Restructuring And Impairment Costs

9 Months Ended

Dec. 31, 2012

Restructuring Costs [Abstract]

Restructuring And Impairment Costs

RESTRUCTURING AND IMPAIRMENT COSTS

Since the beginning of fiscal year 2011, Universal has recorded approximately $37 million of restructuring and impairment costs related to various initiatives to adjust operations and reduce costs. Approximately $12 million of those costs related to the closing of the Company’s leaf tobacco processing facility in Canada. The remaining amounts were associated with various other cost reduction initiatives, including voluntary early retirement offers and involuntary separations at the Company’s headquarters and operating locations in the United States, South America, Africa, Europe, and Asia, as well as costs related to the termination of a business arrangement with a supplier and processor of tobacco in Europe in response to market changes. The restructuring and impairment costs primarily related to operating subsidiaries that are part of the North America and Other Regions reportable segments.

A summary of the restructuring costs recorded during the nine months ended December 31, 2012 and 2011, is as follows:

	Nine Months Ended December 31,
(in thousands of dollars)	2012		2011
Employee termination benefits	$	3,687	$	7,123
Other restructuring costs	—		3,097
Total	$	3,687	$	10,220

A reconciliation of the Company’s liability for the employee termination benefits and other restructuring costs discussed above for the nine months ended December 31, 2012 and 2011, is as follows:

(in thousands of dollars)	Employee Termination Benefits			Other Costs			Total
Nine Months Ended December 31, 2011:
Balance at beginning of year	$	6,386		$	225		$	6,611
Costs charged to expense	7,123			3,097			10,220
Payments	(12,017		)	(2,994		)	(15,011		)
Balance at December 31, 2011	$	1,492		$	328		$	1,820
Nine Months Ended December 31, 2012:
Balance at beginning of year	$	1,271		$	291		$	1,562
Costs charged to expense	3,687			—			3,687
Payments	(4,902		)	(291		)	(5,193		)
Balance at December 31, 2012	$	56		$	—		$	56

Most of the restructuring liability remaining at December 31, 2012 is expected to be paid by the end of the current fiscal year. Universal continually reviews its business for opportunities to realize efficiencies, reduce costs, and realign its operations in response to business changes. The Company may incur additional restructuring costs and asset impairment charges in future periods as business changes occur and additional cost savings initiatives are implemented.