Restructuring Costs

12 Months Ended

Mar. 31, 2015

RESTRUCTURING COSTS

During the three fiscal years ended March 31, 2015, Universal recorded restructuring costs related to various initiatives to adjust certain operations and reduce costs. For all three fiscal years, the restructuring costs incurred primarily related to operations that are part of the Other Regions reportable segment of the Company's flue-cured and burley leaf tobacco operations.

Fiscal Year Ended March 31, 2015

During fiscal year 2015, the Company recorded restructuring costs totaling $4.9 million, primarily related to downsizing certain functions at its operations in Brazil and a decision to suspend its operations in Argentina effective December 31, 2014. The decision to discontinue the Argentina operations involved costs for employee termination benefits, as well as costs to exit the Company's business arrangements with a supplier. The remaining restructuring costs primarily related to other downsizing efforts at several locations around the Company.

Fiscal Year Ended March 31, 2014

In fiscal year 2014, the Company's operating subsidiary in Brazil closed a factory and centralized all tobacco processing activities in its primary facility. In connection with this initiative, the Company incurred restructuring costs of approximately $4.0 million, including employee termination benefits, costs to relocate personnel and equipment to the main facility, and lease exit costs on the building that housed the closed operations. The remaining costs primarily related to voluntary early retirement arrangements at several locations around the Company.

Fiscal Year Ended March 31, 2013

During fiscal year 2013, the Company recorded restructuring costs totaling $4.1 million, primarily related to workforce reductions in one of the Company's operations in Africa.

A summary of the restructuring costs incurred during the fiscal years ended March 31, 2015, 2014, and 2013, is as follows:



	Fiscal Years Ended March 31,
	2015		2014		2013
Employee termination benefits	$	4,354	$	3,743	$	4,113
Other restructuring costs	536		3,003		—
Total restructuring costs incurred	$	4,890	$	6,746	$	4,113

A reconciliation of the Company’s liability for employee termination benefits and other restructuring costs for fiscal years 2013 through 2015 is as follows:



	Employee Termination Benefits			Other Costs			Total
Balance at April 1, 2012	$	1,271		$	291		$	1,562
Fiscal Year 2013 Activity:
Costs charged to expense	4,113			—			4,113
Payments	(5,002		)	(291		)	(5,293		)
Balance at March 31, 2013	382			—			382
Fiscal Year 2014 Activity:
Costs charged to expense	3,743			3,003			6,746
Payments	(2,099		)	(2,843		)	(4,942		)
Balance at March 31, 2014	2,026			160			2,186
Fiscal Year 2015 Activity:
Costs charged to expense	4,354			536			4,890
Payments	(5,684		)	(498		)	(6,182		)
Balance at March 31, 2015	$	696		$	198		$	894

The majority of the restructuring liability at March 31, 2015 will be paid in the early part of fiscal year 2016. 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 in future periods as business changes occur and additional cost savings initiatives are implemented.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details