RESTRUCTURING COSTS

During the three fiscal years ended March 31, 2014, Universal recorded restructuring costs related to various initiatives to adjust certain operations and reduce costs.

Fiscal Year Ended March 31, 2014

In fiscal year 2014, the Company's operating subsidiary in Brazil closed a factory and centralized all tobacco processing activities in its primary facility. In connection with this initiative, the Company incurred restructuring costs of approximately $4.0 million, including employee termination benefits, costs to relocate personnel and equipment to the main facility, and lease exit costs on the building that housed the closed operations. The remaining costs primarily related to voluntary early retirement arrangements at several locations around the Company. All of the fiscal year 2014 restructuring costs 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, 2013

During fiscal year 2013, the Company recorded restructuring costs totaling $4.1 million, primarily related to workforce reductions in one of the Company's operations in Africa. All of the restructuring costs incurred in fiscal year 2013 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, 2012

During fiscal year 2012, the Company recorded restructuring costs totaling $11.7 million. A significant portion of those costs consisted of employee termination benefits associated with 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 that are part of the North America and Other Regions reportable segments. In addition, the Company recorded approximately $3.1 million in costs related to the termination of its business arrangements with a supplier and processor of tobacco in Europe in response to market changes. That cost related to an operating subsidiary that is part of the Other Regions reportable segment.

A summary of the restructuring costs incurred during the fiscal years ended March 31, 2014, 2013, and 2012 is as follows:



	Fiscal Years Ended March 31,
	2014		2013		2012
Employee termination benefits	$	3,743	$	4,113	$	8,564
Other restructuring costs	3,003		—		3,097
Total restructuring costs incurred	$	6,746	$	4,113	$	11,661

A reconciliation of the Company’s liability for employee termination benefits and other restructuring costs for fiscal years 2012 through 2014 is as follows:



	Employee Termination Benefits			Other Costs			Total
Balance at April 1, 2011	$	6,386		$	225		$	6,611
Fiscal Year 2012 Activity:
Costs charged to expense	8,564			3,097			11,661
Payments	(13,679		)	(3,031		)	(16,710		)
Balance at March 31, 2012	1,271			291			1,562
Fiscal Year 2013 Activity:
Costs charged to expense	4,113			—			4,113
Payments	(5,002		)	(291		)	(5,293		)
Balance at March 31, 2013	382			—			382
Fiscal Year 2014 Activity:
Costs charged to expense	3,743			3,003			6,746
Payments	(2,099		)	(2,843		)	(4,942		)
Balance at March 31, 2014	$	2,026		$	160		$	2,186

The majority of the restructuring liability at March 31, 2014 will be paid in the early part of fiscal year 2015. Universal continually reviews its business for opportunities to realize efficiencies, reduce costs, and realign its operations in response to business changes. The Company may incur additional restructuring costs in future periods as business changes occur and additional cost savings initiatives are implemented.