XML 37 R24.htm IDEA: XBRL DOCUMENT
v3.19.1

Operating Segments | 12 Months Ended
--- | ---
Mar. 31, 2019
Segment Reporting [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. Some of these tobacco types are also increasingly used in the manufacture of non-combustible tobacco products that are intended to provide consumers with an alternative to traditional combustible 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, Oriental, and Special Services. 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. The Dark Air-Cured group supplies dark air-cured tobacco principally to manufacturers of cigars, pipe tobacco, and smokeless tobacco products, and the Oriental business supplies oriental tobacco 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. Special Services includes the Company's laboratory services business, which provides physical and chemical product testing and smoke testing for customers, its food ingredients business, and its liquid nicotine business. 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, “Other Regions”, because they also have similar economic characteristics. North America is reported as an individual operating segment because its economic characteristics differ from the other regions, generally because its operations require lower working capital investments for crop financing and inventory. The Dark Air-Cured, Oriental and Special Services segments, which have dissimilar characteristics in some of the categories mentioned above, are reported together as “Other Tobacco Operations” because each is below the measurement threshold for separate reporting. Universal incurs overhead expenses related to senior management, sales, 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, plus equity in the pretax earnings of unconsolidated affiliates. Reportable segment data as of, or for, the fiscal years ended March 31, 2019, 2018, and 2017, is as follows:
| Sales and Other Operating Revenues |  | Operating Income
| Fiscal Year Ended March 31, |  | Fiscal Year Ended March 31,
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Flue-Cured and Burley Leaf Tobacco Operations: |  |  |  |  |  |  |  |  |  |  |
North America | $ | 382,631 |  |  | $ | 308,691 |  |  | $ | 416,438 |  |  | $ | 23,069 |  |  | $ | 23,091 |  |  | $ | 35,221 |
Other Regions (1) | 1,569,738 |  |  | 1,482,188 |  |  | 1,422,991 |  |  | 151,527 |  |  | 146,761 |  |  | 143,294 |
Subtotal | 1,952,369 |  |  | 1,790,879 |  |  | 1,839,429 |  |  | 174,596 |  |  | 169,852 |  |  | 178,515 |
Other Tobacco Operations (2) | 274,784 |  |  | 243,068 |  |  | 231,789 |  |  | 12,176 |  |  | 10,098 |  |  | 10,019 |
Segment total | 2,227,153 |  |  | 2,033,947 |  |  | 2,071,218 |  |  | 186,772 |  |  | 179,950 |  |  | 188,534 |
Deduct: Equity in pretax earnings of unconsolidated affiliates (3) |  |  |  |  |  |  | (5,299 | ) |  | (9,125 | ) |  | (5,774 | )
Restructuring and impairment costs (4) |  |  |  |  |  |  | (20,304 | ) |  | — |  |  | (4,359 | )
Consolidated total | $ | 2,227,153 |  |  | $ | 2,033,947 |  |  | $ | 2,071,218 |  |  | $ | 161,169 |  |  | $ | 170,825 |  |  | $ | 178,401 |
| Segment Assets |  | Goodwill
| March 31, |  | March 31,
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Flue-Cured and Burley Leaf Tobacco Operations: |  |  |  |  |  |  |  |  |  |  |
North America | $ | 294,064 |  |  | $ | 368,672 |  |  | $ | 357,406 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Other Regions (1) | 1,473,100 |  |  | 1,460,961 |  |  | 1,465,109 |  |  | 96,194 |  |  | 97,094 |  |  | 97,159 |
Subtotal | 1,767,164 |  |  | 1,829,633 |  |  | 1,822,515 |  |  | 96,194 |  |  | 97,094 |  |  | 97,159 |
Other Tobacco Operations (2) | 366,020 |  |  | 338,999 |  |  | 300,890 |  |  | 1,713 |  |  | 1,713 |  |  | 1,644 |
Segment and consolidated totals | $ | 2,133,184 |  |  | $ | 2,168,632 |  |  | $ | 2,123,405 |  |  | $ | 97,907 |  |  | $ | 98,807 |  |  | $ | 98,803 |
| Depreciation and Amortization |  | Capital Expenditures
| Fiscal Year Ended March 31, |  | Fiscal Year Ended March 31,
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Flue-Cured and Burley Leaf Tobacco Operations: |  |  |  |  |  |  |  |  |  |  |
North America | $ | 4,756 |  |  | $ | 4,772 |  |  | $ | 4,626 |  |  | $ | 3,137 |  |  | $ | 3,316 |  |  | $ | 4,202 |
Other Regions (1) | 24,088 |  |  | 24,547 |  |  | 26,106 |  |  | 22,569 |  |  | 21,820 |  |  | 21,619 |
Subtotal | 28,844 |  |  | 29,319 |  |  | 30,732 |  |  | 25,706 |  |  | 25,136 |  |  | 25,821 |
Other Tobacco Operations (2) | 8,306 |  |  | 5,574 |  |  | 5,238 |  |  | 13,054 |  |  | 8,901 |  |  | 9,809 |
Segment and consolidated totals | $ | 37,150 |  |  | $ | 34,893 |  |  | $ | 35,970 |  |  | $ | 38,760 |  |  | $ | 34,037 |  |  | $ | 35,630 |
(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 intercompany eliminations. Sales and other operating revenues, goodwill, depreciation and amortization, and capital expenditures include limited amounts or no amounts for Oriental because the business is accounted for on the equity method and its financial results consist principally of equity in the pretax earnings of the unconsolidated affiliate. The investment in the unconsolidated affiliate is included in segment assets and was approximately $79.2 million, $89.3 million, and $78.1 million, at March 31, 2019, 2018, and 2017, respectively.
(3) | Equity in pretax earnings of unconsolidated affiliates is included in segment operating income (Other Tobacco Operations segment), but is reported below consolidated operating income and excluded from that total in the consolidated statements of income.
(4) | Restructuring and impairment costs are excluded from segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 3).
Geographic data as of, or for, the fiscal years ended March 31, 2019, 2018, and 2017, is presented below. Sales and other operating revenues are attributed to individual countries based on the final destination of the shipment. Long-lived assets generally consist of net property, plant, and equipment, goodwill, and other intangibles.
Geographic Data | Sales and Other Operating Revenues
| Fiscal Year Ended March 31,
| 2019 |  | 2018 |  | 2017
Belgium | $ | 390,433 |  |  | $ | 339,391 |  |  | $ | 320,735 |
United States | 227,771 |  |  | 249,281 |  |  | 320,731 |
China | 115,174 |  |  | 120,859 |  |  | 137,855 |
Germany | 166,397 |  |  | 114,386 |  |  | 123,649 |
Poland | 145,478 |  |  | 110,445 |  |  | 94,681 |
Indonesia | 104,268 |  |  | 73,544 |  |  | 57,206 |
Philippines | 69,820 |  |  | 52,902 |  |  | 92,288 |
Mexico | 64,700 |  |  | 62,891 |  |  | 50,540 |
All other countries | 943,112 |  |  | 910,248 |  |  | 873,533 |
Consolidated total | $ | 2,227,153 |  |  | $ | 2,033,947 |  |  | $ | 2,071,218 |
| Long-Lived Assets
| March 31,
| 2019 |  | 2018 |  | 2017
United States | $ | 81,270 |  |  | $ | 88,196 |  |  | $ | 85,145 |
Brazil | 139,624 |  |  | 141,087 |  |  | 134,074 |
Mozambique | 45,051 |  |  | 47,800 |  |  | 50,311 |
All other countries | 134,543 |  |  | 145,638 |  |  | 146,698 |
Consolidated total | $ | 400,488 |  |  | $ | 422,721 |  |  | $ | 416,228 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration