Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2021 | May 25, 2021 | Sep. 30, 2020 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2021 | ||
Entity File Number | 001-00652 | ||
Entity Registrant Name | UNIVERSAL CORPORATION | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 54-0414210 | ||
Entity Address, Address Line One | 9201 Forest Hill Avenue, | ||
Entity Address, City or Town | Richmond, | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 23235 | ||
City Area Code | 804 | ||
Local Phone Number | 359-9311 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | UVV | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 1.3 | ||
Entity Common Stock, Shares Outstanding | 24,514,867 | ||
Entity Central Index Key | 0000102037 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Income Statement [Abstract] | ||||
Sales and other operating revenues | $ 1,983,357 | $ 1,909,979 | $ 2,227,153 | |
Costs and expenses | ||||
Cost of goods sold | 1,597,354 | 1,553,167 | 1,820,562 | |
Selling, general and administrative expenses | 219,789 | 222,902 | 225,118 | |
Other income | [1] | (4,173) | 0 | 0 |
Restructuring and impairment costs | 22,577 | 7,543 | 20,304 | |
Operating income | 147,810 | 126,367 | 161,169 | |
Equity in pretax earnings of unconsolidated affiliates | [2] | 2,985 | 4,211 | 5,299 |
Other non-operating income (expense) | (440) | 986 | 832 | |
Interest income | 325 | 1,581 | 1,532 | |
Interest expense | 24,954 | 19,854 | 17,510 | |
Income before income taxes | 125,726 | 113,291 | 151,322 | |
Income taxes | 29,412 | 35,288 | 41,188 | |
Net income | 96,314 | 78,003 | 110,134 | |
Less: net income attributable to noncontrolling interests in subsidiaries | (8,904) | (6,323) | (6,013) | |
Net income attributable to Universal Corporation | $ 87,410 | $ 71,680 | $ 104,121 | |
Earnings per share: | ||||
Basic | $ 3.55 | $ 2.87 | $ 4.14 | |
Diluted | $ 3.53 | $ 2.86 | $ 4.11 | |
Weighted average common shares outstanding: | ||||
Basic | 24,656,009 | 24,982,259 | 25,129,192 | |
Diluted | 24,788,566 | 25,106,351 | 25,330,437 | |
[1] | Other income represents the reversal of a portion of the contingent consideration liability associated with the acquisition of FruitSmart. See Note 2 for additional information. | |||
[2] | Equity in pretax earnings of unconsolidated affiliates is included in reportable segment operating income, but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 96,314 | $ 78,003 | $ 110,134 |
Other comprehensive income (loss): | |||
Foreign currency translation, net of income taxes | 8,272 | (3,066) | (16,316) |
Pension and other postretirement benefit plans, net of income taxes | 17,038 | (14,766) | (11,665) |
Total other comprehensive income (loss), net of income taxes | 45,044 | (56,150) | (35,784) |
Total comprehensive income | 141,358 | 21,853 | 74,350 |
Less: comprehensive income attributable to noncontrolling interests | (9,388) | (6,079) | (5,856) |
Comprehensive income attributable to Universal Corporation | 131,970 | 15,774 | 68,494 |
Foreign currency hedge, net of income taxes [Member] | |||
Other comprehensive income (loss): | |||
Hedges, net of income taxes | 11,812 | (11,850) | (341) |
Interest rate hedge, net of income taxes [Member] | |||
Other comprehensive income (loss): | |||
Hedges, net of income taxes | $ 7,922 | $ (26,468) | $ (7,462) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 197,221 | $ 107,430 |
Accounts receivable, net | 367,482 | 340,711 |
Advances to suppliers, net | 121,618 | 133,778 |
Accounts receivable—unconsolidated affiliates | 584 | 11,483 |
Inventories—at lower of cost or net realizable value: | ||
Tobacco | 640,653 | 707,298 |
Other | 145,965 | 99,275 |
Prepaid income taxes | 15,029 | 12,144 |
Other current assets | 66,806 | 67,498 |
Total current assets | 1,555,358 | 1,479,617 |
Property, plant and equipment | ||
Land | 22,400 | 21,376 |
Buildings | 284,430 | 256,488 |
Machinery and equipment | 658,826 | 634,395 |
Total property, plant and equipment | 965,656 | 912,259 |
Less accumulated depreciation | (616,146) | (597,106) |
Property, plant and equipment, net | 349,510 | 315,153 |
Other assets | ||
Operating lease right-of-use assets | 31,230 | 39,256 |
Goodwill, net | 173,051 | 126,826 |
Other intangibles, net | 72,304 | 17,861 |
Investments in unconsolidated affiliates | 84,218 | 77,543 |
Deferred income taxes | 12,149 | 20,954 |
Pension asset | 11,950 | 0 |
Other noncurrent assets | 52,154 | 43,711 |
Total other assets | 437,056 | 326,151 |
Total assets | 2,341,924 | 2,120,921 |
Current liabilities | ||
Notes payable and overdrafts | 101,294 | 78,033 |
Accounts payable and accrued expenses | 139,484 | 140,202 |
Accounts payable—unconsolidated affiliates | 1,282 | 55 |
Customer advances and deposits | 8,765 | 10,242 |
Accrued compensation | 29,918 | 23,710 |
Income taxes payable | 4,516 | 5,334 |
Current portion of operating lease liabilities | 7,898 | 9,823 |
Current portion of long-term debt | 0 | 0 |
Total current liabilities | 293,157 | 267,399 |
Long-term debt | 518,172 | 368,764 |
Pensions and other postretirement benefits | 57,637 | 70,680 |
Long-term operating lease liabilities | 19,725 | 25,893 |
Other long-term liabilities | 59,814 | 69,427 |
Deferred income taxes | 44,994 | 29,474 |
Total liabilities | 993,499 | 831,637 |
Shareholders’ equity | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Issued | 326,673 | 321,502 |
Retained earnings | 1,087,663 | 1,076,760 |
Accumulated other comprehensive loss | (107,037) | (151,597) |
Total Universal Corporation shareholders' equity | 1,307,299 | 1,246,665 |
Noncontrolling interests in subsidiaries | 41,126 | 42,619 |
Total shareholders' equity | 1,348,425 | 1,289,284 |
Total liabilities and shareholders' equity | $ 2,341,924 | $ 2,120,921 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Mar. 31, 2021 | Mar. 31, 2020 |
Preferred stock, shares authorized | 5,000,000 | |
Preferred stock, shares outstanding | 0 | |
Common stock, shares authorized | 100,000,000 | |
Common stock, shares outstanding | 24,514,867 | 24,421,835 |
Common Stock [Member] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 24,514,867 | 24,421,835 |
Common stock, shares outstanding | 24,514,867 | 24,421,835 |
Series A Junior Participating Preferred Stock [Member] | ||
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | $ 96,314 | $ 78,003 | $ 110,134 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 44,733 | 38,379 | 37,104 | |
Provision for losses (recoveries) on advances and guaranteed loans to suppliers | 5,534 | 937 | (2,339) | |
Inventory write-downs | 13,463 | 10,319 | 4,002 | |
Stock-based compensation expense | 6,106 | 5,631 | 8,152 | |
Foreign currency remeasurement loss (gain), net | (8,475) | 16,422 | 1,786 | |
Foreign currency exchange contracts | (1,567) | 499 | (32) | |
Deferred income taxes | (2,335) | (8,697) | 3,873 | |
Equity in net income of unconsolidated affiliates, net of dividends | (296) | 1,101 | 3,659 | |
Restructuring and impairment costs | [1] | 22,577 | 7,543 | 20,304 |
Restructuring payments | (8,283) | (2,787) | (4,014) | |
Change in estimated fair value of contingent consideration for FruitSmart acquisition | (4,173) | 0 | 0 | |
Other, net | (1,373) | (9,271) | 5,645 | |
Changes in operating assets and liabilities, net: | ||||
Accounts and notes receivable | (5,239) | 16,267 | (8,373) | |
Inventories and other assets | 43,199 | (94,538) | 33,796 | |
Income taxes | (4,516) | 10,927 | (8,981) | |
Accounts payable and other accrued liabilities | 26,171 | (48,534) | (54,912) | |
Customer advances and deposits | (1,426) | (11,304) | 14,718 | |
Net cash provided by operating activities | 220,414 | 10,897 | 164,522 | |
Cash Flows From Investing Activities: | ||||
Purchase of property, plant and equipment | (66,154) | (35,227) | (38,760) | |
Purchase of business, net of cash held by the business | (161,751) | (80,180) | 0 | |
Proceeds from sale of property, plant and equipment | 11,436 | 8,547 | 2,061 | |
Other | (800) | 495 | 2,000 | |
Net cash used by investing activities | (217,269) | (106,365) | (34,699) | |
Cash Flows From Financing Activities: | ||||
Issuance (repayment) of short-term debt, net | 29,396 | 24,114 | 12,036 | |
Issuance of long-term debt | 150,000 | 0 | 41,147 | |
Repayment of long-term debt | 0 | 0 | 41,147 | |
Dividends paid to noncontrolling interests in subsidiaries | (10,881) | (6,251) | (5,938) | |
Repurchase of common stock | 0 | (33,457) | (1,443) | |
Dividends paid on common stock | (75,177) | (75,368) | (69,883) | |
Proceeds from termination of interest rate swap agreements | 0 | 0 | 5,428 | |
Debt issuance costs and other | (1,949) | (3,184) | (5,987) | |
Net cash provided/(used) by financing activities | 91,389 | (94,146) | (65,787) | |
Effect of exchange rate changes on cash | 1,257 | (512) | (608) | |
Net increase (decrease) in cash and cash equivalents | 95,791 | (190,126) | 63,428 | |
Cash, restricted cash and cash equivalents at beginning of year | 107,430 | 297,556 | 234,128 | |
Cash, Restricted Cash and Cash Equivalents at End of Year | 203,221 | 107,430 | 297,556 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 203,221 | 297,556 | 297,556 | |
Supplemental information—cash paid for: | ||||
Interest | 24,198 | 19,376 | 16,462 | |
Income taxes, net of refunds | $ 36,443 | $ 30,984 | $ 44,856 | |
[1] | Restructuring and impairment costs are excluded from reportable segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 4) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Forward Foreign Currency Exchange Contracts [Member] | Interest Rate Swap Agreements [Member] | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | AOCI Attributable to Parent [Member]Forward Foreign Currency Exchange Contracts [Member] | AOCI Attributable to Parent [Member]Interest Rate Swap Agreements [Member] | Noncontrolling Interest [Member] |
Balance at beginning of year at Mar. 31, 2018 | $ 1,385,302 | $ 321,559 | $ 1,080,934 | $ (60,064) | $ 42,873 | ||||
Balance at beginning of year, shares at Mar. 31, 2018 | 24,930,725 | ||||||||
Changes in preferred and common stock | |||||||||
Repurchase of stock | $ (397) | (397) | |||||||
Issuance of stock, shares | 89,998 | ||||||||
Repurchase of stock, shares | (30,777) | ||||||||
Accrual of stock-based compensation | $ 8,152 | 8,152 | |||||||
Withholding of shares from stock-based compensation for grantee income taxes | (3,697) | (3,697) | |||||||
Dividend equivalents on RSUs | 983 | 983 | |||||||
Changes in retained earnings | |||||||||
Net income | 110,134 | 104,121 | 6,013 | ||||||
Cash dividends declared | |||||||||
Common stock | (74,914) | (74,914) | |||||||
Stock Repurchased And Retired During Period Value Retained Earnings | 1,046 | 1,046 | |||||||
Dividend equivalents on RSUs | (983) | 983 | |||||||
Other comprehensive income (loss) | |||||||||
Foreign currency translation, net of income taxes | (16,316) | (16,159) | (157) | ||||||
Hedges, net of income taxes | $ (341) | $ (7,462) | $ (341) | $ (7,462) | |||||
Pension and other postretirement benefit plans, net of income taxes | (11,665) | (11,665) | |||||||
Other changes in noncontrolling interests | |||||||||
Dividends paid to noncontrolling shareholders | (5,938) | (5,938) | |||||||
Balance at end of year at Mar. 31, 2019 | $ 1,379,878 | 326,600 | 1,106,178 | (95,691) | 42,791 | ||||
Balance at end of year, shares at Mar. 31, 2019 | 24,989,946 | ||||||||
Other changes in noncontrolling interests | |||||||||
Common stock, cash dividends declared per share | $ 3 | ||||||||
Repurchase of stock | $ (8,562) | (8,562) | |||||||
Issuance of stock, shares | 88,709 | ||||||||
Repurchase of stock, shares | (656,820) | ||||||||
Accrual of stock-based compensation | $ 5,631 | 5,631 | |||||||
Withholding of shares from stock-based compensation for grantee income taxes | (3,183) | (3,183) | |||||||
Dividend equivalents on RSUs | 1,016 | 1,016 | |||||||
Net income | 78,003 | 71,680 | 6,323 | ||||||
Common stock | (75,187) | (75,187) | |||||||
Stock Repurchased And Retired During Period Value Retained Earnings | 24,895 | 24,895 | |||||||
Dividend equivalents on RSUs | (1,016) | (1,016) | |||||||
Foreign currency translation, net of income taxes | (3,066) | (2,822) | (244) | ||||||
Hedges, net of income taxes | (11,850) | (26,468) | (11,850) | (26,468) | |||||
Pension and other postretirement benefit plans, net of income taxes | (14,766) | (14,766) | |||||||
Dividends paid to noncontrolling shareholders | (6,251) | (6,251) | |||||||
Balance at end of year at Mar. 31, 2020 | $ 1,289,284 | 321,502 | 1,076,760 | (151,597) | 42,619 | ||||
Balance at end of year, shares at Mar. 31, 2020 | 24,421,835 | ||||||||
Other changes in noncontrolling interests | |||||||||
Common stock, cash dividends declared per share | $ 3.04 | ||||||||
Issuance of stock, shares | 93,032 | ||||||||
Repurchase of stock, shares | 0 | ||||||||
Accrual of stock-based compensation | $ 6,106 | 6,106 | |||||||
Withholding of shares from stock-based compensation for grantee income taxes | (1,949) | (1,949) | |||||||
Dividend equivalents on RSUs | 1,014 | 1,014 | |||||||
Net income | 96,314 | 87,410 | 8,904 | ||||||
Common stock | (75,493) | (75,493) | |||||||
Dividend equivalents on RSUs | (1,014) | (1,014) | |||||||
Adoption of FASB Accounting Standards Update | (1,900) | ||||||||
Foreign currency translation, net of income taxes | 8,272 | 7,788 | 484 | ||||||
Hedges, net of income taxes | $ 11,812 | $ 7,922 | $ 11,812 | $ 7,922 | |||||
Pension and other postretirement benefit plans, net of income taxes | 17,038 | 17,038 | |||||||
Adoption of FASB Accounting Standards Update | (1,900) | ||||||||
Dividends paid to noncontrolling shareholders | (10,881) | (10,881) | |||||||
Balance at end of year at Mar. 31, 2021 | $ 1,348,425 | $ 326,673 | $ 1,087,663 | $ (107,037) | $ 41,126 | ||||
Balance at end of year, shares at Mar. 31, 2021 | 0 | ||||||||
Balance at end of year, shares at Mar. 31, 2021 | 24,514,867 | ||||||||
Other changes in noncontrolling interests | |||||||||
Common stock, cash dividends declared per share | $ 3.08 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, cash dividends declared per share | $ 3.08 | $ 3.04 | $ 3 |
Nature Of Operations And Signif
Nature Of Operations And Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature Of Operations And Significant Accounting Policies | NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Universal Corporation, which together with its subsidiaries is referred to herein as “Universal” or the “Company,” is a global business-to-business agri-products supplier to consumer product manufacturers. The Company is the leading global leaf tobacco supplier and provides high-quality plant-based ingredients to food and beverage end markets. The Company conducts its leaf tobacco business in over 30 countries, primarily in major tobacco-producing regions of the world. The extent to which the ongoing COVID-19 pandemic will impact the Company's financial condition, results of operations and demand for its products and services will depend on future developments, which are highly uncertain and cannot be predicted. Such developments may include the ongoing geographic spread and mutations of COVID-19, the severity of the pandemic, the duration of the COVID-19 outbreak and the type and duration of actions that may be taken by various governmental authorities in response to the COVID-19 pandemic and the impact on the U.S. and the global economies, markets and supply chains. At March 31, 2021, it is not possible to predict the overall impact of the ongoing COVID-19 pandemic on the Company's business, financial condition, results of operations and demand for its products and services. Consolidation The consolidated financial statements include the accounts of Universal Corporation and all domestic and foreign subsidiaries in which the Company maintains a controlling financial interest. Control is generally determined based on a voting interest of greater than 50%, such that Universal controls all significant corporate activities of the subsidiary. All significant intercompany accounts and transactions are eliminated in consolidation. The equity method of accounting is used for investments in companies where Universal Corporation has a voting interest of 20% to 50%. These investments are accounted for under the equity method because Universal exercises significant influence over those companies, but not control. The Company received dividends totaling $2.9 million in fiscal year 2021, $3.9 million in fiscal year 2020, and $7.5 million in fiscal year 2019, from companies accounted for under the equity method. Investments where Universal has a voting interest of less than 20% are not significant and do not have readily determinable fair values. As such, the Company has elected the alternate method of measuring these investments at cost, less any impairment. The Company's 49% ownership interest in Socotab L.L.C. (“Socotab”), a leading supplier of oriental tobaccos with operations located principally in Eastern Europe and Turkey, is the primary investment accounted for under the equity method. The investment in Socotab is an important part of the Company's overall product and service arrangements with its major customers. The Company reviews the carrying value of its investments in Socotab and its other unconsolidated affiliates on a regular basis and considers whether any factors exist that might indicate an impairment in value that is other than temporary. For the fiscal year ended March 31, 2021, the Company determined that no such factors existed with respect to those investments. The Company's operations in Zimbabwe are deconsolidated under accounting requirements that apply under certain conditions to foreign subsidiaries that are subject to foreign exchange controls and other government restrictions. The investment in the Zimbabwe operations is accounted for at cost less impairment, and was zero at March 31, 2021 and 2020. The Company has a net foreign currency translation loss associated with the Zimbabwe operations of approximately $7.2 million, which remains a component of accumulated other comprehensive loss at March 31, 2021. As a regular part of its reporting, the Company reviews the conditions that resulted in the deconsolidation of the Zimbabwe operations to confirm that such accounting treatment is still appropriate. Dividends from the Zimbabwe operations are recorded in income in the period received. The Company holds less than a 100% financial interest in certain consolidated subsidiaries. The net income and shareholders’ equity attributable to the noncontrolling interests in these subsidiaries are reported on the face of the consolidated financial statements. There were no material changes in the Company’s ownership percentage in any of these subsidiaries during fiscal years 2021, 2020, or 2019. Investments in Unconsolidated Affiliates The Company’s investments in its unconsolidated affiliates, which include its Zimbabwe operations, are non-marketable securities. Universal reviews such investments for impairment whenever events or changes in circumstances indicate that the carrying amount of an investment may not be recovered. For example, the Company would review such an investment for impairment if the investee were to lose a significant customer, suffer a large reduction in sales margins, experience a major change in its business environment, or undergo any other significant change in its normal business. In assessing the recoverability of these investments, the Company follows the applicable accounting guidance in determining the fair value of the investments. In most cases, this involves the use of undiscounted and discounted cash flow models (Level 3 of the fair value hierarchy under the accounting guidance). If the fair value of an unconsolidated investee is determined to be lower than its carrying value, an impairment loss is recognized. The determination of fair value using discounted cash flow models is normally not based on observable market data from independent sources and therefore requires significant management judgment with respect to estimates of future operating earnings and the selection of an appropriate discount rate. The use of different assumptions could increase or decrease estimated future operating cash flows, and the discounted value of those cash flows, and therefore could increase or decrease any impairment charge related to these investments. In its consolidated statements of income, the Company reports its proportional share of the earnings of unconsolidated affiliates accounted for on the equity method based on the pretax earnings of those affiliates, as permitted under the applicable accounting guidance. All applicable foreign and U.S. income taxes are provided on these earnings and reported as a component of consolidated income tax expense. For unconsolidated affiliates located in foreign jurisdictions, repatriation of the Company’s share of the earnings through dividends is assumed in determining consolidated income tax expense. The following table provides a reconciliation of (1) equity in the pretax earnings of unconsolidated affiliates, as reported in the consolidated statements of income to (2) equity in the net income of unconsolidated affiliates, net of dividends, as reported in the consolidated statements of cash flows for the fiscal years ended March 31, 2021, 2020, and 2019: Fiscal Year Ended March 31, 2021 2020 2019 Equity in pretax earnings reported in the consolidated statements of income $ 2,985 $ 4,211 $ 5,299 Less: Equity in income taxes 180 (1,390) (1,441) Equity in net income 3,165 2,821 3,858 Less: Dividends received on investments (1) (2,869) (3,922) (7,517) Equity in net income, net of dividends, reported in the consolidated statements of cash flows $ 296 $ (1,101) $ (3,659) (1) In accordance with the applicable accounting guidance, dividends received from unconsolidated affiliates accounted for on the equity method that represent a return on capital (i.e., a return of earnings on a cumulative basis) are presented as operating cash flows in the consolidated statements of cash flows. Earnings Per Share The Company calculates basic earnings per share based on earnings available to common shareholders. The calculation uses the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed in a similar manner using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential common shares include unvested restricted stock units and performance share units that are assumed to be fully vested and paid out in shares of common stock. Calculations of earnings per share for the fiscal years ended March 31, 2021, 2020, and 2019, are provided in Note 5. Cash and Cash Equivalents All highly liquid investments with a maturity of three months or less at the time of purchase are classified as cash equivalents. Advances to Tobacco Suppliers In many sourcing origins where the Company operates, it provides agronomy services and seasonal advances of seed, fertilizer, and other supplies to tobacco farmers for crop production, or makes seasonal cash advances to farmers for the procurement of those inputs. These advances are short term, are repaid upon delivery of tobacco to the Company, and are reported in advances to suppliers in the consolidated balance sheets. In several origins, the Company has made long-term advances to tobacco farmers to finance curing barns and other farm infrastructure. In some years, due to low crop yields and other factors, individual farmers may not deliver sufficient volumes of tobacco to fully repay their seasonal advances, and the Company may extend repayment of those advances into future crop years. The long-term portion of advances is included in other noncurrent assets in the consolidated balance sheets. Both the current and the long-term portions of advances to tobacco suppliers are reported net of allowances recorded when the Company determines that amounts outstanding are not likely to be collected. Short-term and long-term advances to tobacco suppliers totaled approximately $144 million at March 31, 2021 and $153 million at March 31, 2020. The related valuation allowances totaled $18 million at March 31, 2021, and $16 million at March 31, 2020, and were estimated based on the Company’s historical loss information and crop projections. The allowances were increased by net provisions for estimated uncollectible amounts of approximately $5.5 million in fiscal year 2021 and $1.0 million in fiscal year 2020, respectively, and reduced by net recoveries of approximately $2.3 million in fiscal year 2019. These net provisions and recoveries are included in selling, general, and administrative expenses in the consolidated statements of income. Interest on advances is recognized in earnings upon the farmers’ delivery of tobacco in payment of principal and interest. Advances on which interest accrual had been discontinued totaled approximately $4 million at March 31, 2021 and $5 million at March 31, 2020. Inventories Inventories are valued at the lower of cost or net realizable value. Raw materials primarily consist of unprocessed leaf tobacco, which is clearly identified by type and grade at the time of purchase. The Company tracks the costs associated with this tobacco in the final product lots, and maintains this identification through the time of sale. This method of cost accounting is referred to as the specific cost or specific identification method. The predominant cost component of the Company’s inventories is the cost of the unprocessed tobacco. Direct and indirect processing costs related to these raw materials are capitalized and allocated to inventory in a systematic manner. The Company does not capitalize any interest or sales-related costs in inventory. Freight costs are recorded in cost of goods sold. Other inventories consist primarily of unprocessed and processed food and vegetable ingredients, seed, fertilizer, packing materials, and other supplies, and are valued principally at the lower of average cost or net realizable value. Recoverable Value-Added Tax Credits In many foreign countries, the Company’s local operating subsidiaries pay significant amounts of value-added tax (“VAT”) on purchases of unprocessed and processed tobacco, crop inputs, packing materials, and various other goods and services. In some countries, VAT is a national tax, and in other countries it is assessed at the state level. Items subject to VAT vary from jurisdiction to jurisdiction, as do the rates at which the tax is assessed. When tobacco is sold to customers in the country of origin, the operating subsidiaries generally collect VAT on those sales. The subsidiaries are normally permitted to offset their VAT payments against the collections and remit only the incremental VAT collections to the tax authorities. When tobacco is sold for export, VAT is normally not assessed. In countries where tobacco sales are predominately for export markets, VAT collections generated on downstream sales are often not sufficient to fully offset the subsidiaries’ VAT payments. In those situations, unused VAT credits can accumulate. Some jurisdictions have procedures that allow companies to apply for refunds of unused VAT credits from the tax authorities, but the refund process often takes an extended period of time, and it is not uncommon for refund applications to be challenged or rejected in part on technical grounds. Other jurisdictions may permit companies to sell or transfer unused VAT credits to third parties in private transactions, although approval for such transactions must normally be obtained from the tax authorities, limits on the amounts that can be transferred may be imposed, and the proceeds realized may be heavily discounted from the face value of the credits. Due to these factors, local operating subsidiaries in some countries can accumulate significant balances of VAT credits over time. The Company reviews these balances on a regular basis and records valuation allowances on the credits to reflect amounts that are not expected to be recovered, as well as discounts anticipated on credits that are expected to be sold or transferred. At March 31, 2021 and 2020, the aggregate balances of recoverable tax credits held by the Company’s subsidiaries totaled approximately $49 million and $52 million, respectively, and the related valuation allowances totaled approximately $19 million at both dates. The net balances are reported in other current assets and other noncurrent assets in the consolidated balance sheets. Property, Plant and Equipment Depreciation of property, plant and equipment is based upon historical cost and the estimated useful lives of the assets. Depreciation is calculated primarily using the straight-line method. Buildings include processing and blending facilities, offices, and warehouses. Machinery and equipment consists of processing and packing machinery and transport, office, and computer equipment. Estimated useful lives range as follows: buildings - 15 to 40 years; processing and packing machinery - 3 to 11 years; transport equipment - 3 to 10 years; and office and computer equipment - 3 to 12 years. Where applicable and material in amount, the Company capitalizes related interest costs during periods that property, plant and equipment are being constructed or made ready for service. No interest was capitalized in fiscal years 2021, 2020, or 2019. Leases As discussed below under "Accounting Pronouncements", the Company adopted updated comprehensive accounting guidance for leases at the beginning of fiscal year 2020 (Accounting Standards Update No. 2016-02, "Leases (Topic 842)" and supplemental amendments, which superseded the lease accounting requirements in Topic 840). The Company determines if an arrangement meets the definition of a lease at inception. The Company, as a lessee, enters into operating leases for land, buildings, equipment, and vehicles. For all operating leases with terms greater than 12 months and with fixed payment arrangements, a lease liability and corresponding right-of-use asset are recognized in the balance sheet for the term of the lease by calculating the net present value of future lease payments. On the date of lease commencement, the present value of lease liabilities is determined by discounting the future lease payments by the Company’s collateralized incremental borrowing rate, adjusted for the lease term and currency of the lease payments. If a lease contains a renewal option that the Company is reasonably certain to exercise, the Company accounts for the original lease term and expected renewal term in the calculation of the lease liability and right-of-use asset. Certain of the Company’s leases include both lease and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component, as the Company has elected the practical expedient to group lease and non-lease components for real estate leases. Goodwill and Other Intangibles Goodwill and other intangibles are disclosed in Note 7. Goodwill principally consists of the excess of the purchase price of acquired companies over the fair value of the net assets. Goodwill is carried at the lower of cost or fair value and is reviewed for potential impairment on an annual basis as of the end of the fiscal year. Accounting Standards Codification Topic 350 (“ASC 350”) permits companies to base their initial assessments of potential goodwill impairment on qualitative factors, and the Company elected to use that approach at March 31, 2021 and 2020. Those factors did not indicate that it was more likely than not that the fair value of any of the reporting units was less than their respective carrying value, therefore no potential impairment of the Company's recorded goodwill was noted as of those dates. Reporting units are distinct operating subsidiaries or groups of subsidiaries that typically compose the Company’s business in a specific country or location. Goodwill is allocated to reporting units based on the country or location to which a specific acquisition relates, or by allocation based on expected future cash flows if the acquisition relates to more than one country or location. The majority of the Company’s goodwill relates to its reporting unit in Brazil and recent acquisitions of Silva International Inc. and FruitSmart, Inc. See Note 2 for additional information. Significant adverse changes in the operations or estimated future cash flows for a reporting unit with recorded goodwill could result in an impairment charge. Other intangibles principally consists of finite lived intangible assets including customer-related intangibles, trade names, developed technology, and noncompetition agreements. Intangible assets acquired in a business combination are recorded at fair value using a discounted cash flow approach. A discounted cash flow approach to value intangible assets requires assumptions about the timing, amount, and probability of future net cash flows, as well as the discount rate and market participant considerations. Other intangibles are amortized on a straight-line basis over the intangible asset's economic life. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment, disclosed in Note 4 and Note 12, whenever events, changes in business conditions, or other circumstances provide an indication that such assets may be impaired. Potential impairment is initially assessed by comparing management’s undiscounted estimates of future cash flows from the use or disposition of the assets to their carrying value. If the carrying value exceeds the undiscounted cash flows, an impairment charge is recorded to reduce the carrying value of the asset to its fair value determined in accordance with the accounting guidance. In many cases, this involves the use of discounted cash flow models that are not based on observable market data from independent sources (Level 3 of the fair value hierarchy under the accounting guidance). Income Taxes The Company provides deferred income taxes on temporary differences between the book and tax basis of its assets and liabilities. Those differences arise principally from employee benefit accruals, depreciation, deferred compensation, undistributed earnings of unconsolidated affiliates, undistributed earnings of foreign subsidiaries, goodwill, and valuation allowances on farmer advances and value-added tax credits. Income taxes provided on pretax amounts recorded in accumulated other comprehensive income (loss) are released when the related pretax amounts are reclassified to earnings. Additional disclosures related to the Company's income taxes are disclosed in Note 6. Fair Values of Financial Instruments The fair value of the Company’s long-term debt, disclosed in Note 12, approximates the carrying amount since the variable interest rates in the underlying credit agreement reflect the market interest rates that were available to the Company at March 31, 2021. In periods when fixed-rate obligations are outstanding, fair values are estimated using market prices where they are available or discounted cash flow models based on current incremental borrowing rates for similar classes of borrowers and borrowing arrangements. The fair values of interest rate swap agreements designated as cash flow hedges and used to fix the variable benchmark rate on outstanding long-term debt are determined separately and recorded in other long-term liabilities. Except for interest rate swaps and forward foreign currency exchange contracts that are discussed below, the fair values of all other assets and liabilities that qualify as financial instruments approximate their carrying amounts. Derivative Financial Instruments The Company recognizes all derivatives on the balance sheet at fair value. Interest rate swaps and forward foreign currency exchange contracts are used from time to time to manage interest rate risk and foreign currency risk. The Company enters into such contracts only with counterparties of good standing. The credit exposure related to non-performance by the counterparties and the Company is considered in determining the fair values of the derivatives, and the effect has not been material to the financial statements or operations of the Company. Additional disclosures related to the Company’s derivatives and hedging activities are provided in Note 11. Translation and Remeasurement of Foreign Currencies The financial statements of foreign subsidiaries having the local currency as the functional currency are translated into U.S. dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates applicable to each reporting period for results of operations. Adjustments resulting from translation of financial statements are reflected as a separate component of other comprehensive income or loss. The financial statements of foreign subsidiaries having the U.S. dollar as the functional currency, with certain transactions denominated in a local currency, are remeasured into U.S. dollars. The remeasurement of local currency amounts into U.S. dollars creates remeasurement gains and losses that are included in earnings as a component of selling, general, and administrative expenses. The Company recognized net remeasurement gains of $8.5 million in fiscal year 2021, and net remeasurement losses of $16.4 million in fiscal year 2020 and $1.8 million in fiscal year 2019. Foreign currency transactions and forward foreign currency exchange contracts that are not designated as hedges generate gains and losses when they are settled or when they are marked-to-market under the prescribed accounting guidance. These transaction gains and losses are also included in earnings as a component of selling, general, and administrative expenses. The Company recognized net foreign currency transaction losses of $1.4 million in fiscal year 2021, $2.9 million in fiscal year 2020, and $4.3 million in fiscal year 2019. Revenue Recognition Revenue is recognized when the Company completes its performance obligation for the transfer of products and services under its contractual arrangements with customers. For sales of tobacco, satisfaction of the performance obligation and recognition of the corresponding revenue is based on the transfer of the ownership and control of the product to the customer, which is substantially unchanged from the previous accounting guidance. A large percentage of the Company’s sales are to major multinational manufacturers of consumer tobacco products. The Company works closely with those customers to understand and plan for their requirements for volumes, styles, and grades of leaf tobacco from its various growing regions, and extensive coordination is maintained on an ongoing basis to determine and satisfy their requirements for transfer of ownership and physical shipment of processed tobacco. The customers typically specify, in sales contracts and in shipping documents, the precise terms for transfer of title and risk of loss for the tobacco. Customer returns and rejections are not significant, and the Company’s sales history indicates that customer-specific acceptance provisions are consistently met upon transfer of title and risk of loss. While most of the Company’s revenue is derived from tobacco that is purchased from farmers, processed and packed in its factories, and then sold to customers, some revenue is earned from processing tobacco owned by customers and from other value-added services. The arrangements for processing services usually exist in specific markets where the customers contract directly with farmers for leaf production, and they have accounted for less than 5% of total revenue on an annual basis through the fiscal year ended March 31, 2021. Processing and packing of leaf tobacco is a short-duration process. Under normal operating conditions, raw tobacco that is placed into the production line exits as processed and packed tobacco within one hour, and is then later transported to customer-designated storage facilities. The revenue for these services is recognized when the performance obligation is met upon the completion of processing, and the Company's operating history indicates that customer requirements for processed tobacco are consistently met upon completion of processing. The Company has diversified its operations through acquisition of established companies that offer customers a wide range of both liquid and dehydrated fruit and vegetable ingredient products. These operations procure raw materials from domestic and international growers and suppliers and through a variety of processing steps (including sorting, cleaning, pressing, mixing, and blending), manufacture finished goods utilized in both human and pet food. The contracts for food ingredients with customers create a performance obligation to transfer the manufactured finished goods to the customer. Transaction prices for the sale of food ingredients are primarily based on negotiated fixed prices. At the point in time that the customer obtains control over the finished product, which is typically aligned with physical shipment under the contractual terms with the customer, the Company completes its performance obligation and recognizes the revenue for the sale. Additional disclosures related to the Company's revenue from contracts with customers are provided in Note 3. Stock-Based Compensation Share-based payments, such as grants of restricted stock units, performance share units, restricted stock, stock appreciation rights, and stock options, are measured at fair value and reported as expense in the financial statements over the requisite service period. Additional disclosures related to stock-based compensation are included in Note 15. Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Accounting Pronouncements Pronouncements Adopted in Fiscal Year 2019 In October 2016, the FASB issued Accounting Standards Update No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”). ASU 2016-16 requires companies to recognize the income tax effects of intercompany sales or transfers of assets other than inventory in the income statement as income tax expense in the period the sale or transfer occurs, rather than deferring those tax effects until the asset has been sold to a third-party or otherwise recognized in earnings through depreciation, amortization, or impairment. In prior fiscal reporting periods, various subsidiaries of the Company sold tobacco processing equipment to other subsidiaries, and the related income effects have been deferred as required under the previous accounting guidance. The Company adopted ASU 2016-16 effective April 1, 2018, the beginning of fiscal year 2019. Under the modified retrospective transition method required by the guidance, the Company recorded a $1.9 million reduction to retained earnings for the fiscal year ended March 31, 2019 for the cumulative effect of recognizing the deferred income tax effects on all prior intercompany sales of equipment as of the date of adoption. Pronouncements Adopted in Fiscal Year 2020 The Company adopted FASB Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) effective April 1, 2019, the beginning of the current fiscal year. For leases with fixed payment arrangements, ASU 2016-02 requires a lessee to recognize lease payment obligations as a lease liability and corresponding right-of-use asset in the balance sheet for the term of the lease. This guidance superseded Topic 840 “Leases.” The Company elected the practical expedient to not include leases with terms less than 12 months on the consolidated balance sheet. The Company elected the transition package of practical expedients that retained the historical lease identification, lease classification, and treatment of initial direct costs for leases prior to the adoption of ASU 2016-02. Additionally, as permitted under the new guidance the Company elected to not separate lease and non-lease components for certain classes of leased assets, including real estate. The Company elected the modified retrospective transition adoption method. Accordingly, on the date of adoption $36.6 million of operating lease right-of use assets and corresponding operating lease liabilities of $34.2 million were recognized on the Company's consolidated balance sheet. The adoption of ASU 2016-02 did not result in a cumulative-effect adjustment to retained earnings. The disclosures required for lease accounting are provided in Note 10. The Company adopted FASB Accounting Standards Update No. 2017-04, “Intangibles - Goodwill and Other (Topic 350)” (“ASU 2017-04”) effective July 1, 2019. Under current accounting guidance, the fair value of a reporting unit to which a specific goodwill balance relates is first compared to its carrying value in the financial statements (Step 1). If that comparison indicates that the goodwill is impaired, an implied fair value for the goodwill must then be calculated by deducting the individual fair values of all other assets and liabilities, including any unrecognized intangible assets, from the total fair value of the reporting unit. ASU 2017-04 simplifies the accounting guidance by eliminating Step 2 from the goodwill impairment test and using the fair value of the reporting unit determined in Step 1 to measure the goodwill impairment loss. There was no material impact to the consolidated financial statements from the adoption of ASU 2017-04. Pronouncements Adopted in Fiscal Year 2021 The Company adopted FASB Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) effective April 1, 2020. ASU 2016-13 requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company determined that the update applied to trade receivables, but that there was no material impact to the consolidated financial statements from the adoption of ASU 2016-13. The Company adopted FASB Accounting Standards Update No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of FASB Emerging Issues T |
Business Combinations
Business Combinations | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS Acquisition of Silva International, Inc. On October 1, 2020 the Company acquired 100% of the capital stock of Silva International, Inc. (“Silva”), a natural, specialty dehydrated vegetable, fruit, and herb processing company serving global markets, for approximately $164 million in cash and $5.9 million of additional working capital on-hand at the date of acquisition. The acquisition of Silva diversifies the Company's product offerings and generates new opportunities for its plant-based ingredients platform. The initial allocation of the purchase price for Silva was based on preliminary valuations and assumptions and is subject to change within the 12-month measurement period following the date of acquisition (October 1, 2020). The Company finalized a working capital settlement in the fourth quarter of fiscal year 2021 and adjusted the beginning balance sheet for certain tax related assets and liabilities. The Company is still reviewing tax related assets and liabilities. The final purchase price allocation will be completed by the second quarter of fiscal year 2022. The Company continues to employ one of Silva's selling shareholders and as stipulated in the Silva purchase agreement has transferred $6 million to a third-party escrow account that may ultimately be earned by the selling shareholder upon completion of a post-combination service period. Since the compensation agreement for the selling shareholder who remains employed with the Company includes a post-combination service period, the Company has excluded the entire $6 million in the purchase price to be allocated. The $6 million in escrow is recognized as restricted cash in other noncurrent assets on the consolidated balance sheet at March 31, 2021 . The contingent consideration arrangement for the selling shareholder includes a post-combination service requirement and forfeitable payment provisions, therefore under ASC Topic 805, “Business Combination s ,” must be treated as compensation expense and recognized ratably over the requisite service period in selling, general, and administrative expense on the consolidated statements of income. For the fiscal year ended March 31, 2021 , the Company incurred $3.9 million for acquisition-related transaction costs for the purchase of Silva. The acquisition-related costs were expensed as incurred and recorded in selling, general, and administrative expense on the consolidated statements of income. Acquisition of FruitSmart, Inc. On January 1, 2020 the Company acquired 100% of the capital stock of FruitSmart, Inc. (“FruitSmart”), an independent specialty fruit and vegetable ingredient processor serving global markets, for approximately $80 million in cash, up to $25 million of contingent consideration payments, and $3.8 million of additional working capital on-hand at the date of acquisition. The contingent consideration is based on FruitSmart’s achievement of certain adjusted gross profit metrics in calendar years 2020 and 2021 . The fair value of the contingent consideration, approximately $6.7 million, was recognized on the acquisition date and was measured using unobservable (Level 3) inputs. At June 30, 2020 the forecasted calendar year 2020 adjusted gross profit for FruitSmart was not expected to achieve the adjusted gross profit threshold required for a contingent consideration payment. Therefore, in the quarter ended June 30, 2020, the Company recorded $4.2 million in other operating income for the reversal of a portion of the contingent consideration liability. As of March 31, 2021, $2.5 million of contingent consideration liability related to the FruitSmart acquisition is included in accounts payable and accrued expenses on the consolidated balance sheet. For the fiscal year ended March 31, 2020, the Company incurred $4.7 million of acquisition-related transaction costs for the purchase of FruitSmart. The acquisition-related costs were expensed as incurred and recorded as selling, general, and administrative expenses on the consolidated statements of income. The following table summarizes the preliminary purchase price allocation of the assets acquired and liabilities assumed for the Silva acquisition and final purchase price allocation for the FruitSmart acquisition. Silva FruitSmart Assets October 1, 2020 January 1, 2020 Cash and cash equivalents $ 8,126 $ 1,298 Accounts receivable, net 17,885 7,707 Advances to suppliers, net 3,011 — Inventory 33,162 23,793 Other current assets 833 310 Property, plant and equipment (net) 24,437 23,400 Intangibles Customer relationships 53,000 9,500 Developed technology — 4,800 Trade names 7,800 3,300 Non-compete agreements — 1,000 Goodwill 46,144 28,863 Total assets acquired 194,398 103,971 Liabilities Accounts payable and accrued expenses 11,683 7,592 Accrued compensation 3,350 670 Income taxes payable 946 — Deferred income taxes 14,419 9,004 Total liabilities assumed 30,398 17,266 Total assets acquired and liabilities assumed $ 164,000 $ 86,705 A portion of the goodwill recorded as part of the acquisitions was attributable to the assembled workforce of FruitSmart and Silva, respectively. The tax basis of the assets acquired and liabilities did not result in a step-up of tax basis and the related goodwill is not deductible for U.S. income tax purposes. The Company determined the FruitSmart and Silva operations were not material to the Company’s consolidated results. Therefore, pro forma information is not presented. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers Revenue from Contracts with Customers | 12 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE FROM CONTRACTS WITH CUSTOMERSThe majority of the Company’s consolidated revenue consists of sales of processed leaf tobacco to customers. The Company also has fruit and vegetable processing operations that provide customers with a range of food ingredient products. In addition, the Company earns revenue from processing leaf tobacco owned by customers and from various other services provided to customers. Payment terms with customers vary depending on customer creditworthiness, product types, services provided, and other factors. Contract durations and payment terms for all revenue categories generally do not exceed one year. Therefore, the Company has applied a practical expedient to not adjust the transaction price for the effects of financing components, as the Company expects that the period from the time the revenue for a transaction is recognized to the time the customer pays for the related good or service transferred will be one year or less. Below is a description of the major revenue-generating categories from contracts with customers. Tobacco Sales The majority of the Company’s business involves purchasing leaf tobacco from farmers in the origins where it is grown, processing and packing the tobacco in its factories, and then transferring ownership and control of the tobacco to customers. On a much smaller basis, the Company also sources processed tobacco from third-party suppliers for resale to customers. The contracts for tobacco sales with customers create a performance obligation to transfer tobacco to the customer. Transaction prices for the sale of tobaccos are primarily based on negotiated fixed prices, but the Company does have a small number of cost-plus contracts with certain customers. Cost-plus arrangements provide the Company reimbursement of the cost to purchase and process the tobacco, plus a contractually agreed-upon profit margin. The Company utilizes the most likely amount methodology under the accounting guidance to recognize revenue for cost-plus arrangements with customers. Shipping and handling costs under tobacco sales contracts with customers are treated as fulfillment costs and included in the transaction price. Taxes assessed by government authorities on the sale of leaf tobacco products are excluded from the transaction price. At the point in time that the customer obtains control over the tobacco, which is typically aligned with physical shipment under the contractual terms with the customer, the Company completes its performance obligation and recognizes the revenue for the sale. Ingredient Sales In recent fiscal years, the Company has diversified its operations through acquisition of established companies that offer customers a wide range of both liquid and dehydrated fruit and vegetable ingredient products. These operations procure raw materials from domestic and international growers and suppliers and through a variety of processing steps (including sorting, cleaning, pressing, mixing, and blending) manufacture finished goods utilized in both human and pet food. The contracts for food ingredients with customers create a performance obligation to transfer the manufactured finished goods to the customer. Transaction prices for the sale of food ingredients are primarily based on negotiated fixed prices. At the point in time that the customer obtains control over the finished product, which is typically aligned with physical shipment under the contractual terms with the customer, the Company completes its performance obligation and recognizes the revenue for the sale. Processing Revenue Processing and packing of customer-owned tobacco and food ingredients is a short-duration process. Processing charges are primarily based on negotiated fixed prices per unit of weight processed. Under normal operating conditions, customer-owned raw materials that are placed into the production line exit as processed and packed product and are then later transported to customer-designated transfer locations. The revenue for these services is recognized when the performance obligation is satisfied, which is generally when processing is completed. The Company’s operating history and contract analyses indicate that customer requirements for processed tobacco and food ingredients products are consistently met upon completion of processing. Other Operating Sales and Revenue From time to time, the Company enters into various arrangements with customers to provide other value-added services that may include sorting, blending, bobbinizing, chemical and physical testing of products, storage, and other tobacco services for select manufacturers. These other arrangements and operations are a much smaller portion of the Company’s business, and are separate and distinct contractual agreements from the Company’s tobacco and food ingredients sales or third-party processing arrangements with customers. The transaction prices and timing of revenue recognition of these items are determined by the specifics of each contract. Disaggregation of Revenue from Contracts with Customers The following table disaggregates the Company’s revenue by significant revenue-generating category: Fiscal Year Ended March 31, 2021 2020 2019 Tobacco sales $ 1,715,066 $ 1,759,769 $ 2,085,001 Ingredient sales 127,393 22,014 4,769 Processing revenue 73,021 76,123 85,426 Other sales and revenue from contracts with customers 49,983 33,971 37,930 Total revenue from contracts with customers 1,965,463 1,891,877 2,213,126 Other operating sales and revenues 17,894 18,102 14,027 Consolidated sales and other operating revenues $ 1,983,357 $ 1,909,979 $ 2,227,153 Other operating sales and revenues consists principally of interest on advances to tobacco suppliers and dividend income from unconsolidated affiliates. Major Customers |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
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 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 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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Fiscal Year Ended March 31, (in thousands, except share and per share data) 2021 2020 2019 Basic Earnings Per Share Numerator for basic earnings per share Net income attributable to Universal Corporation $ 87,410 $ 71,680 $ 104,121 Denominator for basic earnings per share Weighted average shares outstanding 24,656,009 24,982,259 25,129,192 Basic earnings per share $ 3.55 $ 2.87 $ 4.14 Diluted Earnings Per Share Numerator for diluted earnings per share Net income attributable to Universal Corporation $ 87,410 $ 71,680 $ 104,121 Denominator for diluted earnings per share: Weighted average shares outstanding 24,656,009 24,982,259 25,129,192 Effect of dilutive securities Employee and outside director share-based awards 132,557 124,092 201,245 Denominator for diluted earnings per share 24,788,566 25,106,351 25,330,437 Diluted earnings per share $ 3.53 $ 2.86 $ 4.11 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company operates in the United States and many foreign countries and is subject to the tax laws of many jurisdictions. Changes in tax laws or the interpretation of tax laws can affect the Company’s earnings, as can the resolution of pending and contested tax issues. The Company's consolidated effective income tax rate is affected by a number of factors, including the mix of domestic and foreign earnings and the effect of exchange rate changes on local taxable income and deferred taxes in foreign countries. For fiscal years ended March 31, 2021, 2020, and 2019 the Company's U.S. federal statutory tax rate is 21.0%. The U.S. tax system is primarily territorial based after the enactment of the Tax Cuts and Jobs Act of 2017. The U.S. tax law imposes a tax on U.S. shareholders on certain low-taxed income earned by controlled foreign corporations, referred to as global intangible low-taxed income ("GILTI”). The Company has made an accounting policy election to account for any additional tax resulting from the GILTI provisions in the year in which it is incurred and has not recorded any deferred taxes on temporary book-tax differences related to this income. The Company continues to assume repatriation of all undistributed earnings of its consolidated foreign subsidiaries and has therefore provided for expected foreign withholding taxes on the distribution of those earnings where applicable, net of any U.S. tax credit attributable to those withholding taxes. The Company has asserted permanent reinvestment of the book basis of certain foreign subsidiaries, and accordingly, no deferred income tax liability has been recorded for any potential taxable gain that may be realized on a future disposition or liquidation of any of those subsidiaries. It is not practicable for the Company to quantify any deferred income tax liability that would be attributable to those events. Income Tax Expense Income taxes for the fiscal years ended March 31, 2021, 2020, and 2019 consisted of the following: Fiscal Year Ended March 31, 2021 2020 2019 Current United States $ 9,500 $ 2,001 $ (2,639) State and local 621 92 377 Foreign 21,626 41,892 39,578 31,747 43,985 37,316 Deferred United States (5,938) 3,735 5,713 State and local (314) (16) (4) Foreign 3,917 (12,416) (1,837) (2,335) (8,697) 3,872 Total $ 29,412 $ 35,288 $ 41,188 Foreign taxes include any applicable U.S. tax expense on the earnings of foreign subsidiaries. Consolidated Effective Income Tax Rate A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows: Fiscal Year Ended March 31, 2021 2020 2019 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 0.2 0.1 0.2 Foreign earnings taxed at rates other than the U.S. federal statutory tax rate (0.9) (2.0) 7.1 Foreign dividend withholding taxes 5.3 5.1 3.7 Reversal of dividend withholding tax due to foreign subsidiary tax holiday — — (5.1) Changes in uncertain tax positions — 5.6 1.4 Other (2.2) 1.3 (1.1) Effective income tax rate 23.4 % 31.1 % 27.2 % Final United States GILTI regulations published in July 2020 significantly changed from the proposed regulations published in 2019. The final regulations allow for an annual election for GILTI high-tax exclusion instead of a 5-year election and permitted retroactive application to years beginning after December 31, 2017. Universal elected to apply the final regulations to fiscal years 2019 and 2020 which resulted in a tax reduction of $2.7 million. In fiscal year 2021, the Company also recognized a $4.4 million net tax benefit for final U.S. tax regulations issued for hybrid dividends paid by foreign subsidiaries. During fiscal year 2020, the Company resolved a transfer pricing matter related to a foreign subsidiary. The resolution of the uncertainty with the local country taxing authorities resulted in net additional current income tax expense of $2.8 million. The additional income tax expense for fiscal year 2020 increased the effective tax rate for the year by 2.4% During fiscal year 2019, the Company reversed amounts previously recorded for dividend withholding taxes on distributed and undistributed retained earnings of a foreign subsidiary. The reversal followed the resolution of uncertainties with the local country taxing authorities with respect to the inclusion of the tax under a tax holiday applicable to the subsidiary and was attributable to cumulative retained earnings amounts previously distributed or expected to be distributed prior to the expiration of the tax holiday. The reversal reduced income tax expense for fiscal year 2019 by approximately $7.8 million, which decreased the effective tax rate for the year by 5.1%, as noted in the above rate reconciliation. Components of Income Before Income Taxes The U.S. and foreign components of income before income taxes were as follows: Fiscal Year Ended March 31, 2021 2020 2019 United States $ 30,060 $ 22,916 $ 37,478 Foreign 95,666 90,375 113,844 Total $ 125,726 $ 113,291 $ 151,322 Deferred Income Tax Liabilities and Assets Significant components of deferred tax liabilities and assets were as follows: March 31, 2021 2020 Liabilities Foreign withholding taxes $ 21,711 $ 19,870 Property, plant and equipment 8,726 10,078 Undistributed earnings 2,947 7,298 Operating lease right-of-use assets 6,856 9,877 Goodwill and other intangible assets 35,059 23,435 All other 4,876 4,813 Total deferred tax liabilities $ 80,175 $ 75,371 Assets Employee benefit plans $ 17,199 $ 22,773 Reserves and accruals 7,603 7,708 Deferred income 3,521 4,833 Operating lease right-of-use liabilities 6,718 9,650 Currency translation losses of foreign subsidiaries 2,173 2,173 Local currency exchange losses of foreign subsidiaries 450 8,360 Interest rate swap 5,178 7,284 All other 8,568 7,464 Total deferred tax assets 51,410 70,245 Valuation allowance (4,080) (3,394) Net deferred tax assets $ 47,330 $ 66,851 At March 31, 2021, the Company had no material net operating loss carryforwards in either its domestic or foreign operations. Combined Income Tax Expense (Benefit) The combined income tax expense (benefit) allocable to continuing operations and other comprehensive income was as follows: Fiscal Year Ended March 31, 2021 2020 2019 Continuing operations $ 29,412 $ 35,288 $ 41,188 Other comprehensive loss (9,563) (14,392) (5,390) Total $ 19,849 $ 20,896 $ 35,798 Uncertain Tax Positions A reconciliation of the beginning and ending balance of the gross liability for uncertain tax positions is as follows: Fiscal Year Ended March 31, 2021 2020 2019 Liability for uncertain tax positions, beginning of year $ 2,377 $ 5,625 $ 3,673 Additions: Related to tax positions for the current year 49 1,746 85 Related to tax positions for prior years — 4,369 2,169 Reductions: Due to lapses of statutes of limitations (135) (81) (90) Due to tax settlements — (8,948) — Effect of currency rate changes 146 (334) (212) Liability for uncertain tax positions, end of year $ 2,437 $ 2,377 $ 5,625 Of the total liability for uncertain tax positions at March 31, 2021, approximately $2.4 million could have an effect on the consolidated effective tax rate if the tax benefits are recognized. The liability for uncertain tax positions includes $0.1 million related to tax positions for which it is reasonably possible that the amounts could change significantly before March 31, 2022. This amount reflects a possible decrease in the liability for uncertain tax positions that could result from the completion and resolution of tax audits and the expiration of open tax years in various tax jurisdictions. During fiscal year 2020, the Company resolved a transfer pricing matter related to a foreign subsidiary. The settlement in fiscal year 2020 represents the resolution of a tax matter with a local country taxing authority that resulted in a $8.9 million settlement of which $4.5 million was accrued in prior fiscal years. For the fiscal year ended March 31, 2021, the Company recognized $1.8 million as a component of interest expense related to a settlement of an uncertain tax position at a foreign subsidiary. Amounts accrued or reversed for interest were not material for fiscal years 2020 or 2019. Amounts accrued or reversed for penalties were not material for fiscal years 2019 through 2021, and liabilities recorded for interest and penalties at March 31, 2021 and 2020 also were not material. Universal and its subsidiaries file a U.S. federal consolidated income tax return, as well as returns in several U.S. states and a number of foreign jurisdictions. As of March 31, 2021, the Company's earliest open tax year for U.S. federal income tax purposes was its fiscal year ended March 31, 2017. Open tax years in U.S. federal, state and foreign jurisdictions range from 3 to 6 years. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | Oct. 01, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND OTHER INTANGIBLES The Company's changes in goodwill at March 31, 2021 and 2020 consisted of the following: (in thousands) Fiscal Year Ended March 31, 2021 2020 Balance at beginning of year $ 126,826 $ 97,907 Acquisition of business (1) (2) 46,144 28,863 Foreign currency translation adjustment 81 56 Balance at end of year $ 173,051 $ 126,826 (1) On January 1, 2020 the Company acquired 100% of the capital stock of FruitSmart for approximately $80 million in cash and up to $25 million of contingent consideration payments. The FruitSmart acquisition resulted in $28.9 million of goodwill. See Note 2 for additional information. (2) On October 1, 2020 the Company acquired 100% of the capital stock of Silva for approximately $164.0 million in cash and $5.9 million of working capital on-hand at the date of acquisition. The Silva acquisition resulted in $46.1 million of goodwill. See Note 2 for additional information. The Company's intangible assets primarily consist of capitalized customer-related intangibles, trade names, proprietary developed technology and noncompetition agreements. The Company's intangible assets subject to amortization consisted of the following at March 31, 2021 and 2020: (in thousands, except useful life) Fiscal Year Ended March 31, 2021 2020 Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships (1)(2) 11 - 13 $ 62,500 $ (3,323) $ 59,177 $ 9,500 $ (183) $ 9,317 Trade names (1)(2) 5 11,100 (1,605) 9,495 3,300 (165) 3,135 Developed technology (1) 3 4,800 (2,000) 2,800 4,800 (400) 4,400 Noncompetition agreements (1) 5 1,000 (250) 750 1,000 (50) 950 Other 5 760 (678) 82 657 (598) 59 Total intangible assets $ 80,160 $ (7,856) $ 72,304 $ 19,257 $ (1,396) $ 17,861 (1) The FruitSmart acquisition resulted in $18.6 million of intangibles. See Note 2 for additional information. (2) The Silva acquisition resulted in $60.8 million of intangibles. See Note 2 for additional information. Intangible assets are amortized on a straight-line basis over the asset's estimated useful economic life as noted above. The Company's amortization expense for intangible assets for the years ended March 31, 2021 and 2020: (in thousands) Fiscal Year Ended March 31, 2021 2020 Amortization Expense $ 6,424 $ 832 Amortization expense for the developed technology intangible asset is recorded in cost of goods sold in the consolidated income statements of income. The amortization expense for the other intangible assets is recorded in selling, general, and administrative expenses in the consolidated income statements of income. As of March 31, 2021, the expected future amortization expense for intangible assets is as follows: Fiscal Year 2022 $ 9,608 2023 9,212 2024 7,969 2025 8,534 2026 and thereafter 36,981 Total expected future amortization expense $ 72,304 |
Credit Facilities
Credit Facilities | 12 Months Ended |
Mar. 31, 2021 | |
Line of Credit Facility [Abstract] | |
Credit Facilities | CREDIT FACILITIES Bank Credit Agreement On December 20, 2018, the Company entered into a senior unsecured bank credit agreement that included a $430 million five five seven minimum level of tangible net worth and observe limits on debt levels. The Company was in compliance with those covenants at March 31, 2021. Short-Term Credit Facilities |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM DEBT The Company's long-term debt at March 31, 2021 and 2020 consisted of the following: March 31, 2021 2020 Senior bank term loans $ 520,000 $ 370,000 Less: current portion — — Less: unamortized debt issuance costs (1,828) (1,236) Long-term debt $ 518,172 $ 368,764 As discussed in Note 8, on December 20, 2018, the Company entered into a bank credit agreement. The credit agreement includes a five seven five seven As discussed in Note 11, the Company had receive-floating/pay-fixed interest rate swap agreements in place with respect to prior loans that were initially designated and carried over to hedge the variable interest payments on the new loans. Those swap agreements were subsequently terminated in February 2019 and concurrently replaced with new interest rate swap agreements that convert the variable benchmark rate to a fixed rate through December 20, 2023 for the five seven five seven five seven Disclosures about the fair value of long-term debt are provided in Note 12. Shelf Registration In November 2020, the Company filed an undenominated automatic universal shelf registration statement with the U.S. Securities and Exchange Commission to provide for the future issuance of an undefined amount of additional debt or equity securities as determined by the Company and offered in one or more prospectus supplements prior to issuance. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASESThe Company, as a lessee, enters into operating leases for land, buildings, equipment, and vehicles. For all operating leases with terms greater than 12 months and with fixed payment arrangements, a lease liability and corresponding right-of-use asset are recognized in the balance sheet for the term of the lease by calculating the net present value of future lease payments. On the date of lease commencement, the present value of lease liabilities is determined by discounting the future lease payments by the Company’s collateralized incremental borrowing rate, adjusted for the lease term and currency of the lease payments. If a lease contains a renewal option that the Company is reasonably certain to exercise, the Company accounts for the original lease term and expected renewal term in the calculation of the lease liability and right-of-use asset. The following table sets forth the right-of-use assets and lease liabilities for operating leases included in the Company’s consolidated balance sheet: (in thousands) March 31, 2021 March 31, 2020 Assets Operating lease right-of-use assets $ 31,230 $ 39,256 Liabilities Current portion of operating lease liabilities $ 7,898 $ 9,823 Long-term operating lease liabilities 19,725 25,893 Total operating lease liabilities $ 27,623 $ 35,716 The following table sets forth the location and amount of operating lease costs included in the Company's consolidated statement of income: Fiscal Year Ended March 31, Fiscal Year Ended March 31, (in thousands) 2021 2020 Income Statement Location Cost of goods sold $ 12,903 $ 10,954 Selling, general, and administrative expenses 9,408 8,574 Total operating lease costs (1) $ 22,311 $ 19,528 (1) Includes variable operating lease costs . For the fiscal year ended March 31, 2019, the Company recorded $17.3 million of total expense for operating leases. The following table reconciles the undiscounted cash flows to the operating lease liabilities in the Company’s consolidated balance sheet: (in thousands) March 31, 2021 Maturity of Operating Lease Liabilities 2022 $ 8,743 2023 6,371 2024 4,723 2025 3,793 2026 2,396 2027 and thereafter 5,290 Total undiscounted cash flows for operating leases $ 31,316 Less: Imputed interest (3,693) Total operating lease liabilities $ 27,623 As of March 31, 2021, the Company had entered into no additional operating leases that have not yet commenced. The following table sets forth supplemental information related to operating leases: Fiscal Year Ended March 31, Fiscal Year Ended March 31, (in thousands, except lease term and incremental borrowing rate) 2021 2020 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of operating lease liabilities $ 12,855 $ 11,983 Right-of-use assets obtained in exchange for new operating leases 10,970 14,957 Weighted Average Remaining Lease Term (years) 5.57 5.61 Weighted Average Collateralized Incremental Borrowing Rate 4.05 % 4.10 % |
Derivatives And Hedging Activit
Derivatives And Hedging Activities | 12 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives And Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Universal is exposed to various risks in its worldwide operations and uses derivative financial instruments to manage two specific types of risks – interest rate risk and foreign currency exchange rate risk. Interest rate risk has been managed by entering into interest rate swap agreements, and foreign currency exchange rate risk has been managed by entering into forward foreign currency exchange and option contracts. However, the Company’s policy also permits other types of derivative instruments. In addition, foreign currency exchange rate risk is also managed through strategies that do not involve derivative instruments, such as using local borrowings and other approaches to minimize net monetary positions in non-functional currencies. The disclosures below provide additional information about the Company’s hedging strategies, the derivative instruments used, and the effects of these activities on the consolidated statements of income and comprehensive income and the consolidated balance sheets. In the consolidated statements of cash flows, the cash flows associated with all of these activities are reported in net cash provided by operating activities. Cash Flow Hedging Strategy for Interest Rate Risk In February 2019, the Company entered into receive-floating/pay-fixed interest rate swap agreements that were designated and qualify as hedges of the exposure to changes in interest payment cash flows created by fluctuations in variable interest rates on two outstanding non-amortizing bank term loans that were funded as part of a new bank credit facility in December 2018. Although no significant ineffectiveness is expected with this hedging strategy, the effectiveness of the interest rate swaps is evaluated on a quarterly basis. At March 31, 2021, the total notional amount of the interest rate swaps was $370 million, which corresponded with the former original outstanding balance of the term loans. During the third quarter of fiscal year 2021, the Company converted $150 million from the balance in its revolving credit line into the existing term loans, splitting the balance equally between them. At March 31, 2021, the Company is not hedging the interest payments on the additional $150 million of term loans. The increase to the principal balance of the term loans does not have an impact on the effectiveness analysis of the interest rate swap agreements. Previously, the Company had receive-floating/pay-fixed interest rate swap agreements that were designated and qualified as cash flow hedges for two outstanding non-amortizing bank loans that were repaid concurrent with closing on the new bank credit facility. Those swap agreements were subsequently terminated in February 2019 concurrent with the inception of the new swap agreements. The fair value of the previous swap agreements, approximately $5.4 million, was received from the counterparties upon termination and is being amortized from accumulated other comprehensive loss into earnings as a reduction of interest expense through the original maturity dates of those agreements. As of March 31, 2021, $1.1 million remained in accumulated other comprehensive loss to be amortized through December 31, 2021. Cash Flow Hedging Strategy for Foreign Currency Exchange Rate Risk Related to Forecast Purchases of Tobacco, Tobacco Processing Costs, and Crop Input Sales The majority of the tobacco production in most countries outside the United States where Universal operates is sold in export markets at prices denominated in U.S. dollars. However, sales of crop inputs (such as seeds and fertilizers) to farmers, purchases of tobacco from farmers and most processing costs (such as labor and energy) in those countries are usually denominated in the local currency. Changes in exchange rates between the U.S. dollar and the local currencies where tobacco is grown and processed affect the ultimate U.S. dollar sales of crop inputs and cost of processed tobacco. From time to time, the Company enters into forward and option contracts to buy U.S. dollars and sell the local currency at future dates that coincide with the sale of crop inputs to farmers. In the case of forecast purchases of tobacco and the related processing costs, the Company enters into forward and option contracts to sell U.S. dollars and buy the local currency at future dates that coincide with the expected timing of a portion of the tobacco purchases and processing costs. These strategies offset the variability of future U.S. dollar cash flows for sales of crop inputs, tobacco purchases, and processing costs for the foreign currency notional amount hedged. These hedging strategies have been used mainly for tobacco purchases, processing costs, and sales of crop inputs in Brazil, although the Company has also entered into hedges for a portion of the tobacco purchases in Africa. The aggregate U.S. dollar notional amount of forward and option contracts entered for these purposes during fiscal years 2021, 2020, and 2019 was as follows: Fiscal Year Ended March 31, (in millions) 2021 2020 2019 Tobacco purchases $ 101.3 $ 123.2 $ 76.9 Processing costs 27.8 35.1 19.8 Crop input sales 23.5 21.7 — Total $ 152.6 $ 180.0 $ 96.7 Variations in exchange rates and in the amount and timing of fixed-price orders from customers for their purchases from individual crop years routinely cause variations in the U.S. dollar notional amount of forward contracts entered into from one year to the next. All contracts related to tobacco purchases and 2021 crop year input sales were designated and qualified as hedges of the future cash flows associated with the forecast purchases of tobacco. As a result, changes in fair values of the forward contracts have been recognized in comprehensive income as they occurred, but only recognized in earnings upon sale of the related tobacco to third-party customers. Forward contracts related to processing costs have not been designated as hedges, and gains and losses on those contracts have been recognized in earnings on a marked-to-market basis. In fiscal year 2020, option contracts entered for the sale of 2020 crop year input sales were not designated for hedge accounting. The gains and losses for the 2020 crop year option contracts entered into for the sale of crop inputs were recognized in earnings on a marked-to-market basis. For the remaining hedge gains and losses related to 2020 crops recorded in accumulated other comprehensive loss at March 31, 2021, the Company expects to complete the sale of the tobacco and recognize the amounts in earnings during fiscal year 2022. At March 31, 2021, all hedged forecast purchases of tobacco and crop input sales not yet completed remained probable of occurring within the originally designated time period and, as a result, no hedges had been discontinued. Purchases of the 2021 crops in Brazil and Africa are expected to be completed by August 2021, and all forward contracts to hedge those purchases will mature and be settled by that time. Purchases of the 2022 crops in Brazil are expected to be completed by August 2022 and all forward contracts to hedge those purchases will mature and be settled by that time. Hedging Strategy for Foreign Currency Exchange Rate Risk Related to Net Local Currency Monetary Assets and Liabilities of Foreign Subsidiaries Most of the Company’s foreign subsidiaries transact the majority of their sales in U.S. dollars and finance the majority of their operating requirements with U.S. dollar borrowings, and therefore use the U.S. dollar as their functional currency. These subsidiaries normally have certain monetary assets and liabilities on their balance sheets that are denominated in the local currency. Those assets and liabilities can include cash and cash equivalents, accounts receivable and accounts payable, advances to farmers and suppliers, deferred income tax assets and liabilities, recoverable value-added taxes, operating lease liabilities, and other items. Net monetary assets and liabilities denominated in the local currency are remeasured into U.S. dollars each reporting period, generating gains and losses that the Company records in earnings as a component of selling, general, and administrative expenses. The level of net monetary assets or liabilities denominated in the local currency normally fluctuates throughout the year based on the operating cycle, but it is most common for monetary assets to exceed monetary liabilities, sometimes by a significant amount. When this situation exists and the local currency weakens against the U.S. dollar, remeasurement losses are generated. Conversely, remeasurement gains are generated on a net monetary asset position when the local currency strengthens against the U.S. dollar. To manage a portion of its exposure to currency remeasurement gains and losses, the Company enters into forward contracts to buy or sell the local currency at future dates coinciding with expected changes in the overall net local currency monetary asset position of the subsidiary. Gains and losses on the forward contracts are recorded in earnings as a component of selling, general, and administrative expenses for each reporting period as they occur, and thus directly offset the related remeasurement losses or gains in the consolidated statements of income for the notional amount hedged. The Company does not designate these contracts as hedges for accounting purposes. The contracts are generally arranged to hedge the subsidiary's projected exposure to currency remeasurement risk for specified periods of time, and new contracts are entered as necessary throughout the year to replace previous contracts as they mature. The Company is currently using forward currency contracts to manage its exposure to currency remeasurement risk in Brazil. The total notional amounts of contracts outstanding at March 31, 2021 and 2020, were approximately $16.6 million and $8.9 million, respectively. To further mitigate currency remeasurement exposure, the Company’s foreign subsidiaries may utilize short-term local currency financing during certain periods. This strategy, while not involving the use of derivative instruments, is intended to minimize the subsidiary’s net monetary position by financing a portion of the local currency monetary assets with local currency monetary liabilities, thus hedging a portion of the overall position. Several of the Company’s foreign subsidiaries transact the majority of their sales and finance the majority of their operating requirements in their local currency, and therefore use their respective local currencies as the functional currency for reporting purposes. From time to time, these subsidiaries sell tobacco to customers in transactions that are not denominated in the functional currency. In those situations, the subsidiaries routinely enter into forward exchange contracts to offset currency risk for the period of time that a fixed-price order and the related trade account receivable are outstanding with the customer. The contracts are not designated as hedges for accounting purposes. Effect of Derivative Financial Instruments on the Consolidated Statements of Income The table below outlines the effects of the Company’s use of derivative financial instruments on the consolidated statements of income for the fiscal years ended March 31, 2021, 2020, and 2019. Fiscal Year Ended March 31, 2021 2020 2019 Cash Flow Hedges - Interest Rate Swap Agreements Derivative Effective Portion of Hedge Gain (loss) recorded in accumulated other comprehensive loss $ 3,033 $ (32,389) $ (7,496) Gain (loss) reclassified from accumulated other comprehensive loss into earnings $ (8,411) $ (1,577) $ 1,689 Gain on terminated interest rate swaps amortized from accumulated other comprehensive loss into earnings $ 1,416 $ 2,691 $ 260 Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings Interest expense Ineffective Portion of Hedge Gain (loss) recognized in earnings $ — $ — $ — Location of gain (loss) recognized in earnings Selling, general and administrative expenses Hedged Item Description of hedged item Floating rate interest payments on term loans Cash Flow Hedges - Forward Foreign Currency Exchange Contracts Derivative Effective Portion of Hedge Gain (loss) recorded in accumulated other comprehensive loss $ (272) $ (13,646) $ (2,623) Gain (loss) reclassified from accumulated other comprehensive loss into earnings $ (13,926) $ 1,108 $ (3,034) Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings Cost of goods sold Ineffective Portion and Early De-designation of Hedges Gain (loss) recognized in earnings $ — $ — $ — Location of gain (loss) recognized in earnings Selling, general and administrative expenses Hedged Item Description of hedged item Forecast purchases of tobacco in Derivatives Not Designated as Hedges - Gain (loss) recognized in earnings $ (872) $ (4,013) $ (4,671) Location of gain (loss) recognized in earnings Selling, general and administrative expenses For the outstanding interest rate swap agreements, the effective portion of the gain or loss on the derivative is recorded in accumulated other comprehensive loss and any ineffective portion is recorded in selling, general and administrative expenses. For the terminated interest rates swaps previously designated as cash flow hedges, a $1.1 million net realized hedge gain remained in accumulated other comprehensive loss at March 31, 2021. The Company expects to amortize the remaining unamortized gain into earnings as a reduction of interest expense in fiscal year 2022. For the forward foreign currency exchange contracts designated as cash flow hedges of tobacco purchases in Brazil and Africa, as well as the crop input sales in Brazil, a net hedge loss of approximately $0.8 million remained in accumulated other comprehensive loss at March 31, 2021. That balance reflects gains and losses on contracts related to the 2020, 2021, and 2022 Brazil crops, the 2021 Africa crop, and the 2021 Brazil crop input sales, less the amounts reclassified to earnings related to tobacco sold through March 31, 2021. The remaining balance in accumulated other comprehensive loss associated with the 2020 and 2021 Brazil crop purchase hedges, along with the balances associated with the 2021 Brazil crop input sales and the 2021 Africa crops are expected to be recognized in earnings as a component of cost of goods sold in fiscal year 2022 as those tobaccos are sold to customers. The balance in accumulated other comprehensive loss related to the 2022 Brazil crop is expected to be recognized in earnings as a component of cost of goods sold in fiscal year 2023 when those tobaccos are sold to customers. Based on the hedging strategy, as the gain or loss is recognized in earnings, it is expected to be offset by a change in the direct cost for the tobacco or by a change in sales prices if the strategy has been mandated by the customer. Generally, margins on the sale of the tobacco will not be significantly affected. Effect of Derivative Financial Instruments on the Consolidated Balance Sheets The table below outlines the effects of the Company’s derivative financial instruments on the consolidated balance sheets at March 31, 2021 and 2020: Derivatives in a Fair Value Derivatives in a Fair Value Balance Fair Value as of March 31, Balance Fair Value as of March 31, 2021 2020 2021 2020 Derivatives Designated as Hedging Instruments Interest rate swap agreements Other $ — $ — Other $ 25,719 $ 37,163 Forward foreign currency exchange contracts Other 1,137 — Accounts 1,031 11,467 Total $ 1,137 $ — $ 26,750 $ 48,630 Derivatives Not Designated as Hedging Instruments Forward foreign currency exchange contracts Other $ 435 $ 314 Accounts $ 791 $ 4,375 Total $ 435 $ 314 $ 791 $ 4,375 Substantially all of the Company's forward foreign currency exchange contracts are subject to master netting arrangements, whereby the right to offset occurs in the event of default by a participating party. The Company has elected to present these contracts on a gross basis in the consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE MEASUREMENTS Universal measures certain financial and nonfinancial assets and liabilities at fair value based on applicable accounting guidance. The financial assets and liabilities measured at fair value include money market funds, trading securities associated with deferred compensation plans, interest rate swap agreements, forward foreign currency exchange contracts, and guarantees of bank loans to tobacco growers. The application of the fair value guidance to nonfinancial assets and liabilities primarily includes the determination of fair values for goodwill and long-lived assets when indicators of potential impairment are present. Under the accounting guidance, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The framework for measuring fair value is based on a fair value hierarchy that distinguishes between observable inputs and unobservable inputs. Observable inputs are based on market data obtained from independent sources. Unobservable inputs require the Company to make its own assumptions about the value placed on an asset or liability by market participants because little or no market data exists. There are three levels within the fair value hierarchy. Level Description 1 quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date; 2 quoted prices in active markets for similar assets or liabilities, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability; and 3 unobservable inputs for the asset or liability. As permitted under the accounting guidance, the Company uses net asset value per share ("NAV") as a practical expedient to measure the fair value of its money market funds. The fair values for those funds are presented under the heading "NAV" in the tables that follow in this disclosure. In measuring the fair value of liabilities, the Company considers the risk of non-performance in determining fair value. Universal has not elected to report at fair value any financial instruments or any other assets or liabilities that are not required to be reported at fair value under current accounting guidance. Recurring Fair Value Measurements At March 31, 2021 and 2020, the Company had certain financial assets and financial liabilities that were required to be measured and reported at fair value on a recurring basis. These assets and liabilities are listed in the tables below and are classified based on how their values were determined under the fair value hierarchy or the NAV practical expedient: March 31, 2021 Fair Value Hierarchy NAV Level 1 Level 2 Level 3 Total Assets Money market funds $ 1,992 $ — $ — $ — $ 1,992 Trading securities associated with deferred compensation plans — 15,735 — — 15,735 Forward foreign currency exchange contracts — — 1,572 — 1,572 Total financial assets measured and reported at fair value $ 1,992 $ 15,735 $ 1,572 $ — $ 19,299 Liabilities Acquisition-related contingent consideration obligations - long-term $ — $ — $ — $ 2,532 $ 2,532 Interest rate swap agreements — — 25,719 — 25,719 Forward foreign currency exchange contracts — — 1,822 — 1,822 Total financial liabilities measured and reported at fair value $ — $ — $ 27,541 $ 2,532 $ 30,073 March 31, 2020 Fair Value Hierarchy NAV Level 1 Level 2 Level 3 Total Assets Money market funds $ 4,011 $ — $ — $ — $ 4,011 Trading securities associated with deferred compensation plans — 12,635 — — 12,635 Forward foreign currency exchange contracts — — 314 — 314 Total financial assets measured and reported at fair value $ 4,011 $ 12,635 $ 314 $ — $ 16,960 Liabilities Guarantees of bank loans to tobacco growers $ — $ — $ — $ 103 $ 103 Acquisition-related contingent consideration obligations - short-term — — — 4,173 $ 4,173 Acquisition-related contingent consideration obligations - long-term — — — 2,532 $ 2,532 Interest rate swap agreements — — 37,163 — 37,163 Forward foreign currency exchange contracts — — 15,842 — 15,842 Total financial liabilities measured and reported at fair value $ — $ — $ 53,005 $ 6,808 $ 59,813 Money market funds The fair value of money market funds, which are reported in cash and cash equivalents in the consolidated balance sheets, is based on NAV, which is the amount at which the funds are redeemable and is used as a practical expedient for fair value. These funds are not classified in the fair value hierarchy, but are disclosed as part of the fair value table above. Trading securities associated with deferred compensation plans Trading securities represent mutual fund investments that are matched to employee deferred compensation obligations. These investments are bought and sold as employees defer compensation, receive distributions, or make changes in the funds underlying their accounts. Quoted market prices (Level 1) are used to determine the fair values of the mutual funds. Interest rate swap agreements The fair values of interest rate swap agreements are determined based on dealer quotes using a discounted cash flow model matched to the contractual terms of each instrument. Since inputs to the model are observable and significant judgment is not required in determining the fair values, interest rate swaps are classified within Level 2 of the fair value hierarchy. Forward foreign currency exchange contracts The fair values of forward foreign currency exchange contracts are also determined based on dealer quotes using a discounted cash flow model matched to the contractual terms of each instrument. Since inputs to the model are observable and significant judgment is not required in determining the fair values, forward foreign currency exchange contracts are classified within Level 2 of the fair value hierarchy. Acquisition-related contingent consideration obligations The Company estimates the fair value of acquisition-related contingent consideration obligations by applying an income approach model that utilizes probability-weighted discounted cash flows. The Company acquired FruitSmart, Inc. in fiscal year 2020 and recognized a contingent consideration liability of $6.7 million on the date of acquisition. Each reporting period the Company evaluates the fair value of the acquisition-related contingent consideration obligations. In the quarter ended June 30, 2020, the evaluation resulted in the reduction of $4.2 million of contingent consideration of the original $6.7 million liability recorded. Significant judgment is applied to this model and therefore the acquisition-related contingent consideration obligation is classified within Level 3 of the fair value hierarchy. A reconciliation of the change in the balance of the acquisition-related contingent consideration obligation (Level 3) for the fiscal years ended March 31, 2021 and 2020 is provided below. Fiscal Year Ended March 31, 2021 2020 Balance beginning of year $ 6,705 $ — Additions — 6,705 Change in fair value of contingent consideration liability (4,173) — Balance at end of year $ 2,532 $ 6,705 As of March 31, 2021, $2.5 million of contingent consideration liability related to the FruitSmart acquisition is included in accounts payable and accrued expenses on the consolidated balance sheet. Guarantees of bank loans to tobacco growers The majority of crop financing utilized for fiscal year 2021 in Brazil did not require guaranteed bank loans to tobacco growers, resulting in the elimination of guarantees at March 31, 2021 . For the majority of crop financing prior to fiscal year 2021, the Company relied heavily on guaranteed bank loans to tobacco growers in Brazil for crop financing. In the event that the farmers defaulted on their payments to the banks, the Company would be required to perform under the guarantees. The Company regularly evaluated the likelihood of farmer defaults based on an expected loss analysis and records the fair value of its guarantees as an obligation in its consolidated financial statements. The fair value of the guarantees was determined using the expected loss data for all loans outstanding at each measurement date. The present value of the cash flows associated with the estimated losses was then calculated at a risk-adjusted interest rate that was aligned with the expected duration of the liability and included an adjustment for nonperformance risk. This approach is sometimes referred to as the “contingent claims valuation method.” Although historical loss data is an observable input, significant judgment was required in applying this information to the portfolio of guaranteed loans outstanding at each measurement date and in selecting a risk-adjusted interest rate. Significant increases or decreases in the risk-adjusted interest rate may result in a significantly higher or lower fair value measurement. The guarantees of bank loans to tobacco growers were therefore classified within Level 3 of the fair value hierarchy. A reconciliation of the change in the balance of the financial liability for guarantees of bank loans to tobacco growers (Level 3) for the fiscal years ended March 31, 2021 and 2020 is provided below. Fiscal Year Ended March 31, 2021 2020 Balance at beginning of year $ 103 $ 803 Payments under the guarantees and transfers to allowance for loss on direct loans to farmers (removal of prior crop year loans from the portfolio) (96) (659) Provision for loss or transfers from allowance for loss on direct loans to farmers (addition of current crop year loans) — (5) Change in discount rate and estimated collection period (2) (7) Currency remeasurement (5) (29) Balance at end of year $ — $ 103 Long-term Debt The following table summarizes the fair and carrying value of the Company’s long-term debt, including the current portion at each of the balance sheet dates March 31, 2021 and 2020: Fiscal Year Ended March 31, (in millions of dollars) 2021 2020 Fair market value of long term obligations $ 517 $ 370 Carrying value of long term obligations $ 520 $ 370 The Company estimates the fair value of its long-term debt using Level 2 inputs which are based upon quoted market prices for the same or similar obligations or on calculations that are based on the current interest rates available to the Company for debt of similar terms and maturities. See Note 9 for more information regarding long-term debt. Nonrecurring Fair Value Measurements Assets and liabilities that are measured at fair value on a nonrecurring basis primarily relate to long-lived assets, right-of-use operating lease assets and liabilities, goodwill and intangibles, and other current and noncurrent assets. These assets and liabilities fair values are evaluated for impairment when potential indicators of impairment exist. Accordingly, the nonrecurring measurement of the fair value of these assets and liabilities are classified within Level 3 of the fair value hierarchy. Acquisition Accounting for Business Combinations The Company accounts for acquisitions qualifying under ASC 805, "Business Combinations," which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The fair values of consideration transferred and net assets acquired are determined using a combination of Level 2 and Level 3 inputs as specified in the fair value hierarchy in ASC 820, “Fair Value Measurements and Disclosures.” The Company believes that the fair values assigned to the assets acquired and liabilities assumed are based on reasonable assumptions. The significant assumptions used in determining the fair value include the discount rate and forecasted results (e.g., revenue growth rates and operating profit margins). Long-Lived Assets The Company reviews long-lived assets for impairment whenever events, changes in business conditions, or other circumstances provide an indication that such assets may be impaired. CIFI As a result of the announcement of the wind-down of the CIFI operation, an impairment of the related long-lived assets was recorded during the quarter ended December 31, 2020. The long-lived assets primarily consist of buildings, processing equipment, and other manufacturing related assets. The aggregate fair value and carrying value of those assets following the impairment adjustments was approximately $6 million. The fair values of the property, plant and equipment were principally determined using a market-based approach with consideration of the assets fair values to potential third-parties. Significant judgment was required in estimating the amount and timing of the future cash flows associated with the disposition of the assets. |
Pension And Other Postretiremen
Pension And Other Postretirement Benefit Plans | 12 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension And Other Postretirement Benefit Plans | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Defined Benefit Plans Description of Plans The Company sponsors several defined benefit pension plans covering salaried and certain hourly employees in the U.S., as well as certain foreign and other employee groups. These plans provide retirement benefits based primarily on employee compensation and years of service. Plan assets consist primarily of equity and fixed income investments. The Company also sponsors defined benefit plans that provide postretirement health and life insurance benefits for eligible U.S. employees and retirees who have attained specific age and service levels, although postretirement life insurance benefits were discontinued several years ago for all employees who were not already retired. The health benefits are funded by the Company as the costs of those benefits are incurred. The plan design includes cost-sharing features such as deductibles and coinsurance. The life insurance benefits are funded with deposits to a reserve account held by an insurance company. The Company has the right to amend or discontinue its pension and other postretirement benefit plans at any time. In the following disclosures, the term “accumulated benefit obligation” (“ABO”) represents the actuarial present value of estimated future benefit payments earned by participants in the Company's defined benefit pension plans as of the balance sheet date without regard to the estimated effect of future compensation increases on those benefits. The term does not apply to other postretirement benefits. “Projected benefit obligation” refers to the projected benefit obligation (“PBO”) for pension benefits and the accumulated postretirement benefit obligation (“APBO”) for other postretirement benefits. These amounts represent the actuarial present value of estimated future benefit payments earned by participants in the benefit plans as of the balance sheet date. For pension benefits, the projected benefit obligation includes the estimated effect of future compensation increases on those benefits. Actuarial Assumptions Assumptions used for financial reporting purposes to compute net periodic benefit cost and benefit obligations for the Company's primary defined benefit plans were as follows: Pension Benefits Other Postretirement Benefits 2021 2020 2019 2021 2020 2019 Discount rates: Benefit cost for plan year 3.60 % 4.00 % 4.10 % 3.40 % 3.80 % 3.90 % Benefit obligation at end of plan year 3.30 % 3.60 % 4.00 % 2.90 % 3.40 % 3.80 % Expected long-term return on plan assets: Benefit cost for plan year 6.00 % 6.75 % 6.75 % 3.00 % 3.00 % 3.00 % Salary scale: Benefit cost for plan year 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % Benefit obligation at end of plan year 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % Healthcare cost trend rate N/A N/A N/A 6.17 % 7.34 % 7.60 % Changes in the discount rates in the above table reflect prevailing market interest rates at the end of each fiscal year when the benefit obligations are actuarially measured. The expected long-term return on plan assets is developed from financial models used to project future returns on the underlying assets of the funded plans and is reviewed on an annual basis. The healthcare cost trend rate used by the Company is based on a study of medical cost inflation rates that is reviewed and updated annually for continued applicability. The revised trend assumption of 6.17% in 2021 declines gradually to 4.44% in 2029. The Company has caps in place on postretirement medical benefits that limit its cost for a large segment of the retiree population. As a result, changes to the healthcare cost trend rate have a limited impact on the postretirement medical plan liability and expense. Benefit Obligations, Plan Assets, and Funded Status The following table reflects the changes in benefit obligations and plan assets in fiscal years 2021 and 2020, as well as the funded status of the plans at March 31, 2021 and 2020: Pension Other Postretirement Benefits March 31, March 31, 2021 2020 2021 2020 Actuarial present value of benefit obligation: Accumulated benefit obligation $ 289,901 $ 281,242 Projected benefit obligation 297,090 287,082 $ 28,926 $ 30,282 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 287,082 $ 278,189 $ 30,282 $ 31,635 Service cost 6,618 5,990 172 199 Interest cost 9,571 10,747 1,141 1,306 Effect of discount rate change 12,990 14,479 1,126 1,326 Foreign currency exchange rate changes 776 (1,477) (283) (1,012) Settlements — (6,038) — — Other (3,626) 1,029 167 (744) Benefit payments (16,321) (15,837) (3,679) (2,428) Projected benefit obligation, end of year $ 297,090 $ 287,082 $ 28,926 $ 30,282 Change in plan assets: Plan assets at fair value, beginning of year $ 238,450 $ 244,969 $ 3,369 $ 3,717 Actual return on plan assets 39,757 10,551 114 152 Employer contributions 8,472 6,037 3,229 1,928 Settlements — (6,038) — — Foreign currency exchange rate changes (9) (1,232) — — Benefit payments (16,321) (15,837) (3,679) (2,428) Plan assets at fair value, end of year $ 270,349 $ 238,450 $ 3,033 $ 3,369 Funded status: Funded status of the plans, end of year $ (26,741) $ (48,632) $ (25,893) $ (26,913) The Company funds its non-regulated U.S. pension plan, one of its foreign pension plans, and its postretirement medical plans on a pay-as-you-go basis as the benefit payments are incurred. The unfunded projected benefit obligation for those pension plans and postretirement benefit plans was $38.1 million and $23.7 million, respectively, at March 31, 2021. The funded status of the Company’s plans at the end of fiscal years 2021 and 2020 was reported in the consolidated balance sheets as follows: Pension Other Postretirement Benefits March 31, March 31, 2021 2020 2021 2020 Noncurrent assets (included in Pension asset and other noncurrent assets) $ 11,950 $ 346 $ — $ — Current liability (included in Accounts payable and accrued expenses) (4,896) (2,978) (2,051) (2,233) Noncurrent liability (reported as pensions and other postretirement benefits) (33,795) (46,000) (23,842) (24,680) Amounts recognized in the consolidated balance sheets $ (26,741) $ (48,632) $ (25,893) $ (26,913) Additional information on the funded status of the Company’s plans as of the respective measurement dates for the fiscal years ended March 31, 2021 and 2020, is as follows: Pension Other Postretirement Benefits March 31, March 31, 2021 2020 2021 2020 For plans with a projected benefit obligation in excess of plan assets: Aggregate projected benefit obligation (PBO) $ 44,742 $ 284,327 $ 28,926 $ 30,282 Aggregate fair value of plan assets 6,051 235,349 3,033 3,369 For plans with an accumulated benefit obligation in excess of plan assets: Aggregate accumulated benefit obligation (ABO) 42,923 278,515 N/A N/A Aggregate fair value of plan assets 6,051 235,349 N/A N/A Net Periodic Benefit Cost The components of the Company’s net periodic benefit cost were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2021 2020 2019 2021 2020 2019 Components of net periodic benefit cost: Service cost $ 6,618 $ 5,990 $ 6,008 $ 172 $ 199 $ 222 Interest cost 9,571 10,747 10,810 1,141 1,306 1,371 Expected return on plan assets (14,448) (16,671) (15,695) (96) (106) (99) Settlement cost — 676 — — — — Net amortization and deferral 4,863 3,709 3,491 (591) (647) (710) Net periodic benefit cost $ 6,604 $ 4,451 $ 4,614 $ 626 $ 752 $ 784 A one-percentage-point increase or decrease in the assumed healthcare cost trend rate would not result in a significant change to the March 31, 2021 accumulated postretirement benefit obligation or the aggregate service and interest cost components of the net periodic postretirement benefit expense for fiscal year 2022. Amounts Included in Accumulated Other Comprehensive Loss Amounts included in accumulated other comprehensive loss at the beginning of the year are amortized as a component of net periodic benefit cost during the year. The amounts recognized in other comprehensive income or loss for fiscal years 2021 and 2020 and the amounts included in accumulated other comprehensive loss at the end of those fiscal years are shown below. All amounts shown are before allocated income taxes. Pension Other Postretirement Benefits March 31, March 31, 2021 2020 2021 2020 Change in net actuarial loss (gain): Net actuarial loss (gain), beginning of year $ 97,025 $ 81,502 $ (5,365) $ (6,201) Losses (gains) arising during the year (17,563) 21,838 520 302 Settlement — (529) — — Amortization included in net periodic benefit cost during the year (6,857) (5,786) 450 534 Net actuarial loss (gain), end of year 72,605 97,025 (4,395) (5,365) Change in prior service cost (benefit): Prior service cost (benefit), beginning of year (5,402) (7,479) (564) (766) Amortization included in net periodic benefit cost during the year 1,996 2,077 188 202 Prior service cost (benefit), end of year (3,406) (5,402) (376) (564) Total amounts in accumulated other comprehensive loss at end of year, before income taxes $ 69,199 $ 91,623 $ (4,771) $ (5,929) Amounts in the above table reflect the Company and its consolidated subsidiaries. The accumulated other comprehensive loss reported in the consolidated balance sheets also includes pension and other postretirement benefit amounts related to ownership interests in unconsolidated affiliates. The Company expects to recognize approximately $5.6 million of the March 31, 2021 net actuarial loss and $2.1 million of the March 31, 2021 prior service benefit in net periodic benefit cost during fiscal year 2022. Allocation of Pension Plan Assets The Company has established, and periodically adjusts, target asset allocations for its investments in its U.S. ERISA-regulated defined benefit pension plan, which represents 97% of consolidated plan assets and 84% of consolidated PBO at March 31, 2021, to balance the needs of liquidity, total return, and risk control. The assets are required to be diversified across asset classes and investment styles to achieve that balance. During the year, the asset allocation is reviewed for adherence to the target policy and rebalanced to the targeted weights. The Company reviews the expected long-term returns of the asset allocation each year to help determine whether changes are needed. The return is evaluated on a weighted-average basis in relation to inflation. The assumed long-term rate of return used to calculate annual benefit expense is based on the asset allocation and expected market returns for the respective asset classes. The weighted–average target pension asset allocation and target ranges at the March 31, 2021 measurement date and the actual asset allocations at the March 31, 2021 and 2020 measurement dates by major asset category were as follows: Actual Allocation Target Allocation March 31, Major Asset Category Range 2021 2020 Equity securities 29.0 % 19 % - 39% 32.0 % 25.4 % Fixed income securities (1) 66.0 % 56 % - 76% 64.1 % 70.3 % Alternative investments 5.0 % 0 % - 10% 3.9 % 4.3 % Total 100.0 % 100.0 % 100.0 % (1) Actual amounts include high yield securities and cash balances held for the payment of benefits. Universal makes regular contributions to its pension and other postretirement benefit plans. As previously noted, for postretirement health benefits, contributions reflect funding of those benefits as they are incurred. The Company expects to make contributions of approximately $1.4 million to its ERISA regulated defined benefit pension plan and $5.9 million to its non-ERISA regulated pension plans in fiscal year 2022. Estimated future benefit payments to be made from the Company’s plans are as follows: Fiscal Year Pension Other 2022 $ 19,611 $ 2,484 2023 18,777 2,375 2024 18,656 2,265 2025 17,979 2,173 2026 22,893 2,047 2027 - 2031 84,154 8,882 Fair Values of Pension Plan Assets Assets held by the Company's defined benefit pension plans primarily consist of equity securities, fixed income securities, and alternative investments. Equity securities are primarily invested in actively-traded mutual funds with underlying common stock investments in U.S. and foreign companies ranging in size from small to large corporations. Fixed income securities are also held primarily through actively-traded mutual funds with the underlying investments in both U.S. and foreign securities. The methodologies for determining the fair values of the plan assets are outlined below. Where the values are based on quoted prices for the securities in an active market, they are classified as Level 1 of the fair value hierarchy. Where secondary pricing sources are used, they are classified as Level 2 of the hierarchy. Pricing models that use significant unobservable inputs are classified as Level 3. • Equity securities: Investments in equity securities through actively-traded mutual funds are valued based on the net asset values of the units held in the respective funds, which are determined by obtaining quoted prices on nationally recognized securities exchanges. These securities are classified as Level 1. • Fixed income securities: Fixed income investments that are held through mutual funds are valued based on the net asset values of the units held in the respective funds, which are determined by obtaining quoted prices on nationally recognized securities exchanges. These securities are classified as Level 1. Other fixed income investments are valued at an estimated price that a dealer would pay for a similar security on the valuation date using observable market inputs and are classified as Level 2. These market inputs may include yield curves for similarly rated securities. Small amounts of cash are held in common collective trusts. Fixed income securities also include insurance assets, which are valued based on an actuarial calculation. Those securities are classified as Level 3. • Alternative investments: Real estate assets are valued using valuation models that incorporate income and market approaches, including external appraisals, to derive fair values. The hedge fund allocation is a fund of hedge funds and is valued by the manager based on the net asset value of each fund. These models use significant unobservable inputs and are classified as Level 3 within the fair value hierarchy. Fair values of the assets of the Company’s pension plans as of March 31, 2021 and 2020, classified based on how their values were determined under the fair value hierarchy are as follows: March 31, 2021 Level 1 Level 2 Level 3 Total Equity securities $ 83,135 $ — $ — $ 83,135 Fixed income securities (1) 168,201 2,920 6,051 177,172 Alternative investments — — 10,042 10,042 Total investments $ 251,336 $ 2,920 $ 16,093 $ 270,349 March 31, 2020 Level 1 Level 2 Level 3 Total Equity securities $ 58,204 $ — $ — $ 58,204 Fixed income securities (1) 162,667 3,101 4,668 170,436 Alternative investments — — 9,810 9,810 Total investments $ 220,871 $ 3,101 $ 14,478 $ 238,450 (1) Includes high yield securities and cash and cash equivalent balances. Other Benefit Plans Universal and several subsidiaries offer employer defined contribution savings plans. Amounts charged to expense for these plans were approximately $2.9 million for fiscal year 2021, $2.7 million for fiscal year 2020, and $2.6 million for fiscal year 2019. |
Common And Preferred Stock
Common And Preferred Stock | 12 Months Ended |
Mar. 31, 2021 | |
Class of Stock Disclosures [Abstract] | |
Common And Preferred Stock | COMMON AND PREFERRED STOCK Common Stock At March 31, 2021, the Company’s shareholders had authorized 100,000,000 shares of its common stock, and 24,514,867 shares were issued and outstanding. Holders of the common stock are entitled to one vote for each share held on all matters requiring a vote. Holders of the common stock are also entitled to receive dividends when, as, and if declared by the Company’s Board of Directors. The Board of Directors customarily declares and pays regular quarterly dividends on the outstanding common shares; however, such dividends are at the Board’s full discretion, and there is no obligation to continue them. Preferred Stock The Company is also authorized to issue up to 5,000,000 shares of preferred stock. No preferred stock was outstanding at March 31, 2021. Share Repurchase Programs Universal’s Board of Directors has authorized programs to repurchase outstanding shares of the Company’s capital stock (common and preferred stock). Under these programs, the Company has made and may continue to make share repurchases from time to time in the open market or in privately negotiated transactions at prices not exceeding prevailing market rates. Programs have been in place continuously throughout fiscal years 2019 through 2021. The current program, which replaced an expiring program, was authorized and became effective on November 5, 2020. It authorizes the purchase of up to $100 million of the Company's outstanding common stock and expires on the earlier of November 15, 2022, or when the funds authorized for the program have been exhausted. At March 31, 2021, the full $100 million authorization remained available for share repurchases under the current program. Repurchases of common stock under the programs for fiscal years 2021, 2020, and 2019 were as follows: Fiscal Year Ended March 31, 2021 2020 2019 Number of shares repurchased — 656,820 30,777 Cost of shares repurchased (in thousands of dollars) $ — $ 33,457 $ 1,443 Weighted-average cost per share $ — $ 50.94 $ 46.87 |
Executive Stock Plans And Stock
Executive Stock Plans And Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Executive Stock Plans And Stock-Based Compensation | EXECUTIVE STOCK PLANS AND STOCK-BASED COMPENSATION Executive Stock Plans The Company’s shareholders have approved executive stock plans under which officers, directors, and employees of the Company may receive grants and awards of common stock, restricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”), stock appreciation rights (“SARs”), incentive stock options, and non-qualified stock options. Currently, grants are outstanding under the 1997 Executive Stock Plan, the 2002 Executive Stock Plan, the 2007 Stock Incentive Plan, and the 2017 Stock Incentive Plan. Together, these plans are referred to in this disclosure as the “Plans.” Up to 1,000,000 shares may be issued under the 2017 Stock Incentive Plan, with no specific share limit for any of the award types. New awards may no longer be issued under the 1997, 2002, and 2007 Plans. The Company’s practice is to award grants of stock-based compensation to officers at the first regularly-scheduled meeting of the Compensation Committee of the Board of Directors (the “Compensation Committee”) in the fiscal year following the public release of the Company’s financial results for the prior year. In recent years, the Compensation Committee has awarded only grants of RSUs and PSUs. Outside directors automatically receive restricted stock units following each annual meeting of shareholders. RSUs awarded under the Plans vest 5 years from the grant date and are then paid out in shares of common stock. Under the terms of the RSU awards, grantees receive dividend equivalents in the form of additional RSUs that vest and are paid out on the same date as the original RSU grant. The PSUs vest 3 years from the grant date, are paid out in shares of common stock at the vesting date, and do not carry rights to dividends or dividend equivalents prior to vesting. Shares ultimately paid out under PSU grants are dependent on the achievement of predetermined performance measures established by the Compensation Committee and can range from zero to 150% of the stated award. RSUs awarded to outside directors prior to fiscal 2020 vest 3 years after the grant date and those granted in fiscal 2020 vest in 1 year. Additionally, restricted stock vests upon the individual’s retirement from service as a director. RSUs, Restricted Stock, and PSUs The following table summarizes the Company’s RSU, restricted stock, and PSU activity for fiscal years 2019 through 2021: RSUs Restricted Stock PSUs Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Fiscal Year Ended March 31, 2019: Unvested at beginning of year 336,919 $ 55.77 30,200 $ 42.37 151,000 $ 50.50 Granted 87,621 64.53 — — 54,800 57.12 Vested (99,549) 59.09 (8,950) 44.25 (49,092) 45.06 Forfeited — — — — (9,834) 45.55 Unvested at end of year 324,991 57.12 21,250 42.37 146,874 55.12 Fiscal Year Ended March 31, 2020: Granted 85,463 56.39 — — 60,728 50.16 Vested (74,518) 54.20 — — (67,402) 49.17 Forfeited — — — — — — Unvested at end of year 335,936 57.89 21,250 41.58 140,200 55.73 Fiscal Year Ended March 31, 2021: Granted 103,829 46.27 — — 65,135 34.33 Vested (97,297) 54.11 (9,650) 41.24 (40,410) 60.37 Forfeited — — — — (3,778) 57.83 Unvested at end of year 342,468 $ 55.44 11,600 $ 41.86 161,147 $ 46.20 Shares granted and vested in the above table include dividend equivalents on RSUs and any shares awarded above the base grant under the performance provisions of PSUs. Shares forfeited or canceled include any reductions from the base PSU grant under those same performance provisions. The fair values of RSUs, restricted stock, and PSUs are based on the market price of the common stock on the grant date. Stock-Based Compensation Expense Fair value expense for stock-based compensation is recognized ratably over the period from grant date to the earlier of (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For employees who are already eligible to retire at the date an award is granted, the total fair value of the award is recognized as expense at the date of grant. For the fiscal years ended March 31, 2021, 2020, and 2019, total stock-based compensation expense and the related income tax benefit recognized were as follows: Fiscal Year Ended March 31, 2021 2020 2019 Total stock-based compensation expense $ 6,106 $ 5,631 $ 8,152 Income tax benefit recorded on stock-based compensation expense $ 1,282 $ 1,182 $ 1,712 At March 31, 2021, the Company had $4.6 million of unrecognized compensation expense related to stock-based awards, which will be recognized over a weighted-average period of approximately 1.1 years. |
Commitments And Other Matters
Commitments And Other Matters | 12 Months Ended |
Mar. 31, 2021 | |
Commitments And Other Matters [Abstract] | |
Commitments And Other Matters | COMMITMENTS, CONTINGENCIES, AND OTHER MATTERS Commitments The Company enters into contracts to purchase tobacco from farmers in a number of the countries where it operates. Contracts in most countries cover one annual growing season. Primarily with the farmer contracts in Brazil, Malawi, Mozambique, the Philippines, Guatemala, and Mexico, the Company provides seasonal financing to support the farmers’ production of their crops or guarantees their financing from third-party banks. At March 31, 2021, the Company had contracts to purchase approximately $442 million of tobacco to be delivered during the coming fiscal year and $123 million of tobacco to be delivered in subsequent years. These amounts are estimates since actual quantities purchased will depend on crop yields, and prices will depend on the quality of the tobacco delivered and other market factors. Tobacco purchase obligations have been partially funded by short-term advances to farmers and other suppliers, which totaled approximately $122 million, net of allowances, at March 31, 2021. The Company withholds payments due to farmers on delivery of the tobacco to satisfy repayment of the financing it provided to the farmers. As noted above and discussed in more detail below, the Company also has arrangements to guarantee bank loans to farmers in Brazil, and payments are also withheld on delivery of tobacco to satisfy repayment of those loans. In addition to its contractual obligations to purchase tobacco, the Company had commitments related to agricultural materials, approved capital expenditures, and various other requirements that approximated $103 million at March 31, 2021. Guarantees and Other Contingent Liabilities Guarantees of Bank Loans and Other Contingent Liabilities The majority of crop financing utilized for fiscal year 2021 in Brazil did not require guaranteed bank loans to tobacco growers, resulting in the elimination of guarantees at March 31, 2021. For the majority of crop financing prior to fiscal year 2021, the Company relied heavily on guaranteed bank loans to tobacco growers in Brazil for crop financing. Bank guarantees for the Company's operating subsidiary in Brazil normally expire within one year. The subsidiary withheld payments due to the farmers on delivery of tobacco and forwarded those payments to the third-party banks. Failure of farmers to deliver sufficient quantities of tobacco to the subsidiary to cover its obligations to the third-party banks would result in a liability for the subsidiary under the related guarantees; however, in that case, the subsidiary would have recourse against the farmers. The maximum potential amount of future payments that the Company’s subsidiary would have been be required to make at March 31, 2020, was the face amount (which includes unpaid interest), which was $3 million. The fair value of the guarantees was a liability of approximately $0.1 million at March 31, 2020. In addition to these guarantees, the Company has other contingent liabilities totaling approximately $1 million at March 31, 2021, primarily under outstanding letters of credit. Value-Added Tax Assessments in Brazil As discussed in Note 1, the Company's local operating subsidiaries pay significant amounts of value-added tax ("VAT") in connection with their normal operations. In Brazil, VAT is assessed at the state level when green tobacco is transferred between states. The Company's operating subsidiary there pays VAT when tobaccos grown in the states of Santa Catarina and Parana are transferred to its factory in the state of Rio Grande do Sul for processing. The subsidiary has received assessments for additional VAT plus interest and penalties from the tax authorities for the states of Santa Catarina and Parana based on audits of the subsidiary's VAT filings for specified periods. In June 2011, tax authorities for the state of Santa Catarina issued assessments for tax, interest, and penalties for periods from 2006 through 2009 totaling approximately $7 million. In September 2014, tax authorities for the state of Parana issued an assessment for tax, interest, and penalties for periods from 2009 through 2014 totaling approximately $10 million. These amounts are based on the exchange rate for the Brazilian currency at March 31, 2021. Management of the operating subsidiary and outside counsel believe that errors were made by the tax authorities for both states in determining all or significant portions of these assessments and that various defenses support the subsidiary's positions. With respect to the Santa Catarina assessments, the subsidiary took appropriate steps to contest the full amount of the claims. As of March 31, 2021, a portion of the subsidiary's arguments had been accepted, and the outstanding assessment had been reduced, although interest on the remaining assessment has continued to accumulate. The reduced assessment, together with the related accumulated interest through the end of the current reporting period, totaled approximately $8 million at the March 31, 2021 exchange rate. The subsidiary is continuing to contest the full remaining amount of the assessment. While the range of reasonably possible loss is zero up to the full $8 million remaining assessment, based on the strength of the subsidiary's defenses, no loss within that range is considered probable at this time and no liability has been recorded at March 31, 2021. With respect to the Parana assessment, management of the subsidiary and outside counsel challenged the full amount of the claim. A significant portion of the Parana assessment was based on positions taken by the tax authorities that management and outside counsel believe deviate significantly from the underlying statutes and relevant case law. In addition, under the law, the subsidiary's tax filings for certain periods covered in the assessment were no longer open to any challenge by the tax authorities. In December 2015, the Parana tax authorities withdrew the initial claim and subsequently issued a new assessment covering the same tax periods. The new assessment totaled approximately $3 million at the March 31, 2021 exchange rate, reflecting a substantial reduction from the original $10 million assessment. Notwithstanding the reduction, management and outside counsel continue to believe that the new assessment is not supported by the underlying statutes and relevant case law and have challenged the full amount of the claim. The range of reasonably possible loss is considered to be zero up to the full $3 million assessment. However, based on the strength of the subsidiary's defenses, no loss within that range is considered probable at this time and no liability has been recorded at March 31, 2021. In both states, the process for reaching a final resolution to the assessments is expected to be lengthy, and management is not currently able to predict when either case will be concluded. Should the subsidiary ultimately be required to pay any tax, interest, or penalties in either case, the portion paid for tax would generate value-added tax credits that the subsidiary may be able to recover. Other Legal and Tax Matters Various subsidiaries of the Company are involved in other litigation and tax examinations incidental to their business activities. While the outcome of these matters cannot be predicted with certainty, management is vigorously defending the matters and does not currently expect that any of them will have a material adverse effect on the Company’s business or financial position. However, should one or more of these matters be resolved in a manner adverse to management’s current expectation, the effect on the Company’s results of operations for a particular fiscal reporting period could be material. |
Operating Segments
Operating Segments | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Operating Segments | OPERATING SEGMENTS As a result of recent acquisitions of plant-based ingredients companies in fiscal year 2020 and 2021, during the fiscal year ended March 31, 2021 management evaluated the Company’s global business activities, including product and service offerings to its customers, as well as senior management’s operational and financial responsibilities. This assessment included an analysis of how its chief operating decision maker measures business performance and allocates resources. As a result of this analysis, senior management determined the Company conducts operations across two reportable operating segments, Tobacco Operations and Ingredients Operations. The Tobacco Operations segment activities 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. The Tobacco Operations segment also provides physical and chemical product testing and smoke testing for tobacco customers. A substantial portion of the Company’s Tobacco Operations' revenues are derived from sales to a limited number of large, multinational cigarette and cigar manufacturers. The Ingredients Operations segment provides its customers with a broad variety of plant-based ingredients for both human and pet consumption. The Ingredients Operations segment utilizes a variety of value-added manufacturing processes converting raw materials into a wide spectrum of fruit and vegetable juices, concentrates, and dehydrated products. Customers for the Ingredients Operations segment include large multinational food and beverage companies, as well as smaller independent entities. FruitSmart, Silva, and CIFI are the primary operations for the Ingredients Operations segment. FruitSmart manufactures fruit and vegetable juices, purees, concentrates, essences, fibers, seeds, seed oils, and seed powders. Silva is primarily a dehydrated product manufacturer of fruit and vegetable based flakes, dices, granules, powders, and blends. In December 2020, the Company announced the wind-down of CIFI, a greenfield operation that primarily manufactured both dehydrated and liquid sweet potato products. See Note 4 for additional information about the wind-down of CIFI. 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 currently allocated to the reportable operating segments, generally on the basis of volumes planned to be purchased and/or processed. Management believes this method of allocation is currently representative of the value of the related services provided to the operating segments. The Company currently 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, 2021, 2020, and 2019, is as follows, including a recast of the new reportable operating segments presentation for all periods: Sales and Other Operating Revenues Operating Income Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2021 2020 2019 2021 2020 2019 Tobacco Operations $ 1,841,837 $ 1,887,084 $ 2,222,246 $ 168,832 $ 146,637 $ 195,383 Ingredients Operations 141,520 22,895 4,907 367 (8,516) (8,611) Subtotal 1,983,357 1,909,979 2,227,153 169,199 138,121 186,772 Deduct: Equity in pretax earnings of unconsolidated affiliates (1) (2,985) (4,211) (5,299) Restructuring and impairment costs (2) (22,577) (7,543) (20,304) Add: Other income (3) 4,173 — — Consolidated total $ 1,983,357 $ 1,909,979 $ 2,227,153 $ 147,810 $ 126,367 $ 161,169 Segment Assets Accounts Receivable, net March 31, March 31, 2021 2020 2019 2021 2020 2019 Tobacco Operations $ 2,002,059 $ 1,985,732 $ 2,108,641 $ 336,876 $ 330,367 $ 367,579 Ingredients Operations 339,865 135,189 24,543 30,606 10,344 531 Consolidated total $ 2,341,924 $ 2,120,921 $ 2,133,184 $ 367,482 $ 340,711 $ 368,110 Goodwill, net Intangibles, net March 31, Fiscal Year Ended March 31, 2021 2020 2019 2021 2020 2019 Tobacco Operations $ 98,044 $ 97,963 $ 97,907 $ 82 $ 59 $ 87 Ingredients Operations 75,007 28,863 — 72,222 17,802 — Consolidated total $ 173,051 $ 126,826 $ 97,907 $ 72,304 $ 17,861 $ 87 Capital Expenditures Depreciation and Amortization Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2021 2020 2019 2021 2020 2019 Tobacco Operations $ 46,037 $ 35,175 $ 38,206 $ 33,895 $ 35,251 $ 35,449 Ingredients Operations 20,117 52 554 10,838 3,128 1,655 Consolidated total $ 66,154 $ 35,227 $ 38,760 $ 44,733 $ 38,379 $ 37,104 (1) Equity in pretax earnings of unconsolidated affiliates is included in reportable segment operating income, but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. (2) Restructuring and impairment costs are excluded from reportable segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 4). (3) Other income represents the reversal of a portion of the contingent consideration liability associated with the acquisition of FruitSmart. See Note 2 for additional information. Geographic data as of, or for, the fiscal years ended March 31, 2021, 2020, and 2019, 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, 2021 2020 2019 United States $ 369,074 $ 221,428 $ 227,771 Belgium 366,476 361,889 390,433 Poland 97,001 84,011 145,478 Germany 94,519 104,525 166,397 Philippines 94,493 68,143 69,820 China 52,837 105,683 115,174 Mexico 51,448 35,475 64,700 All other countries 857,509 928,825 1,047,380 Consolidated total $ 1,983,357 $ 1,909,979 $ 2,227,153 Long-Lived Assets March 31, 2021 2020 2019 United States $ 266,258 $ 145,764 $ 81,270 Brazil 134,909 138,157 139,624 Mozambique 44,206 42,964 45,051 All other countries 149,492 132,955 134,543 Consolidated total $ 594,865 $ 459,840 $ 400,488 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in the balances for each component of accumulated other comprehensive income (loss) attributable to the Company for the fiscal years ended March 31, 2021, 2020, and 2019: Fiscal Year Ended March 31, (in thousands of dollars) 2021 2020 2019 Foreign currency translation: Balance at beginning of year $ (42,923) $ (40,101) $ (23,942) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on foreign currency translation (net of tax (expense) benefit of $180 in 2020) 8,272 (3,066) (16,316) Less: Net loss on foreign currency translation attributable to noncontrolling interests (484) 244 157 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes 7,788 (2,822) (16,159) Balance at end of year $ (35,135) $ (42,923) $ (40,101) Foreign currency hedge: Balance at beginning of year $ (12,226) $ (376) $ (35) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on derivative instruments (net of tax (expense) benefit of $(130), $2,880 and $602) 1,791 (12,391) (6,490) Reclassification of net (gain) loss to earnings (net of tax expense (benefit) of $(2,726), $136, and $(640)) (1) 10,021 541 6,149 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes 11,812 (11,850) (341) Balance at end of year $ (414) $ (12,226) $ (376) Interest rate hedge: Balance at beginning of year $ (27,402) $ (934) $ 6,528 Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on derivative instruments (net of tax (expense) benefit of $(637), $6,801, and $1,574) 2,396 (25,588) (5,922) Reclassification of net (gain) loss to earnings (net of tax expense (benefit) of $(1,469), $234, and $409) (2) 5,526 (880) (1,540) Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes 7,922 (26,468) (7,462) Balance at end of year $ (19,480) $ (27,402) $ (934) Pension and other postretirement benefit plans: Balance at beginning of year $ (69,046) $ (54,280) $ (42,615) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) arising during the year (net of tax (expense) benefit of $(3,706), $4,715, and $4,073 (3) 13,627 (16,810) (13,927) Amortization included in earnings (net of tax benefit of $895, $554, and $628) (4) 3,411 2,044 2,262 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes 17,038 (14,766) (11,665) Balance at end of year $ (52,008) $ (69,046) $ (54,280) Total accumulated other comprehensive income (loss) at end of year $ (107,037) $ (151,597) $ (95,691) (1) Gains (losses) on foreign currency cash flow hedges related to forecast purchases of tobacco and crop input sales are reclassified from accumulated other comprehensive income (loss) to cost of goods sold when the tobacco is sold to customers. See Note 11 for additional information. (2) Gain (loss) on interest rate cash flow hedges is reclassified from accumulated other comprehensive income (loss) to interest expense when the related interest payments are made on the debt for open interest rate swap agreements, or as amortized to interest expense over the period to original maturity for terminated swap agreements. See Note 11 for additional information. (3) These items arise from the remeasurement of the assets and liabilities of the Company's defined benefit pension and other postretirement benefit plans. Those remeasurements are made on an annual basis at the end of the fiscal year. See Note 13 for additional information. (4) This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost. See Note 13 for additional information. |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended |
Mar. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts Universal Corporation Fiscal Years Ended March 31, 2021, 2020, and 2019 Description Balance at Net Additions Deductions (1) Balance (in thousands of dollars) Fiscal Year Ended March 31, 2019: Allowance for doubtful accounts (deducted from accounts receivable) $ 1,783 $ 1,358 $ — $ (156) $ 2,985 Allowance for supplier accounts (deducted from advances to suppliers and other noncurrent assets) 21,720 (2,339) — (1,276) 18,105 Allowance for recoverable taxes (deducted from other current assets and other noncurrent assets) 14,679 3,535 — (1,033) 17,181 Fiscal Year Ended March 31, 2020: Allowance for doubtful accounts (deducted from accounts receivable) $ 2,985 $ (128) $ — $ (463) $ 2,394 Allowance for supplier accounts (deducted from advances to suppliers and other noncurrent assets) 18,105 937 — (2,614) 16,428 Allowance for recoverable taxes (deducted from other current assets and other noncurrent assets) 17,181 (2,586) — 4,183 18,778 Fiscal Year Ended March 31, 2021: Allowance for doubtful accounts (deducted from accounts receivable) $ 2,394 $ 304 $ — $ (1,446) $ 1,252 Allowance for supplier accounts (deducted from advances to suppliers and other noncurrent assets) 16,428 5,534 — (4,145) 17,817 Allowance for recoverable taxes (deducted from other current assets and other noncurrent assets) 18,778 799 — (408) 19,169 (1) Includes direct write-offs of assets and currency remeasurement. |
Nature Of Operations And Sign_2
Nature Of Operations And Significant Accounting Policies Nature of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature Of Operations [Policy Text Block] | Nature of Operations Universal Corporation, which together with its subsidiaries is referred to herein as “Universal” or the “Company,” is a global business-to-business agri-products supplier to consumer product manufacturers. The Company is the leading global leaf tobacco supplier and provides high-quality plant-based ingredients to food and beverage end markets. The Company conducts its leaf tobacco business in over 30 countries, primarily in major tobacco-producing regions of the world. |
Consolidation, Policy [Policy Text Block] | Consolidation The consolidated financial statements include the accounts of Universal Corporation and all domestic and foreign subsidiaries in which the Company maintains a controlling financial interest. Control is generally determined based on a voting interest of greater than 50%, such that Universal controls all significant corporate activities of the subsidiary. All significant intercompany accounts and transactions are eliminated in consolidation. The equity method of accounting is used for investments in companies where Universal Corporation has a voting interest of 20% to 50%. These investments are accounted for under the equity method because Universal exercises significant influence over those companies, but not control. The Company received dividends totaling $2.9 million in fiscal year 2021, $3.9 million in fiscal year 2020, and $7.5 million in fiscal year 2019, from companies accounted for under the equity method. Investments where Universal has a voting interest of less than 20% are not significant and do not have readily determinable fair values. As such, the Company has elected the alternate method of measuring these investments at cost, less any impairment. The Company's 49% ownership interest in Socotab L.L.C. (“Socotab”), a leading supplier of oriental tobaccos with operations located principally in Eastern Europe and Turkey, is the primary investment accounted for under the equity method. The investment in Socotab is an important part of the Company's overall product and service arrangements with its major customers. The Company reviews the carrying value of its investments in Socotab and its other unconsolidated affiliates on a regular basis and considers whether any factors exist that might indicate an impairment in value that is other than temporary. For the fiscal year ended March 31, 2021, the Company determined that no such factors existed with respect to those investments. The Company's operations in Zimbabwe are deconsolidated under accounting requirements that apply under certain conditions to foreign subsidiaries that are subject to foreign exchange controls and other government restrictions. The investment in the Zimbabwe operations is accounted for at cost less impairment, and was zero at March 31, 2021 and 2020. The Company has a net foreign currency translation loss associated with the Zimbabwe operations of approximately $7.2 million, which remains a component of accumulated other comprehensive loss at March 31, 2021. As a regular part of its reporting, the Company reviews the conditions that resulted in the deconsolidation of the Zimbabwe operations to confirm that such accounting treatment is still appropriate. Dividends from the Zimbabwe operations are recorded in income in the period received. The Company holds less than a 100% financial interest in certain consolidated subsidiaries. The net income and shareholders’ equity attributable to the noncontrolling interests in these subsidiaries are reported on the face of the consolidated financial statements. There were no material changes in the Company’s ownership percentage in any of these subsidiaries during fiscal years 2021, 2020, or 2019. |
Investment, Policy [Policy Text Block] | Investments in Unconsolidated Affiliates The Company’s investments in its unconsolidated affiliates, which include its Zimbabwe operations, are non-marketable securities. Universal reviews such investments for impairment whenever events or changes in circumstances indicate that the carrying amount of an investment may not be recovered. For example, the Company would review such an investment for impairment if the investee were to lose a significant customer, suffer a large reduction in sales margins, experience a major change in its business environment, or undergo any other significant change in its normal business. In assessing the recoverability of these investments, the Company follows the applicable accounting guidance in determining the fair value of the investments. In most cases, this involves the use of undiscounted and discounted cash flow models (Level 3 of the fair value hierarchy under the accounting guidance). If the fair value of an unconsolidated investee is determined to be lower than its carrying value, an impairment loss is recognized. The determination of fair value using discounted cash flow models is normally not based on observable market data from independent sources and therefore requires significant management judgment with respect to estimates of future operating earnings and the selection of an appropriate discount rate. The use of different assumptions could increase or decrease estimated future operating cash flows, and the discounted value of those cash flows, and therefore could increase or decrease any impairment charge related to these investments. In its consolidated statements of income, the Company reports its proportional share of the earnings of unconsolidated affiliates accounted for on the equity method based on the pretax earnings of those affiliates, as permitted under the applicable accounting guidance. All applicable foreign and U.S. income taxes are provided on these earnings and reported as a component of consolidated income tax expense. For unconsolidated affiliates located in foreign jurisdictions, repatriation of the Company’s share of the earnings through dividends is assumed in determining consolidated income tax expense. The following table provides a reconciliation of (1) equity in the pretax earnings of unconsolidated affiliates, as reported in the consolidated statements of income to (2) equity in the net income of unconsolidated affiliates, net of dividends, as reported in the consolidated statements of cash flows for the fiscal years ended March 31, 2021, 2020, and 2019: Fiscal Year Ended March 31, 2021 2020 2019 Equity in pretax earnings reported in the consolidated statements of income $ 2,985 $ 4,211 $ 5,299 Less: Equity in income taxes 180 (1,390) (1,441) Equity in net income 3,165 2,821 3,858 Less: Dividends received on investments (1) (2,869) (3,922) (7,517) Equity in net income, net of dividends, reported in the consolidated statements of cash flows $ 296 $ (1,101) $ (3,659) (1) In accordance with the applicable accounting guidance, dividends received from unconsolidated affiliates accounted for on the equity method that represent a return on capital (i.e., a return of earnings on a cumulative basis) are presented as operating cash flows in the consolidated statements of cash flows. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share The Company calculates basic earnings per share based on earnings available to common shareholders. The calculation uses the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed in a similar manner using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential common shares include unvested restricted stock units and performance share units that are assumed to be fully vested and paid out in shares of common stock. Calculations of earnings per share for the fiscal years ended March 31, 2021, 2020, and 2019, are provided in Note 5. |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents All highly liquid investments with a maturity of three months or less at the time of purchase are classified as cash equivalents. |
Advances to Suppliers [Policy Text Block] | Advances to Tobacco Suppliers In many sourcing origins where the Company operates, it provides agronomy services and seasonal advances of seed, fertilizer, and other supplies to tobacco farmers for crop production, or makes seasonal cash advances to farmers for the procurement of those inputs. These advances are short term, are repaid upon delivery of tobacco to the Company, and are reported in advances to suppliers in the consolidated balance sheets. In several origins, the Company has made long-term advances to tobacco farmers to finance curing barns and other farm infrastructure. In some years, due to low crop yields and other factors, individual farmers may not deliver sufficient volumes of tobacco to fully repay their seasonal advances, and the Company may extend repayment of those advances into future crop years. The long-term portion of advances is included in other noncurrent assets in the consolidated balance sheets. Both the current and the long-term portions of advances to tobacco suppliers are reported net of allowances recorded when the Company determines that amounts outstanding are not likely to be collected. Short-term and long-term advances to tobacco suppliers totaled approximately $144 million at March 31, 2021 and $153 million at March 31, 2020. The related valuation allowances totaled $18 million at March 31, 2021, and $16 million at March 31, 2020, and were estimated based on the Company’s historical loss information and crop projections. The allowances were increased by net provisions for estimated uncollectible amounts of approximately $5.5 million in fiscal year 2021 and $1.0 million in fiscal year 2020, respectively, and reduced by net recoveries of approximately $2.3 million in fiscal year 2019. These net provisions and recoveries are included in selling, general, and administrative expenses in the consolidated statements of income. Interest on advances is recognized in earnings upon the farmers’ delivery of tobacco in payment of principal and interest. Advances on |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of cost or net realizable value. Raw materials primarily consist of unprocessed leaf tobacco, which is clearly identified by type and grade at the time of purchase. The Company tracks the costs associated with this tobacco in the final product lots, and maintains this identification through the time of sale. This method of cost accounting is referred to as the specific cost or specific identification method. The predominant cost component of the Company’s inventories is the cost of the unprocessed tobacco. Direct and indirect processing costs related to these raw materials are capitalized and allocated to inventory in a systematic manner. The Company does not capitalize any interest or sales-related costs in inventory. Freight costs are recorded in cost of goods sold. Other inventories consist primarily of unprocessed and processed food and vegetable ingredients, seed, fertilizer, packing materials, and other supplies, and are valued principally at the lower of average cost or net realizable value. |
Recoverable Value-Added Tax Credits [Policy Text Block] | Recoverable Value-Added Tax Credits In many foreign countries, the Company’s local operating subsidiaries pay significant amounts of value-added tax (“VAT”) on purchases of unprocessed and processed tobacco, crop inputs, packing materials, and various other goods and services. In some countries, VAT is a national tax, and in other countries it is assessed at the state level. Items subject to VAT vary from jurisdiction to jurisdiction, as do the rates at which the tax is assessed. When tobacco is sold to customers in the country of origin, the operating subsidiaries generally collect VAT on those sales. The subsidiaries are normally permitted to offset their VAT payments against the collections and remit only the incremental VAT collections to the tax authorities. When tobacco is sold for export, VAT is normally not assessed. In countries where tobacco sales are predominately for export markets, VAT collections generated on downstream sales are often not sufficient to fully offset the subsidiaries’ VAT payments. In those situations, unused VAT credits can accumulate. Some jurisdictions have procedures that allow companies to apply for refunds of unused VAT credits from the tax authorities, but the refund process often takes an extended period of time, and it is not uncommon for refund applications to be challenged or rejected in part on technical grounds. Other jurisdictions may permit companies to sell or transfer unused VAT credits to third parties in private transactions, although approval for such transactions must normally be obtained from the tax authorities, limits on the amounts that can be transferred may be imposed, and the proceeds realized may be heavily discounted from the face value of the credits. Due to these factors, local operating subsidiaries in some countries can accumulate significant balances of VAT credits over time. The Company reviews these balances on a regular basis and records valuation allowances on the credits to reflect amounts that are not expected to be recovered, as well as discounts anticipated on credits that are expected to be sold or transferred. At March 31, 2021 and 2020, the aggregate balances of recoverable tax credits held by the Company’s subsidiaries totaled approximately $49 million and $52 million, respectively, and the related valuation allowances totaled approximately $19 million at both dates. The net balances are reported in other current assets and other noncurrent assets in the consolidated balance sheets. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Depreciation of property, plant and equipment is based upon historical cost and the estimated useful lives of the assets. Depreciation is calculated primarily using the straight-line method. Buildings include processing and blending facilities, offices, and warehouses. Machinery and equipment consists of processing and packing machinery and transport, office, and computer equipment. Estimated useful lives range as follows: buildings - 15 to 40 years; processing and packing machinery - 3 to 11 years; transport equipment - 3 to 10 years; and office and computer equipment - 3 to 12 years. Where applicable and material in amount, the Company capitalizes related interest costs during periods that property, plant and equipment are being constructed or made ready for service. No interest was capitalized in fiscal years 2021, 2020, or 2019. |
Lessee, Leases [Policy Text Block] | Leases As discussed below under "Accounting Pronouncements", the Company adopted updated comprehensive accounting guidance for leases at the beginning of fiscal year 2020 (Accounting Standards Update No. 2016-02, "Leases (Topic 842)" and supplemental amendments, which superseded the lease accounting requirements in Topic 840). The Company determines if an arrangement meets the definition of a lease at inception. The Company, as a lessee, enters into operating leases for land, buildings, equipment, and vehicles. For all operating leases with terms greater than 12 months and with fixed payment arrangements, a lease liability and corresponding right-of-use asset are recognized in the balance sheet for the term of the lease by calculating the net present value of future lease payments. On the date of lease commencement, the present value of lease liabilities is determined by discounting the future lease payments by the Company’s collateralized incremental borrowing rate, adjusted for the lease term and currency of the lease payments. If a lease contains a renewal option that the Company is reasonably certain to exercise, the Company accounts for the original lease term and expected renewal term in the calculation of the lease liability and right-of-use asset. Certain of the Company’s leases include both lease and non-lease |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangibles Goodwill and other intangibles are disclosed in Note 7. Goodwill principally consists of the excess of the purchase price of acquired companies over the fair value of the net assets. Goodwill is carried at the lower of cost or fair value and is reviewed for potential impairment on an annual basis as of the end of the fiscal year. Accounting Standards Codification Topic 350 (“ASC 350”) permits companies to base their initial assessments of potential goodwill impairment on qualitative factors, and the Company elected to use that approach at March 31, 2021 and 2020. Those factors did not indicate that it was more likely than not that the fair value of any of the reporting units was less than their respective carrying value, therefore no potential impairment of the Company's recorded goodwill was noted as of those dates. Reporting units are distinct operating subsidiaries or groups of subsidiaries that typically compose the Company’s business in a specific country or location. Goodwill is allocated to reporting units based on the country or location to which a specific acquisition relates, or by allocation based on expected future cash flows if the acquisition relates to more than one country or location. The majority of the Company’s goodwill relates to its reporting unit in Brazil and recent acquisitions of Silva International Inc. and FruitSmart, Inc. See Note 2 for additional information. Significant adverse changes in the operations or estimated future cash flows for a reporting unit with recorded goodwill could result in an impairment charge. Other intangibles principally consists of finite lived intangible assets including customer-related intangibles, trade names, developed technology, and noncompetition agreements. Intangible assets acquired in a business combination are recorded at fair value using a discounted cash flow approach. A discounted cash flow approach to value intangible assets requires assumptions about the timing, amount, and probability of future net cash flows, as well as the discount rate and market participant considerations. Other intangibles are amortized on a straight-line basis over the intangible asset's economic life. |
Impairment or Disposal of Long-Lived Intangible Assets, Impairment, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment, disclosed in Note 4 and Note 12, whenever events, changes in business conditions, or other circumstances provide an indication that such assets may be impaired. Potential impairment is initially assessed by comparing management’s undiscounted estimates of future cash flows from the use or disposition of the assets to their carrying value. If the carrying value exceeds the undiscounted cash flows, an impairment charge is recorded to reduce the carrying value of the asset to its fair value determined in accordance with the accounting guidance. In many cases, this involves the use of discounted cash flow models that are not based on observable market data from independent sources (Level 3 of the fair value hierarchy under the accounting guidance). |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company provides deferred income taxes on temporary differences between the book and tax basis of its assets and liabilities. Those differences arise principally from employee benefit accruals, depreciation, deferred compensation, undistributed earnings of unconsolidated affiliates, undistributed earnings of foreign subsidiaries, goodwill, and valuation allowances on farmer advances and value-added tax credits. Income taxes provided on pretax amounts recorded in accumulated other comprehensive income (loss) are released when the related pretax amounts are reclassified to earnings. Additional disclosures related to the Company's income taxes are disclosed in Note 6. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Values of Financial Instruments The fair value of the Company’s long-term debt, disclosed in Note 12, approximates the carrying amount since the variable interest rates in the underlying credit agreement reflect the market interest rates that were available to the Company at March 31, 2021. In periods when fixed-rate obligations are outstanding, fair values are estimated using market prices where they are available or discounted cash flow models based on current incremental borrowing rates for similar classes of borrowers and borrowing arrangements. The fair values of interest rate swap agreements designated as cash flow hedges and used to fix the variable benchmark rate on outstanding long-term debt are determined separately and recorded in other long-term liabilities. Except for interest rate swaps and forward foreign currency exchange contracts that are discussed below, the fair values of all other assets and liabilities that qualify as financial instruments approximate their carrying amounts. |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments The Company recognizes all derivatives on the balance sheet at fair value. Interest rate swaps and forward foreign currency exchange contracts are used from time to time to manage interest rate risk and foreign currency risk. The Company enters into such contracts only with counterparties of good standing. The credit exposure related to non-performance by the counterparties and the Company is considered in determining the fair values of the derivatives, and the effect has not been |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Translation and Remeasurement of Foreign Currencies The financial statements of foreign subsidiaries having the local currency as the functional currency are translated into U.S. dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates applicable to each reporting period for results of operations. Adjustments resulting from translation of financial statements are reflected as a separate component of other comprehensive income or loss. The financial statements of foreign subsidiaries having the U.S. dollar as the functional currency, with certain transactions denominated in a local currency, are remeasured into U.S. dollars. The remeasurement of local currency amounts into U.S. dollars creates remeasurement gains and losses that are included in earnings as a component of selling, general, and administrative expenses. The Company recognized net remeasurement gains of $8.5 million in fiscal year 2021, and net remeasurement losses of $16.4 million in fiscal year 2020 and $1.8 million in fiscal year 2019. Foreign currency transactions and forward foreign currency exchange contracts that are not designated as hedges generate gains and losses when they are settled or when they are marked-to-market under the prescribed accounting guidance. These transaction gains and losses are also included in earnings as a component of selling, general, and administrative expenses. The Company recognized net foreign currency transaction losses of $1.4 million in fiscal year 2021, $2.9 million in fiscal year 2020, and $4.3 million in fiscal year 2019. |
Revenue [Policy Text Block] | Revenue Recognition Revenue is recognized when the Company completes its performance obligation for the transfer of products and services under its contractual arrangements with customers. For sales of tobacco, satisfaction of the performance obligation and recognition of the corresponding revenue is based on the transfer of the ownership and control of the product to the customer, which is substantially unchanged from the previous accounting guidance. A large percentage of the Company’s sales are to major multinational manufacturers of consumer tobacco products. The Company works closely with those customers to understand and plan for their requirements for volumes, styles, and grades of leaf tobacco from its various growing regions, and extensive coordination is maintained on an ongoing basis to determine and satisfy their requirements for transfer of ownership and physical shipment of processed tobacco. The customers typically specify, in sales contracts and in shipping documents, the precise terms for transfer of title and risk of loss for the tobacco. Customer returns and rejections are not significant, and the Company’s sales history indicates that customer-specific acceptance provisions are consistently met upon transfer of title and risk of loss. While most of the Company’s revenue is derived from tobacco that is purchased from farmers, processed and packed in its factories, and then sold to customers, some revenue is earned from processing tobacco owned by customers and from other value-added services. The arrangements for processing services usually exist in specific markets where the customers contract directly with farmers for leaf production, and they have accounted for less than 5% of total revenue on an annual basis through the fiscal year ended March 31, 2021. Processing and packing of leaf tobacco is a short-duration process. Under normal operating conditions, raw tobacco that is placed into the production line exits as processed and packed tobacco within one hour, and is then later transported to customer-designated storage facilities. The revenue for these services is recognized when the performance obligation is met upon the completion of processing, and the Company's operating history indicates that customer requirements for processed tobacco are consistently met upon completion of processing. The Company has diversified its operations through acquisition of established companies that offer customers a wide range of both liquid and dehydrated fruit and vegetable ingredient products. These operations procure raw materials from domestic and international growers and suppliers and through a variety of processing steps (including sorting, cleaning, pressing, mixing, and blending), manufacture finished goods utilized in both human and pet food. The contracts for food ingredients with customers create a performance obligation to transfer the manufactured finished goods to the customer. Transaction prices for the sale of food ingredients are primarily based on negotiated fixed prices. At the point in time that the customer obtains control over the finished product, which is typically aligned with physical shipment under the contractual terms with the customer, the Company completes its performance obligation and recognizes the revenue for the sale. Additional disclosures related to the Company's revenue from contracts with customers are provided in Note 3. |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation Share-based payments, such as grants of restricted stock units, performance share units, restricted stock, stock appreciation rights, and stock options, are measured at fair value and reported as expense in the financial statements over the requisite service period. Additional disclosures related to stock-based compensation are included in Note 15. |
Use of Estimates, Policy [Policy Text Block] | Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Accounting Pronouncements [Policy Text Block] | Accounting Pronouncements Pronouncements Adopted in Fiscal Year 2019 In October 2016, the FASB issued Accounting Standards Update No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”). ASU 2016-16 requires companies to recognize the income tax effects of intercompany sales or transfers of assets other than inventory in the income statement as income tax expense in the period the sale or transfer occurs, rather than deferring those tax effects until the asset has been sold to a third-party or otherwise recognized in earnings through depreciation, amortization, or impairment. In prior fiscal reporting periods, various subsidiaries of the Company sold tobacco processing equipment to other subsidiaries, and the related income effects have been deferred as required under the previous accounting guidance. The Company adopted ASU 2016-16 effective April 1, 2018, the beginning of fiscal year 2019. Under the modified retrospective transition method required by the guidance, the Company recorded a $1.9 million reduction to retained earnings for the fiscal year ended March 31, 2019 for the cumulative effect of recognizing the deferred income tax effects on all prior intercompany sales of equipment as of the date of adoption. Pronouncements Adopted in Fiscal Year 2020 The Company adopted FASB Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) effective April 1, 2019, the beginning of the current fiscal year. For leases with fixed payment arrangements, ASU 2016-02 requires a lessee to recognize lease payment obligations as a lease liability and corresponding right-of-use asset in the balance sheet for the term of the lease. This guidance superseded Topic 840 “Leases.” The Company elected the practical expedient to not include leases with terms less than 12 months on the consolidated balance sheet. The Company elected the transition package of practical expedients that retained the historical lease identification, lease classification, and treatment of initial direct costs for leases prior to the adoption of ASU 2016-02. Additionally, as permitted under the new guidance the Company elected to not separate lease and non-lease components for certain classes of leased assets, including real estate. The Company elected the modified retrospective transition adoption method. Accordingly, on the date of adoption $36.6 million of operating lease right-of use assets and corresponding operating lease liabilities of $34.2 million were recognized on the Company's consolidated balance sheet. The adoption of ASU 2016-02 did not result in a cumulative-effect adjustment to retained earnings. The disclosures required for lease accounting are provided in Note 10. The Company adopted FASB Accounting Standards Update No. 2017-04, “Intangibles - Goodwill and Other (Topic 350)” (“ASU 2017-04”) effective July 1, 2019. Under current accounting guidance, the fair value of a reporting unit to which a specific goodwill balance relates is first compared to its carrying value in the financial statements (Step 1). If that comparison indicates that the goodwill is impaired, an implied fair value for the goodwill must then be calculated by deducting the individual fair values of all other assets and liabilities, including any unrecognized intangible assets, from the total fair value of the reporting unit. ASU 2017-04 simplifies the accounting guidance by eliminating Step 2 from the goodwill impairment test and using the fair value of the reporting unit determined in Step 1 to measure the goodwill impairment loss. There was no material impact to the consolidated financial statements from the adoption of ASU 2017-04. Pronouncements Adopted in Fiscal Year 2021 The Company adopted FASB Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) effective April 1, 2020. ASU 2016-13 requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company determined that the update applied to trade receivables, but that there was no material impact to the consolidated financial statements from the adoption of ASU 2016-13. The Company adopted FASB Accounting Standards Update No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of FASB Emerging Issues Task Force)” (“ASU 2018-15”) effective April 1, 2020. ASU 2018-15 aligns the requirements for capitalizing implementation costs in a cloud computing arrangement service contract with the requirements for capitalizing implementation costs incurred for an internal-use software license. Under that model, implementation costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred. Capitalized implementation costs are amortized over the term of the associated hosted cloud computing arrangement service contract on a straight-line basis, unless another systematic and rational basis is more representative of the pattern in which the entity expects to benefit from its right to access the hosted software. Capitalized implementation costs would then be assessed for impairment in a manner similar to long-lived assets. There was no material impact to the consolidated financial statements from the adoption of ASU 2018-15. Pronouncements to be Adopted in Future Periods In December 2019, the FASB issued Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The updated guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance in ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, although early adoption is permitted. The Company will be required to adopt the new standard effective April 1, 2021, which is the beginning of its fiscal year ending March 31, 2022, and is currently evaluating the impact that the guidance will have on its consolidated financial statements. In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions related to contract modifications and hedge accounting to address the transitions from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance permits an entity to consider contract modification due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. ASU 2020-04 also temporarily allows hedge relationships to continue without de-designation upon changes due to reference rate reform. The standard is effective upon issuance and can be applied as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact that the guidance will have on its consolidated financial statements. |
Reclassifications [Policy Text Block] | Reclassifications |
Nature Of Operations And Sign_3
Nature Of Operations And Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Reconciliation Of Equity In Unconsolidated Affiliates | The following table provides a reconciliation of (1) equity in the pretax earnings of unconsolidated affiliates, as reported in the consolidated statements of income to (2) equity in the net income of unconsolidated affiliates, net of dividends, as reported in the consolidated statements of cash flows for the fiscal years ended March 31, 2021, 2020, and 2019: Fiscal Year Ended March 31, 2021 2020 2019 Equity in pretax earnings reported in the consolidated statements of income $ 2,985 $ 4,211 $ 5,299 Less: Equity in income taxes 180 (1,390) (1,441) Equity in net income 3,165 2,821 3,858 Less: Dividends received on investments (1) (2,869) (3,922) (7,517) Equity in net income, net of dividends, reported in the consolidated statements of cash flows $ 296 $ (1,101) $ (3,659) (1) In accordance with the applicable accounting guidance, dividends received from unconsolidated affiliates accounted for on the equity method that represent a return on capital (i.e., a return of earnings on a cumulative basis) are presented as operating cash flows in the consolidated statements of cash flows. |
Business Combinations Business
Business Combinations Business Combinations (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the preliminary purchase price allocation of the assets acquired and liabilities assumed for the Silva acquisition and final purchase price allocation for the FruitSmart acquisition. Silva FruitSmart Assets October 1, 2020 January 1, 2020 Cash and cash equivalents $ 8,126 $ 1,298 Accounts receivable, net 17,885 7,707 Advances to suppliers, net 3,011 — Inventory 33,162 23,793 Other current assets 833 310 Property, plant and equipment (net) 24,437 23,400 Intangibles Customer relationships 53,000 9,500 Developed technology — 4,800 Trade names 7,800 3,300 Non-compete agreements — 1,000 Goodwill 46,144 28,863 Total assets acquired 194,398 103,971 Liabilities Accounts payable and accrued expenses 11,683 7,592 Accrued compensation 3,350 670 Income taxes payable 946 — Deferred income taxes 14,419 9,004 Total liabilities assumed 30,398 17,266 Total assets acquired and liabilities assumed $ 164,000 $ 86,705 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Revenue from Contract with Customer (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Company’s revenue by significant revenue-generating category: Fiscal Year Ended March 31, 2021 2020 2019 Tobacco sales $ 1,715,066 $ 1,759,769 $ 2,085,001 Ingredient sales 127,393 22,014 4,769 Processing revenue 73,021 76,123 85,426 Other sales and revenue from contracts with customers 49,983 33,971 37,930 Total revenue from contracts with customers 1,965,463 1,891,877 2,213,126 Other operating sales and revenues 17,894 18,102 14,027 Consolidated sales and other operating revenues $ 1,983,357 $ 1,909,979 $ 2,227,153 Other operating sales and revenues consists principally of interest on advances to tobacco suppliers and dividend income from unconsolidated affiliates. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Restructuring Costs [Abstract] | |
Cumulative Restructuring Costs | 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 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 |
Reconciliation Of Company's Liability For The Restructuring Costs | 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 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 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings per share: Fiscal Year Ended March 31, (in thousands, except share and per share data) 2021 2020 2019 Basic Earnings Per Share Numerator for basic earnings per share Net income attributable to Universal Corporation $ 87,410 $ 71,680 $ 104,121 Denominator for basic earnings per share Weighted average shares outstanding 24,656,009 24,982,259 25,129,192 Basic earnings per share $ 3.55 $ 2.87 $ 4.14 Diluted Earnings Per Share Numerator for diluted earnings per share Net income attributable to Universal Corporation $ 87,410 $ 71,680 $ 104,121 Denominator for diluted earnings per share: Weighted average shares outstanding 24,656,009 24,982,259 25,129,192 Effect of dilutive securities Employee and outside director share-based awards 132,557 124,092 201,245 Denominator for diluted earnings per share 24,788,566 25,106,351 25,330,437 Diluted earnings per share $ 3.53 $ 2.86 $ 4.11 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Components of Income Tax Expense | Income taxes for the fiscal years ended March 31, 2021, 2020, and 2019 consisted of the following: Fiscal Year Ended March 31, 2021 2020 2019 Current United States $ 9,500 $ 2,001 $ (2,639) State and local 621 92 377 Foreign 21,626 41,892 39,578 31,747 43,985 37,316 Deferred United States (5,938) 3,735 5,713 State and local (314) (16) (4) Foreign 3,917 (12,416) (1,837) (2,335) (8,697) 3,872 Total $ 29,412 $ 35,288 $ 41,188 |
Schedule Of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows: Fiscal Year Ended March 31, 2021 2020 2019 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 0.2 0.1 0.2 Foreign earnings taxed at rates other than the U.S. federal statutory tax rate (0.9) (2.0) 7.1 Foreign dividend withholding taxes 5.3 5.1 3.7 Reversal of dividend withholding tax due to foreign subsidiary tax holiday — — (5.1) Changes in uncertain tax positions — 5.6 1.4 Other (2.2) 1.3 (1.1) Effective income tax rate 23.4 % 31.1 % 27.2 % |
Schedule Of U.S. And Foreign Components Of Income Before Income Taxes And Other Items | The U.S. and foreign components of income before income taxes were as follows: Fiscal Year Ended March 31, 2021 2020 2019 United States $ 30,060 $ 22,916 $ 37,478 Foreign 95,666 90,375 113,844 Total $ 125,726 $ 113,291 $ 151,322 |
Schedule Of Deferred Tax Assets and Liabilities | Significant components of deferred tax liabilities and assets were as follows: March 31, 2021 2020 Liabilities Foreign withholding taxes $ 21,711 $ 19,870 Property, plant and equipment 8,726 10,078 Undistributed earnings 2,947 7,298 Operating lease right-of-use assets 6,856 9,877 Goodwill and other intangible assets 35,059 23,435 All other 4,876 4,813 Total deferred tax liabilities $ 80,175 $ 75,371 Assets Employee benefit plans $ 17,199 $ 22,773 Reserves and accruals 7,603 7,708 Deferred income 3,521 4,833 Operating lease right-of-use liabilities 6,718 9,650 Currency translation losses of foreign subsidiaries 2,173 2,173 Local currency exchange losses of foreign subsidiaries 450 8,360 Interest rate swap 5,178 7,284 All other 8,568 7,464 Total deferred tax assets 51,410 70,245 Valuation allowance (4,080) (3,394) Net deferred tax assets $ 47,330 $ 66,851 |
Schedule Of Combined Income Tax Expense (Benefit) Allocable To Continuing Operations, Other Comprehensive Income, And Adjustments To Shareholders' Equity | The combined income tax expense (benefit) allocable to continuing operations and other comprehensive income was as follows: Fiscal Year Ended March 31, 2021 2020 2019 Continuing operations $ 29,412 $ 35,288 $ 41,188 Other comprehensive loss (9,563) (14,392) (5,390) Total $ 19,849 $ 20,896 $ 35,798 |
Reconciliation Of The Gross Liability For Uncertain Tax Positions | A reconciliation of the beginning and ending balance of the gross liability for uncertain tax positions is as follows: Fiscal Year Ended March 31, 2021 2020 2019 Liability for uncertain tax positions, beginning of year $ 2,377 $ 5,625 $ 3,673 Additions: Related to tax positions for the current year 49 1,746 85 Related to tax positions for prior years — 4,369 2,169 Reductions: Due to lapses of statutes of limitations (135) (81) (90) Due to tax settlements — (8,948) — Effect of currency rate changes 146 (334) (212) Liability for uncertain tax positions, end of year $ 2,437 $ 2,377 $ 5,625 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Other Intangibles [Abstract] | |
Schedule of Goodwill [Table Text Block] | The Company's changes in goodwill at March 31, 2021 and 2020 consisted of the following: (in thousands) Fiscal Year Ended March 31, 2021 2020 Balance at beginning of year $ 126,826 $ 97,907 Acquisition of business (1) (2) 46,144 28,863 Foreign currency translation adjustment 81 56 Balance at end of year $ 173,051 $ 126,826 (1) On January 1, 2020 the Company acquired 100% of the capital stock of FruitSmart for approximately $80 million in cash and up to $25 million of contingent consideration payments. The FruitSmart acquisition resulted in $28.9 million of goodwill. See Note 2 for additional information. (2) On October 1, 2020 the Company acquired 100% of the capital stock of Silva for approximately $164.0 million in cash and $5.9 million of working capital on-hand at the date of acquisition. The Silva acquisition resulted in $46.1 million of goodwill. See Note 2 for additional information. |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The Company's intangible assets primarily consist of capitalized customer-related intangibles, trade names, proprietary developed technology and noncompetition agreements. The Company's intangible assets subject to amortization consisted of the following at March 31, 2021 and 2020: (in thousands, except useful life) Fiscal Year Ended March 31, 2021 2020 Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships (1)(2) 11 - 13 $ 62,500 $ (3,323) $ 59,177 $ 9,500 $ (183) $ 9,317 Trade names (1)(2) 5 11,100 (1,605) 9,495 3,300 (165) 3,135 Developed technology (1) 3 4,800 (2,000) 2,800 4,800 (400) 4,400 Noncompetition agreements (1) 5 1,000 (250) 750 1,000 (50) 950 Other 5 760 (678) 82 657 (598) 59 Total intangible assets $ 80,160 $ (7,856) $ 72,304 $ 19,257 $ (1,396) $ 17,861 (1) The FruitSmart acquisition resulted in $18.6 million of intangibles. See Note 2 for additional information. (2) The Silva acquisition resulted in $60.8 million of intangibles. See Note 2 for additional information. Intangible assets are amortized on a straight-line basis over the asset's estimated useful economic life as noted above. |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The Company's amortization expense for intangible assets for the years ended March 31, 2021 and 2020: (in thousands) Fiscal Year Ended March 31, 2021 2020 Amortization Expense $ 6,424 $ 832 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of March 31, 2021, the expected future amortization expense for intangible assets is as follows: Fiscal Year 2022 $ 9,608 2023 9,212 2024 7,969 2025 8,534 2026 and thereafter 36,981 Total expected future amortization expense $ 72,304 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | The Company's long-term debt at March 31, 2021 and 2020 consisted of the following: March 31, 2021 2020 Senior bank term loans $ 520,000 $ 370,000 Less: current portion — — Less: unamortized debt issuance costs (1,828) (1,236) Long-term debt $ 518,172 $ 368,764 |
Leases Leases of Lessees (Table
Leases Leases of Lessees (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases of Lessees [Abstract] | |
Schedule of supplemental balance sheet information related to leases [Table Text Block] | The following table sets forth the right-of-use assets and lease liabilities for operating leases included in the Company’s consolidated balance sheet: (in thousands) March 31, 2021 March 31, 2020 Assets Operating lease right-of-use assets $ 31,230 $ 39,256 Liabilities Current portion of operating lease liabilities $ 7,898 $ 9,823 Long-term operating lease liabilities 19,725 25,893 Total operating lease liabilities $ 27,623 $ 35,716 |
Schedule of income statement information related to leases [Table Text Block] | The following table sets forth the location and amount of operating lease costs included in the Company's consolidated statement of income: Fiscal Year Ended March 31, Fiscal Year Ended March 31, (in thousands) 2021 2020 Income Statement Location Cost of goods sold $ 12,903 $ 10,954 Selling, general, and administrative expenses 9,408 8,574 Total operating lease costs (1) $ 22,311 $ 19,528 (1) Includes variable operating lease costs |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table reconciles the undiscounted cash flows to the operating lease liabilities in the Company’s consolidated balance sheet: (in thousands) March 31, 2021 Maturity of Operating Lease Liabilities 2022 $ 8,743 2023 6,371 2024 4,723 2025 3,793 2026 2,396 2027 and thereafter 5,290 Total undiscounted cash flows for operating leases $ 31,316 Less: Imputed interest (3,693) Total operating lease liabilities $ 27,623 |
Supplemental information related to operating leases [Table Text Block] | The following table sets forth supplemental information related to operating leases: Fiscal Year Ended March 31, Fiscal Year Ended March 31, (in thousands, except lease term and incremental borrowing rate) 2021 2020 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of operating lease liabilities $ 12,855 $ 11,983 Right-of-use assets obtained in exchange for new operating leases 10,970 14,957 Weighted Average Remaining Lease Term (years) 5.57 5.61 Weighted Average Collateralized Incremental Borrowing Rate 4.05 % 4.10 % |
Derivatives And Hedging Activ_2
Derivatives And Hedging Activities (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amount of Forward Contracts | The aggregate U.S. dollar notional amount of forward and option contracts entered for these purposes during fiscal years 2021, 2020, and 2019 was as follows: Fiscal Year Ended March 31, (in millions) 2021 2020 2019 Tobacco purchases $ 101.3 $ 123.2 $ 76.9 Processing costs 27.8 35.1 19.8 Crop input sales 23.5 21.7 — Total $ 152.6 $ 180.0 $ 96.7 |
Effect Of Derivative Financial Instruments On The Consolidated Statements Of Income | The table below outlines the effects of the Company’s use of derivative financial instruments on the consolidated statements of income for the fiscal years ended March 31, 2021, 2020, and 2019. Fiscal Year Ended March 31, 2021 2020 2019 Cash Flow Hedges - Interest Rate Swap Agreements Derivative Effective Portion of Hedge Gain (loss) recorded in accumulated other comprehensive loss $ 3,033 $ (32,389) $ (7,496) Gain (loss) reclassified from accumulated other comprehensive loss into earnings $ (8,411) $ (1,577) $ 1,689 Gain on terminated interest rate swaps amortized from accumulated other comprehensive loss into earnings $ 1,416 $ 2,691 $ 260 Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings Interest expense Ineffective Portion of Hedge Gain (loss) recognized in earnings $ — $ — $ — Location of gain (loss) recognized in earnings Selling, general and administrative expenses Hedged Item Description of hedged item Floating rate interest payments on term loans Cash Flow Hedges - Forward Foreign Currency Exchange Contracts Derivative Effective Portion of Hedge Gain (loss) recorded in accumulated other comprehensive loss $ (272) $ (13,646) $ (2,623) Gain (loss) reclassified from accumulated other comprehensive loss into earnings $ (13,926) $ 1,108 $ (3,034) Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings Cost of goods sold Ineffective Portion and Early De-designation of Hedges Gain (loss) recognized in earnings $ — $ — $ — Location of gain (loss) recognized in earnings Selling, general and administrative expenses Hedged Item Description of hedged item Forecast purchases of tobacco in Derivatives Not Designated as Hedges - Gain (loss) recognized in earnings $ (872) $ (4,013) $ (4,671) Location of gain (loss) recognized in earnings Selling, general and administrative expenses |
Effect Of Derivative Financial Instruments On The Consolidated Balance Sheets | The table below outlines the effects of the Company’s derivative financial instruments on the consolidated balance sheets at March 31, 2021 and 2020: Derivatives in a Fair Value Derivatives in a Fair Value Balance Fair Value as of March 31, Balance Fair Value as of March 31, 2021 2020 2021 2020 Derivatives Designated as Hedging Instruments Interest rate swap agreements Other $ — $ — Other $ 25,719 $ 37,163 Forward foreign currency exchange contracts Other 1,137 — Accounts 1,031 11,467 Total $ 1,137 $ — $ 26,750 $ 48,630 Derivatives Not Designated as Hedging Instruments Forward foreign currency exchange contracts Other $ 435 $ 314 Accounts $ 791 $ 4,375 Total $ 435 $ 314 $ 791 $ 4,375 Substantially all of the Company's forward foreign currency exchange contracts are subject to master netting arrangements, whereby the right to offset occurs in the event of default by a participating party. The Company has elected to present these contracts on a gross basis in the consolidated balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | At March 31, 2021 and 2020, the Company had certain financial assets and financial liabilities that were required to be measured and reported at fair value on a recurring basis. These assets and liabilities are listed in the tables below and are classified based on how their values were determined under the fair value hierarchy or the NAV practical expedient: March 31, 2021 Fair Value Hierarchy NAV Level 1 Level 2 Level 3 Total Assets Money market funds $ 1,992 $ — $ — $ — $ 1,992 Trading securities associated with deferred compensation plans — 15,735 — — 15,735 Forward foreign currency exchange contracts — — 1,572 — 1,572 Total financial assets measured and reported at fair value $ 1,992 $ 15,735 $ 1,572 $ — $ 19,299 Liabilities Acquisition-related contingent consideration obligations - long-term $ — $ — $ — $ 2,532 $ 2,532 Interest rate swap agreements — — 25,719 — 25,719 Forward foreign currency exchange contracts — — 1,822 — 1,822 Total financial liabilities measured and reported at fair value $ — $ — $ 27,541 $ 2,532 $ 30,073 March 31, 2020 Fair Value Hierarchy NAV Level 1 Level 2 Level 3 Total Assets Money market funds $ 4,011 $ — $ — $ — $ 4,011 Trading securities associated with deferred compensation plans — 12,635 — — 12,635 Forward foreign currency exchange contracts — — 314 — 314 Total financial assets measured and reported at fair value $ 4,011 $ 12,635 $ 314 $ — $ 16,960 Liabilities Guarantees of bank loans to tobacco growers $ — $ — $ — $ 103 $ 103 Acquisition-related contingent consideration obligations - short-term — — — 4,173 $ 4,173 Acquisition-related contingent consideration obligations - long-term — — — 2,532 $ 2,532 Interest rate swap agreements — — 37,163 — 37,163 Forward foreign currency exchange contracts — — 15,842 — 15,842 Total financial liabilities measured and reported at fair value $ — $ — $ 53,005 $ 6,808 $ 59,813 |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | A reconciliation of the change in the balance of the acquisition-related contingent consideration obligation (Level 3) for the fiscal years ended March 31, 2021 and 2020 is provided below. Fiscal Year Ended March 31, 2021 2020 Balance beginning of year $ 6,705 $ — Additions — 6,705 Change in fair value of contingent consideration liability (4,173) — Balance at end of year $ 2,532 $ 6,705 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | A reconciliation of the change in the balance of the financial liability for guarantees of bank loans to tobacco growers (Level 3) for the fiscal years ended March 31, 2021 and 2020 is provided below. Fiscal Year Ended March 31, 2021 2020 Balance at beginning of year $ 103 $ 803 Payments under the guarantees and transfers to allowance for loss on direct loans to farmers (removal of prior crop year loans from the portfolio) (96) (659) Provision for loss or transfers from allowance for loss on direct loans to farmers (addition of current crop year loans) — (5) Change in discount rate and estimated collection period (2) (7) Currency remeasurement (5) (29) Balance at end of year $ — $ 103 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table summarizes the fair and carrying value of the Company’s long-term debt, including the current portion at each of the balance sheet dates March 31, 2021 and 2020: Fiscal Year Ended March 31, (in millions of dollars) 2021 2020 Fair market value of long term obligations $ 517 $ 370 Carrying value of long term obligations $ 520 $ 370 |
Pension And Other Postretirem_2
Pension And Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Assumptions Used To Compute Net Periodic Benefit Cost And Benefit Obligations | Assumptions used for financial reporting purposes to compute net periodic benefit cost and benefit obligations for the Company's primary defined benefit plans were as follows: Pension Benefits Other Postretirement Benefits 2021 2020 2019 2021 2020 2019 Discount rates: Benefit cost for plan year 3.60 % 4.00 % 4.10 % 3.40 % 3.80 % 3.90 % Benefit obligation at end of plan year 3.30 % 3.60 % 4.00 % 2.90 % 3.40 % 3.80 % Expected long-term return on plan assets: Benefit cost for plan year 6.00 % 6.75 % 6.75 % 3.00 % 3.00 % 3.00 % Salary scale: Benefit cost for plan year 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % Benefit obligation at end of plan year 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % Healthcare cost trend rate N/A N/A N/A 6.17 % 7.34 % 7.60 % |
Benefit Obligations, Plan Assets, And Funded Status | The following table reflects the changes in benefit obligations and plan assets in fiscal years 2021 and 2020, as well as the funded status of the plans at March 31, 2021 and 2020: Pension Other Postretirement Benefits March 31, March 31, 2021 2020 2021 2020 Actuarial present value of benefit obligation: Accumulated benefit obligation $ 289,901 $ 281,242 Projected benefit obligation 297,090 287,082 $ 28,926 $ 30,282 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 287,082 $ 278,189 $ 30,282 $ 31,635 Service cost 6,618 5,990 172 199 Interest cost 9,571 10,747 1,141 1,306 Effect of discount rate change 12,990 14,479 1,126 1,326 Foreign currency exchange rate changes 776 (1,477) (283) (1,012) Settlements — (6,038) — — Other (3,626) 1,029 167 (744) Benefit payments (16,321) (15,837) (3,679) (2,428) Projected benefit obligation, end of year $ 297,090 $ 287,082 $ 28,926 $ 30,282 Change in plan assets: Plan assets at fair value, beginning of year $ 238,450 $ 244,969 $ 3,369 $ 3,717 Actual return on plan assets 39,757 10,551 114 152 Employer contributions 8,472 6,037 3,229 1,928 Settlements — (6,038) — — Foreign currency exchange rate changes (9) (1,232) — — Benefit payments (16,321) (15,837) (3,679) (2,428) Plan assets at fair value, end of year $ 270,349 $ 238,450 $ 3,033 $ 3,369 Funded status: Funded status of the plans, end of year $ (26,741) $ (48,632) $ (25,893) $ (26,913) |
Funded Status In Consolidated Balance Sheets | The funded status of the Company’s plans at the end of fiscal years 2021 and 2020 was reported in the consolidated balance sheets as follows: Pension Other Postretirement Benefits March 31, March 31, 2021 2020 2021 2020 Noncurrent assets (included in Pension asset and other noncurrent assets) $ 11,950 $ 346 $ — $ — Current liability (included in Accounts payable and accrued expenses) (4,896) (2,978) (2,051) (2,233) Noncurrent liability (reported as pensions and other postretirement benefits) (33,795) (46,000) (23,842) (24,680) Amounts recognized in the consolidated balance sheets $ (26,741) $ (48,632) $ (25,893) $ (26,913) |
Additional Information On Funded Status | Additional information on the funded status of the Company’s plans as of the respective measurement dates for the fiscal years ended March 31, 2021 and 2020, is as follows: Pension Other Postretirement Benefits March 31, March 31, 2021 2020 2021 2020 For plans with a projected benefit obligation in excess of plan assets: Aggregate projected benefit obligation (PBO) $ 44,742 $ 284,327 $ 28,926 $ 30,282 Aggregate fair value of plan assets 6,051 235,349 3,033 3,369 For plans with an accumulated benefit obligation in excess of plan assets: Aggregate accumulated benefit obligation (ABO) 42,923 278,515 N/A N/A Aggregate fair value of plan assets 6,051 235,349 N/A N/A |
Components Of Company's Net Periodic Benefit Cost | The components of the Company’s net periodic benefit cost were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2021 2020 2019 2021 2020 2019 Components of net periodic benefit cost: Service cost $ 6,618 $ 5,990 $ 6,008 $ 172 $ 199 $ 222 Interest cost 9,571 10,747 10,810 1,141 1,306 1,371 Expected return on plan assets (14,448) (16,671) (15,695) (96) (106) (99) Settlement cost — 676 — — — — Net amortization and deferral 4,863 3,709 3,491 (591) (647) (710) Net periodic benefit cost $ 6,604 $ 4,451 $ 4,614 $ 626 $ 752 $ 784 |
Recognized In Accumulated Other Comprehensive Income (Loss) On Pretax Basis | The amounts recognized in other comprehensive income or loss for fiscal years 2021 and 2020 and the amounts included in accumulated other comprehensive loss at the end of those fiscal years are shown below. All amounts shown are before allocated income taxes. Pension Other Postretirement Benefits March 31, March 31, 2021 2020 2021 2020 Change in net actuarial loss (gain): Net actuarial loss (gain), beginning of year $ 97,025 $ 81,502 $ (5,365) $ (6,201) Losses (gains) arising during the year (17,563) 21,838 520 302 Settlement — (529) — — Amortization included in net periodic benefit cost during the year (6,857) (5,786) 450 534 Net actuarial loss (gain), end of year 72,605 97,025 (4,395) (5,365) Change in prior service cost (benefit): Prior service cost (benefit), beginning of year (5,402) (7,479) (564) (766) Amortization included in net periodic benefit cost during the year 1,996 2,077 188 202 Prior service cost (benefit), end of year (3,406) (5,402) (376) (564) Total amounts in accumulated other comprehensive loss at end of year, before income taxes $ 69,199 $ 91,623 $ (4,771) $ (5,929) |
Weighted-Average Target Pension Asset Allocation And Target Ranges By Major Asset Category | The weighted–average target pension asset allocation and target ranges at the March 31, 2021 measurement date and the actual asset allocations at the March 31, 2021 and 2020 measurement dates by major asset category were as follows: Actual Allocation Target Allocation March 31, Major Asset Category Range 2021 2020 Equity securities 29.0 % 19 % - 39% 32.0 % 25.4 % Fixed income securities (1) 66.0 % 56 % - 76% 64.1 % 70.3 % Alternative investments 5.0 % 0 % - 10% 3.9 % 4.3 % Total 100.0 % 100.0 % 100.0 % |
Expected Future Benefit Payments | Estimated future benefit payments to be made from the Company’s plans are as follows: Fiscal Year Pension Other 2022 $ 19,611 $ 2,484 2023 18,777 2,375 2024 18,656 2,265 2025 17,979 2,173 2026 22,893 2,047 2027 - 2031 84,154 8,882 |
Fair Values Of The Assets Under Fair Value Hierarchy | Fair values of the assets of the Company’s pension plans as of March 31, 2021 and 2020, classified based on how their values were determined under the fair value hierarchy are as follows: March 31, 2021 Level 1 Level 2 Level 3 Total Equity securities $ 83,135 $ — $ — $ 83,135 Fixed income securities (1) 168,201 2,920 6,051 177,172 Alternative investments — — 10,042 10,042 Total investments $ 251,336 $ 2,920 $ 16,093 $ 270,349 March 31, 2020 Level 1 Level 2 Level 3 Total Equity securities $ 58,204 $ — $ — $ 58,204 Fixed income securities (1) 162,667 3,101 4,668 170,436 Alternative investments — — 9,810 9,810 Total investments $ 220,871 $ 3,101 $ 14,478 $ 238,450 |
Common And Preferred Stock Comm
Common And Preferred Stock Common and Preferred Stock (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Schedule of Repurchases of Shares [Abstract] | |
Schedule Of Repurchases Of Shares [Table Text Block] | Repurchases of common stock under the programs for fiscal years 2021, 2020, and 2019 were as follows: Fiscal Year Ended March 31, 2021 2020 2019 Number of shares repurchased — 656,820 30,777 Cost of shares repurchased (in thousands of dollars) $ — $ 33,457 $ 1,443 Weighted-average cost per share $ — $ 50.94 $ 46.87 |
Executive Stock Plans And Sto_2
Executive Stock Plans And Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary Of RSU, Restricted Stock, And PSA Activity | The following table summarizes the Company’s RSU, restricted stock, and PSU activity for fiscal years 2019 through 2021: RSUs Restricted Stock PSUs Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Fiscal Year Ended March 31, 2019: Unvested at beginning of year 336,919 $ 55.77 30,200 $ 42.37 151,000 $ 50.50 Granted 87,621 64.53 — — 54,800 57.12 Vested (99,549) 59.09 (8,950) 44.25 (49,092) 45.06 Forfeited — — — — (9,834) 45.55 Unvested at end of year 324,991 57.12 21,250 42.37 146,874 55.12 Fiscal Year Ended March 31, 2020: Granted 85,463 56.39 — — 60,728 50.16 Vested (74,518) 54.20 — — (67,402) 49.17 Forfeited — — — — — — Unvested at end of year 335,936 57.89 21,250 41.58 140,200 55.73 Fiscal Year Ended March 31, 2021: Granted 103,829 46.27 — — 65,135 34.33 Vested (97,297) 54.11 (9,650) 41.24 (40,410) 60.37 Forfeited — — — — (3,778) 57.83 Unvested at end of year 342,468 $ 55.44 11,600 $ 41.86 161,147 $ 46.20 |
Stock-Based Compensation Expense And Related Income Tax Benefit Recognized | For the fiscal years ended March 31, 2021, 2020, and 2019, total stock-based compensation expense and the related income tax benefit recognized were as follows: Fiscal Year Ended March 31, 2021 2020 2019 Total stock-based compensation expense $ 6,106 $ 5,631 $ 8,152 Income tax benefit recorded on stock-based compensation expense $ 1,282 $ 1,182 $ 1,712 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Operating Results For The Company's Reportable Segments | Reportable segment data as of, or for, the fiscal years ended March 31, 2021, 2020, and 2019, is as follows, including a recast of the new reportable operating segments presentation for all periods: Sales and Other Operating Revenues Operating Income Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2021 2020 2019 2021 2020 2019 Tobacco Operations $ 1,841,837 $ 1,887,084 $ 2,222,246 $ 168,832 $ 146,637 $ 195,383 Ingredients Operations 141,520 22,895 4,907 367 (8,516) (8,611) Subtotal 1,983,357 1,909,979 2,227,153 169,199 138,121 186,772 Deduct: Equity in pretax earnings of unconsolidated affiliates (1) (2,985) (4,211) (5,299) Restructuring and impairment costs (2) (22,577) (7,543) (20,304) Add: Other income (3) 4,173 — — Consolidated total $ 1,983,357 $ 1,909,979 $ 2,227,153 $ 147,810 $ 126,367 $ 161,169 Segment Assets Accounts Receivable, net March 31, March 31, 2021 2020 2019 2021 2020 2019 Tobacco Operations $ 2,002,059 $ 1,985,732 $ 2,108,641 $ 336,876 $ 330,367 $ 367,579 Ingredients Operations 339,865 135,189 24,543 30,606 10,344 531 Consolidated total $ 2,341,924 $ 2,120,921 $ 2,133,184 $ 367,482 $ 340,711 $ 368,110 Goodwill, net Intangibles, net March 31, Fiscal Year Ended March 31, 2021 2020 2019 2021 2020 2019 Tobacco Operations $ 98,044 $ 97,963 $ 97,907 $ 82 $ 59 $ 87 Ingredients Operations 75,007 28,863 — 72,222 17,802 — Consolidated total $ 173,051 $ 126,826 $ 97,907 $ 72,304 $ 17,861 $ 87 Capital Expenditures Depreciation and Amortization Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2021 2020 2019 2021 2020 2019 Tobacco Operations $ 46,037 $ 35,175 $ 38,206 $ 33,895 $ 35,251 $ 35,449 Ingredients Operations 20,117 52 554 10,838 3,128 1,655 Consolidated total $ 66,154 $ 35,227 $ 38,760 $ 44,733 $ 38,379 $ 37,104 (1) Equity in pretax earnings of unconsolidated affiliates is included in reportable segment operating income, but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. (2) Restructuring and impairment costs are excluded from reportable segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 4). (3) Other income represents the reversal of a portion of the contingent consideration liability associated with the acquisition of FruitSmart. See Note 2 for additional information. |
Schedule Of Sales And Long-Lived Assets By Country | Geographic Data Sales and Other Operating Revenues Fiscal Year Ended March 31, 2021 2020 2019 United States $ 369,074 $ 221,428 $ 227,771 Belgium 366,476 361,889 390,433 Poland 97,001 84,011 145,478 Germany 94,519 104,525 166,397 Philippines 94,493 68,143 69,820 China 52,837 105,683 115,174 Mexico 51,448 35,475 64,700 All other countries 857,509 928,825 1,047,380 Consolidated total $ 1,983,357 $ 1,909,979 $ 2,227,153 Long-Lived Assets March 31, 2021 2020 2019 United States $ 266,258 $ 145,764 $ 81,270 Brazil 134,909 138,157 139,624 Mozambique 44,206 42,964 45,051 All other countries 149,492 132,955 134,543 Consolidated total $ 594,865 $ 459,840 $ 400,488 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the balances for each component of accumulated other comprehensive income (loss) attributable to the Company for the fiscal years ended March 31, 2021, 2020, and 2019: Fiscal Year Ended March 31, (in thousands of dollars) 2021 2020 2019 Foreign currency translation: Balance at beginning of year $ (42,923) $ (40,101) $ (23,942) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on foreign currency translation (net of tax (expense) benefit of $180 in 2020) 8,272 (3,066) (16,316) Less: Net loss on foreign currency translation attributable to noncontrolling interests (484) 244 157 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes 7,788 (2,822) (16,159) Balance at end of year $ (35,135) $ (42,923) $ (40,101) Foreign currency hedge: Balance at beginning of year $ (12,226) $ (376) $ (35) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on derivative instruments (net of tax (expense) benefit of $(130), $2,880 and $602) 1,791 (12,391) (6,490) Reclassification of net (gain) loss to earnings (net of tax expense (benefit) of $(2,726), $136, and $(640)) (1) 10,021 541 6,149 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes 11,812 (11,850) (341) Balance at end of year $ (414) $ (12,226) $ (376) Interest rate hedge: Balance at beginning of year $ (27,402) $ (934) $ 6,528 Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on derivative instruments (net of tax (expense) benefit of $(637), $6,801, and $1,574) 2,396 (25,588) (5,922) Reclassification of net (gain) loss to earnings (net of tax expense (benefit) of $(1,469), $234, and $409) (2) 5,526 (880) (1,540) Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes 7,922 (26,468) (7,462) Balance at end of year $ (19,480) $ (27,402) $ (934) Pension and other postretirement benefit plans: Balance at beginning of year $ (69,046) $ (54,280) $ (42,615) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) arising during the year (net of tax (expense) benefit of $(3,706), $4,715, and $4,073 (3) 13,627 (16,810) (13,927) Amortization included in earnings (net of tax benefit of $895, $554, and $628) (4) 3,411 2,044 2,262 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes 17,038 (14,766) (11,665) Balance at end of year $ (52,008) $ (69,046) $ (54,280) Total accumulated other comprehensive income (loss) at end of year $ (107,037) $ (151,597) $ (95,691) (1) Gains (losses) on foreign currency cash flow hedges related to forecast purchases of tobacco and crop input sales are reclassified from accumulated other comprehensive income (loss) to cost of goods sold when the tobacco is sold to customers. See Note 11 for additional information. (2) Gain (loss) on interest rate cash flow hedges is reclassified from accumulated other comprehensive income (loss) to interest expense when the related interest payments are made on the debt for open interest rate swap agreements, or as amortized to interest expense over the period to original maturity for terminated swap agreements. See Note 11 for additional information. (3) These items arise from the remeasurement of the assets and liabilities of the Company's defined benefit pension and other postretirement benefit plans. Those remeasurements are made on an annual basis at the end of the fiscal year. See Note 13 for additional information. (4) This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost. See Note 13 for additional information. |
Nature Of Operations And Sign_4
Nature Of Operations And Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | ||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Number of countries in which entity operates | 30 | |||
Dividends received on equity method investments | [1] | $ 2,869,000 | $ 3,922,000 | $ 7,517,000 |
Advances to suppliers, current and non-current | 144,000,000 | 153,000,000 | ||
Valuation allowance amount related to advances to suppliers | 18,000,000 | 16,000,000 | ||
Provision (recoveries) for loss on uncollectible advances to suppliers | 5,500,000 | 1,000,000 | (2,300,000) | |
Advances to suppliers on which interest has been discontinued | 4,000,000 | 5,000,000 | ||
Aggregate balance of recoverable value added tax credits | 49,000,000 | 52,000,000 | ||
Valuation allowance on recoverable value added tax credits | 19,000,000 | 19,000,000 | ||
Interest costs capitalized | 0 | |||
Foreign currency remeasurement gain (loss) | (8,500,000) | 16,400,000 | 1,800,000 | |
Foreign currency transaction gain (loss) | $ (1,400,000) | 2,900,000 | $ 4,300,000 | |
Percentage of revenue earned from processing tobacco owned by customers | 5.00% | |||
Adoption of FASB Accounting Standards Update | $ (1,900,000) | |||
Operating lease right-of-use assets | 31,230,000 | 39,256,000 | ||
Operating Lease, Liability | 27,623,000 | $ 35,716,000 | ||
Accounting Standards Update 2016-02 [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Operating lease right-of-use assets | 36,600,000 | |||
Operating Lease, Liability | 34,200,000 | |||
Zimbabwe [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Investment in deconsolidated subsidiary | 0 | |||
Net foreign currency translation loss | $ 7,200,000 | |||
Minimum [Member] | Buildings [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 15 years | |||
Minimum [Member] | Processing And Packing Machinery [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Minimum [Member] | Transport Equipment [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Minimum [Member] | Computer Equipment [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Maximum [Member] | Buildings [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 40 years | |||
Maximum [Member] | Processing And Packing Machinery [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 11 years | |||
Maximum [Member] | Transport Equipment [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 10 years | |||
Maximum [Member] | Computer Equipment [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 12 years | |||
[1] | In accordance with the applicable accounting guidance, dividends received from unconsolidated affiliates accounted for on the equity method that represent a return on capital (i.e., a return of earnings on a cumulative basis) are presented as operating cash flows in the consolidated statements of cash flows. |
Nature Of Operations And Sign_5
Nature Of Operations And Significant Accounting Policies (Reconciliation Of Equity In Unconsolidated Affiliates) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Accounting Policies [Abstract] | ||||
Equity in pretax earnings reported in the consolidated statements of income | [1] | $ 2,985 | $ 4,211 | $ 5,299 |
Less: Equity in income taxes | 180 | (1,390) | (1,441) | |
Equity in net income | 3,165 | 2,821 | 3,858 | |
Less: Dividends received on investments | [2] | 2,869 | 3,922 | 7,517 |
Equity in net income, net of dividends, reported in the consolidated statements of cash flows | $ 296 | $ (1,101) | $ (3,659) | |
[1] | Equity in pretax earnings of unconsolidated affiliates is included in reportable segment operating income, but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. | |||
[2] | In accordance with the applicable accounting guidance, dividends received from unconsolidated affiliates accounted for on the equity method that represent a return on capital (i.e., a return of earnings on a cumulative basis) are presented as operating cash flows in the consolidated statements of cash flows. |
Business Combinations Busines_2
Business Combinations Business Combinations (Narrative) (Details) - USD ($) $ in Thousands | Oct. 01, 2020 | Jan. 01, 2020 | Sep. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Business Acquisition [Line Items] | |||||||
Purchase of business, net of cash held by the business | $ 161,751 | $ 80,180 | $ 0 | ||||
Restricted cash (Other noncurrent assets) | 6,000 | 0 | 0 | ||||
Other income | [1] | 4,173 | $ 0 | $ 0 | |||
Silva, International | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition percentage of capital stock acquired | 100.00% | ||||||
Purchase of business, net of cash held by the business | $ 164,000 | ||||||
Working capital adjustments | $ 5,900 | ||||||
Restricted cash (Other noncurrent assets) | 6,000 | ||||||
Business Combination, Acquisition Related Costs | 3,900 | ||||||
FruitSmart, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition percentage of capital stock acquired | 100.00% | ||||||
Purchase of business, net of cash held by the business | $ 80,000 | ||||||
Working capital adjustments | 3,800 | ||||||
Business Combination, Acquisition Related Costs | $ 4,700 | ||||||
Contingent consideration payments | 25,000 | ||||||
Other income | $ 4,200 | ||||||
Fair value contingent consideration liability | $ 6,700 | ||||||
[1] | Other income represents the reversal of a portion of the contingent consideration liability associated with the acquisition of FruitSmart. See Note 2 for additional information. |
Business Combinations Busines_3
Business Combinations Business Combinations Assets Acquired and Liabilities Assumed (Table) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Oct. 01, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill, net | $ 173,051 | $ 126,826 | $ 97,907 | ||
Silva, International | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 8,126 | ||||
Accounts receivable | 17,885 | ||||
Advances to suppliers, net | 3,011 | ||||
Inventory | 33,162 | ||||
Other current assets | 833 | ||||
Property, plant and equipment | 24,437 | ||||
Customer relationships | 53,000 | ||||
Developed technology | 0 | ||||
Trade names | 7,800 | ||||
Noncompetition agreements | 0 | ||||
Goodwill, net | 46,144 | ||||
Total assets acquired | 194,398 | ||||
Accounts payable and accrued expenses | 11,683 | ||||
Accrued compensation | 3,350 | ||||
Current liabilities | 946 | ||||
Deferred income taxes | 14,419 | ||||
Total liabilities assumed | 30,398 | ||||
Total assets acquired and liabilities assumed | $ 164,000 | ||||
FruitSmart, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 1,298 | ||||
Accounts receivable | 7,707 | ||||
Advances to suppliers, net | 0 | ||||
Inventory | 23,793 | ||||
Other current assets | 310 | ||||
Property, plant and equipment | 23,400 | ||||
Customer relationships | 9,500 | ||||
Developed technology | 4,800 | ||||
Trade names | 3,300 | ||||
Noncompetition agreements | 1,000 | ||||
Goodwill, net | 28,863 | ||||
Total assets acquired | 103,971 | ||||
Accounts payable and accrued expenses | 7,592 | ||||
Accrued compensation | 670 | ||||
Current liabilities | 0 | ||||
Deferred income taxes | 9,004 | ||||
Total liabilities assumed | 17,266 | ||||
Total assets acquired and liabilities assumed | $ 86,705 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Revenue from Contract with Customers (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Five largest customers [Member] | |||
Revenues | $ 0.70 | ||
Philip Morris International Inc [Member] | |||
Revenues | 460,000,000 | $ 500,000,000 | $ 650,000,000 |
Imperial Tobacco Group Plc [Member] | |||
Revenues | 340,000,000 | 320,000,000 | 360,000,000 |
British American Tobacco Plc [Member] | |||
Revenues | $ 210,000,000 | $ 190,000,000 | $ 270,000,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Revenue from Contract with Customer (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,965,463 | $ 1,891,877 | $ 2,213,126 |
Sales and other operating revenues | 1,983,357 | 1,909,979 | 2,227,153 |
Manufactured Product, Other | Tobacco Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,715,066 | 1,759,769 | 2,085,001 |
Manufactured Product, Other | Food Ingredient Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 127,393 | 22,014 | 4,769 |
Service, Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 73,021 | 76,123 | 85,426 |
Product and Service, Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 49,983 | 33,971 | 37,930 |
Other sales and revenue [Member] [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other operating revenues | $ 17,894 | $ 18,102 | $ 14,027 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill Impairment | $ 0 | $ 0 | $ 889 | |
Restructuring and impairment costs | 22,577 | 7,543 | 20,304 | |
Restructuring and impairment costs | [1] | 22,577 | 7,543 | 20,304 |
Tobacco Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | 6,500 | 7,500 | ||
Ingredients | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | 600 | |||
Impairment of Long-Lived Assets Held-for-use | 16,100 | |||
Africa | Tobacco Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | 1,800 | |||
Impairment of Long-Lived Assets Held-for-use | 2,200 | |||
Restructuring and impairment costs | 4,400 | |||
NORTH CAROLINA | Tobacco Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | $ 3,400 | |||
Non-US [Member] | Tobacco Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | 1,200 | |||
Restructuring and impairment costs | 900 | |||
Tanzania | Tobacco Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | 4,000 | |||
Impairment of Long-Lived Assets Held-for-use | 14,600 | |||
Goodwill Impairment | $ 900 | |||
Business Exit Costs | $ 900 | |||
[1] | Restructuring and impairment costs are excluded from reportable segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 4) |
Restructuring Costs (Cumulative
Restructuring Costs (Cumulative Restructuring Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 8,705 | $ 5,356 | $ 4,831 | |
Goodwill Impairment | 0 | 0 | 889 | |
Asset impairment charges | 13,872 | 2,187 | 15,473 | |
Restructuring and impairment costs | [1] | 22,577 | 7,543 | 20,304 |
Employee Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | 5,237 | 5,356 | 4,608 | |
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 3,468 | 0 | 223 | |
Farmer loans and property and equipment | $ 13,872 | $ 2,187 | $ 14,584 | |
[1] | Restructuring and impairment costs are excluded from reportable segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 4) |
Restructuring Costs (Reconcilia
Restructuring Costs (Reconciliation Of Company's Liability For The Restructuring Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 8,705 | $ 5,356 | $ 4,831 | |
Payments and write-offs for restructuring | 10,137 | 2,787 | 4,014 | |
Balance | 1,983 | 3,415 | 846 | $ 29 |
Employee Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | 5,237 | 5,356 | 4,608 | |
Payments and write-offs for restructuring | 7,282 | 2,564 | 4,014 | |
Balance | 1,370 | 3,415 | 623 | 29 |
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 3,468 | 0 | 223 | |
Payments and write-offs for restructuring | 2,855 | 223 | 0 | |
Balance | $ 613 | $ 0 | $ 223 | $ 0 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic And Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator for basic earnings per share | |||
Net income attributable to Universal Corporation | $ 87,410 | $ 71,680 | $ 104,121 |
Denominator for basic earnings per share | |||
Weighted average shares outstanding | 24,656,009 | 24,982,259 | 25,129,192 |
Basic earnings per share | $ 3.55 | $ 2.87 | $ 4.14 |
Numerator for diluted earnings per share | |||
Net income attributable to Universal Corporation | $ 87,410 | $ 71,680 | $ 104,121 |
Denominator for diluted earnings per share: | |||
Weighted average shares outstanding | 24,656,009 | 24,982,259 | 25,129,192 |
Effect of dilutive securities (if conversion or exercise assumed) Employee share-based awards | 132,557 | 124,092 | 201,245 |
Denominator for diluted earnings per share | 24,788,566 | 25,106,351 | 25,330,437 |
Diluted earnings per share | $ 3.53 | $ 2.86 | $ 4.11 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% |
Deferred tax liabilities on repatriated earnings | $ 0 | ||
Transfer pricing matter tax resolution additional tax expense | $ 0 | $ 4,369 | $ 2,169 |
Effective Income Tax Rate Reconciliation, Percent | 23.40% | 31.10% | 27.20% |
Effective Income Tax Rate Reconciliation, Tax Holiday, Amount | $ 7,800 | ||
Reversal of dividend withholding tax due to foreign subsidiary tax holiday | 0.00% | 0.00% | (5.10%) |
Net operating loss carryforwards | $ 0 | ||
Unrecognized tax benefits that would impact effective tax rate | 2,400 | ||
Liability where a significant change in unrecognized tax benefits is reasonably possible | 100 | ||
Tax settlement | 0 | $ 8,948 | $ 0 |
Interest expense | 24,954 | 19,854 | $ 17,510 |
Tax benefit - Hybrid Dividend | |||
Income Tax [Line Items] | |||
Tax settlement | 4,400 | ||
Unresolved tax matter foreign jurisdiction | |||
Income Tax [Line Items] | |||
Interest expense | 1,800 | ||
GILTI Tax Election | |||
Income Tax [Line Items] | |||
Tax settlement | $ 2,700 | ||
Transfer pricing issue [Member] | |||
Income Tax [Line Items] | |||
Transfer pricing matter tax resolution additional tax expense | $ 2,800 | ||
Effective Income Tax Rate Reconciliation, Percent | 2.40% | ||
Tax settlement | $ 8,900 | ||
Accrued Income Taxes | $ 4,500 | ||
Minimum [Member] | State And Foreign Jurisdictions [Member] | |||
Income Tax [Line Items] | |||
Open tax years | 3 | ||
Maximum [Member] | State And Foreign Jurisdictions [Member] | |||
Income Tax [Line Items] | |||
Open tax years | 6 |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States, current | $ 9,500 | $ 2,001 | $ (2,639) |
State and local, current | 621 | 92 | 377 |
Foreign, current | 21,626 | 41,892 | 39,578 |
Total, current | 31,747 | 43,985 | 37,316 |
United States, deferred | (5,938) | 3,735 | 5,713 |
State and local, deferred | (314) | (16) | (4) |
Foreign, deferred | 3,917 | (12,416) | (1,837) |
Deferred income tax expense (benefit) | (2,335) | (8,697) | 3,872 |
Total | $ 29,412 | $ 35,288 | $ 41,188 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 0.20% | 0.10% | 0.20% |
Foreign earnings taxed at rates other than the U.S. federal statutory tax rate | (0.90%) | (2.00%) | 7.10% |
Foreign dividend withholding taxes | 5.30% | 5.10% | 3.70% |
Reversal of dividend withholding tax due to foreign subsidiary tax holiday | 0.00% | 0.00% | (5.10%) |
Changes in uncertain tax positions | 0.00% | 5.60% | 1.40% |
Other | (2.20%) | 1.30% | (1.10%) |
Effective income tax rate | 23.40% | 31.10% | 27.20% |
Income Taxes (Schedule Of U.S.
Income Taxes (Schedule Of U.S. And Foreign Components Of Income Before Income Taxes And Other Items) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 30,060 | $ 22,916 | $ 37,478 |
Foreign | 95,666 | 90,375 | 113,844 |
Total | $ 125,726 | $ 113,291 | $ 151,322 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Foreign withholding taxes | $ 21,711 | $ 19,870 |
Property, plant and equipment | 8,726 | 10,078 |
Undistributed earnings | 2,947 | 7,298 |
Operating lease right-of-use liabilities | 6,856 | 9,877 |
Goodwill and other intangible assets | 35,059 | 23,435 |
All other | 4,876 | 4,813 |
Total deferred tax liabilities | 80,175 | 75,371 |
Employee benefit plans | 17,199 | 22,773 |
Reserves and accruals | 7,603 | 7,708 |
Deferred income | 3,521 | 4,833 |
Operating lease right-of-use liabilities | 6,718 | 9,650 |
Currency translation losses of foreign subsidiaries | 2,173 | 2,173 |
Local currency exchange losses of foreign subsidiaries | 450 | 8,360 |
Interest rate swap | 5,178 | 7,284 |
All other | 8,568 | 7,464 |
Total deferred tax assets | 51,410 | 70,245 |
Valuation allowance | (4,080) | (3,394) |
Net deferred tax assets | $ 47,330 | $ 66,851 |
Income Taxes (Schedule Of Combi
Income Taxes (Schedule Of Combined Income Tax Expense (Benefit) Allocable To Continuing Operations, Other Comprehensive Income, And Adjustments To Shareholders' Equity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Continuing operations | $ 29,412 | $ 35,288 | $ 41,188 |
Other comprehensive loss | (9,563) | (14,392) | (5,390) |
Total | $ 19,849 | $ 20,896 | $ 35,798 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of the Gross Liability For Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Liability for uncertain tax positions, beginning of year | $ 2,377 | $ 5,625 | $ 3,673 |
Additions: Related to tax positions for the current year | 49 | 1,746 | 85 |
Additions: Related to tax positions for prior years | 0 | 4,369 | 2,169 |
Reductions: Due to lapses of statutes of limitations | (135) | (81) | (90) |
Tax Adjustments, Settlements, and Unusual Provisions | 0 | (8,948) | 0 |
Increase: Effect of currency rate movement | (334) | (212) | |
Reductions: Effect of currency rate movement | 146 | ||
Liability for uncertain tax positions, end of year | $ 2,437 | $ 2,377 | $ 5,625 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Thousands | Oct. 01, 2020 | Jan. 01, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill [Line Items] | ||||||
Purchase of business, net of cash held by the business | $ 161,751 | $ 80,180 | $ 0 | |||
Goodwill, Acquired During Period | [1],[2] | $ 46,144 | $ 28,863 | |||
FruitSmart, Inc. [Member] | ||||||
Goodwill [Line Items] | ||||||
Business acquisition percentage of capital stock acquired | 100.00% | |||||
Purchase of business, net of cash held by the business | $ 80,000 | |||||
Contingent consideration payments | 25,000 | |||||
Goodwill, Acquired During Period | 28,900 | |||||
Business combination finite-lived intangibles | $ 18,600 | |||||
Silva, International | ||||||
Goodwill [Line Items] | ||||||
Business acquisition percentage of capital stock acquired | 100.00% | |||||
Purchase of business, net of cash held by the business | $ 164,000 | |||||
Goodwill, Acquired During Period | 46,100 | |||||
Business combination finite-lived intangibles | 60,800 | |||||
Working capital adjustments | $ 5,900 | |||||
[1] | (1) On January 1, 2020 the Company acquired 100% of the capital stock of FruitSmart for approximately $80 million in cash and up to $25 million of contingent consideration payments. The FruitSmart acquisition resulted in $28.9 million of goodwill. See Note 2 for additional information. | |||||
[2] | (2) On October 1, 2020 the Company acquired 100% of the capital stock of Silva for approximately $164.0 million in cash and $5.9 million of working capital on-hand at the date of acquisition. The Silva acquisition resulted in $46.1 million of goodwill. See Note 2 for additional information. |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles Change in Goodwill Balance (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Balance at beginning of year | $ 126,826 | $ 97,907 | |
Goodwill, Acquired During Period | [1],[2] | 46,144 | 28,863 |
Foreign currency translation adjustment | 81 | 56 | |
Balance at end of year | $ 173,051 | $ 126,826 | |
[1] | (1) On January 1, 2020 the Company acquired 100% of the capital stock of FruitSmart for approximately $80 million in cash and up to $25 million of contingent consideration payments. The FruitSmart acquisition resulted in $28.9 million of goodwill. See Note 2 for additional information. | ||
[2] | (2) On October 1, 2020 the Company acquired 100% of the capital stock of Silva for approximately $164.0 million in cash and $5.9 million of working capital on-hand at the date of acquisition. The Silva acquisition resulted in $46.1 million of goodwill. See Note 2 for additional information. |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | $ 80,160 | $ 19,257 | |
Accumulated amortization | (7,856) | (1,396) | |
Net carrying value | 72,304 | 17,861 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | [1],[2] | 62,500 | 9,500 |
Accumulated amortization | [1],[2] | (3,323) | (183) |
Net carrying value | [1],[2] | $ 59,177 | 9,317 |
Customer Relationships [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 11 years | ||
Customer Relationships [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 13 years | ||
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 5 years | ||
Gross carrying value | [1],[2] | $ 11,100 | 3,300 |
Accumulated amortization | [1],[2] | (1,605) | (165) |
Net carrying value | [1],[2] | $ 9,495 | 3,135 |
Developed Technology Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 3 years | ||
Gross carrying value | [1] | $ 4,800 | 4,800 |
Accumulated amortization | [1] | (2,000) | (400) |
Net carrying value | [1] | $ 2,800 | 4,400 |
Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 5 years | ||
Gross carrying value | [1] | $ 1,000 | 1,000 |
Accumulated amortization | [1] | (250) | (50) |
Net carrying value | [1] | $ 750 | 950 |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 5 years | ||
Gross carrying value | $ 760 | 657 | |
Accumulated amortization | (678) | (598) | |
Net carrying value | $ 82 | $ 59 | |
[1] | The FruitSmart acquisition resulted in $18.6 million of intangibles. See Note 2 for additional information. | ||
[2] | The Silva acquisition resulted in $60.8 million of intangibles. See Note 2 for additional information. |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 6,424 | $ 832 |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles Future Amortization Expense (Table) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 9,608 | |
2023 | 9,212 | |
2024 | 7,969 | |
2025 | 8,534 | |
2026 and thereafter | 36,981 | |
Total expected future amortization expense | $ 72,304 | $ 17,861 |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Term loan | $ 150,000 | |
Five-year revolving credit facility | $ 430,000 | |
Revolving credit facility, term | 5 years | |
Amounts outstanding under line of credit facility | $ 0 | |
Additional borrowings under present credit agreement | 200,000 | |
Outstanding uncommitted lines of credit | $ 101,294 | $ 78,033 |
Weighted average interest rates on short-term borrowings outstanding | 4.20% | |
Repayments of Lines of Credit | $ 150,000 | |
Prime Rate Or One Month Libor [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
Federal funds rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Uncommitted lines of credit [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding uncommitted lines of credit | $ 101,000 | $ 78,000 |
Unused lines of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding uncommitted lines of credit | 172,000 | |
Five-year term [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | $ 150,000 | |
Number of Years of Bank Credit Agreement | 5 years | |
Seven-year term [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | $ 220,000 | |
Number of Years of Bank Credit Agreement | 7 years |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Term loan | $ 150,000 |
Derivative, Fair Value, Net | 5,400 |
Repayments of Lines of Credit | 150,000 |
Interest Rate Swap [Member] | Cash Flow Hedges [Member] | |
Debt Instrument [Line Items] | |
Derivative, Fair Value, Net | $ 1,100 |
Five-year term [Member] | |
Debt Instrument [Line Items] | |
Number of Years of Bank Credit Agreement | 5 years |
Term loan | $ 150,000 |
Debt Instrument, Interest Rate, Effective Percentage | 3.94% |
Debt, Weighted Average Interest Rate | 3.72% |
Seven-year term [Member] | |
Debt Instrument [Line Items] | |
Number of Years of Bank Credit Agreement | 7 years |
Term loan | $ 220,000 |
Debt Instrument, Interest Rate, Effective Percentage | 4.26% |
Debt, Weighted Average Interest Rate | 4.09% |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||
Senior bank term loans | $ 520,000 | $ 370,000 |
Less: current portion | 0 | 0 |
Less: unamortized debt issuance costs | (1,828) | (1,236) |
Long-term debt | $ 518,172 | $ 368,764 |
Leases of Lessees (Narrative) (
Leases of Lessees (Narrative) (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Operating Lease, Expense | $ 17.3 |
Leases Supplemental balance she
Leases Supplemental balance sheet information related to leases (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Operating lease right-of-use assets | $ 31,230 | $ 39,256 |
Current portion of operating lease liabilities | 7,898 | 9,823 |
Long-term operating lease liabilities | 19,725 | 25,893 |
Operating Lease, Liability | $ 27,623 | $ 35,716 |
Leases Supplemental income stat
Leases Supplemental income statement information related to leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Lease, Cost | $ 22,311 | $ 19,528 |
Cost of goods sold [Member] | ||
Operating Lease, Cost | 12,903 | 10,954 |
Selling, General and Administrative Expenses [Member] | ||
Operating Lease, Cost | $ 9,408 | $ 8,574 |
Leases Maturities of operating
Leases Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
2022 | $ 8,743 | |
2023 | 6,371 | |
2024 | 4,723 | |
2025 | 3,793 | |
2026 | 2,396 | |
2027 and thereafter | 5,290 | |
Total undiscounted cash flows for operating leases | 31,316 | |
Less: Imputed interest | (3,693) | |
Operating Lease, Liability | $ 27,623 | $ 35,716 |
Leases Supplemental information
Leases Supplemental information related to leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 12,855 | $ 11,983 |
Right-of-use assets obtained in exchange for new operating leases | $ 10,970 | $ 14,957 |
Weighted Average Remaining Lease Term (years) | 5 years 6 months 25 days | 5 years 7 months 9 days |
Weighted Average Collateralized Incremental Borrowing Rate | 4.05% | 4.10% |
Derivatives And Hedging Activ_3
Derivatives And Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative [Line Items] | ||
Term loan | $ 150,000 | |
Repayments of Lines of Credit | 150,000 | |
Derivative, Fair Value, Net | 5,400 | |
Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 16,600 | $ 8,900 |
Cash Flow Hedges [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 370,000 | |
Derivative, Fair Value, Net | 1,100 | |
Derivative, Gain (Loss) on Derivative, Net | 1,100 | |
Cash Flow Hedges [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Unrealized Loss on Foreign Currency Derivatives, before Tax | $ (800) |
Derivatives And Hedging Activ_4
Derivatives And Hedging Activities Notional Amount of Forward Contracts (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 152.6 | $ 180 | $ 96.7 |
Tobacco purchases [Member] | Derivatives Designated As Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 101.3 | 123.2 | 76.9 |
Processing costs [Member] | Derivatives Not Designated As Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 27.8 | 35.1 | 19.8 |
Crop input sales [Member] | Derivatives Not Designated As Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 23.5 | $ 21.7 | $ 0 |
Derivatives And Hedging Activ_5
Derivatives And Hedging Activities (Effect Of Derivative Financial Instruments On The Consolidated Statements Of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flow Hedges [Member] | Interest Rate Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 1,100 | ||
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recorded in accumulated other comprehensive loss | 3,033 | $ (32,389) | $ (7,496) |
Gain (loss) reclassified from accumulated other comprehensive loss into earnings | (8,411) | (1,577) | 1,689 |
Amortization of Deferred Hedge Gains | 1,416 | 2,691 | 260 |
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | Interest Rate Swap [Member] | Selling, General And Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings from ineffective portion and early de-designation of cash flow hedges | 0 | 0 | 0 |
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | Cost Of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recorded in accumulated other comprehensive loss | (272) | (13,646) | (2,623) |
Gain (loss) reclassified from accumulated other comprehensive loss into earnings | (13,926) | 1,108 | (3,034) |
Derivatives Designated As Hedges [Member] | Cash Flow Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | Selling, General And Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings from ineffective portion and early de-designation of cash flow hedges | 0 | 0 | 0 |
Derivatives Not Designated As Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | Selling, General And Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (872) | $ (4,013) | $ (4,671) |
Derivatives And Hedging Activ_6
Derivatives And Hedging Activities (Effect Of Derivative Financial Instruments On The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Derivative [Line Items] | ||
Derivatives in a Fair Value Asset Position Designated as Hedging Instruments | $ 1,137 | $ 0 |
Derivatives in a Fair Value Liability Position Designated as Hedging Instruments | 26,750 | 48,630 |
Derivatives in a Fair Value Asset Position Not Designated as Hedging Instruments | 435 | 314 |
Derivatives in a Fair Value Liability Position Not Designated as Hedging Instruments | 791 | 4,375 |
Forward Foreign Currency Exchange Contracts [Member] | Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Asset Position Designated as Hedging Instruments | 1,137 | 0 |
Derivatives in a Fair Value Asset Position Not Designated as Hedging Instruments | 435 | 314 |
Forward Foreign Currency Exchange Contracts [Member] | Accounts Payable And Accrued Expenses [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Liability Position Designated as Hedging Instruments | 1,031 | 11,467 |
Derivatives in a Fair Value Liability Position Not Designated as Hedging Instruments | 791 | 4,375 |
Cash Flow Hedges [Member] | Interest Rate Swap Agreements [Member] | Other Non-Current Assets [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Asset Position Designated as Hedging Instruments | 0 | 0 |
Cash Flow Hedges [Member] | Interest Rate Swap Agreements [Member] | Other Noncurrent Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Liability Position Designated as Hedging Instruments | $ 25,719 | $ 37,163 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Change in estimated fair value of contingent consideration for FruitSmart acquisition | $ (4,173) | $ 0 | $ 0 | |
Change in discount rate and estimated collection period | (2) | $ (7) | ||
FruitSmart, Inc. [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value contingent consideration liability | 2,500 | $ 6,700 | ||
Change in discount rate and estimated collection period | (4,200) | |||
Nonrecurring fair value measurements [Member] | United States [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired fixed assets | 6,000 | |||
Nonrecurring fair value measurements [Member] | Tanzania | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired fixed assets | $ 17,000 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Assets: | ||
Money market funds | $ 1,992 | $ 4,011 |
Trading securities associated with deferred compensation plans | 15,735 | 12,635 |
Forward foreign currency exchange contracts | 1,572 | 314 |
Total financial assets measured and reported at fair value | 19,299 | 16,960 |
Liabilities: | ||
Guarantees of bank loans to tobacco growers | 103 | |
Acquisition-related contingent consideration obligations - short-term | 4,173 | |
Acquisition-related contingent consideration obligations - long-term | 2,532 | 2,532 |
Interest rate swap agreements | 25,719 | 37,163 |
Forward foreign currency exchange contracts | 1,822 | 15,842 |
Total financial liabilities measured and reported at fair value | 30,073 | 59,813 |
Level 1 [Member] | ||
Assets: | ||
Money market funds | 0 | 0 |
Trading securities associated with deferred compensation plans | 15,735 | 12,635 |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial assets measured and reported at fair value | 15,735 | 12,635 |
Liabilities: | ||
Guarantees of bank loans to tobacco growers | 0 | |
Acquisition-related contingent consideration obligations - short-term | 0 | |
Acquisition-related contingent consideration obligations - long-term | 0 | 0 |
Interest rate swap agreements | 0 | 0 |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial liabilities measured and reported at fair value | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Money market funds | 0 | 0 |
Trading securities associated with deferred compensation plans | 0 | 0 |
Forward foreign currency exchange contracts | 1,572 | 314 |
Total financial assets measured and reported at fair value | 1,572 | 314 |
Liabilities: | ||
Guarantees of bank loans to tobacco growers | 0 | |
Acquisition-related contingent consideration obligations - short-term | 0 | |
Acquisition-related contingent consideration obligations - long-term | 0 | 0 |
Interest rate swap agreements | 25,719 | 37,163 |
Forward foreign currency exchange contracts | 1,822 | 15,842 |
Total financial liabilities measured and reported at fair value | 27,541 | 53,005 |
Level 3 [Member] | ||
Assets: | ||
Money market funds | 0 | 0 |
Trading securities associated with deferred compensation plans | 0 | 0 |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial assets measured and reported at fair value | 0 | 0 |
Liabilities: | ||
Guarantees of bank loans to tobacco growers | 103 | |
Acquisition-related contingent consideration obligations - short-term | 4,173 | |
Acquisition-related contingent consideration obligations - long-term | 2,532 | 2,532 |
Interest rate swap agreements | 0 | 0 |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial liabilities measured and reported at fair value | 2,532 | 6,808 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Assets: | ||
Money market funds | 1,992 | 4,011 |
Trading securities associated with deferred compensation plans | 0 | 0 |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial assets measured and reported at fair value | 1,992 | 4,011 |
Liabilities: | ||
Guarantees of bank loans to tobacco growers | 0 | |
Acquisition-related contingent consideration obligations - short-term | 0 | |
Acquisition-related contingent consideration obligations - long-term | 0 | 0 |
Interest rate swap agreements | 0 | 0 |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial liabilities measured and reported at fair value | $ 0 | $ 0 |
Fair Value Measurements Fair _2
Fair Value Measurements Fair Value Measurements (Reconciliation of Contingent Consideration Liabilities Related to Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Change in estimated fair value of contingent consideration for FruitSmart acquisition | $ (4,173) | $ 0 | $ 0 |
Change in discount rate and estimated collection period | (2) | (7) | |
Liability | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance beginning of year | 6,705 | 0 | |
Change in estimated fair value of contingent consideration for FruitSmart acquisition | 0 | 6,705 | |
Change in discount rate and estimated collection period | (4,173) | 0 | |
Balance at end of year | $ 2,532 | $ 6,705 | $ 0 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation Of Change In Balance Of Financial Liability For Guarantees Of Bank Loans To Tobacco Growers) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Balance at beginning of year | $ 103 | $ 803 |
Payments under the guarantees and transfers to allowance for loss on direct loans to farmers (removal of prior crop year loans from the portfolio) | (96) | (659) |
Provision for loss or transfers from allowance for loss on direct loans to farmers (addition of current crop year loans) | 0 | (5) |
Change in discount rate and estimated collection period | (2) | (7) |
Currency remeasurement | (5) | (29) |
Balance at end of year | $ 0 | $ 103 |
Fair Value Measurements - Long
Fair Value Measurements - Long Term Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 517,000 | $ 370,000 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 520,000 | 370,000 |
Long-term debt | $ 518,172 | $ 368,764 |
Pension And Other Postretirem_3
Pension And Other Postretirement Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2029 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss expected in net periodic benefit cost during next fiscal year | $ 5,600 | |||
Prior service benefit expected in net periodic benefit cost during next fiscal year | $ 2,100 | |||
Percentage of total plan assets | 97.00% | |||
Percentage of total projected benefit obligation | 84.00% | |||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | $ 2,900 | $ 2,700 | $ 2,600 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funded status of the plans, end of year | $ 26,741 | $ 48,632 | ||
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Revised healthcare cost trend assumption | 6.17% | 7.34% | 7.60% | |
Year that rate reaches healthcare cost trend rate | 2029 | |||
Funded status of the plans, end of year | $ 25,893 | $ 26,913 | ||
Other Postretirement Benefits [Member] | Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Revised healthcare cost trend assumption | 4.44% | |||
ERISA Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected company contributions in next fiscal year | 1,400 | |||
Nonqualified Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected company contributions in next fiscal year | 5,900 | |||
Nonqualified Plan [Member] | Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funded status of the plans, end of year | 38,100 | |||
Nonqualified Plan [Member] | Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funded status of the plans, end of year | $ 23,700 |
Pension And Other Postretirem_4
Pension And Other Postretirement Benefit Plans (Assumptions Used To Compute Net Periodic Benefit Cost And Benefit Obligations) (Details) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates: Benefit cost for plan year | 3.60% | 4.00% | 4.10% |
Discount rates: Benefit obligation at end of plan year | 3.30% | 3.60% | 4.00% |
Expected long-term return on plan assets: Benefit cost for plan year | 6.00% | 6.75% | 6.75% |
Salary scale: Benefit cost for plan year | 4.00% | 4.00% | 4.00% |
Salary scale: Benefit obligation at end of plan year | 4.00% | 4.00% | 4.00% |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates: Benefit cost for plan year | 3.40% | 3.80% | 3.90% |
Discount rates: Benefit obligation at end of plan year | 2.90% | 3.40% | 3.80% |
Expected long-term return on plan assets: Benefit cost for plan year | 3.00% | 3.00% | 3.00% |
Salary scale: Benefit cost for plan year | 4.00% | 4.00% | 4.00% |
Salary scale: Benefit obligation at end of plan year | 4.00% | 4.00% | 4.00% |
Healthcare cost trend rate | 6.17% | 7.34% | 7.60% |
Pension And Other Postretirem_5
Pension And Other Postretirement Benefit Plans (Benefit Obligations, Plan Assets, And Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan assets at fair value, beginning of year | $ 238,450 | ||||
Plan assets at fair value, end of year | 270,349 | $ 238,450 | |||
Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | $ 289,901 | $ 281,242 | |||
Projected benefit obligation | 287,082 | 287,082 | $ 278,189 | 297,090 | 287,082 |
Projected benefit obligation, beginning of year | 287,082 | 278,189 | |||
Service cost | 6,618 | 5,990 | 6,008 | ||
Interest cost | 9,571 | 10,747 | 10,810 | ||
Effect of discount rate change | 12,990 | 14,479 | |||
Foreign currency exchange rate changes | 776 | (1,477) | |||
Settlements | 0 | 6,038 | |||
Other | (3,626) | 1,029 | |||
Benefit payments | (16,321) | (15,837) | |||
Projected benefit obligation, end of year | 297,090 | 287,082 | 278,189 | ||
Plan assets at fair value, beginning of year | 238,450 | 244,969 | |||
Actual return on plan assets | 39,757 | 10,551 | |||
Employer contributions | 8,472 | 6,037 | |||
Settlements | 0 | 6,038 | |||
Foreign currency exchange rate changes | (9) | (1,232) | |||
Plan assets at fair value, end of year | 270,349 | 238,450 | 244,969 | ||
Funded status of the plans, end of year | (26,741) | (48,632) | |||
Other Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | 30,282 | 31,635 | 31,635 | $ 28,926 | $ 30,282 |
Projected benefit obligation, beginning of year | 30,282 | 31,635 | |||
Service cost | 172 | 199 | 222 | ||
Interest cost | 1,141 | 1,306 | 1,371 | ||
Effect of discount rate change | 1,126 | 1,326 | |||
Foreign currency exchange rate changes | (283) | (1,012) | |||
Settlements | 0 | 0 | |||
Other | 167 | (744) | |||
Benefit payments | (3,679) | (2,428) | |||
Projected benefit obligation, end of year | 28,926 | 30,282 | 31,635 | ||
Plan assets at fair value, beginning of year | 3,369 | 3,717 | |||
Actual return on plan assets | 114 | 152 | |||
Employer contributions | 3,229 | 1,928 | |||
Settlements | 0 | 0 | |||
Foreign currency exchange rate changes | 0 | 0 | |||
Plan assets at fair value, end of year | 3,033 | 3,369 | $ 3,717 | ||
Funded status of the plans, end of year | $ (25,893) | $ (26,913) |
Pension And Other Postretirem_6
Pension And Other Postretirement Benefit Plans (Funded Status In Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets (included in Pension asset and other noncurrent assets) | $ 11,950 | $ 0 |
Noncurrent liability (reported as pensions and other postretirement benefits) | (57,637) | (70,680) |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets (included in Pension asset and other noncurrent assets) | 11,950 | 346 |
Current liability (included in Accounts payable and accrued expenses) | (4,896) | (2,978) |
Noncurrent liability (reported as pensions and other postretirement benefits) | (33,795) | (46,000) |
Amounts recognized in the consolidated balance sheets | (26,741) | (48,632) |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets (included in Pension asset and other noncurrent assets) | 0 | 0 |
Current liability (included in Accounts payable and accrued expenses) | (2,051) | (2,233) |
Noncurrent liability (reported as pensions and other postretirement benefits) | (23,842) | (24,680) |
Amounts recognized in the consolidated balance sheets | $ (25,893) | $ (26,913) |
Pension And Other Postretirem_7
Pension And Other Postretirement Benefit Plans (Additional Information On Funded Status) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Pension Benefits [Member] | ||
For Plans With A Projected Benefit Obligation In Excess Of Plan Assets: | ||
Aggregate projected benefit obligation (PBO) | $ 44,742 | $ 284,327 |
Aggregate fair value of plan assets | 6,051 | 235,349 |
For Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets: | ||
Aggregate accumulated benefit obligation (ABO) | 42,923 | 278,515 |
Aggregate fair value of plan assets | 6,051 | 235,349 |
Other Postretirement Benefits [Member] | ||
For Plans With A Projected Benefit Obligation In Excess Of Plan Assets: | ||
Aggregate projected benefit obligation (PBO) | 28,926 | 30,282 |
Aggregate fair value of plan assets | $ 3,033 | $ 3,369 |
Pension And Other Postretirem_8
Pension And Other Postretirement Benefit Plans (Components Of Company's Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 6,618 | $ 5,990 | $ 6,008 |
Interest cost | 9,571 | 10,747 | 10,810 |
Expected return on plan assets | (14,448) | (16,671) | (15,695) |
Settlement cost | 0 | 676 | 0 |
Net amortization and deferral | 4,863 | 3,709 | 3,491 |
Net periodic benefit cost | 6,604 | 4,451 | 4,614 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 172 | 199 | 222 |
Interest cost | 1,141 | 1,306 | 1,371 |
Expected return on plan assets | (96) | (106) | (99) |
Settlement cost | 0 | 0 | 0 |
Net amortization and deferral | (591) | (647) | (710) |
Net periodic benefit cost | $ 626 | $ 752 | $ 784 |
Pension And Other Postretirem_9
Pension And Other Postretirement Benefit Plans (Recognized In Accumulated Other Comprehensive Income (Loss) On Pretax Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain), beginning of year | $ 97,025 | $ 81,502 |
Losses (gains) arising during the year | (17,563) | 21,838 |
Settlement | 0 | 529 |
Amortization included in net periodic benefit cost during the year | 6,857 | 5,786 |
Net actuarial loss (gain), end of year | 72,605 | 97,025 |
Prior service cost (benefit), beginning of year | (5,402) | (7,479) |
Amortization included in net periodic benefit cost during the year | 1,996 | 2,077 |
Prior service cost (benefit), end of year | (3,406) | (5,402) |
Total amounts in accumulated other comprehensive loss at end of year, before income taxes | 69,199 | 91,623 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain), beginning of year | (5,365) | (6,201) |
Losses (gains) arising during the year | 520 | 302 |
Settlement | 0 | 0 |
Amortization included in net periodic benefit cost during the year | (450) | (534) |
Net actuarial loss (gain), end of year | (4,395) | (5,365) |
Prior service cost (benefit), beginning of year | (564) | (766) |
Amortization included in net periodic benefit cost during the year | 188 | 202 |
Prior service cost (benefit), end of year | (376) | (564) |
Total amounts in accumulated other comprehensive loss at end of year, before income taxes | $ (4,771) | $ (5,929) |
Pension And Other Postretire_10
Pension And Other Postretirement Benefit Plans (Weighted-Average Target Pension Asset Allocation And Target Ranges By Major Asset Category) (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Actual Allocation | 100.00% | 100.00% |
Domestic Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 29.00% | |
Actual Allocation | 32.00% | 25.40% |
Domestic Equity Securities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 19.00% | |
Domestic Equity Securities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 39.00% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 66.00% | |
Actual Allocation | 64.10% | 70.30% |
Fixed Income Securities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 56.00% | |
Fixed Income Securities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 76.00% | |
Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 5.00% | |
Actual Allocation | 3.90% | 4.30% |
Real Estate Funds [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 0.00% | |
Real Estate Funds [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 10.00% |
Pension And Other Postretire_11
Pension And Other Postretirement Benefit Plans (Estimated Future Benefit Payments) (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Pension Benefits [Member] | |
2022 | $ 19,611 |
2023 | 18,777 |
2024 | 18,656 |
2025 | 17,979 |
2026 | 22,893 |
2027 - 2031 | 84,154 |
Other Postretirement Benefits [Member] | |
2022 | 2,484 |
2023 | 2,375 |
2024 | 2,265 |
2025 | 2,173 |
2026 | 2,047 |
2027 - 2031 | $ 8,882 |
Pension And Other Postretire_12
Pension And Other Postretirement Benefit Plans (Fair Values Of Assets Under Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | $ 270,349 | $ 238,450 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 83,135 | 58,204 | |
Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 177,172 | 170,436 | [1] |
Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 10,042 | 9,810 | |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 251,336 | 220,871 | |
Level 1 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 83,135 | 58,204 | |
Level 1 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 168,201 | 162,667 | [1] |
Level 1 [Member] | Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 0 | 0 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 2,920 | 3,101 | |
Level 2 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 0 | 0 | |
Level 2 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 2,920 | 3,101 | [1] |
Level 2 [Member] | Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 0 | 0 | |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 16,093 | 14,478 | |
Level 3 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 0 | 0 | |
Level 3 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 6,051 | 4,668 | [1] |
Level 3 [Member] | Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | $ 10,042 | $ 9,810 | |
[1] | Includes high yield securities and cash and cash equivalent balances. |
Common And Preferred Stock (Nar
Common And Preferred Stock (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Class of Stock Disclosures [Abstract] | ||||
Common stock, shares authorized | 100,000,000 | |||
Common Stock, Shares, Outstanding | 24,514,867 | 24,421,835 | 24,989,946 | 24,930,725 |
Preferred stock, shares authorized | 5,000,000 | |||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||
Preferred stock, shares outstanding | 0 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 100,000 |
Common And Preferred Stock (Sch
Common And Preferred Stock (Schedule Of Repurchases Of Shares) (Details) - Common Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Class of Stock [Line Items] | |||
Stock Repurchased During Period, Shares | 0 | 656,820 | 30,777 |
Cost of shares repurchased (in thousands of dollars) | $ 0 | $ 33,457 | $ 1,443 |
Weighted-average cost per share | $ 0 | $ 50.94 | $ 46.87 |
Executive Stock Plans And Sto_3
Executive Stock Plans And Stock-Based Compensation (Narrative) (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2021USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 1,000,000 |
Unrecognized compensation expense related to stock-based awards | $ | $ 4.6 |
Unrecognized compensation expense related to stock-based awards, weighted-average period expected to recognized | 1 year 1 month 6 days |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, in years | 5 years |
Performance Share Awards Psas [Member | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, in years | 3 years |
Performance Share Awards Psas [Member | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of award grant paid | 0.00% |
Performance Share Awards Psas [Member | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of award grant paid | 150.00% |
Plans Before Fiscal 2020 [Member] | Outside Directors [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, in years | 3 years |
Plans After Fiscal 2020 [Member] | Outside Directors [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, in years | 1 year |
Executive Stock Plans And Sto_4
Executive Stock Plans And Stock-Based Compensation (Summary Of RSU, Restricted Stock, And PSA Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2017 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 103,829 | 85,463 | 87,621 | |
Vested, Shares | (97,297) | (74,518) | (99,549) | |
Forfeited, Shares | 0 | 0 | 0 | |
Unvested at end of year, Shares | 342,468 | 335,936 | 324,991 | 336,919 |
Granted, Weighted- Average Grant Date Fair Value | $ 46.27 | $ 56.39 | $ 64.53 | |
Vested, Weighted- Average Grant Date Fair Value | 54.11 | 54.20 | 59.09 | |
Forfeited, Weighted- Average Grant Date Fair Value | 0 | 0 | 0 | |
Unvested at end of year, Weighted- Average Grant Date Fair Value | $ 55.44 | $ 57.89 | $ 57.12 | $ 55.77 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 0 | 0 | 0 | |
Vested, Shares | (9,650) | 0 | (8,950) | |
Forfeited, Shares | 0 | 0 | 0 | |
Unvested at end of year, Shares | 11,600 | 21,250 | 21,250 | 30,200 |
Granted, Weighted- Average Grant Date Fair Value | $ 0 | $ 0 | $ 0 | |
Vested, Weighted- Average Grant Date Fair Value | 41.24 | 0 | 44.25 | |
Forfeited, Weighted- Average Grant Date Fair Value | 0 | 0 | 0 | |
Unvested at end of year, Weighted- Average Grant Date Fair Value | $ 41.86 | $ 41.58 | $ 42.37 | $ 42.37 |
Performance Share Awards Psas [Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 65,135 | 60,728 | 54,800 | |
Vested, Shares | (40,410) | (67,402) | (49,092) | |
Forfeited, Shares | (3,778) | 0 | (9,834) | |
Unvested at end of year, Shares | 161,147 | 140,200 | 146,874 | 151,000 |
Granted, Weighted- Average Grant Date Fair Value | $ 34.33 | $ 50.16 | $ 57.12 | |
Vested, Weighted- Average Grant Date Fair Value | 60.37 | 49.17 | 45.06 | |
Forfeited, Weighted- Average Grant Date Fair Value | 57.83 | 0 | 45.55 | |
Unvested at end of year, Weighted- Average Grant Date Fair Value | $ 46.20 | $ 55.73 | $ 55.12 | $ 50.50 |
Executive Stock Plans And Sto_5
Executive Stock Plans And Stock-Based Compensation (Stock-Based Compensation Expense And Related Income Tax Benefit Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||
Total stock-based compensation expense | $ 6,106 | $ 5,631 | $ 8,152 |
Income tax benefit recorded on stock-based compensation expense | $ 1,282 | $ 1,182 | $ 1,712 |
Commitments And Other Matters (
Commitments And Other Matters (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments And Other Matters [Line Items] | ||
Total amount of advances funded towards tobacco purchase | $ 122 | |
Commitments relating to agricultural materials,capital expenditures | 103 | |
Face amount of guarantee including unpaid accrued interest | $ 3 | |
Fair value of the guarantees | $ 0.1 | |
Other contingent liabilities | 1 | |
Santa Catarina [Member] | ||
Commitments And Other Matters [Line Items] | ||
Brazil Audit Assessment For Tax, Penalties, And Interest On Recoverable Value Added Tax Credits | 7 | |
Reduction of Brazil Audit Assessment For Tax, Penalties, And Interest On Recoverable Value Added Tax Credits | 8 | |
Santa Catarina [Member] | Minimum [Member] | ||
Commitments And Other Matters [Line Items] | ||
Estimate of possible loss on remaining VAT audit assessment | 0 | |
Santa Catarina [Member] | Maximum [Member] | ||
Commitments And Other Matters [Line Items] | ||
Estimate of possible loss on remaining VAT audit assessment | 8 | |
Parana [Member] | ||
Commitments And Other Matters [Line Items] | ||
Brazil Audit Assessment For Tax, Penalties, And Interest On Recoverable Value Added Tax Credits | 10 | |
Reduction of Brazil Audit Assessment For Tax, Penalties, And Interest On Recoverable Value Added Tax Credits | 3 | |
Parana [Member] | Minimum [Member] | ||
Commitments And Other Matters [Line Items] | ||
Estimate of possible loss on remaining VAT audit assessment | 0 | |
Parana [Member] | Maximum [Member] | ||
Commitments And Other Matters [Line Items] | ||
Estimate of possible loss on remaining VAT audit assessment | 3 | |
Next Fiscal Year [Member] | ||
Commitments And Other Matters [Line Items] | ||
Tobacco purchase contracts | 442 | |
After Next Fiscal Year [Member] | ||
Commitments And Other Matters [Line Items] | ||
Tobacco purchase contracts | $ 123 |
Operating Segments (Operating R
Operating Segments (Operating Results For The Company's Reportable Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | $ 1,983,357 | $ 1,909,979 | $ 2,227,153 | |
Operating Income | 147,810 | 126,367 | 161,169 | |
Equity in pretax earnings of unconsolidated affiliates | [1] | (2,985) | (4,211) | (5,299) |
Restructuring and impairment costs | [2] | (22,577) | (7,543) | (20,304) |
Other income | [3] | 4,173 | 0 | 0 |
Segment Assets | 2,341,924 | 2,120,921 | 2,133,184 | |
Accounts Receivable, after Allowance for Credit Loss | 367,482 | 340,711 | 368,110 | |
Goodwill, net | 173,051 | 126,826 | 97,907 | |
Other intangibles, net | 72,304 | 17,861 | 87 | |
Capital Expenditures | 66,154 | 35,227 | 38,760 | |
Depreciation and Amortization | 44,733 | 38,379 | 37,104 | |
Tobacco Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 1,841,837 | 1,887,084 | 2,222,246 | |
Operating Income | 168,832 | 146,637 | 195,383 | |
Restructuring and impairment costs | (6,500) | (7,500) | ||
Segment Assets | 2,002,059 | 1,985,732 | 2,108,641 | |
Accounts Receivable, after Allowance for Credit Loss | 336,876 | 330,367 | 367,579 | |
Goodwill, net | 98,044 | 97,963 | 97,907 | |
Other intangibles, net | 82 | 59 | 87 | |
Capital Expenditures | 46,037 | 35,175 | 38,206 | |
Depreciation and Amortization | 33,895 | 35,251 | 35,449 | |
Ingredients Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 141,520 | 22,895 | 4,907 | |
Operating Income | 367 | (8,516) | (8,611) | |
Segment Assets | 339,865 | 135,189 | 24,543 | |
Accounts Receivable, after Allowance for Credit Loss | 30,606 | 10,344 | 531 | |
Goodwill, net | 75,007 | 28,863 | 0 | |
Other intangibles, net | 72,222 | 17,802 | 0 | |
Capital Expenditures | 20,117 | 52 | 554 | |
Depreciation and Amortization | 10,838 | 3,128 | 1,655 | |
Total Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | $ 169,199 | $ 138,121 | $ 186,772 | |
[1] | Equity in pretax earnings of unconsolidated affiliates is included in reportable segment operating income, but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. | |||
[2] | Restructuring and impairment costs are excluded from reportable segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 4) | |||
[3] | Other income represents the reversal of a portion of the contingent consideration liability associated with the acquisition of FruitSmart. See Note 2 for additional information. |
Operating Segments (Schedule Of
Operating Segments (Schedule Of Sales And Long-Lived Assets By Country) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | $ 1,983,357 | $ 1,909,979 | $ 2,227,153 |
Long-Lived Assets | 594,865 | 459,840 | 400,488 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 369,074 | 221,428 | 227,771 |
Long-Lived Assets | 266,258 | 145,764 | 81,270 |
Belgium [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 366,476 | 361,889 | 390,433 |
Poland | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 97,001 | 84,011 | 145,478 |
Germany [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 94,519 | 104,525 | 166,397 |
Philippines | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 94,493 | 68,143 | 69,820 |
China [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 52,837 | 105,683 | 115,174 |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 51,448 | 35,475 | 64,700 |
Brazil [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 134,909 | 138,157 | 139,624 |
Mozambique [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 44,206 | 42,964 | 45,051 |
All Other Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 857,509 | 928,825 | 1,047,380 |
Long-Lived Assets | $ 149,492 | $ 132,955 | $ 134,543 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Foreign currency translation: [Abstract] | ||||
Net gain (loss) on foreign currency translation, net of income taxes | $ 8,272 | $ (3,066) | $ (16,316) | |
Pension and other postretirement benefit plan: [Abstract] | ||||
Pension and other postretirement benefit plans, net of income taxes | 17,038 | (14,766) | (11,665) | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Total accumulated other comprehensive income (loss) at end of period | (107,037) | (151,597) | (95,691) | |
Forward Foreign Currency Exchange Contracts [Member] | ||||
Cash flow hedges: [Abstract] | ||||
Hedges, net of income taxes | 11,812 | (11,850) | (341) | |
Interest Rate Swap [Member] | ||||
Cash flow hedges: [Abstract] | ||||
Hedges, net of income taxes | 7,922 | (26,468) | (7,462) | |
Accumulated Translation Adjustment [Member] | ||||
Foreign currency translation: [Abstract] | ||||
Balance at beginning of year | (42,923) | (40,101) | (23,942) | |
Net gain (loss) on foreign currency translation, net of income taxes | 8,272 | (3,066) | (16,316) | |
Less: Net loss (gain) on foreign currency translation attributable to noncontrolling interests | (484) | 244 | 157 | |
Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes | 7,788 | (2,822) | (16,159) | |
Balance at end of period | (35,135) | (42,923) | (40,101) | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Taxes on net gain (loss) on foreign currency translation | 180 | |||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | ||||
Cash flow hedges: [Abstract] | ||||
Balance at beginning of year | (12,226) | (376) | (35) | |
Net gain (loss) on derivative instruments, net of income taxes | 1,791 | (12,391) | (6,490) | |
Reclassifications to earnings, net of income taxes | [1] | 10,021 | 541 | 6,149 |
Hedges, net of income taxes | 11,812 | (11,850) | (341) | |
Balance at end of period | (414) | (12,226) | (376) | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Taxes on net gain (loss) on derivative instruments | (130) | 2,880 | 602 | |
Taxes on reclassifications to net income | (2,726) | 136 | (640) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Swap [Member] | ||||
Cash flow hedges: [Abstract] | ||||
Balance at beginning of year | (27,402) | (934) | 6,528 | |
Net gain (loss) on derivative instruments, net of income taxes | 2,396 | (25,588) | (5,922) | |
Reclassifications to earnings, net of income taxes | [2] | 5,526 | (880) | (1,540) |
Hedges, net of income taxes | 7,922 | (26,468) | (7,462) | |
Balance at end of period | (19,480) | (27,402) | (934) | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Taxes on net gain (loss) on derivative instruments | (637) | 6,801 | 1,574 | |
Taxes on reclassifications to net income | (1,469) | 234 | 409 | |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Pension and other postretirement benefit plan: [Abstract] | ||||
Balance at beginning of year | (69,046) | (54,280) | (42,615) | |
Gains arising during period, net of income taxes | [3] | 13,627 | (16,810) | (13,927) |
Amortization included in earnings, net of income taxes | [4] | 3,411 | 2,044 | 2,262 |
Pension and other postretirement benefit plans, net of income taxes | 17,038 | (14,766) | (11,665) | |
Balance at end of period | (52,008) | (69,046) | (54,280) | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Taxes on losses (gains) arising during the period | (3,706) | 4,715 | 4,073 | |
Taxes on amortization included in net income | $ (895) | $ (554) | $ (628) | |
[1] | Gains (losses) on foreign currency cash flow hedges related to forecast purchases of tobacco and crop input sales are reclassified from accumulated other comprehensive income (loss) to cost of goods sold when the tobacco is sold to customers. See Note 11 for additional information. | |||
[2] | Gain (loss) on interest rate cash flow hedges is reclassified from accumulated other comprehensive income (loss) to interest expense when the related interest payments are made on the debt for open interest rate swap agreements, or as amortized to interest expense over the period to original maturity for terminated swap agreements. See Note 11 for additional information. | |||
[3] | These items arise from the remeasurement of the assets and liabilities of the Company's defined benefit pension and other postretirement benefit plans. Those remeasurements are made on an annual basis at the end of the fiscal year. See Note 13 for additional information. | |||
[4] | This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost. See Note 13 for additional information. |
Schedule II - Valuation And Q_2
Schedule II - Valuation And Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Allowance for doubtful accounts [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 2,394 | $ 2,985 | $ 1,783 |
Net Additions (Reversals) Charged to Expense | 304 | (128) | 1,358 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 1,446 | 463 | 156 |
Balance at End of Period | 1,252 | 2,394 | 2,985 |
Allowance for supplier accounts [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 16,428 | 18,105 | 21,720 |
Net Additions (Reversals) Charged to Expense | (5,534) | (937) | (2,339) |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 4,145 | 2,614 | 1,276 |
Balance at End of Period | 17,817 | 16,428 | 18,105 |
Allowance for recoverable taxes [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 18,778 | 17,181 | 14,679 |
Net Additions (Reversals) Charged to Expense | 799 | (2,586) | 3,535 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 408 | 4,183 | 1,033 |
Balance at End of Period | $ 19,169 | $ 18,778 | $ 17,181 |