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Operating Segments
 12 Months Ended
Mar. 31, 2012
Operating Segments [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, Special Services, and Oriental. 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. 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.

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 because they also have similar economic characteristics. North America is reported as an individual operating segment because its economic characteristics are dissimilar to the other regions, as its operations do not require significant working capital investments for crop financing and inventory, and toll processing is an important source of its operating income. The Dark Air-Cured, Special Services and Oriental segments, which have dissimilar characteristics in some of the categories mentioned above, are reported as “other tobacco operations” because each is below the measurement threshold for separate reporting.

Universal incurs overhead expenses related to senior management, 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 (excluding significant non-recurring charges or credits), plus equity in the pretax earnings of unconsolidated affiliates.






















Reportable segment data as of or for the fiscal years ended March 31, 2012, 2011, and 2010, is as follows:
 
Sales and Other Operating Revenues
 
Operating Income
 
Fiscal Year Ended March 31,
 
Fiscal Year Ended March 31,
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Flue-cured and burley leaf tobacco operations:
 
 
 
 
 
 
 
 
 
 
 
North America
$
314,248

 
$
340,366

 
$
357,195

 
$
30,037

 
$
59,278

 
$
57,006

Other regions (1)
1,893,388

 
1,944,410

 
1,895,829

 
180,670

 
169,989

 
182,513

Subtotal
2,207,636

 
2,284,776

 
2,253,024

 
210,707

 
229,267

 
239,519

Other tobacco operations (2)
239,241

 
286,751

 
238,714

 
12,841

 
28,658

 
40,066

Segment total
2,446,877

 
2,571,527

 
2,491,738

 
223,548

 
257,925

 
279,585

Deduct:
 
 
 
 
 
 
 
 
 
 
 
Equity in pretax earnings of unconsolidated affiliates (3)
 
 
 
 
 
 
(3,195
)
 
(8,634
)
 
(22,376
)
Restructuring and impairment costs (4)
 
 
 
 
 
 
(11,661
)
 
(21,504
)
 
—

Charge for (reversal of) European Commission fines (4)
 
 
 
 
 
 
(49,091
)
 
7,445

 
—

Add:
 
 
 
 
 
 
 
 
 
 
 
Other income (4)
 
 
 
 
 
 
20,703

 
19,368

 
—

Consolidated total
$
2,446,877

 
$
2,571,527

 
$
2,491,738

 
$
180,304

 
$
254,600

 
$
257,209

 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
 
Goodwill
 
March 31,
 
March 31,
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Flue-cured and burley leaf tobacco operations:
 
 
 
 
 
 
 
 
 
 
 
North America
$
256,546

 
$
289,950

 
$
362,008

 
$
—

 
$
—

 
$
—

Other regions (1)
1,712,970

 
1,612,558

 
1,649,349

 
96,564

 
96,543

 
102,224

Subtotal
1,969,516

 
1,902,508

 
2,011,357

 
96,564

 
96,543

 
102,224

Other tobacco operations (2)
297,403

 
325,359

 
359,683

 
1,713

 
1,713

 
1,713

Segment and consolidated totals
$
2,266,919

 
$
2,227,867

 
$
2,371,040

 
$
98,277

 
$
98,256

 
$
103,937

 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
 
Capital Expenditures
 
Fiscal Year Ended March 31,
 
Fiscal Year Ended March 31,
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Flue-cured and burley leaf tobacco operations:
 
 
 
 
 
 
 
 
 
 
 
North America
$
10,201

 
$
11,866

 
$
11,953

 
$
438

 
$
3,080

 
$
12,105

Other regions (1)
29,475

 
28,541

 
26,710

 
32,059

 
34,324

 
31,283

Subtotal
39,676

 
40,407

 
38,663

 
32,497

 
37,404

 
43,388

Other tobacco operations (2)
4,190

 
4,865

 
4,833

 
5,677

 
1,725

 
14,189

Segment and consolidated totals
$
43,866

 
$
45,272

 
$
43,496

 
$
38,174

 
$
39,129

 
$
57,577


(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 inter-company eliminations. Oriental does not contribute significantly to the reported amounts for sales and other operating revenues, goodwill, depreciation and amortization, or capital expenditures because its financial results consist principally of equity in the pretax earnings of an unconsolidated affiliate. The investment in the unconsolidated affiliate is included in segment assets and was approximately $89.7 million, $110.8 million, and $101.4 million, at March 31, 2012, 2011, and 2010, respectively.
(3)
Item is included in segment operating income, but is not included in consolidated operating income.
(4)
Item is not included in segment operating income, but is included in consolidated operating income.
Geographic data as of, or for, the fiscal years ended March 31, 2012, 2011, and 2010, is presented below. Sales and other operating revenues are attributed to individual countries based on the final destination of the shipment. Long-lived assets consist of net property, plant, and equipment, goodwill, other intangibles, and certain other non-current assets.

Geographic Data
Sales and Other Operating Revenues
 
Fiscal Year Ended March 31,
 
2012
 
2011
 
2010
United States
$
315,610

 
$
340,313

 
$
305,390

Belgium
210,425

 
345,774

 
469,067

Germany
210,791

 
267,087

 
199,768

All other countries
1,710,051

 
1,618,353

 
1,517,513

Consolidated total
$
2,446,877

 
$
2,571,527

 
$
2,491,738

 
 
 
 
 
 
 
Long-Lived Assets
 
Fiscal Year Ended March 31,
 
2012
 
2011
 
2010
United States
$
75,330

 
$
88,910

 
$
100,698

Brazil
139,484

 
141,535

 
156,961

Mozambique
50,475

 
53,854

 
50,045

All other countries
137,169

 
131,950

 
128,921

Consolidated total
$
402,458

 
$
416,249

 
$
436,625