Restructuring and Related Activities

9 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Impairment Costs Disclosure

RESTRUCTURING AND IMPAIRMENT COSTS

Universal continually reviews its business for opportunities to realize efficiencies, reduce costs, and realign its operations in response to business changes. Restructuring and impairment costs are periodically incurred in connection with those activities.

There were no restructuring and impairment costs incurred for the three and nine months ended December 31, 2022.

Tobacco Operations

As a result of efforts to exit the idled tobacco operations in Tanzania, the Company reevaluated the carrying values of property, plant, and equipment associated with the Tanzania operations. During the three months ended December 31, 2021, the Company determined the carrying value exceeded the estimated fair value of those assets and recognized a $9.4 million impairment charge. During the nine months ended December 31, 2022, the Company entered into a sales agreement to sell all

outstanding shares of common stock, which included all properties, of the idled companies in Tanzania. See Note 6 for additional information about the sale of the idled tobacco operations in Tanzania.

During the three and nine months ended December 31, 2021, the Company also incurred $0.6 million and $2.2 million of termination costs for the Tobacco Operations segment, respectively.

Ingredients Operations

During the three and nine months ended December 31, 2021, the Company recognized net gains of $1.6 million and $1.2 million, respectively, for the sale of the remaining property, plant, and equipment associated with wind-down of Carolina Innovative Food Ingredients, Inc. (“CIFI”), a sweet potato processing operation located in Nashville, North Carolina that was announced in fiscal year 2021.

A summary of the restructuring and impairment costs recorded for the three and nine months ended December 31, 2021 and were as follows:

	Three Months Ended December 31,			Nine Months Ended December 31,
(in thousands)		2021			2021
Restructuring costs:
Employee termination benefits		$	627		$	2,174
Other		—			(24)
Total restructuring costs		627			2,150
Impairment costs:
Property, plant and equipment		7,806			8,307
Total impairment costs		7,806			8,307
Total restructuring and impairment costs		$	8,433		$	10,457