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:



	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

A reconciliation of the Company’s liability for employee termination benefits and other restructuring costs for fiscal years 2015 through 2017 is as follows:



	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

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.