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Restructuring Costs | 12 Months Ended
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Mar. 31, 2021
Restructuring Costs [Abstract] |
Restructuring Costs | RESTRUCTURING AND IMPAIRMENT COSTS During the fiscal years ended March 31, 2021, 2020, and 2019 Universal recorded restructuring and impairment costs related to business changes and various initiatives to adjust certain operations and reduce costs. Fiscal Year Ended March 31, 2021 Tobacco Operations In fiscal year 2021, the Company incurred $4.4 million of termination and impairment costs associated with restructuring of tobacco buying and administrative operations in Africa, $1.2 million of combined termination costs in other regions, and a $0.9 million charge for the liquidation of an idled service entity in Tanzania. Total restructuring and impairments costs related to the Tobacco Operations segment were $6.5 million for the fiscal year ended March 31, 2021. Ingredients Operations In fiscal year 2021, the Company committed to a plan to wind-down its subsidiary, Carolina Innovative Food Ingredients, Inc. (“CIFI”), a sweet potato processing operation located in Nashville, North Carolina. The CIFI operation was a start-up project initially undertaken by the Company in fiscal year 2015. The decision to wind down CIFI is consistent with the Company’s capital allocation strategy to focus on delivering shareholder value through building and enhancing a plant-based ingredients platform, which includes integrating and exploring the synergies of recently acquired businesses, FruitSmart and Silva. The Company determined that CIFI was not a strategic fit for the platform’s long-term objectives. CIFI’s single-product focused processing facility and ongoing international pricing pressures, among other factors, created challenges that proved insurmountable. Sales of existing inventory and certain administrative activities at CIFI will continue into fiscal year 2022, but no manufacturing occurred subsequent to December 31, 2020. As a result of the decision to wind down the CIFI operations, the Company incurred termination costs totaling approximately $0.6 million for employees whose permanent positions were eliminated. In addition to the termination costs, the Company recognized various other costs associated with the wind-down of the CIFI facility. These costs include impairments of property, plant, and equipment (including the factory building), as well as inventory and supply write-downs. The total restructuring and impairment charge incurred for the CIFI wind-down was $16.1 million for the fiscal year ended March 31, 2021. Fiscal Year Ended March 31, 2020 Tobacco Operations In fiscal year 2020, the Company recorded restructuring and impairment costs totaling $7.5 million, primarily related to $3.4 million of employee termination benefits for a voluntary workforce reduction at the Company's tobacco facilities in North Carolina, $1.8 million of employee termination benefits for the Company’s operations in Africa, and a $2.2 million impairment charge for machinery used by the Company's operations in Africa. Restructuring and impairment costs were also incurred in connection with downsizing efforts at several other locations around the Company. Fiscal Year Ended March 31, 2019 Tobacco Operations Due to the decline in customer demand for tobaccos from Tanzania, as well as regulatory, tax, and other business and operating considerations, the Company undertook a formal review of the Tanzania leaf tobacco market and its operations there in the third quarter of fiscal year 2019. Based on that review, the Company’s operating subsidiaries in Tanzania took steps to reduce operating costs going forward, including discontinuation of a year-round workforce. As a result of that initiative, the subsidiaries recorded a $4.0 million restructuring charge for termination benefits paid to employees whose permanent positions were eliminated. All amounts related to termination benefit costs were paid by the end of fiscal year 2019. In addition, as a result of the decrease in production volumes of Tanzania tobaccos and the associated reduced profitability, the Company determined that indicators of impairment in the carrying value of the property, plant and equipment comprising the Tanzania operations were present at December 31, 2018. Accordingly, based on the applicable accounting guidance, the Company tested the recoverability of those long-lived assets using undiscounted estimates of the future cash flows from the use of those assets and their eventual disposition. The property, plant and equipment were evaluated for recoverability using two distinct asset groups: (1) the land, building, and equipment comprising the processing facility, and (2) all remaining assets, which are substantially devoted to buying and receiving delivery of unprocessed leaf from farmers and marketing and shipping the processed tobacco to customers. The recoverability tests indicated that both asset groups were impaired at December 31, 2018. As a result, the Company determined the fair value of each asset group based principally on a probability-weighting of the discounted cash flows expected under multiple operating and disposition scenarios. An impairment charge of approximately $14.6 million was recorded to reduce the carrying value of the assets to their indicated fair values. The property, plant and equipment assets are used in buying, processing, and shipping and remain classified as “held and used” at this time as provided for under the accounting guidance. Should the expected cash flows from the future use and/or disposition of the assets change from the estimates on which their fair values were determined, additional impairment charges could be required, or gains or losses on any disposition of the assets could be recorded. The Company also had goodwill related to the Tanzanian operations of approximately $0.9 million which was separately tested for recoverability and fully written off based on the results of that test. Additional restructuring costs of approximately $0.9 million were incurred in connection with downsizing efforts at other locations around the Company during fiscal year 2019. A summary of the restructuring and impairment costs incurred during the fiscal years ended March 31, 2021, 2020, and 2019 is as follows:
|  | Fiscal Years Ended March 31,
|  | 2021 |  | 2020 |  | 2019
Restructuring Costs: |  |  |  |  |  |
Employee termination benefits |  | $ | 5,237 |  |  | $ | 5,356 |  |  | $ | 4,608 |
Other restructuring costs |  | 3,468 |  |  | — |  |  | 223 |
|  | 8,705 |  |  | 5,356 |  |  | 4,831 |
Impairment Costs: |  |  |  |  |  |
Property, plant, and equipment and other noncurrent assets |  | 13,872 |  |  | 2,187 |  |  | 14,584 |
Goodwill |  | — |  |  | — |  |  | 889 |
|  | $ | 13,872 |  |  | $ | 2,187 |  |  | $ | 15,473 |
Total restructuring and impairment costs |  | $ | 22,577 |  |  | $ | 7,543 |  |  | $ | 20,304 |
A reconciliation of the Company’s liability for employee termination benefits and other restructuring costs for fiscal years 2019 through 2021 is as follows:
|  | Employee Termination Benefits |  | Other Costs |  | Total
Balance at April 1, 2019 |  | $ | 29 |  |  | $ | — |  |  | $ | 29 |
Fiscal Year 2019 Activity: |  |  |  |  |  |
Costs charged to expense |  | 4,608 |  |  | 223 |  |  | 4,831 |
Payments and write-offs |  | (4,014) |  |  | — |  |  | (4,014) |
Balance at March 31, 2019 |  | 623 |  |  | 223 |  |  | 846 |
Fiscal Year 2020 Activity: |  |  |  |  |  |
Costs charged to expense |  | 5,356 |  |  | — |  |  | 5,356 |
Payments and write-offs |  | (2,564) |  |  | (223) |  |  | (2,787) |
Balance at March 31, 2020 |  | 3,415 |  |  | — |  |  | 3,415 |
Fiscal Year 2021 Activity: |  |  |  |  |  |
Costs charged to expense |  | 5,237 |  |  | 3,468 |  |  | 8,705 |
Payments and write-offs |  | (7,282) |  |  | (2,855) |  |  | (10,137) |
Balance at March 31, 2021 |  | $ | 1,370 |  |  | $ | 613 |  |  | $ | 1,983 |
The restructuring liability at March 31, 2021 is expected to be paid during fiscal year 2022. 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.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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