þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
FOR THE FISCAL YEAR ENDED MARCH 31, 2017 | ||
OR | ||
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
FOR THE TRANSITION PERIOD FROM ______________TO_______________ |
Virginia (State or other jurisdiction of incorporation or organization) | 54-0414210 (I.R.S. Employer Identification Number) | |
9201 Forest Hill Avenue, Richmond, Virginia (Address of principal executive offices) | 23235 (Zip Code) |
Title of each class Common Stock, no par value | Name of each exchange on which registered New York Stock Exchange |
Item No. | Page | |
A. | The Company |
• | Strategic market position. We work closely with both our customers and suppliers to ensure that we deliver a product that meets our customers' needs while cultivating a strong, sustainable supplier base. We balance purchases of leaf tobacco against indicated customer demand and maintain global procurement and production operations to maximize supply chain efficiencies. |
• | Strong local management. Having strong local management in all of our key supply origins allows us to identify and react to constantly shifting market conditions. Empowered and experienced local management, coupled with global coordination, affords us the flexibility and knowledge necessary to adapt quickly in order to continually deliver high quality, competitively-priced products and services. |
• | Compliant products. Customers expect a sustainable supply of compliant, traceable, competitively-priced product, and we believe that we lead in delivering these products. Among other initiatives, we invest in training farmers in good agricultural practices that encompass crop quality, environmental stewardship and agricultural labor standards. |
• | Diversified sources. We operate in over 30 countries on five continents and maintain a presence in all major flue-cured, burley, oriental, and dark air-cured tobacco origin markets. This global presence allows us to meet our customers' diverse leaf requirements while minimizing the effects of adverse crop conditions and other localized supply disruptions. |
• | Financial strength. Financial strength is critical and enables us to fund our global operations efficiently and to facilitate investment when suitable opportunities arise. Management of liquidity, interest expense and capital costs provides us with a competitive advantage and affords us flexibility when responding to customer requirements and market changes. |
B. | Description of Business |
• | Experience dealing with large numbers of farmers, |
• | Expertise in delivering a sustainable supply of compliant, traceable, competitively-priced leaf tobacco, |
• | Capability to meet unique customer requirements for style, volume and quality, |
• | Longstanding customer relationships, |
• | Presence in all major leaf tobacco sourcing areas, and |
• | Financial strength and flexibility. |
C. | Employees |
D. | Research and Development |
E. | Patents, etc. |
F. | Government Regulation, Environmental Matters, and Other Matters |
• | trends in the global consumption of cigarettes, |
• | trends in consumption of cigars and other tobacco products, |
• | trends in consumption of alternative tobacco products, such as electronic nicotine delivery systems and non-combustible products, |
• | levels of competition among our customers, and |
• | regulatory and governmental factors. |
• | demographic shifts that change the number of farmers or the amount of land available to grow tobacco, |
• | decisions by farmers to grow crops other than leaf tobacco, |
• | volume of annual tobacco plantings and yields realized by farmers, |
• | availability of crop inputs, |
• | weather and natural disasters, including any adverse weather conditions that may result from climate change, and |
• | crop infestation and disease. |
• | restrictions on the use of tobacco products in public places and places of employment, |
• | legislation authorizing the U.S. Food and Drug Administration (the “FDA”) to regulate the manufacturing and marketing of all tobacco products, |
• | increases in the federal, state, and local excise taxes on cigarettes and other tobacco products, and |
• | the policy of the U.S. government to link certain federal grants to the enforcement of state laws restricting the sale of tobacco products. |
Location | Principal Use | Building Area | |||
(Square Feet) | |||||
Flue-Cured and Burley Leaf Tobacco Operations: | |||||
North America: | |||||
United States | |||||
Nash County, North Carolina | Factory and storages | 1,323,000 | |||
Other Regions: | |||||
Brazil | |||||
Santa Cruz | Factory and storages | 2,386,000 | |||
Malawi | |||||
Lilongwe | Factory and storages | 942,000 | |||
Mozambique | |||||
Tete | Factory and storages | 770,000 | |||
Philippines | |||||
Agoo, La Union | Factory and storages | 770,000 | |||
Tanzania | |||||
Morogoro | Factory and storages | 895,000 | |||
Zimbabwe | |||||
Harare (1) | Factory and storages | 1,445,000 | |||
Other Tobacco Operations: | |||||
United States | |||||
Lancaster, Pennsylvania | Factory and storages | 793,000 |
(1) | Owned by an unconsolidated subsidiary. |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Fiscal Year Ended March 31, 2017 | ||||||||||||||||
Cash dividends declared | $ | 0.53 | $ | 0.53 | $ | 0.54 | $ | 0.54 | ||||||||
Market price range: | ||||||||||||||||
High | 57.75 | 61.69 | 64.20 | 83.35 | ||||||||||||
Low | 52.26 | 55.29 | 52.40 | 63.30 | ||||||||||||
Fiscal Year Ended March 31, 2016 | ||||||||||||||||
Cash dividends declared | $ | 0.52 | $ | 0.52 | $ | 0.53 | $ | 0.53 | ||||||||
Market price range: | ||||||||||||||||
High | 57.76 | 58.41 | 57.72 | 57.27 | ||||||||||||
Low | 46.80 | 46.98 | 49.70 | 51.49 |
Common Stock | Series B 6.75% Convertible Perpetual Preferred Stock (4) | |||||||||||||||||||||||
Period (1) | Total Number of Shares Repurchased | Average Price Paid Per Share (2) | Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs (3) | Total Number of Shares Repurchased | Average Price Paid Per Share (2) | Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs (3) | Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) | |||||||||||||||||
January 1-31, 2017 | — | $ | — | — | — | $ | — | — | $ | 100,000,000 | ||||||||||||||
February 1-28, 2017 | — | — | — | — | — | — | 100,000,000 | |||||||||||||||||
March 1-31, 2017 | — | — | — | — | — | — | 100,000,000 | |||||||||||||||||
Total | — | $ | — | — | — | $ | — | — | $ | 100,000,000 |
(1) | Repurchases are based on the date the shares were traded. This presentation differs from the consolidated statement of cash flows, where the cost of share repurchases is based on the date the transactions were settled. |
(2) | Amounts listed for average price paid per share include broker commissions paid in the transactions. |
(3) | A stock repurchase plan, which was authorized by our Board of Directors, became effective and was publicly announced on November 5, 2015. This stock repurchase plan authorizes the purchase of up to $100 million in common and/or preferred stock in open market or privately negotiated transactions, subject to market conditions and other factors, and will expire on the earlier of November 15, 2017, or when we have exhausted the funds authorized for the program. The conversion of the remaining shares of our Series B 6.75% Convertible Perpetual Preferred Stock did not affect our stock repurchase plan. |
(4) | On January 9, 2017, the Company announced a mandatory conversion of all 107,418 remaining outstanding shares of the preferred stock after meeting the requirements to initiate the mandatory conversion under the original terms of the preferred shares. The Company chose to satisfy the full conversion obligation for the mandatory conversion in cash, paying approximately $178.4 million for those preferred shares on January 31, 2017 to complete the conversion. |
Fiscal Year Ended March 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
(in thousands, except share and per share data, ratios, and number of shareholders) | |||||||||||||||||||
Summary of Operations | |||||||||||||||||||
Sales and other operating revenues | $ | 2,071,218 | $ | 2,120,373 | $ | 2,271,801 | $ | 2,542,115 | $ | 2,461,699 | |||||||||
Operating income | $ | 178,351 | $ | 181,647 | $ | 167,874 | $ | 246,151 | $ | 223,009 | |||||||||
Segment operating income (1) | $ | 188,484 | $ | 186,068 | $ | 167,225 | $ | 175,175 | $ | 232,757 | |||||||||
Net income | $ | 112,506 | $ | 118,148 | $ | 120,461 | $ | 155,155 | $ | 140,919 | |||||||||
Net income attributable to Universal Corporation (2) | $ | 106,304 | $ | 109,016 | $ | 114,608 | $ | 149,009 | $ | 132,750 | |||||||||
Earnings available to Universal Corporation common shareholders | $ | 20,890 | $ | 94,268 | $ | 99,748 | $ | 134,159 | $ | 117,900 | |||||||||
Return on beginning common shareholders’ equity | 1.7 | % | 8.2 | % | 8.6 | % | 12.8 | % | 12.1 | % | |||||||||
Earnings per share attributable to Universal Corporation common shareholders: | |||||||||||||||||||
Basic | $ | 0.89 | $ | 4.16 | $ | 4.33 | $ | 5.77 | $ | 5.05 | |||||||||
Diluted | $ | 0.88 | $ | 3.92 | $ | 4.06 | $ | 5.25 | $ | 4.66 | |||||||||
Financial Position at Year End | |||||||||||||||||||
Current ratio | 5.83 | 6.65 | 5.96 | 3.66 | 2.77 | ||||||||||||||
Total assets | $ | 2,123,405 | $ | 2,231,177 | $ | 2,186,476 | $ | 2,264,401 | $ | 2,285,987 | |||||||||
Long-term debt | $ | 368,733 | $ | 368,380 | $ | 368,027 | $ | 239,508 | $ | 180,060 | |||||||||
Working capital | $ | 1,293,403 | $ | 1,392,276 | $ | 1,329,770 | $ | 1,200,023 | $ | 1,094,764 | |||||||||
Total Universal Corporation shareholders’ equity | $ | 1,286,489 | $ | 1,414,222 | $ | 1,378,230 | $ | 1,378,230 | $ | 1,258,571 | |||||||||
General | |||||||||||||||||||
Ratio of earnings to fixed charges | 10.25 | 10.22 | 8.46 | 10.73 | 8.87 | ||||||||||||||
Ratio of earnings to combined fixed charges and preference dividends | 5.30 | 4.59 | 4.05 | 5.49 | 4.69 | ||||||||||||||
Number of common shareholders | 1,131 | 1,182 | 1,225 | 1,295 | 1,354 | ||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||
Basic | 23,433,860 | 22,683,290 | 23,035,920 | 23,238,978 | 23,354,793 | ||||||||||||||
Diluted | 23,770,088 | 27,825,491 | 28,221,264 | 28,392,033 | 28,478,058 | ||||||||||||||
Dividends per share of convertible perpetual preferred stock (annual) | $ | 50.63 | $ | 67.50 | $ | 67.50 | $ | 67.50 | $ | 67.50 | |||||||||
Dividends per share of common stock (annual) | $ | 2.14 | $ | 2.10 | $ | 2.06 | $ | 2.02 | $ | 1.98 | |||||||||
Book value per common share | $ | 50.90 | $ | 52.94 | $ | 50.95 | $ | 50.19 | $ | 44.79 |
• | Fiscal Year 2017 – $4.4 million restructuring and impairment costs, primarily related to our decision to close our tobacco processing facility in Hungary. We are now processing tobaccos sourced from Hungary in our facilities in Italy. The restructuring and impairment costs reduced net income by $2.8 million, or $0.10 per diluted share. In addition, all 218,490 outstanding shares of our Series B 6.75% Convertible Perpetual Preferred Stock were converted during the third and fourth quarters. Of the total shares converted, 107,418 shares were converted for cash, resulting in a reduction of retained earnings of approximately $74.4 million for the excess of the conversion cost over the carrying value of the shares. The reduction in retained earnings resulted in a corresponding one-time reduction of earnings available to common shareholders for purposes of determining the amounts reported for basic and diluted earnings per share for the year. The reduction in earnings available to common shareholders decreased diluted earnings per share by $2.99. |
• | Fiscal Year 2016 – a $3.4 million pretax gain arising from the acquisition of a joint venture partner's 50% ownership interest in a tobacco processing entity in Guatemala. The transaction increased our ownership interest in the entity to 100%, requiring us to consolidate the financial statements of the entity and to remeasure our original 50% ownership interest to fair value, resulting in the gain. In addition, we recorded restructuring and impairment costs of $2.4 million related to a decision to significantly scale back our operations in Zambia. The net effect of the gain and the restructuring and impairment costs increased pretax income by $1 million and net income by $0.7 million, or $0.02 per diluted share. |
• | Fiscal Year 2015 – a $12.7 million benefit to pretax earnings from the reversal of a valuation allowance on the remaining unused balance of the excise tax credits realized from the favorable outcome of litigation by our subsidiary in Brazil in fiscal year 2014. In addition, we recorded a consolidated income tax benefit of $8.0 million arising from the ability of our subsidiary, Deltafina S.p.A. ("Deltafina"), to pay a significant portion of the European Commission fine and related interest charges settled during the first quarter following the unsuccessful appeal of the case related to tobacco buying practices in Italy. The effect of those items was partially offset by restructuring costs of $4.9 million, primarily related to downsizing certain functions at our operations in Brazil and the decision to suspend our operations in Argentina. On a combined basis, the net effect of these items increased pretax income by $7.8 million and net income by $13.1 million, or $0.46 per diluted share. |
• | Fiscal Year 2014 – an $81.6 million pretax gain resulting from the favorable outcome of litigation by our operating subsidiary in Brazil related to previous years’ excise tax credits. In addition to the gain, we recorded restructuring costs of $6.7 million, primarily related to the closure of a tobacco processing facility in Brazil and the consolidation of these operations into our main processing facility there. The net effect of the gain and the restructuring costs increased pretax income by $74.9 million and net income by $48.7 million, or $1.72 per diluted share. |
• | Fiscal Year 2013 – $4.1 million in restructuring costs, primarily related to workforce reductions in Africa. The effect of those charges was a reduction in net income of $1.8 million, or $0.06 per diluted share. |
(in thousands of dollars) | Total | 2018 | 2019-2020 | 2021-2022 | After 2022 | |||||||||||||||
Notes payable and long-term debt (1) | $ | 479,404 | $ | 73,007 | $ | 173,012 | $ | 233,385 | $ | — | ||||||||||
Operating lease obligations | 50,774 | 11,512 | 15,706 | 9,859 | 13,697 | |||||||||||||||
Inventory purchase obligations: | ||||||||||||||||||||
Tobacco | 690,111 | 622,408 | 67,703 | — | — | |||||||||||||||
Agricultural materials | 43,103 | 43,103 | — | — | — | |||||||||||||||
Other purchase obligations | 5,314 | 5,314 | — | — | — | |||||||||||||||
Total | $ | 1,268,706 | $ | 755,344 | $ | 256,421 | $ | 243,244 | $ | 13,697 |
(1) | Includes interest payments. Interest payments on $429.1 million of variable rate debt were estimated based on rates as of March 31, 2017. The Company has entered into interest rate swaps that effectively convert the interest payments on the $370.0 million outstanding balance of its two bank term loans from variable to fixed. The fixed rate has been used to determine the contractual interest payments for all periods. |
• | Discount rate – The discount rate is based on investment yields on a hypothetical portfolio of actual long-term corporate bonds rated AA that align with the cash flows for our benefit obligations. |
• | Salary scale – The salary scale assumption is based on our long-term actual experience for salary increases, the near-term outlook, and expected inflation. |
• | Expected long-term return on plan assets – The expected long-term return on plan assets reflects asset allocations and investment strategy adopted by the Pension Investment Committee of the Board of Directors. |
• | Retirement and mortality rates – Retirement rates are based on actual plan experience along with our near-term outlook. Early retirement assumptions are based on our actual experience. Mortality rates are based on standard industry group annuity mortality tables which are updated to reflect projected improvements in life expectancy. |
• | Healthcare cost trend rates – For postretirement medical plan obligations and costs, we make assumptions on future inflationary increases in medical costs. These assumptions are based on our actual experience, along with third-party forecasts of long-term medical cost trends. |
(in thousands of dollars) | Effect on 2017 Projected Benefit Obligation Increase (Decrease) | Effect on 2018 Annual Expense Increase (Decrease) | ||||||
Changes in Assumptions for Pension Benefits | ||||||||
Discount Rate: | ||||||||
1% increase | $ | (26,653 | ) | $ | (2,597 | ) | ||
1% decrease | 32,337 | 2,872 | ||||||
Expected Long-Term Return on Plan Assets: | ||||||||
1% increase | — | (2,264 | ) | |||||
1% decrease | — | 2,264 | ||||||
Changes in Assumptions for Other Postretirement Benefits | ||||||||
Discount Rate: | ||||||||
1% increase | (3,055 | ) | (347 | ) | ||||
1% decrease | 3,603 | 165 | ||||||
Healthcare Cost Trend Rate: | ||||||||
1% increase | 769 | 38 | ||||||
1% decrease | (688 | ) | (37 | ) |
Fiscal Year Ended March 31, | |||||||||||
(in thousands of dollars, except share and per share data) | 2017 | 2016 | 2015 | ||||||||
Sales and other operating revenues | $ | 2,071,218 | $ | 2,120,373 | $ | 2,271,801 | |||||
Costs and expenses | |||||||||||
Cost of goods sold | 1,676,539 | 1,713,042 | 1,861,527 | ||||||||
Selling, general and administrative expenses | 211,969 | 226,685 | 250,186 | ||||||||
Other income | — | (3,390 | ) | (12,676 | ) | ||||||
Restructuring and impairment costs | 4,359 | 2,389 | 4,890 | ||||||||
Operating income | 178,351 | 181,647 | 167,874 | ||||||||
Equity in pretax earnings of unconsolidated affiliates | 5,774 | 5,422 | 7,137 | ||||||||
Interest income | 1,397 | 1,178 | 576 | ||||||||
Interest expense | 16,284 | 15,669 | 17,120 | ||||||||
Income before income taxes | 169,238 | 172,578 | 158,467 | ||||||||
Income taxes | 56,732 | 54,430 | 38,006 | ||||||||
Net income | 112,506 | 118,148 | 120,461 | ||||||||
Less: net income attributable to noncontrolling interests in subsidiaries | (6,202 | ) | (9,132 | ) | (5,853 | ) | |||||
Net income attributable to Universal Corporation | 106,304 | 109,016 | 114,608 | ||||||||
Dividends on Universal Corporation convertible perpetual preferred stock | (11,061 | ) | (14,748 | ) | (14,824 | ) | |||||
Cost in excess of carrying value on conversion or repurchase of convertible perpetual preferred stock | (74,353 | ) | — | (36 | ) | ||||||
Earnings available to Universal Corporation common shareholders | $ | 20,890 | $ | 94,268 | $ | 99,748 | |||||
Earnings per share attributable to Universal Corporation common shareholders: | |||||||||||
Basic | $ | 0.89 | $ | 4.16 | $ | 4.33 | |||||
Diluted | $ | 0.88 | $ | 3.92 | $ | 4.06 | |||||
Weighted average common shares outstanding: | |||||||||||
Basic | 23,433,860 | 22,683,290 | 23,035,920 | ||||||||
Diluted | 23,770,088 | 27,825,491 | 28,221,264 |
Fiscal Year Ended March 31, | |||||||||||
(in thousands of dollars) | 2017 | 2016 | 2015 | ||||||||
Net income | $ | 112,506 | $ | 118,148 | $ | 120,461 | |||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation, net of income taxes | (6,899 | ) | 3,934 | (22,625 | ) | ||||||
Foreign currency hedge, net of income taxes | (933 | ) | 2,509 | (2,603 | ) | ||||||
Interest rate hedge, net of income taxes | 8,395 | (5,015 | ) | (1,374 | ) | ||||||
Pension and other postretirement benefit plans, net of income taxes | 1,475 | 1,004 | (14,023 | ) | |||||||
Total other comprehensive income (loss), net of income taxes | 2,038 | 2,432 | (40,625 | ) | |||||||
Total comprehensive income | 114,544 | 120,580 | 79,836 | ||||||||
Less: comprehensive income attributable to noncontrolling interests | (5,449 | ) | (8,920 | ) | (5,890 | ) | |||||
Comprehensive income attributable to Universal Corporation | $ | 109,095 | $ | 111,660 | $ | 73,946 |
March 31, | |||||||
(in thousands of dollars) | 2017 | 2016 | |||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 283,993 | $ | 319,447 | |||
Accounts receivable, net | 439,288 | 428,659 | |||||
Advances to suppliers, net | 103,750 | 101,890 | |||||
Accounts receivable—unconsolidated affiliates | 2,373 | 2,316 | |||||
Inventories—at lower of cost or market: | |||||||
Tobacco | 565,943 | 637,132 | |||||
Other | 68,087 | 60,888 | |||||
Prepaid income taxes | 16,713 | 17,814 | |||||
Other current assets | 81,252 | 70,400 | |||||
Total current assets | 1,561,399 | 1,638,546 | |||||
Property, plant and equipment | |||||||
Land | 22,852 | 22,987 | |||||
Buildings | 266,802 | 264,838 | |||||
Machinery and equipment | 597,213 | 591,327 | |||||
886,867 | 879,152 | ||||||
Less accumulated depreciation | (569,527 | ) | (553,265 | ) | |||
317,340 | 325,887 | ||||||
Other assets | |||||||
Goodwill and other intangibles | 98,888 | 99,071 | |||||
Investments in unconsolidated affiliates | 78,457 | 82,441 | |||||
Deferred income taxes | 25,422 | 23,853 | |||||
Other noncurrent assets | 41,899 | 61,379 | |||||
244,666 | 266,744 | ||||||
Total assets | $ | 2,123,405 | $ | 2,231,177 |
March 31, | |||||||
(in thousands of dollars) | 2017 | 2016 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities | |||||||
Notes payable and overdrafts | $ | 59,133 | $ | 66,179 | |||
Accounts payable and accrued expenses | 153,515 | 120,527 | |||||
Accounts payable—unconsolidated affiliates | 7,231 | 8,343 | |||||
Customer advances and deposits | 11,007 | 16,438 | |||||
Accrued compensation | 32,007 | 27,593 | |||||
Income taxes payable | 5,103 | 7,190 | |||||
Current portion of long-term debt | — | — | |||||
Total current liabilities | 267,996 | 246,270 | |||||
Long-term debt | 368,733 | 368,380 | |||||
Pensions and other postretirement benefits | 80,689 | 92,177 | |||||
Other long-term liabilities | 31,424 | 41,794 | |||||
Deferred income taxes | 47,985 | 29,494 | |||||
Total liabilities | 796,827 | 778,115 | |||||
Shareholders’ equity | |||||||
Universal Corporation: | |||||||
Preferred stock: | |||||||
Series A Junior Participating Preferred Stock, no par value, 500,000 shares authorized, none issued or outstanding | — | — | |||||
Series B 6.75% Convertible Perpetual Preferred Stock, no par value, 220,000 shares authorized, no shares outstanding (218,490 shares issued and outstanding at March 31, 2016) | — | 211,562 | |||||
Common stock, no par value, 100,000,000 shares authorized, 25,274,506 shares issued and outstanding (22,717,735 at March 31, 2016) | 321,207 | 208,946 | |||||
Retained earnings | 1,034,841 | 1,066,064 | |||||
Accumulated other comprehensive loss | (69,559 | ) | (72,350 | ) | |||
Total Universal Corporation shareholders' equity | 1,286,489 | 1,414,222 | |||||
Noncontrolling interests in subsidiaries | 40,089 | 38,840 | |||||
Total shareholders' equity | 1,326,578 | 1,453,062 | |||||
Total liabilities and shareholders' equity | $ | 2,123,405 | $ | 2,231,177 |
Fiscal Year Ended March 31, | |||||||||||
(in thousands of dollars) | 2017 | 2016 | 2015 | ||||||||
Cash Flows From Operating Activities: | |||||||||||
Net income | $ | 112,506 | $ | 118,148 | $ | 120,461 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | 35,911 | 36,754 | 35,394 | ||||||||
Provision for losses (recoveries) on advances and guaranteed loans to suppliers | (857 | ) | 815 | 3,734 | |||||||
Inventory write-downs | 10,866 | 11,899 | 18,612 | ||||||||
Stock-based compensation expense | 6,475 | 5,206 | 6,230 | ||||||||
Foreign currency remeasurement loss (gain), net | 9,269 | 22,517 | 28,836 | ||||||||
Deferred income taxes | 16,626 | 15,046 | (13,662 | ) | |||||||
Equity in net income of unconsolidated affiliates, net of dividends | 396 | 156 | (1,075 | ) | |||||||
Gain on favorable outcome of excise tax case in Brazil | — | — | (12,676 | ) | |||||||
Fair value gain upon acquisition of partner's interest in joint venture | — | (3,390 | ) | — | |||||||
Restructuring and impairment costs | 4,359 | 2,389 | 4,890 | ||||||||
Other, net | (4,463 | ) | 13,204 | (7,342 | ) | ||||||
Changes in operating assets and liabilities, net: | |||||||||||
Accounts and notes receivable | (14,346 | ) | (2,806 | ) | 49,414 | ||||||
Inventories and other assets | 52,139 | (7,370 | ) | 37,751 | |||||||
Income taxes | (1,719 | ) | 1,437 | 5,680 | |||||||
Accounts payable and other accrued liabilities | 28,643 | (13,678 | ) | (63,257 | ) | ||||||
Customer advances and deposits | (5,490 | ) | (13,796 | ) | 14,397 | ||||||
Net cash provided by operating activities | 250,315 | 186,531 | 227,387 | ||||||||
Cash Flows From Investing Activities: | |||||||||||
Purchase of property, plant and equipment | (35,630 | ) | (47,153 | ) | (58,385 | ) | |||||
Purchase of partner's interest in joint venture, net of cash held by the business | — | (5,964 | ) | — | |||||||
Proceeds from sale of property, plant and equipment | 2,174 | 2,982 | 4,522 | ||||||||
Other, net | (398 | ) | (796 | ) | (141 | ) | |||||
Net cash used by investing activities | (33,854 | ) | (50,931 | ) | (54,004 | ) | |||||
Cash Flows From Financing Activities: | |||||||||||
Issuance (repayment) of short-term debt, net | (5,349 | ) | 4,880 | 2,618 | |||||||
Issuance of long-term debt | — | — | 370,000 | ||||||||
Repayment of long-term debt | — | — | (356,250 | ) | |||||||
Dividends paid to noncontrolling interests | (4,200 | ) | (4,449 | ) | (4,183 | ) | |||||
Issuance of common stock | — | — | 187 | ||||||||
Conversion/repurchase of convertible perpetual preferred stock | (178,365 | ) | — | (1,497 | ) | ||||||
Repurchase of common stock | — | — | (31,227 | ) | |||||||
Dividends paid on convertible perpetual preferred stock | (11,061 | ) | (14,748 | ) | (14,824 | ) | |||||
Dividends paid on common stock | (49,828 | ) | (47,389 | ) | (47,337 | ) | |||||
Debt issuance costs and other | (2,441 | ) | (2,940 | ) | (4,511 | ) | |||||
Net cash used by financing activities | (251,244 | ) | (64,646 | ) | (87,024 | ) | |||||
Effect of exchange rate changes on cash | (671 | ) | (290 | ) | (1,108 | ) | |||||
Net (decrease) increase in cash and cash equivalents | (35,454 | ) | 70,664 | 85,251 | |||||||
Cash and cash equivalents at beginning of year | 319,447 | 248,783 | 163,532 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 283,993 | $ | 319,447 | $ | 248,783 | |||||
Supplemental information—cash paid for: | |||||||||||
Interest | $ | 16,284 | $ | 15,704 | $ | 19,184 | |||||
Income taxes, net of refunds | $ | 37,294 | $ | 38,732 | $ | 46,044 |
Universal Corporation Shareholders | ||||||||||||||||||||||||
(in thousands of dollars) | Series B 6.75% Convertible Perpetual Preferred Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests | Total Shareholders' Equity | ||||||||||||||||||
Fiscal Year Ended March 31, 2017 | ||||||||||||||||||||||||
Balance at beginning of year | $ | 211,562 | $ | 208,946 | $ | 1,066,064 | $ | (72,350 | ) | $ | 38,840 | $ | 1,453,062 | |||||||||||
Changes in preferred and common stock | ||||||||||||||||||||||||
Conversion of Series B 6.75% convertible perpetual preferred stock for common stock | (107,550 | ) | 107,550 | — | — | — | — | |||||||||||||||||
Conversion of Series B 6.75% convertible perpetual preferred stock for cash | (104,012 | ) | — | — | — | — | (104,012 | ) | ||||||||||||||||
Accrual of stock-based compensation | — | 6,475 | — | — | — | 6,475 | ||||||||||||||||||
Withholding of shares from stock-based compensation for grantee income taxes | — | (2,440 | ) | — | — | — | (2,440 | ) | ||||||||||||||||
Dividend equivalents on restricted stock units (RSUs) | — | 676 | — | — | — | 676 | ||||||||||||||||||
Changes in retained earnings | ||||||||||||||||||||||||
Net income | — | — | 106,304 | — | 6,202 | 112,506 | ||||||||||||||||||
Cash dividends declared | ||||||||||||||||||||||||
Series B 6.75% convertible perpetual preferred stock ($50.63 per share) | — | — | (11,061 | ) | — | — | (11,061 | ) | ||||||||||||||||
Common stock ($2.14 per share) | — | — | (51,437 | ) | — | — | (51,437 | ) | ||||||||||||||||
Conversion of Series B 6.75% convertible perpetual preferred stock for cash | — | — | (74,353 | ) | — | — | (74,353 | ) | ||||||||||||||||
Dividend equivalents on restricted stock units (RSUs) | — | — | (676 | ) | — | — | (676 | ) | ||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||
Foreign currency translation, net of income taxes | — | — | — | (6,146 | ) | (753 | ) | (6,899 | ) | |||||||||||||||
Foreign currency hedge, net of income taxes | — | — | — | (933 | ) | — | (933 | ) | ||||||||||||||||
Interest rate hedge, net of income taxes | — | — | — | 8,395 | — | 8,395 | ||||||||||||||||||
Pension and other postretirement benefit plans, net of income taxes | — | — | — | 1,475 | — | 1,475 | ||||||||||||||||||
Other changes in noncontrolling interests | ||||||||||||||||||||||||
Dividends paid to noncontrolling shareholders | — | — | — | — | (4,200 | ) | (4,200 | ) | ||||||||||||||||
Balance at end of year | $ | — | $ | 321,207 | $ | 1,034,841 | $ | (69,559 | ) | $ | 40,089 | $ | 1,326,578 |
Universal Corporation Shareholders | ||||||||||||||||||||||||
(in thousands of dollars) | Series B 6.75% Convertible Perpetual Preferred Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests | Total Shareholders' Equity | ||||||||||||||||||
Fiscal Year Ended March 31, 2016 | ||||||||||||||||||||||||
Balance at beginning of year | $ | 211,562 | $ | 206,002 | $ | 1,020,155 | $ | (74,994 | ) | $ | 34,369 | $ | 1,397,094 | |||||||||||
Changes in preferred and common stock | ||||||||||||||||||||||||
Accrual of stock-based compensation | — | 5,206 | — | — | — | 5,206 | ||||||||||||||||||
Withholding of shares from stock-based compensation for grantee income taxes | — | (2,940 | ) | — | — | — | (2,940 | ) | ||||||||||||||||
Dividend equivalents on restricted stock units (RSUs) | — | 678 | — | — | — | 678 | ||||||||||||||||||
Changes in retained earnings | ||||||||||||||||||||||||
Net income | — | — | 109,016 | — | 9,132 | 118,148 | ||||||||||||||||||
Cash dividends declared | ||||||||||||||||||||||||
Series B 6.75% convertible perpetual preferred stock ($67.50 per share) | — | — | (14,748 | ) | — | — | (14,748 | ) | ||||||||||||||||
Common stock ($2.10 per share) | — | — | (47,681 | ) | — | — | (47,681 | ) | ||||||||||||||||
Dividend equivalents on restricted stock units (RSUs) | — | — | (678 | ) | — | — | (678 | ) | ||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||
Foreign currency translation, net of income taxes | — | — | — | 4,146 | (212 | ) | 3,934 | |||||||||||||||||
Foreign currency hedge, net of income taxes | — | — | — | 2,509 | — | 2,509 | ||||||||||||||||||
Interest rate hedge, net of income taxes | — | — | — | (5,015 | ) | — | (5,015 | ) | ||||||||||||||||
Pension and other postretirement benefit plans, net of income taxes | — | — | — | 1,004 | — | 1,004 | ||||||||||||||||||
Other changes in noncontrolling interests | ||||||||||||||||||||||||
Dividends paid to noncontrolling shareholders | — | — | — | — | (4,449 | ) | (4,449 | ) | ||||||||||||||||
Balance at end of year | $ | 211,562 | $ | 208,946 | $ | 1,066,064 | $ | (72,350 | ) | $ | 38,840 | $ | 1,453,062 |
Universal Corporation Shareholders | ||||||||||||||||||||||||
(in thousands of dollars) | Series B 6.75% Convertible Perpetual Preferred Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests | Total Shareholders' Equity | ||||||||||||||||||
Fiscal Year Ended March 31, 2015 | ||||||||||||||||||||||||
Balance at beginning of year | $ | 213,023 | $ | 206,446 | $ | 993,093 | $ | (34,332 | ) | $ | 32,662 | $ | 1,410,892 | |||||||||||
Changes in preferred and common stock | ||||||||||||||||||||||||
Repurchase of Series B 6.75% convertible perpetual preferred stock | (1,461 | ) | — | — | — | — | (1,461 | ) | ||||||||||||||||
Issuance of common stock | — | 187 | — | — | — | 187 | ||||||||||||||||||
Repurchase of common stock | — | (6,439 | ) | — | — | — | (6,439 | ) | ||||||||||||||||
Accrual of stock-based compensation | — | 6,230 | — | — | — | 6,230 | ||||||||||||||||||
Withholding of shares from stock-based compensation for grantee income taxes | — | (1,076 | ) | — | — | — | (1,076 | ) | ||||||||||||||||
Dividend equivalents on restricted stock units (RSUs) | — | 654 | — | — | — | 654 | ||||||||||||||||||
Changes in retained earnings | ||||||||||||||||||||||||
Net income | — | — | 114,608 | — | 5,853 | 120,461 | ||||||||||||||||||
Cash dividends declared | ||||||||||||||||||||||||
Series B 6.75% convertible perpetual preferred stock ($67.50 per share) | — | — | (14,824 | ) | — | — | (14,824 | ) | ||||||||||||||||
Common stock ($2.06 per share) | — | — | (47,244 | ) | — | — | (47,244 | ) | ||||||||||||||||
Repurchase of Series B 6.75% convertible perpetual preferred stock | — | — | (36 | ) | — | — | (36 | ) | ||||||||||||||||
Repurchase of common stock | — | — | (24,788 | ) | — | — | (24,788 | ) | ||||||||||||||||
Dividend equivalents on restricted stock units (RSUs) | — | — | (654 | ) | — | — | (654 | ) | ||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||
Foreign currency translation, net of income taxes | — | — | — | (22,662 | ) | 37 | (22,625 | ) | ||||||||||||||||
Foreign currency hedge, net of income taxes | — | — | — | (2,603 | ) | — | (2,603 | ) | ||||||||||||||||
Interest rate hedge, net of income taxes | — | — | — | (1,374 | ) | — | (1,374 | ) | ||||||||||||||||
Pension and other postretirement benefit plans, net of income taxes | — | — | — | (14,023 | ) | — | (14,023 | ) | ||||||||||||||||
Other changes in noncontrolling interests | ||||||||||||||||||||||||
Dividends paid to noncontrolling shareholders | — | — | — | — | (4,183 | ) | (4,183 | ) | ||||||||||||||||
Balance at end of year | $ | 211,562 | $ | 206,002 | $ | 1,020,155 | $ | (74,994 | ) | $ | 34,369 | $ | 1,397,094 |
Fiscal Year Ended March 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Preferred Shares Outstanding: | ||||||||
Series B 6.75% Convertible Perpetual Preferred Stock: | ||||||||
Balance at beginning of year | 218,490 | 218,490 | 219,999 | |||||
Conversion of convertible perpetual preferred stock for common stock | (111,072 | ) | — | — | ||||
Conversion of convertible perpetual preferred stock for cash | (107,418 | ) | — | — | ||||
Repurchase of convertible perpetual preferred stock | — | — | (1,509 | ) | ||||
Balance at end of year | — | 218,490 | 218,490 | |||||
Common Shares Outstanding: | ||||||||
Balance at beginning of year | 22,717,735 | 22,593,266 | 23,216,312 | |||||
Issuance of common stock | 69,653 | 124,469 | 96,947 | |||||
Conversion of convertible perpetual preferred stock for common stock | 2,487,118 | — | — | |||||
Repurchase of common stock | — | — | (719,993 | ) | ||||
Balance at end of year | 25,274,506 | 22,717,735 | 22,593,266 |
Fiscal Year Ended March 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Equity in pretax earnings reported in the consolidated statements of income | $ | 5,774 | $ | 5,422 | $ | 7,137 | |||||
Less: Equity in income taxes | (1,092 | ) | (2,156 | ) | (834 | ) | |||||
Equity in net income | 4,682 | 3,266 | 6,303 | ||||||||
Less: Dividends received on investments (1) | (5,078 | ) | (3,422 | ) | (5,228 | ) | |||||
Equity in net income, net of dividends, reported in the consolidated statements of cash flows | $ | (396 | ) | $ | (156 | ) | $ | 1,075 |
(1) | In accordance with the applicable accounting guidance, dividends received from unconsolidated affiliates accounted for on the equity method that represent a return on capital (i.e., a return of earnings on a cumulative basis) are presented as operating cash flows in the consolidated statements of cash flows. |
Fiscal Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Restructuring Costs: | ||||||||||||
Employee termination benefits | $ | 2,083 | $ | 1,629 | $ | 4,354 | ||||||
Other restructuring costs | — | 96 | 536 | |||||||||
2,083 | 1,725 | 4,890 | ||||||||||
Impairment Costs: | ||||||||||||
Property and equipment and farmer loans | 2,276 | 664 | — | |||||||||
Total restructuring and impairment costs | $ | 4,359 | $ | 2,389 | $ | 4,890 |
Employee Termination Benefits | Other Costs | Total | ||||||||||
Balance at April 1, 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 | |||||||||
Fiscal Year 2017 Activity: | ||||||||||||
Costs charged to expense | 2,083 | — | 2,083 | |||||||||
Payments | (1,861 | ) | (159 | ) | (2,020 | ) | ||||||
Balance at March 31, 2017 | $ | 301 | $ | 43 | $ | 344 |
Fiscal Year Ended March 31, | |||||||||||
(in thousands, except share and per share data) | 2017 | 2016 | 2015 | ||||||||
Basic Earnings Per Share | |||||||||||
Numerator for basic earnings per share | |||||||||||
Net income attributable to Universal Corporation | $ | 106,304 | $ | 109,016 | $ | 114,608 | |||||
Less: Dividends on convertible perpetual preferred stock | (11,061 | ) | (14,748 | ) | (14,824 | ) | |||||
Less: Cost in excess of carrying value on conversion or repurchase of convertible perpetual preferred stock | (74,353 | ) | — | (36 | ) | ||||||
Earnings available to Universal Corporation common shareholders for calculation of basic earnings per share | 20,890 | 94,268 | 99,748 | ||||||||
Denominator for basic earnings per share | |||||||||||
Weighted average shares outstanding | 23,433,860 | 22,683,290 | 23,035,920 | ||||||||
Basic earnings per share | $ | 0.89 | $ | 4.16 | $ | 4.33 | |||||
Diluted Earnings Per Share | |||||||||||
Numerator for diluted earnings per share | |||||||||||
Earnings available to Universal Corporation common shareholders | $ | 20,890 | $ | 94,268 | $ | 99,748 | |||||
Add: Dividends on convertible perpetual preferred stock (if conversion assumed) | — | 14,748 | 14,824 | ||||||||
Add: Cost in excess of carrying value on conversion or repurchase of convertible perpetual preferred stock (if dilutive) | — | — | 36 | ||||||||
Earnings available to Universal Corporation common shareholders for calculation of diluted earnings per share | 20,890 | 109,016 | 114,608 | ||||||||
Denominator for diluted earnings per share | |||||||||||
Weighted average shares outstanding | 23,433,860 | 22,683,290 | 23,035,920 | ||||||||
Effect of dilutive securities (if conversion or exercise assumed) | |||||||||||
Convertible perpetual preferred stock | — | 4,853,268 | 4,843,309 | ||||||||
Employee share-based awards | 336,228 | 288,933 | 342,035 | ||||||||
Denominator for diluted earnings per share | 23,770,088 | 27,825,491 | 28,221,264 | ||||||||
Diluted earnings per share | $ | 0.88 | $ | 3.92 | $ | 4.06 |
Fiscal Year Ended March 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Potentially dilutive securities | — | 133,600 | 156,200 | ||||||||
Weighted-average exercise price | $ | — | $ | 62.66 | $ | 61.83 |
Fiscal Year Ended March 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Current | |||||||||||
United States | $ | 3,422 | $ | 5,371 | $ | 4,126 | |||||
State and local | 147 | 1,116 | 657 | ||||||||
Foreign | 36,537 | 32,897 | 46,885 | ||||||||
40,106 | 39,384 | 51,668 | |||||||||
Deferred | |||||||||||
United States | 5,434 | 5,780 | 3,352 | ||||||||
State and local | 561 | (445 | ) | 159 | |||||||
Foreign | 10,631 | 9,711 | (17,173 | ) | |||||||
16,626 | 15,046 | (13,662 | ) | ||||||||
Total | $ | 56,732 | $ | 54,430 | $ | 38,006 |
Fiscal Year Ended March 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes, net of federal benefit | 0.3 | 0.3 | 0.3 | |||||
Dividends received from deconsolidated operations | (2.3 | ) | (1.5 | ) | (1.3 | ) | ||
Effect of exchange rate changes on deferred income taxes | 0.4 | (1.6 | ) | (4.9 | ) | |||
Tax benefit arising from payment of a portion of a fine by a subsidiary | — | — | (5.0 | ) | ||||
Other, including changes in liabilities recorded for uncertain tax positions | 0.1 | (0.7 | ) | (0.1 | ) | |||
Effective income tax rate | 33.5 | % | 31.5 | % | 24.0 | % |
Fiscal Year Ended March 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
United States | $ | 31,468 | $ | 37,877 | $ | 27,181 | |||||
Foreign | 137,770 | 134,701 | 131,286 | ||||||||
Total | $ | 169,238 | $ | 172,578 | $ | 158,467 |
March 31, | |||||||
2017 | 2016 | ||||||
Liabilities | |||||||
Foreign withholding taxes | $ | 44,702 | $ | 39,770 | |||
Undistributed earnings | 24,629 | 19,553 | |||||
Goodwill | 30,851 | 30,851 | |||||
All other | 11,015 | 10,424 | |||||
Total deferred tax liabilities | $ | 111,197 | $ | 100,598 | |||
Assets | |||||||
Employee benefit plans | $ | 38,804 | $ | 43,362 | |||
Reserves and accruals | 11,756 | 12,911 | |||||
Deferred income | 4,672 | 3,938 | |||||
Currency translation losses of foreign subsidiaries | 13,244 | 9,939 | |||||
Local currency exchange losses of foreign subsidiaries | 3,669 | 3,597 | |||||
Foreign tax credit carryforward | 2,799 | 4,664 | |||||
All other | 14,327 | 16,546 | |||||
Total deferred tax assets | 89,271 | 94,957 | |||||
Valuation allowance | (636 | ) | — | ||||
Net deferred tax assets | $ | 88,635 | $ | 94,957 |
Fiscal Year Ended March 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Continuing operations | $ | 56,732 | $ | 54,430 | $ | 38,006 | |||||
Other comprehensive income | 1,503 | 1,423 | (21,900 | ) | |||||||
Direct adjustments to shareholders' equity | — | (805 | ) | (932 | ) | ||||||
Total | $ | 58,235 | $ | 55,048 | $ | 15,174 |
Fiscal Year Ended March 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Liability for uncertain tax positions, beginning of year | $ | 2,407 | $ | 2,894 | $ | 3,809 | |||||
Additions: | |||||||||||
Related to tax positions for the current year | 94 | 98 | 272 | ||||||||
Related to tax positions for prior years | — | — | — | ||||||||
Reductions: | |||||||||||
Due to lapses of statutes of limitations | (112 | ) | (215 | ) | (478 | ) | |||||
Related to tax positions for prior years | (3 | ) | — | (143 | ) | ||||||
Effect of currency rate movement | 40 | (370 | ) | (566 | ) | ||||||
Liability for uncertain tax positions, end of year | $ | 2,426 | $ | 2,407 | $ | 2,894 |
March 31, | |||||||
2017 | 2016 | ||||||
Senior bank term loans | $ | 370,000 | $ | 370,000 | |||
Total outstanding | 370,000 | 370,000 | |||||
Less: current portion | — | — | |||||
Less: unamortized debt issuance costs | (1,267 | ) | (1,620 | ) | |||
Long-term debt | $ | 368,733 | $ | 368,380 |
Fiscal Year Ended March 31, | ||||||||||||
(in millions) | 2017 | 2016 | 2015 | |||||||||
Tobacco purchases | $ | 70.7 | $ | 43.1 | $ | 105.6 | ||||||
Processing costs | 24.0 | 13.2 | 22.9 | |||||||||
Total | $ | 94.7 | $ | 56.3 | $ | 128.5 |
Fiscal Year Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Cash Flow Hedges - Interest Rate Swap Agreements | ||||||||||||
Derivative | ||||||||||||
Effective Portion of Hedge | ||||||||||||
Gain (loss) recorded in accumulated other comprehensive loss | $ | 8,999 | $ | (12,824 | ) | $ | (4,044 | ) | ||||
Gain (loss) reclassified from accumulated other comprehensive loss into earnings | $ | (3,916 | ) | $ | (5,108 | ) | $ | (1,929 | ) | |||
Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings | Interest expense | |||||||||||
Ineffective Portion of Hedge | ||||||||||||
Gain (loss) recognized in earnings | $ | — | $ | — | $ | — | ||||||
Location of gain (loss) recognized in earnings | Selling, general and administrative expenses | |||||||||||
Hedged Item | ||||||||||||
Description of hedged item | Floating rate interest payments on term loans | |||||||||||
Cash Flow Hedges - Forward Foreign Currency Exchange Contracts | ||||||||||||
Derivative | ||||||||||||
Effective Portion of Hedge | ||||||||||||
Gain (loss) recorded in accumulated other comprehensive loss | $ | 454 | $ | 1,774 | $ | 1,410 | ||||||
Gain (loss) reclassified from accumulated other comprehensive loss into earnings | $ | 945 | $ | 993 | $ | 3,099 | ||||||
Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings | Cost of goods sold | |||||||||||
Ineffective Portion and Early De-designation of Hedges | ||||||||||||
Gain (loss) recognized in earnings | $ | 246 | $ | 685 | $ | 257 | ||||||
Location of gain (loss) recognized in earnings | Selling, general and administrative expenses | |||||||||||
Hedged Item | ||||||||||||
Description of hedged item | Forecast purchases of tobacco in Brazil | |||||||||||
Derivatives Not Designated as Hedges - Forward Foreign Currency Exchange Contracts | ||||||||||||
Gain (loss) recognized in earnings | $ | (2,591 | ) | $ | 5,973 | $ | 13,178 | |||||
Location of gain (loss) recognized in earnings | Selling, general and administrative expenses |
Derivatives in a Fair Value Asset Position | Derivatives in a Fair Value Liability Position | |||||||||||||||||||
Balance Sheet Location | Fair Value as of March 31, | Balance Sheet Location | Fair Value as of March 31, | |||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||||
Interest rate swap agreements | Other non-current assets | $ | 2,149 | $ | — | Other long-term liabilities | $ | — | $ | 10,766 | ||||||||||
Forward foreign currency exchange contracts | Other current assets | 56 | 475 | Accounts payable and accrued expenses | 55 | — | ||||||||||||||
Total | $ | 2,205 | $ | 475 | $ | 55 | $ | 10,766 | ||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 917 | $ | 297 | Accounts payable and accrued expenses | $ | 120 | $ | 5 | ||||||||||
Total | $ | 917 | $ | 297 | $ | 120 | $ | 5 |
Level | Description | |
1 | quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date; | |
2 | quoted prices in active markets for similar assets or liabilities, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability; and | |
3 | unobservable inputs for the asset or liability. |
March 31, 2017 | ||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||
NAV | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets | ||||||||||||||||||||
Money market funds | $ | 137,145 | $ | — | $ | — | $ | — | $ | 137,145 | ||||||||||
Trading securities associated with deferred compensation plans | — | 17,726 | — | — | 17,726 | |||||||||||||||
Interest rate swap agreements | — | — | 2,149 | — | 2,149 | |||||||||||||||
Forward foreign currency exchange contracts | — | — | 973 | — | 973 | |||||||||||||||
Total financial assets measured and reported at fair value | $ | 137,145 | $ | 17,726 | $ | 3,122 | $ | — | $ | 157,993 | ||||||||||
Liabilities | ||||||||||||||||||||
Guarantees of bank loans to tobacco growers | $ | — | $ | — | $ | — | $ | 1,177 | $ | 1,177 | ||||||||||
Forward foreign currency exchange contracts | — | — | 175 | — | 175 | |||||||||||||||
Total financial liabilities measured and reported at fair value | $ | — | $ | — | $ | 175 | $ | 1,177 | $ | 1,352 | ||||||||||
March 31, 2016 | ||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||
NAV | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets | ||||||||||||||||||||
Money market funds | $ | 116,618 | $ | — | $ | — | $ | — | $ | 116,618 | ||||||||||
Trading securities associated with deferred compensation plans | — | 17,817 | — | — | 17,817 | |||||||||||||||
Forward foreign currency exchange contracts | — | — | 772 | — | 772 | |||||||||||||||
Total financial assets measured and reported at fair value | $ | 116,618 | $ | 17,817 | $ | 772 | $ | — | $ | 135,207 | ||||||||||
Liabilities | ||||||||||||||||||||
Guarantees of bank loans to tobacco growers | $ | — | $ | — | $ | — | $ | 1,628 | $ | 1,628 | ||||||||||
Interest rate swap agreements | — | — | 10,766 | — | 10,766 | |||||||||||||||
Forward foreign currency exchange contracts | — | — | 5 | — | 5 | |||||||||||||||
Total financial liabilities measured and reported at fair value | $ | — | $ | — | $ | 10,771 | $ | 1,628 | $ | 12,399 |
Fiscal Year Ended March 31, | ||||||||
2017 | 2016 | |||||||
Balance at beginning of year | $ | 1,628 | $ | 1,674 | ||||
Payments under the guarantees and transfers to allowance for loss on direct loans to farmers (removal of prior crop year loans from the portfolio) | (2,550 | ) | (1,826 | ) | ||||
Provision for loss or transfers from allowance for loss on direct loans to farmers (addition of current crop year loans) | 1,854 | 1,834 | ||||||
Change in discount rate and estimated collection period | 59 | 106 | ||||||
Currency remeasurement | 186 | (160 | ) | |||||
Balance at end of year | $ | 1,177 | $ | 1,628 |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||
Discount rates: | |||||||||||||||||
Benefit cost for plan year | 4.10 | % | 3.80 | % | 4.50 | % | 3.80 | % | 3.70 | % | 4.30 | % | |||||
Benefit obligation at end of plan year | 4.10 | % | 4.10 | % | 3.80 | % | 3.90 | % | 3.80 | % | 3.70 | % | |||||
Expected long-term return on plan assets: | |||||||||||||||||
Benefit cost for plan year | 7.00 | % | 7.25 | % | 7.75 | % | 3.00 | % | 3.00 | % | 4.30 | % | |||||
Salary scale: | |||||||||||||||||
Benefit cost for plan year | 4.00 | % | 4.50 | % | 4.50 | % | 4.00 | % | 4.50 | % | 4.50 | % | |||||
Benefit obligation at end of plan year | 4.00 | % | 4.00 | % | 4.50 | % | 4.00 | % | 4.00 | % | 4.50 | % | |||||
Healthcare cost trend rate | N/A | N/A | N/A | 6.70 | % | 7.00 | % | 7.20 | % |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Actuarial present value of benefit obligation: | |||||||||||||||
Accumulated benefit obligation | $ | 266,764 | $ | 273,479 | |||||||||||
Projected benefit obligation | 269,250 | 275,505 | $ | 36,786 | $ | 37,225 | |||||||||
Change in projected benefit obligation: | |||||||||||||||
Projected benefit obligation, beginning of year | $ | 275,505 | $ | 288,908 | $ | 37,225 | $ | 40,863 | |||||||
Service cost | 5,382 | 5,953 | 247 | 286 | |||||||||||
Interest cost | 10,441 | 10,037 | 1,535 | 1,539 | |||||||||||
Effect of discount rate change | 489 | (10,036 | ) | (191 | ) | (402 | ) | ||||||||
Foreign currency exchange rate changes | (1,111 | ) | 330 | 286 | (215 | ) | |||||||||
Settlements | (10,955 | ) | — | — | — | ||||||||||
Other | 4,108 | (486 | ) | 766 | (1,104 | ) | |||||||||
Benefit payments | (14,609 | ) | (19,201 | ) | (3,082 | ) | (3,742 | ) | |||||||
Projected benefit obligation, end of year | $ | 269,250 | $ | 275,505 | $ | 36,786 | $ | 37,225 | |||||||
Change in plan assets: | |||||||||||||||
Plan assets at fair value, beginning of year | $ | 217,859 | $ | 224,553 | $ | 1,565 | $ | 2,115 | |||||||
Actual return on plan assets | 16,450 | 61 | 71 | 69 | |||||||||||
Employer contributions | 10,676 | 12,504 | 4,500 | 3,123 | |||||||||||
Settlements | (10,322 | ) | — | — | — | ||||||||||
Foreign currency exchange rate changes | 97 | (58 | ) | — | — | ||||||||||
Benefit payments | (14,609 | ) | (19,201 | ) | (3,082 | ) | (3,742 | ) | |||||||
Plan assets at fair value, end of year | $ | 220,151 | $ | 217,859 | $ | 3,054 | $ | 1,565 | |||||||
Funded status: | |||||||||||||||
Funded status of the plans, end of year | $ | (49,099 | ) | $ | (57,646 | ) | $ | (33,732 | ) | $ | (35,660 | ) |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Non-current asset (included in other noncurrent assets) | $ | 1,710 | $ | 2,044 | $ | — | $ | — | |||||||
Current liability (included in accounts payable and accrued expenses) | (1,106 | ) | (630 | ) | (2,746 | ) | (2,543 | ) | |||||||
Non-current liability (reported as pensions and other postretirement benefits) | (49,703 | ) | (59,060 | ) | (30,986 | ) | (33,117 | ) | |||||||
Amounts recognized in the consolidated balance sheets | $ | (49,099 | ) | $ | (57,646 | ) | $ | (33,732 | ) | $ | (35,660 | ) |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
For plans with a projected benefit obligation in excess of plan assets: | |||||||||||||||
Aggregate projected benefit obligation (PBO) | $ | 260,826 | $ | 270,058 | $ | 36,786 | $ | 37,225 | |||||||
Aggregate fair value of plan assets | 210,017 | 210,368 | 3,054 | 1,565 | |||||||||||
For plans with an accumulated benefit obligation in excess of plan assets: | |||||||||||||||
Aggregate accumulated benefit obligation (ABO) | 258,424 | 268,087 | N/A | N/A | |||||||||||
Aggregate fair value of plan assets | 210,017 | 210,368 | N/A | N/A |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Fiscal Year Ended March 31, | Fiscal Year Ended March 31, | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||
Service cost | $ | 5,382 | $ | 5,953 | $ | 5,099 | $ | 247 | $ | 286 | $ | 347 | |||||||||||
Interest cost | 10,441 | 10,037 | 11,215 | 1,535 | 1,539 | 1,699 | |||||||||||||||||
Expected return on plan assets | (15,154 | ) | (15,110 | ) | (15,493 | ) | (42 | ) | (58 | ) | (102 | ) | |||||||||||
Curtailment gain | — | — | — | — | — | (1,465 | ) | ||||||||||||||||
Settlement gain | (912 | ) | — | — | — | — | — | ||||||||||||||||
Net amortization and deferral | 4,576 | 4,394 | 6,169 | (394 | ) | (431 | ) | (671 | ) | ||||||||||||||
Net periodic benefit cost | $ | 4,333 | $ | 5,274 | $ | 6,990 | $ | 1,346 | $ | 1,336 | $ | (192 | ) |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Change in net actuarial loss (gain): | |||||||||||||||
Net actuarial loss (gain), beginning of year | $ | 79,299 | $ | 81,544 | $ | (7,234 | ) | $ | (6,402 | ) | |||||
Losses (gains) arising during the year | 2,313 | 4,787 | 554 | (1,263 | ) | ||||||||||
Amortization included in net periodic benefit cost during the year | (7,567 | ) | (7,032 | ) | 394 | 431 | |||||||||
Net actuarial loss (gain), end of year | 74,045 | 79,299 | (6,286 | ) | (7,234 | ) | |||||||||
Change in prior service cost (benefit): | |||||||||||||||
Prior service cost (benefit), beginning of year | (15,061 | ) | (17,630 | ) | (108 | ) | — | ||||||||
Prior service cost (benefit) arising during the year | — | 111 | (4 | ) | (108 | ) | |||||||||
Amortization included in net periodic benefit cost during the year | 2,991 | 2,458 | — | — | |||||||||||
Prior service cost (benefit), end of year | (12,070 | ) | (15,061 | ) | (112 | ) | (108 | ) | |||||||
Total amounts in accumulated other comprehensive loss at end of year, before income taxes | $ | 61,975 | $ | 64,238 | $ | (6,398 | ) | $ | (7,342 | ) |
Actual Allocation | |||||||||||||
Target Allocation | March 31, | ||||||||||||
Major Asset Category | Range | 2017 | 2016 | ||||||||||
Equity securities | 26.0 | % | 16 | % | - | 36% | 31.9 | % | 22.4 | % | |||
Fixed income securities (1) | 69.0 | % | 59 | % | - | 79% | 61.7 | % | 71.5 | % | |||
Alternative investments | 5.0 | % | 0 | % | - | 10% | 6.4 | % | 6.1 | % | |||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
(1) | Actual amounts include high yield securities and cash balances held for the payment of benefits. |
Fiscal Year | Pension Benefits | Other Postretirement Benefits | |||||
2018 | $ | 15,031 | $ | 3,142 | |||
2019 | 22,040 | 3,129 | |||||
2020 | 20,162 | 3,015 | |||||
2021 | 16,727 | 2,930 | |||||
2022 | 17,019 | 2,797 | |||||
2023 - 2027 | 88,929 | 12,554 |
• | Equity securities: Investments in equity securities through actively-traded mutual funds are valued based on the net asset values of the units held in the respective funds, which are determined by obtaining quoted prices on nationally recognized securities exchanges. These securities are classified as Level 1. |
• | Fixed income securities: Fixed income investments that are held through mutual funds are valued based on the net asset values of the units held in the respective funds, which are determined by obtaining quoted prices on nationally recognized securities exchanges. These securities are classified as Level 1. Other fixed income investments are valued at an estimated price that a dealer would pay for a similar security on the valuation date using observable market inputs and are classified as Level 2. These market inputs may include yield curves for similarly rated securities. Small amounts of cash are held in common collective trusts. Fixed income securities also include insurance assets, which are valued based on an actuarial calculation. Those securities are classified as Level 3. |
• | Alternative investments: Real estate assets are valued using valuation models that incorporate income and market approaches, including external appraisals, to derive fair values. The hedge fund allocation is a fund of hedge funds and is valued by the manager based on the net asset value of each fund. These models use significant unobservable inputs and are classified as Level 3 within the fair value hierarchy. |
March 31, 2017 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Equity securities | $ | 65,637 | $ | — | $ | — | $ | 65,637 | |||||||
Fixed income securities (1) | 128,215 | 10,134 | 3,072 | 141,421 | |||||||||||
Alternative investments | — | — | 13,094 | 13,094 | |||||||||||
Total investments | $ | 193,852 | $ | 10,134 | $ | 16,166 | $ | 220,152 |
March 31, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Equity securities | $ | 43,807 | $ | — | $ | — | $ | 43,807 | |||||||
Fixed income securities (1) | 141,218 | 7,491 | 13,382 | 162,091 | |||||||||||
Alternative investments | — | — | 11,961 | 11,961 | |||||||||||
Total investments | $ | 185,025 | $ | 7,491 | $ | 25,343 | $ | 217,859 |
(1) | Includes high yield securities and cash and cash equivalent balances. |
Fiscal Year Ended March 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Common Stock | |||||||||||
Number of shares repurchased | — | — | 719,993 | ||||||||
Cost of shares repurchased (in thousands of dollars) | $ | — | $ | — | $ | 31,227 | |||||
Weighted-average cost per share | $ | — | $ | — | $ | 43.37 | |||||
Series B 6.75% Convertible Perpetual Preferred Stock | |||||||||||
Number of shares repurchased | — | — | 1,509 | ||||||||
Cost of shares repurchased (in thousands of dollars) | $ | — | $ | — | $ | 1.497 | |||||
Weighted-average cost per share | $ | — | $ | — | $ | 992.27 |
Shares | Weighted-Average Exercise Price | |||||
Fiscal Year Ended March 31, 2015: | ||||||
Outstanding at beginning of year | 257,340 | $ | 54.83 | |||
Exercised | (63,539 | ) | 38.50 | |||
Cancelled/expired | (24,200 | ) | 62.66 | |||
Outstanding at end of year | 169,601 | 59.82 | ||||
Fiscal Year Ended March 31, 2016: | ||||||
Exercised | (6,200 | ) | 51.32 | |||
Cancelled/expired | (11,200 | ) | 62.66 | |||
Outstanding at end of year | 152,201 | 59.96 | ||||
Fiscal Year Ended March 31, 2017: | ||||||
Exercised | (135,334 | ) | 61.72 | |||
Cancelled/expired | (16,867 | ) | 45.82 | |||
Outstanding at end of year | — | $ | — |
Fiscal Year Ended March 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Total intrinsic value of stock options and SARs exercised | $ | 555 | $ | 26 | $ | 1,091 | |||||
Total fair value of SARs vested | $ | — | $ | — | $ | 375 |
RSUs | Restricted Stock | PSAs | ||||||||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | |||||||||||||||
Fiscal Year Ended March 31, 2015: | ||||||||||||||||||||
Unvested at beginning of year | 293,180 | $ | 44.33 | 48,100 | $ | 42.33 | 149,387 | $ | 41.76 | |||||||||||
Granted | 94,539 | 51.86 | — | — | 57,580 | 46.41 | ||||||||||||||
Vested | (123,322 | ) | 42.02 | — | — | (50,092 | ) | 31.95 | ||||||||||||
Forfeited | — | — | — | — | (3,400 | ) | 53.56 | |||||||||||||
Unvested at end of year | 264,397 | 48.10 | 48,100 | 42.33 | 153,475 | 45.58 | ||||||||||||||
Fiscal Year Ended March 31, 2016: | ||||||||||||||||||||
Granted | 80,932 | 51.62 | — | — | 86,212 | 45.06 | ||||||||||||||
Vested | (42,384 | ) | 41.64 | — | — | (85,387 | ) | 38.14 | ||||||||||||
Unvested at end of year | 302,945 | 49.95 | 48,100 | 42.33 | 154,300 | 48.13 | ||||||||||||||
Fiscal Year Ended March 31, 2017: | ||||||||||||||||||||
Granted | 74,776 | 55.27 | — | — | 58,805 | 49.17 | ||||||||||||||
Vested | (51,544 | ) | 44.57 | (17,900 | ) | 42.26 | (52,230 | ) | 53.56 | |||||||||||
Forfeited | (539 | ) | 55.63 | — | — | (525 | ) | 49.17 | ||||||||||||
Unvested at end of year | 325,638 | $ | 52.01 | 30,200 | $ | 42.37 | 160,350 | $ | 46.86 |
Fiscal Year Ended March 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Total stock-based compensation expense | $ | 6,475 | $ | 5,206 | $ | 6,230 | |||||
Income tax benefit recorded on stock-based compensation expense | $ | 2,266 | $ | 1,822 | $ | 2,181 |
March 31, | |||||||
2017 | 2016 | ||||||
Flue-Cured and Burley Leaf Tobacco Operations: | |||||||
North America | $ | 111,520 | $ | 85,985 | |||
Other Regions | 294,799 | 303,932 | |||||
Subtotal | 406,319 | 389,917 | |||||
Other Tobacco Operations | 32,969 | 38,742 | |||||
Consolidated accounts receivable, net | $ | 439,288 | $ | 428,659 |
Sales and Other Operating Revenues | Operating Income | ||||||||||||||||||||||
Fiscal Year Ended March 31, | Fiscal Year Ended March 31, | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Flue-Cured and Burley Leaf Tobacco Operations: | |||||||||||||||||||||||
North America | $ | 416,438 | $ | 361,827 | $ | 305,028 | $ | 35,151 | $ | 31,147 | $ | 31,060 | |||||||||||
Other Regions (1) | 1,422,991 | 1,538,971 | 1,739,781 | 143,349 | 143,596 | 125,839 | |||||||||||||||||
Subtotal | 1,839,429 | 1,900,798 | 2,044,809 | 178,500 | 174,743 | 156,899 | |||||||||||||||||
Other Tobacco Operations (2) | 231,789 | 219,575 | 226,992 | 9,984 | 11,325 | 10,326 | |||||||||||||||||
Segment total | 2,071,218 | 2,120,373 | 2,271,801 | 188,484 | 186,068 | 167,225 | |||||||||||||||||
Deduct: Equity in pretax earnings of unconsolidated affiliates (3) | (5,774 | ) | (5,422 | ) | (7,137 | ) | |||||||||||||||||
Restructuring and impairment costs (4) | (4,359 | ) | (2,389 | ) | (4,890 | ) | |||||||||||||||||
Add: Other income (5) | — | 3,390 | 12,676 | ||||||||||||||||||||
Consolidated total | $ | 2,071,218 | $ | 2,120,373 | $ | 2,271,801 | $ | 178,351 | $ | 181,647 | $ | 167,874 | |||||||||||
Segment Assets | Goodwill | ||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Flue-Cured and Burley Leaf Tobacco Operations: | |||||||||||||||||||||||
North America | $ | 357,406 | $ | 364,003 | $ | 281,449 | $ | — | $ | — | $ | — | |||||||||||
Other Regions (1) | 1,465,109 | 1,548,517 | 1,607,846 | 97,159 | 97,318 | 97,372 | |||||||||||||||||
Subtotal | 1,822,515 | 1,912,520 | 1,889,295 | 97,159 | 97,318 | 97,372 | |||||||||||||||||
Other Tobacco Operations (2) | 300,890 | 318,657 | 297,180 | 1,644 | 1,713 | 1,713 | |||||||||||||||||
Segment and consolidated totals | $ | 2,123,405 | $ | 2,231,177 | $ | 2,186,475 | $ | 98,803 | $ | 99,031 | $ | 99,085 | |||||||||||
Depreciation and Amortization | Capital Expenditures | ||||||||||||||||||||||
Fiscal Year Ended March 31, | Fiscal Year Ended March 31, | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Flue-Cured and Burley Leaf Tobacco Operations: | |||||||||||||||||||||||
North America | $ | 4,626 | $ | 4,314 | $ | 4,284 | $ | 4,202 | $ | 2,282 | $ | 5,814 | |||||||||||
Other Regions (1) | 26,106 | 29,187 | 28,827 | 21,619 | 25,122 | 39,303 | |||||||||||||||||
Subtotal | 30,732 | 33,501 | 33,111 | 25,821 | 27,404 | 45,117 | |||||||||||||||||
Other Tobacco Operations (2) | 5,238 | 4,143 | 4,213 | 9,809 | 19,749 | 13,268 | |||||||||||||||||
Segment and consolidated totals | $ | 35,970 | $ | 37,644 | $ | 37,324 | $ | 35,630 | $ | 47,153 | $ | 58,385 |
(1) | Includes South America, Africa, Europe, and Asia regions, as well as inter-region eliminations. |
(2) | Includes Dark Air-Cured, Oriental, and Special Services, as well as intercompany eliminations. Sales and other operating revenues, goodwill, depreciation and amortization, and capital expenditures include limited amounts or no amounts for Oriental because the business is accounted for on the equity method and its financial results consist principally of equity in the pretax earnings of the unconsolidated affiliate. The investment in the unconsolidated affiliate is included in segment assets and was approximately $78.1 million, $81.8 million, and $74.9 million, at March 31, 2017, 2016, and 2015, respectively. |
(3) | Equity in pretax earnings of unconsolidated affiliates is included in segment operating income (Other Tobacco Operations segment), but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. |
(4) | Restructuring and impairment costs are excluded from segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 2). |
(5) | Other income in fiscal year 2016 represents a gain from remeasuring to fair value the Company's original 50% ownership in Procesadora Unitab, S.A., a tobacco processing joint venture in Guatemala, upon acquiring the 50% interest held by the Company's joint venture partner (See Note 13). Other income in fiscal year 2015 represents the reversal of a valuation allowance on IPI excise tax credits in Brazil (See Note 13). |
Geographic Data | Sales and Other Operating Revenues | ||||||||||
Fiscal Year Ended March 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Belgium | $ | 320,735 | $ | 371,580 | $ | 336,396 | |||||
United States | 320,731 | 275,147 | 290,950 | ||||||||
Germany | 123,649 | 155,180 | 170,338 | ||||||||
China | 137,855 | 135,032 | 174,872 | ||||||||
Netherlands | 91,266 | 121,767 | 113,297 | ||||||||
Russia | 84,784 | 109,559 | 126,652 | ||||||||
All other countries | 992,198 | 952,108 | 1,059,296 | ||||||||
Consolidated total | $ | 2,071,218 | $ | 2,120,373 | $ | 2,271,801 | |||||
Long-Lived Assets | |||||||||||
March 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
United States | $ | 85,145 | $ | 84,072 | $ | 70,929 | |||||
Brazil | 134,074 | 133,727 | 135,980 | ||||||||
Mozambique | 50,311 | 53,069 | 55,733 | ||||||||
All other countries | 146,698 | 154,090 | 141,893 | ||||||||
Consolidated total | $ | 416,228 | $ | 424,958 | $ | 404,535 |
Fiscal Year Ended March 31, | ||||||||||||
(in thousands of dollars) | 2017 | 2016 | 2015 | |||||||||
Foreign currency translation: | ||||||||||||
Balance at beginning of year | $ | (26,992 | ) | $ | (31,138 | ) | $ | (8,476 | ) | |||
Other comprehensive income (loss) attributable to Universal Corporation: | ||||||||||||
Net gain (loss) on foreign currency translation (net of tax (expense) benefit of $3,715, $(2,119), and $12,181) | (6,899 | ) | 3,934 | (22,625 | ) | |||||||
Less: Net loss (gain) on foreign currency translation attributable to noncontrolling interests | 753 | 212 | (37 | ) | ||||||||
Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes | (6,146 | ) | 4,146 | (22,662 | ) | |||||||
Balance at end of year | $ | (33,138 | ) | $ | (26,992 | ) | $ | (31,138 | ) | |||
Foreign currency hedge: | ||||||||||||
Balance at beginning of year | $ | 675 | $ | (1,834 | ) | $ | 769 | |||||
Other comprehensive income (loss) attributable to Universal Corporation: | ||||||||||||
Net gain (loss) on derivative instruments (net of tax (expense) benefit of $991, $(1,060), and $2,304) | (1,841 | ) | 1,969 | (4,280 | ) | |||||||
Reclassification of net loss to earnings (net of tax benefit of $(489), $(291), and $(903)) (1) | 908 | 540 | 1,677 | |||||||||
Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes | (933 | ) | 2,509 | (2,603 | ) | |||||||
Balance at end of year | $ | (258 | ) | $ | 675 | $ | (1,834 | ) | ||||
Interest rate hedge: | ||||||||||||
Balance at beginning of year | $ | (6,997 | ) | $ | (1,982 | ) | $ | (608 | ) | |||
Other comprehensive income (loss) attributable to Universal Corporation: | ||||||||||||
Net gain (loss) on derivative instruments (net of tax (expense) benefit of $(3,150), $4,489, and $1,416) | 5,849 | (8,335 | ) | (2,628 | ) | |||||||
Reclassification of net loss to earnings (net of tax benefit of $(1,370), $(1,788), and $(675))(2) | 2,546 | 3,320 | 1,254 | |||||||||
Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes | 8,395 | (5,015 | ) | (1,374 | ) | |||||||
Balance at end of year | $ | 1,398 | $ | (6,997 | ) | $ | (1,982 | ) | ||||
Pension and other postretirement benefit plans: | ||||||||||||
Balance at beginning of year | $ | (39,036 | ) | $ | (40,040 | ) | $ | (26,017 | ) | |||
Other comprehensive income (loss) attributable to Universal Corporation: | ||||||||||||
Net losses arising during the year (net of tax benefit of $751, $1,035, and $9,719)(3) | (1,395 | ) | (1,921 | ) | (18,049 | ) | ||||||
Amortization included in earnings (net of tax benefit of $(1,546), $(1,576), and $(2,163)) (4) | 2,870 | 2,925 | 4,026 | |||||||||
Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes | 1,475 | 1,004 | (14,023 | ) | ||||||||
Balance at end of year | $ | (37,561 | ) | $ | (39,036 | ) | $ | (40,040 | ) | |||
Total accumulated other comprehensive income (loss) at end of year | $ | (69,559 | ) | $ | (72,350 | ) | $ | (74,994 | ) |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Fiscal Year Ended March 31, 2017 | |||||||||||||||
Operating Results: | |||||||||||||||
Sales and other operating revenues | $ | 295,475 | $ | 456,942 | $ | 668,771 | $ | 650,030 | |||||||
Gross profit | 52,197 | 87,844 | 135,453 | 119,185 | |||||||||||
Net income (loss) | (7,504 | ) | 26,498 | 57,062 | 36,450 | ||||||||||
Net income (loss) attributable to Universal Corporation | (5,476 | ) | 25,264 | 53,647 | 32,869 | ||||||||||
Earnings (loss) available to Universal Corporation common shareholders after dividends on convertible perpetual preferred stock | (9,163 | ) | 21,577 | 49,960 | (41,484 | ) | |||||||||
Earnings (loss) per share attributable to Universal Corporation common shareholders: | |||||||||||||||
Basic | (0.40 | ) | 0.95 | 2.17 | (1.64 | ) | |||||||||
Diluted | (0.40 | ) | 0.90 | 1.92 | (1.64 | ) | |||||||||
Cash Dividends Declared: | |||||||||||||||
Per share of convertible perpetual preferred stock | 16.88 | 16.87 | 16.88 | — | |||||||||||
Per share of common stock | 0.53 | 0.53 | 0.54 | 0.54 | |||||||||||
Market Price Range of Common Stock: | |||||||||||||||
High | 57.75 | 61.69 | 64.20 | 83.35 | |||||||||||
Low | 52.26 | 55.29 | 52.40 | 63.30 | |||||||||||
Fiscal Year Ended March 31, 2016 | |||||||||||||||
Operating Results: | |||||||||||||||
Sales and other operating revenues | $ | 275,419 | $ | 456,382 | $ | 584,592 | $ | 803,980 | |||||||
Gross profit | 48,389 | 98,094 | 119,906 | 140,942 | |||||||||||
Net income (loss) | (6,125 | ) | 25,064 | 46,615 | 52,594 | ||||||||||
Net income (loss) attributable to Universal Corporation | (5,947 | ) | 22,465 | 44,534 | 47,964 | ||||||||||
Earnings (loss) available to Universal Corporation common shareholders after dividends on convertible perpetual preferred stock | (9,634 | ) | 18,778 | 40,847 | 44,277 | ||||||||||
Earnings (loss) per share attributable to Universal Corporation common shareholders: | |||||||||||||||
Basic | (0.43 | ) | 0.83 | 1.80 | 1.95 | ||||||||||
Diluted | (0.43 | ) | 0.81 | 1.60 | 1.72 | ||||||||||
Cash Dividends Declared: | |||||||||||||||
Per share of convertible perpetual preferred stock | 16.88 | 16.87 | 16.88 | 16.87 | |||||||||||
Per share of common stock | 0.52 | 0.52 | 0.53 | 0.53 | |||||||||||
Market Price Range of Common Stock: | |||||||||||||||
High | 57.76 | 58.41 | 57.72 | 57.27 | |||||||||||
Low | 46.80 | 46.98 | 49.70 | 51.49 |
Note: | Earnings per share amounts for each fiscal year may not equal the total of the four quarterly amounts due to differences in weighted-average outstanding shares for the respective periods and to the fact that the Company’s convertible perpetual preferred stock may be antidilutive for some periods. |
• | Second Quarter – Restructuring and impairment costs totaling $3.7 million, primarily related to the Company's decision to close its tobacco processing facility in Hungary. The Company is now processing tobaccos sourced from Hungary in its factories in Italy. The costs incurred for the change in operations in Hungary included statutory employee termination benefits and impairment charges related to certain property and equipment. Those costs reduced net income attributable to Universal Corporation by $2.4 million and diluted earnings per share by $0.09. |
• | Fourth Quarter – The conversion of 107,418 shares of the Company's Series B 6.75% Convertible Perpetual Preferred Stock for cash resulted in a one-time reduction of retained earnings of approximately $74.4 million during the quarter ending March 31, 2017, representing the excess of the conversion cost over the carrying value of those preferred shares. The reduction in retained earnings resulted in a corresponding one-time reduction of earnings available to common shareholders for purposes of determining the amounts reported for basic and diluted earnings per share for those periods. The reduction in earnings available to common shareholders decreased diluted earnings per share for the quarter by $2.90. |
• | First Quarter – Restructuring and impairment costs totaling $2.4 million, related to a decision to significantly scale back the Company's operations in Zambia. The 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. The restructuring and impairment costs reduced net income attributable to Universal Corporation by $1.6 million and diluted earnings per share by $0.06. |
• | Third Quarter – A $3.4 million pretax gain arising from the acquisition of a joint venture partner's 50% ownership interest in a tobacco processing entity in Guatemala. The transaction increased the Company's ownership interest in the entity to 100%, requiring consolidation of the financial statements of the entity and remeasurement of the Company's original 50% ownership interest to fair value, resulting in the gain. The gain increased net income attributable to Universal Corporation by $2.2 million and diluted earnings per share by $0.08. |
Name and Age | Position | Business Experience During Past The Five Years | ||
G. C. Freeman, III (53) | Chairman, President, and Chief Executive Officer | Mr. Freeman was elected Chairman of the Board in August 2008, Chief Executive Officer effective April 2008, President in December 2006, and Vice President in November 2005. Mr. Freeman served as General Counsel and Secretary from February 2001 until November 2005 and has been employed with the Company since 1997. | ||
A. L. Hentschke (47) | Senior Vice President and Chief Operating Officer | Mr. Hentschke was elected Senior Vice President and Chief Operating Officer in April 2015. From January 2013 to April 2015, he served as Executive Vice President of Universal Leaf. Tobacco Company, Incorporated ("Universal Leaf"). From November 2009 to January 2013, Mr. Hentschke served as President and Chief Executive Officer of Universal Leaf Tabacos, Limitada, the Company's operating subsidiary in Brazil. He has been employed with the Company and its affiliates since 1991. | ||
D. C. Moore (61) | Senior Vice President and Chief Financial Officer | Mr. Moore was elected Senior Vice President and Chief Financial Officer effective September 2008. Mr. Moore served as Vice President and Chief Administrative Officer from April 2006 until September 2008, as Senior Vice President of Universal Leaf from September 2005 until April 2006, and as Managing Director of Universal Leaf International SA from April 2002 until September 2005. He has been employed with the Company since 1978. | ||
T. G. Broome (63) | Executive Vice President and Sales Director, Universal Leaf Tobacco Company, Inc. | Mr. Broome was elected Executive Vice President and Sales Director, Universal Leaf, in October 2012. From April 2011 through October 2012, Mr. Broome served as Executive Vice President. From September 1998 through March 2011, Mr. Broome served as Senior Vice President-Sales. He has been employed with the Company since 1994. | ||
P. D. Wigner (48) | Vice President, General Counsel and Secretary | Mr. Wigner was elected Vice President in August 2007, and General Counsel and Secretary in November 2005 and also served as Chief Compliance Officer from November 2007 until September 2012. Mr. Wigner served as Senior Counsel of Universal Leaf from November 2004 until November 2005. He has been employed with the Company since 2003. | ||
J. A. Huffman (55) | Senior Vice President, Information and Planning, Universal Leaf Tobacco Company, Inc. | Mr. Huffman was elected Senior Vice President, Information and Planning, Universal Leaf, in August 2007. From September 2003 to August 2007, Mr. Huffman served as Senior Vice President. From September 2002 to September 2003, Mr. Huffman served as Vice President and Controller. He has been employed with the Company since 1996. | ||
C. C. Formacek (57) | Vice President and Treasurer | Ms. Formacek was elected Vice President and Treasurer effective April 2012. Ms. Formacek served as Treasurer of Universal Leaf from April 2011 through March 2012. She joined the Company in September 2009 and served as Assistant Treasurer of Universal Leaf from that time through March 2011. | ||
R. M. Peebles (59) | Vice President and Controller | Mr. Peebles was elected Vice President and Controller in April 2011. Mr. Peebles joined the Company in September 2003 and served as Controller from that time through March 2011. |
(a) | The following are filed as part of this Annual Report: |
1. | Financial Statements. |
2. | Financial Statement Schedules. |
3. | Exhibits. The exhibits are listed in the Exhibit Index immediately following the signature pages to this Annual Report. |
(b) | Exhibits |
Description | Balance at Beginning of Year | Net Additions (Reversals) Charged to Expense | Additions Charged to Other Accounts | Deductions (1) | Balance at End of Year | |||||||||||||||
(in thousands of dollars) | ||||||||||||||||||||
Fiscal Year Ended March 31, 2015: | ||||||||||||||||||||
Allowance for doubtful accounts (deducted from accounts receivable) | $ | 6,536 | $ | 1,341 | $ | — | $ | (2,395 | ) | $ | 5,482 | |||||||||
Allowance for supplier accounts (deducted from advances to suppliers and other noncurrent assets) | 46,078 | 3,734 | — | (15,139 | ) | 34,673 | ||||||||||||||
Allowance for recoverable taxes (deducted from other current assets and other noncurrent assets) | 29,504 | 1,855 | — | (8,141 | ) | 23,218 | ||||||||||||||
Fiscal Year Ended March 31, 2016: | ||||||||||||||||||||
Allowance for doubtful accounts (deducted from accounts receivable) | $ | 5,482 | $ | 6,970 | $ | — | $ | (3,353 | ) | $ | 9,099 | |||||||||
Allowance for supplier accounts (deducted from advances to suppliers and other noncurrent assets) | 34,673 | 815 | — | (6,623 | ) | 28,865 | ||||||||||||||
Allowance for recoverable taxes (deducted from other current assets and other noncurrent assets) | 23,218 | 1,755 | — | (6,221 | ) | 18,752 | ||||||||||||||
Fiscal Year Ended March 31, 2017: | ||||||||||||||||||||
Allowance for doubtful accounts (deducted from accounts receivable) | $ | 9,099 | $ | (5,071 | ) | $ | — | $ | (81 | ) | $ | 3,947 | ||||||||
Allowance for supplier accounts (deducted from advances to suppliers and other noncurrent assets) | 28,865 | (857 | ) | — | (934 | ) | 27,074 | |||||||||||||
Allowance for recoverable taxes (deducted from other current assets and other noncurrent assets) | 18,752 | (3,392 | ) | — | (2,808 | ) | 12,552 | |||||||||||||
(1) | Includes direct write-offs of assets and currency remeasurement. |
UNIVERSAL CORPORATION | |||
May 26, 2017 | |||
By: | /s/ GEORGE C. FREEMAN, III | ||
George C. Freeman, III Chairman, President, and Chief Executive Officer |
Signature | Title | Date | ||
/s/ GEORGE C. FREEMAN, III | Chairman, President, Chief Executive Officer, and Director | May 26, 2017 | ||
George C. Freeman, III | (Principal Executive Officer) | |||
/s/ DAVID C. MOORE | Senior Vice President and Chief Financial Officer | May 26, 2017 | ||
David C. Moore | (Principal Financial Officer) | |||
/s/ ROBERT M. PEEBLES | Vice President and Controller | May 26, 2017 | ||
Robert M. Peebles | (Principal Accounting Officer) | |||
/s/ JOHN B. ADAMS, JR. | Director | May 26, 2017 | ||
John B. Adams, Jr. | ||||
/s/ DIANA F. CANTOR | Director | May 26, 2017 | ||
Diana F. Cantor | ||||
/s/ LENNART R. FREEMAN | Director | May 26, 2017 | ||
Lennart R. Freeman | ||||
/s/ THOMAS H. JOHNSON | Director | May 26, 2017 | ||
Thomas H. Johnson | ||||
/s/ MICHAEL T. LAWTON | Director | May 26, 2017 | ||
Michael T. Lawton | ||||
/s/ EDDIE N. MOORE, JR. | Director | May 26, 2017 | ||
Eddie N. Moore, Jr. | ||||
/s/ ROBERT C. SLEDD | Director | May 26, 2017 | ||
Robert C. Sledd | ||||
3.1 | Amended and Restated Articles of Incorporation, effective August 9, 2011 (incorporated herein by reference to the Registrant’s Current Report on Form 8-K Registration Statement filed August 9, 2011, File No. 001-00652). | ||
3.2 | Amended and Restated Bylaws (as of August 3, 2010) (incorporated herein by reference to the Registrant’s Current Report on Form 8-K dated August 3, 2010, File No. 001-00652). | ||
4.1 | Indenture between the Registrant and Chemical Bank, as trustee (incorporated herein by reference to the Registrant’s Current Report on Form 8-K dated February 25, 1991, File No. 001-00652). | ||
4.2 | Specimen Common Stock Certificate (incorporated herein by reference to the Registrant’s Amendment No. 1 to Registrant’s Form 8-A Registration Statement, dated May 7, 1999, File No. 001-00652). | ||
10.1 | Form of Universal Leaf Tobacco Company, Incorporated Executive Life Insurance Agreement (incorporated herein by reference to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 30, 1994, File No. 001-00652). | ||
10.2 | Universal Leaf Tobacco Company, Incorporated Deferred Income Plan (incorporated herein by reference to the Registrant’s Report on Form 8-K, dated February 8, 1991, File No. 001-00652). | ||
10.3 | Universal Leaf Tobacco Company, Incorporated Benefit Replacement Plan (incorporated herein by reference to the Registrant’s Report on Form 8-K, dated February 8, 1991, File No. 001-00652). | ||
10.4 | Universal Leaf Tobacco Company, Incorporated 1994 Benefit Replacement Plan (incorporated herein by reference to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 30, 1994, File No. 001-00652). | ||
10.5 | Universal Leaf Tobacco Company, Incorporated 1996 Benefit Restoration Plan (incorporated herein by reference to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 30, 1996, File No. 001-00652). | ||
10.6 | Universal Leaf Tobacco Company, Incorporated 1994 Deferred Income Plan, amended and restated as of July 1, 1998 (incorporated herein by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1998, File No. 001-00652). | ||
10.7 | Universal Corporation Outside Directors’ Deferred Income Plan, restated as of October 1, 1998 (incorporated herein by reference to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1998, File No. 001-00652). | ||
10.8 | Revised Form of Universal Corporation Non-Employee Director Restricted Stock Agreement (incorporated herein by reference to the Registrant’s Current Report on Form 8-K dated June 9, 2010, File No. 001-00652). | ||
10.9 | Form Change of Control Agreement (incorporated herein by reference to the Registrant’s Current Report on Form 8-K filed November 10, 2008, File No. 001-00652). | ||
10.10 | Universal Corporation Director’s Charitable Award Program (incorporated herein by reference to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 30, 1998, File No. 001-00652). | ||
10.11 | Universal Corporation 1997 Executive Stock Plan, as amended on August 7, 2003 (incorporated herein by reference to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 30, 2003, File No. 001-00652). | ||
10.12 | Universal Corporation 2002 Executive Stock Plan, as amended on August 7, 2003 (incorporated herein by reference to the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 30, 2003, File No. 001-00652). | ||
10.13 | Form of Restricted Stock Units Award Agreement (incorporated herein by reference to the Registrant’s Current Report on Form 8-K filed November 10, 2008, File No. 001-00652). | ||
10.14 | Universal Corporation 2007 Amended and Restated Stock Incentive Plan effective August 7, 2012 (incorporated herein by reference to Exhibit A to the Registrant’s definitive proxy statement filed June 28, 2012, File No. 001-00652). | ||
10.15 | Universal Corporation Executive Officer Annual Incentive Plan, as amended (incorporated herein by reference to the Registrant's definitive proxy statement filed June 25, 2014, File No. 001-00652). | ||
10.16 | Form of Universal Corporation 2010 Restricted Stock Units Agreement with Schedule of Awards to named executive officers (incorporated herein by reference to the Registrant’s Annual Report on Form 10-K for the fiscal year ended March 31, 2010, File No. 001-00652). | ||
10.17 | Universal Leaf Tobacco Company, Incorporated Deferred Income Plan III, amended and restated as of December 31, 2008 (incorporated herein by reference to the Registrant's Annual Report on Form 10-K for the fiscal year ended March 31, 2010, File No. 001-00652). | ||
10.18 | Universal Corporation Outside Directors' Deferred Income Plan III, amended and restated as of December 31, 2008, and amended as of February 1, 2010 (incorporated herein by reference to the Registrant's Annual Report on Form 10-K for the fiscal year ended March 31, 2010, File No. 001-00652). | ||
10.19 | Form of Universal Corporation 2011 Restricted Stock Units Agreement (incorporated herein by reference to the Registrant's Annual Report on Form 10-K for the fiscal year ended March 31, 2011, File No. 001-00652). | ||
10.20 | Form of Universal Corporation Performance Share Award Agreement (incorporated herein by reference to the Registrant's Annual Report on Form 10-K for the fiscal year ended March 31, 2011, File No. 001-00652). | ||
10.21 | Credit Agreement dated December 30, 2014 among the Company, JPMorgan Chase Bank, N.A., as Administrative Agent, SunTrust Bank and AgFirst Farm Credit Bank, as Co-Syndication Agents and Keybank National Association and Capital One, National Association, as Co-Documentation Agents (incorporated herein by reference to the Registrant’s Current Report on Form 8-K dated December 30, 2014 (December 23, 2014), File No. 001-00652). | ||
12 | Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preference Dividends.* | ||
21 | Subsidiaries of the Registrant.* | ||
23 | Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.* | ||
31.1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | ||
31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | ||
32.1 | Statement of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350.* | ||
32.2 | Statement of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350.* | ||
101 | Interactive Data File (Annual Report on Form 10-K for the fiscal year ended March 31, 2017, furnished in XBRL (eXtensible Business Reporting Language)).* | ||
Attached as Exhibit 101 to this report are the following documents formatted in XBRL: (i) the Consolidated Statements of Income for each of the three years ended March 31, 2017, 2016 and 2015, (ii) the Consolidated Statements of Comprehensive Income for each of the three years ended March 31, 2017, 2016 and 2015, (iii) the Consolidated Balance Sheets at March 31, 2017 and 2016, (iv) the Consolidated Statement of Cash Flows for each of the three years ended March 31, 2017, 2016 and 2015, (v) the Consolidated Statement of Shareholders’ Equity for each of the three years ended March 31, 2017, 2016 and 2015, (vi) the Notes to Consolidated Financial Statements, (vii) Schedule II - Valuation and Qualifying Accounts. |
Fiscal Year Ended March 31, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(in thousands, except for ratios) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Pretax income before equity in pretax earnings (loss) of unconsolidated affiliates | $ | 163,464 | $ | 167,156 | $ | 151,330 | $ | 226,793 | $ | 201,650 | ||||||||||
Fixed charges (net of interest capitalized) | 18,222 | 18,499 | 20,993 | 23,974 | 25,646 | |||||||||||||||
Distribution of earnings from unconsolidated affiliates | 5,078 | 3,422 | 5,228 | 6,508 | 123 | |||||||||||||||
Total Earnings | $ | 186,764 | $ | 189,077 | $ | 177,551 | $ | 257,275 | $ | 227,419 | ||||||||||
Fixed Charges and Preference Dividends | ||||||||||||||||||||
Interest expense | $ | 16,284 | $ | 15,669 | $ | 17,120 | $ | 20,307 | $ | 22,013 | ||||||||||
Interest capitalized | — | — | — | — | — | |||||||||||||||
Amortization of premiums, discounts, and debt issuance cost(1) | — | 851 | 1,600 | 1,302 | 1,343 | |||||||||||||||
Interest component of rent expense | 1,938 | 1,979 | 2,273 | 2,365 | 2,290 | |||||||||||||||
Total Fixed Charges | 18,222 | 18,499 | 20,993 | 23,974 | 25,646 | |||||||||||||||
Dividends on convertible perpetual preferred stock (pretax) | 17,017 | 22,689 | 22,806 | 22,846 | 22,846 | |||||||||||||||
Total Fixed Charges and Preference Dividends | $ | 35,239 | $ | 41,188 | $ | 43,799 | $ | 46,820 | $ | 48,492 | ||||||||||
Ratio of Earnings to Fixed Charges | 10.25 | 10.22 | 8.46 | 10.73 | 8.87 | |||||||||||||||
Ratio of Earnings to Combined Fixed Charges and Preference Dividends | 5.30 | 4.59 | 4.05 | 5.49 | 4.69 |
Subsidiary Name | Organized under law of |
Aviation and Regional Services, Ltd. | Malawi |
B.V. Beleggings-en Beheermaatschappij "De Amstel" | Netherlands |
CA Bautz GmbH | Germany |
Carolina Innovative Food Ingredients, Inc. | Virginia |
Carolina Recycled Ag Materials, LLC | Virginia |
Casa Export, Limited | Virginia |
CATSCO, Inc. | British Virgin Isles |
CJSC Universal Tabak | Russia |
Continental Tobacco S.A. | Switzerland |
B.V. Deli-HTL Tabak Maatschappij | Netherlands |
Deltafina, S.r.l. | Italy |
Deutsch-hollandische Tabakgesellschaft mbH | Germany |
Ermor Tabarama-Tabacos do Brasil Ltda. | Brazil |
Gebrueder Kulenkampff GmbH | Germany |
Global Laboratory Services, Inc. | Virginia |
Harkema Services, Inc. | Virginia |
Indoco International B.V. | Netherlands |
Inetab-Kaubeck, SRL | Dominican Republic |
Itofina, S.A. | Switzerland |
J.P. Taylor Company, L.L.C. | Virginia |
L’Agricola, S.r.l. | Italy |
Lancaster Leaf Tobacco Company of Pennsylvania, Inc. | Virginia |
Limbe Leaf Tobacco Company Limited | Malawi |
Mozambique Leaf Tobacco, Limitada | Mozambique |
Procesadora Unitab, S.A. | Guatemala |
PT Pandu Sata Utama | Indonesia |
PT Tempu Rejo | Indonesia |
Tabacalera San Fernando S.R.L. | Paraguay |
Tabacos Del Pacifico Norte, S.A. De C.V. | Mexico |
TAES, S.L. | Spain |
Tanzania Leaf Tobacco Co., Ltd. | Tanzania |
Tanzania Tobacco Processors Ltd. | Tanzania |
ULT Support Services India Private Ltd. | India |
Ultoco, S.A. | Switzerland |
Ultoco Limited | British Virgin Islands |
Ultoco Services, S.A. | Switzerland |
Universal Finance B.V. | Netherlands |
Universal Innovations Corporation, Inc. | Virginia |
Universal Leaf Africa (Pty) Ltd. | South Africa |
Universal Leaf (Asia) Pte Ltd. | Singapore |
Universal Leaf Far East Ltd. | British Virgin Islands |
Universal Leaf Germany GmbH | Germany |
Universal Leaf Nicaragua, S.A. | Nicaragua |
Universal Leaf North America U. S., Inc. | North Carolina |
Universal Leaf Philippines, Inc. | Philippines |
Universal Leaf South Africa (Pty) Limited | South Africa |
Universal Leaf Tabacos Ltda. | Brazil |
Universal Leaf Tabacos S.R.L. | Argentina |
Universal Leaf Tobacco Company, Inc. | Virginia |
Universal Leaf Tobacco Hungary Private Limited Company | Hungary |
Universal Leaf Tobacco International, Inc. | Virginia |
Universal Leaf Tobacco Poland Sp. z o.o. | Poland |
Virginia Tobacco Company, Inc. | Virginia |
Zambia Leaf Tobacco Co., Ltd. | Zambia |
Zimleaf Holdings (Private) Limited | Zimbabwe |
Zimbabwe Leaf Tobacco Company (Private) Limited | Zimbabwe |
(1) | Registration Statements (Form S-3 No. 333-200433) of Universal Corporation, and |
1. | I have reviewed this annual report on Form 10-K of Universal Corporation for the period ended March 31, 2017; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ GEORGE C. FREEMAN, III | |
George C. Freeman, III | |
Chairman, President, and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Universal Corporation for the period ended March 31, 2017; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ DAVID C. MOORE | |
David C. Moore | |
Senior Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ GEORGE C. FREEMAN, III | |
George C. Freeman, III | |
Chairman, President, and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ DAVID C. MOORE | |
David C. Moore | |
Senior Vice President and Chief Financial Officer |
Document And Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
May 19, 2017 |
Sep. 30, 2016 |
|
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | UNIVERSAL CORP /VA/ | ||
Entity Central Index Key | 0000102037 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 25,274,506 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 1,326 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated Statements Of Income - USD ($) $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
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Income Statement [Abstract] | ||||||||
Sales and other operating revenues | $ 2,071,218 | $ 2,120,373 | $ 2,271,801 | |||||
Costs and expenses | ||||||||
Cost of goods sold | 1,676,539 | 1,713,042 | 1,861,527 | |||||
Selling, general and administrative expenses | 211,969 | 226,685 | 250,186 | |||||
Other income | [1] | 0 | (3,390) | (12,676) | ||||
Restructuring and impairment costs | 4,359 | 2,389 | 4,890 | |||||
Operating income | 178,351 | 181,647 | 167,874 | |||||
Equity in pretax earnings of unconsolidated affiliates | [2] | 5,774 | 5,422 | 7,137 | ||||
Interest income | 1,397 | 1,178 | 576 | |||||
Interest expense | 16,284 | 15,669 | 17,120 | |||||
Income before income taxes | 169,238 | 172,578 | 158,467 | |||||
Income taxes | 56,732 | 54,430 | 38,006 | |||||
Net income | 112,506 | 118,148 | 120,461 | |||||
Less: net income attributable to noncontrolling interests in subsidiaries | (6,202) | (9,132) | (5,853) | |||||
Net income attributable to Universal Corporation | 106,304 | 109,016 | 114,608 | |||||
Dividends on Universal Corporation convertible perpetual preferred stock | (11,061) | (14,748) | (14,824) | |||||
Cost in excess of carrying value on repurchase or conversion of convertible perpetual preferred stock | (74,353) | 0 | (36) | |||||
Earnings available to Universal Corporation common shareholders | $ 20,890 | $ 94,268 | $ 99,748 | |||||
Earnings per share attributable to Universal Corporation common shareholders: | ||||||||
Basic | $ 0.89 | $ 4.16 | $ 4.33 | |||||
Diluted | $ 0.88 | $ 3.92 | $ 4.06 | |||||
Weighted average common shares outstanding: | ||||||||
Basic | 23,433,860 | 22,683,290 | 23,035,920 | |||||
Diluted | 23,770,088 | 27,825,491 | 28,221,264 | |||||
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Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Net income | $ 112,506 | $ 118,148 | $ 120,461 |
Other comprehensive income (loss): | |||
Foreign currency translation, net of income taxes | (6,899) | 3,934 | (22,625) |
Pension and other postretirement benefit plans, net of income taxes | 1,475 | 1,004 | (14,023) |
Total other comprehensive income (loss), net of income taxes | 2,038 | 2,432 | (40,625) |
Total comprehensive income | 114,544 | 120,580 | 79,836 |
Less: comprehensive income attributable to noncontrolling interests | (5,449) | (8,920) | (5,890) |
Comprehensive income attributable to Universal Corporation | 109,095 | 111,660 | 73,946 |
Foreign currency hedge, net of income taxes [Member] | |||
Other comprehensive income (loss): | |||
Hedges, net of income taxes | (933) | 2,509 | (2,603) |
Interest rate hedge, net of income taxes [Member] | |||
Other comprehensive income (loss): | |||
Hedges, net of income taxes | $ 8,395 | $ (5,015) | $ (1,374) |
Consolidated Balance Sheets (Parenthetical) - shares |
Mar. 31, 2017 |
Mar. 31, 2016 |
---|---|---|
Preferred stock, shares authorized | 5,000,000 | |
Common stock, shares authorized | 100,000,000 | |
Common stock, shares outstanding | 25,274,506 | |
Common Stock [Member] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 25,274,506 | 22,717,735 |
Common stock, shares outstanding | 25,274,506 | 22,717,735 |
Series A Junior Participating Preferred Stock [Member] | ||
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series B 6.75% Convertible Perpetual Preferred Stock [Member] | ||
Preferred stock, shares authorized | 220,000 | 220,000 |
Preferred stock, shares issued | 0 | 218,490 |
Preferred stock, shares outstanding | 0 | 218,490 |
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
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Statement of Stockholders' Equity [Abstract] | |||||||||||
Series B 6.75% convertible perpetual preferred stock, cash dividends declared per share | $ 0.00 | $ 16.88 | $ 16.87 | $ 16.88 | $ 16.87 | $ 16.88 | $ 16.87 | $ 16.88 | $ 50.63 | $ 67.50 | $ 67.50 |
Common stock, cash dividends declared per share | $ 0.54 | $ 0.54 | $ 0.53 | $ 0.53 | $ 0.53 | $ 0.53 | $ 0.52 | $ 0.52 | $ 2.14 | $ 2.10 | $ 2.06 |
Nature Of Operations And Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature Of Operations And Significant Accounting Policies | NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Universal Corporation, which together with its subsidiaries is referred to herein as “Universal” or the “Company,” is the leading global leaf tobacco supplier. The Company conducts business in over 30 countries, primarily in major tobacco-producing regions of the world. Consolidation The consolidated financial statements include the accounts of Universal Corporation and all domestic and foreign subsidiaries in which the Company maintains a controlling financial interest. Control is generally determined based on a voting interest of greater than 50%, such that Universal controls all significant corporate activities of the subsidiary. All significant intercompany accounts and transactions are eliminated in consolidation. The equity method of accounting is used for investments in companies where Universal Corporation has a voting interest of 20% to 50%. These investments are accounted for under the equity method because Universal exercises significant influence over those companies, but not control. The Company received dividends totaling $5.1 million in fiscal year 2017, $3.4 million in fiscal year 2016, and $5.2 million in fiscal year 2015, from companies accounted for under the equity method. Investments where Universal has a voting interest of less than 20% are not significant and are accounted for under the cost method. Under the cost method, the Company recognizes earnings upon its receipt of dividends to the extent they represent a distribution of retained earnings. The Company's 49% ownership interest in Socotab L.L.C. (“Socotab”), a leading supplier of oriental tobaccos with operations located principally in Eastern Europe and Turkey, is the primary investment accounted for under the equity method. The investment in Socotab is an important part of the Company's overall product and service arrangements with its major customers. As discussed further below, the Company reviews the carrying value of its investments in unconsolidated affiliates on a regular basis and considers whether any factors exist that might indicate an impairment in value that is other than temporary. At March 31, 2017, the Company determined that no such factors existed with respect to the investment in Socotab. The Company, together with Socotab management, regularly evaluates the outlook for the business, and an impairment charge could be recorded in a future period if it is determined that the fair value of the investment is less than the carrying value and the decline in value is not temporary. In fiscal year 2006, the Company deconsolidated its operations in Zimbabwe under accounting requirements that apply under certain conditions to foreign subsidiaries that are subject to foreign exchange controls and other government restrictions. Since that time, the investment has been accounted for using the cost method, as required under the accounting guidance. The investment in the Zimbabwe operations was zero at March 31, 2017 and 2016. The Company has a net foreign currency translation loss associated with the Zimbabwe operations of approximately $7.2 million, which remains a component of accumulated other comprehensive loss. As a regular part of its reporting, the Company reviews the conditions that resulted in the deconsolidation of the Zimbabwe operations to confirm that such accounting treatment is still appropriate. Dividends from the Zimbabwe operations are recorded in income in the period received. The Company holds less than a 100% financial interest in certain consolidated subsidiaries. The net income and shareholders’ equity attributable to the noncontrolling interests in these subsidiaries are reported on the face of the consolidated financial statements. During fiscal years 2017, 2016, and 2015, there were no changes in the Company’s ownership percentage in any of these subsidiaries. Investments in Unconsolidated Affiliates The Company’s equity method investments and its cost method investments, which include its Zimbabwe operations, are non-marketable securities. Universal reviews such investments for impairment whenever events or changes in circumstances indicate that the carrying amount of an investment may not be recovered. For example, the Company would review such an investment for impairment if the investee were to lose a significant customer, suffer a large reduction in sales margins, experience a major change in its business environment, or undergo any other significant change in its normal business. In assessing the recoverability of equity or cost method investments, the Company follows the applicable accounting guidance in determining the fair value of the investments. In most cases, this involves the use of discounted cash flow models (Level 3 of the fair value hierarchy under the accounting guidance). If the fair value of an equity or cost method investee is determined to be lower than its carrying value, an impairment loss is recognized. The determination of fair value using discounted cash flow models is normally not based on observable market data from independent sources and therefore requires significant management judgment with respect to estimates of future operating earnings and the selection of an appropriate discount rate. The use of different assumptions could increase or decrease estimated future operating cash flows, and the discounted value of those cash flows, and therefore could increase or decrease any impairment charge related to these investments. In its consolidated statements of income, the Company reports its proportional share of the earnings of unconsolidated affiliates accounted for on the equity method based on the pretax earnings of those affiliates, as permitted under the applicable accounting guidance. All applicable foreign and U.S. income taxes are provided on these earnings and reported as a component of consolidated income tax expense. For unconsolidated affiliates located in foreign jurisdictions, repatriation of the Company’s share of the earnings through dividends is assumed in determining consolidated income tax expense. The following table provides a reconciliation of (1) equity in the pretax earnings of unconsolidated affiliates, as reported in the consolidated statements of income to (2) equity in the net income of unconsolidated affiliates, net of dividends, as reported in the consolidated statements of cash flows for the fiscal years ended March 31, 2017, 2016, and 2015:
Earnings Per Share The Company calculates basic earnings per share based on earnings available to common shareholders after payment of dividends on the Company’s Series B 6.75% Convertible Perpetual Preferred Stock prior to its conversion in fiscal year 2017 (see Note 11). The calculation uses the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed in a similar manner using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential common shares include unvested restricted stock units and performance share awards that are assumed to be fully vested and paid out in shares of common stock, dilutive stock options and stock appreciation rights that were assumed to be exercised, and shares of convertible perpetual preferred stock that were assumed to be converted when the effect was dilutive. In periods when the effect of the convertible perpetual preferred stock was dilutive and these shares were assumed to be converted into common stock, dividends paid on the preferred stock were excluded from the calculation of diluted earnings per share. Calculations of earnings per share for the fiscal years ended March 31, 2017, 2016, and 2015, are provided in Note 3. Cash and Cash Equivalents All highly liquid investments with a maturity of three months or less at the time of purchase are classified as cash equivalents. Advances to Suppliers In many sourcing origins where the Company operates, it provides agronomy services and seasonal advances of seed, fertilizer, and other supplies to tobacco farmers for crop production, or makes seasonal cash advances to farmers for the procurement of those inputs. These advances are short term, are repaid upon delivery of tobacco to the Company, and are reported in advances to suppliers in the consolidated balance sheets. In several origins, the Company has made long-term advances to tobacco farmers to finance curing barns and other farm infrastructure. In some years, due to low crop yields and other factors, individual farmers may not deliver sufficient volumes of tobacco to fully repay their seasonal advances, and the Company may extend repayment of those advances into future crop years. The long-term portion of advances is included in other noncurrent assets in the consolidated balance sheets. Both the current and the long-term portions of advances to suppliers are reported net of allowances recorded when the Company determines that amounts outstanding are not likely to be collected. Short-term and long-term advances to suppliers totaled approximately $134 million at both March 31, 2017 and 2016. The related valuation allowances totaled $27 million at March 31, 2017, and $29 million at March 31, 2016, and were estimated based on the Company’s historical loss information and crop projections. The allowances were reduced by net recoveries of approximately $0.9 million in fiscal year 2017, but increased by net provisions for estimated uncollectible amounts of approximately $0.8 million in fiscal year 2016 and $3.7 million in fiscal year 2015. These provisions are included in selling, general, and administrative expenses in the consolidated statements of income. Interest on advances is recognized in earnings upon the farmers’ delivery of tobacco in payment of principal and interest. Advances on which interest accrual had been discontinued totaled approximately $11 million at both March 31, 2017 and 2016. Inventories Tobacco inventories are valued at the lower of cost or market. Raw materials primarily consist of unprocessed leaf tobacco, which is clearly identified by type and grade at the time of purchase. The Company tracks the costs associated with this tobacco in the final product lots, and maintains this identification through the time of sale. This method of cost accounting is referred to as the specific cost or specific identification method. The predominant cost component of the Company’s inventories is the cost of the unprocessed tobacco. Direct and indirect processing costs related to these raw materials are capitalized and allocated to inventory in a systematic manner. The Company does not capitalize any interest or sales-related costs in inventory. Freight costs are recorded in cost of goods sold. Other inventories consist primarily of seed, fertilizer, packing materials, and other supplies, and are valued principally at the lower of average cost or market. Recoverable Value-Added Tax Credits In many foreign countries, the Company’s local operating subsidiaries pay significant amounts of value-added tax (“VAT”) on purchases of unprocessed and processed tobacco, crop inputs, packing materials, and various other goods and services. In some countries, VAT is a national tax, and in other countries it is assessed at the state level. Items subject to VAT vary from jurisdiction to jurisdiction, as do the rates at which the tax is assessed. When tobacco is sold to customers in the country of origin, the operating subsidiaries generally collect VAT on those sales. The subsidiaries are normally permitted to offset their VAT payments against the collections and remit only the incremental VAT collections to the tax authorities. When tobacco is sold for export, VAT is normally not assessed. In countries where tobacco sales are predominately for export markets, VAT collections generated on downstream sales are often not sufficient to fully offset the subsidiaries’ VAT payments. In those situations, unused VAT credits can accumulate. Some jurisdictions have procedures that allow companies to apply for refunds of unused VAT credits from the tax authorities, but the refund process often takes an extended period of time, and it is not uncommon for refund applications to be challenged or rejected in part on technical grounds. Other jurisdictions may permit companies to sell or transfer unused VAT credits to third parties in private transactions, although approval for such transactions must normally be obtained from the tax authorities, limits on the amounts that can be transferred may be imposed, and the proceeds realized may be heavily discounted from the face value of the credits. Due to these factors, local operating subsidiaries in some countries can accumulate significant balances of VAT credits over time. The Company reviews these balances on a regular basis and records valuation allowances on the credits to reflect amounts that are not expected to be recovered, as well as discounts anticipated on credits that are expected to be sold or transferred. At March 31, 2017 and 2016, the aggregate balances of recoverable tax credits held by the Company’s subsidiaries totaled approximately $45 million and $52 million, respectively, and the related valuation allowances totaled approximately $13 million and $19 million, respectively. The net balances are reported in other current assets and other noncurrent assets in the consolidated balance sheets. Property, Plant and Equipment Depreciation of plant and equipment is based upon historical cost and the estimated useful lives of the assets. Depreciation is calculated primarily using the straight-line method. Buildings include tobacco processing and blending facilities, offices, and warehouses. Machinery and equipment consists of processing and packing machinery and transport, office, and computer equipment. Estimated useful lives range as follows: buildings - 15 to 40 years; processing and packing machinery - 3 to 11 years; transport equipment - 3 to 10 years; and office and computer equipment - 3 to 10 years. Where applicable and material in amount, the Company capitalizes related interest costs during periods that property, plant and equipment are being constructed or made ready for service. No interest was capitalized in fiscal years 2017, 2016, or 2015. Goodwill and Other Intangibles Goodwill and other intangibles principally consist of the excess of the purchase price of acquired companies over the fair value of the net assets. Goodwill is carried at the lower of cost or fair value. Accounting Standards Codification Topic 350 (“ASC 350”) permits companies to base their initial assessments of potential goodwill impairment on qualitative factors, and the Company elected to use that approach at March 31, 2017 and 2016. Those factors did not indicate any potential impairment of the Company's recorded goodwill. Reporting units are distinct operating subsidiaries or groups of subsidiaries that typically compose the Company’s business in a specific country or location. Goodwill is allocated to reporting units based on the country or location to which a specific acquisition relates, or by allocation based on expected future cash flows if the acquisition relates to more than one country or location. The majority of the Company’s goodwill relates to its reporting unit in Brazil. Significant adverse changes in the operations or estimated future cash flows for a reporting unit with recorded goodwill could result in an impairment charge. No charges for goodwill impairment were recorded in fiscal years 2017, 2016, or 2015. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events, changes in business conditions, or other circumstances provide an indication that such assets may be impaired. Potential impairment is initially assessed by comparing management’s undiscounted estimates of future cash flows from the use or disposition of the assets to their carrying value. If the carrying value exceeds the undiscounted cash flows, an impairment charge is recorded to reduce the carrying value of the asset to its fair value determined in accordance with the accounting guidance. In many cases, this involves the use of discounted cash flow models that are not based on observable market data from independent sources (Level 3 of the fair value hierarchy under the accounting guidance). In fiscal year 2017, the Company incurred impairment charges of $2.3 million on factory and equipment assets as a result of the Company's decision to close its tobacco processing facility in Hungary (see Note 2). No significant charges for the impairment of long-lived assets were recorded during fiscal years 2016 or 2015. Income Taxes The Company provides deferred income taxes on temporary differences between the book and tax basis of its assets and liabilities. Those differences arise principally from employee benefit accruals, depreciation, deferred compensation, undistributed earnings of unconsolidated affiliates, undistributed earnings of foreign subsidiaries, goodwill, and valuation allowances on farmer advances and value-added tax credits. Fair Values of Financial Instruments The fair value of the Company’s long-term debt, disclosed in Note 6, approximates the carrying amount since the variable interest rates in the underlying credit agreement reflect the market interest rates that were available to the Company at March 31, 2017. In periods when fixed-rate obligations are outstanding, fair values are estimated using market prices where they are available and discounted cash flow models based on current incremental borrowing rates for similar classes of borrowers and borrowing arrangements. The fair values of interest rate swap agreements designated as cash flow hedges and used to fix the variable benchmark rate on outstanding long-term debt are determined separately and recorded in other long-term liabilities. Except for interest rate swaps and forward foreign currency exchange contracts that are discussed below, the fair values of all other assets and liabilities that qualify as financial instruments approximate their carrying amounts. Derivative Financial Instruments The Company recognizes all derivatives on the balance sheet at fair value. Interest rate swaps and forward foreign currency exchange contracts are used from time to time to manage interest rate risk and foreign currency risk. The Company enters into such contracts only with counterparties of good standing. The credit exposure related to non-performance by the counterparties and the Company is considered in determining the fair values of the derivatives, and the effect has not been material to the financial statements or operations of the Company. Additional disclosures related to the Company’s derivatives and hedging activities are provided in Note 8. Translation and Remeasurement of Foreign Currencies The financial statements of foreign subsidiaries having the local currency as the functional currency are translated into U.S. dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates applicable to each reporting period for results of operations. Adjustments resulting from translation of financial statements are reflected as a separate component of other comprehensive income or loss. The financial statements of foreign subsidiaries having the U.S. dollar as the functional currency, with certain transactions denominated in a local currency, are remeasured into U.S. dollars. The remeasurement of local currency amounts into U.S. dollars creates remeasurement gains and losses that are included in earnings as a component of selling, general, and administrative expense. The Company recognized net remeasurement losses of $9.3 million in fiscal year 2017, $22.5 million in fiscal year 2016, and $28.8 million in fiscal year 2015. Foreign currency transactions and forward foreign currency exchange contracts that are not designated as hedges generate gains and losses when they are settled or when they are marked to market under the prescribed accounting guidance. These transaction gains and losses are also included in earnings as a component of selling, general, and administrative expenses. The Company recognized net foreign currency transaction losses of $1.3 million in fiscal year 2017, net transaction gains of $8.0 million in fiscal year 2016, and net transaction gains of $17.7 million in fiscal year 2015. Revenue Recognition Revenue from the sale of tobacco is recognized when title and risk of loss is transferred to the customer and the earnings process is complete. Substantially all sales revenue is recorded based on the physical transfer of products to customers. A large percentage of the Company’s sales are to major multinational manufacturers of consumer tobacco products. The Company works closely with those customers to understand and plan for their requirements for volumes, styles, and grades of leaf tobacco from its various growing regions, and extensive coordination is maintained on an ongoing basis to determine and satisfy their requirements for physical shipment of processed tobacco. The customers typically specify, in sales contracts and in shipping documents, the precise terms for transfer of title and risk of loss for the tobacco. Customer returns and rejections are not significant, and the Company’s sales history indicates that customer-specific acceptance provisions are consistently met upon transfer of title and risk of loss. While most of the Company’s revenue consists of tobacco that is purchased from farmers, processed and packed in its factories, and then sold to customers, some revenue is earned from processing tobacco owned by customers. These arrangements usually exist in specific markets where the customers contract directly with farmers for leaf production, and they have accounted for less than 5% of total revenue on an annual basis through the fiscal year ended March 31, 2017. Processing and packing of leaf tobacco is a short-duration process. Under normal operating conditions, raw tobacco that is placed into the production line exits as processed and packed tobacco within one hour, and is then later transported to customer-designated storage facilities. The revenue for these services is recognized when processing is completed, and the Company’s operating history indicates that customer requirements for processed tobacco are consistently met upon completion of processing. Stock-Based Compensation Share-based payments, such as grants of restricted stock units, performance share awards, restricted stock, stock appreciation rights, and stock options, are measured at fair value and reported as expense in the financial statements over the requisite service period. Additional disclosures related to stock-based compensation are included in Note 12. Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Accounting Pronouncements Pronouncements Recently Adopted In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 was effective for fiscal years beginning after December 31, 2015. The Company adopted ASU 2015-03 effective for the quarter ending June 30, 2016, which was the first quarter of the fiscal year ending March 31, 2017. The implementation of ASU 2015-03, which required retrospective application, resulted in a $1.6 million reclassification of unamortized debt issuance costs from other noncurrent assets to long-term debt for the comparative prior year ended March 31, 2016. In April 2015, the FASB issued Accounting Standards Update 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). ASU 2015-05 requires customers who enter into a cloud computing arrangement that includes a software license to account for the arrangement as an intangible asset. If the cloud computing arrangement does not include a software license, the arrangement is accounted for as a service contract. The guidance was effective for fiscal years beginning after December 31, 2015, and allows for retrospective or prospective adoption. The Company prospectively adopted ASU 2015-05 effective as of April 1, 2016, the beginning of fiscal year 2017. The Company’s adoption of ASU 2015-05 did not have a material impact on its consolidated financial statements. In May 2015, the FASB issued Accounting Standards Update No. 2015-07, "Fair Value Measurement, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share or its Equivalent" ("ASU 2015-07"). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and eliminates certain disclosures for investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The Company adopted ASU 2015-07 effective as of April 1, 2016, the beginning of fiscal year 2017. Disclosures for all periods presented in Note 9 - Fair Value Measurements were adjusted accordingly. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718)" ("ASU 2016-09"). ASU 2016-09 provides simplification for the accounting for employee stock-based payment transactions, including the related income tax consequences, the classification of awards as either equity or liabilities, and the classification of transactions in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company elected to early-adopt ASU 2016-09 effective April 1, 2016, which was the beginning of its fiscal year ending March 31, 2017. As required by the guidance, employee tax withholding payments and excess tax benefits resulting from stock-based compensation have been classified as financing activities and operating activities, respectively, in the consolidated statements of cash flows for all periods presented. Pronouncements to be Adopted in Future Periods In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes substantially all of the current revenue recognition guidance under U.S. generally accepted accounting principles (“U.S. GAAP”). ASU 2014-09 was developed under a joint project with the International Accounting Standards Board (“IASB”) to improve and converge the existing revenue recognition accounting guidance in U.S. GAAP and International Accounting Standards. Under ASU 2014-09, the central underlying principle is to recognize revenues when promised goods or services are transferred to customers at an amount determined by the consideration a company expects to receive for those goods or services. The guidance outlines a five-step process for determining the amount and timing of revenue to be recognized from those arrangements. It is more principles-based than the existing guidance under U.S. GAAP, and therefore is expected to require more management judgment and involve more estimates than the current guidance. ASU 2014-09 is effective for annual periods beginning after December 15, 2017, including all interim periods within the year of adoption. Companies are allowed to select between two transition methods: (1) a full retrospective transition method with the application of the new guidance to each prior reporting period presented, or (2) a modified retrospective transition method that recognizes the cumulative effect on prior periods at the date of adoption together with additional footnote disclosures. Since the issuance of ASU 2014-09, the FASB has issued several amendments to provide additional supplemental guidance on certain aspects of the original pronouncement. Universal expects to adopt ASU 2014-09 and the related supplemental amendments effective April 1, 2018, which is the beginning of its fiscal year ending March 31, 2019. The Company formed a cross-functional project team to review its current revenue accounting policies and control processes, to complete a comprehensive analysis of the new guidance, and to determine the effect it will have on revenue recognition and financial statement disclosures for all customer contracts. The team has classified its customer contracts into primary revenue streams and is currently in the process of completing individual contract reviews and making final determinations with respect to provisions in the new guidance that may impact the timing of revenue recognition for certain customer arrangements. As these activities remain underway at this time, the Company is not currently able to conclude on the impact that ASU 2014-09 will have on its consolidated financial statements. Although a final determination has not been made, it is likely that the Company will select the modified retrospective transition method as its method of adoption. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires that most inventory be measured at the lower of cost or net realizable value. ASU 2015-11 defines net realizable value as the "estimated selling price in the ordinary course of business, less reasonable predictable costs of completion, disposal, and transportation." ASU 2015-11 is effective for fiscal years beginning after December 31, 2016, and will be adopted effective April 1, 2017, which is the beginning of its fiscal year ending March 31, 2018. ASU 2015-11 will be applied prospectively after the date of adoption, as required by the guidance, and will not have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 “Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities” ("ASU 2016-01"). ASU 2016-01 requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). This guidance is effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact that the adoption of ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 requires a lessee to recognize lease payment obligations as a lease liability and the corresponding right-of-use asset as a leased asset in the balance sheet for the term of the lease. This guidance supersedes Topic 840 “Leases” and is effective for fiscal years beginning after December 15, 2018. The Company will be required to adopt ASU 2016-02 effective April 1, 2019, which is the beginning of its fiscal year ending March 31, 2020, and is currently evaluating the impact that the updated guidance will have on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, "Intangibles - Goodwill and Other (Topic 350)" ("ASU 2017-04"). ASU 2017-04 eliminated Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of the reporting unit's goodwill with the carrying amount of the goodwill. The guidance is effective for fiscal years beginning after December 15, 2019. The Company will be required to adopt ASU 2017-04 effective April 1, 2020, which is the beginning of its fiscal year ending March 31, 2021, and is currently evaluating the impact that the updated guidance will have on its consolidated financial statements. In March 2017, the FASB issued Accounting Standards Update No. 2017-07, "Compensation - Retirement Benefits (Topic 715)" ("ASU 2017-07"). ASU 2017-07 requires that an employer report the service cost component of pension or other postretirement benefits expense in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, the line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The guidance is effective for fiscal years beginning after December 15, 2016. The Company will be required to adopt ASU 2017-07 effective April 1, 2017, which is the beginning of its fiscal year ending March 31, 2018. The line item classification changes required by the new guidance will not impact the Company's pretax earnings or net income; however, operating income and interest expense will increase by offsetting amounts that are not expected to be material to the Company's consolidated financial statements. Reclassifications Certain prior year amounts have been reclassified to conform to the current year’s presentation. |
Restructuring Costs |
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Restructuring Costs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs | RESTRUCTURING AND IMPAIRMENT COSTS During the three fiscal years ended March 31, 2017, 2016, and 2015, 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, 2017 In fiscal year 2017, the Company recorded restructuring and impairment costs totaling $4.4 million, primarily related to the Company's decision to close its tobacco processing facility in Hungary. The Company is now processing tobaccos sourced from Hungary in its factories in Italy. The costs incurred for the change in operations in Hungary included statutory employee termination benefits and impairment charges related to certain property and equipment. Restructuring costs were also incurred in connection with downsizing efforts at several other locations around the Company. 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 primarily 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. The costs in Argentina included 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. A summary of the restructuring and impairment costs incurred during the fiscal years ended March 31, 2017, 2016, and 2015, is as follows:
A reconciliation of the Company’s liability for employee termination benefits and other restructuring costs for fiscal years 2015 through 2017 is as follows:
The majority of the restructuring liability at March 31, 2017 will be paid in the early part of fiscal year 2018. 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 and impairment costs in future periods as business changes occur and additional cost savings initiatives are implemented. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share:
In December 2016, 111,072 shares of the Company’s Series B 6.75% Convertible Perpetual Preferred Stock were converted into approximately 2.5 million shares of the Company's common stock. In January 2017, the Company announced a mandatory conversion of all 107,418 remaining outstanding shares of the preferred stock after meeting the requirements to initiate the mandatory conversion under the original terms of the preferred shares. The Company chose to satisfy the conversion obligation for the mandatory conversion in cash. Although the conversions of the preferred stock into common stock or for cash did not impact the Company’s net income, the shares converted for cash under the mandatory conversion in January 2017 resulted in a one-time reduction of retained earnings of approximately $74.4 million during the fourth quarter ending March 31, 2017, representing the excess of the conversion cost over the carrying value of those shares. The reduction in retained earnings resulted in a corresponding one-time reduction of earnings available to common shareholders for the fiscal year ending March 31, 2017 for purposes of determining the amounts reported for basic and diluted earnings per share. The effects of the conversions on the computation of basic and diluted earnings per share for the fiscal year ended March 31, 2017, are included in the table above. See Note 11 for additional information. For the fiscal years ended March 31, 2017, 2016, and 2015, the Company had the following potentially dilutive securities (stock appreciation rights) outstanding that were not included in the computation of diluted earnings per share because their effect would have been antidilutive:
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Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES The Company operates in the United States and many foreign countries and is subject to the tax laws of many jurisdictions. Changes in tax laws or the interpretation of tax laws can affect the Company’s earnings, as can the resolution of pending and contested tax issues. The Company's consolidated effective income tax rate is affected by a number of factors, including the mix of domestic and foreign earnings, the effect of exchange rate changes on deferred taxes, and the Company’s ability to utilize foreign tax credits. Income Tax Expense Income taxes for the fiscal years ended March 31, 2017, 2016, and 2015 consisted of the following:
Foreign taxes include U.S. tax expense on earnings of foreign subsidiaries. The Company has no undistributed earnings of consolidated foreign subsidiaries that are classified as permanently reinvested. Consolidated Effective Income Tax Rate A reconciliation of the statutory U.S. federal rate to the Company’s effective income tax rate is as follows:
During the first quarter of fiscal year 2015, the Company recorded a consolidated income tax benefit of $8 million arising from the ability of its subsidiary, Deltafina S.p.A., to pay a significant portion of a fine and related interest charges in Italy that were settled during that quarter following the unsuccessful appeal of a case involving anti-competitive activities in the Italian tobacco market. Deltafina and Universal Corporation were jointly liable for the fine and interest charges. The Company’s initial accrual of the amounts imposed in September 2011 assumed that the entire obligation would be paid by Universal Corporation due to uncertainty with respect to Deltafina’s financial capacity to bear any significant portion of the cost upon the eventual settlement and to uncertainty as to when the payment would be made. Deltafina ultimately was able to assume responsibility for approximately $30 million of the total $53 million obligation for the fine and interest when those amounts were paid. Although the portion of the fine paid by Deltafina was not deductible for income tax purposes in Italy, it reduced the subsidiary’s cumulative undistributed earnings and the associated consolidated tax liability, resulting in the $8 million benefit in the Company's consolidated income tax provision. This discrete item reduced the effective income tax rate for fiscal year 2015 by 5.0%. Components of Income Before Income Taxes The U.S. and foreign components of income before income taxes were as follows:
Deferred Income Tax Liabilities and Assets Significant components of deferred tax liabilities and assets were as follows:
At March 31, 2017, the Company had no material net operating loss carryforwards in either its domestic or foreign operations. Combined Income Tax Expense (Benefit) The combined income tax expense (benefit) allocable to continuing operations, other comprehensive income, and direct adjustments to shareholders' equity was as follows:
Uncertain Tax Positions A reconciliation of the beginning and ending balance of the gross liability for uncertain tax positions for the fiscal years ended March 31, 2017, 2016 and 2015, is as follows:
Of the total liability for uncertain tax positions at March 31, 2017, approximately $1.8 million could have an effect on the consolidated effective tax rate if the tax benefits are recognized. The liability for uncertain tax positions includes $0.1 million related to tax positions for which it is reasonably possible that the amounts could change significantly before March 31, 2018. This amount reflects a possible decrease in the liability for uncertain tax positions that could result from the completion and resolution of tax audits and the expiration of open tax years in various tax jurisdictions. The Company recognizes accrued interest related to uncertain tax positions as interest expense, and it recognizes penalties as a component of income tax expense. Amounts accrued or reversed for interest and penalties were not material for any of the fiscal years 2015 through 2017, and liabilities recorded for interest and penalties at March 31, 2017 and 2016 also were not material. Universal and its subsidiaries file a U.S. federal consolidated income tax return, as well as returns in several U.S. states and a number of foreign jurisdictions. As of March 31, 2017, the Company's earliest open tax year for U.S. federal income tax purposes was its fiscal year ended 2014. Open tax years in state and foreign jurisdictions generally range from 3 to 6 years. |
Credit Facilities |
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Mar. 31, 2017 | |
Line of Credit Facility [Abstract] | |
Credit Facilities | CREDIT FACILITIES Bank Credit Agreements In December 2014, the Company entered into a senior unsecured bank credit agreement that replaced its previous short-term and long-term borrowing facilities, consolidating and extending the maturities of those facilities. The agreement established a $430 million five-year revolving credit facility, along with a $150 million five-year term loan and a $220 million seven-year term loan. Borrowings under the revolving credit facility bear interest at a variable rate based on either (1) LIBOR plus a margin that is based on the Company's credit measures or (2) the higher of the federal funds rate plus 0.5%, prime rate, or one-month LIBOR plus 1.0%, each plus a margin. In addition to interest, the Company pays a facility fee on the revolving credit facility. No amounts were outstanding under the revolving credit facility at March 31, 2017. The credit agreement provides for an expansion of the facility under certain conditions to allow additional borrowings of up to $100 million. Additional information related to the term loans is provided in Note 6. The credit agreement includes financial covenants that require the Company to maintain a minimum level of tangible net worth and observe limits on debt levels. The Company was in compliance with those covenants at March 31, 2017. Short-Term Credit Facilities The Company maintains short-term uncommitted lines of credit in the United States and in a number of foreign countries. Foreign borrowings are generally in the form of overdraft facilities at rates competitive in the countries in which the Company operates. Generally, each foreign line is available only for borrowings related to operations of a specific country. As of March 31, 2017 and 2016, approximately $59 million and $66 million, respectively, were outstanding under these uncommitted lines of credit. The weighted-average interest rates on short-term borrowings outstanding as of March 31, 2017 and 2016, were approximately 3.1% and 2.2%, respectively. At March 31, 2017, the Company and its consolidated affiliates had unused uncommitted lines of credit totaling approximately $248 million. |
Long-Term Debt |
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Long-term Debt [Text Block] | LONG-TERM DEBT The Company's long-term debt at March 31, 2017 and 2016 consisted of the following:
As discussed in Note 5, the Company entered into a bank credit agreement in December 2014 that established a $150 million five-year term loan and a $220 million seven-year term loan. Both term loans were fully funded at closing, and the Company concurrently repaid approximately $250 million aggregate principal amount on term loans outstanding under two previous bank credit facilities and reduced its revolving credit borrowings by approximately $120 million. The term loans require no amortization and are prepayable without penalty prior to maturity. Under the credit agreement, both term loans bear interest at variable rates plus a margin based on the Company's credit measures. However, following closing on the term loans, the Company entered into receive-floating / pay-fixed interest rate swap agreements that convert the variable benchmark rate on both loans to a fixed rate over their full terms to maturity. With the swap agreements in place, the effective interest rate on the $150 million five-year loan and the $220 million seven-year loan were 2.94% and 3.48%, respectively, at March 31, 2017 and 2016. The effective rates will change only if a change in the Company's credit measures results in adjustments to the applicable credit spreads specified in the underlying loan agreement. The $150 million five-year term loan matures in fiscal year 2020, and the $220 million seven-year term loan matures in fiscal year 2022. In November 2014, the Company filed an undenominated universal shelf registration statement with the U.S. Securities and Exchange Commission to provide for the future issuance of an undefined amount of additional debt or equity securities as determined by the Company and offered in one or more prospectus supplements prior to issuance. Disclosures about the fair value of long-term debt are provided in Note 9. |
Leases |
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Mar. 31, 2017 | |
Leases [Abstract] | |
Leases | LEASES The Company’s subsidiaries lease various production, storage, distribution, and other facilities, as well as vehicles and equipment used in their operations. Some of the leases have options to extend the lease term at market rates. These arrangements are classified as operating leases for accounting purposes. Rent expense on operating leases totaled $15.3 million in fiscal year 2017, $14.7 million in fiscal year 2016, and $15.8 million in fiscal year 2015. Future minimum payments under non-cancelable operating leases total $11.5 million in 2018, $8.5 million in 2019, $7.2 million in 2020, $5.8 million in 2021, $4.1 million in 2022, and $13.7 million after 2022. |
Derivatives And Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives And Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Universal is exposed to various risks in its worldwide operations and uses derivative financial instruments to manage two specific types of risks – interest rate risk and foreign currency exchange rate risk. Interest rate risk has been managed by entering into interest rate swap agreements, and foreign currency exchange rate risk has been managed by entering into forward foreign currency exchange contracts. However, the Company’s policy also permits other types of derivative instruments. In addition, foreign currency exchange rate risk is also managed through strategies that do not involve derivative instruments, such as using local borrowings and other approaches to minimize net monetary positions in non-functional currencies. The disclosures below provide additional information about the Company’s hedging strategies, the derivative instruments used, and the effects of these activities on the consolidated statements of income and comprehensive income and the consolidated balance sheets. In the consolidated statements of cash flows, the cash flows associated with all of these activities are reported in net cash provided by operating activities. Cash Flow Hedging Strategy for Interest Rate Risk In January 2015, the Company entered into receive-floating/pay-fixed interest rate swap agreements that were designated and qualified as hedges of the exposure to changes in interest payment cash flows created by fluctuations in variable interest rates on its two outstanding non-amortizing bank term loans (see Notes 5 and 6). Although no significant ineffectiveness is expected with this hedging strategy, the effectiveness of the interest rate swaps is evaluated on a quarterly basis. At March 31, 2017, the total notional amount of the interest rate swaps was $370 million, which corresponded with the aggregate outstanding balance of the term loans. Cash Flow Hedging Strategy for Foreign Currency Exchange Rate Risk Related to Forecast Purchases of Tobacco and Related Processing Costs The majority of the tobacco production in most countries outside the United States where Universal operates is sold in export markets at prices denominated in U.S. dollars. However, purchases of tobacco from farmers and most processing costs (such as labor and energy) in those countries are usually denominated in the local currency. Changes in exchange rates between the U.S. dollar and the local currencies where tobacco is grown and processed affect the ultimate U.S. dollar cost of the processed tobacco. From time to time, the Company enters into forward contracts to sell U.S. dollars and buy the local currency at future dates that coincide with the expected timing of a portion of the tobacco purchases and processing costs. This strategy offsets the variability of future U.S. dollar cash flows for tobacco purchases and processing costs for the foreign currency notional amount hedged. This hedging strategy has been used mainly for tobacco purchases and processing costs in Brazil. The aggregate U.S. dollar notional amount of forward contracts entered for these purposes during fiscal years 2017, 2016, and 2015 was as follows:
The reduced U.S. dollar notional amounts for tobacco purchases and processing costs hedged during fiscal year 2016 reflected the reduced size of the 2016 Brazilian crop and a variation in the timing of fixed-price orders from customers for their purchases from that crop year. All contracts related to tobacco purchases were designated and qualified as hedges of the future cash flows associated with the forecast purchases of tobacco. As a result, except for amounts related to any ineffective portion of the hedging strategy or any early de-designation of the hedge arrangement, changes in fair values of the forward contracts have been recognized in comprehensive income as they occurred, but only recognized in earnings upon sale of the related tobacco to third-party customers. Forward contracts related to processing costs have not been designated as hedges, and gains and losses on those contracts have been recognized in earnings on a mark-to-market basis. For substantially all hedge gains and losses recorded in accumulated other comprehensive loss at March 31, 2017, the Company expects to complete the sale of the tobacco and recognize the amounts in earnings during fiscal year 2018. At March 31, 2017, all hedged forecast purchases of tobacco not yet completed remained probable of occurring within the originally designated time period and, as a result, no hedges had been discontinued. Purchases of the 2017 Brazilian crop are expected to be completed by July 2017, and all forward contracts to hedge those purchases will mature and be settled by that time. Hedging Strategy for Foreign Currency Exchange Rate Risk Related to Net Local Currency Monetary Assets and Liabilities of Foreign Subsidiaries Most of the Company’s foreign subsidiaries transact the majority of their sales in U.S. dollars and finance the majority of their operating requirements with U.S. dollar borrowings, and therefore use the U.S. dollar as their functional currency. These subsidiaries normally have certain monetary assets and liabilities on their balance sheets that are denominated in the local currency. Those assets and liabilities can include cash and cash equivalents, accounts receivable and accounts payable, advances to farmers and suppliers, deferred income tax assets and liabilities, recoverable value-added taxes, and other items. Net monetary assets and liabilities denominated in the local currency are remeasured into U.S. dollars each reporting period, generating gains and losses that the Company records in earnings as a component of selling, general, and administrative expenses. The level of net monetary assets or liabilities denominated in the local currency normally fluctuates throughout the year based on the operating cycle, but it is most common for monetary assets to exceed monetary liabilities, sometimes by a significant amount. When this situation exists and the local currency weakens against the U.S. dollar, remeasurement losses are generated. Conversely, remeasurement gains are generated on a net monetary asset position when the local currency strengthens against the U.S. dollar. To manage a portion of its exposure to currency remeasurement gains and losses, the Company enters into forward contracts to buy or sell the local currency at future dates coinciding with expected changes in the overall net local currency monetary asset or liability position of the subsidiary. Gains and losses on the forward contracts are recorded in earnings as a component of selling, general, and administrative expenses for each reporting period as they occur, and thus directly offset the related remeasurement losses or gains in the consolidated statements of income for the notional amount hedged. The Company does not designate these contracts as hedges for accounting purposes. The contracts are generally arranged to hedge the subsidiary's projected exposure to currency remeasurement risk for specified periods of time, and new contracts are entered as necessary throughout the year to replace previous contracts as they mature. During the fiscal years ended March 31, 2017, 2016, and 2015, the Company used forward currency contracts to manage its exposure to currency remeasurement risk in Brazil. The total notional amounts of contracts outstanding at March 31, 2017 and 2015 were approximately $33.0 million and $80.4 million, respectively. At March 31, 2016 , the net local monetary asset position in Brazil was not significant, and there were no foreign currency contracts outstanding. To further mitigate currency remeasurement exposure, the Company’s foreign subsidiaries may utilize short-term local currency financing during certain periods. This strategy, while not involving the use of derivative instruments, is intended to minimize the subsidiary’s net monetary position by financing a portion of the local currency monetary assets with local currency monetary liabilities and thus hedging a portion of the overall position. Several of the Company’s foreign subsidiaries transact the majority of their sales and finance the majority of their operating requirements in their local currency, and therefore use their respective local currencies as the functional currency for reporting purposes. From time to time, these subsidiaries sell tobacco to customers in transactions that are not denominated in the functional currency. In those situations, the subsidiaries routinely enter into forward exchange contracts to offset currency risk for the period of time that a fixed-price order and the related trade account receivable are outstanding with the customer. The contracts are not designated as hedges for accounting purposes. Effect of Derivative Financial Instruments on the Consolidated Statements of Income The table below outlines the effects of the Company’s use of derivative financial instruments on the consolidated statements of income for the fiscal years ended March 31, 2017, 2016, and 2015.
For the interest rate swap agreements, the effective portion of the gain or loss on the derivative is recorded in accumulated other comprehensive loss and any ineffective portion is recorded in selling, general and administrative expenses. For the forward foreign currency exchange contracts designated as cash flow hedges of tobacco purchases in Brazil, an immaterial net hedge gain, representing unrealized gains on contracts related to the 2017 crop, remained in accumulated other comprehensive loss at March 31, 2017. No hedge gain or loss had been reclassified to earnings at March 31, 2017 since shipments of those tobaccos had not yet started. The majority of the balance in accumulated other comprehensive loss will be recognized in earnings as a component of cost of goods sold in fiscal year 2018 as the 2017 Brazilian crop tobacco is sold to customers. Based on the hedging strategy, as the gain or loss is recognized in earnings, it is expected to be offset by a change in the direct cost for the tobacco or by a change in sales prices if the strategy has been mandated by the customer. Generally, margins on the sale of the tobacco will not be significantly affected. Effect of Derivative Financial Instruments on the Consolidated Balance Sheets The table below outlines the effects of the Company’s derivative financial instruments on the consolidated balance sheets at March 31, 2017 and 2016:
Substantially all of the Company's forward foreign currency exchange contracts are subject to master netting arrangements, whereby the right to offset occurs in the event of default by a participating party. The Company has elected to present these contracts on a gross basis in the consolidated balance sheets. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Universal measures certain financial and nonfinancial assets and liabilities at fair value based on applicable accounting guidance. The financial assets and liabilities measured at fair value include money market funds, trading securities associated with deferred compensation plans, interest rate swap agreements, forward foreign currency exchange contracts, and guarantees of bank loans to tobacco growers. The application of the fair value guidance to nonfinancial assets and liabilities primarily includes the determination of fair values for goodwill and long-lived assets when indicators of potential impairment are present. Under the accounting guidance, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The framework for measuring fair value is based on a fair value hierarchy that distinguishes between observable inputs and unobservable inputs. Observable inputs are based on market data obtained from independent sources. Unobservable inputs require the Company to make its own assumptions about the value placed on an asset or liability by market participants because little or no market data exists. There are three levels within the fair value hierarchy.
As permitted under the accounting guidance, the Company uses net asset value per share ("NAV") as a practical expedient to measure the fair value of its money market funds. As discussed in Note 1, under updated accounting guidance adopted effective April 1, 2016, the fair values for those funds are no longer categorized within the fair value hierarchy and are presented under the heading "NAV" in the tables that follow in this disclosure. In measuring the fair value of liabilities, the Company considers the risk of non-performance in determining fair value. Universal has not elected to report at fair value any financial instruments or any other assets or liabilities that are not required to be reported at fair value under current accounting guidance. At March 31, 2017 and 2016, the Company had certain financial assets and financial liabilities that were required to be measured and reported at fair value on a recurring basis. These assets and liabilities are listed in the tables below and are classified based on how their values were determined under the fair value hierarchy or the NAV practical expedient:
Money market funds The fair value of money market funds, which are reported in cash and cash equivalents in the consolidated balance sheets, is based on NAV, which is the amount at which the funds are redeemable and is used as a practical expedient for fair value. These funds are not classified in the fair value hierarchy, but are disclosed as part of the fair value table above. Trading securities associated with deferred compensation plans Trading securities represent mutual fund investments that are matched to employee deferred compensation obligations. These investments are bought and sold as employees defer compensation, receive distributions, or make changes in the funds underlying their accounts. Quoted market prices (Level 1) are used to determine the fair values of the mutual funds. Interest rate swap agreements The fair values of interest rate swap agreements are determined based on dealer quotes using a discounted cash flow model matched to the contractual terms of each instrument. Since inputs to the model are observable and significant judgment is not required in determining the fair values, interest rate swaps are classified within Level 2 of the fair value hierarchy. Forward foreign currency exchange contracts The fair values of forward foreign currency exchange contracts are also determined based on dealer quotes using a discounted cash flow model matched to the contractual terms of each instrument. Since inputs to the model are observable and significant judgment is not required in determining the fair values, forward foreign currency exchange contracts are classified within Level 2 of the fair value hierarchy. Guarantees of bank loans to tobacco growers The Company guarantees bank loans to tobacco growers in Brazil for crop financing. In the event that the farmers default on their payments to the banks, the Company would be required to perform under the guarantees. The Company regularly evaluates the likelihood of farmer defaults based on an expected loss analysis and records the fair value of its guarantees as an obligation in its consolidated financial statements. The fair value of the guarantees is determined using the expected loss data for all loans outstanding at each measurement date. The present value of the cash flows associated with the estimated losses is then calculated at a risk-adjusted interest rate that is aligned with the expected duration of the liability and includes an adjustment for nonperformance risk. This approach is sometimes referred to as the “contingent claims valuation method.” Although historical loss data is an observable input, significant judgment is required in applying this information to the portfolio of guaranteed loans outstanding at each measurement date and in selecting a risk-adjusted interest rate. Significant increases or decreases in the risk-adjusted interest rate may result in a significantly higher or lower fair value measurement. The guarantees of bank loans to tobacco growers are therefore classified within Level 3 of the fair value hierarchy. A reconciliation of the change in the balance of the financial liability for guarantees of bank loans to tobacco growers (Level 3) for the fiscal years ended March 31, 2017 and 2016 is provided below.
Long-term Debt The fair value of the Company’s long-term debt was approximately $370 million at each of the balance sheet dates March 31, 2017 and 2016. The Company estimates the fair value of its long-term debt using Level 2 inputs which are based upon quoted market prices for the same or similar obligations or on calculations that are based on the current interest rates available to the Company for debt of similar terms and maturities. |
Pension And Other Postretirement Benefit Plans |
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Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension And Other Postretirement Benefit Plans | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Defined Benefit Plans Description of Plans The Company sponsors several defined benefit pension plans covering U.S. salaried employees and certain foreign and other employee groups. These plans provide retirement benefits based primarily on employee compensation and years of service. Plan assets consist primarily of equity and fixed income investments. The Company also sponsors defined benefit plans that provide postretirement health and life insurance benefits for eligible U.S. employees who have attained specific age and service levels, although postretirement life insurance benefits were discontinued for active employees during fiscal year 2015. The health benefits are funded by the Company as the costs of those benefits are incurred. The plan design includes cost-sharing features such as deductibles and coinsurance. The life insurance benefits are funded with deposits to a reserve account held by an insurance company. The Company has the right to amend or discontinue its pension and other postretirement benefit plans at any time. In the following disclosures, the term “accumulated benefit obligation” (“ABO”) represents the actuarial present value of estimated future benefit payments earned by participants in the Company's defined benefit pension plans as of the balance sheet date without regard to the estimated effect of future compensation increases on those benefits. The term does not apply to other postretirement benefits. “Projected benefit obligation” refers to the projected benefit obligation (“PBO”) for pension benefits and the accumulated postretirement benefit obligation (“APBO”) for other postretirement benefits. These amounts represent the actuarial present value of estimated future benefit payments earned by participants in the benefit plans as of the balance sheet date. For pension benefits, the projected benefit obligation includes the estimated effect of future compensation increases on those benefits. Actuarial Assumptions Assumptions used for financial reporting purposes to compute net periodic benefit cost and benefit obligations for the Company's primary defined benefit plans were as follows:
Changes in the discount rates in the above table reflect prevailing market interest rates at the end of each fiscal year when the benefit obligations are actuarially measured. The reduction in the expected long-term return on plan assets assumption from fiscal year 2015 to fiscal year 2016 is primarily due to changes in the underlying plan assets. These changes reflect a move toward a liability-driven investment strategy in the Company's ERISA-regulated U.S. defined benefit pension plan due to the high percentage of retired and inactive participants in the plan and the high funded status of the plan. The healthcare cost trend rate used by the Company is based on a study of medical cost inflation rates that is reviewed annually for continued applicability. The revised trend assumption of 6.70% in 2017 declines gradually to 4.50% in 2037. Benefit Obligations, Plan Assets, and Funded Status The following table reflects the changes in benefit obligations and plan assets in 2017 and 2016, as well as the funded status of the plans at March 31, 2017 and 2016:
The settlements for pension benefits in fiscal year 2017 were attributable to the termination of a foreign pension plan during the year and the transfer of assets in settlement of the participants' benefit obligations to defined contribution plans. The Company funds its non-regulated U.S. pension plan, one of its foreign pension plans, and its postretirement medical plans on a pay-as-you-go basis as the benefit payments are incurred. Those plans account for approximately 71% of the $49.1 million unfunded pension obligation and approximately 85% of the $33.7 million unfunded postretirement benefit obligation shown on the funded status line in the above table at March 31, 2017. The funded status of the Company’s plans at the end of fiscal years 2017 and 2016 was reported in the consolidated balance sheets as follows:
Additional information on the funded status of the Company’s plans as of the respective measurement dates for the fiscal years ended March 31, 2017 and 2016, is as follows:
Net Periodic Benefit Cost The components of the Company’s net periodic benefit cost were as follows:
The curtailment gain for other postretirement benefits in fiscal year 2015 was attributable to the discontinuation of postretirement life insurance benefits for active U.S. employees. A one-percentage-point increase in the assumed healthcare cost trend rate would increase the March 31, 2017 accumulated postretirement benefit obligation by approximately $800 thousand, while a one-percentage-point decrease would reduce the benefit obligation by approximately $700 thousand. The aggregate service and interest cost components of the net periodic postretirement benefit expense for fiscal year 2018 would not change by a significant amount as a result of a one-percentage-point increase or decrease in the assumed healthcare cost trend rate. Amounts Included in Accumulated Other Comprehensive Loss Amounts included in accumulated other comprehensive loss at the beginning of the year are amortized as a component of net periodic benefit cost during the year. The amounts recognized in other comprehensive income or loss for fiscal years 2017 and 2016 and the amounts included in accumulated other comprehensive loss at the end of those fiscal years are shown below. All amounts shown are before allocated income taxes.
Amounts in the above table reflect the Company and its consolidated subsidiaries. The accumulated other comprehensive loss reported in the consolidated balance sheets also includes pension and other postretirement benefit amounts related to ownership interests in unconsolidated affiliates. The Company expects to recognize approximately $5.2 million of the March 31, 2017 net actuarial loss and $2.4 million of the March 31, 2017 prior service benefit in net periodic benefit cost during fiscal year 2018. Allocation of Pension Plan Assets The Company has established, and periodically adjusts, target asset allocations for its investments in its U.S. ERISA-regulated defined benefit pension plan, which represents 94% of consolidated plan assets and 83% of consolidated PBO at March 31, 2017, to balance the needs of liquidity, total return, and risk control. The assets are required to be diversified across asset classes and investment styles to achieve that balance. During the year, the asset allocation is reviewed for adherence to the target policy and rebalanced to the targeted weights. The Company reviews the expected long-term returns of the asset allocation each year to help determine whether changes are needed. The return is evaluated on a weighted-average basis in relation to inflation. The assumed long-term rate of return used to calculate annual benefit expense is based on the asset allocation and expected market returns for the respective asset classes. The weighted–average target pension asset allocation and target ranges at the March 31, 2017 measurement date and the actual asset allocations at the March 31, 2017 and 2016 measurement dates by major asset category were as follows:
Universal makes regular contributions to its pension and other postretirement benefit plans. As previously noted, for postretirement health benefits, contributions reflect funding of those benefits as they are incurred. The Company expects to make contributions of approximately $7.8 million to its defined benefit pension plans in fiscal year 2018, including $6.0 million to its ERISA-regulated U.S. plan and $1.8 million to its non-ERISA regulated and other plans. Estimated future benefit payments to be made from the Company’s plans are as follows:
Fair Values of Pension Plan Assets Assets held by the Company's defined benefit pension plans primarily consist of equity securities, fixed income securities, and alternative investments. Equity securities are primarily invested in actively-traded mutual funds with underlying common stock investments in U.S. and foreign companies ranging in size from small to large corporations. Fixed income securities are also held primarily through actively-traded mutual funds with the underlying investments in both U.S. and foreign securities. The methodologies for determining the fair values of the plan assets are outlined below. Where the values are based on quoted prices for the securities in an active market, they are classified as Level 1 of the fair value hierarchy. Where secondary pricing sources are used, they are classified as Level 2 of the hierarchy. Pricing models that use significant unobservable inputs are classified as Level 3.
Fair values of the assets of the Company’s pension plans as of March 31, 2017 and 2016, classified based on how their values were determined under the fair value hierarchy are as follows:
Other Benefit Plans Universal and several subsidiaries offer employer defined contribution savings plans. Amounts charged to expense for these plans were approximately $2.6 million for fiscal year 2017, $2.4 million for fiscal year 2016, and $1.5 million for fiscal year 2015. |
Common And Preferred Stock |
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Common And Preferred Stock | COMMON AND PREFERRED STOCK Common Stock At March 31, 2017, the Company’s shareholders had authorized 100,000,000 shares of its common stock, and 25,274,506 shares were issued and outstanding. Holders of the common stock are entitled to one vote for each share held on all matters requiring a vote. Holders of the common stock are also entitled to receive dividends when, as, and if declared by the Company’s Board of Directors. The Board of Directors customarily declares and pays regular quarterly dividends on the outstanding common shares; however, such dividends are at the Board’s full discretion, and there is no obligation to continue them. Preferred Stock Authorized and Outstanding Shares The Company is also authorized to issue up to 5,000,000 shares of preferred stock, 500,000 shares of which are reserved for Series A Junior Participating Preferred Stock and 220,000 of which were reserved for Series B 6.75% Convertible Perpetual Preferred Stock. No Series A Junior Participating Preferred Stock has been issued. In 2006, 220,000 shares of Series B 6.75% Convertible Perpetual Preferred Stock were issued under this authorization. As discussed below, all of those shares were converted during fiscal year 2017, and none were outstanding at March 31, 2017. Conversion of Series B 6.75% Convertible Perpetual Preferred Stock In December 2016, holders of 111,072 shares of the Series B 6.75% Convertible Perpetual Preferred Stock voluntarily exercised their conversion rights under the original issuance terms of the preferred shares. The Company chose to satisfy the full conversion obligation for those preferred shares with shares of its common stock, issuing 2,487,118 common shares at the applicable conversion rate in exchange for the preferred shares tendered. The consolidated balance sheet at March 31, 2017 reflects a non-cash reclassification of $107.6 million from preferred stock to common stock to reflect the conversion of those preferred shares. On January 9, 2017, the Company announced a mandatory conversion of all 107,418 remaining outstanding shares of the preferred stock after meeting the requirements to initiate the mandatory conversion under the original terms of the preferred shares. The Company chose to satisfy the conversion obligation for the mandatory conversion in cash, paying approximately $178.4 million for those preferred shares on January 31, 2017 to complete the conversion. With the completion of the mandatory conversion in January 2017, the Company’s outstanding equity securities consist only of its common stock. Dividend payments on the preferred shares, which previously totaled approximately $15 million annually, have been discontinued. Although the conversions of the preferred stock into common stock or for cash did not impact the Company’s net income, the shares converted for cash under the mandatory conversion in January 2017 resulted in a one-time reduction of retained earnings of approximately $74.4 million during the fourth quarter ended March 31, 2017, representing the excess of the conversion cost over the carrying value of those shares. The reduction in retained earnings resulted in a corresponding one-time reduction of earnings available to common shareholders for the fiscal year ended March 31, 2017 for purposes of determining the amounts reported for basic and diluted earnings per share. Share Repurchase Programs Universal’s Board of Directors has authorized programs to repurchase outstanding shares of the Company’s capital stock (common and preferred stock). Under these programs, the Company has made and may continue to make share repurchases from time to time in the open market or in privately negotiated transactions at prices not exceeding prevailing market rates. Programs have been in place continuously throughout fiscal years 2015 through 2017. The current program, which replaced an expiring program, was authorized and became effective on November 5, 2015. It authorizes the purchase of up to $100 million of the Company's outstanding common stock and expires on the earlier of November 15, 2017, or when the funds authorized for the program have been exhausted. At March 31, 2017, the full $100 million authorization remained available for share repurchases under the current program. Share repurchases under the programs for the fiscal years ended March 31, 2017, 2016, and 2015 were as follows:
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Executive Stock Plans And Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Stock Plans And Stock-Based Compensation | EXECUTIVE STOCK PLANS AND STOCK-BASED COMPENSATION Executive Stock Plans The Company’s shareholders have approved executive stock plans under which officers, directors, and employees of the Company may receive grants and awards of common stock, restricted stock, restricted stock units (“RSUs”), performance share awards (“PSAs”), stock appreciation rights (“SARs”), incentive stock options, and non-qualified stock options. Currently, grants are outstanding under the 1997 Executive Stock Plan, the 2002 Executive Stock Plan, and the 2007 Stock Incentive Plan. Together, these plans are referred to in this disclosure as the “Plans.” Up to 2 million shares of the Company’s common stock may be issued under each of the Plans; however, direct awards of common stock, restricted stock, or RSUs are limited to 500,000 shares under the 2002 Executive Stock Plan and 1,350,000 shares under the 2007 Stock Incentive Plan. The Company’s practice is to award grants of stock-based compensation to officers at the first regularly-scheduled meeting of the Executive Compensation, Nominating, and Corporate Governance Committee of the Board of Directors (the “Compensation Committee”) in the fiscal year following the public release of the Company’s financial results for the prior year. In recent years, the Compensation Committee has awarded only grants of RSUs and PSAs, and all stock options and SARs granted in previous years were either exercised or had expired by the end of fiscal year 2017. Outside directors automatically receive restricted stock units following each annual meeting of shareholders. Non-qualified stock options and SARs previously granted under the Plans had an exercise price equal to the market price of a share of common stock on the date of grant. SARs granted under the Plans vested in equal one-third tranches one, two, and three years after the grant date and expired 10 years after the grant date, except that SARs granted after fiscal year 2007 expired on the earlier of 3 years after the grantee’s retirement date or 10 years after the grant date. RSUs awarded under the Plans vest 5 years from the grant date and are then paid out in shares of common stock. Under the terms of the RSU awards, grantees receive dividend equivalents in the form of additional RSUs that vest and are paid out on the same date as the original RSU grant. The PSAs vest 3 years from the grant date, are paid out in shares of common stock at the vesting date, and do not carry rights to dividends or dividend equivalents prior to vesting. Shares ultimately paid out under PSA grants are dependent on the achievement of predetermined performance measures established by the Compensation Committee and can range from zero to 150% of the stated award. RSUs awarded to outside directors vest 3 years after the grant date, and restricted stock vests upon the individual’s retirement from service as a director. Stock Options and SARs The following tables summarize the Company’s stock option and SAR activity and related information for fiscal years 2015 through 2017:
As indicated in the table, with the exercise and/or expiration of all remaining SARs during fiscal year 2017, there were no SARs or stock options outstanding at March 31, 2017.
Intrinsic value in the above table is based on the difference between the market price of the underlying shares at the exercise date and the exercise price of the SARs or stock options. RSUs, Restricted Stock, and PSAs The following table summarizes the Company’s RSU, restricted stock, and PSA activity for fiscal years 2015 through 2017:
Shares granted and vested in the above table include dividend equivalents on RSUs and any shares awarded above the base grant under the performance provisions of PSAs. Shares forfeited or canceled include any reductions from the base PSA grant under those same performance provisions. The fair values of RSUs, restricted stock, and PSAs are based on the market price of the common stock on the grant date. Stock-Based Compensation Expense Fair value expense for stock-based compensation is recognized ratably over the period from grant date to the earlier of (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For employees who are already eligible to retire at the date an award is granted, the total fair value of the award is recognized as expense at the date of grant. For the fiscal years ended March 31, 2017, 2016, and 2015, total stock-based compensation expense and the related income tax benefit recognized were as follows:
At March 31, 2017, the Company had $6.0 million of unrecognized compensation expense related to stock-based awards, which will be recognized over a weighted-average period of approximately 1.1 years. All stock options were exercised, cancelled, or expired before the end of fiscal year 2015, and cash proceeds from the exercise of stock options were not material for that fiscal year. |
Commitments And Other Matters |
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Commitments And Other Matters | COMMITMENTS, CONTINGENCIES, AND OTHER MATTERS Commitments The Company enters into contracts to purchase tobacco from farmers in a number of the countries where it operates. Contracts in most countries cover one annual growing season. Primarily with the farmer contracts in Brazil, Malawi, Mozambique, the Philippines, Guatemala, and Mexico, the Company provides seasonal financing to support the farmers’ production of their crops or guarantees their financing from third-party banks. At March 31, 2017, the Company had contracts to purchase approximately $622 million of tobacco to be delivered during the coming fiscal year and $68 million of tobacco to be delivered in subsequent years. These amounts are estimates since actual quantities purchased will depend on crop yields, and prices will depend on the quality of the tobacco delivered and other market factors. Tobacco purchase obligations have been partially funded by advances to farmers and other suppliers, which totaled approximately $104 million, net of allowances, at March 31, 2017. The Company withholds payments due to farmers on delivery of the tobacco to satisfy repayment of the financing it provided to the farmers. As noted above and discussed in more detail below, the Company also has arrangements to guarantee bank loans to farmers in Brazil, and payments are also withheld on delivery of tobacco to satisfy repayment of those loans. In addition to its contractual obligations to purchase tobacco, the Company had commitments related to agricultural materials, approved capital expenditures, and various other requirements that approximated $48 million at March 31, 2017. Guarantees and Other Contingent Liabilities Guarantees of Bank Loans and Other Contingent Liabilities Guarantees of bank loans to growers for crop financing have long been industry practice in Brazil and support the farmers’ production of tobacco there. The Company's operating subsidiary in Brazil had guarantees outstanding at March 31, 2017, all of which expire within one year. As noted above, the subsidiary withholds payments due to the farmers on delivery of tobacco and forwards those payments to the third-party banks. Failure of farmers to deliver sufficient quantities of tobacco to the subsidiary to cover their obligations to the third-party banks could result in a liability for the subsidiary under the related guarantees; however, in that case, the subsidiary would have recourse against the farmers. The maximum potential amount of future payments that the Company’s subsidiary could be required to make at March 31, 2017, was the face amount, $17 million including unpaid accrued interest ($13 million as of March 31, 2016). The fair value of the guarantees was a liability of approximately $1 million at March 31, 2017 ($2 million at March 31, 2016). In addition to these guarantees, the Company has other contingent liabilities totaling approximately $2 million at March 31, 2017, primarily under outstanding letters of credit. Value-Added Tax Assessments in Brazil As discussed in Note 1, the Company's local operating subsidiaries pay significant amounts of value-added tax ("VAT") in connection with their normal operations. In Brazil, VAT is assessed at the state level when green tobacco is transferred between states. The Company's operating subsidiary there pays VAT when tobaccos grown in the states of Santa Catarina and Parana are transferred to its factory in the state of Rio Grande do Sul for processing. The subsidiary has received assessments for additional VAT plus interest and penalties from the tax authorities for the states of Santa Catarina and Parana based on audits of the subsidiary's VAT filings for specified periods. In June 2011, tax authorities for the state of Santa Catarina issued assessments for tax, interest, and penalties for periods from 2006 through 2009 totaling approximately $15 million. In September 2014, tax authorities for the state of Parana issued an assessment for tax, interest, and penalties for periods from 2009 through 2014 totaling approximately $18 million. These amounts are based on the exchange rate for the Brazilian currency at March 31, 2017. Management of the operating subsidiary and outside counsel believe that errors were made by the tax authorities for both states in determining all or significant portions of these assessments and that various defenses support the subsidiary's positions. With respect to the Santa Catarina assessments, the subsidiary took appropriate steps to contest the full amount of the claims. As of March 31, 2017, a portion of the subsidiary's arguments had been accepted, and the outstanding assessment had been reduced, although interest on the remaining assessment has continued to accumulate. The reduced assessment, together with the related accumulated interest through the end of the current reporting period, totaled approximately $15 million at the March 31, 2017 exchange rate. The subsidiary is continuing to contest the full remaining amount of the assessment. While the range of reasonably possible loss is zero up to the full $15 million remaining assessment, based on the strength of the subsidiary's defenses, no loss within that range is considered probable at this time and no liability has been recorded at March 31, 2017. With respect to the Parana assessment, management of the subsidiary and outside counsel challenged the full amount of the claim. A significant portion of the Parana assessment was based on positions taken by the tax authorities that management and outside counsel believe deviate significantly from the underlying statutes and relevant case law. In addition, under the law, the subsidiary's tax filings for certain periods covered in the assessment were no longer open to any challenge by the tax authorities. In December 2015, the Parana tax authorities withdrew the initial claim and subsequently issued a new assessment covering the same tax periods. The new assessment totaled approximately $6 million at the March 31, 2017 exchange rate, reflecting a substantial reduction from the original $18 million assessment. Notwithstanding the reduction, management and outside counsel continue to believe that the new assessment is not supported by the underlying statutes and relevant case law and have taken the necessary steps to challenge the full amount of the claim. The range of reasonably possible loss is considered to be zero up to the full $6 million assessment. However, based on the strength of the subsidiary's defenses, no loss within that range is considered probable at this time and no liability has been recorded at March 31, 2017. In both states, the process for reaching a final resolution to the assessments is expected to be lengthy, and management is not currently able to predict when either case will be concluded. Should the subsidiary ultimately be required to pay any tax, interest, or penalties in either case, the portion paid for tax would generate value-added tax credits that the subsidiary may be able to recover. Other Contingent Liabilities Various subsidiaries of the Company are involved in other litigation and tax examinations incidental to their business activities. While the outcome of these matters cannot be predicted with certainty, management is vigorously defending the matters and does not currently expect that any of them will have a material adverse effect on the Company’s business or financial position. However, should one or more of these matters be resolved in a manner adverse to management’s current expectation, the effect on the Company’s results of operations for a particular fiscal reporting period could be material. Major Customers A material part of the Company’s business is dependent upon a few customers. The Company's six largest customers are Altria Group, Inc, British American Tobacco plc, China Tobacco International, Inc., Imperial Brands plc, Japan Tobacco, Inc., and Philip Morris International, Inc. In the aggregate, these customers have accounted for more than 65% of consolidated revenue for each of the past three fiscal years. For the fiscal years ended March 31, 2017, 2016, and 2015, revenue from Philip Morris International, Inc. was approximately $590 million, $640 million, and $580 million, respectively. For the same periods, British American Tobacco plc accounted for revenue of approximately $220 million, $230 million, and $220 million, respectively, and Imperial Brands plc accounted for revenue of approximately $230 million, $210 million, and $280 million, respectively. These customers primarily do business with various affiliates in the Company’s flue-cured and burley leaf tobacco operations. The loss of, or substantial reduction in business from, any of these customers could have a material adverse effect on the Company. Accounts Receivable The Company’s operating subsidiaries perform credit evaluations of customers’ financial condition prior to the extension of credit. Generally, accounts receivable are unsecured and are due within 30 days. When collection terms are extended for longer periods, interest and carrying costs are usually recovered. Credit losses are provided for in the financial statements, and historically such amounts have not been material. The allowance for doubtful accounts was approximately $4 million and $9 million at March 31, 2017 and 2016, respectively. At March 31, 2017 and 2016, net accounts receivable by reportable operating segment were as follows:
Acquisition of Partner's Interest in Tobacco Processing Joint Venture For a number of years, the Company held a 50% joint venture ownership interest in Procesadora Unitab, S.A., a tobacco processing entity in Guatemala. In December 2015, the Company acquired the 50% interest held by its joint venture partner for $6 million in cash. In accordance with Accounting Standards Codification Topic 805, "Business Combinations" (“ASC 805”), the transaction was accounted for using the acquisition method of accounting, which required the Company to record all underlying assets and liabilities of the entity at their fair values as of the transaction date and to consolidate the financial statements of the entity. Based on those fair values, the Company recorded a pretax gain of $3.4 million on the transaction during the third quarter of fiscal year 2016. The gain is reported in Other Income in the consolidated statements of income. The purchase price of the newly-acquired 50% interest approximated fair value, and the gain resulted from remeasuring the Company’s original 50% ownership interest in the entity to fair value. No goodwill or identifiable intangible assets were recorded as part of the transaction, and acquisition-related costs were not significant. The allocation of the fair values to the net assets acquired was complete at the time the transaction was recorded. Based on the nature of its operations, the net assets of the acquired entity are comprised primarily of property, plant, and equipment, and the fair values recorded for those assets totaled approximately $12 million based primarily on a third-party appraisal. The acquired entity is included in the Company’s North America operating segment. Reversal of Valuation Allowance on IPI Tax Credits in Brazil During fiscal year 2014, a longstanding lawsuit filed by the Company’s operating subsidiary in Brazil related to certain excise tax credits (IPI tax credits) was concluded following a decision in the subsidiary’s favor in the Brazilian federal courts and the expiration of the time period for the government to appeal the decision. IPI tax credits were established under Brazilian tax laws to allow recovery of a portion of the excise taxes paid on manufactured products when those products are sold in export markets; however, the Brazilian tax authorities subsequently issued certain regulations that prevented the subsidiary from claiming those credits. The lawsuit filed by the subsidiary challenged the denial of the tax credits based on the law. The final court decision entitled the subsidiary to approximately $104 million of IPI tax credits (based on the exchange rate at the date of the decision), which were eligible to be used to offset other Brazilian federal tax payments for a period of up to five years from the date the subsidiary’s right to claim the credits was confirmed. The subsidiary recorded a gain on the favorable outcome of the case in fiscal year 2014, which was net of a valuation allowance based on estimates of the tax credits that were not probable of being realized prior to their expiration. In the fourth quarter of fiscal year 2015, based on actual realization of the tax credits to date, as well as updated tax payment projections for future periods, revised estimates indicated that all remaining IPI tax credits would be fully utilized prior to their expiration. On that basis, the subsidiary reversed the full valuation allowance on the credits of $12.7 million (based on the then current exchange rate) during that quarter. That reversal was reported in Other Income in the consolidated statement of income. |
Operating Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segments | OPERATING SEGMENTS Universal’s operations involve selecting, procuring, processing, packing, storing, shipping, and financing leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products throughout the world. Through various operating subsidiaries located in tobacco-growing countries around the world and significant ownership interests in unconsolidated affiliates, the Company processes and/or sells flue-cured and burley tobaccos, dark air-cured tobaccos, and oriental tobaccos. Flue-cured, burley, and oriental tobaccos are used principally in the manufacture of cigarettes, and dark air-cured tobaccos are used mainly in the manufacture of cigars, pipe tobacco, and smokeless tobacco products. A substantial portion of the Company’s revenues are derived from sales to a limited number of large, multinational cigarette manufacturers. The principal approach used by management to evaluate the Company’s performance is by geographic region, although the dark air-cured and oriental tobacco businesses are each evaluated on the basis of their worldwide operations. Oriental tobacco operations consist principally of a 49% interest in an affiliate, and the performance of those operations is evaluated based on the Company’s equity in the pretax earnings of that affiliate. Under this structure, the Company has the following primary operating segments: North America, South America, Africa, Europe, Asia, Dark Air-Cured, Oriental, and Special Services. North America, South America, Africa, Europe, and Asia are primarily involved in flue-cured and/or burley leaf tobacco operations for supply to cigarette manufacturers. The Dark Air-Cured group supplies dark air-cured tobacco principally to manufacturers of cigars, pipe tobacco, and smokeless tobacco products, and the Oriental business supplies oriental tobacco to cigarette manufacturers. From time to time, the segments may trade in tobaccos that differ from their main varieties, but those activities are not significant to their overall results. Special Services includes the Company's laboratory services business, which provides physical and chemical product testing and smoke testing for customers, its food ingredients business, as well as its liquid nicotine joint venture. The five regional operating segments serving the Company’s cigarette manufacturer customer base share similar characteristics in the nature of their products and services, production processes, class of customer, product distribution methods, and regulatory environment. Based on the applicable accounting guidance, four of the regions – South America, Africa, Europe, and Asia – are aggregated into a single reporting segment, “Other Regions”, because they also have similar economic characteristics. North America is reported as an individual operating segment because its economic characteristics differ from the other regions, generally because its operations require lower working capital investments for crop financing and inventory. The Dark Air-Cured, Oriental and Special Services segments, which have dissimilar characteristics in some of the categories mentioned above, are reported together as “Other Tobacco Operations” because each is below the measurement threshold for separate reporting. Universal incurs overhead expenses related to senior management, sales, finance, legal, and other functions that are centralized at its corporate headquarters, as well as functions performed at several sales and administrative offices around the world. These overhead expenses are allocated to the various operating segments, generally on the basis of tobacco volumes planned to be purchased and/or processed. Management believes this method of allocation is representative of the value of the related services provided to the operating segments. The Company evaluates the performance of its segments based on operating income after allocated overhead expenses, plus equity in the pretax earnings of unconsolidated affiliates. Reportable segment data as of, or for, the fiscal years ended March 31, 2017, 2016, and 2015, is as follows:
Geographic data as of, or for, the fiscal years ended March 31, 2017, 2016, and 2015, is presented below. Sales and other operating revenues are attributed to individual countries based on the final destination of the shipment. Long-lived assets generally consist of net property, plant, and equipment, goodwill, and other intangibles.
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Accumulated Other Comprehensive Income (Loss), Net of Tax | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in the balances for each component of accumulated other comprehensive income (loss) attributable to the Company for the fiscal years ended March 31, 2017, 2016, and 2015:
(1)Gain (loss) on foreign currency cash flow hedges related to forecast purchases of tobacco is reclassified from accumulated other comprehensive income (loss) to cost of goods sold when the tobacco is sold to customers. See Note 8 for additional information. (2)Gain (loss) on interest rate cash flow hedges is reclassified from accumulated other comprehensive income (loss) to interest expense when the related interest payments are made on the debt or upon termination of the interest rate swap agreements prior to their scheduled maturity dates. See Note 8 for additional information. (3)These items arise from the remeasurement of the assets and liabilities of the Company's defined benefit pension plans. Those remeasurements are made on an annual basis at the end of the fiscal year. See Note 10 for additional information. (4)This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost. See Note 10 for additional information. |
Unaudited Quarterly Financial Data |
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Unaudited Quarterly Financial Data | UNAUDITED QUARTERLY FINANCIAL DATA Unaudited quarterly financial data for the fiscal years ended March 31, 2017 and 2016 is provided in the table below. Due to the seasonal nature of the Company's business, management believes it is generally more meaningful to focus on cumulative rather than quarterly results.
Significant items included in the quarterly results were as follows: Fiscal Year Ended March 31, 2017
Fiscal Year Ended March 31, 2016
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Schedule II - Valuation And Qualifying Accounts |
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Schedule II - Valuation And Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts Universal Corporation Fiscal Years Ended March 31, 2017, 2016, and 2015
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Nature Of Operations And Significant Accounting Policies Nature of Operations and Significant Accounting Policies (Policies) |
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Nature Of Operations [Policy Text Block] | Nature of Operations Universal Corporation, which together with its subsidiaries is referred to herein as “Universal” or the “Company,” is the leading global leaf tobacco supplier. The Company conducts business in over 30 countries, primarily in major tobacco-producing regions of the world. |
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Consolidation, Policy [Policy Text Block] | Consolidation The consolidated financial statements include the accounts of Universal Corporation and all domestic and foreign subsidiaries in which the Company maintains a controlling financial interest. Control is generally determined based on a voting interest of greater than 50%, such that Universal controls all significant corporate activities of the subsidiary. All significant intercompany accounts and transactions are eliminated in consolidation. The equity method of accounting is used for investments in companies where Universal Corporation has a voting interest of 20% to 50%. These investments are accounted for under the equity method because Universal exercises significant influence over those companies, but not control. The Company received dividends totaling $5.1 million in fiscal year 2017, $3.4 million in fiscal year 2016, and $5.2 million in fiscal year 2015, from companies accounted for under the equity method. Investments where Universal has a voting interest of less than 20% are not significant and are accounted for under the cost method. Under the cost method, the Company recognizes earnings upon its receipt of dividends to the extent they represent a distribution of retained earnings. The Company's 49% ownership interest in Socotab L.L.C. (“Socotab”), a leading supplier of oriental tobaccos with operations located principally in Eastern Europe and Turkey, is the primary investment accounted for under the equity method. The investment in Socotab is an important part of the Company's overall product and service arrangements with its major customers. As discussed further below, the Company reviews the carrying value of its investments in unconsolidated affiliates on a regular basis and considers whether any factors exist that might indicate an impairment in value that is other than temporary. At March 31, 2017, the Company determined that no such factors existed with respect to the investment in Socotab. The Company, together with Socotab management, regularly evaluates the outlook for the business, and an impairment charge could be recorded in a future period if it is determined that the fair value of the investment is less than the carrying value and the decline in value is not temporary. In fiscal year 2006, the Company deconsolidated its operations in Zimbabwe under accounting requirements that apply under certain conditions to foreign subsidiaries that are subject to foreign exchange controls and other government restrictions. Since that time, the investment has been accounted for using the cost method, as required under the accounting guidance. The investment in the Zimbabwe operations was zero at March 31, 2017 and 2016. The Company has a net foreign currency translation loss associated with the Zimbabwe operations of approximately $7.2 million, which remains a component of accumulated other comprehensive loss. As a regular part of its reporting, the Company reviews the conditions that resulted in the deconsolidation of the Zimbabwe operations to confirm that such accounting treatment is still appropriate. Dividends from the Zimbabwe operations are recorded in income in the period received. The Company holds less than a 100% financial interest in certain consolidated subsidiaries. The net income and shareholders’ equity attributable to the noncontrolling interests in these subsidiaries are reported on the face of the consolidated financial statements. During fiscal years 2017, 2016, and 2015, there were no changes in the Company’s ownership percentage in any of these subsidiaries. |
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Investment, Policy [Policy Text Block] | Investments in Unconsolidated Affiliates The Company’s equity method investments and its cost method investments, which include its Zimbabwe operations, are non-marketable securities. Universal reviews such investments for impairment whenever events or changes in circumstances indicate that the carrying amount of an investment may not be recovered. For example, the Company would review such an investment for impairment if the investee were to lose a significant customer, suffer a large reduction in sales margins, experience a major change in its business environment, or undergo any other significant change in its normal business. In assessing the recoverability of equity or cost method investments, the Company follows the applicable accounting guidance in determining the fair value of the investments. In most cases, this involves the use of discounted cash flow models (Level 3 of the fair value hierarchy under the accounting guidance). If the fair value of an equity or cost method investee is determined to be lower than its carrying value, an impairment loss is recognized. The determination of fair value using discounted cash flow models is normally not based on observable market data from independent sources and therefore requires significant management judgment with respect to estimates of future operating earnings and the selection of an appropriate discount rate. The use of different assumptions could increase or decrease estimated future operating cash flows, and the discounted value of those cash flows, and therefore could increase or decrease any impairment charge related to these investments. In its consolidated statements of income, the Company reports its proportional share of the earnings of unconsolidated affiliates accounted for on the equity method based on the pretax earnings of those affiliates, as permitted under the applicable accounting guidance. All applicable foreign and U.S. income taxes are provided on these earnings and reported as a component of consolidated income tax expense. For unconsolidated affiliates located in foreign jurisdictions, repatriation of the Company’s share of the earnings through dividends is assumed in determining consolidated income tax expense. The following table provides a reconciliation of (1) equity in the pretax earnings of unconsolidated affiliates, as reported in the consolidated statements of income to (2) equity in the net income of unconsolidated affiliates, net of dividends, as reported in the consolidated statements of cash flows for the fiscal years ended March 31, 2017, 2016, and 2015:
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Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share The Company calculates basic earnings per share based on earnings available to common shareholders after payment of dividends on the Company’s Series B 6.75% Convertible Perpetual Preferred Stock prior to its conversion in fiscal year 2017 (see Note 11). The calculation uses the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed in a similar manner using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential common shares include unvested restricted stock units and performance share awards that are assumed to be fully vested and paid out in shares of common stock, dilutive stock options and stock appreciation rights that were assumed to be exercised, and shares of convertible perpetual preferred stock that were assumed to be converted when the effect was dilutive. In periods when the effect of the convertible perpetual preferred stock was dilutive and these shares were assumed to be converted into common stock, dividends paid on the preferred stock were excluded from the calculation of diluted earnings per share. Calculations of earnings per share for the fiscal years ended March 31, 2017, 2016, and 2015, are provided in Note 3. |
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Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents All highly liquid investments with a maturity of three months or less at the time of purchase are classified as cash equivalents. |
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Advances to Suppliers [Policy Text Block] | Advances to Suppliers In many sourcing origins where the Company operates, it provides agronomy services and seasonal advances of seed, fertilizer, and other supplies to tobacco farmers for crop production, or makes seasonal cash advances to farmers for the procurement of those inputs. These advances are short term, are repaid upon delivery of tobacco to the Company, and are reported in advances to suppliers in the consolidated balance sheets. In several origins, the Company has made long-term advances to tobacco farmers to finance curing barns and other farm infrastructure. In some years, due to low crop yields and other factors, individual farmers may not deliver sufficient volumes of tobacco to fully repay their seasonal advances, and the Company may extend repayment of those advances into future crop years. The long-term portion of advances is included in other noncurrent assets in the consolidated balance sheets. Both the current and the long-term portions of advances to suppliers are reported net of allowances recorded when the Company determines that amounts outstanding are not likely to be collected. Short-term and long-term advances to suppliers totaled approximately $134 million at both March 31, 2017 and 2016. The related valuation allowances totaled $27 million at March 31, 2017, and $29 million at March 31, 2016, and were estimated based on the Company’s historical loss information and crop projections. The allowances were reduced by net recoveries of approximately $0.9 million in fiscal year 2017, but increased by net provisions for estimated uncollectible amounts of approximately $0.8 million in fiscal year 2016 and $3.7 million in fiscal year 2015. These provisions are included in selling, general, and administrative expenses in the consolidated statements of income. Interest on advances is recognized in earnings upon the farmers’ delivery of tobacco in payment of principal and interest. Advances on which interest accrual had been discontinued totaled approximately $11 million at both March 31, 2017 and 2016. |
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Inventory, Policy [Policy Text Block] | Inventories Tobacco inventories are valued at the lower of cost or market. Raw materials primarily consist of unprocessed leaf tobacco, which is clearly identified by type and grade at the time of purchase. The Company tracks the costs associated with this tobacco in the final product lots, and maintains this identification through the time of sale. This method of cost accounting is referred to as the specific cost or specific identification method. The predominant cost component of the Company’s inventories is the cost of the unprocessed tobacco. Direct and indirect processing costs related to these raw materials are capitalized and allocated to inventory in a systematic manner. The Company does not capitalize any interest or sales-related costs in inventory. Freight costs are recorded in cost of goods sold. Other inventories consist primarily of seed, fertilizer, packing materials, and other supplies, and are valued principally at the lower of average cost or market. |
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Recoverable Value-Added Tax Credits [Policy Text Block] | Recoverable Value-Added Tax Credits In many foreign countries, the Company’s local operating subsidiaries pay significant amounts of value-added tax (“VAT”) on purchases of unprocessed and processed tobacco, crop inputs, packing materials, and various other goods and services. In some countries, VAT is a national tax, and in other countries it is assessed at the state level. Items subject to VAT vary from jurisdiction to jurisdiction, as do the rates at which the tax is assessed. When tobacco is sold to customers in the country of origin, the operating subsidiaries generally collect VAT on those sales. The subsidiaries are normally permitted to offset their VAT payments against the collections and remit only the incremental VAT collections to the tax authorities. When tobacco is sold for export, VAT is normally not assessed. In countries where tobacco sales are predominately for export markets, VAT collections generated on downstream sales are often not sufficient to fully offset the subsidiaries’ VAT payments. In those situations, unused VAT credits can accumulate. Some jurisdictions have procedures that allow companies to apply for refunds of unused VAT credits from the tax authorities, but the refund process often takes an extended period of time, and it is not uncommon for refund applications to be challenged or rejected in part on technical grounds. Other jurisdictions may permit companies to sell or transfer unused VAT credits to third parties in private transactions, although approval for such transactions must normally be obtained from the tax authorities, limits on the amounts that can be transferred may be imposed, and the proceeds realized may be heavily discounted from the face value of the credits. Due to these factors, local operating subsidiaries in some countries can accumulate significant balances of VAT credits over time. The Company reviews these balances on a regular basis and records valuation allowances on the credits to reflect amounts that are not expected to be recovered, as well as discounts anticipated on credits that are expected to be sold or transferred. At March 31, 2017 and 2016, the aggregate balances of recoverable tax credits held by the Company’s subsidiaries totaled approximately $45 million and $52 million, respectively, and the related valuation allowances totaled approximately $13 million and $19 million, respectively. The net balances are reported in other current assets and other noncurrent assets in the consolidated balance sheets. |
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Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Depreciation of plant and equipment is based upon historical cost and the estimated useful lives of the assets. Depreciation is calculated primarily using the straight-line method. Buildings include tobacco processing and blending facilities, offices, and warehouses. Machinery and equipment consists of processing and packing machinery and transport, office, and computer equipment. Estimated useful lives range as follows: buildings - 15 to 40 years; processing and packing machinery - 3 to 11 years; transport equipment - 3 to 10 years; and office and computer equipment - 3 to 10 years. Where applicable and material in amount, the Company capitalizes related interest costs during periods that property, plant and equipment are being constructed or made ready for service. No interest was capitalized in fiscal years 2017, 2016, or 2015. |
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Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangibles Goodwill and other intangibles principally consist of the excess of the purchase price of acquired companies over the fair value of the net assets. Goodwill is carried at the lower of cost or fair value. Accounting Standards Codification Topic 350 (“ASC 350”) permits companies to base their initial assessments of potential goodwill impairment on qualitative factors, and the Company elected to use that approach at March 31, 2017 and 2016. Those factors did not indicate any potential impairment of the Company's recorded goodwill. Reporting units are distinct operating subsidiaries or groups of subsidiaries that typically compose the Company’s business in a specific country or location. Goodwill is allocated to reporting units based on the country or location to which a specific acquisition relates, or by allocation based on expected future cash flows if the acquisition relates to more than one country or location. The majority of the Company’s goodwill relates to its reporting unit in Brazil. Significant adverse changes in the operations or estimated future cash flows for a reporting unit with recorded goodwill could result in an impairment charge. No charges for goodwill impairment were recorded in fiscal years 2017, 2016, or 2015. |
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Impairment or Disposal of Long-Lived Intangible Assets, Impairment, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events, changes in business conditions, or other circumstances provide an indication that such assets may be impaired. Potential impairment is initially assessed by comparing management’s undiscounted estimates of future cash flows from the use or disposition of the assets to their carrying value. If the carrying value exceeds the undiscounted cash flows, an impairment charge is recorded to reduce the carrying value of the asset to its fair value determined in accordance with the accounting guidance. In many cases, this involves the use of discounted cash flow models that are not based on observable market data from independent sources (Level 3 of the fair value hierarchy under the accounting guidance). In fiscal year 2017, the Company incurred impairment charges of $2.3 million on factory and equipment assets as a result of the Company's decision to close its tobacco processing facility in Hungary (see Note 2). No significant charges for the impairment of long-lived assets were recorded during fiscal years 2016 or 2015. |
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Income Tax, Policy [Policy Text Block] | Income Taxes The Company provides deferred income taxes on temporary differences between the book and tax basis of its assets and liabilities. Those differences arise principally from employee benefit accruals, depreciation, deferred compensation, undistributed earnings of unconsolidated affiliates, undistributed earnings of foreign subsidiaries, goodwill, and valuation allowances on farmer advances and value-added tax credits. |
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Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Values of Financial Instruments The fair value of the Company’s long-term debt, disclosed in Note 6, approximates the carrying amount since the variable interest rates in the underlying credit agreement reflect the market interest rates that were available to the Company at March 31, 2017. In periods when fixed-rate obligations are outstanding, fair values are estimated using market prices where they are available and discounted cash flow models based on current incremental borrowing rates for similar classes of borrowers and borrowing arrangements. The fair values of interest rate swap agreements designated as cash flow hedges and used to fix the variable benchmark rate on outstanding long-term debt are determined separately and recorded in other long-term liabilities. Except for interest rate swaps and forward foreign currency exchange contracts that are discussed below, the fair values of all other assets and liabilities that qualify as financial instruments approximate their carrying amounts. |
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Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments The Company recognizes all derivatives on the balance sheet at fair value. Interest rate swaps and forward foreign currency exchange contracts are used from time to time to manage interest rate risk and foreign currency risk. The Company enters into such contracts only with counterparties of good standing. The credit exposure related to non-performance by the counterparties and the Company is considered in determining the fair values of the derivatives, and the effect has not been material to the financial statements or operations of the Company. Additional disclosures related to the Company’s derivatives and hedging activities are provided in Note 8. |
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Foreign Currency Transactions and Translations Policy [Policy Text Block] | Translation and Remeasurement of Foreign Currencies The financial statements of foreign subsidiaries having the local currency as the functional currency are translated into U.S. dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates applicable to each reporting period for results of operations. Adjustments resulting from translation of financial statements are reflected as a separate component of other comprehensive income or loss. The financial statements of foreign subsidiaries having the U.S. dollar as the functional currency, with certain transactions denominated in a local currency, are remeasured into U.S. dollars. The remeasurement of local currency amounts into U.S. dollars creates remeasurement gains and losses that are included in earnings as a component of selling, general, and administrative expense. The Company recognized net remeasurement losses of $9.3 million in fiscal year 2017, $22.5 million in fiscal year 2016, and $28.8 million in fiscal year 2015. Foreign currency transactions and forward foreign currency exchange contracts that are not designated as hedges generate gains and losses when they are settled or when they are marked to market under the prescribed accounting guidance. These transaction gains and losses are also included in earnings as a component of selling, general, and administrative expenses. The Company recognized net foreign currency transaction losses of $1.3 million in fiscal year 2017, net transaction gains of $8.0 million in fiscal year 2016, and net transaction gains of $17.7 million in fiscal year 2015. |
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Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue from the sale of tobacco is recognized when title and risk of loss is transferred to the customer and the earnings process is complete. Substantially all sales revenue is recorded based on the physical transfer of products to customers. A large percentage of the Company’s sales are to major multinational manufacturers of consumer tobacco products. The Company works closely with those customers to understand and plan for their requirements for volumes, styles, and grades of leaf tobacco from its various growing regions, and extensive coordination is maintained on an ongoing basis to determine and satisfy their requirements for physical shipment of processed tobacco. The customers typically specify, in sales contracts and in shipping documents, the precise terms for transfer of title and risk of loss for the tobacco. Customer returns and rejections are not significant, and the Company’s sales history indicates that customer-specific acceptance provisions are consistently met upon transfer of title and risk of loss. While most of the Company’s revenue consists of tobacco that is purchased from farmers, processed and packed in its factories, and then sold to customers, some revenue is earned from processing tobacco owned by customers. These arrangements usually exist in specific markets where the customers contract directly with farmers for leaf production, and they have accounted for less than 5% of total revenue on an annual basis through the fiscal year ended March 31, 2017. Processing and packing of leaf tobacco is a short-duration process. Under normal operating conditions, raw tobacco that is placed into the production line exits as processed and packed tobacco within one hour, and is then later transported to customer-designated storage facilities. The revenue for these services is recognized when processing is completed, and the Company’s operating history indicates that customer requirements for processed tobacco are consistently met upon completion of processing. |
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Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Share-based payments, such as grants of restricted stock units, performance share awards, restricted stock, stock appreciation rights, and stock options, are measured at fair value and reported as expense in the financial statements over the requisite service period. Additional disclosures related to stock-based compensation are included in Note 12. |
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Use of Estimates, Policy [Policy Text Block] | Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
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Accounting Pronouncements [Policy Text Block] | Accounting Pronouncements Pronouncements Recently Adopted In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 was effective for fiscal years beginning after December 31, 2015. The Company adopted ASU 2015-03 effective for the quarter ending June 30, 2016, which was the first quarter of the fiscal year ending March 31, 2017. The implementation of ASU 2015-03, which required retrospective application, resulted in a $1.6 million reclassification of unamortized debt issuance costs from other noncurrent assets to long-term debt for the comparative prior year ended March 31, 2016. In April 2015, the FASB issued Accounting Standards Update 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”). ASU 2015-05 requires customers who enter into a cloud computing arrangement that includes a software license to account for the arrangement as an intangible asset. If the cloud computing arrangement does not include a software license, the arrangement is accounted for as a service contract. The guidance was effective for fiscal years beginning after December 31, 2015, and allows for retrospective or prospective adoption. The Company prospectively adopted ASU 2015-05 effective as of April 1, 2016, the beginning of fiscal year 2017. The Company’s adoption of ASU 2015-05 did not have a material impact on its consolidated financial statements. In May 2015, the FASB issued Accounting Standards Update No. 2015-07, "Fair Value Measurement, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share or its Equivalent" ("ASU 2015-07"). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and eliminates certain disclosures for investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The Company adopted ASU 2015-07 effective as of April 1, 2016, the beginning of fiscal year 2017. Disclosures for all periods presented in Note 9 - Fair Value Measurements were adjusted accordingly. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718)" ("ASU 2016-09"). ASU 2016-09 provides simplification for the accounting for employee stock-based payment transactions, including the related income tax consequences, the classification of awards as either equity or liabilities, and the classification of transactions in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company elected to early-adopt ASU 2016-09 effective April 1, 2016, which was the beginning of its fiscal year ending March 31, 2017. As required by the guidance, employee tax withholding payments and excess tax benefits resulting from stock-based compensation have been classified as financing activities and operating activities, respectively, in the consolidated statements of cash flows for all periods presented. Pronouncements to be Adopted in Future Periods In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes substantially all of the current revenue recognition guidance under U.S. generally accepted accounting principles (“U.S. GAAP”). ASU 2014-09 was developed under a joint project with the International Accounting Standards Board (“IASB”) to improve and converge the existing revenue recognition accounting guidance in U.S. GAAP and International Accounting Standards. Under ASU 2014-09, the central underlying principle is to recognize revenues when promised goods or services are transferred to customers at an amount determined by the consideration a company expects to receive for those goods or services. The guidance outlines a five-step process for determining the amount and timing of revenue to be recognized from those arrangements. It is more principles-based than the existing guidance under U.S. GAAP, and therefore is expected to require more management judgment and involve more estimates than the current guidance. ASU 2014-09 is effective for annual periods beginning after December 15, 2017, including all interim periods within the year of adoption. Companies are allowed to select between two transition methods: (1) a full retrospective transition method with the application of the new guidance to each prior reporting period presented, or (2) a modified retrospective transition method that recognizes the cumulative effect on prior periods at the date of adoption together with additional footnote disclosures. Since the issuance of ASU 2014-09, the FASB has issued several amendments to provide additional supplemental guidance on certain aspects of the original pronouncement. Universal expects to adopt ASU 2014-09 and the related supplemental amendments effective April 1, 2018, which is the beginning of its fiscal year ending March 31, 2019. The Company formed a cross-functional project team to review its current revenue accounting policies and control processes, to complete a comprehensive analysis of the new guidance, and to determine the effect it will have on revenue recognition and financial statement disclosures for all customer contracts. The team has classified its customer contracts into primary revenue streams and is currently in the process of completing individual contract reviews and making final determinations with respect to provisions in the new guidance that may impact the timing of revenue recognition for certain customer arrangements. As these activities remain underway at this time, the Company is not currently able to conclude on the impact that ASU 2014-09 will have on its consolidated financial statements. Although a final determination has not been made, it is likely that the Company will select the modified retrospective transition method as its method of adoption. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires that most inventory be measured at the lower of cost or net realizable value. ASU 2015-11 defines net realizable value as the "estimated selling price in the ordinary course of business, less reasonable predictable costs of completion, disposal, and transportation." ASU 2015-11 is effective for fiscal years beginning after December 31, 2016, and will be adopted effective April 1, 2017, which is the beginning of its fiscal year ending March 31, 2018. ASU 2015-11 will be applied prospectively after the date of adoption, as required by the guidance, and will not have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 “Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities” ("ASU 2016-01"). ASU 2016-01 requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). This guidance is effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact that the adoption of ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 requires a lessee to recognize lease payment obligations as a lease liability and the corresponding right-of-use asset as a leased asset in the balance sheet for the term of the lease. This guidance supersedes Topic 840 “Leases” and is effective for fiscal years beginning after December 15, 2018. The Company will be required to adopt ASU 2016-02 effective April 1, 2019, which is the beginning of its fiscal year ending March 31, 2020, and is currently evaluating the impact that the updated guidance will have on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, "Intangibles - Goodwill and Other (Topic 350)" ("ASU 2017-04"). ASU 2017-04 eliminated Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of the reporting unit's goodwill with the carrying amount of the goodwill. The guidance is effective for fiscal years beginning after December 15, 2019. The Company will be required to adopt ASU 2017-04 effective April 1, 2020, which is the beginning of its fiscal year ending March 31, 2021, and is currently evaluating the impact that the updated guidance will have on its consolidated financial statements. In March 2017, the FASB issued Accounting Standards Update No. 2017-07, "Compensation - Retirement Benefits (Topic 715)" ("ASU 2017-07"). ASU 2017-07 requires that an employer report the service cost component of pension or other postretirement benefits expense in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, the line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The guidance is effective for fiscal years beginning after December 15, 2016. The Company will be required to adopt ASU 2017-07 effective April 1, 2017, which is the beginning of its fiscal year ending March 31, 2018. The line item classification changes required by the new guidance will not impact the Company's pretax earnings or net income; however, operating income and interest expense will increase by offsetting amounts that are not expected to be material to the Company's consolidated financial statements. |
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Reclassifications [Policy Text Block] | Reclassifications Certain prior year amounts have been reclassified to conform to the current year’s presentation. |
Nature Of Operations And Significant Accounting Policies (Tables) |
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Reconciliation Of Equity In Unconsolidated Affiliates | The following table provides a reconciliation of (1) equity in the pretax earnings of unconsolidated affiliates, as reported in the consolidated statements of income to (2) equity in the net income of unconsolidated affiliates, net of dividends, as reported in the consolidated statements of cash flows for the fiscal years ended March 31, 2017, 2016, and 2015:
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Restructuring Costs (Tables) |
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Restructuring Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Restructuring Costs | A summary of the restructuring and impairment costs incurred during the fiscal years ended March 31, 2017, 2016, and 2015, is as follows:
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Reconciliation Of Company's Liability For The Restructuring Costs | A reconciliation of the Company’s liability for employee termination benefits and other restructuring costs for fiscal years 2015 through 2017 is as follows:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation Of Basic And Diluted Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings per share:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | For the fiscal years ended March 31, 2017, 2016, and 2015, the Company had the following potentially dilutive securities (stock appreciation rights) outstanding that were not included in the computation of diluted earnings per share because their effect would have been antidilutive:
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Income Taxes (Tables) |
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Schedule Of Components of Income Tax Expense | Income taxes for the fiscal years ended March 31, 2017, 2016, and 2015 consisted of the following:
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Schedule Of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal rate to the Company’s effective income tax rate is as follows:
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Schedule Of U.S. And Foreign Components Of Income Before Income Taxes And Other Items | The U.S. and foreign components of income before income taxes were as follows:
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Schedule Of Deferred Tax Assets and Liabilities | Significant components of deferred tax liabilities and assets were as follows:
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Schedule Of Combined Income Tax Expense (Benefit) Allocable To Continuing Operations, Other Comprehensive Income, And Adjustments To Shareholders' Equity | The combined income tax expense (benefit) allocable to continuing operations, other comprehensive income, and direct adjustments to shareholders' equity was as follows:
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Reconciliation Of The Gross Liability For Uncertain Tax Positions | A reconciliation of the beginning and ending balance of the gross liability for uncertain tax positions for the fiscal years ended March 31, 2017, 2016 and 2015, is as follows:
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Long-Term Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Long-Term Debt | The Company's long-term debt at March 31, 2017 and 2016 consisted of the following:
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Derivatives And Hedging Activities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amount of Forward Contracts | The aggregate U.S. dollar notional amount of forward contracts entered for these purposes during fiscal years 2017, 2016, and 2015 was as follows:
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Effect Of Derivative Financial Instruments On The Consolidated Statements Of Income | The table below outlines the effects of the Company’s use of derivative financial instruments on the consolidated statements of income for the fiscal years ended March 31, 2017, 2016, and 2015.
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Effect Of Derivative Financial Instruments On The Consolidated Balance Sheets | The table below outlines the effects of the Company’s derivative financial instruments on the consolidated balance sheets at March 31, 2017 and 2016:
Substantially all of the Company's forward foreign currency exchange contracts are subject to master netting arrangements, whereby the right to offset occurs in the event of default by a participating party. The Company has elected to present these contracts on a gross basis in the consolidated balance sheets. |
Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | At March 31, 2017 and 2016, the Company had certain financial assets and financial liabilities that were required to be measured and reported at fair value on a recurring basis. These assets and liabilities are listed in the tables below and are classified based on how their values were determined under the fair value hierarchy or the NAV practical expedient:
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | A reconciliation of the change in the balance of the financial liability for guarantees of bank loans to tobacco growers (Level 3) for the fiscal years ended March 31, 2017 and 2016 is provided below.
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Pension And Other Postretirement Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions Used To Compute Net Periodic Benefit Cost And Benefit Obligations | Assumptions used for financial reporting purposes to compute net periodic benefit cost and benefit obligations for the Company's primary defined benefit plans were as follows:
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Benefit Obligations, Plan Assets, And Funded Status | The following table reflects the changes in benefit obligations and plan assets in 2017 and 2016, as well as the funded status of the plans at March 31, 2017 and 2016:
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Funded Status In Consolidated Balance Sheets | The funded status of the Company’s plans at the end of fiscal years 2017 and 2016 was reported in the consolidated balance sheets as follows:
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Additional Information On Funded Status | Additional information on the funded status of the Company’s plans as of the respective measurement dates for the fiscal years ended March 31, 2017 and 2016, is as follows:
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Components Of Company's Net Periodic Benefit Cost | The components of the Company’s net periodic benefit cost were as follows:
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Recognized In Accumulated Other Comprehensive Income (Loss) On Pretax Basis | The amounts recognized in other comprehensive income or loss for fiscal years 2017 and 2016 and the amounts included in accumulated other comprehensive loss at the end of those fiscal years are shown below. All amounts shown are before allocated income taxes.
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Weighted-Average Target Pension Asset Allocation And Target Ranges By Major Asset Category | The weighted–average target pension asset allocation and target ranges at the March 31, 2017 measurement date and the actual asset allocations at the March 31, 2017 and 2016 measurement dates by major asset category were as follows:
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Estimated Future Benefit Payments | Estimated future benefit payments to be made from the Company’s plans are as follows:
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Fair Values Of The Assets Under Fair Value Hierarchy | Fair values of the assets of the Company’s pension plans as of March 31, 2017 and 2016, classified based on how their values were determined under the fair value hierarchy are as follows:
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Common And Preferred Stock Common and Preferred Stock (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Repurchases of Shares [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Repurchases Of Shares [Table Text Block] | Share repurchases under the programs for the fiscal years ended March 31, 2017, 2016, and 2015 were as follows:
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Executive Stock Plans And Stock-Based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Stock Option And SAR Activity | The following tables summarize the Company’s stock option and SAR activity and related information for fiscal years 2015 through 2017:
As indicated in the table, with the exercise and/or expiration of all remaining SARs during fiscal year 2017, there were no SARs or stock options outstanding at March 31, 2017. |
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Intrinsic Value And Fair Value Of SARs |
Intrinsic value in the above table is based on the difference between the market price of the underlying shares at the exercise date and the exercise price of the SARs or stock options. |
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Summary Of RSU, Restricted Stock, And PSA Activity | The following table summarizes the Company’s RSU, restricted stock, and PSA activity for fiscal years 2015 through 2017:
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Stock-Based Compensation Expense And Related Income Tax Benefit Recognized | For the fiscal years ended March 31, 2017, 2016, and 2015, total stock-based compensation expense and the related income tax benefit recognized were as follows:
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Commitments And Other Matters (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments And Other Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Accounts Receivable By Reportable Operating Segment | At March 31, 2017 and 2016, net accounts receivable by reportable operating segment were as follows:
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Operating Segments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Results For The Company's Reportable Segments | Reportable segment data as of, or for, the fiscal years ended March 31, 2017, 2016, and 2015, is as follows:
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Schedule Of Sales And Long-Lived Assets By Country |
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Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the balances for each component of accumulated other comprehensive income (loss) attributable to the Company for the fiscal years ended March 31, 2017, 2016, and 2015:
(1)Gain (loss) on foreign currency cash flow hedges related to forecast purchases of tobacco is reclassified from accumulated other comprehensive income (loss) to cost of goods sold when the tobacco is sold to customers. See Note 8 for additional information. (2)Gain (loss) on interest rate cash flow hedges is reclassified from accumulated other comprehensive income (loss) to interest expense when the related interest payments are made on the debt or upon termination of the interest rate swap agreements prior to their scheduled maturity dates. See Note 8 for additional information. (3)These items arise from the remeasurement of the assets and liabilities of the Company's defined benefit pension plans. Those remeasurements are made on an annual basis at the end of the fiscal year. See Note 10 for additional information. (4)This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost. See Note 10 for additional information. |
Unaudited Quarterly Financial Data (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Quarterly Financial Data |
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Nature Of Operations And Significant Accounting Policies (Reconciliation Of Equity In Unconsolidated Affiliates) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
||||||
Accounting Policies [Abstract] | ||||||||
Equity in pretax earnings reported in the consolidated statements of income | [1] | $ 5,774 | $ 5,422 | $ 7,137 | ||||
Less: Equity in income taxes | (1,092) | (2,156) | (834) | |||||
Equity in net income | 4,682 | 3,266 | 6,303 | |||||
Less: Dividends received on investments | [2] | 5,078 | 3,422 | 5,228 | ||||
Equity in net income, net of dividends, reported in the consolidated statements of cash flows | $ (396) | $ (156) | $ 1,075 | |||||
|
Restructuring Costs (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Jun. 30, 2015 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | $ 4,359 | $ 2,389 | $ 4,890 | ||
HUNGARY | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | $ 3,700 | $ 4,400 | |||
ZAMBIA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | $ 2,400 | ||||
South America [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment costs | $ 4,900 |
Restructuring Costs (Cumulative Restructuring Costs) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 2,083 | $ 1,725 | $ 4,890 |
Restructuring and impairment costs | 4,359 | 2,389 | 4,890 |
Employee Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee termination benefits | 2,083 | 1,629 | 4,354 |
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other restructuring costs | 0 | 96 | 536 |
Farmer loans and property and equipment | $ 2,276 | $ 664 | $ 0 |
Restructuring Costs (Reconciliation Of Company's Liability For The Restructuring Costs) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2014 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 2,083 | $ 1,725 | $ 4,890 | |
Payments | (2,020) | (2,338) | (6,182) | |
Balance | 344 | 281 | 894 | $ 2,186 |
Employee Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | 2,083 | 1,629 | 4,354 | |
Payments | (1,861) | (2,246) | (5,684) | |
Balance | 301 | 79 | 696 | 2,026 |
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 0 | 96 | 536 | |
Payments | (159) | (92) | (498) | |
Balance | $ 43 | $ 202 | $ 198 | $ 160 |
Earnings Per Share Earnings Per Share (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
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Stock Repurchased And Retired During Period Value Retained Earnings | $ (74,353) | $ 0 | $ (36) | ||
Series B 6.75% Convertible Perpetual Preferred Stock [Member] | |||||
Conversion of Stock, Shares Converted | 111,072 | (111,072) | 0 | 0 | |
Stock Repurchased and Retired During Period, Shares | 107,418 | ||||
Stock Repurchased And Retired During Period Value Retained Earnings | $ 74,400 | $ 74,353 | $ (36) | ||
Common Stock [Member] | |||||
Conversion of Stock, Shares Issued | 2,487,118 |
Earnings Per Share (Computation Of Basic And Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Numerator for basic earnings per share | |||||||||||
Net income attributable to Universal Corporation | $ 32,869 | $ 53,647 | $ 25,264 | $ (5,476) | $ 47,964 | $ 44,534 | $ 22,465 | $ (5,947) | $ 106,304 | $ 109,016 | $ 114,608 |
Less: Dividends on convertible perpetual preferred stock | (11,061) | (14,748) | (14,824) | ||||||||
Less: Cost in excess of carrying value on conversion or repurchase of convertible perpetual preferred stock | 74,353 | 0 | 36 | ||||||||
Earnings available to Universal Corporation common shareholders | $ (41,484) | $ 49,960 | $ 21,577 | $ (9,163) | $ 44,277 | $ 40,847 | $ 18,778 | $ (9,634) | $ 20,890 | $ 94,268 | $ 99,748 |
Denominator for basic earnings per share | |||||||||||
Weighted average shares outstanding | 23,433,860 | 22,683,290 | 23,035,920 | ||||||||
Basic earnings per share | $ (1.64) | $ 2.17 | $ 0.95 | $ (0.40) | $ 1.95 | $ 1.80 | $ 0.83 | $ (0.43) | $ 0.89 | $ 4.16 | $ 4.33 |
Numerator for diluted earnings per share | |||||||||||
Earnings available to Universal Corporation common shareholders | $ (41,484) | $ 49,960 | $ 21,577 | $ (9,163) | $ 44,277 | $ 40,847 | $ 18,778 | $ (9,634) | $ 20,890 | $ 94,268 | $ 99,748 |
Add: Dividends on convertible perpetual preferred stock (if conversion assumed) | 0 | (14,748) | (14,824) | ||||||||
Add: Cost in excess of carrying value on conversion or repurchase of convertible perpetual preferred stock | 0 | 0 | 36 | ||||||||
Earnings available to Universal Corporation common shareholders for calculation of diluted earnings per share | $ 20,890 | $ 109,016 | $ 114,608 | ||||||||
Denominator for diluted earnings per share: | |||||||||||
Weighted average shares outstanding | 23,433,860 | 22,683,290 | 23,035,920 | ||||||||
Effect of dilutive securities (if conversion or exercise assumed) Convertible perpetual preferred stock | 0 | 4,853,268 | 4,843,309 | ||||||||
Effect of dilutive securities (if conversion or exercise assumed) Employee share-based awards | 336,228 | 288,933 | 342,035 | ||||||||
Denominator for diluted earnings per share | 23,770,088 | 27,825,491 | 28,221,264 | ||||||||
Diluted earnings per share | $ (1.64) | $ 1.92 | $ 0.90 | $ (0.40) | $ 1.72 | $ 1.60 | $ 0.81 | $ (0.43) | $ 0.88 | $ 3.92 | $ 4.06 |
Earnings Per Share Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) (Details) shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017
$ / shares
shares
|
Mar. 31, 2016
$ / shares
shares
|
Mar. 31, 2015
$ / shares
shares
|
|
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Abstract] | |||
Potentially dilutive securities | shares | 0 | 133,600 | 156,200 |
Weighted-average exercise price | $ / shares | 0.00 | 62.66 | 61.83 |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2014 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Tax [Line Items] | ||||
Continuing operations | $ 56,732 | $ 54,430 | $ 38,006 | |
Fines Imposed By European Commission | $ 53,000 | |||
Tax benefit arising from payment of a portion of the European Commission Fine by a subsidiary | 5.00% | (0.00%) | (0.00%) | (5.00%) |
Unrecognized tax benefits that would impact effective tax rate | $ 1,800 | |||
Liability where a significant change in unrecognized tax benefits is reasonably possible | $ 100 | |||
U.S. Federal [Member] | ||||
Income Tax [Line Items] | ||||
Open Tax Year | 2014 | |||
Minimum [Member] | State And Foreign Jurisdictions [Member] | ||||
Income Tax [Line Items] | ||||
Open tax years | 3 years | |||
Maximum [Member] | State And Foreign Jurisdictions [Member] | ||||
Income Tax [Line Items] | ||||
Open tax years | 6 years | |||
Deltafina [Member] | ||||
Income Tax [Line Items] | ||||
Continuing operations | $ 8,000 | |||
Fines Imposed By European Commission | $ 30,000 |
Income Taxes (Schedule Of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
United States, current | $ 3,422 | $ 5,371 | $ 4,126 |
State and local, current | 147 | 1,116 | 657 |
Foreign, current | 36,537 | 32,897 | 46,885 |
Total, current | 40,106 | 39,384 | 51,668 |
United States, deferred | 5,434 | 5,780 | 3,352 |
State and local, deferred | 561 | (445) | 159 |
Foreign, deferred | 10,631 | 9,711 | (17,173) |
Deferred income tax expense (benefit) | 16,626 | 15,046 | (13,662) |
Total | $ 56,732 | $ 54,430 | $ 38,006 |
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2014 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Statutory tax rate | 35.00% | 35.00% | 35.00% | |
State income taxes, net of federal benefit | 0.30% | 0.30% | 0.30% | |
Dividends received from deconsolidated operations | (2.30%) | (1.50%) | (1.30%) | |
Remeasurement effect | 0.40% | (1.60%) | (4.90%) | |
Tax benefit arising from payment of a portion of the European Commission Fine by a subsidiary | 5.00% | (0.00%) | (0.00%) | (5.00%) |
Other, including changes in liabilities recorded for uncertain tax positions | 0.10% | (0.70%) | (0.10%) | |
Effective income tax rate | 33.50% | 31.50% | 24.00% |
Income Taxes (Schedule Of U.S. And Foreign Components Of Income Before Income Taxes And Other Items) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
United States | $ 31,468 | $ 37,877 | $ 27,181 |
Foreign | 137,770 | 134,701 | 131,286 |
Total | $ 169,238 | $ 172,578 | $ 158,467 |
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Mar. 31, 2016 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Foreign withholding taxes | $ 44,702 | $ 39,770 |
Undistributed earnings | 24,629 | 19,553 |
Goodwill | 30,851 | 30,851 |
All other | 11,015 | 10,424 |
Total deferred tax liabilities | 111,197 | 100,598 |
Employee benefit plans | 38,804 | 43,362 |
Reserves and accruals | 11,756 | 12,911 |
Deferred income | 4,672 | 3,938 |
Currency translation losses of foreign subsidiaries | 13,244 | 9,939 |
Local currency exchange losses of foreign subsidiaries | 3,669 | 3,597 |
Foreign tax credit carryforward | 2,799 | 4,664 |
All other | 14,327 | 16,546 |
Total deferred tax assets | 89,271 | 94,957 |
Valuation allowance | (636) | 0 |
Net deferred tax assets | $ 88,635 | $ 94,957 |
Income Taxes (Schedule Of Combined Income Tax Expense (Benefit) Allocable To Continuing Operations, Other Comprehensive Income, And Adjustments To Shareholders' Equity) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Continuing operations | $ 56,732 | $ 54,430 | $ 38,006 |
Other comprehensive income | 1,503 | 1,423 | (21,900) |
Direct adjustments to shareholders' equity | 0 | (805) | (932) |
Total | $ 58,235 | $ 55,048 | $ 15,174 |
Income Taxes (Reconciliation Of the Gross Liability For Uncertain Tax Positions) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Liability for uncertain tax positions, beginning of year | $ 2,407 | $ 2,894 | $ 3,809 |
Additions: Related to tax positions for the current year | 94 | 98 | 272 |
Additions: Related to tax positions for prior years | 0 | 0 | 0 |
Reductions: Due to lapses of statutes of limitations | (112) | (215) | (478) |
Reductions: Related to tax positions for prior year | (3) | 0 | (143) |
Reductions: Effect of currency rate movement | 40 | 370 | 566 |
Liability for uncertain tax positions, end of year | $ 2,426 | $ 2,407 | $ 2,894 |
Credit Facilities (Narrative) (Details) - USD ($) $ in Thousands |
Dec. 30, 2014 |
Mar. 31, 2017 |
Mar. 31, 2016 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Five-year revolving credit facility | $ 430,000 | ||
Additional borrowings under present credit agreement | $ 100,000 | ||
Number Of Years Of Bank Credit Agreement | 5 years | ||
Outstanding uncommitted lines of credit | $ 59,133 | $ 66,179 | |
Weighted average interest rates on short-term borrowings outstanding | 3.10% | 2.20% | |
Prime Rate Or One Month Libor [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Federal funds rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Uncommitted lines of credit [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding uncommitted lines of credit | $ 59,000 | $ 66,000 | |
Unused lines of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding uncommitted lines of credit | $ 248,000 | ||
Five-year term [Member] | |||
Debt Instrument [Line Items] | |||
Term loan | $ 150,000 | ||
Number Of Years Of Bank Credit Agreement | 5 years | ||
Seven-year term [Member] | |||
Debt Instrument [Line Items] | |||
Term loan | $ 220,000 | ||
Number Of Years Of Bank Credit Agreement | 7 years |
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions |
Dec. 30, 2014 |
Mar. 31, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 5 years | |
Repayments of Debt | $ 250 | |
Reduction in revolving credit borrowings | $ 120 | |
Five-year term [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 5 years | |
Term loan | $ 150 | |
Debt Instrument, Interest Rate, Effective Percentage | 2.94% | |
Seven-year term [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 7 years | |
Term loan | $ 220 | |
Debt Instrument, Interest Rate, Effective Percentage | 3.48% |
Long-Term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Mar. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Total outstanding | $ 370,000 | $ 370,000 |
Less current portion | 0 | 0 |
Unamortized debt issuance costs | (1,267) | (1,620) |
Long-term debt | 368,733 | 368,380 |
Senior bank term loans | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 370,000 | $ 370,000 |
Leases (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Leases [Abstract] | |||
Rent expense on operating leases | $ 15.3 | $ 14.7 | $ 15.8 |
Operating leases minimum payment in 2018 | 11.5 | ||
Operating leases minimum payment in 2019 | 8.5 | ||
Operating leases minimum payment in 2020 | 7.2 | ||
Operating leases minimum payment in 2021 | 5.8 | ||
Operating leases minimum payment in 2022 | 4.1 | ||
Operating leases minimum payment after 2022 | $ 13.7 |
Derivatives And Hedging Activities (Narrative) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Mar. 31, 2015 |
---|---|---|
Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 33.0 | $ 80.4 |
Cash Flow Hedges [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 370.0 |
Derivatives And Hedging Activities Notional Amount of Forward Contracts (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
---|---|---|---|
Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 94.7 | $ 56.3 | $ 128.5 |
Forward contracts related to tobacco purchase [Member] | Derivatives Designated As Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 70.7 | 43.1 | 105.6 |
Forward contracts related to tobacco processing costs [Member] | Derivatives Not Designated As Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 24.0 | $ 13.2 | $ 22.9 |
Derivatives And Hedging Activities (Effect Of Derivative Financial Instruments On The Consolidated Statements Of Income) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recorded in accumulated other comprehensive loss | $ 8,999 | $ (12,824) | $ (4,044) |
Gain (loss) reclassified from accumulated other comprehensive loss into earnings | (3,916) | (5,108) | (1,929) |
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | Interest Rate Swap [Member] | Selling, General And Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings from ineffective portion and early de-designation of cash flow hedges | 0 | 0 | 0 |
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | Cost Of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recorded in accumulated other comprehensive loss | 454 | 1,774 | 1,410 |
Gain (loss) reclassified from accumulated other comprehensive loss into earnings | 945 | 993 | 3,099 |
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | Selling, General And Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings from ineffective portion and early de-designation of cash flow hedges | 246 | 685 | 257 |
Derivatives Not Designated As Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | Selling, General And Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (2,591) | $ 5,973 | $ 13,178 |
Derivatives And Hedging Activities (Effect Of Derivative Financial Instruments On The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Mar. 31, 2016 |
---|---|---|
Derivative [Line Items] | ||
Derivatives in a Fair Value Asset Position Designated as Hedging Instruments | $ 2,205 | $ 475 |
Derivatives in a Fair Value Liability Position Designated as Hedging Instruments | 55 | 10,766 |
Derivatives in a Fair Value Asset Position Not Designated as Hedging Instruments | 917 | 297 |
Derivatives in a Fair Value Liability Position Not Designated as Hedging Instruments | 120 | 5 |
Forward Foreign Currency Exchange Contracts [Member] | Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Asset Position Designated as Hedging Instruments | 56 | 475 |
Derivatives in a Fair Value Asset Position Not Designated as Hedging Instruments | 917 | 297 |
Forward Foreign Currency Exchange Contracts [Member] | Accounts Payable And Accrued Expenses [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Liability Position Designated as Hedging Instruments | 55 | 0 |
Derivatives in a Fair Value Liability Position Not Designated as Hedging Instruments | 120 | 5 |
Cash Flow Hedges [Member] | Interest Rate Swap Agreements [Member] | Other Non-Current Assets [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Asset Position Designated as Hedging Instruments | 2,149 | 0 |
Cash Flow Hedges [Member] | Interest Rate Swap Agreements [Member] | Other Noncurrent Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Liability Position Designated as Hedging Instruments | $ 0 | $ 10,766 |
Fair Value Measurements Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Mar. 31, 2016 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Long-Term Debt, Fair Value | $ 370 | $ 370 |
Fair Value Measurements (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Mar. 31, 2016 |
---|---|---|
Assets: | ||
Money market funds | $ 137,145 | $ 116,618 |
Trading securities associated with deferred compensation plans | 17,726 | 17,817 |
Interest rate swap agreements | 2,149 | |
Forward foreign currency exchange contracts | 973 | 772 |
Total financial assets measured and reported at fair value | 157,993 | 135,207 |
Liabilities: | ||
Guarantees of bank loans to tobacco growers | 1,177 | 1,628 |
Interest rate swap agreements | 10,766 | |
Forward foreign currency exchange contracts | 175 | 5 |
Total financial liabilities measured and reported at fair value | 1,352 | 12,399 |
Net Asset Value (NAV) [Member] | ||
Assets: | ||
Money market funds | 137,145 | 116,618 |
Trading securities associated with deferred compensation plans | 0 | 0 |
Interest rate swap agreements | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial assets measured and reported at fair value | 137,145 | 116,618 |
Liabilities: | ||
Guarantees of bank loans to tobacco growers | 0 | 0 |
Interest rate swap agreements | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial liabilities measured and reported at fair value | 0 | 0 |
Level 1 [Member] | ||
Assets: | ||
Money market funds | 0 | 0 |
Trading securities associated with deferred compensation plans | 17,726 | 17,817 |
Interest rate swap agreements | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial assets measured and reported at fair value | 17,726 | 17,817 |
Liabilities: | ||
Guarantees of bank loans to tobacco growers | 0 | 0 |
Interest rate swap agreements | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial liabilities measured and reported at fair value | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Money market funds | 0 | 0 |
Trading securities associated with deferred compensation plans | 0 | 0 |
Interest rate swap agreements | 2,149 | |
Forward foreign currency exchange contracts | 973 | 772 |
Total financial assets measured and reported at fair value | 3,122 | 772 |
Liabilities: | ||
Guarantees of bank loans to tobacco growers | 0 | 0 |
Interest rate swap agreements | 10,766 | |
Forward foreign currency exchange contracts | 175 | 5 |
Total financial liabilities measured and reported at fair value | 175 | 10,771 |
Level 3 [Member] | ||
Assets: | ||
Money market funds | 0 | 0 |
Trading securities associated with deferred compensation plans | 0 | 0 |
Interest rate swap agreements | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial assets measured and reported at fair value | 0 | 0 |
Liabilities: | ||
Guarantees of bank loans to tobacco growers | 1,177 | 1,628 |
Interest rate swap agreements | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial liabilities measured and reported at fair value | $ 1,177 | $ 1,628 |
Fair Value Measurements (Reconciliation Of Change In Balance Of Financial Liability For Guarantees Of Bank Loans To Tobacco Growers) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Fair Value Disclosures [Abstract] | ||
Balance at beginning of year | $ 1,628 | $ 1,674 |
Payments under the guarantees and transfers to allowance for loss on direct loans to farmers (removal of prior crop year loans from portfolio) | (2,550) | (1,826) |
Provision for loss or transfer from allowance for loss on direct loans to farmers (addition of current crop year loans) | 1,854 | 1,834 |
Change in discount rate and estimated collection period | 59 | 106 |
Currency remeasurement | 186 | (160) |
Balance at end of period | $ 1,177 | $ 1,628 |
Pension And Other Postretirement Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Revised healthcare cost trend assumption | 6.70% | ||
Ultimate healthcare cost trend rate | 4.50% | ||
Year that rate reaches healthcare cost trend rate | 2037 | ||
Effect of one-percentage-point decrease on accumulated postretirement benefit obligation | $ 700 | ||
Effect of one-percentage-point increase on accumulated postretirement benefit obligation | 800 | ||
Net actuarial loss expected in net periodic benefit cost during fiscal year 2014 | 5,200 | ||
Prior service benefit expected in net periodic benefit cost during fiscal year 2014 | $ 2,400 | ||
Percentage of total plan assets | 94.00% | ||
Percentage of total projected benefit obligation | 83.00% | ||
Expected company contributions in 2014 | $ 7,800 | ||
Pension and Other Postretirement Benefit Expense | 2,600 | $ 2,400 | $ 1,500 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funded status of the plans, end of year | $ 49,099 | $ 57,646 | |
Percentage of funded status of plans | 71.00% | ||
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Revised healthcare cost trend assumption | 6.70% | 7.00% | 7.20% |
Funded status of the plans, end of year | $ 33,732 | $ 35,660 | |
Percentage of funded status of plans | 85.00% | ||
Non-ERISA regulated and Other Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected company contributions in 2014 | $ 1,800 | ||
ERISA-regulated U.S. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected company contributions in 2014 | $ 6,000 |
Pension And Other Postretirement Benefit Plans (Assumptions Used To Compute Net Periodic Benefit Cost And Benefit Obligations) (Details) |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Healthcare cost trend rate | 6.70% | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates: Benefit cost for plan year | 4.10% | 3.80% | 4.50% |
Discount rates: Benefit obligation at end of plan year | 4.10% | 4.10% | 3.80% |
Expected long-term return on plan assets: Benefit cost for plan year | 7.00% | 7.25% | 7.75% |
Salary scale: Benefit cost for plan year | 4.00% | 4.50% | 4.50% |
Salary scale: Benefit obligation at end of plan year | 4.00% | 4.00% | 4.50% |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates: Benefit cost for plan year | 3.80% | 3.70% | 4.30% |
Discount rates: Benefit obligation at end of plan year | 3.90% | 3.80% | 3.70% |
Expected long-term return on plan assets: Benefit cost for plan year | 3.00% | 3.00% | 4.30% |
Salary scale: Benefit cost for plan year | 4.00% | 4.50% | 4.50% |
Salary scale: Benefit obligation at end of plan year | 4.00% | 4.00% | 4.50% |
Healthcare cost trend rate | 6.70% | 7.00% | 7.20% |
Pension And Other Postretirement Benefit Plans (Benefit Obligations, Plan Assets, And Funded Status) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets at fair value, beginning of year | $ 217,859 | ||||
Plan assets at fair value, end of year | 220,152 | $ 217,859 | |||
Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | $ 266,764 | $ 273,479 | |||
Projected benefit obligation | 275,505 | 288,908 | $ 288,908 | 269,250 | 275,505 |
Projected benefit obligation, beginning of year | 275,505 | 288,908 | |||
Service cost | 5,382 | 5,953 | 5,099 | ||
Interest cost | 10,441 | 10,037 | 11,215 | ||
Effect of discount rate change | 489 | (10,036) | |||
Foreign currency exchange rate changes | (1,111) | 330 | |||
Settlements | 10,955 | 0 | |||
Other | 4,108 | (486) | |||
Benefit payments | (14,609) | (19,201) | |||
Projected benefit obligation, end of year | 269,250 | 275,505 | 288,908 | ||
Plan assets at fair value, beginning of year | 217,859 | 224,553 | |||
Actual return on plan assets | 16,450 | 61 | |||
Employer contributions | 10,676 | 12,504 | |||
Settlements | 10,322 | 0 | |||
Foreign currency exchange rate changes | 97 | (58) | |||
Plan assets at fair value, end of year | 220,151 | 217,859 | 224,553 | ||
Funded status of the plans, end of year | (49,099) | (57,646) | |||
Other Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | 37,225 | 40,863 | 40,863 | $ 36,786 | $ 37,225 |
Projected benefit obligation, beginning of year | 37,225 | 40,863 | |||
Service cost | 247 | 286 | 347 | ||
Interest cost | 1,535 | 1,539 | 1,699 | ||
Effect of discount rate change | (191) | (402) | |||
Foreign currency exchange rate changes | 286 | (215) | |||
Settlements | 0 | 0 | |||
Other | 766 | (1,104) | |||
Benefit payments | (3,082) | (3,742) | |||
Projected benefit obligation, end of year | 36,786 | 37,225 | 40,863 | ||
Plan assets at fair value, beginning of year | 1,565 | 2,115 | |||
Actual return on plan assets | 71 | 69 | |||
Employer contributions | 4,500 | 3,123 | |||
Settlements | 0 | 0 | |||
Foreign currency exchange rate changes | 0 | 0 | |||
Plan assets at fair value, end of year | 3,054 | 1,565 | $ 2,115 | ||
Funded status of the plans, end of year | $ (33,732) | $ (35,660) |
Pension And Other Postretirement Benefit Plans (Funded Status In Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Mar. 31, 2016 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liability (reported as pensions and other postretirement benefits) | $ (80,689) | $ (92,177) |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset (reported in other noncurrent assets) | 1,710 | 2,044 |
Current liability (included in accounts payable and accrued expenses) | (1,106) | (630) |
Non-current liability (reported as pensions and other postretirement benefits) | (49,703) | (59,060) |
Amounts recognized in the consolidated balance sheets | (49,099) | (57,646) |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset (reported in other noncurrent assets) | 0 | 0 |
Current liability (included in accounts payable and accrued expenses) | (2,746) | (2,543) |
Non-current liability (reported as pensions and other postretirement benefits) | (30,986) | (33,117) |
Amounts recognized in the consolidated balance sheets | $ (33,732) | $ (35,660) |
Pension And Other Postretirement Benefit Plans (Additional Information On Funded Status) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Mar. 31, 2016 |
---|---|---|
Pension Benefits [Member] | ||
For Plans With A Projected Benefit Obligation In Excess Of Plan Assets: | ||
Aggregate projected benefit obligation | $ 260,826 | $ 270,058 |
Aggregate fair value of plan assets | 210,017 | 210,368 |
For Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets: | ||
Aggregate accumulated benefit obligation | 258,424 | 268,087 |
Aggregate fair value of plan assets | 210,017 | 210,368 |
Other Postretirement Benefits [Member] | ||
For Plans With A Projected Benefit Obligation In Excess Of Plan Assets: | ||
Aggregate projected benefit obligation | 36,786 | 37,225 |
Aggregate fair value of plan assets | $ 3,054 | $ 1,565 |
Pension And Other Postretirement Benefit Plans (Components Of Company's Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 5,382 | $ 5,953 | $ 5,099 |
Interest cost | 10,441 | 10,037 | 11,215 |
Expected return on plan assets | (15,154) | (15,110) | (15,493) |
Curtailments | 0 | 0 | 0 |
Settlement cost | (912) | 0 | 0 |
Net amortization and deferral | 4,576 | 4,394 | 6,169 |
Net periodic benefit cost | 4,333 | 5,274 | 6,990 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 247 | 286 | 347 |
Interest cost | 1,535 | 1,539 | 1,699 |
Expected return on plan assets | (42) | (58) | (102) |
Curtailments | 0 | 0 | (1,465) |
Settlement cost | 0 | 0 | 0 |
Net amortization and deferral | (394) | (431) | (671) |
Net periodic benefit cost | $ 1,346 | $ 1,336 | $ (192) |
Pension And Other Postretirement Benefit Plans (Recognized In Accumulated Other Comprehensive Income (Loss) On Pretax Basis) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain), beginning of year | $ 79,299 | $ 81,544 |
Losses (gains) arising during the year | 2,313 | 4,787 |
Reclassification adjustments during the year | 7,567 | 7,032 |
Net actuarial loss (gain), end of year | 74,045 | 79,299 |
Prior service cost (benefit), beginning of year | (15,061) | (17,630) |
Prior service cost (benefit) arising during the year | 0 | 111 |
Reclassification adjustments during the year | 2,991 | 2,458 |
Prior service cost (benefit), end of year | (12,070) | (15,061) |
Total amounts in accumulated other comprehensive loss at end of year, before income taxes | 61,975 | 64,238 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain), beginning of year | (7,234) | (6,402) |
Losses (gains) arising during the year | 554 | (1,263) |
Reclassification adjustments during the year | (394) | (431) |
Net actuarial loss (gain), end of year | (6,286) | (7,234) |
Prior service cost (benefit), beginning of year | (108) | 0 |
Prior service cost (benefit) arising during the year | (4) | (108) |
Reclassification adjustments during the year | 0 | 0 |
Prior service cost (benefit), end of year | (112) | (108) |
Total amounts in accumulated other comprehensive loss at end of year, before income taxes | $ (6,398) | $ (7,342) |
Pension And Other Postretirement Benefit Plans (Weighted-Average Target Pension Asset Allocation And Target Ranges By Major Asset Category) (Details) |
12 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Actual Allocation | 100.00% | 100.00% |
Domestic Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 26.00% | |
Target Allocation Range, Minimum | 16.00% | |
Target Allocation Range, Maximum | 36.00% | |
Actual Allocation | 31.90% | 22.40% |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 69.00% | |
Target Allocation Range, Minimum | 59.00% | |
Target Allocation Range, Maximum | 79.00% | |
Actual Allocation | 61.70% | 71.50% |
Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 5.00% | |
Target Allocation Range, Minimum | 0.00% | |
Target Allocation Range, Maximum | 10.00% | |
Actual Allocation | 6.40% | 6.10% |
Pension And Other Postretirement Benefit Plans (Estimated Future Benefit Payments) (Details) $ in Thousands |
Mar. 31, 2017
USD ($)
|
---|---|
Pension Benefits [Member] | |
2018 | $ 15,031 |
2019 | 22,040 |
2020 | 20,162 |
2021 | 16,727 |
2022 | 17,019 |
2023 - 2027 | 88,929 |
Other Postretirement Benefits [Member] | |
2018 | 3,142 |
2019 | 3,129 |
2020 | 3,015 |
2021 | 2,930 |
2022 | 2,797 |
2023 - 2027 | $ 12,554 |
Pension And Other Postretirement Benefit Plans (Fair Values Of Assets Under Fair Value Hierarchy) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Mar. 31, 2016 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | $ 220,152 | $ 217,859 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 65,637 | 43,807 |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 141,421 | 162,091 |
Alternative Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 13,094 | 11,961 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 193,852 | 185,025 |
Level 1 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 65,637 | 43,807 |
Level 1 [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 128,215 | 141,218 |
Level 1 [Member] | Alternative Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 10,134 | 7,491 |
Level 2 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Level 2 [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 10,134 | 7,491 |
Level 2 [Member] | Alternative Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 16,166 | 25,343 |
Level 3 [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Level 3 [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 3,072 | 13,382 |
Level 3 [Member] | Alternative Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | $ 13,094 | $ 11,961 |
Common And Preferred Stock (Narrative) (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|---|
Jan. 31, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2014 |
Mar. 31, 2006 |
|
Class of Stock [Line Items] | ||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||||||
Common Stock, Shares, Outstanding | 25,274,506 | 25,274,506 | ||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||||
Payments for Repurchase of Redeemable Convertible Preferred Stock | $ 178,400 | $ 104,012 | ||||||
Dividends, Preferred Stock, Cash | $ 15,000 | 11,061 | $ 14,748 | $ 14,824 | ||||
Stock Repurchase Program, Authorized Amount | 100,000 | 100,000 | ||||||
Stock Repurchased And Retired During Period Value Retained Earnings | (74,353) | $ 0 | $ (36) | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 100,000 | $ 100,000 | ||||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Common Stock, Shares, Outstanding | 25,274,506 | 25,274,506 | 22,717,735 | |||||
Conversion of Stock, Shares Issued | 2,487,118 | |||||||
Series A Junior Participating Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares authorized | 500,000 | 500,000 | 500,000 | |||||
Preferred stock, shares issued | 0 | 0 | 0 | |||||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||||
Series B 6.75% Convertible Perpetual Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares authorized | 220,000 | 220,000 | 220,000 | |||||
Preferred stock, shares issued | 0 | 0 | 218,490 | 220,000 | ||||
Conversion of Stock, Shares Converted | 111,072 | (111,072) | 0 | 0 | ||||
Conversion of Stock, Amount Converted | $ 107,600 | |||||||
Stock Repurchased and Retired During Period, Shares | 107,418 | |||||||
Preferred stock, shares outstanding | 0 | 0 | 218,490 | 218,490 | 219,999 | |||
Stock Repurchased And Retired During Period Value Retained Earnings | $ 74,400 | $ 74,353 | $ (36) |
Common And Preferred Stock (Schedule Of Repurchases Of Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Series B 6.75% Convertible Perpetual Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Number of shares repurchased | 0 | 0 | 1,509 |
Stock Repurchased and Retired During Period, Cost Value | $ 0 | $ 0 | $ 1,497 |
Weighted-average cost per share | $ 0.00 | $ 0 | $ 992.27 |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Number of shares repurchased | 0 | 0 | 719,993 |
Cost of shares repurchased (in thousands of dollars) | $ 0 | $ 0 | $ 31,227 |
Weighted-average cost per share | $ 0.00 | $ 0.00 | $ 43.37 |
Executive Stock Plans And Stock-Based Compensation (Narrative) (Details) $ in Millions |
12 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to stock-based awards | $ | $ 6.0 |
Unrecognized compensation expense related to stock-based awards, weighted-average period expected to recognized | 1 year 1 month 5 days |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares common stock expected to issue under the Plans | 2,000,000 |
Stock Appreciation Rights (SARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period following grant date, in years | 10 years |
Description of award vesting rights for SARs | vested in equal one-third tranches one, two, and three years after the grant date |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, in years | 5 years |
Performance Share Awards Psas [Member | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, in years | 3 years |
Performance Share Awards Psas [Member | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of award grant paid | 0.00% |
Performance Share Awards Psas [Member | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of award grant paid | 150.00% |
Outside Directors [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, in years | 3 years |
Plans After Fiscal 2007 [Member] | Stock Appreciation Rights (SARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period following grant date, in years | 10 years |
Expiration period following grantee retirement, in years | 3 years |
2002 Executive Stock Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares common stock expected to issue under the Plans | 500,000 |
2007 Stock Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares common stock expected to issue under the Plans | 1,350,000 |
Executive Stock Plans And Stock-Based Compensation (Summary Of Stock Option And SAR Activity) (Details) - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding at beginning of year, Weighted-Average Exercise Price | $ 59.96 | $ 59.82 | $ 54.83 |
Outstanding at beginning of year, Shares | 152,201 | 169,601 | 257,340 |
Exercised, Shares | (135,334) | (6,200) | (63,539) |
Cancelled/expired, Shares | (16,867) | (11,200) | (24,200) |
Outstanding at end of year, Shares | 0 | 152,201 | 169,601 |
Exercised, Weighted-Average Exercise Price | $ 61.72 | $ 51.32 | $ 38.50 |
Cancelled/expired, Weighted-Average Exercise Price | 45.82 | 62.66 | 62.66 |
Outstanding at end of year, Weighted-Average Exercise Price | $ 0 | $ 59.96 | $ 59.82 |
Executive Stock Plans And Stock-Based Compensation (Intrinsic Value And Fair Value of SARs) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total intrinsic value of stock options and SARs exercised | $ 555 | $ 26 | $ 1,091 |
Total fair value of SARs vested | $ 0 | $ 0 | $ 375 |
Executive Stock Plans And Stock-Based Compensation (Summary Of RSU, Restricted Stock, And PSA Activity) (Details) - $ / shares shares in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2014 |
|
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 74,776 | 80,932 | 94,539 | |
Vested, Shares | (51,544) | (42,384) | (123,322) | |
Forfeited, Shares | (539) | 0 | ||
Unvested at end of year, Shares | 325,638 | 302,945 | 264,397 | 293,180 |
Granted, Weighted- Average Grant Date Fair Value | $ 55.27 | $ 51.62 | $ 51.86 | |
Vested, Weighted- Average Grant Date Fair Value | 44.57 | 41.64 | 42.02 | |
Forfeited, Weighted- Average Grant Date Fair Value | 55.63 | 0.00 | ||
Unvested at end of year, Weighted- Average Grant Date Fair Value | $ 52.01 | $ 49.95 | $ 48.10 | $ 44.33 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 0 | 0 | 0 | |
Vested, Shares | (17,900) | 0 | 0 | |
Forfeited, Shares | 0 | 0 | ||
Unvested at end of year, Shares | 30,200 | 48,100 | 48,100 | 48,100 |
Granted, Weighted- Average Grant Date Fair Value | $ 0.00 | $ 0.00 | $ 0.00 | |
Vested, Weighted- Average Grant Date Fair Value | 42.26 | 0.00 | 0.00 | |
Forfeited, Weighted- Average Grant Date Fair Value | 0.00 | 0.00 | ||
Unvested at end of year, Weighted- Average Grant Date Fair Value | $ 42.37 | $ 42.33 | $ 42.33 | $ 42.33 |
Performance Share Awards Psas [Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 58,805 | 86,212 | 57,580 | |
Vested, Shares | (52,230) | (85,387) | (50,092) | |
Forfeited, Shares | (525) | (3,400) | ||
Unvested at end of year, Shares | 160,350 | 154,300 | 153,475 | 149,387 |
Granted, Weighted- Average Grant Date Fair Value | $ 49.17 | $ 45.06 | $ 46.41 | |
Vested, Weighted- Average Grant Date Fair Value | 53.56 | 38.14 | 31.95 | |
Forfeited, Weighted- Average Grant Date Fair Value | 49.17 | 53.56 | ||
Unvested at end of year, Weighted- Average Grant Date Fair Value | $ 46.86 | $ 48.13 | $ 45.58 | $ 41.76 |
Executive Stock Plans And Stock-Based Compensation (Stock-Based Compensation Expense And Related Income Tax Benefit Recognized) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Total stock-based compensation expense | $ 6,475 | $ 5,206 | $ 6,230 |
Income tax benefit recorded on stock-based compensation expense | $ 2,266 | $ 1,822 | $ 2,181 |
Commitments And Other Matters (Narrative) (Details) |
12 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2015
USD ($)
|
Jun. 30, 2013
USD ($)
|
|
Commitments And Other Matters [Line Items] | ||||
Total amount of advances funded towards tobacco purchase | $ 104,000,000 | |||
Commitments relating to agricultural materials,capital expenditures | 48,000,000 | |||
Face amount of guarantee including unpaid accrued interest | 17,000,000 | $ 13,000,000 | ||
Fair value of the guarantees | 1,000,000 | 2,000,000 | ||
Other contingent liabilities | $ 2,000,000 | |||
Due period of accounts receivables | 30 | |||
Allowance for doubtful accounts | $ 4,000,000 | 9,000,000 | ||
Total Amount of Brazilian IPI Federal Tax Credits Made Available by Court Decision | $ 104,000,000 | |||
Net book value on tax credits from excise tax case after valuation allowance | $ 12,700,000 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 5,964,000 | 0 | |
Fair value gain upon acquisition of partner's interest in joint venture | 0 | 3,390,000 | 0 | |
Fair value of assets upon acquisition of partner's interest in joint venture | 12,000,000 | |||
Philip Morris International, Inc [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Revenues from customers | 590,000,000 | 640,000,000 | 580,000,000 | |
British American Tobacco plc [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Revenues from customers | 220,000,000 | 230,000,000 | 220,000,000 | |
Imperial Tobacco Group, PLC [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Revenues from customers | 230,000,000 | $ 210,000,000 | $ 280,000,000 | |
Five largest customers revenue percentage [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Revenues from customers | 0.65 | |||
Santa Catarina [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Brazil Audit Assessment For Tax, Penalties, And Interest On Recoverable Value Added Tax Credits | 15,000,000 | |||
Reduction of Brazil Audit Assessment For Tax, Penalties, And Interest On Recoverable Value Added Tax Credits | 15,000,000 | |||
Santa Catarina [Member] | Minimum [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Estimate of possible loss on remaining VAT audit assessment | 0 | |||
Santa Catarina [Member] | Maximum [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Estimate of possible loss on remaining VAT audit assessment | 15,000,000 | |||
Parana [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Brazil Audit Assessment For Tax, Penalties, And Interest On Recoverable Value Added Tax Credits | 18,000,000 | |||
Reduction of Brazil Audit Assessment For Tax, Penalties, And Interest On Recoverable Value Added Tax Credits | 6,000,000 | |||
Parana [Member] | Minimum [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Estimate of possible loss on remaining VAT audit assessment | 0 | |||
Parana [Member] | Maximum [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Estimate of possible loss on remaining VAT audit assessment | 6,000,000 | |||
Fiscal Year 2018 [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Tobacco purchase contracts | 622,000,000 | |||
After Fiscal Year 2018 [Member] | ||||
Commitments And Other Matters [Line Items] | ||||
Tobacco purchase contracts | $ 68,000,000 |
Commitments And Other Matters (Schedule Of Accounts Receivable By Reportable Operating Segment) (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Mar. 31, 2016 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Consolidated accounts receivable | $ 439,288 | $ 428,659 |
North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated accounts receivable | 111,520 | 85,985 |
Other Regions [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated accounts receivable | 294,799 | 303,932 |
Flue-Cured And Burley Leaf Tobacco Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated accounts receivable | 406,319 | 389,917 |
Other Tobacco Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated accounts receivable | $ 32,969 | $ 38,742 |
Operating Segments (Narrative) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
---|---|---|---|
Segment Reporting [Abstract] | |||
Ownership percentage in affiliate | 49.00% | ||
Number of regional operating segments | 5 | ||
Number of regions into a single reporting segment | 4 | ||
Investment in unconsolidated affiliate | $ 78.1 | $ 81.8 | $ 74.9 |
Operating Segments (Operating Results For The Company's Reportable Segments) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales and Other Operating Revenues | $ 2,071,218 | $ 2,120,373 | $ 2,271,801 | |||||||||||
Operating Income | 178,351 | 181,647 | 167,874 | |||||||||||
Equity in pretax earnings of unconsolidated affiliates | [1] | (5,774) | (5,422) | (7,137) | ||||||||||
Restructuring and impairment costs | [2] | (4,359) | (2,389) | (4,890) | ||||||||||
Other income | [3] | 0 | 3,390 | 12,676 | ||||||||||
Segment Assets | 2,123,405 | 2,231,177 | 2,186,475 | |||||||||||
Goodwill | 98,803 | 99,031 | 99,085 | |||||||||||
Depreciation and Amortization | 35,970 | 37,644 | 37,324 | |||||||||||
Capital Expenditures | 35,630 | 47,153 | 58,385 | |||||||||||
Operating Segments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales and Other Operating Revenues | 2,071,218 | 2,120,373 | 2,271,801 | |||||||||||
Operating Income | 188,484 | 186,068 | 167,225 | |||||||||||
Flue-Cured And Burley Leaf Tobacco Operations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales and Other Operating Revenues | 1,839,429 | 1,900,798 | 2,044,809 | |||||||||||
Operating Income | 178,500 | 174,743 | 156,899 | |||||||||||
Segment Assets | 1,822,515 | 1,912,520 | 1,889,295 | |||||||||||
Goodwill | 97,159 | 97,318 | 97,372 | |||||||||||
Depreciation and Amortization | 30,732 | 33,501 | 33,111 | |||||||||||
Capital Expenditures | 25,821 | 27,404 | 45,117 | |||||||||||
Flue-Cured And Burley Leaf Tobacco Operations [Member] | North America [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales and Other Operating Revenues | 416,438 | 361,827 | 305,028 | |||||||||||
Operating Income | 35,151 | 31,147 | 31,060 | |||||||||||
Segment Assets | 357,406 | 364,003 | 281,449 | |||||||||||
Goodwill | 0 | 0 | 0 | |||||||||||
Depreciation and Amortization | 4,626 | 4,314 | 4,284 | |||||||||||
Capital Expenditures | 4,202 | 2,282 | 5,814 | |||||||||||
Flue-Cured And Burley Leaf Tobacco Operations [Member] | Other Regions [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales and Other Operating Revenues | [4] | 1,422,991 | 1,538,971 | 1,739,781 | ||||||||||
Operating Income | [4] | 143,349 | 143,596 | 125,839 | ||||||||||
Segment Assets | [4] | 1,465,109 | 1,548,517 | 1,607,846 | ||||||||||
Goodwill | [4] | 97,159 | 97,318 | 97,372 | ||||||||||
Depreciation and Amortization | [4] | 26,106 | 29,187 | 28,827 | ||||||||||
Capital Expenditures | [4] | 21,619 | 25,122 | 39,303 | ||||||||||
Other Tobacco Operations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales and Other Operating Revenues | [5] | 231,789 | 219,575 | 226,992 | ||||||||||
Operating Income | [5] | 9,984 | 11,325 | 10,326 | ||||||||||
Segment Assets | [5] | 300,890 | 318,657 | 297,180 | ||||||||||
Goodwill | [5] | 1,644 | 1,713 | 1,713 | ||||||||||
Depreciation and Amortization | [5] | 5,238 | 4,143 | 4,213 | ||||||||||
Capital Expenditures | [5] | $ 9,809 | $ 19,749 | $ 13,268 | ||||||||||
|
Operating Segments (Schedule Of Sales And Long-Lived Assets By Country) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | $ 2,071,218 | $ 2,120,373 | $ 2,271,801 |
Long-Lived Assets | 416,228 | 424,958 | 404,535 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 320,731 | 275,147 | 290,950 |
Long-Lived Assets | 85,145 | 84,072 | 70,929 |
Belgium [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 320,735 | 371,580 | 336,396 |
Germany [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 123,649 | 155,180 | 170,338 |
China [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 137,855 | 135,032 | 174,872 |
NETHERLANDS | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 91,266 | 121,767 | 113,297 |
Russia (Member) | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 84,784 | 109,559 | 126,652 |
Brazil [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 134,074 | 133,727 | 135,980 |
Mozambique [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 50,311 | 53,069 | 55,733 |
All Other Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 992,198 | 952,108 | 1,059,296 |
Long-Lived Assets | $ 146,698 | $ 154,090 | $ 141,893 |
Accumulated Other Comprehensive Income (Loss) (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
||||||||||
Foreign currency translation: [Abstract] | ||||||||||||
Net gain (loss) on foreign currency translation, net of income taxes | $ (6,899) | $ 3,934 | $ (22,625) | |||||||||
Pension and other postretirement benefit plan: [Abstract] | ||||||||||||
Pension and other postretirement benefit plans, net of income taxes | 1,475 | 1,004 | (14,023) | |||||||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||||||
Total accumulated other comprehensive income (loss) at end of period | (69,559) | (72,350) | (74,994) | |||||||||
Forward Foreign Currency Exchange Contracts [Member] | ||||||||||||
Cash flow hedges: [Abstract] | ||||||||||||
Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes | (933) | 2,509 | (2,603) | |||||||||
Interest Rate Swap [Member] | ||||||||||||
Cash flow hedges: [Abstract] | ||||||||||||
Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes | 8,395 | (5,015) | (1,374) | |||||||||
Accumulated Translation Adjustment [Member] | ||||||||||||
Foreign currency translation: [Abstract] | ||||||||||||
Balance at beginning of year | (26,992) | (31,138) | (8,476) | |||||||||
Net gain (loss) on foreign currency translation, net of income taxes | (6,899) | 3,934 | (22,625) | |||||||||
Less: Net loss (gain) on foreign currency translation attributable to noncontrolling interests | 753 | 212 | (37) | |||||||||
Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes | (6,146) | 4,146 | (22,662) | |||||||||
Balance at end of period | (33,138) | (26,992) | (31,138) | |||||||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||||||
Taxes on net gain (loss) on foreign currency translation | 3,715 | (2,119) | 12,181 | |||||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | ||||||||||||
Cash flow hedges: [Abstract] | ||||||||||||
Balance at beginning of year | 675 | (1,834) | 769 | |||||||||
Net gain (loss) on derivative instruments, net of income taxes | (1,841) | 1,969 | (4,280) | |||||||||
Reclassifications to earnings, net of income taxes | [1] | 908 | 540 | 1,677 | ||||||||
Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes | (933) | 2,509 | (2,603) | |||||||||
Balance at end of period | (258) | 675 | (1,834) | |||||||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||||||
Taxes on net gain (loss) on derivative instruments | 991 | (1,060) | 2,304 | |||||||||
Taxes on reclassifications to net income | (489) | (291) | (903) | |||||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Swap [Member] | ||||||||||||
Cash flow hedges: [Abstract] | ||||||||||||
Balance at beginning of year | (6,997) | (1,982) | (608) | |||||||||
Net gain (loss) on derivative instruments, net of income taxes | 5,849 | (8,335) | (2,628) | |||||||||
Reclassifications to earnings, net of income taxes | [2] | 2,546 | 3,320 | 1,254 | ||||||||
Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes | 8,395 | (5,015) | (1,374) | |||||||||
Balance at end of period | 1,398 | (6,997) | (1,982) | |||||||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||||||
Taxes on net gain (loss) on derivative instruments | (3,150) | 4,489 | 1,416 | |||||||||
Taxes on reclassifications to net income | (1,370) | (1,788) | (675) | |||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||||
Pension and other postretirement benefit plan: [Abstract] | ||||||||||||
Balance at beginning of year | (39,036) | (40,040) | (26,017) | |||||||||
Gains arising during period, net of income taxes | [3] | (1,395) | (1,921) | (18,049) | ||||||||
Amortization included in earnings, net of income taxes | [4] | 2,870 | 2,925 | 4,026 | ||||||||
Pension and other postretirement benefit plans, net of income taxes | 1,475 | 1,004 | (14,023) | |||||||||
Balance at end of period | (37,561) | (39,036) | (40,040) | |||||||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||||||||||
Taxes on losses (gains) arising during the period | 751 | 1,035 | 9,719 | |||||||||
Taxes on amortization included in net income | $ (1,546) | $ (1,576) | $ (2,163) | |||||||||
|
Unaudited Quarterly Financial Data (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|||
Unaudited Quarterly Financial Data [Line Items] | |||||||||||||
Continuing operations | $ 56,732 | $ 54,430 | $ 38,006 | ||||||||||
Fair value gain upon acquisition of partner's interest in joint venture | 0 | 3,390 | 0 | ||||||||||
Restructuring and impairment costs | 4,359 | 2,389 | 4,890 | ||||||||||
Stock Repurchased And Retired During Period Value Retained Earnings | (74,353) | 0 | (36) | ||||||||||
Net income attributable to Universal Corporation | $ 32,869 | $ 53,647 | $ 25,264 | $ (5,476) | $ 47,964 | $ 44,534 | $ 22,465 | $ (5,947) | $ 106,304 | $ 109,016 | $ 114,608 | ||
Diluted earnings per share | $ (1.64) | $ 1.92 | $ 0.90 | $ (0.40) | $ 1.72 | $ 1.60 | $ 0.81 | $ (0.43) | $ 0.88 | $ 3.92 | $ 4.06 | ||
Gain on settlement of excise tax case | $ 0 | $ 0 | $ 12,676 | ||||||||||
Other Operating Income | [1] | 0 | $ 3,390 | 12,676 | |||||||||
Series B 6.75% Convertible Perpetual Preferred Stock [Member] | |||||||||||||
Unaudited Quarterly Financial Data [Line Items] | |||||||||||||
Stock Repurchased And Retired During Period Value Retained Earnings | $ 74,400 | 74,353 | $ (36) | ||||||||||
Stock Repurchased and Retired During Period, Shares | 107,418 | ||||||||||||
Diluted earnings per share | $ (2.90) | ||||||||||||
HUNGARY | |||||||||||||
Unaudited Quarterly Financial Data [Line Items] | |||||||||||||
Restructuring and impairment costs | $ 3,700 | $ 4,400 | |||||||||||
Net income attributable to Universal Corporation | $ (2,400) | ||||||||||||
Diluted earnings per share | $ (0.09) | ||||||||||||
ZAMBIA | |||||||||||||
Unaudited Quarterly Financial Data [Line Items] | |||||||||||||
Restructuring and impairment costs | $ 2,400 | ||||||||||||
Net income attributable to Universal Corporation | $ (1,600) | ||||||||||||
Diluted earnings per share | $ (0.06) | ||||||||||||
GUATEMALA | |||||||||||||
Unaudited Quarterly Financial Data [Line Items] | |||||||||||||
Net income attributable to Universal Corporation | $ 2,200 | ||||||||||||
Diluted earnings per share | $ 0.08 | ||||||||||||
Other Operating Income | $ 3,390 | ||||||||||||
|
Unaudited Quarterly Financial Data (Unaudited Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales and other operating revenues | $ 650,030 | $ 668,771 | $ 456,942 | $ 295,475 | $ 803,980 | $ 584,592 | $ 456,382 | $ 275,419 | |||
Gross profit | 119,185 | 135,453 | 87,844 | 52,197 | 140,942 | 119,906 | 98,094 | 48,389 | |||
Net income | 36,450 | 57,062 | 26,498 | (7,504) | 52,594 | 46,615 | 25,064 | (6,125) | $ 112,506 | $ 118,148 | $ 120,461 |
Net income attributable to Universal Corporation | 32,869 | 53,647 | 25,264 | (5,476) | 47,964 | 44,534 | 22,465 | (5,947) | 106,304 | 109,016 | 114,608 |
Earnings (loss) available to Universal Corporation common shareholders after dividends on convertible perpetual preferred stock | $ (41,484) | $ 49,960 | $ 21,577 | $ (9,163) | $ 44,277 | $ 40,847 | $ 18,778 | $ (9,634) | $ 20,890 | $ 94,268 | $ 99,748 |
Basic | $ (1.64) | $ 2.17 | $ 0.95 | $ (0.40) | $ 1.95 | $ 1.80 | $ 0.83 | $ (0.43) | $ 0.89 | $ 4.16 | $ 4.33 |
Diluted | (1.64) | 1.92 | 0.90 | (0.40) | 1.72 | 1.60 | 0.81 | (0.43) | 0.88 | 3.92 | 4.06 |
Convertible perpetual preferred stock, cash dividends declared per share | 0.00 | 16.88 | 16.87 | 16.88 | 16.87 | 16.88 | 16.87 | 16.88 | 50.63 | 67.50 | 67.50 |
Common stock, cash dividends declared per share | 0.54 | 0.54 | 0.53 | 0.53 | 0.53 | 0.53 | 0.52 | 0.52 | 2.14 | 2.10 | $ 2.06 |
Market price range of common stock, high | 83.35 | 64.20 | 61.69 | 57.75 | 57.27 | 57.72 | 58.41 | 57.76 | 83.35 | 57.27 | |
Market price range of common stock, low | $ 63.30 | $ 52.40 | $ 55.29 | $ 52.26 | $ 51.49 | $ 49.70 | $ 46.98 | $ 46.80 | $ 63.30 | $ 51.49 |
Schedule II - Valuation And Qualifying Accounts (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Allowance for doubtful accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 9,099 | $ 5,482 | $ 6,536 |
Net Additions (Reversals) Charged to Expense | (5,071) | 6,970 | 1,341 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (81) | (3,353) | (2,395) |
Balance at End of Period | 3,947 | 9,099 | 5,482 |
Allowance for supplier accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 28,865 | 34,673 | 46,078 |
Net Additions (Reversals) Charged to Expense | (857) | 815 | 3,734 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (934) | (6,623) | (15,139) |
Balance at End of Period | 27,074 | 28,865 | 34,673 |
Allowance for recoverable taxes [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 18,752 | 23,218 | 29,504 |
Net Additions (Reversals) Charged to Expense | (3,392) | 1,755 | 1,855 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (2,808) | (6,221) | (8,141) |
Balance at End of Period | $ 12,552 | $ 18,752 | $ 23,218 |
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