RESTRUCTURING AND IMPAIRMENT COSTS

During the three fiscal years ended March 31, 2016, Universal recorded restructuring and impairment costs related to various initiatives to adjust certain operations and reduce costs. For all three fiscal years, the restructuring and impairment 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, 2016

In fiscal year 2016, the Company recorded restructuring and impairment costs totaling $2.4 million related to a decision to significantly scale back its operations in Zambia. Those costs included statutory employee termination benefits, impairment charges related to outstanding balances on loans to farmers whose contracts were terminated as a result of the decision, and impairment charges on certain property and equipment.

Fiscal Year Ended March 31, 2015

In 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. Restructuring costs were also incurred in connection with downsizing efforts at several other 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. Additional restructuring costs of approximately $2.7 million were incurred in connection with voluntary early retirement arrangements at several locations around the Company.

A summary of the restructuring and impairment costs incurred during the fiscal years ended March 31, 2016, 2015, and 2014, is as follows:



	Fiscal Years Ended March 31,
	2016		2015		2014
Restructuring Costs:
Employee termination benefits	$	1,629	$	4,354	$	3,743
Other restructuring costs	96		536		3,003
	1,725		4,890		6,746
Impairment Costs:
Farmer loans and property and equipment	664		—		—
Total restructuring and impairment costs	$	2,389	$	4,890	$	6,746

A reconciliation of the Company’s liability for employee termination benefits and other restructuring costs for fiscal years 2014 through 2016 is as follows:



	Employee Termination Benefits			Other Costs			Total
Balance at April 1, 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
Fiscal Year 2016 Activity:
Costs charged to expense	1,629			96			1,725
Payments	(2,246		)	(92		)	(2,338		)
Balance at March 31, 2016	$	79		$	202		$	281

The majority of the restructuring liability at March 31, 2016 will be paid in the early part of fiscal year 2017. 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.