RESTRUCTURING AND IMPAIRMENT COSTS

During fiscal years ended March 31, 2017 and 2016, Universal recorded restructuring and impairment costs related to various initiatives to adjust certain operations and reduce costs. Those costs primarily related to operations that are part of the Other Regions reportable segment of the Company's flue-cured and burley leaf tobacco operations. There were no restructuring or impairment costs recorded for the fiscal year ended March 31, 2018.

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 now processes 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.

A summary of the restructuring and impairment costs incurred during the fiscal years ended March 31, 2017 and 2016, is as follows:



	Fiscal Years Ended March 31,
	2017		2016
Restructuring Costs:
Employee termination benefits	$	2,083	$	1,629
Other restructuring costs	—		96
	2,083		1,725
Impairment Costs:
Property and equipment and farmer loans	2,276		664
Total restructuring and impairment costs	$	4,359	$	2,389

A reconciliation of the Company’s liability for employee termination benefits and other restructuring costs for fiscal years 2016 through 2018 is as follows:



	Employee Termination Benefits			Other Costs			Total
Balance at April 1, 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
Fiscal Year 2018 Activity:
Payments	(272		)	(43		)	(315		)
Balance at March 31, 2018	$	29		$	—		$	29

The restructuring liability at March 31, 2018 is expected to be paid during fiscal year 2019. 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.