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Restructuring And Impairment Costs
 3 Months Ended
Jun. 30, 2012
Restructuring Costs [Abstract]  
Restructuring And Impairment Costs
RESTRUCTURING AND IMPAIRMENT COSTS

During fiscal years 2011 and 2012, Universal recorded approximately $33 million of restructuring and impairment costs related to various initiatives to adjust operations and reduce costs. Approximately $12 million of those costs related to the closing of the Company’s leaf tobacco processing facility in Canada. The remaining amounts were associated with various other cost reduction initiatives, including voluntary early retirement offers and involuntary separations at the Company’s headquarters and operating locations in the United States, South America, Africa, Europe, and Asia, as well as costs related to the termination of a business arrangement with a supplier and processor of tobacco in Europe in response to market changes. The restructuring and impairment costs primarily related to operating subsidiaries that are part of the North America and Other Regions reportable segments.

No restructuring or impairment costs were recorded during the three months ended June 30, 2012. A summary of the restructuring costs recorded during the three months ended June 30, 2011, is as follows:
 
(in thousands of dollars)
 
Three Months Ended June 30, 2011
 
 
 
Employee termination benefits
 
$
3,762

Other restructuring costs
 
3,097

   Total
 
$
6,859



A reconciliation of the Company’s liability for the employee termination benefits and other restructuring costs discussed above for the three months ended June 30, 2012 and 2011, is as follows:

(in thousands of dollars)
 
Employee
Termination
Benefits
 
Other Costs
 
Total
 
 
 
 
 
 
 
Balance at beginning of year
 
$
6,386

 
$
225

 
$
6,611

Costs charged to expense
 
3,762

 
3,097

 
6,859

Payments
 
(5,194
)
 
(36
)
 
(5,230
)
Balance at June 30, 2011
 
$
4,954

 
$
3,286

 
$
8,240

 
 
 
 
 
 
 
Balance at beginning of year
 
$
1,271

 
$
291

 
$
1,562

Payments
 
(782
)
 
(216
)
 
(998
)
Balance at June 30, 2012
 
$
489

 
$
75

 
$
564


Most of the restructuring liability remaining at June 30, 2012 is expected to be paid by the end of the current fiscal year. Universal continually reviews its business for opportunities to realize efficiencies, reduce costs, and realign its operations in response to business changes. The Company may incur additional restructuring costs and asset impairment charges in future periods as business changes occur and additional cost savings initiatives are implemented.