, Asia, and Europe. AVX is organized into four product groups with two reportable segments: Electronic Components; and Interconnect, Sensing and Control Devices. The Electronic Components segment consists primarily of surface mount and leaded ceramic capacitors, RF thick and thin film components, surface mount and leaded tantalum capacitors, polymer tantalum capacitors, surface mount and leaded film capacitors, ceramic and film power capacitors, super capacitors, EMI filters (bolt in and surface mount), thick and thin film packages of multiple integrated components, varistors, thermistors, inductors, resistive products, and passive and active electronic antennas and antenna systems manufactured by us or purchased from other manufacturers for resale. The Interconnect, Sensing and Control Devices segment consists primarily of automotive sensing and control devices and automotive, telecom, and memory connectors manufactured by, or for, AVX.

~~Table~~Our customers consist of ~~Contents~~multi-national original equipment manufacturers, or OEMs, independent electronic component distributors, and electronic manufacturing service providers, or EMSs. We market our products through our own direct sales force and independent manufacturers’ representatives, based upon market characteristics and demands. We coordinate our sales, marketing, and manufacturing organizations by strategic customer account and globally by region.

~~ITEM~~Results 2.of ~~MANAGEMENT'S~~Operations ~~DISCUSSION~~- ~~AND~~Three ~~ANALYSIS~~Months OFEnded ~~FINANCIAL~~June ~~CONDITION~~30, ~~AND~~2018 ~~RESULTS~~and ~~OF OPERATIONS~~2019

~~Forward-Looking~~Our ~~Statements~~net income for the three months ended June 30, 2019 was $54.7 million, or $0.32 per share, compared to net income of $56.0 million, or $0.33 per share, for the three months ended June 30, 2018.

This Quarterly Report on Form 10-Q contains “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding industry prospects, trends and future results of operations or financial position, made in this Quarterly Report on Form 10-Q are forward-looking. The forward-looking information may include, among other information, statements concerning our outlook for fiscal year 2019, overall volume and pricing trends, cost reduction and acquisition strategies and their anticipated results, and expectations for research and development and capital expenditures. There may also be other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Forward-looking statements reflect management’s expectations and are inherently uncertain. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by the forward-looking statements for a variety of reasons, including without limitation, changes in the global economy or the economy of any locality in which we conduct business; changes in general industry and market conditions or regional growth or declines; loss of business from increased competition; higher raw material costs or raw material shortages; changes in consumer and customer preferences for end products; customer losses; changes in regulatory conditions; changes import/export regulations and tariffs; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; market acceptance of our new products; possible adverse results of pending or future litigation or infringement claims; our ability to successfully integrate and realize expected synergies from acquired businesses; our ability to protect our intellectual property rights; negative impacts of environmental investigations or other governmental investigations and associated litigation; tax assessments by governmental authorities and changes in our effective tax rate; dependence on and relationships with customers and suppliers; and other risks and uncertainties discussed in our Annual Report on Form 10-K for fiscal year ended March 31, 2018. Forward-looking statements should be read in context with, and with the understanding of, the various other disclosures concerning the Company and its business made elsewhere in this quarterly report as well as other public reports filed by the Company with the SEC. You should not place undue reliance on any forward-looking statements as a prediction of actual results or developments.

	Three Months Ended
	June 30,
(in thousands, except per share data)	2018		2019
Net sales	$	454,116	$	401,769
Gross profit		108,333		100,645
Operating income		68,017		58,713
Net income		55,963		54,677
Diluted earnings per share	$	0.33	$	0.32

~~Any~~Net ~~forward-looking~~sales ~~statements~~in by the ~~Company~~three ~~are~~month ~~intended~~period ended June 30, 2019 decreased $52.3 million or 11.5%, to ~~speak~~$401.8 ~~only~~million ascompared ofto $454.1 million in the ~~date~~three ~~thereof~~month period ended June 30, 2018. WeThe dodecrease ~~not~~in ~~intend~~revenue was attributable to ~~update~~lower orvolumes ~~revise~~resulting ~~any~~from ~~forward-looking~~weaker ~~statement~~global ~~contained~~market conditions reflecting a slowdown in ~~this~~the ~~quarterly~~Asian ~~report~~markets toresulting ~~reflect~~from ~~new~~a ~~events~~weaker orChinese ~~circumstances~~economy ~~unless~~due to tariffs and other economic issues in addition to ~~the~~reduced ~~extent~~automotive ~~required~~manufacturing byacross ~~applicable~~all ~~law~~regions. ~~All~~Customers ~~forward-looking~~remained ~~statements~~cautious ~~contained~~with higher than normal inventory levels in ~~this~~the ~~quarterly~~sales ~~report~~channel, ~~constitute~~particularly ~~“forward-looking~~at ~~statements”~~our ~~within~~distribution ~~the~~customers, ~~meaning~~contributing ofto ~~Section~~lower ~~21E~~overall ofdemand, primarily in the ~~United~~automotive, ~~States~~cellular, ~~Securities~~and ~~Exchange~~consumer ~~Act~~markets. The ofmarket ~~1934~~demand ~~and,~~remains tostrong in the ~~extent~~aerospace, itdefense, ~~may~~and bemedical ~~applicable~~markets. Overall demand for our products is being driven by ~~way~~the power of ~~incorporation~~electronics ofto ~~statements~~enhance ~~contained~~the user experience in ~~this~~automotive, ~~quarterly~~wearables, ~~report~~smartphones, bydrones, ~~reference~~solid orstate ~~otherwise~~drives, ~~Section~~personal ~~27A~~and ofindustrial robots, virtual reality devices, smart home control and security devices enabled through the ~~United~~internet ~~States~~within ~~Securities~~a ~~Act~~broad ofcategory ~~1933~~called IoT, ~~each~~or Internet of ~~which~~Things. ~~establishes~~Sales were unfavorably impacted by approximately $8.7 million as a ~~safe-harbor~~result ~~from~~of ~~private~~currency ~~actions~~movement ~~for~~due ~~forward-looking~~to ~~statements~~the strengthening of the U.S. Dollar as ~~defined~~compared into ~~those~~the ~~statutes~~Japanese Yen and Euro when compared to the same period last year.

~~Critical Accounting Policies and Estimates~~ 23

~~“Management’s~~ Table ~~Discussion and Analysis~~ of Financial Condition and Results of Operations” is based upon our unaudited Consolidated Financial Statements and Notes thereto contained in this Form 10-Q, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported periods. On an ongoing basis, management evaluates its estimates and judgments, including those related to investment securities, revenue recognition, inventories, property and equipment, goodwill, intangible assets, income taxes, and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There can be no assurance that actual results will not differ from those estimates.Contents

WeThe ~~have~~table ~~identified~~below ~~the~~represents ~~accounting~~product ~~policies~~group ~~and~~revenues estimates that are critical to our business operations and understanding the Company’s results of operations. Those policies and estimates can be found in Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements and in “Critical Accounting Policies and Estimates,” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, in Note 1, “Summary of Significant Accounting Policies,” and in Note 3, "Revenue Recognition" in the Notes to Consolidated Financial Statements in this Form 10-Q. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. There were no significant changes to other critical accounting policies, judgments involved in applying those policies, or the methodology used in determining estimates with respect to those related to investment securities, inventories, goodwill, intangible assets, property and equipment, and contingencies, during the three ~~and~~months ~~nine month periods~~ ended ~~December~~June 3130, 2018 ~~other than those discussed in Note 1, "Basis of Presentation,"~~ and ~~Note 3, "Revenue Recognition," in the Notes to Consolidated Financial Statements in this Form 10-Q related to revenue recognition~~2019.

	Three Months Ended
(in thousands)	June 30,
Sales Revenue	2018		2019
Ceramic Components	$	78,836	$	106,623
Tantalum Components		101,032		62,724
Advanced Components		139,344		108,133
Total Electronic Components		319,212		277,480
Interconnect, Sensing and Control Devices		134,904		124,289
Total Revenue	$	454,116	$	401,769

~~Table~~Electronic Components sales decreased $41.7 million, or 13.1% to $277.5 million in the three month period ended June 30, 2019 compared to sales of ~~Contents~~$319.2 million during the same period last year driven by unfavorable global macro-economic conditions partially offset by increased electronic content in automobiles, global defense spending, and technological advances across a broad range of IoT products. The increase in Ceramic Components is primarily due to higher demand and a more favorable pricing environment during the quarter ended June 30, 2019 compared to the same quarter last year. Tantalum Components have declined during the quarter ended June 30, 2019 compared to the same period last year as a result of lower demand, primarily in Asia, resulting from the decline in the Chinese economy in addition to higher inventory levels in the sales channel in all regions, particularly with our distribution customers. The decline in Advanced Components during the quarter ended June 30, 2019 compared to the same quarter last year has been impacted by approximately $17 million of sales for Kyocera product which is no longer sold by AVX in addition to a slower mobile phone market.

~~Business~~Interconnect, ~~Overview~~Sensing and Control Devices product sales decreased $10.6 million to $124.3 million in the three month period ended June 30, 2019 compared to $134.9 million during the same period last year. This decrease is primarily attributable to a decrease of automotive manufacturing globally.

~~AVX~~Overall sales ispercentages decreased in the Asian and European regions as a ~~leading~~result ~~worldwide~~of ~~manufacturer,~~the ~~supplier,~~weaker Chinese economy and ~~reseller~~weaker ofautomotive amarkets ~~broad~~while ~~line~~sales ofincreased ~~electronic~~in ~~components,~~our ~~interconnect,~~American region ~~sensing~~compared ~~and~~to ~~control~~the ~~devices,~~same ~~and~~three-month ~~related~~period ~~products~~last year. ~~Electronic~~Sales ~~components~~in ~~and~~the ~~connector~~Asian, ~~sensing~~American, and ~~control~~European ~~products~~markets ~~manufactured~~represented or29%, ~~resold~~29% byand ~~AVX~~42% ~~are~~of ~~used~~total insales, ~~many~~respectively, ~~types~~for ofthe ~~end-use~~three ~~products,~~month ~~including~~period ~~those~~ended inJune ~~telecommunications~~30, ~~automotive,~~2019. ~~transportation,~~This ~~energy~~compares ~~harvesting~~to 31%, ~~consumer~~25% ~~electronics,~~and ~~military/aerospace,~~44% ~~medical~~of total sales for the Asian, ~~computer~~American, and ~~industrial~~European ~~markets~~regions in the same period last year, respectively.

WeOur ~~have~~sales ~~manufacturing,~~to ~~sales,~~independent ~~and~~electronic ~~distribution~~distributor ~~facilities~~customers ~~located~~represented ~~throughout~~38% of total sales for the ~~world~~three month period ended June 30, ~~which~~2019, ~~are~~compared ~~divided~~to ~~into~~40% for the three ~~geographic~~month ~~regions:~~period ~~the~~ended ~~Americas,~~June ~~Asia~~30, ~~and Europe~~2018. Overall, ~~AVX~~distributor issales ~~organized~~activity ~~into~~decreased ~~four~~when ~~product~~compared ~~groups~~to ~~with~~the ~~two~~same ~~reportable~~period ~~segments:~~last ~~Electronic~~year ~~Components~~as ~~and~~inventory ~~Interconnect,~~remains ~~Sensing~~higher ~~and~~than ~~Control~~normal ~~Devices.~~within ~~The~~the ~~Electronic~~distribution ~~Components~~channel ~~segment~~resulting ~~consists~~from ~~primarily~~the ofslower ~~surface~~global ~~mount~~economy and ~~leaded~~shortened ~~ceramic~~lead ~~capacitors,~~times RFfor ~~thick~~certain ~~and~~products ~~thin~~making ~~film~~distributors ~~components,~~reluctant ~~surface~~to ~~mount~~take ~~and~~on ~~leaded~~additional ~~tantalum~~inventory. ~~capacitors,~~Our ~~polymer~~sales ~~tantalum~~to ~~capacitors,~~distributor ~~surface~~customers ~~mount~~involve specific ship-and-debit ~~leaded~~and ~~film~~stock ~~capacitors,~~rotation ~~ceramic~~programs ~~and~~for ~~film~~which ~~power~~sales ~~capacitors,~~allowances ~~super~~are ~~capacitors,~~recorded ~~EMI~~as ~~filters~~reductions ~~(bolt~~ in ~~and~~sales. ~~surface~~Such ~~mount),~~allowance ~~thick~~charges ~~and~~were ~~thin~~$5.3 ~~film~~million, ~~packages~~or 3.5% of ~~multiple~~gross ~~integrated~~sales ~~components,~~to ~~varistors,~~distributor ~~thermistors,~~customers ~~inductors,~~for ~~resistive~~the ~~products,~~three ~~and~~month ~~passive~~period ~~and~~ended ~~active~~June ~~electronic~~30, ~~antennas~~2019, and ~~antenna~~$6.4 ~~systems~~million, ~~manufactured~~or by3.5% usof orgross ~~purchased~~sales ~~from~~to ~~other~~distributor ~~manufacturers~~customers, for ~~resale.~~the ~~The~~three ~~Interconnect,~~month ~~Sensing~~period ~~and~~ended ~~Control~~June ~~Devices~~30, ~~segment~~2018. ~~consists~~Applications ~~primarily~~under ofsuch ~~automotive~~programs ~~sensing~~for ~~and~~the ~~control~~three ~~devices~~month ~~and~~periods ~~automotive,~~ended ~~telecom~~June 30, 2019 and ~~memory~~2018 ~~connectors~~were ~~manufactured~~approximately ~~by,~~$5.1 ormillion ~~for~~and $6.2 million, ~~AVX~~respectively.

Our customers consist of multi-national original equipment manufacturers, or OEMs, independent electronic component distributors, and electronic manufacturing service providers, or EMSs. We market our products through our own direct sales force and independent manufacturers’ representatives, based upon market characteristics and demands. We coordinate our sales, marketing, and manufacturing organizations by strategic customer account and globally by region. 24

~~Results~~ Table of ~~Operations - Three Months Ended December 31, 2017 and 2018~~Contents

~~Our~~Gross ~~net~~profit ~~income~~in ~~for~~ the three ~~months~~month period ended ~~December~~June 3130, ~~2018~~2019 was $74100.36 million, orcompared to a gross profit of $0108.443 ~~per~~million in ~~share~~the three month period ended June 30, ~~compared~~2018. This overall decrease in dollars is primarily attributable to alower ~~net~~sales ~~loss~~partially ofoffset ~~$93~~by strong margins.2 ~~million,~~Gross orprofit as a ~~loss~~percentage of ~~$0.55~~sales ~~per~~for ~~share~~the three month period ended June 30, 2019 was 25.1% compared to 23.9% for the three ~~months~~month period ended ~~December~~June 3130, ~~2017~~2018. This increase in gross profit as a percentage of sales is reflective of our continued focus on the sale of value-added components with better margin opportunities, increased operational efficiencies, and an improved pricing environment in the global marketplace when compared to the same quarter last year. Costs due to currency movement were favorably impacted by $8.0 million when compared to the same period last year.

	Three Months Ended
	December 31,
(in thousands, except per share data)	2017			2018
Net sales	$	431,795		$	442,395
Gross profit		82,103			126,154
Operating income		45,331			89,556
Net income		(93,212	)		74,297
Diluted earnings per share	$	(0.55	)	$	0.44

Selling, general and administrative expenses in the three month period ended June 30, 2019 were $41.9 million, or 10.4% of net sales, compared to $40.3 million, or 8.9% of net sales, in the three month period ended June 30, 2018. When compared to the same quarter last year, the overall increase in these expenses is primarily due to higher legal fees partially offset by lower selling expenses as a result of the lower sales.

~~Net~~Income ~~sales~~from inoperations ~~the~~was ~~three month period ended December 31, 2018 increased~~ $1058.67 million ~~or 2.5%, to $442.4 million compared to $431.8 million~~ in the three month period ended ~~December~~June 3130, ~~2017.~~2019 ~~Overall~~compared ~~global market conditions were mixed, with softening demand in Asia, resulting from recent tariff issues, and in Europe due~~ to new automobile emissions regulations going into effect. The connected world is driving electronic component market demand whereby the power of electronics is enhancing the user experience in automotive, wearables, smartphones, drones, solid state drives, personal and industrial robots, virtual reality devices, smart home control and security devices enabled through IoT, or Internet of Things, and IIot, or Industrial Internet of Things. The increase in revenue for the three month period ended December 31, 2018 includes sales of $2568.5 million in our Electronic Components segment attributable to our acquisition of Ethertronics, Inc., ("AVX Antenna") in February of 2018. The increased sales were offset by the loss of Kyocera Resale Product sales in our Electronic Components segment, due to Kyocera's decision to market and sell certain of its products globally using its own sales force rather than have AVX resell such products in various geographies, which were $0.2 million ~~for~~in the three month period ended ~~December~~June 3130, 2018 ~~compared to $77~~.0 ~~million~~This ~~for~~decrease ~~the~~was ~~three month period ended December 31, 2017. Sales were also unfavorably impacted by approximately $10.8 million as~~ a result of ~~currency movement due to~~ the ~~stronger~~factors ~~U.S.~~described ~~Dollar as compared to the Japanese Yen and Euro when compared to the same period last year~~above.

24Other income, net, was $4.5 million for the three month period ended June 30, 2019 compared to $2.8 million for the same three month period last year reflecting higher interest income.

~~Table~~The ofprovision ~~Contents~~for income tax for the three month period ended June 30, 2019 was $8.5 million compared to $14.8 million for the three month period ended June 30, 2018. Our effective tax rate for the quarter ended June 30, 2019 was approximately 13%. The decrease in the effective tax rate is due to a discrete tax benefits occurring during the quarter. This benefit is principally due to an increase in foreign tax credits on foreign withholding obligations. Excluding these adjustments, the effective tax rate would be approximately 21% for the quarter ended June 30, 2019.

~~The~~As ~~table~~a ~~below~~result ~~represents~~of ~~product~~the ~~group~~factors ~~revenues~~discussed above, net income for the three month period ended ~~December~~June 3130, ~~2017~~2019 ~~and~~was ~~2018~~$54.7 million compared to net income of $56.0 million for the same three month period last year.

	Three Months Ended
(in thousands)	December 31,
Sales Revenue	2017		2018
Ceramic Components	$	60,136	$	120,561
Tantalum Components		90,517		95,167
Advanced Components		155,914		110,344
Total Electronic Components		306,567		326,072
Interconnect, Sensing and Control Devices		125,228		116,323
Total Revenue	$	431,795	$	442,395

Outlook

Electronic Components sales increased $19.5 million, or 6.4% to $326.1 million in the three month period ended December 31, 2018 compared to sales of $306.6 million during the same period last year driven by increased demand and a more favorable pricing environment due to improved global macroNear-economic conditions, increased electronic content in automobiles, global defense spending, and technological advances across a broad range of IoT and IIot products and smart home devices driving increased sales in all of our Electronic Components groups. The sales increase in our Advanced Component group was offset by the loss of Kyocera Resale product sales of $76.8 million when compared to the period ended December 31, 2017 as discussed above. Ceramic Components sales for the three months ended December 31, 2018 were favorably impacted by sales of $25.5 million related to our acquisition of AVX Antenna in February 2018.Term:

~~Interconnect,~~With ~~Sensing~~ever changing and ~~Control~~unpredictable ~~Devices~~global ~~product~~geopolitical ~~sales~~and ~~decreased~~economic byconditions, ~~$8.9~~it ~~million~~ is difficult to ~~$116~~quantify expectations for the remainder of fiscal 2020.3 ~~million~~Near-term inresults for us will depend on the ~~three~~impact ~~month~~of ~~period~~the ~~ended~~overall ~~December~~global 31geopolitical and economic conditions and their impact on telecommunications, ~~2018~~information ~~compared~~technology tohardware, ~~$125.2~~automotive, ~~million~~consumer ~~during~~electronics, ~~the~~and ~~same~~other ~~period~~electronic ~~last~~markets. ~~year~~Looking ~~driven~~ahead, byvisibility is low and forecasting is a ~~slowdown~~challenge in ~~the~~this ~~automotive~~uncertain and volatile market. We expect to see normal sales price pressure in ~~all~~the ~~regions~~markets we serve due to the weaker economic picture, ~~particularly~~partially inoffset ~~Europe~~by ~~where~~increasing ~~new~~demand ~~automobile~~for ~~emissions~~certain ~~control~~electronic ~~regulations~~components ~~are~~with ~~being~~lower ~~implemented~~product ~~leading~~availability. In response to ~~production~~anticipated ~~slow-downs~~market atconditions, ~~manufacturers~~we expect to continue to focus on cost management and manufacturing facilities rationalization to maximize earnings potential. ~~With~~We aalso ~~majority~~continue ofto ~~this~~focus ~~groups~~on ~~sales~~process improvements and enhanced production capabilities in ~~Europe,~~conjunction ~~the~~with ~~increased~~our focus on the sales of ~~Interconnect,~~value-added ~~Sensing~~electronic ~~and~~components ~~Control~~to ~~Devices~~support ~~were~~today’s ~~partially~~advanced ~~offset~~electronic byuse ~~unfavorable~~products. ~~currency~~If ~~movement~~current ~~due~~global togeopolitical and economic conditions worsen, the ~~stronger~~overall ~~U.S.~~impact ~~Dollar~~on ~~compared~~our tocustomers ~~the~~as ~~Euro~~well as end-user demand for electronic products could have a significant adverse impact on our near-term results.

Geographically, compared to the same period last year, all regions have benefited from increased demand and an improved pricing environment. The overall sales decrease in Asia is due to the reduction of Kyocera Resale product sales as discussed above. Sales decreased slightly in Europe resulting from lower sales into the automobile market. Overall sales percentages decreased in the Asian and American regions while sales increased in our European region compared to the same threeLong-month period last year. Sales in the Asian, American, and European markets represented 33%, 27% and 40% of total sales, respectively, for the three month period ended December 31, 2018. This compares to 35%, 22% and 43% of total sales for the Asian, American, and European regions in the same period last year, respectively.Term:

~~Our~~Although ~~sales~~there tois ~~independent~~uncertainty ~~electronic~~and ~~distributor~~unpredictability ~~customers~~in ~~represented~~the ~~44.7%~~near-term ofmarket ~~total~~as ~~sales~~a ~~for~~result of the ~~three~~current ~~month~~global ~~period~~geopolitical ~~ended~~and ~~December~~economic 31conditions, ~~2018,~~we ~~compared~~continue to ~~39.0%~~be ~~for~~optimistic ~~the~~about ~~three~~opportunities ~~month~~for ~~period~~long-term ~~ended~~growth ~~December~~and ~~31,~~profitability ~~2017.~~improvement ~~Overall,~~due ~~distributor sales activity increased when compared~~ to: ~~the~~(a) ~~same~~a ~~period~~projected ~~last~~increase ~~year~~in ~~as distributors increased order activity during~~ the ~~past~~long-term ~~several~~worldwide ~~quarters~~demand infor ~~response~~more tosophisticated ~~improved~~electronic end~~-market~~ ~~demand~~use ~~and~~products, ~~extended~~which ~~product~~require ~~delivery~~electronic ~~lead~~components ~~times.~~and interconnect, ~~Our~~sensing ~~sales to distributor customers involve specific ship-~~and~~-debit~~ ~~and~~control ~~stock~~devices ~~rotation~~such ~~programs~~as ~~for~~the ~~which~~ones ~~sales~~we ~~allowances~~sell, ~~are~~(b) ~~recorded~~cost as reductions inand ~~sales.~~improvements ~~Such~~in ~~allowance~~our ~~charges~~production ~~were $6.7 million~~processes, or(c) ~~3.4%~~opportunities ~~of gross sales to distributor customers~~ for ~~the~~growth ~~three~~in ~~month~~our ~~period~~Electronic ~~ended~~Component ~~December~~and 31Interconnect, ~~2018,~~Sensing and ~~$8.3~~Control ~~million,~~Devices product orlines ~~4.9%~~due ~~of gross sales~~ to ~~distributor~~advances ~~customers,~~in ~~for~~component ~~the~~design ~~three~~and ~~month~~our ~~period~~production ~~ended December 31, 2017~~capabilities. ~~Applications~~We ~~under~~have ~~such~~fostered ~~programs~~our ~~for~~financial ~~the~~health ~~three month periods ended December 31, 2018~~ and ~~2017~~the ~~were~~strength ~~approximately~~of ~~$6.3~~our ~~million~~balance ~~and~~sheet ~~$7.9~~putting ~~million,~~us ~~respectively. The decrease~~ in ~~both~~a ~~percentage~~good ~~and~~position ~~dollars~~to ~~compared~~react to changes in the ~~prior~~marketplace ~~year~~as isthey ~~reflective~~occur. ofWe ~~the~~remain ~~increased~~confident ~~demand~~that ~~and~~our ~~improved~~strategies ~~pricing~~will ~~environment~~enable inour ~~the~~continued ~~marketplace~~long-term success.

~~Gross~~Liquidity profit in the three month period ended December 31, 2018 was $126.2 million, compared to a gross profit of $82.1 million in the three month period ended December 31, 2017. Gross profit as a percentage of sales for the three month period ended December 31, 2018 was 28.5% compared to 19.0% for the three month period ended December 31, 2017. This increase in gross profit in dollars and asCapital a percentage of sales is reflective of our continued focus on the sale of value-added components with better margin opportunities, increased operational efficiencies, and an improved pricing environment in the global marketplace. Additionally, costs due to currency movement were favorably impacted by $8.1 million when compared to the same period last year.Resources

~~Selling,~~Our ~~general~~liquidity ~~and~~needs ~~administrative~~arise ~~expenses~~primarily infrom ~~the~~working ~~three~~capital ~~month~~requirements, ~~period~~dividends, ~~ended~~capital ~~December 31~~expenditures, ~~2018~~and ~~were $42~~acquisitions.2 ~~million~~Historically, orwe ~~9.5%~~have ofsatisfied ~~net~~our ~~sales,~~liquidity ~~compared~~requirements tothrough ~~$36.8~~funds ~~million~~from operations, orinvestment ~~8.5%~~income offrom ~~net~~cash ~~sales,~~and investments in ~~the~~securities, ~~three~~and ~~month~~cash ~~period~~on ~~ended December 31, 2017~~hand. ~~The~~As ~~increase~~of inJune ~~selling~~30, ~~general~~2019, ~~and~~we ~~administrative~~had ~~expenses~~a iscurrent ~~primarily~~ratio ~~due~~of 6 to ~~the amortization~~1, of$790.3 ~~intangible~~million ~~assets~~of ~~related~~cash, tocash ~~the AVX Antenna acquisition~~equivalents, asand ~~well~~investments asin ~~higher~~securities, ~~selling~~$2.4 billion ~~expenses~~of ~~resulting~~stockholders’ ~~from~~equity, ~~the~~and ~~increase~~no ~~in sales~~borrowings.

On January 15, 2019, as the result of a new jury verdict in the Greatbatch, Inc v. AVX Corporation patent infringement case, the Company recorded a favorable accrual adjustment of $13.9 million, which is reflected in legal and environmental charges for the three month period ended December 31, 2018. This amount was offset by a charge of $8.3 million for estimated environmental remediation costs related to legacy environmental issues. 25

25 Table of Contents

~~Table~~Net cash provided by operating activities was $32.1 million in the three month period ended June 30, 2019 compared to $97.6 million of ~~Contents~~cash provided by operating activities in the three month period ended June 30, 2018.

~~Income~~Purchases ~~from~~of ~~operations~~property ~~was~~and equipment were $8934.64 million in the three month period ended ~~December~~June 3130, ~~2018~~2019 ~~compared~~and to $4538.30 million in the three month period ended ~~December~~June 3130, ~~2017~~2018. ~~This~~Expenditures ~~increase~~in ~~was~~the acurrent ~~result~~quarter were primarily made in connection with strategic building expansion and equipment purchase activities in our Fountain Inn, South Carolina facilities and our plants in El Salvador and Malaysia. We expect to continue making strategic capital investments in our Electronic Component and Interconnect, Sensing and Control Devices product lines and estimate that we will incur capital expenditures of approximately $100 million in fiscal 2020. The actual amount of capital expenditures will depend upon the ~~factors~~outlook ~~described~~for ~~above~~end-market demand and timing of capital projects.

~~Other~~Historically, our operating funding is internally generated through operations, investment income from cash, ~~net~~cash equivalents, ~~was~~and $1investments in securities and cash on hand.0 ~~million~~We ~~for~~have assessed the ~~three~~condition ~~month~~of ~~period~~our ~~ended~~financial ~~December~~resources 31and our current business and believe that, ~~2018~~based ~~compared~~on toour ~~$2.2~~financial ~~million~~condition ~~for~~as ~~the~~of ~~same~~June ~~three~~30, ~~month~~2019, ~~period~~cash ~~last~~on ~~year.~~hand ~~When~~and ~~compared~~cash expected to ~~the~~be ~~same~~generated ~~period~~from ~~last~~operating ~~year~~activities and investment income from cash, ~~the~~cash ~~decrease~~equivalents, ~~was~~and ~~due~~investments in securities will be sufficient to ansatisfy ~~increased~~our ~~accrual~~anticipated financing needs for ~~estimated~~working ~~interest~~capital, capital expenditures, environmental clean-up costs, expenses related to ongoing litigation, pension plan funding, research, development, and engineering expenses, and dividend payments or stock repurchases to be made during the ~~Greatbatch~~next ~~patent~~twelve ~~infringement~~months. ~~case~~While ~~discussed~~changes ~~above~~in ~~partially~~customer ~~offset~~demand have an impact on our future cash requirements, changes in those requirements are mitigated by ~~higher~~our ~~interest~~ability ~~income~~to onadjust ~~higher~~manufacturing ~~investment~~capabilities ~~balances~~to ~~and~~meet ~~improved~~increases ~~returns~~or decreases in customer demand. We do not anticipate any significant changes in our ability to generate capital or meet our liquidity needs in the foreseeable future.

~~The~~From ~~provision~~time ~~for income tax for the three month period ended December 31, 2018 was $16.3 million compared~~ to ~~$140.8~~time ~~million~~we ~~for~~enter ~~the~~into ~~three~~delivery ~~month~~contracts ~~period~~with ~~ended~~selected ~~December~~suppliers ~~31, 2017. Our effective tax rate~~ for ~~the~~certain ~~quarter~~precious ~~ended~~metals ~~December~~used ~~31,~~in ~~2018~~our ~~was~~production ~~approximately 21~~processes.~~4%.~~ The ~~decrease~~delivery ~~when~~contracts ~~compared~~represent toroutine ~~the~~purchase ~~same~~orders ~~quarter~~for ~~last~~delivery ~~year~~within isthree ~~primarily~~months ~~related to the Tax Cuts~~ and ~~Jobs~~payment ~~Act~~is ~~(the~~due ~~“Act”)~~upon ~~which was enacted in the U~~receipt.S. onAs ~~December~~of ~~22,~~June ~~2017~~30, ~~consisting primarily of a charge for estimated taxes on un-repatriated accumulated overseas earnings. Additionally~~2019, ~~the~~we ~~decrease~~did ~~was~~not ~~caused~~have byany ansignificant ~~enacted~~delivery ~~income~~contracts ~~tax rate reduction in France~~outstanding.

AsCommitments aand result of the factors discussed above, net income for the three month period ended December 31, 2018 was $74.3 million, compared to a net loss of $93.2 million for the same three month period last year.Contingencies

Information related to commitments and contingencies can be found in Note 14, “Commitments and Contingencies,” of the Notes to Consolidated Financial Statements and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” –contained ~~Nine~~in ~~Months~~the ~~Ended~~Annual ~~December~~Report on Form 10-K for the fiscal year ended March 31, ~~2017~~2019, as well as in Note 8, “Commitments and ~~2018~~Contingencies,” in the Notes to the Consolidated Financial Statements in this Form 10-Q. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2019.

~~Our~~New ~~net~~Accounting ~~income for the nine months ended December 31, 2018 was $202.3 million, or $1.20 per share, compared to a net loss of $26.9 million, or $0.16 per share, for the nine months ended December 31, 2017.~~Standards

	Nine Months Ended
	December 31,
(in thousands, except per share data)	2017			2018
Net sales	$	1,115,842		$	1,352,839
Gross profit		233,222			360,963
Operating income		132,548			243,211
Net income		(26,910	)		202,329
Diluted earnings per share	$	(0.16	)	$	1.20

Information related to new Statements of Financial Accounting Standards and Financial Accounting Standards Board Staff Positions that we have recently adopted or are currently reviewing can be found in Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements and in “Critical Accounting Policies and Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in the Annual Report on Form 10-K for the fiscal year ended March 31, 2019, as well as in Note 1, “Summary of Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in this Form 10-Q. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2019.

~~Net~~Off-Balance ~~sales~~Sheet in the nine month period ended December 31, 2018 increased $237.0 million, or 21.2%, to $1,352.8 million compared to $1,115.8 million in the nine month period ended December 31, 2017. The increase in revenue was attributable to higher volumes and favorable pricing across most of our markets resulting from steadily improving global market conditions reflecting higher overall demand, primarily in the automotive, medical, and consumer markets. The connected world is driving electronic component market demand whereby the power of electronics is enhancing the user experience in automotive, wearables, smartphones, drones, solid state drives, personal and industrial robots, virtual reality devices, smart home control, security devices enabled through the IoT, and IIot. The increase in revenue for the nine month period ended December 31, 2018 includes sales of $267.0 million as compared to $90.5 million for the nine month period ended December 31, 2017 in our Interconnect, Sensing and Control Devices segment that are attributable to our acquisition of S&C and $89.3 million in our Electronic Components segment attributable to our acquisition of AVX Antenna in February 2018. The increased sales were partially offset by the loss of Kyocera Resale Product sales in our Electronic Components segment, due to Kyocera's decision to market and sell certain of its products globally using its own sales force rather than have AVX resell such products in various geographies, which were $18.8 million for the nine month period ended December 31, 2018 compared to $239.0 million for the nine month period ended December 31, 2017. Sales for the nine month period were also unfavorably impacted by approximately $11.2 million as a result of currency movement due to the stronger U.S. Dollar as compared to the Japanese Yen and Euro when compared to the same period last year.Arrangements

26We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

~~Table of Contents~~ 26

~~The~~ Table ~~table~~of ~~below represents product group revenues for the nine months ended December 31, 2017 and 2018.~~Contents

	Nine Months Ended
(in thousands)	December 31,
Sales Revenue	2017		2018
Ceramic Components	$	168,512	$	302,075
Tantalum Components		273,457		301,901
Advanced Components		486,384		373,537
Total Electronic Components		928,353		977,513
Interconnect, Sensing and Control Devices		187,489		375,326
Total Revenue	$	1,115,842	$	1,352,839

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

~~Electronic~~Our ~~Component~~ sales ~~increased~~are ~~$49.1 million,~~denominated orin ~~5.3%~~various foreign currencies in addition to ~~$977~~the U.5S. ~~million~~Dollar. Certain manufacturing and operating costs denominated in ~~the~~local ~~nine~~currencies ~~month~~are ~~period~~incurred ~~ended~~in ~~December~~Europe, 31Asia, ~~2018~~Mexico, ~~compared~~and toCentral ~~sales~~and ofSouth ~~$928~~America.4 ~~million~~As ~~during~~a ~~the~~result, ~~same~~fluctuations ~~nine~~in ~~month~~currency ~~period~~exchange ~~last~~rates ~~year~~affect our operating results and cash flow. ~~The~~In ~~increase~~order ~~was~~to ~~driven~~minimize bythe ~~increased~~effect ~~demand~~of ~~and~~movements ain ~~more~~currency ~~favorable~~exchange ~~pricing~~rates, ~~environment~~we ~~due~~periodically enter into forward exchange contracts to ~~steadily~~hedge ~~improved~~external ~~global~~and ~~market~~intercompany ~~conditions~~foreign ascurrency atransactions. ~~result~~We ofdo ~~increased~~not ~~electronic~~hold ~~content~~or inissue ~~automobiles,~~derivative ~~increased~~financial ~~global~~instruments ~~defense~~for ~~spending~~speculative purposes. Accordingly, ~~and~~we ~~technological~~have ~~advances~~hedging ~~across~~commitments ato ~~broad~~cover ~~range~~a portion of ~~IoT~~our ~~products~~exchange ~~and~~risk ~~smart~~on ~~home~~purchases, ~~devices~~operating expenses, and sales. ~~When~~There ~~compared~~have tobeen ~~the~~no ~~same~~material ~~nine~~net ~~month~~changes ~~period~~in ~~last~~our ~~year,~~exposure ~~sales~~to ~~increases~~foreign currency exchange rates as reflected in ~~our~~Part ~~Advanced~~II, ~~Component~~Item ~~group~~7A ~~were~~“Quantitative ~~offset~~and byQualitative aDisclosures ~~$220.2~~About ~~million~~Market ~~reduction~~Risk” in ~~Kyocera~~our ~~Resale~~Annual ~~product~~Report ~~sales~~on ~~partially~~Form ~~offset~~10-K byfor ~~$89~~the fiscal year ended March 31, 2019.~~3 million~~ See Note 12 of ~~sales~~our ~~attributable~~Notes to ~~our~~Consolidated ~~acquisition~~Financial ofStatements ~~AVX~~contained ~~Antenna~~ in ~~February~~this ~~2018~~Quarterly Report on Form 10-Q for further discussion of derivative financial instruments.

~~Total~~There ~~Interconnect,~~have ~~Sensing~~been ~~and~~no ~~Control~~material ~~Devices~~net ~~increased~~changes ~~$187.8~~in ~~million,~~our orexposure ~~100.2%,~~ to ~~$375.3~~foreign ~~million~~currency inexchange ~~the~~rates ~~nine~~as ~~month~~reflected ~~period~~in ~~ended~~Part ~~December 31~~II, ~~2018~~Item ~~compared~~7A to“Quantitative ~~$187.5~~and ~~million~~Qualitative ~~during~~Disclosures ~~the~~About ~~same~~Market ~~period~~Risk” ~~last year. This increase is primarily attributable to sales resulting from the addition of the S&C business~~ in ~~October~~our ofAnnual ~~2017~~Report ~~which~~on ~~had~~Form ~~sales of $267.0 million in the nine~~10-~~month~~K ~~period ended December 31, 2018 compared to sales of $90.5 million~~ for the ~~nine-month~~fiscal ~~period~~year ~~ending~~ended ~~December~~March 31, ~~2017~~2019. With a majority of this groups sales in Europe, the increased sales of Interconnect, Sensing and Control Devices were partially offset by unfavorable currency movement due to the stronger U.S. Dollar compared to the Euro sales.

~~Geographically,~~ITEM ~~compared to the same period last year, all regions have benefited from increased demand and an improved pricing environment~~4. ~~Overall~~CONTROLS ~~sales~~AND in the Asian region were relatively flat due to the loss of Kyocera Resale Product sales in that region. With the addition of S&C, whose sales are concentrated in Europe, overall sales percentages decreased in the Asian and American regions while sales increased in our European region compared to the same nine-month period last year. Sales in the Asian, American, and European markets represented 32%, 27% and 41% of total sales, respectively, for the nine month period ended December 31, 2018. This compares to 39%, 27% and 34% of total sales for the Asian, American, and European regions in the same period last year, respectively.PROCEDURES

~~Our~~We ~~sales~~maintain todisclosure ~~independent~~controls ~~electronic~~and ~~distributor~~procedures ~~customers~~that ~~represented~~are ~~42.3%~~designed ~~of total sales for the nine month period ended December 31, 2018, compared~~ to ~~45.0%~~ensure ~~for~~that ~~the~~information ~~nine~~required ~~month period ended December 31, 2017. Overall, distributor sales activity increased when compared~~ to ~~the~~be ~~same~~disclosed ~~period last year as distributors increased order activity~~ in ~~response~~our toreports ~~good~~under ~~end market demand during~~ the ~~period.~~Exchange ~~However~~Act, ~~with~~is ~~the~~recorded, ~~acquisition~~processed, ~~of S&C in October of 2017~~summarized, ~~the~~and ~~percentage~~reported ofwithin ~~distributor activity as a percentage of sales has declined since S&C primarily sells into~~ the ~~OEM~~time ~~market.~~periods ~~Our~~specified ~~sales to distributor customers involve specific ship-and-debit and stock rotation programs for which sales allowances are recorded as reductions~~ in ~~sales. Such allowance charges were $20.1 million, or 3.5% of gross sales to distributor customers, for~~ the ~~nine~~SEC’s ~~month~~rules ~~period~~and ~~ended December 31~~forms, ~~2018,~~ and ~~$22.6~~that ~~million,~~such orinformation ~~4.5%~~is ofaccumulated ~~gross~~and ~~sales~~communicated to ~~distributor customers~~management, ~~for~~including ~~the~~our ~~nine~~Chief ~~month~~Executive ~~period~~Officer ~~ended~~and ~~December~~Chief 31Financial Officer, ~~2017.~~as ~~Applications under such programs for the nine month period ended December 31~~appropriate, ~~2017~~to ~~and~~allow ~~2018~~timely ~~were~~decisions ~~approximately~~regarding ~~$21.9 million~~required ~~and $19~~disclosure.~~3 million, respectively.~~

~~Gross~~As ~~profit~~of in the ~~nine~~end ~~month~~of the period ~~ended~~covered ~~December~~in 31this report, ~~2018~~we ~~was~~carried ~~26.7%~~out ofan ~~sales~~evaluation, orunder ~~$361.0~~the ~~million~~supervision and with the participation of management, ~~compared~~including tothe aChief ~~gross~~Executive ~~profit~~Officer and Chief Financial Officer, of ~~20.9%~~the effectiveness of ~~sales,~~the ordesign ~~$233.2~~and ~~million~~operation of our disclosure controls and procedures, as such term is defined in ~~the~~Rules ~~nine~~13a-15(e) ~~month~~and ~~period~~15d-15(e) ~~ended~~of ~~December~~the ~~31,~~Exchange ~~2017~~Act. ~~This~~Based ~~increase~~upon inthat ~~gross~~evaluation, ~~profit~~the inChief ~~dollars~~Executive Officer and Chief Financial Officer concluded that as aof ~~percentage~~the end of ~~sales~~the isperiod ~~reflective~~covered ofby this report, our ~~continued~~disclosure ~~focus~~controls onand procedures were effective to ensure that information required to be disclosed by us in the ~~sale~~reports ofthat ~~value~~we ~~added~~file ~~components~~or ~~with~~submit ~~better~~under ~~margin~~the ~~opportunities,~~Exchange ~~increased~~Act ~~operational~~is ~~efficiencies~~recorded, processed, summarized, and anreported ~~improved~~within ~~pricing~~the ~~environment~~time periods specified in the ~~global~~SEC’s ~~marketplace.~~rules ~~Costs~~and ~~due~~forms, and is accumulated and communicated to ~~currency~~our ~~movement~~management, ~~were~~including ~~favorably~~the ~~impacted~~Chief byExecutive ~~$9.5~~Officer ~~million~~and ~~when~~Chief ~~compared~~Financial Officer, as appropriate to ~~the~~allow ~~same~~timely ~~period~~decisions ~~last~~regarding ~~year~~required disclosures.

~~Selling~~In addition, ~~general~~there ~~and~~were ~~administrative~~no ~~expenses~~changes in ~~the~~our ~~nine~~internal ~~month~~control ~~period~~over ~~ended~~financial ~~December~~reporting ~~31,~~during ~~2018~~the ~~were~~first ~~$123.3~~quarter ~~million, or 9.1%~~ of ~~net~~fiscal ~~sales,~~2020 ~~compared~~that tohave ~~$100.7~~materially ~~million~~affected, or ~~9.0%~~are ofreasonably ~~net~~likely ~~sales, in the nine month period ended December 31, 2017. The increase in selling, general and administrative expenses is primarily due~~ to ~~the~~materially ~~amortization for intangible assets related to the S&C and AVX Antenna acquisitions~~affect, asour ~~well~~internal ascontrol ~~higher~~over ~~selling~~financial ~~expenses resulting from the increase in sales when compared to the same period last year~~reporting.

On January 15, 2019, as the result of a new jury verdict in the Greatbatch, Inc v. AVX Corporation patent infringement case, the company recorded a favorable accrual adjustment of $13.9 million, which is reflected in legal and environmental charges for the nine month period December 31, 2018. This amount was offset by a charge of $8.3 million for estimated environmental remediation costs related to legacy environmental issues. 27

27 Table of Contents

~~Table~~PART ofII: ~~Contents~~OTHER INFORMATION

~~Income~~ITEM ~~from operations was $243~~1.2 ~~million~~LEGAL ~~in the nine month period ended December 31, 2018, compared to $132.5 million in the nine month period ended December 31, 2017. This increase was a result of the factors described above.~~PROCEEDINGS

~~Other~~Please ~~income,~~refer ~~net~~to ~~was~~Note ~~$7.1~~8, ~~million~~“Commitments ~~for~~and ~~the nine month period ended December 31~~Contingencies,” ~~2018~~in ~~compared~~our toNotes ~~$8.4 million for the same nine month period last year. When compared~~ to ~~the~~Consolidated ~~same~~Financial ~~period~~Statements ~~last~~in ~~year~~Part I, ~~the~~Item ~~decrease~~1 ~~was due~~ to anthis ~~increased~~Form ~~accrual~~10-Q for ~~estimated~~a ~~interest~~discussion ~~related~~of toour ~~the~~involvement ~~Greatbatch~~in ~~patent~~certain ~~infringement~~environmental ~~case~~and ~~discussed~~other ~~above~~pending ~~partially~~legal ~~offset by higher interest income on higher investment balances and improved returns~~proceedings.

~~The~~ITEM ~~provision for income tax for the nine month period ended December 31, 2018 was $47~~1A.9 ~~million~~RISK compared to $167.8 million for the nine month period ended December 31, 2017. Our effective tax rate for the quarter ended December 31, 2018 was approximately 21.4%. The decrease when compared to the same nine month period last year is primarily related to the Act which was enacted in the U.S. in December 2017, consisting primarily of a charge for estimated taxes on un-repatriated accumulated overseas earnings. Additionally, the decrease was the result of an enacted income tax rate reduction in France.FACTORS

AsPlease arefer ~~result~~to ofPart I, ~~the~~Item 1A, ~~factors~~Risk ~~discussed above~~Factors, ~~net~~in ~~income~~our Annual Report on Form 10-K for the ~~nine~~fiscal ~~month~~year ~~period~~ ended ~~December~~ March 31, ~~2018~~2019 ~~was~~for ~~$202.3~~information ~~million,~~regarding ~~compared~~factors tothat acould ~~net~~affect ~~loss~~our results of ~~$26~~operations, financial condition, and liquidity.9 ~~million~~There ~~for~~have been no material changes to the ~~same~~risk ~~nine~~factors ~~month~~affecting ~~period~~the ~~last~~company as reported in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019.

Outlook

ITEM 6.	EXHIBITS

Exhibit 31.1	Certification of John Sarvis, Chairman, Chief Executive Officer and President, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 6, 2019.

Exhibit 31.2	Certification of Michael Hufnagel, Senior Vice President, Chief Financial Officer and Treasurer, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated August 6, 2019.

Exhibit 32.1	Certification Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - John Sarvis and Michael Hufnagel.

101	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets at March 31, 2019 and June 30, 2019, (ii) the Consolidated Statements of Operation for the three month periods ended June 30, 2019 and 2018, (iii) the Consolidated Statement of Comprehensive Income (Loss) for the three month periods ended June 30, 2019 and 2018, (iv) the Consolidated Statements of Changes in Stockholders’ Equity for the three month periods ended June 30, 2019 and 2018, (v) the Consolidated Statements of Cash Flows for the three month periods ended June 30, 2019 and 2018 and (vi) the notes to the Condensed Consolidated Financial Statements.

~~Near-Term:~~ 28

~~With~~ Table ~~unpredictable global geopolitical and economic conditions, it is difficult to quantify expectations for the remainder~~ of fiscal 2019. Near-term results for us will depend on the impact of the overall global geopolitical and economic conditions and their impact on telecommunications, information technology hardware, automotive, consumer electronics, and other electronic markets. Looking ahead, visibility is low and forecasting is a challenge in this uncertain and volatile market. We expect to see lower than normal sales price pressure in the markets we serve due to increasing demand combined with lower product availability. However, that could change as supply and demand for products equalize in the markets we serve. In response to anticipated market conditions, we expect to continue to focus on cost management and product line rationalization to maximize earnings potential. We also continue to focus on process improvements and enhanced production capabilities in conjunction with our focus on the sale of value-added electronic components to support today’s advanced electronic use products. If current global geopolitical and economic conditions worsen, the overall impact on our customers as well as end-user demand for electronic products could have a significant adverse impact on our near-term results.Contents

~~Long-Term:~~Signature

~~Although~~Pursuant ~~there~~to ~~is unpredictability in~~ the ~~near-term~~requirements ~~market as a result~~ of the ~~current~~Securities ~~global~~Exchange ~~geopolitical~~Act ~~and~~of ~~economic conditions~~1934, wethe ~~continue~~registrant tohas ~~see~~duly ~~opportunities~~caused ~~for~~this ~~long-term~~report ~~growth and profitability improvement due~~ to: ~~(a)~~be asigned ~~projected increase in the long-term worldwide demand for more sophisticated electronic end use products in the connected world based~~ on ~~new~~its ~~IoT~~behalf ~~applications,~~by the ~~increase~~undersigned ofthereunto ~~electronic~~duly ~~content in cars~~authorized, ~~smart home devices that are connected to the internet~~ and ~~new consumer wireless devices, which require electronic components and interconnect, sensing and control devices such as~~ the ~~ones~~undersigned wealso ~~sell,~~has ~~(b)~~signed ~~cost~~this ~~reductions~~report ~~and improvements~~ in ~~our~~his ~~production~~capacity ~~processes,~~as (c) opportunities for growth in our Electronic Component and Interconnect, Sensing and Control Devices product lines due to advances in component design and our production capabilities. We have fostered our financial health and the ~~strength~~registrant’s ofChief ~~our~~Financial ~~balance sheet putting us in a good position to react to changes in the marketplace as they occur~~Officer. ~~We remain confident that our strategies will enable our continued long-term success.~~

~~Liquidity~~Date: ~~and~~August ~~Capital~~6, ~~Resources~~2019

~~Our~~AVX ~~liquidity~~Corporation ~~needs~~By: ~~arise~~/s/ ~~primarily~~Michael ~~from~~Hufnagel ~~working~~Michael ~~capital~~Hufnagel ~~requirements,~~Senior ~~dividends,~~Vice ~~capital expenditures~~President, ~~and~~Chief ~~acquisitions.~~Financial ~~Historically~~Officer, ~~we have satisfied our liquidity requirements through funds from operations, investment income from cash~~ and investments in securities, and cash on hand. As of December 31, 2018, we had a current ratio of 5.8 to 1, $853.7 million of cash, cash equivalents, and investments in securities, $2.3 billion of stockholders’ equity, and no borrowings. On December 22, 2017, the Act was enacted in the U.S. Among numerous other provisions, the Act reduced or eliminated certain corporate tax deductions and provided for a transition from a worldwide to a territorial tax system for resident corporations and related corporate group members. As a result of the Act we will have greater flexibility to redirect our global cash resources where they are needed.Treasurer

Net cash provided by operating activities was $197.0 million in the nine month period ended December 31, 2018, compared to $161.0 million of cash provided by operating activities in the nine month period ended December 31, 2017.29

Purchases of property and equipment were $94.1 million in the nine month period ended December 31, 2018, and $65.2 million in the nine month period ended December 31, 2017. Expenditures in the current quarter were primarily made in connection with strategic building expansion and equipment purchase activities in our Fountain Inn, South Carolina facilities and our plants in El Salvador, the Czech Republic, Germany and Malaysia. We expect to continue making strategic capital investments in our Electronic Component and Interconnect, Sensing and Control Devices product lines and estimate that we will incur capital expenditures of approximately $120 million in fiscal 2019. The actual amount of capital expenditures will depend upon the outlook for end-market demand and timing of capital projects.

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On April 30, 2018, AVX completed its purchase of Kumatec for $12.9 million in cash, net of cash acquired and debt assumed. Kumatec develops, constructs and manufactures automation equipment and manufactures plastic components.

Historically, our operating funding is internally generated through operations, investment income from cash, cash equivalents, and investments in securities and cash on hand. We have assessed the condition of our financial resources and our current business and believe that, based on our financial condition as of December 31, 2018, cash on hand and cash expected to be generated from operating activities and investment income from cash, cash equivalents, and investments in securities will be sufficient to satisfy our anticipated financing needs for working capital, capital expenditures, environmental clean-up costs, expenses related to ongoing litigation, pension plan funding, research, development, and engineering expenses, and dividend payments or stock repurchases to be made during the next twelve months. While changes in customer demand have an impact on our future cash requirements, changes in those requirements are mitigated by our ability to adjust manufacturing capabilities to meet increases or decreases in customer demand. We do not anticipate any significant changes in our ability to generate capital or meet our liquidity needs in the foreseeable future.

From time to time we enter into delivery contracts with selected suppliers for certain precious metals used in our production processes. The delivery contracts represent routine purchase orders for delivery within three months and payment is due upon receipt. As of December 31, 2018, we did not have any significant delivery contracts outstanding.

Commitments and Contingencies

Information related to commitments and contingencies can be found in Note 13, “Commitments and Contingencies,” of the Notes to Consolidated Financial Statements and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, as well as in Note 9, “Commitments and Contingencies,” in the Notes to the Consolidated Financial Statements in this Form 10-Q. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.

New Accounting Standards

Information related to new Statements of Financial Accounting Standards and Financial Accounting Standards Board Staff Positions that we have recently adopted or are currently reviewing can be found in Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements and in “Critical Accounting Policies and Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, as well as in Note 1, “Summary of Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in this Form 10-Q. Accordingly, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our sales are denominated in various foreign currencies in addition to the U.S. Dollar. Certain manufacturing and operating costs denominated in local currencies are incurred in Europe, Asia, Mexico, and Central and South America. Additionally, purchases of resale products from Kyocera may be denominated in Yen. As a result, fluctuations in currency exchange rates affect our operating results and cash flow. In order to minimize the effect of movements in currency exchange rates, we periodically enter into forward exchange contracts to hedge external and intercompany foreign currency transactions. We do not hold or issue derivative financial instruments for speculative purposes. Accordingly, we have hedging commitments to cover a portion of our exchange risk on purchases, operating expenses, and sales. There have been no material net changes in our exposure to foreign currency exchange rates as reflected in Part II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. See Note 13 of our Notes to Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for further discussion of derivative financial instruments.

ITEM 4. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Our disclosure controls and procedures are designed to provide reasonable assurance that the controls and procedures will meet their objectives. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

As of the end of the period covered in this report, we carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that as of the end of the period covered by this report, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

In addition, there were no changes in our internal control over financial reporting during the third quarter of fiscal 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II: OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Please refer to Note 9, “Commitments and Contingencies,” in our Notes to Consolidated Financial Statements in Part I, Item 1 to this Form 10-Q for a discussion of our involvement in certain environmental and other pending legal proceedings.

ITEM 1A. RISK FACTORS

Please refer to Part I, Item 1A, Risk Factors, in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018 for information regarding factors that could affect our results of operations, financial condition, and liquidity. There have been no material changes to the risk factors affecting the company as reported in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following table shows our purchases of common stock during the quarter.

					Total number of		Maximum number
					shares purchased		of shares that may
	Total number				as part of publicly		yet be purchased
	of shares		Average price		announced plans		under the plans or
Period	purchased		paid per share		or programs (1)		programs (1)
10/1/18 - 10/31/18		-	$	-		-		3,012,074
11/1/18 - 11/30/18		-		-		-		3,012,074
12/1/18 - 12/31/18		-		-		-		3,012,074
Total		-	$	-		-		3,012,074

(1) On October 17, 2007, 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. As of December 31, 2018, there were 3,012,074 shares that may yet be repurchased under this program. There is no expiration date for this repurchase program.

	ITEM 6.	EXHIBITS
	Exhibit 3.1	Amended and Restated Bylaws of the Company, effective October 17, 2018 (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed with the Securities and Exchange Commission on October 24, 2018).
	Exhibit 31.1	Certification of John Sarvis, Chairman, Chief Executive Officer and President, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated February 7, 2019.
	Exhibit 31.2	Certification of Michael Hufnagel, Senior Vice President, Chief Financial Officer and Treasurer, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated February 7, 2019.
	Exhibit 32.1	Certification Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - John Sarvis and Michael Hufnagel.
	101	The following financial information from our Quarterly Report on Form 10-Q for the quarter ended December 31, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operation, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Cash Flows, and (v) the Notes to Consolidated Financial Statements.

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Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized, and the undersigned also has signed this report in his capacity as the registrant’s Chief Financial Officer.

Date: February 7, 2019

AVX Corporation By: /s/ Michael Hufnagel Michael Hufnagel Senior Vice President, Chief Financial Officer, and Treasurer

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