Cover Page
Cover Page - shares | 9 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Cover page. | ||
Entity Central Index Key | 0000939930 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-13684 | |
Entity Registrant Name | Pyxus International, Inc. | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1746567 | |
Entity Address, Address Line One | 8001 Aerial Center Parkway | |
Entity Address, City or Town | Morrisville, | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27560 | |
City Area Code | 919 | |
Local Phone Number | 379-4300 | |
Title of 12(b) Security | Common Stock (no par value) | |
Trading Symbol | PYX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,177,268 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Sales and other operating revenues | $ 363,260 | $ 524,487 | $ 1,022,911 | $ 1,210,351 |
Cost of goods and services sold | 308,133 | 449,776 | 867,852 | 1,045,042 |
Gross profit | 55,127 | 74,711 | 155,059 | 165,309 |
Selling, general, and administrative expenses | 45,911 | 41,680 | 142,551 | 118,759 |
Other (expense) income, net | (401) | 7,991 | 4,061 | 13,473 |
Restructuring and asset impairment charges | 672 | 1,667 | 892 | 3,390 |
Operating income | 8,143 | 39,355 | 15,677 | 56,633 |
Debt retirement benefit | 0 | (1,281) | 0 | (1,754) |
Interest expense | 32,200 | 33,947 | 101,346 | 102,182 |
Interest income | 442 | 962 | 2,966 | 2,587 |
(Loss) income before income taxes and other items | (23,615) | 7,651 | (82,703) | (41,208) |
Income tax (benefit) expense | (914) | 17,354 | 25,238 | 26,900 |
Income from unconsolidated affiliates | 255 | 4,701 | 6,728 | 6,852 |
Net loss | (22,446) | (5,002) | (101,213) | (61,256) |
Net (loss) income attributable to noncontrolling interests | (453) | 93 | (905) | (769) |
Net loss attributable to Pyxus International, Inc. | $ (21,993) | $ (5,095) | $ (100,308) | $ (60,487) |
Loss per share: | ||||
Basic (USD per share) | $ (2.40) | $ (0.56) | $ (10.98) | $ (6.69) |
Diluted (USD per share) | $ (2.40) | $ (0.56) | $ (10.98) | $ (6.69) |
Weighted average number of shares outstanding: | ||||
Basic (shares) | 9,166 | 9,068 | 9,137 | 9,048 |
Diluted (shares) | 9,166 | 9,068 | 9,137 | 9,048 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Debt amortization | $ 2,559 | $ 2,325 | $ 7,478 | $ 7,020 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (22,446) | $ (5,002) | $ (101,213) | $ (61,256) |
Other comprehensive income (loss), net of tax: | ||||
Currency translation adjustment | 1,871 | (2,310) | (474) | (7,628) |
Defined benefit pension amounts reclassified to income | 312 | 285 | 934 | 853 |
Change in pension liability for settlements | 799 | (1,162) | (1,213) | (391) |
Change in the fair value of derivatives designated as cash flow hedges | 0 | (3,752) | (147) | (3,752) |
Amounts reclassified to income for derivatives | 576 | 2,161 | 2,520 | 1,445 |
Total other comprehensive income (loss), net of tax | 3,558 | (4,778) | 1,620 | (9,473) |
Total comprehensive loss | (18,888) | (9,780) | (99,593) | (70,729) |
Comprehensive loss attributable to noncontrolling interests | (405) | (430) | (846) | (1,216) |
Comprehensive loss attributable to Pyxus International, Inc. | $ (18,483) | $ (9,350) | $ (98,747) | $ (69,513) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | |||
Cash and cash equivalents | $ 72,230 | $ 192,043 | $ 209,160 |
Restricted cash | 2,359 | 5,378 | 6,335 |
Trade receivables, net | 180,404 | 290,097 | 268,747 |
Other receivables | 12,257 | 20,900 | 21,305 |
Accounts receivable, related parties | 6,418 | 5,633 | 5,077 |
Notes receivable, related parties | 406 | 150 | 0 |
Inventories | 871,850 | 668,171 | 827,782 |
Advances to tobacco suppliers | 61,536 | 19,754 | 51,135 |
Recoverable income taxes | 9,751 | 5,421 | 8,538 |
Prepaid expenses | 22,447 | 15,934 | 17,325 |
Other current assets | 14,345 | 15,027 | 16,212 |
Total current assets | 1,254,003 | 1,238,508 | 1,431,616 |
Restricted cash | 389 | 389 | 389 |
Long-term notes receivable, related parties | 7,466 | 545 | 742 |
Investments in unconsolidated affiliates | 69,368 | 69,459 | 68,351 |
Goodwill | 34,570 | 34,336 | 34,109 |
Other intangible assets, net | 67,404 | 71,781 | 70,074 |
Deferred income taxes, net | 115,947 | 116,451 | 106,610 |
Long-term recoverable income taxes | 2,618 | 3,067 | 898 |
Other deferred charges | 1,421 | 2,175 | 2,634 |
Other noncurrent assets | 48,533 | 46,168 | 43,514 |
Right-of-use assets | 43,372 | 0 | 0 |
Property, plant, and equipment, net | 303,956 | 276,396 | 264,782 |
Total assets | 1,949,047 | 1,859,275 | 2,023,719 |
Current liabilities | |||
Notes payable to banks | 580,346 | 428,961 | 583,407 |
Accounts payable | 61,076 | 87,049 | 49,373 |
Accounts payable, related parties | 11,077 | 19,054 | 18,372 |
Advances from customers | 19,227 | 16,436 | 45,900 |
Accrued expenses and other current liabilities | 103,351 | 91,282 | 98,233 |
Income taxes payable | 15,444 | 3,728 | 6,513 |
Operating leases payable | 14,033 | 0 | 0 |
Current portion of long-term debt | 325 | 332 | 165 |
Total current liabilities | 804,879 | 646,842 | 801,963 |
Long-term taxes payable | 8,523 | 10,718 | 10,718 |
Long-term debt | 902,461 | 898,386 | 897,195 |
Deferred income taxes | 30,396 | 26,813 | 12,437 |
Liability for unrecognized tax benefits | 12,233 | 11,189 | 11,026 |
Long-term leases | 28,206 | 0 | 0 |
Pension, postretirement, and other long-term liabilities | 70,315 | 73,308 | 72,013 |
Total liabilities | 1,857,013 | 1,667,256 | 1,805,352 |
Commitments and contingencies | |||
Common Stock—no par value: | |||
Authorized shares (shares) | 250,000,000 | 250,000,000 | 250,000,000 |
Issued shares (shares) | 9,963,000 | 9,881,000 | 9,866,000 |
Issued shares | $ 469,450 | $ 468,936 | $ 474,603 |
Retained deficit | (324,192) | (223,884) | (213,905) |
Accumulated other comprehensive loss | (59,781) | (61,342) | (57,218) |
Total stockholders’ equity of Pyxus International, Inc. | 85,477 | 183,710 | 203,480 |
Noncontrolling interests | 6,557 | 8,309 | 14,887 |
Total stockholders’ equity | 92,034 | 192,019 | 218,367 |
Total liabilities and stockholders’ equity | 1,949,047 | $ 1,859,275 | $ 2,023,719 |
Expected costs for severance for affected employees | $ 4,300 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Retained Deficit | Currency Translation Adjustment | Pensions, Net of Tax | Loss on Derivatives, Net of Tax | Noncontrolling Interests |
Balance at beginning of period at Mar. 31, 2018 | $ 282,828 | $ 473,476 | $ (156,348) | $ (12,682) | $ (32,580) | $ 0 | $ 10,962 |
Statement of Consolidated Stockholders' Equity | |||||||
Net loss attributable to Pyxus International, Inc. | (1,413) | (759) | (654) | ||||
Stock-based compensation | 295 | 295 | |||||
Purchase of investment in subsidiary | 5,531 | 5,531 | |||||
Other comprehensive (loss) income, net of tax | (6,441) | (5,136) | 366 | (1,496) | (175) | ||
Balance at end of period at Jun. 30, 2018 | 280,800 | 473,771 | (157,107) | (17,818) | (32,214) | (1,496) | 15,664 |
Balance at beginning of period at Mar. 31, 2018 | 282,828 | 473,476 | (156,348) | (12,682) | (32,580) | 0 | 10,962 |
Statement of Consolidated Stockholders' Equity | |||||||
Net loss attributable to Pyxus International, Inc. | (61,256) | ||||||
Other comprehensive (loss) income, net of tax | (9,473) | ||||||
Balance at end of period at Dec. 31, 2018 | 218,367 | 474,603 | (213,905) | (19,862) | (35,049) | (2,307) | 14,887 |
Balance at beginning of period at Jun. 30, 2018 | 280,800 | 473,771 | (157,107) | (17,818) | (32,214) | (1,496) | 15,664 |
Statement of Consolidated Stockholders' Equity | |||||||
Net loss attributable to Pyxus International, Inc. | (54,842) | (54,634) | (208) | ||||
Restricted stock surrender | (8) | (8) | |||||
Stock-based compensation | 458 | 458 | |||||
Other comprehensive (loss) income, net of tax | 1,747 | (257) | 973 | 780 | 251 | ||
Balance at end of period at Sep. 30, 2018 | 228,155 | 474,221 | (211,741) | (18,075) | (31,241) | (716) | 15,707 |
Statement of Consolidated Stockholders' Equity | |||||||
Net loss attributable to Pyxus International, Inc. | (5,002) | (5,095) | 93 | ||||
Restricted stock surrender | (20) | (20) | |||||
Stock-based compensation | 402 | 402 | |||||
Dividends paid | (390) | (390) | |||||
Other comprehensive (loss) income, net of tax | (4,778) | (1,787) | (877) | (1,591) | (523) | ||
Balance at end of period at Dec. 31, 2018 | 218,367 | 474,603 | (213,905) | (19,862) | (35,049) | (2,307) | 14,887 |
Balance at beginning of period at Mar. 31, 2019 | 192,019 | 468,936 | (223,884) | (21,979) | (36,749) | (2,614) | 8,309 |
Statement of Consolidated Stockholders' Equity | |||||||
Net loss attributable to Pyxus International, Inc. | (62,163) | (61,797) | (366) | ||||
Stock-based compensation | 429 | 429 | |||||
Other comprehensive (loss) income, net of tax | 280 | (430) | 311 | 369 | 30 | ||
Balance at end of period at Jun. 30, 2019 | 130,565 | 469,365 | (285,681) | (22,409) | (36,438) | (2,245) | 7,973 |
Balance at beginning of period at Mar. 31, 2019 | 192,019 | 468,936 | (223,884) | (21,979) | (36,749) | (2,614) | 8,309 |
Statement of Consolidated Stockholders' Equity | |||||||
Net loss attributable to Pyxus International, Inc. | (101,213) | ||||||
Other comprehensive (loss) income, net of tax | 1,620 | ||||||
Balance at end of period at Dec. 31, 2019 | 92,034 | 469,450 | (324,192) | (22,512) | (37,028) | (241) | 6,557 |
Balance at beginning of period at Jun. 30, 2019 | 130,565 | 469,365 | (285,681) | (22,409) | (36,438) | (2,245) | 7,973 |
Statement of Consolidated Stockholders' Equity | |||||||
Net loss attributable to Pyxus International, Inc. | (16,604) | (16,518) | (86) | ||||
Restricted stock surrender | (12) | (12) | |||||
Stock-based compensation | 383 | 383 | |||||
Dividends paid | (480) | (480) | |||||
Other comprehensive (loss) income, net of tax | (2,217) | (1,925) | (1,701) | 1,428 | (19) | ||
Balance at end of period at Sep. 30, 2019 | 111,635 | 469,736 | (302,199) | (24,334) | (38,139) | (817) | 7,388 |
Statement of Consolidated Stockholders' Equity | |||||||
Net loss attributable to Pyxus International, Inc. | (22,446) | (21,993) | (453) | ||||
Stock-based compensation | 242 | 242 | |||||
Purchase of noncontrolling interests in a subsidiary | (921) | (528) | 33 | (426) | |||
Other comprehensive (loss) income, net of tax | 3,558 | ||||||
Other comprehensive income, net of tax | 3,524 | 1,789 | 1,111 | 576 | 48 | ||
Balance at end of period at Dec. 31, 2019 | $ 92,034 | $ 469,450 | $ (324,192) | $ (22,512) | $ (37,028) | $ (241) | $ 6,557 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | ||
Net loss | $ (101,213) | $ (61,256) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization | 26,003 | 26,887 |
Debt amortization/interest | 9,356 | 8,739 |
Debt retirement benefit | 0 | (1,754) |
Gain on foreign currency transactions | (3,921) | (1,220) |
Asset impairment charges | 260 | 891 |
Gain on sale of property, plant, and equipment | (168) | (2,155) |
Gain on insurance proceeds received for destroyed buildings | 0 | (6,460) |
Income from unconsolidated affiliates, net of dividends | (128) | (1,486) |
Bad debt expense | 0 | 2,136 |
Stock-based compensation | 1,054 | 1,155 |
Changes in operating assets and liabilities, net | (323,681) | (315,113) |
Other, net | 5,220 | 11,143 |
Net cash used by operating activities | (387,218) | (338,493) |
Investing Activities: | ||
Purchases of property, plant, and equipment | (51,479) | (35,327) |
Proceeds from sale of property, plant, and equipment | 1,844 | 5,179 |
Collections on beneficial interests on securitized trade receivables | 174,741 | 171,565 |
Loans to unconsolidated affiliates | (5,250) | 0 |
Insurance proceeds received for destroyed buildings | 0 | 6,460 |
Payments to acquire controlling interests, net of cash acquired | 0 | (8,692) |
Other, net | (240) | (886) |
Net cash provided by investing activities | 119,616 | 138,299 |
Financing Activities: | ||
Net proceeds from short-term borrowings | 156,784 | 173,548 |
Repayment of long-term borrowings | (91) | (25,132) |
Debt issuance cost | (5,245) | (5,072) |
Purchase of noncontrolling interests in a subsidiary | (921) | 0 |
Other, net | (480) | (459) |
Net cash provided by financing activities | 150,047 | 142,885 |
Effect of exchange rate changes on cash | (5,277) | 5,160 |
Decrease in cash, cash equivalents, and restricted cash | (122,832) | (52,149) |
Cash and cash equivalents at beginning of period | 192,043 | 264,660 |
Restricted cash at beginning of period | 5,767 | 3,373 |
Cash, cash equivalents, and restricted cash at end of period | 74,978 | 215,884 |
Other information: | ||
Cash paid for income taxes | 13,768 | 19,650 |
Cash paid for interest | 80,191 | 81,622 |
Cash received from interest | (2,839) | (2,340) |
Noncash investing activities: | ||
Purchases of property, plant, and equipment included in accounts payable | 4,590 | 1,501 |
Sales of property, plant, and equipment included in notes receivable | 662 | 1,473 |
Non-cash amounts obtained as a beneficial interest in exchange for transferring trade receivables in a securitization transaction | $ 151,149 | $ 161,943 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The accompanying condensed consolidated financial statements represent the consolidation of Pyxus International, Inc. (the "Company" or "Pyxus") and all companies that Pyxus directly or indirectly controls, either through majority ownership or otherwise. These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, the normal and recurring adjustments necessary for fair statement of financial position, results of operations, and cash flows at the dates and for the periods presented have been included. Intercompany accounts and transactions have been eliminated. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2019. The year-end condensed balance sheet data was derived from the audited financial statements. Due to the seasonal nature of the Company’s business, the results of operations for a fiscal quarter are not necessarily indicative of the operating results that may be attained for other quarters or a full fiscal year. Leases The Company measures right-of-use assets and related lease liabilities based on the present value of remaining lease payments, including in-substance fixed payments, the current payment amount when payments depend on an index or rate (e.g., inflation adjustments, market renewals), and the amount the Company believes is probable to be paid to the lessor under residual value guarantees, when applicable. Lease contracts may include fixed payments for non-lease components, such as maintenance, which are included in the measurement of lease liabilities for certain asset classes based on the Company’s election to combine lease and non-lease components. The Company does not recognize short-term leases on the consolidated balance sheet. As applicable borrowing rates are not typically implied within the lease arrangements, the Company discounts lease payments based on its estimated incremental borrowing rate at lease commencement, or modification, which is based on the Company’s estimated credit rating, the lease term at commencement, and the contract currency of the lease arrangement. Segments During the three months ended December 31, 2018, the Company realigned its reportable segments to reflect changes to how the business is managed and results are reviewed by the Company's chief operating decision maker. In connection with the "One Tomorrow Transformation" initiative, the Company changed its organizational structure to support its diversified business lines. Prior to the realignment, the Company assessed financial information based on geographic regions. The Company's diversification efforts have resulted in management placing emphasis on data by business line in addition to the historical focus by geography. As a result of this realignment, the reportable segments now include Leaf - North America, Leaf - Other Regions, and Other Products and Services. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation of notes receivable, related parties in the condensed consolidated balance sheets, restructuring and asset impairment charges in the condensed consolidated statement of cash flows, and the components within inventory, see "Note 17 . Inventories" for more information. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2016-02, Leases (Topic 842) . Under this guidance, a lessee recognizes assets and liabilities on its balance sheet for most leases, and retains a dual model approach for assessing lease classification and recognizing expense. This guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leasing arrangements. The FASB subsequently issued updates to provide clarification on specific topics, including adoption guidance, practical expedients, and interim transition disclosure requirements. The Company adopted this guidance during the first quarter beginning April 1, 2019 under the modified retrospective approach, which does not require adjustments to comparative periods or require modified disclosures for those comparative periods. The guidance provides a number of optional practical expedients in transition. The Company elected the package of transition practical expedients. The Company implemented changes to its accounting policies, systems, and controls to align with the new guidance. There is a material impact on the consolidated balance sheet from applying this guidance, which resulted in the recognition of new right-of-use assets of $43,900 and lease liabilities of $42,064 as of April 1, 2019 associated with the Company’s operating leases. The impact on the results of operations, cash flows, and existing debt covenants is not material. The adoption of this guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from lease arrangements. See "Note 14. Leases" for more information. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies the test for goodwill impairment as it eliminates step two of the goodwill impairment test by no longer requiring an entity to compare the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under this new standard, goodwill impairment is measured as the excess of the reporting unit's carrying value over fair value, limited to the amount of goodwill. The Company will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is needed. This guidance has been early adopted by the Company as of December 31, 2019 on a prospective basis. The adoption of this new accounting standard did not have a material impact on the Company's financial condition, results of operations, or cash flows. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Based on the Company's scoping assessment, ASU 2016-13 will primarily impact trade receivables. The adoption of this new accounting standard will be done using a modified retrospective approach, and is not expected to have a material impact on the Company's financial condition, results of operations, or cash flows. This new accounting standard will be effective for the Company on April 1, 2023, with early adoption permitted. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . ASU 2018-14 updates disclosure requirements for defined benefit plans. This guidance will be adopted using a retrospective approach and is effective for the Company on March 31, 2021. The Company is evaluating the effect that adoption of this guidance will have on its consolidated financial statements and related disclosures. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash The following summarizes the restricted cash balance: December 31, 2019 December 31, 2018 March 31, 2019 Compensating balance for short-term borrowings $ 940 $ 1,220 $ 1,225 Escrow 1,363 2,314 2,894 Other 445 3,190 $ 1,648 Total $ 2,748 $ 6,724 $ 5,767 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company derives revenue from contracts with customers, primarily from the sale of processed tobacco and fees charged for processing and related services to the manufacturers of tobacco products. The following disaggregates sales and other operating revenues by the Company's significant revenue streams: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Leaf - North America: Product revenue $ 39,148 $ 60,280 $ 114,548 $ 152,725 Processing and other revenues 13,868 17,570 24,873 29,039 Total sales and other operating revenues 53,016 77,850 139,421 181,764 Leaf - Other Regions: Product revenue 293,564 432,423 825,522 977,503 Processing and other revenues 12,936 9,296 42,316 40,752 Total sales and other operating revenues 306,500 441,719 867,838 1,018,255 Other Products and Services: Total sales and other operating revenues 3,744 4,918 15,652 10,332 Total sales and other operating revenues $ 363,260 $ 524,487 $ 1,022,911 $ 1,210,351 Product revenue is primarily processed tobacco sold to the customer. Processing and other revenues are mainly contracts to process green tobacco owned and provided by the customers. During processing, ownership remains with the customers and the Company is engaged to perform processing services. Other products and services is primarily composed of revenue from the sale of legal cannabis in Canada and e-liquids product revenue. The following summarizes activity in the allowance for doubtful accounts: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Balance, beginning of period $ (7,242) $ (7,324) $ (13,381) $ (7,055) Additions (5) (1,774) — (2,136) Write-offs — (15) 6,134 78 Balance, end of period (7,247) (9,113) (7,247) (9,113) Trade receivables 187,651 277,860 187,651 277,860 Trade receivables, net $ 180,404 $ 268,747 $ 180,404 $ 268,747 |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Accounting for Uncertainty in Income Taxes As of December 31, 2019, the Company’s unrecognized tax benefits totaled $16,331, of which $13,122 would impact the Company’s effective tax rate, if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. As of December 31, 2019, accrued interest and penalties totaled $1,235 and $756, respectively. The Company expects to continue accruing interest expense related to the unrecognized tax benefits described above. The Company may be subject to fluctuations in the unrecognized tax benefit due to currency exchange rate movements. During the nine months ended December 31, 2019, the Company reached an income tax settlement with the Kenyan Revenue Authority for $1,558 for a previously recorded uncertain tax position. In addition, a previous accrual to settle asserted issues for years 2009 to 2016 in Zimbabwe of $964 was reduced by $952 to account for the exchange rate impact of the local currency equivalent. An existing accrual for transfer pricing issues in Malawi was increased by an additional $2,772 to account for the Company's evolving negotiations with tax authorities. Also, the Company increased an existing accrual related to U.S. transition tax of $931, resulting from changes in accrued tax pools. The U.S. federal net operating loss was reduced to reflect the impacts of certain tax accounting methods on Global Intangible Low-Taxed Income ("GILTI"). The Company does not expect significant changes in the amount of its unrecognized tax benefits in the next twelve months but acknowledges circumstances can change due to unexpected developments in the law. In certain jurisdictions, tax authorities have challenged positions taken by the Company that resulted in recognizing benefits that are material to its financial statements. The Company believes it is more likely than not that it will prevail in these situations and accordingly has not recorded liabilities for these positions. The Company expects the challenged positions to be settled at a time greater than twelve months from its balance sheet date. The Company 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 December 31, 2019, the Company’s earliest open tax year for U.S. federal income tax purposes is its fiscal year ended March 31, 2017. The Company's tax attributes from prior periods remain subject to adjustment. Open tax years in state and foreign jurisdictions generally range from three six Provision for the Three and Nine Months Ended December 31, 2019 The effective tax rate for the three months ended December 31, 2019 and 2018 was 3.9% and 226.8%, respectively. The effective tax rate for the nine months ended December 31, 2019 and 2018 was (30.5)% and (65.3)%, respectively. For the three and nine months ended December 31, 2019 and 2018, the effective rate differed from the U.S. statutory rate of 21% due to the impact of non-deductible interest, net foreign exchange effects and Subpart F income. The primary differences in the effective tax rates year-over-year are the impact of net foreign exchange effects, increases in non-deductible interest, as well as Subpart F income, and variation in expected jurisdictional mix of earnings. For the nine months ended December 31, 2019, the Company's quarterly provision for income taxes has been calculated using the annual effective tax rate method (“AETR method”), which applies an estimated annual effective tax rate to pre-tax income or loss. For the nine months ended December 31, 2019, the Company recorded the net tax effects of certain discrete events, which resulted in an income tax expense of $2,252. This discrete income tax expense primarily related to the impact of changes in uncertain tax positions and changes in foreign exchange impacts. Comparable tax expense for the six months ended September 30, 2018 was calculated using the discrete method as allowed under ASC 740-270, Accounting for Income Taxes - Interim Reporting |
Guarantees
Guarantees | 9 Months Ended |
Dec. 31, 2019 | |
Guarantees [Abstract] | |
Guarantees | Guarantees In certain markets, the Company guarantees bank loans to suppliers to finance their crops. Under longer-term arrangements, the Company may also guarantee financing on suppliers’ construction of curing barns or other tobacco production assets. Guaranteed loans are generally repaid concurrent with the delivery of tobacco to the Company. The Company is obligated to repay guaranteed loans should the supplier default. If default occurs, the Company has recourse against its various suppliers and their production assets. The Company also guarantees bank loans of certain unconsolidated subsidiaries in Asia and South America. The following summarizes amounts guaranteed and the fair value of those guarantees: December 31, 2019 December 31, 2018 March 31, 2019 Amounts guaranteed (not to exceed) $ 119,342 $ 176,762 $ 143,298 Amounts outstanding under guarantee (1) 37,624 79,336 103,846 Fair value of guarantees 1,112 2,890 3,714 Amounts due to local banks on behalf of suppliers and included in accounts payable — — 18,659 |
Goodwill and Intangibles
Goodwill and Intangibles | 9 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles The following summarizes the changes in goodwill and other intangible assets: Nine Months Ended December 31, 2019 Weighted Average Remaining Useful Life Beginning Gross Carrying Amount Additions Accumulated Amortization (1) Impact of Foreign Currency Translation Ending Intangible Assets, Net Intangibles subject to amortization: Customer relationships 8.88 years $ 63,980 $ — $ (32,043) $ — $ 31,937 Production and supply contracts 2.25 years 14,893 — (11,210) — 3,683 Internally developed software 3.27 years 19,917 243 (18,807) — 1,353 Licenses (2) 17.26 years 32,284 118 (3,010) 648 30,040 Trade names 6.25 years 500 — (109) — 391 Intangibles not subject to amortization: Goodwill 34,336 — — 234 34,570 Total $ 165,910 $ 361 $ (65,179) $ 882 $ 101,974 (1) Amortization expense across intangible asset classes for the nine months ended December 31, 2019 was $5,386. (2) Certain of the Company's license intangibles are subject to annual renewal. Twelve Months Ended March 31, 2019 Weighted Average Remaining Useful Life Beginning Gross Carrying Amount Additions (1) Accumulated Amortization (2) Impact of Foreign Currency Translation Ending Intangible Assets, Net Intangibles subject to amortization: Customer relationships 9.55 years $ 58,530 $ 5,450 $ (29,027) $ — $ 34,953 Production and supply contracts 2.93 years 14,893 — (10,668) — 4,225 Internally developed software 3.79 years 18,812 1,105 (18,391) — 1,526 Licenses (3) 18.08 years 30,339 2,991 (1,644) (1,046) 30,640 Trade names 7.00 years — 500 (63) — 437 Intangibles not subject to amortization: Goodwill (4) 27,546 7,174 — (384) 34,336 Total $ 150,120 $ 17,220 $ (59,793) $ (1,430) $ 106,117 (1) Additions to goodwill, customer relationships, and trade names relate to the acquisition of Humble Juice Co., LLC ("Humble Juice"). Additions to licenses relates to Canada's Island Garden ("Figr East"), Figr Norfolk, and Alliance One Specialty Products, LLC. (2) Amortization expense across intangible asset classes for the fiscal year ended March 31, 2019 was $7,943. (3) Certain of the Company's license intangibles are subject to annual renewal. (4) Goodwill activity relates to the Other Products and Services segment. The following summarizes the estimated future intangible asset amortization expense: For Fiscal Customer Production Internally Developed Software (1) Licenses Trade Names Total 2020 (excluding the nine months ended December 31, 2019) $ 1,005 $ 1,674 $ 137 $ 462 $ 16 $ 3,294 2021 4,022 1,397 435 1,847 63 7,764 2022 4,022 612 361 1,845 63 6,903 2023 4,022 — 290 1,841 63 6,216 2024 4,022 — 130 1,841 63 6,056 Thereafter 14,844 — — 22,204 123 37,171 $ 31,937 $ 3,683 $ 1,353 $ 30,040 $ 391 $ 67,404 (1) Estimated amortization expense for the internally developed software is based on costs accumulated as of December 31, 2019. These estimates will change as new costs are incurred and until the software is placed into service in all locations. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company holds variable interests in multiple entities that primarily procure or process inventory or are securitization entities. These variable interests relate to equity investments, advances, guarantees, and securitized receivables. The Company is not the primary beneficiary of the majority of its variable interests, as it does not have the power to direct the activities that most significantly impact the economic performance of the entities due to the entities’ management and board of directors' structure. As a result, the majority of these variable interest entities are not consolidated. The Company holds a majority voting interest and is the primary beneficiary of its variable interest in Humble Juice, a consolidated entity for which the related intercompany accounts and transactions have been eliminated. The following summarizes the Company's financial relationships with its unconsolidated variable interest entities: December 31, 2019 December 31, 2018 March 31, 2019 Investment in variable interest entities $ 63,320 $ 62,156 $ 64,281 Advances to variable interest entities 11,301 2,817 3,273 Guaranteed amounts to variable interest entities (not to exceed) 61,566 73,278 67,027 The Company's investment in and advances to unconsolidated variable interest entities are classified as investments in unconsolidated affiliates and accounts receivable, related parties, respectively, in the condensed consolidated balance sheets. The Company's maximum exposure to loss in these variable interest entities is represented by the investments, advances, guarantees, and the deferred purchase price on the sale of securitized receivables as disclosed in "Note 19. Securitized Receivables" . |
Segment Information
Segment Information | 9 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's operations are managed and reported in ten operating segments that are organized by product category and geographic area and aggregated into three reportable segments for financial reporting purposes: Leaf - North America, Leaf - Other Regions, and Other Products and Services. These segment groupings are consistent with information used by the chief operating decision maker to assess performance and allocate resources. The types of products and services from which each reportable segment derives its revenues are as follows: • Leaf - North America ships tobacco to manufacturers of cigarettes and other consumer tobacco products around the world. Leaf - North America is more highly concentrated on processing and other activities compared to the rest of the world. • Leaf - Other Regions ships tobacco to manufacturers of cigarettes and other consumer tobacco products around the world. Leaf - Other Regions sells a small amount of processed but un-threshed flue-cured and burley tobacco in loose-leaf and bundle form to certain customers. • Other Products and Services primarily involves the sale of cannabis and e-liquid products. Cannabis was legalized for adult use in Canada on October 17, 2018. The cannabis products produced by certain of the Company's subsidiaries have been sold in the Canadian market, primarily to municipally-owned retailers. E-liquids products are sold to consumers via e-commerce platforms and other distribution channels, and retail stores. The following summarizes operating results and assets by segment: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Sales and other operating revenues: Leaf - North America $ 53,016 $ 77,850 $ 139,421 $ 181,764 Leaf - Other Regions 306,500 441,719 867,838 1,018,255 Other Products and Services 3,744 4,918 15,652 10,332 Total sales and other operating revenues $ 363,260 $ 524,487 $ 1,022,911 $ 1,210,351 Operating income (loss): Leaf - North America $ 2,609 $ 2,870 $ 5,880 $ 7,888 Leaf - Other Regions 25,508 44,133 59,016 70,010 Other Products and Services (19,974) (7,648) (49,219) (21,265) Total operating income $ 8,143 $ 39,355 $ 15,677 $ 56,633 December 31, 2019 December 31, 2018 March 31, 2019 Segment assets: Leaf - North America $ 319,433 $ 318,295 $ 243,248 Leaf - Other Regions 1,408,705 1,598,879 1,488,226 Other Products and Services 220,909 106,545 127,801 Total assets $ 1,949,047 $ 2,023,719 $ 1,859,275 |
Loss Per Share
Loss Per Share | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share The following summarizes the computation of loss per share: Three Months Ended December 31, Nine Months Ended December 31, (in thousands, except per share data) 2019 2018 2019 2018 Basic loss per share: Net loss attributable to Pyxus International, Inc. $ (21,993) $ (5,095) $ (100,308) $ (60,487) Shares: Weighted average number of shares outstanding (1) 9,166 9,068 9,137 9,048 Basic loss per share $ (2.40) $ (0.56) $ (10.98) $ (6.69) Diluted loss per share: Net loss attributable to Pyxus International, Inc. $ (21,993) $ (5,095) $ (100,308) $ (60,487) Shares: Weighted average number of shares outstanding (1) 9,166 9,068 9,137 9,048 Plus: Restricted shares issued and shares applicable to stock options and restricted stock units, net of shares assumed to be purchased from proceeds at average market price (2) — — — — Adjusted weighted average number of shares outstanding 9,166 9,068 9,137 9,048 Diluted loss per share $ (2.40) $ (0.56) $ (10.98) $ (6.69) (1) 785 shares of common stock were owned by a wholly owned subsidiary as of December 31, 2019 and 2018. (2) Outstanding restricted shares, shares applicable to stock options, and restricted stock units are excluded because their inclusion would have an antidilutive effect on the loss per share. The dilutive shares would have been 10 and 66 for the three months ended December 31, 2019 and 2018, respectively, and 28 and 62 for the nine months ended December 31, 2019 and 2018, respectively. Certain potentially dilutive options were not included in the computation of loss per diluted share because their effect would be antidilutive. Potential common shares are also considered antidilutive in the event of a net loss. The number of potential shares outstanding that were considered antidilutive and that were excluded from the computation of diluted loss per share, weighted for the portion of the period they were outstanding were as follows: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Antidilutive stock options and other awards 452 427 450 427 Antidilutive stock options and other awards under stock-based compensation programs excluded based on reporting a net loss for the period — — — — Total common stock equivalents excluded from diluted loss per share 452 427 450 427 Weighted average exercise price $ 56.66 $ 60.00 $ 56.98 $ 60.00 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following summarizes the Company's stock-based compensation expense related to awards granted under its various employee and non-employee stock incentive plans: Three Months Ended December 31, Nine Months Ended December 31, (in thousands) 2019 2018 2019 2018 Stock-based compensation expense $ 242 $ 402 $ 1,054 $ 1,155 Stock-based compensation expense payable in cash — — — — The following summarizes the Company's stock-based compensation awards: Three Months Ended December 31, Nine Months Ended December 31, (in thousands, except grant date fair value) 2019 2018 2019 2018 Restricted stock Number granted 11 13 39 26 Grant date fair value $ 8.94 $ 11.86 $ 12.41 $ 17.04 Restricted stock units Number granted — 5 2 66 Grant date fair value $ — $ 14.32 $ 18.29 $ 15.94 Performance-based stock units Number granted — — — 30 Grant date fair value $ — $ — $ — $ 16.00 three |
Contingencies and Other Informa
Contingencies and Other Information | 9 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Other Information | Contingencies and Other Information Brazilian Tax Credits The government in the Brazilian State of Parana ("Parana") issued a tax assessment on October 26, 2007 with respect to local intrastate trade tax credits that result primarily from tobacco transferred between states within Brazil. The assessment for intrastate trade tax credits taken is $3,268 and the total assessment including penalties and interest at December 31, 2019 is $11,598. On March 18, 2014, the government in Brazilian State of Santa Catarina also issued a tax assessment with respect to local intrastate trade tax credits that result primarily from tobacco transferred between states within Brazil. The assessment for intrastate trade tax credits taken is $2,827 and the total assessment including penalties and interest at December 31, 2019 is $7,551. The Company believes it has properly complied with Brazilian law and will contest any assessment through the judicial process. Should the Company lose in the judicial process, the loss of the intrastate trade tax credits would have a material impact on the financial statements of the Company. The Company also has local intrastate trade tax credits in the Brazil State of Rio Grande do Sul and the State of Santa Catarina. These jurisdictions permit the sale or transfer of excess credits to third parties, however approval must be obtained from the tax authorities. The Company has agreements with the state governments regarding the amounts and timing of credits that can be sold. The tax credits have a carrying value of $11,313. The intrastate trade tax credits are monitored for impairment in future periods based on market conditions and the Company’s ability to use or sell the tax credits. In 1969, the Brazilian government created a tax credit program that allowed companies to earn IPI tax credits (“IPI credits”) based on the value of their exports. The government began to phase out this program in 1979, which resulted in numerous lawsuits between taxpayers and the Brazilian government. The Company has a long legal history with respect to credits it earned while the IPI credit program was in effect. In 2001, the Company won a claim related to certain IPI credits it earned between 1983 and 1990. The Brazilian government appealed this decision and numerous rulings and appeals were rendered on behalf of both the government and the Company from 2001 through 2013. Because of this favorable ruling, the Company began to use these earned IPI credits to offset federal taxes in 2004 and 2005, until it received a Judicial Order to suspend the IPI offsetting in 2005. The value of the federal taxes offset in 2004 and 2005 was $24,142 and the Company established a reserve on these credits at the time of offsetting as they were not yet realizable due to the legal uncertainty that existed. Specifically, the Company extinguished other federal tax liabilities using IPI credits and recorded a liability in Pension, Postretirement and Other Long-Term Liabilities to reflect that the credits were not realizable at that time due to the prevalent legal uncertainty. On March 7, 2013, the Brazilian Supreme Court rendered a final decision in favor of the Company that recognized the validity of the IPI credits and secured the Company's right to benefit from the IPI credits earned from March 1983 to October 1990. This final decision expressly stated the Company has the right to the IPI credits. The Company estimates the total amount of the IPI credits to be approximately $94,316 at March 31, 2013. Since the March 2013 ruling definitively (without the government's ability to appeal) granted the Company the ownership of the IPI credits generated between 1983 and 1990, the Company believes the amount of IPI credits that were used to offset other federal taxes in 2004 and 2005 are realizable beyond a reasonable doubt. Accordingly, at March 31, 2013, the Company recorded the $24,142 IPI credits it realized in the Statements of Consolidated Operations in Other Income. No further benefit has been recognized pending the outcome of the judicial procedure to ascertain the final amount as those amounts have not yet been realized. Other Matters On October 8, 2019, the City of New York filed a complaint in U.S. District Court against 24 e-liquids companies, including the Company’s Humble Juice subsidiary, seeking an injunction to prevent sales of e-cigarette products to residents of New York City without adequate age-verification systems and to prohibit marketing e-cigarettes to New York City residents under the age of 21, as well as statutory damages and compensation to the city for the costs of abating underage e-cigarette use. On December 16, 2019, Humble Juice filed its answer to the compliant, denying that it lacked adequate age-verification systems and the allegations underlying the City's claim for relief, as well as asserting several affirmative defenses. Humble Juice intends to vigorously defend this matter. In addition to the above-mentioned matters, certain of the Company’s subsidiaries are involved in other litigation or legal matters incidental to their business activities, including tax matters. While the outcome of these matters cannot be predicted with certainty, the Company is vigorously defending them and does not currently expect that any of them will have a material adverse effect on its business or financial position. However, should one or more of these matters be resolved in a manner adverse to its current expectation, the effect on the Company’s results of operations for a particular fiscal reporting period could be material. Asset Retirement Obligations In accordance with generally accepted accounting principles, the Company records all known asset retirement obligations (“ARO”) for which the liability can be reasonably estimated. Currently, it has identified an ARO associated with one of its facilities that requires it to restore the land to its initial condition upon vacating the facility. The Company has not recognized a liability under generally accepted accounting principles for this ARO because the fair value of restoring the land at this site cannot be reasonably estimated since the settlement date is unknown at this time. The settlement date is unknown because the land restoration is not required until title is returned to the government, and the Company has no current or future plans to return the title. The Company will recognize a liability in the period in which sufficient information is available to reasonably estimate its fair value. |
Debt Arrangements
Debt Arrangements | 9 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Arrangements | Debt Arrangements The following summarizes debt and notes payable: December 31, 2019 Outstanding Lines and March 31, December 31, Letters Interest (in thousands) 2019 2019 Available Rate Senior secured credit facility: ABL facility (1) $ — $ — $ 60,000 — % (2) Senior notes: 8.5% senior secured first lien notes due 2021 (3) 270,883 272,369 — 8.5 % 9.875% senior secured second lien notes due 2021 (4) 627,147 629,821 — 9.9 % Other long-term debt 688 596 — 5.2 % (2) Notes payable to banks (5) 428,961 580,346 258,436 7.1 % (2) Total debt $ 1,327,679 $ 1,483,132 $ 318,436 Short-term $ 428,961 $ 580,346 Long-term: Current portion of long-term debt $ 332 $ 325 Long-term debt 898,386 902,461 $ 898,718 $ 902,786 Letters of credit $ 5,399 $ 7,151 5,740 Total credit available $ 324,176 (1) As of December 31, 2019, the full amount of the ABL facility was available. Borrowing is permitted under the ABL facility only to the extent that, after consideration of the application of the proceeds of the borrowing, the Company’s unrestricted cash and cash equivalents would not exceed $180 million. (2) Weighted average rate for the trailing twelve months ended December 31, 2019. (3) Repayment of $272,369 is net of original issue discount of $826 and unamortized debt issuance of $1,805. Total repayment will be $275,000. (4) Repayment of $629,821 is net of original issue discount of $3,328 and unamortized debt issuance of $2,537. Total repayment will be $635,686. (5) Primarily foreign seasonal lines of credit. The indentures governing the Company's outstanding 8.5% senior secured first lien notes due 2021 and its outstanding 9.875% senior secured second lien notes due 2021 contain restrictions, subject to certain exceptions and baskets, that prohibit the payment of dividends and other distributions if the Company fails to satisfy a ratio of consolidated EBITDA to fixed charges of at least 2.0 to 1.0. As of December 31, 2019, the Company did not satisfy this fixed charge coverage ratio. The Company may not satisfy this ratio from time to time and failure to meet this fixed charge coverage ratio does not constitute an event of default. ABL Facility |
Leases
Leases | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LeasesThe Company has operating leases for land, buildings, automobiles, and other equipment that expire at various dates through 2040. Leases for real estate generally have initial terms ranging from 2 to 15 years, excluding renewal options. Leases for equipment typically have initial terms ranging from 2 to 5 years excluding renewal options. Most leases have fixed rentals, with many of the real estate leases requiring additional payments for real estate taxes. These lease terms may include optional renewals, terminations or purchases, which are considered in the Company’s assessments when such options are reasonably certain to be exercised. The following summarizes weighted-average information associated with the measurement of remaining operating lease as of December 31, 2019: Weighted-average remaining lease term 5.2 years Weighted-average discount rate 9.6% The following summarizes lease costs for operating leases: Three Months Ended Nine Months Ended December 31, 2019 December 31, 2019 Operating lease costs $ 4,268 $ 12,567 Variable and short-term lease costs 1,830 5,089 Total lease costs $ 6,098 $ 17,656 The following summarizes supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities: Three Months Ended Nine Months Ended December 31, 2019 December 31, 2019 Operating cash flows impact - operating leases $ 3,051 $ 11,864 Right-of-use assets obtained in exchange for new operating leases 1,111 5,504 The following reconciles maturities of operating lease liabilities to the lease liabilities reflected in the condensed consolidated balance sheet as of December 31, 2019: 2020 (excluding the nine months ended December 31, 2019) $ 4,458 2021 13,452 2022 10,741 2023 6,904 2024 5,662 Thereafter 12,545 Total future minimum lease payments 53,762 Less: amounts related to imputed interest 11,523 Present value of future minimum lease payments 42,239 Less: operating lease liabilities, current 14,033 Operating lease liabilities, non-current $ 28,206 The Company continuously monitors and may negotiate contract amendments that include extensions or modifications to existing leases. The following presents the future minimum rental commitments under noncancelable operating leases as of March 31, 2019: 2020 $ 15,651 2021 10,554 2022 8,483 2023 6,735 2024 5,356 Thereafter 7,324 Total $ 54,103 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial InstrumentsThe Company uses forward or option currency contracts to protect against volatility associated with certain non-U.S. dollar denominated forecasted transactions. These contracts are for green tobacco purchases, processing costs, and selling, general, and administrative costs. As of December 31, 2019 and 2018, accumulated other comprehensive loss includes $241 and $2,307, net of tax of $64 and $613, for unrealized losses related to designated cash flow hedges, respectively. The Company recorded losses of $729 and $3,189 in its cost of goods and services sold for the three and nine months ended December 31, 2019, respectively. The Company recorded a current derivative asset of $1,029 as of December 31, 2018, included in the condensed consolidated balance sheets. There were no derivatives contracts outstanding as of December 31, 2019. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The following summarizes the components of net periodic benefit cost: Pension Benefits Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Operating expenses: Service cost $ 117 $ 120 $ 352 $ 359 Interest expense: Interest expense 1,029 1,155 3,088 3,464 Expected return on plan assets (1,121) (1,286) (3,363) (3,858) Amortization of prior service cost 10 11 31 32 Settlement loss (1) 271 91 819 609 Actuarial loss 456 422 1,368 1,267 Net periodic pension cost $ 762 $ 513 $ 2,295 $ 1,873 (1) During the three and nine months ended December 31, 2019 and 2018, the Company's cash payments activity triggered settlement accounting. Settlement losses are recorded in interest expense. Other Postretirement Benefits Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Operating expenses: Service cost $ 2 $ 4 $ 5 $ 11 Interest expense: Interest expense 82 83 246 248 Amortization of prior service cost (177) (177) (531) (532) Actuarial loss 109 109 328 328 Net periodic pension cost $ 16 $ 19 $ 48 $ 55 The following summarizes contributions to pension plans and postretirement health and life insurance benefits: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Contributions made during the period $ 1,277 $ 1,399 $ 4,457 $ 4,890 Contributions expected for the remainder of the fiscal year 2,665 2,357 Total $ 7,122 $ 7,247 |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: December 31, 2019 December 31, 2018 March 31, 2019 Processed tobacco $ 703,124 $ 698,092 $ 455,163 Unprocessed tobacco 116,456 107,206 183,607 Other tobacco related 20,960 19,771 26,385 Other (1) 31,310 2,713 3,016 Total $ 871,850 $ 827,782 $ 668,171 (1) Represents inventory from the other products and services segment. |
Other Comprehensive Loss
Other Comprehensive Loss | 9 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Loss | Other Comprehensive Loss The changes in accumulated other comprehensive loss and the related tax effect are due to pension and other postretirement benefits and derivatives activity and reclassifications to the condensed consolidated statements of operations, as shown on the condensed consolidated statements of comprehensive loss. The following summarizes pension and other postretirement benefits and derivatives that were reclassified from accumulated other comprehensive loss to interest expense and cost of goods and services sold within the condensed consolidated statement of operations: Three Months Ended December 31, Nine Months Ended December 31, Affected Line Item in the Condensed Consolidated 2019 2018 2019 2018 Statements of Operations Pension and other postretirement benefits*: Actuarial loss $ 560 $ 534 $ 1,680 $ 1,601 Amortization of prior service cost (165) (167) (495) (502) Amounts reclassified from accumulated other comprehensive loss to net income, gross 395 367 1,185 1,099 Tax effects of amounts reclassified from accumulated other comprehensive loss to net income (83) (82) (251) (246) Amounts reclassified from accumulated other comprehensive loss to net income, net $ 312 $ 285 $ 934 $ 853 Interest expense Three Months Ended December 31, Nine Months Ended December 31, Affected Line Item in the Condensed Consolidated 2019 2018 2019 2018 Statements of Operations Derivatives: Losses reclassified to cost of goods sold $ 729 $ 458 $ 3,189 $ 1,445 Amounts reclassified from accumulated other comprehensive loss to net income, gross 729 458 3,189 1,445 Tax effects of amounts reclassified from accumulated other comprehensive loss to net income (153) (96) (669) (303) Amounts reclassified from accumulated other comprehensive loss to net income, net $ 576 $ 362 $ 2,520 $ 1,142 Cost of goods and services sold *Amounts are included in net periodic benefit costs for pension and other postretirement benefits. See "Note 16. Pension and Other Postretirement Benefits" for additional information. |
Securitized Receivables
Securitized Receivables | 9 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Securitized Receivables | Securitized Receivables The Company sells trade receivables to unaffiliated financial institutions under three accounts receivable securitization facilities. Under the first facility, the Company continuously sells a designated pool of trade receivables to a special purpose entity, which sells 100% of the receivables to an unaffiliated financial institution. As of December 31, 2019, the investment limit under the first facility was $125,000 of trade receivables. Under the second and third facilities, the Company offers receivables for sale to unaffiliated financial institutions, which are then subject to acceptance by the unaffiliated financial institutions. As of December 31, 2019, the investment limit under the second facility was $125,000 of trade receivables. As of December 31, 2019, the investment limit under the third facility was variable based on qualifying sales. As the servicer of these facilities, the Company may receive funds that are due to the unaffiliated financial institutions, which are net settled on the next settlement date. As a result of the net settlement, trade and other receivables, net in the condensed consolidated balance sheets has been reduced by $7,504 and $5,208 as of December 31, 2019 and March 31, 2019, respectively, and increased by $78 as of December 31, 2018. The following summarizes the accounts receivable securitization information: December 31, March 31, 2019 2018 2019 Receivables outstanding in facility $ 69,741 $ 92,445 $ 210,672 Beneficial interests 14,385 24,659 40,332 Servicing liability 5 26 90 Nine Months Ended December 31, 2019 2018 Cash proceeds for the period ended: Cash purchase price $ 331,187 $ 416,526 Deferred purchase price 174,741 171,565 Service fees 355 435 Total $ 506,283 $ 588,526 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following summarizes the financial assets and liabilities measured at fair value on a recurring basis: December 31, 2019 December 31, 2018 March 31, 2019 Total Total Total Level 2 Level 3 at Fair Value Level 2 Level 3 at Fair Value Level 2 Level 3 at Fair Value Financial Assets: Derivative financial instruments $ — $ — $ — $ 1,029 $ — $ 1,029 $ 186 $ — $ 186 Securitized beneficial interests — 14,385 14,385 — 24,659 24,659 — 40,332 40,332 Total assets $ — $ 14,385 $ 14,385 $ 1,029 $ 24,659 $ 25,688 $ 186 $ 40,332 $ 40,518 Financial Liabilities: Long-term debt $ 558,401 $ 620 $ 559,021 $ 742,047 $ 708 $ 742,755 $ 830,082 $ 703 $ 830,785 Guarantees — 1,112 1,112 — 2,890 2,890 — 3,714 3,714 Total liabilities $ 558,401 $ 1,732 $ 560,133 $ 742,047 $ 3,598 $ 745,645 $ 830,082 $ 4,417 $ 834,499 Level 2 measurements • Debt: The fair value of debt is based on the market price for similar financial instruments or model-derived valuations with observable inputs. The primary inputs to the valuation include market expectations, the Company's credit risk, and the contractual terms of the debt instrument. • Derivatives: The fair value of derivatives is determined using the discounted cash flow analysis of the expected future cash flows. The primary inputs to the valuation include forward yield curves, implied volatilities, LIBOR rates, and credit valuation adjustments. Level 3 measurements • Guarantees: The fair value of guarantees is determined using the discounted cash flow analysis of the expected future cash flows or historical loss rates. The primary inputs to the discounted cash flow analysis include market interest rates ranging between 15.0% to 75.8% and the Company’s historical loss rates ranging between 2.2% to 10.0% as of December 31, 2019. The historical loss rate was weighted by the principal balance of the loans. • Securitized beneficial interests: The fair value of securitized beneficial interests is determined using the present value of future expected cash flows. The primary inputs to this valuation include payment speeds of 77 to 80 days and discount rates of 1.7% to 4.3% as of December 31, 2019. The discount rate was weighted by the outstanding interest. Payment speed was weighted by the average days outstanding. The following summarizes the reconciliation of changes in Level 3 instruments measured on a recurring basis: Three Months Ended December 31, 2019 Nine Months Ended December 31, 2019 Securitized Beneficial Interests Guarantees Securitized Beneficial Interests Guarantees Beginning balance $ 25,579 $ 1,026 $ 40,332 $ 3,714 Issuances of sales of receivables/guarantees 42,857 478 151,150 1,323 Settlements (53,158) (408) (174,000) (3,937) (Losses) gains recognized in earnings (893) 16 (3,097) 12 Ending balance $ 14,385 $ 1,112 $ 14,385 $ 1,112 Three Months Ended December 31, 2018 Nine Months Ended December 31, 2018 Securitized Beneficial Interests Guarantees Securitized Beneficial Interests Guarantees Beginning balance $ 17,512 $ 1,861 $ 48,715 $ 5,864 Issuances of sales of receivables/guarantees 71,047 1,585 161,943 2,988 Settlements (62,432) (569) (183,450) (6,109) (Losses) gains recognized in earnings (1,468) 13 (2,549) 147 Ending balance $ 24,659 $ 2,890 $ 24,659 $ 2,890 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company engages in transactions with related parties primarily for the procuring and processing of inventory. The following summarizes sales and purchases with related parties: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Sales $ 1,535 $ 475 $ 15,312 $ 14,238 Purchases 41,116 46,281 96,252 98,784 The Company’s accounts receivable, notes receivable, and accounts payable balances with related parties, as presented on the consolidated balance sheets, relate to transactions with equity method investments located in Asia, South America, North America, and Europe which grow, purchase, process, and sell tobacco, hemp, or produce consumable e-liquids. |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The following summarizes the Company's equity method investments as of December 31, 2019: Entity Name Location Primary Purpose The Company's Ownership Percentage Basis Difference Adams International Ltd. Thailand purchase and process tobacco 49 % — Alliance One Industries India Private Ltd. India purchase and process tobacco 49 % — China Brasil Tobacos Exportadora SA Brazil purchase and process tobacco 49 % 5,841 Criticality LLC U.S. extraction of cannabidiol from industrial hemp 40 % 881 Nicotine River, LLC U.S. produce consumable e-liquids 40 % 1,902 Oryantal Tütün Paketleme Sanayi ve Ticaret A.Ş. Turkey process tobacco 50 % — Purilum, LLC U.S. produce flavor formulations and consumable e-liquids 50 % — Siam Tobacco Export Company Thailand purchase and process tobacco 49 % — The following summarizes financial information for these equity method investments: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Operations statement: Sales $ 61,515 $ 128,731 $ 256,885 $ 221,938 Gross profit 9,462 20,705 44,235 37,531 Net income 1,506 10,433 16,599 16,009 Company's dividends received 267 — 6,841 5,556 December 31, 2019 2018 March 31, 2019 Balance sheet: Current assets $ 166,989 $ 235,951 $ 152,661 Property, plant, and equipment and other assets 57,320 52,233 53,103 Current liabilities 103,622 174,688 89,791 Long-term obligations and other liabilities 6,054 3,320 3,222 Of the amounts presented above, the following summarizes financial information for China Brasil Tobacos Exportadora SA ("CBT"): Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Operations statement: Sales $ 22,521 $ 78,405 $ 158,955 $ 116,486 Gross profit 3,338 13,492 25,359 19,471 Net income 1,041 8,918 11,929 10,638 Net income attributable to CBT 510 4,370 5,845 5,213 |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 9 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges The Company announced a cost-saving initiative and restructuring plan to re-purpose its Argentinian subsidiary for storage and special projects during the quarter ended December 31, 2019, with tobacco processing to be provided by a third party going forward. Total costs related to severance for affected employees, and impairment and other one-time costs associated with fixed assets are estimated to be $4,300 and $141, respectively, and are expected to be incurred by March 31, 2020. For the three months ended December 31, 2019, the Company incurred $621 and $141 for severance and impairment related charges, respectively. During the fiscal year ended March 31, 2019, the Company incurred costs associated with the closure of a processing facility in the Leaf - Other Regions segment in order to process tobacco in the affected area under a third-party processing arrangement going forward, the consolidation of the Company's U.S. green tobacco processing operations into its Wilson, North Carolina facility, and the re-purposing of its Farmville, North Carolina facility for storage and special projects. The following summarizes the Company's restructuring and asset impairment charges: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Employee separation charges $ 531 $ 1,122 $ 632 $ 2,499 Asset impairment and other non-cash charges 141 545 260 891 Restructuring and asset impairment charges $ 672 $ 1,667 $ 892 $ 3,390 The following summarizes the activity in the restructuring accrual for employee separation and other cash charges recorded in the Company's Leaf - North America and Leaf - Other Regions segments: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Leaf - North America Leaf - Other Regions Leaf - North America Leaf - Other Regions Leaf - North America Leaf - Other Regions Leaf - North America Leaf - Other Regions Beginning balance $ 266 $ 214 $ 107 $ 889 $ 1,621 $ 222 $ — $ 107 Period charges — 531 892 230 8 624 1,139 1,360 Payments (251) (646) (73) (328) (1,614) (747) (213) (676) Ending balance $ 15 $ 99 $ 926 $ 791 $ 15 $ 99 $ 926 $ 791 The following summarizes the asset impairment and other non-cash charges recorded in the Company's Leaf - North America and Leaf - Other Regions segments: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Leaf - North America $ — $ 545 $ — $ 545 Leaf - Other Regions 141 — 260 346 Total $ 141 $ 545 $ 260 $ 891 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements represent the consolidation of Pyxus International, Inc. (the "Company" or "Pyxus") and all companies that Pyxus directly or indirectly controls, either through majority ownership or otherwise. These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, the normal and recurring adjustments necessary for fair statement of financial position, results of operations, and cash flows at the dates and for the periods presented have been included. Intercompany accounts and transactions have been eliminated. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2019. The year-end condensed balance sheet data was derived from the audited financial statements. Due to the seasonal nature of the Company’s business, the results of operations for a fiscal quarter are not necessarily indicative of the operating results that may be attained for other quarters or a full fiscal year. |
Leases | Leases The Company measures right-of-use assets and related lease liabilities based on the present value of remaining lease payments, including in-substance fixed payments, the current payment amount when payments depend on an index or rate (e.g., inflation adjustments, market renewals), and the amount the Company believes is probable to be paid to the lessor under residual value guarantees, when applicable. Lease contracts may include fixed payments for non-lease components, such as maintenance, which are included in the measurement of lease liabilities for certain asset classes based on the Company’s election to combine lease and non-lease components. The Company does not recognize short-term leases on the consolidated balance sheet. As applicable borrowing rates are not typically implied within the lease arrangements, the Company discounts lease payments based on its estimated incremental borrowing rate at lease commencement, or modification, which is based on the Company’s estimated credit rating, the lease term at commencement, and the contract currency of the lease arrangement. |
Segments | Segments During the three months ended December 31, 2018, the Company realigned its reportable segments to reflect changes to how the business is managed and results are reviewed by the Company's chief operating decision maker. In connection with the "One Tomorrow Transformation" initiative, the Company changed its organizational structure to support its diversified business lines. Prior to the realignment, the Company assessed financial information based on geographic regions. The Company's diversification efforts have resulted in management placing emphasis on data by business line in addition to the historical focus by geography. As a result of this realignment, the reportable segments now include Leaf - North America, Leaf - Other Regions, and Other Products and Services. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation of notes receivable, related parties in the condensed consolidated balance sheets, restructuring and asset impairment charges in the condensed consolidated statement of cash flows, and the components within inventory, see "Note 17 . Inventories" for more information. |
New Accounting Standards | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2016-02, Leases (Topic 842) . Under this guidance, a lessee recognizes assets and liabilities on its balance sheet for most leases, and retains a dual model approach for assessing lease classification and recognizing expense. This guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leasing arrangements. The FASB subsequently issued updates to provide clarification on specific topics, including adoption guidance, practical expedients, and interim transition disclosure requirements. The Company adopted this guidance during the first quarter beginning April 1, 2019 under the modified retrospective approach, which does not require adjustments to comparative periods or require modified disclosures for those comparative periods. The guidance provides a number of optional practical expedients in transition. The Company elected the package of transition practical expedients. The Company implemented changes to its accounting policies, systems, and controls to align with the new guidance. There is a material impact on the consolidated balance sheet from applying this guidance, which resulted in the recognition of new right-of-use assets of $43,900 and lease liabilities of $42,064 as of April 1, 2019 associated with the Company’s operating leases. The impact on the results of operations, cash flows, and existing debt covenants is not material. The adoption of this guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from lease arrangements. See "Note 14. Leases" for more information. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies the test for goodwill impairment as it eliminates step two of the goodwill impairment test by no longer requiring an entity to compare the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under this new standard, goodwill impairment is measured as the excess of the reporting unit's carrying value over fair value, limited to the amount of goodwill. The Company will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is needed. This guidance has been early adopted by the Company as of December 31, 2019 on a prospective basis. The adoption of this new accounting standard did not have a material impact on the Company's financial condition, results of operations, or cash flows. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Based on the Company's scoping assessment, ASU 2016-13 will primarily impact trade receivables. The adoption of this new accounting standard will be done using a modified retrospective approach, and is not expected to have a material impact on the Company's financial condition, results of operations, or cash flows. This new accounting standard will be effective for the Company on April 1, 2023, with early adoption permitted. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . ASU 2018-14 updates disclosure requirements for defined benefit plans. This guidance will be adopted using a retrospective approach and is effective for the Company on March 31, 2021. The Company is evaluating the effect that adoption of this guidance will have on its consolidated financial statements and related disclosures. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Restricted Cash Balance | The following summarizes the restricted cash balance: December 31, 2019 December 31, 2018 March 31, 2019 Compensating balance for short-term borrowings $ 940 $ 1,220 $ 1,225 Escrow 1,363 2,314 2,894 Other 445 3,190 $ 1,648 Total $ 2,748 $ 6,724 $ 5,767 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated by Major Source | The following disaggregates sales and other operating revenues by the Company's significant revenue streams: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Leaf - North America: Product revenue $ 39,148 $ 60,280 $ 114,548 $ 152,725 Processing and other revenues 13,868 17,570 24,873 29,039 Total sales and other operating revenues 53,016 77,850 139,421 181,764 Leaf - Other Regions: Product revenue 293,564 432,423 825,522 977,503 Processing and other revenues 12,936 9,296 42,316 40,752 Total sales and other operating revenues 306,500 441,719 867,838 1,018,255 Other Products and Services: Total sales and other operating revenues 3,744 4,918 15,652 10,332 Total sales and other operating revenues $ 363,260 $ 524,487 $ 1,022,911 $ 1,210,351 |
Schedule of Allowance for Doubtful Accounts and Activity of Claims Allowances | The following summarizes activity in the allowance for doubtful accounts: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Balance, beginning of period $ (7,242) $ (7,324) $ (13,381) $ (7,055) Additions (5) (1,774) — (2,136) Write-offs — (15) 6,134 78 Balance, end of period (7,247) (9,113) (7,247) (9,113) Trade receivables 187,651 277,860 187,651 277,860 Trade receivables, net $ 180,404 $ 268,747 $ 180,404 $ 268,747 |
Guarantees (Tables)
Guarantees (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Guarantees [Abstract] | |
Schedule of Guarantees and Associated Fair Values | The following summarizes amounts guaranteed and the fair value of those guarantees: December 31, 2019 December 31, 2018 March 31, 2019 Amounts guaranteed (not to exceed) $ 119,342 $ 176,762 $ 143,298 Amounts outstanding under guarantee (1) 37,624 79,336 103,846 Fair value of guarantees 1,112 2,890 3,714 Amounts due to local banks on behalf of suppliers and included in accounts payable — — 18,659 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Asset Rollforward | The following summarizes the changes in goodwill and other intangible assets: Nine Months Ended December 31, 2019 Weighted Average Remaining Useful Life Beginning Gross Carrying Amount Additions Accumulated Amortization (1) Impact of Foreign Currency Translation Ending Intangible Assets, Net Intangibles subject to amortization: Customer relationships 8.88 years $ 63,980 $ — $ (32,043) $ — $ 31,937 Production and supply contracts 2.25 years 14,893 — (11,210) — 3,683 Internally developed software 3.27 years 19,917 243 (18,807) — 1,353 Licenses (2) 17.26 years 32,284 118 (3,010) 648 30,040 Trade names 6.25 years 500 — (109) — 391 Intangibles not subject to amortization: Goodwill 34,336 — — 234 34,570 Total $ 165,910 $ 361 $ (65,179) $ 882 $ 101,974 (1) Amortization expense across intangible asset classes for the nine months ended December 31, 2019 was $5,386. (2) Certain of the Company's license intangibles are subject to annual renewal. Twelve Months Ended March 31, 2019 Weighted Average Remaining Useful Life Beginning Gross Carrying Amount Additions (1) Accumulated Amortization (2) Impact of Foreign Currency Translation Ending Intangible Assets, Net Intangibles subject to amortization: Customer relationships 9.55 years $ 58,530 $ 5,450 $ (29,027) $ — $ 34,953 Production and supply contracts 2.93 years 14,893 — (10,668) — 4,225 Internally developed software 3.79 years 18,812 1,105 (18,391) — 1,526 Licenses (3) 18.08 years 30,339 2,991 (1,644) (1,046) 30,640 Trade names 7.00 years — 500 (63) — 437 Intangibles not subject to amortization: Goodwill (4) 27,546 7,174 — (384) 34,336 Total $ 150,120 $ 17,220 $ (59,793) $ (1,430) $ 106,117 (1) Additions to goodwill, customer relationships, and trade names relate to the acquisition of Humble Juice Co., LLC ("Humble Juice"). Additions to licenses relates to Canada's Island Garden ("Figr East"), Figr Norfolk, and Alliance One Specialty Products, LLC. (2) Amortization expense across intangible asset classes for the fiscal year ended March 31, 2019 was $7,943. (3) Certain of the Company's license intangibles are subject to annual renewal. (4) Goodwill activity relates to the Other Products and Services segment. |
Schedule of Estimated Intangible Asset Amortization Expense | The following summarizes the estimated future intangible asset amortization expense: For Fiscal Customer Production Internally Developed Software (1) Licenses Trade Names Total 2020 (excluding the nine months ended December 31, 2019) $ 1,005 $ 1,674 $ 137 $ 462 $ 16 $ 3,294 2021 4,022 1,397 435 1,847 63 7,764 2022 4,022 612 361 1,845 63 6,903 2023 4,022 — 290 1,841 63 6,216 2024 4,022 — 130 1,841 63 6,056 Thereafter 14,844 — — 22,204 123 37,171 $ 31,937 $ 3,683 $ 1,353 $ 30,040 $ 391 $ 67,404 (1) Estimated amortization expense for the internally developed software is based on costs accumulated as of December 31, 2019. These estimates will change as new costs are incurred and until the software is placed into service in all locations. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | The following summarizes the Company's financial relationships with its unconsolidated variable interest entities: December 31, 2019 December 31, 2018 March 31, 2019 Investment in variable interest entities $ 63,320 $ 62,156 $ 64,281 Advances to variable interest entities 11,301 2,817 3,273 Guaranteed amounts to variable interest entities (not to exceed) 61,566 73,278 67,027 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following summarizes operating results and assets by segment: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Sales and other operating revenues: Leaf - North America $ 53,016 $ 77,850 $ 139,421 $ 181,764 Leaf - Other Regions 306,500 441,719 867,838 1,018,255 Other Products and Services 3,744 4,918 15,652 10,332 Total sales and other operating revenues $ 363,260 $ 524,487 $ 1,022,911 $ 1,210,351 Operating income (loss): Leaf - North America $ 2,609 $ 2,870 $ 5,880 $ 7,888 Leaf - Other Regions 25,508 44,133 59,016 70,010 Other Products and Services (19,974) (7,648) (49,219) (21,265) Total operating income $ 8,143 $ 39,355 $ 15,677 $ 56,633 December 31, 2019 December 31, 2018 March 31, 2019 Segment assets: Leaf - North America $ 319,433 $ 318,295 $ 243,248 Leaf - Other Regions 1,408,705 1,598,879 1,488,226 Other Products and Services 220,909 106,545 127,801 Total assets $ 1,949,047 $ 2,023,719 $ 1,859,275 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss Per Share | The following summarizes the computation of loss per share: Three Months Ended December 31, Nine Months Ended December 31, (in thousands, except per share data) 2019 2018 2019 2018 Basic loss per share: Net loss attributable to Pyxus International, Inc. $ (21,993) $ (5,095) $ (100,308) $ (60,487) Shares: Weighted average number of shares outstanding (1) 9,166 9,068 9,137 9,048 Basic loss per share $ (2.40) $ (0.56) $ (10.98) $ (6.69) Diluted loss per share: Net loss attributable to Pyxus International, Inc. $ (21,993) $ (5,095) $ (100,308) $ (60,487) Shares: Weighted average number of shares outstanding (1) 9,166 9,068 9,137 9,048 Plus: Restricted shares issued and shares applicable to stock options and restricted stock units, net of shares assumed to be purchased from proceeds at average market price (2) — — — — Adjusted weighted average number of shares outstanding 9,166 9,068 9,137 9,048 Diluted loss per share $ (2.40) $ (0.56) $ (10.98) $ (6.69) (1) 785 shares of common stock were owned by a wholly owned subsidiary as of December 31, 2019 and 2018. (2) Outstanding restricted shares, shares applicable to stock options, and restricted stock units are excluded because their inclusion would have an antidilutive effect on the loss per share. The dilutive shares would have been 10 and 66 for the three months ended December 31, 2019 and 2018, respectively, and 28 and 62 for the nine months ended December 31, 2019 and 2018, respectively. |
Schedule of Antidilutive Securities excluded from Computation of Earnings (Loss) per Share | The number of potential shares outstanding that were considered antidilutive and that were excluded from the computation of diluted loss per share, weighted for the portion of the period they were outstanding were as follows: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Antidilutive stock options and other awards 452 427 450 427 Antidilutive stock options and other awards under stock-based compensation programs excluded based on reporting a net loss for the period — — — — Total common stock equivalents excluded from diluted loss per share 452 427 450 427 Weighted average exercise price $ 56.66 $ 60.00 $ 56.98 $ 60.00 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | The following summarizes the Company's stock-based compensation expense related to awards granted under its various employee and non-employee stock incentive plans: Three Months Ended December 31, Nine Months Ended December 31, (in thousands) 2019 2018 2019 2018 Stock-based compensation expense $ 242 $ 402 $ 1,054 $ 1,155 Stock-based compensation expense payable in cash — — — — |
Schedule of Share-based Compensation Awards | The following summarizes the Company's stock-based compensation awards: Three Months Ended December 31, Nine Months Ended December 31, (in thousands, except grant date fair value) 2019 2018 2019 2018 Restricted stock Number granted 11 13 39 26 Grant date fair value $ 8.94 $ 11.86 $ 12.41 $ 17.04 Restricted stock units Number granted — 5 2 66 Grant date fair value $ — $ 14.32 $ 18.29 $ 15.94 Performance-based stock units Number granted — — — 30 Grant date fair value $ — $ — $ — $ 16.00 |
Debt Arrangements (Tables)
Debt Arrangements (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Notes Payable | The following summarizes debt and notes payable: December 31, 2019 Outstanding Lines and March 31, December 31, Letters Interest (in thousands) 2019 2019 Available Rate Senior secured credit facility: ABL facility (1) $ — $ — $ 60,000 — % (2) Senior notes: 8.5% senior secured first lien notes due 2021 (3) 270,883 272,369 — 8.5 % 9.875% senior secured second lien notes due 2021 (4) 627,147 629,821 — 9.9 % Other long-term debt 688 596 — 5.2 % (2) Notes payable to banks (5) 428,961 580,346 258,436 7.1 % (2) Total debt $ 1,327,679 $ 1,483,132 $ 318,436 Short-term $ 428,961 $ 580,346 Long-term: Current portion of long-term debt $ 332 $ 325 Long-term debt 898,386 902,461 $ 898,718 $ 902,786 Letters of credit $ 5,399 $ 7,151 5,740 Total credit available $ 324,176 (1) As of December 31, 2019, the full amount of the ABL facility was available. Borrowing is permitted under the ABL facility only to the extent that, after consideration of the application of the proceeds of the borrowing, the Company’s unrestricted cash and cash equivalents would not exceed $180 million. (2) Weighted average rate for the trailing twelve months ended December 31, 2019. (3) Repayment of $272,369 is net of original issue discount of $826 and unamortized debt issuance of $1,805. Total repayment will be $275,000. (4) Repayment of $629,821 is net of original issue discount of $3,328 and unamortized debt issuance of $2,537. Total repayment will be $635,686. (5) Primarily foreign seasonal lines of credit. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Weighted-Average Remaining Lease Term and Discount Rates of Leases | The following summarizes weighted-average information associated with the measurement of remaining operating lease as of December 31, 2019: Weighted-average remaining lease term 5.2 years Weighted-average discount rate 9.6% |
Schedule of Lease Costs and Other Information | The following summarizes lease costs for operating leases: Three Months Ended Nine Months Ended December 31, 2019 December 31, 2019 Operating lease costs $ 4,268 $ 12,567 Variable and short-term lease costs 1,830 5,089 Total lease costs $ 6,098 $ 17,656 The following summarizes supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities: Three Months Ended Nine Months Ended December 31, 2019 December 31, 2019 Operating cash flows impact - operating leases $ 3,051 $ 11,864 Right-of-use assets obtained in exchange for new operating leases 1,111 5,504 |
Schedule of Maturities of Operating Lease Liabilities | The following reconciles maturities of operating lease liabilities to the lease liabilities reflected in the condensed consolidated balance sheet as of December 31, 2019: 2020 (excluding the nine months ended December 31, 2019) $ 4,458 2021 13,452 2022 10,741 2023 6,904 2024 5,662 Thereafter 12,545 Total future minimum lease payments 53,762 Less: amounts related to imputed interest 11,523 Present value of future minimum lease payments 42,239 Less: operating lease liabilities, current 14,033 Operating lease liabilities, non-current $ 28,206 |
Schedule of Future Minimum Rental Commitments under Noncancelable Operating Leases | The following presents the future minimum rental commitments under noncancelable operating leases as of March 31, 2019: 2020 $ 15,651 2021 10,554 2022 8,483 2023 6,735 2024 5,356 Thereafter 7,324 Total $ 54,103 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The following summarizes the components of net periodic benefit cost: Pension Benefits Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Operating expenses: Service cost $ 117 $ 120 $ 352 $ 359 Interest expense: Interest expense 1,029 1,155 3,088 3,464 Expected return on plan assets (1,121) (1,286) (3,363) (3,858) Amortization of prior service cost 10 11 31 32 Settlement loss (1) 271 91 819 609 Actuarial loss 456 422 1,368 1,267 Net periodic pension cost $ 762 $ 513 $ 2,295 $ 1,873 (1) During the three and nine months ended December 31, 2019 and 2018, the Company's cash payments activity triggered settlement accounting. Settlement losses are recorded in interest expense. Other Postretirement Benefits Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Operating expenses: Service cost $ 2 $ 4 $ 5 $ 11 Interest expense: Interest expense 82 83 246 248 Amortization of prior service cost (177) (177) (531) (532) Actuarial loss 109 109 328 328 Net periodic pension cost $ 16 $ 19 $ 48 $ 55 |
Schedule of Contributions to Pensions Plans and Postretirement Health and Life Insurance Benefits | The following summarizes contributions to pension plans and postretirement health and life insurance benefits: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Contributions made during the period $ 1,277 $ 1,399 $ 4,457 $ 4,890 Contributions expected for the remainder of the fiscal year 2,665 2,357 Total $ 7,122 $ 7,247 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, 2019 December 31, 2018 March 31, 2019 Processed tobacco $ 703,124 $ 698,092 $ 455,163 Unprocessed tobacco 116,456 107,206 183,607 Other tobacco related 20,960 19,771 26,385 Other (1) 31,310 2,713 3,016 Total $ 871,850 $ 827,782 $ 668,171 (1) Represents inventory from the other products and services segment. |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Components Reclassified from Accumulated Other Comprehensive Loss to Earnings | The following summarizes pension and other postretirement benefits and derivatives that were reclassified from accumulated other comprehensive loss to interest expense and cost of goods and services sold within the condensed consolidated statement of operations: Three Months Ended December 31, Nine Months Ended December 31, Affected Line Item in the Condensed Consolidated 2019 2018 2019 2018 Statements of Operations Pension and other postretirement benefits*: Actuarial loss $ 560 $ 534 $ 1,680 $ 1,601 Amortization of prior service cost (165) (167) (495) (502) Amounts reclassified from accumulated other comprehensive loss to net income, gross 395 367 1,185 1,099 Tax effects of amounts reclassified from accumulated other comprehensive loss to net income (83) (82) (251) (246) Amounts reclassified from accumulated other comprehensive loss to net income, net $ 312 $ 285 $ 934 $ 853 Interest expense Three Months Ended December 31, Nine Months Ended December 31, Affected Line Item in the Condensed Consolidated 2019 2018 2019 2018 Statements of Operations Derivatives: Losses reclassified to cost of goods sold $ 729 $ 458 $ 3,189 $ 1,445 Amounts reclassified from accumulated other comprehensive loss to net income, gross 729 458 3,189 1,445 Tax effects of amounts reclassified from accumulated other comprehensive loss to net income (153) (96) (669) (303) Amounts reclassified from accumulated other comprehensive loss to net income, net $ 576 $ 362 $ 2,520 $ 1,142 Cost of goods and services sold *Amounts are included in net periodic benefit costs for pension and other postretirement benefits. See "Note 16. Pension and Other Postretirement Benefits" for additional information. |
Securitized Receivables (Tables
Securitized Receivables (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Schedule of Accounts Receivable Securitization Information | The following summarizes the accounts receivable securitization information: December 31, March 31, 2019 2018 2019 Receivables outstanding in facility $ 69,741 $ 92,445 $ 210,672 Beneficial interests 14,385 24,659 40,332 Servicing liability 5 26 90 Nine Months Ended December 31, 2019 2018 Cash proceeds for the period ended: Cash purchase price $ 331,187 $ 416,526 Deferred purchase price 174,741 171,565 Service fees 355 435 Total $ 506,283 $ 588,526 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Recurring Fair Value Measurements | The following summarizes the financial assets and liabilities measured at fair value on a recurring basis: December 31, 2019 December 31, 2018 March 31, 2019 Total Total Total Level 2 Level 3 at Fair Value Level 2 Level 3 at Fair Value Level 2 Level 3 at Fair Value Financial Assets: Derivative financial instruments $ — $ — $ — $ 1,029 $ — $ 1,029 $ 186 $ — $ 186 Securitized beneficial interests — 14,385 14,385 — 24,659 24,659 — 40,332 40,332 Total assets $ — $ 14,385 $ 14,385 $ 1,029 $ 24,659 $ 25,688 $ 186 $ 40,332 $ 40,518 Financial Liabilities: Long-term debt $ 558,401 $ 620 $ 559,021 $ 742,047 $ 708 $ 742,755 $ 830,082 $ 703 $ 830,785 Guarantees — 1,112 1,112 — 2,890 2,890 — 3,714 3,714 Total liabilities $ 558,401 $ 1,732 $ 560,133 $ 742,047 $ 3,598 $ 745,645 $ 830,082 $ 4,417 $ 834,499 |
Schedule of Assets Measured on Recurring Basis | The following summarizes the reconciliation of changes in Level 3 instruments measured on a recurring basis: Three Months Ended December 31, 2019 Nine Months Ended December 31, 2019 Securitized Beneficial Interests Guarantees Securitized Beneficial Interests Guarantees Beginning balance $ 25,579 $ 1,026 $ 40,332 $ 3,714 Issuances of sales of receivables/guarantees 42,857 478 151,150 1,323 Settlements (53,158) (408) (174,000) (3,937) (Losses) gains recognized in earnings (893) 16 (3,097) 12 Ending balance $ 14,385 $ 1,112 $ 14,385 $ 1,112 Three Months Ended December 31, 2018 Nine Months Ended December 31, 2018 Securitized Beneficial Interests Guarantees Securitized Beneficial Interests Guarantees Beginning balance $ 17,512 $ 1,861 $ 48,715 $ 5,864 Issuances of sales of receivables/guarantees 71,047 1,585 161,943 2,988 Settlements (62,432) (569) (183,450) (6,109) (Losses) gains recognized in earnings (1,468) 13 (2,549) 147 Ending balance $ 24,659 $ 2,890 $ 24,659 $ 2,890 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following summarizes sales and purchases with related parties: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Sales $ 1,535 $ 475 $ 15,312 $ 14,238 Purchases 41,116 46,281 96,252 98,784 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following summarizes the Company's equity method investments as of December 31, 2019: Entity Name Location Primary Purpose The Company's Ownership Percentage Basis Difference Adams International Ltd. Thailand purchase and process tobacco 49 % — Alliance One Industries India Private Ltd. India purchase and process tobacco 49 % — China Brasil Tobacos Exportadora SA Brazil purchase and process tobacco 49 % 5,841 Criticality LLC U.S. extraction of cannabidiol from industrial hemp 40 % 881 Nicotine River, LLC U.S. produce consumable e-liquids 40 % 1,902 Oryantal Tütün Paketleme Sanayi ve Ticaret A.Ş. Turkey process tobacco 50 % — Purilum, LLC U.S. produce flavor formulations and consumable e-liquids 50 % — Siam Tobacco Export Company Thailand purchase and process tobacco 49 % — The following summarizes financial information for these equity method investments: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Operations statement: Sales $ 61,515 $ 128,731 $ 256,885 $ 221,938 Gross profit 9,462 20,705 44,235 37,531 Net income 1,506 10,433 16,599 16,009 Company's dividends received 267 — 6,841 5,556 December 31, 2019 2018 March 31, 2019 Balance sheet: Current assets $ 166,989 $ 235,951 $ 152,661 Property, plant, and equipment and other assets 57,320 52,233 53,103 Current liabilities 103,622 174,688 89,791 Long-term obligations and other liabilities 6,054 3,320 3,222 Of the amounts presented above, the following summarizes financial information for China Brasil Tobacos Exportadora SA ("CBT"): Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Operations statement: Sales $ 22,521 $ 78,405 $ 158,955 $ 116,486 Gross profit 3,338 13,492 25,359 19,471 Net income 1,041 8,918 11,929 10,638 Net income attributable to CBT 510 4,370 5,845 5,213 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following summarizes the Company's restructuring and asset impairment charges: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Employee separation charges $ 531 $ 1,122 $ 632 $ 2,499 Asset impairment and other non-cash charges 141 545 260 891 Restructuring and asset impairment charges $ 672 $ 1,667 $ 892 $ 3,390 The following summarizes the activity in the restructuring accrual for employee separation and other cash charges recorded in the Company's Leaf - North America and Leaf - Other Regions segments: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Leaf - North America Leaf - Other Regions Leaf - North America Leaf - Other Regions Leaf - North America Leaf - Other Regions Leaf - North America Leaf - Other Regions Beginning balance $ 266 $ 214 $ 107 $ 889 $ 1,621 $ 222 $ — $ 107 Period charges — 531 892 230 8 624 1,139 1,360 Payments (251) (646) (73) (328) (1,614) (747) (213) (676) Ending balance $ 15 $ 99 $ 926 $ 791 $ 15 $ 99 $ 926 $ 791 |
Schedule of Asset Impairment and Other Non-Cash Charges by Segment | The following summarizes the asset impairment and other non-cash charges recorded in the Company's Leaf - North America and Leaf - Other Regions segments: Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Leaf - North America $ — $ 545 $ — $ 545 Leaf - Other Regions 141 — 260 346 Total $ 141 $ 545 $ 260 $ 891 |
New Accounting Standards - Narr
New Accounting Standards - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | $ 43,372 | $ 0 | $ 0 | |
Lease liabilities | $ 42,239 | |||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | $ 43,900 | |||
Lease liabilities | $ 42,064 |
Restricted Cash - Summary (Deta
Restricted Cash - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | |||
Compensating balance for short-term borrowings | $ 940 | $ 1,225 | $ 1,220 |
Escrow | 1,363 | 2,894 | 2,314 |
Other | 445 | 1,648 | 3,190 |
Total | $ 2,748 | $ 5,767 | $ 6,724 |
Restricted Cash - Narrative (De
Restricted Cash - Narrative (Details) $ in Thousands | 9 Months Ended | |||
Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 72,230 | $ 192,043 | $ 209,160 | $ 264,660 |
Ratio of USD Exchange for Zimbabwe Real Time Gross Settlement System | 16.8 | |||
Zimbabwe | Cash Held in Real Time Gross Settlement System | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 0 | $ 1,082 | $ 2,644 |
Revenue Recognition - Revenue D
Revenue Recognition - Revenue Disaggregated by Product or Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total sales and other operating revenues | $ 363,260 | $ 524,487 | $ 1,022,911 | $ 1,210,351 |
Leaf Tobacco - North America Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales and other operating revenues | 53,016 | 77,850 | 139,421 | 181,764 |
Leaf Tobacco - North America Segment | Product revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales and other operating revenues | 39,148 | 60,280 | 114,548 | 152,725 |
Leaf Tobacco - North America Segment | Processing and other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales and other operating revenues | 13,868 | 17,570 | 24,873 | 29,039 |
Leaf Tobacco - Other Regions Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales and other operating revenues | 306,500 | 441,719 | 867,838 | 1,018,255 |
Leaf Tobacco - Other Regions Segment | Product revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales and other operating revenues | 293,564 | 432,423 | 825,522 | 977,503 |
Leaf Tobacco - Other Regions Segment | Processing and other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales and other operating revenues | 12,936 | 9,296 | 42,316 | 40,752 |
Other Products and Services Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total sales and other operating revenues | $ 3,744 | $ 4,918 | $ 15,652 | $ 10,332 |
Revenue Recognition - Allowance
Revenue Recognition - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance at beginning of period | $ (7,242) | $ (7,324) | $ (13,381) | $ (7,055) |
Additions | (5) | (1,774) | 0 | (2,136) |
Write-offs | 0 | (15) | 6,134 | 78 |
Balance at end of period | (7,247) | (9,113) | (7,247) | (9,113) |
Trade receivables | 187,651 | 277,860 | 187,651 | 277,860 |
Trade receivables, net | $ 180,404 | $ 268,747 | $ 180,404 | $ 268,747 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2016 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Unrecognized tax benefits | $ 16,331 | $ 16,331 | |||
Unrecognized tax benefits that would impact effective tax rate | 13,122 | 13,122 | |||
Interest on income taxes accrued | 1,235 | 1,235 | |||
Income tax penalties accrued | $ 756 | $ 756 | |||
Effective income tax rate (as a percent) | 3.90% | (30.50%) | 226.80% | (65.30%) | |
Income tax expense, uncertain tax positions and foreign exchange | $ 2,252 | ||||
Non-U.S | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Income tax penalties accrued | $ 964 | ||||
Income tax settlements | 1,558 | ||||
Reduction to income tax penalties accrued due to prior period tax positions | 952 | ||||
Addition to income tax penalties accrued due to prior period tax positions | $ 2,772 | ||||
Non-U.S | Minimum | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Income tax examination, open tax years | 3 years | ||||
Non-U.S | Maximum | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Income tax examination, open tax years | 6 years | ||||
U.S. | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Addition to income tax penalties accrued due to current period tax positions | $ 931 |
Guarantees - Summary (Details)
Guarantees - Summary (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Guarantees [Abstract] | |||
Amounts guaranteed (not to exceed) | $ 119,342 | $ 143,298 | $ 176,762 |
Amounts outstanding under guarantee | 37,624 | 103,846 | 79,336 |
Fair value of guarantees | 1,112 | 3,714 | 2,890 |
Amounts due to local banks on behalf of suppliers and included in accounts payable | $ 0 | $ 18,659 | $ 0 |
Number of years before expiring guarantees | 1 year |
Goodwill and Intangibles - Inta
Goodwill and Intangibles - Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Schedule of Intangible Assets [Line Items] | ||
Beginning Gross Carrying Amount | $ 165,910 | $ 150,120 |
Additions | 361 | 17,220 |
Accumulated Amortization | (65,179) | (59,793) |
Impact of Foreign Currency Translation | 882 | (1,430) |
Ending Intangible Assets, Net | 101,974 | 106,117 |
Amortization of intangible assets | $ 5,386 | $ 7,943 |
Customer relationships | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life | 8 years 10 months 17 days | 9 years 6 months 18 days |
Beginning Gross Carrying Amount | $ 63,980 | $ 58,530 |
Additions | 0 | 5,450 |
Accumulated Amortization | (32,043) | (29,027) |
Impact of Foreign Currency Translation | 0 | 0 |
Ending Intangible Assets, Net | $ 31,937 | $ 34,953 |
Production and supply contracts | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life | 2 years 3 months | 2 years 11 months 4 days |
Beginning Gross Carrying Amount | $ 14,893 | $ 14,893 |
Additions | 0 | 0 |
Accumulated Amortization | (11,210) | (10,668) |
Impact of Foreign Currency Translation | 0 | 0 |
Ending Intangible Assets, Net | $ 3,683 | $ 4,225 |
Internally developed software | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life | 3 years 3 months 7 days | 3 years 9 months 14 days |
Beginning Gross Carrying Amount | $ 19,917 | $ 18,812 |
Additions | 243 | 1,105 |
Accumulated Amortization | (18,807) | (18,391) |
Impact of Foreign Currency Translation | 0 | 0 |
Ending Intangible Assets, Net | $ 1,353 | $ 1,526 |
Licenses | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life | 17 years 3 months 3 days | 18 years 29 days |
Beginning Gross Carrying Amount | $ 32,284 | $ 30,339 |
Additions | 118 | 2,991 |
Accumulated Amortization | (3,010) | (1,644) |
Impact of Foreign Currency Translation | 648 | (1,046) |
Ending Intangible Assets, Net | $ 30,040 | $ 30,640 |
Trade names | ||
Schedule of Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life | 6 years 3 months | 7 years |
Beginning Gross Carrying Amount | $ 500 | $ 0 |
Additions | 0 | 500 |
Accumulated Amortization | (109) | (63) |
Impact of Foreign Currency Translation | 0 | 0 |
Ending Intangible Assets, Net | 391 | 437 |
Goodwill | ||
Schedule of Intangible Assets [Line Items] | ||
Beginning Gross Carrying Amount | 34,336 | 27,546 |
Additions | 0 | 7,174 |
Impact of Foreign Currency Translation | 234 | (384) |
Ending Intangible Assets, Net | $ 34,570 | $ 34,336 |
Goodwill and Intangibles - Esti
Goodwill and Intangibles - Estimated Intangible Asset Amortization Expense (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2020 (excluding the nine months ended December 31, 2019) | $ 3,294 |
2021 | 7,764 |
2022 | 6,903 |
2023 | 6,216 |
2024 | 6,056 |
Thereafter | 37,171 |
Total estimated future intangible asset amortization expense | 67,404 |
Customer Relationships | |
Finite-Lived Intangible Assets [Line Items] | |
2020 (excluding the nine months ended December 31, 2019) | 1,005 |
2021 | 4,022 |
2022 | 4,022 |
2023 | 4,022 |
2024 | 4,022 |
Thereafter | 14,844 |
Total estimated future intangible asset amortization expense | 31,937 |
Production and Supply Contracts | |
Finite-Lived Intangible Assets [Line Items] | |
2020 (excluding the nine months ended December 31, 2019) | 1,674 |
2021 | 1,397 |
2022 | 612 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total estimated future intangible asset amortization expense | 3,683 |
Internally Developed Software Intangible | |
Finite-Lived Intangible Assets [Line Items] | |
2020 (excluding the nine months ended December 31, 2019) | 137 |
2021 | 435 |
2022 | 361 |
2023 | 290 |
2024 | 130 |
Thereafter | 0 |
Total estimated future intangible asset amortization expense | 1,353 |
Licenses | |
Finite-Lived Intangible Assets [Line Items] | |
2020 (excluding the nine months ended December 31, 2019) | 462 |
2021 | 1,847 |
2022 | 1,845 |
2023 | 1,841 |
2024 | 1,841 |
Thereafter | 22,204 |
Total estimated future intangible asset amortization expense | 30,040 |
Trade Names | |
Finite-Lived Intangible Assets [Line Items] | |
2020 (excluding the nine months ended December 31, 2019) | 16 |
2021 | 63 |
2022 | 63 |
2023 | 63 |
2024 | 63 |
Thereafter | 123 |
Total estimated future intangible asset amortization expense | $ 391 |
Variable Interest Entities - Su
Variable Interest Entities - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | |||
Investment in variable interest entities | $ 69,368 | $ 69,459 | $ 68,351 |
Advances to variable interest entities | 6,418 | 5,633 | 5,077 |
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Investment in variable interest entities | 63,320 | 64,281 | 62,156 |
Advances to variable interest entities | 11,301 | 3,273 | 2,817 |
Guaranteed amounts to variable interest entities (not to exceed) | $ 61,566 | $ 67,027 | $ 73,278 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 10 |
Number of reportable segments | 3 |
Segment Information - Summary (
Segment Information - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Total sales and other operating revenues | $ 363,260 | $ 524,487 | $ 1,022,911 | $ 1,210,351 | |
Total operating income | 8,143 | 39,355 | 15,677 | 56,633 | |
Total assets | 1,949,047 | 2,023,719 | 1,949,047 | 2,023,719 | $ 1,859,275 |
Leaf Tobacco - North America Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total sales and other operating revenues | 53,016 | 77,850 | 139,421 | 181,764 | |
Total operating income | 2,609 | 2,870 | 5,880 | 7,888 | |
Total assets | 319,433 | 318,295 | 319,433 | 318,295 | 243,248 |
Leaf Tobacco - Other Regions Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total sales and other operating revenues | 306,500 | 441,719 | 867,838 | 1,018,255 | |
Total operating income | 25,508 | 44,133 | 59,016 | 70,010 | |
Total assets | 1,408,705 | 1,598,879 | 1,408,705 | 1,598,879 | 1,488,226 |
Other Products and Services Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total sales and other operating revenues | 3,744 | 4,918 | 15,652 | 10,332 | |
Total operating income | (19,974) | (7,648) | (49,219) | (21,265) | |
Total assets | $ 220,909 | $ 106,545 | $ 220,909 | $ 106,545 | $ 127,801 |
Loss Per Share - Summary (Detai
Loss Per Share - Summary (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic (loss) income per share: | ||||
Net loss attributable to Pyxus International, Inc. | $ (21,993) | $ (5,095) | $ (100,308) | $ (60,487) |
Weighted average number of shares outstanding (shares) | 9,166,000 | 9,068,000 | 9,137,000 | 9,048,000 |
Basic loss per share (USD per share) | $ (2.40) | $ (0.56) | $ (10.98) | $ (6.69) |
Diluted (loss) income per share: | ||||
Net loss attributable to Pyxus International, Inc. | $ (21,993) | $ (5,095) | $ (100,308) | $ (60,487) |
Weighted average number of shares outstanding (shares) | 9,166,000 | 9,068,000 | 9,137,000 | 9,048,000 |
Plus: Restricted shares issued and shares applicable to stock options and restricted stock units, net of shares assumed to be purchased from proceeds at average market price (shares) | 0 | 0 | 0 | 0 |
Adjusted weighted average number of common shares outstanding (shares) | 9,166,000 | 9,068,000 | 9,137,000 | 9,048,000 |
Diluted loss per share (USD per share) | $ (2.40) | $ (0.56) | $ (10.98) | $ (6.69) |
Shares of common stock owned by the subsidiary (shares) | 785,000 | 785,000 | 785,000 | 785,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 452 | 427 | 450 | 427 |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 10,000 | 66,000 | 28,000 | 62,000 |
Loss Per Share - Antidilutive S
Loss Per Share - Antidilutive Securities excluded from Computation (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents excluded from diluted loss per share (shares) | 452 | 427 | 450 | 427 |
Weighted average exercise price (USD per share) | $ 56.66 | $ 60 | $ 56.98 | $ 60 |
Antidilutive stock options and other awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents excluded from diluted loss per share (shares) | 452 | 427 | 450 | 427 |
Antidilutive stock options and other awards under stock-based compensation programs excluded based on reporting a net loss for the period | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents excluded from diluted loss per share (shares) | 0 | 0 | 0 | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 242 | $ 402 | $ 1,054 | $ 1,155 |
Stock-based Awards Payable in Cash | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 0 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number granted (shares) | 11 | 13 | 39 | 26 |
Grant date fair value (USD per share) | $ 8.94 | $ 11.86 | $ 12.41 | $ 17.04 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number granted (shares) | 0 | 5 | 2 | 66 |
Grant date fair value (USD per share) | $ 0 | $ 14.32 | $ 18.29 | $ 15.94 |
Performance-based stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number granted (shares) | 0 | 0 | 0 | 30 |
Grant date fair value (USD per share) | $ 0 | $ 0 | $ 0 | $ 16 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 9 Months Ended |
Dec. 31, 2019 | |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Contingencies and Other Infor_2
Contingencies and Other Information - Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2019USD ($)facility | Mar. 31, 2013USD ($) | Dec. 31, 2005USD ($) | Mar. 18, 2014USD ($) | Oct. 26, 2007USD ($) | |
Loss Contingencies [Line Items] | |||||
Amount of federal taxes offset | $ 24,142 | ||||
Number of facilities with an associated asset retirement obligation | facility | 1 | ||||
Other Income (Expense) | |||||
Loss Contingencies [Line Items] | |||||
Benefit of excise tax | $ 24,142 | ||||
IPI Credit Bonus | |||||
Loss Contingencies [Line Items] | |||||
Gain contingency, unrecorded amount | $ 94,316 | ||||
Tax Assessment | Brazilian State of Parana | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 11,598 | $ 3,268 | |||
Tax Assessment | Brazilian State of Santa Catarina | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | 7,551 | $ 2,827 | |||
Tax Assessment | Brazil State of Rio Grande do Sul and the State of Santa Catarina | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 11,313 |
Debt Arrangements - Summary (De
Debt Arrangements - Summary (Details) - USD ($) | 9 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Total debt | $ 1,483,132,000 | $ 1,327,679,000 | |
Short-term | 580,346,000 | 428,961,000 | |
Current portion of long-term debt | 325,000 | 332,000 | $ 165,000 |
Long-term debt | 902,461,000 | 898,386,000 | $ 897,195,000 |
Long-term debt including current maturities | 902,786,000 | 898,718,000 | |
Letters of credit outstanding | 7,151,000 | 5,399,000 | |
Lines and Letters Available | |||
Lines of credit available | 318,436,000 | ||
Letters of credit available | 5,740,000 | ||
Total credit available | 324,176,000 | ||
Interest Rate | |||
Maximum unrestricted cash and cash equivalents | 180,000,000 | ||
Credit Facility | Credit Facility | |||
Debt Instrument [Line Items] | |||
Total debt | 0 | 0 | |
Lines and Letters Available | |||
Lines of credit available | $ 60,000,000 | ||
Interest Rate | |||
Interest rate (as a percent) | 0.00% | ||
Senior Notes | Senior Secured First Lien Notes Due 2021 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 272,369,000 | 270,883,000 | |
Lines and Letters Available | |||
Lines of credit available | $ 0 | ||
Interest Rate | |||
Interest rate (as a percent) | 8.50% | ||
Original issue discount | $ 826,000 | ||
Unamortized debt issuance costs | 1,805,000 | ||
Repayments of debt | 275,000,000 | ||
Senior Notes | Senior Secured Second Lien Notes Due 2021 | |||
Debt Instrument [Line Items] | |||
Total debt | 629,821,000 | 627,147,000 | |
Lines and Letters Available | |||
Lines of credit available | $ 0 | ||
Interest Rate | |||
Interest rate (as a percent) | 9.875% | ||
Original issue discount | $ 3,328,000 | ||
Unamortized debt issuance costs | 2,537,000 | ||
Repayments of debt | 635,686,000 | ||
Other long-term debt | |||
Debt Instrument [Line Items] | |||
Total debt | 596,000 | 688,000 | |
Lines and Letters Available | |||
Lines of credit available | $ 0 | ||
Interest Rate | |||
Weighted-average interest rate (as a percent) | 5.20% | ||
Notes payable to banks | |||
Debt Instrument [Line Items] | |||
Total debt | $ 580,346,000 | $ 428,961,000 | |
Lines and Letters Available | |||
Lines of credit available | $ 258,436,000 | ||
Interest Rate | |||
Weighted-average interest rate (as a percent) | 7.10% |
Debt Arrangements - Narrative (
Debt Arrangements - Narrative (Details) - Senior Notes | 9 Months Ended |
Dec. 31, 2019 | |
Debt Instrument [Line Items] | |
EBITDA to fixed charges ratio requirement | 2 |
Senior Secured First Lien Notes Due 2021 | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 8.50% |
Senior Secured Second Lien Notes Due 2021 | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 9.875% |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2019 |
Minimum | Real Estate | |
Lessee, Lease, Description [Line Items] | |
Initial term of operating leases | 2 years |
Minimum | Equipment | |
Lessee, Lease, Description [Line Items] | |
Initial term of operating leases | 2 years |
Maximum | Real Estate | |
Lessee, Lease, Description [Line Items] | |
Initial term of operating leases | 15 years |
Maximum | Equipment | |
Lessee, Lease, Description [Line Items] | |
Initial term of operating leases | 5 years |
Leases - Weighted-Average Infor
Leases - Weighted-Average Information of Operating Lease Obligations (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term | 5 years 2 months 12 days |
Weighted-average discount rate (as a percent) | 9.60% |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 4,268 | $ 12,567 |
Variable and short-term lease costs | 1,830 | 5,089 |
Total lease costs | $ 6,098 | $ 17,656 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows impact - operating leases | $ 3,051 | $ 11,864 |
Right-of-use assets obtained in exchange for new operating leases | $ 1,111 | $ 5,504 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Leases, After Adoption of 842: | |||
2020 (excluding the nine months ended December 31, 2019) | $ 4,458 | ||
2021 | 13,452 | ||
2022 | 10,741 | ||
2023 | 6,904 | ||
2024 | 5,662 | ||
Thereafter | 12,545 | ||
Total future minimum lease payments | 53,762 | ||
Less: amounts related to imputed interest | 11,523 | ||
Present value of future minimum lease payments | 42,239 | ||
Less: operating lease liabilities, current | 14,033 | $ 0 | $ 0 |
Operating lease liabilities, non-current | $ 28,206 | $ 0 | $ 0 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Commitments under Noncancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases, Before Adoption of 842: | |
2020 | $ 15,651 |
2021 | 10,554 |
2022 | 8,483 |
2023 | 6,735 |
2024 | 5,356 |
Thereafter | 7,324 |
Total | $ 54,103 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Gain (loss) recognized in income | $ (729,000) | $ (3,189,000) | |
Current derivative asset | $ 1,029,000 | ||
Derivative contracts outstanding | $ 0 | 0 | |
Loss on Derivatives | |||
Derivative [Line Items] | |||
Unrealized losses on designated cash flow hedges | 241,000 | 2,307,000 | |
Tax of unrealized losses on designated cash flow hedges | $ (64,000) | $ (613,000) |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 117 | $ 120 | $ 352 | $ 359 |
Interest expense | 1,029 | 1,155 | 3,088 | 3,464 |
Expected return on plan assets | (1,121) | (1,286) | (3,363) | (3,858) |
Amortization of prior service cost | 10 | 11 | 31 | 32 |
Settlement loss | 271 | 91 | 819 | 609 |
Actuarial loss | 456 | 422 | 1,368 | 1,267 |
Net periodic pension cost | 762 | 513 | 2,295 | 1,873 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 4 | 5 | 11 |
Interest expense | 82 | 83 | 246 | 248 |
Amortization of prior service cost | (177) | (177) | (531) | (532) |
Actuarial loss | 109 | 109 | 328 | 328 |
Net periodic pension cost | $ 16 | $ 19 | $ 48 | $ 55 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Contributions to Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||||
Contributions made during the period | $ 1,277 | $ 1,399 | $ 4,457 | $ 4,890 |
Contributions expected for the remainder of the fiscal year | 2,665 | 2,357 | ||
Total | $ 7,122 | $ 7,247 |
Inventories - Summary (Details)
Inventories - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | |||
Processed tobacco | $ 703,124 | $ 455,163 | $ 698,092 |
Unprocessed tobacco | 116,456 | 183,607 | 107,206 |
Other tobacco related | 20,960 | 26,385 | 19,771 |
Other | 31,310 | 3,016 | 2,713 |
Total | $ 871,850 | $ 668,171 | $ 827,782 |
Other Comprehensive Loss - Comp
Other Comprehensive Loss - Components Reclassified from AOCI to Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pensions and other postretirement benefits | ||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive loss to net income, gross | $ 395 | $ 367 | $ 1,185 | $ 1,099 |
Tax effects of amounts reclassified from accumulated other comprehensive loss to net income | (83) | (82) | (251) | (246) |
Amounts reclassified from accumulated other comprehensive loss to net income, net | 312 | 285 | 934 | 853 |
Actuarial loss | ||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive loss to net income, gross | 560 | 534 | 1,680 | 1,601 |
Amortization of prior service cost | ||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive loss to net income, gross | (165) | (167) | (495) | (502) |
Derivatives | ||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive loss to net income, gross | 729 | 458 | 3,189 | 1,445 |
Tax effects of amounts reclassified from accumulated other comprehensive loss to net income | (153) | (96) | (669) | (303) |
Amounts reclassified from accumulated other comprehensive loss to net income, net | $ 576 | $ 362 | $ 2,520 | $ 1,142 |
Securitized Receivables - Narra
Securitized Receivables - Narrative (Details) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019USD ($)program | Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | |
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Number of accounts receivable securitization programs | program | 3 | ||
Receivables sold, face value discounted (as a percent) | 100.00% | ||
Reductions of trade and other receivables due to settlements | $ (7,504,000) | $ 78,000 | $ (5,208,000) |
Accounts Receivable Securitization, Program Two | |||
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Trade receivables, maximum amount | $ 125,000,000 |
Securitized Receivables - Summa
Securitized Receivables - Summary (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Transfers and Servicing [Abstract] | |||
Receivables outstanding in facility | $ 69,741 | $ 92,445 | $ 210,672 |
Beneficial interests | 14,385 | 24,659 | 40,332 |
Servicing liability | 5 | 26 | $ 90 |
Cash proceeds for the period ended: | |||
Cash purchase price | 331,187 | 416,526 | |
Deferred purchase price | 174,741 | 171,565 | |
Service fees | 355 | 435 | |
Total | $ 506,283 | $ 588,526 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | 9 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Guarantees of Farmers | Discounted Cash Flow Valuation Technique | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Market interest rate (as a percent) | 15.00% | |
Guarantees of Farmers | Discounted Cash Flow Valuation Technique | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Market interest rate (as a percent) | 75.80% | |
Securitized Beneficial Interests | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Unrealized losses for securitized beneficial interests | $ 691 | $ 643 |
Securitized Beneficial Interests | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Payment speed | 77 days | |
Discount rate (as a percent) | 1.70% | |
Securitized Beneficial Interests | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Payment speed | 80 days | |
Discount rate (as a percent) | 4.30% | |
Loss Severity | Guarantees of Farmers | Historical Loss Valuation Technique | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Historical loss (as a percent) | 0.022 | |
Loss Severity | Guarantees of Farmers | Historical Loss Valuation Technique | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Historical loss (as a percent) | 0.100 |
Fair Value Measurements - Input
Fair Value Measurements - Input Hierarchy of Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Total Assets / Liabilities at Fair Value | |||
Financial Assets: | |||
Derivative financial instruments | $ 0 | $ 186 | $ 1,029 |
Securitized beneficial interests | 14,385 | 40,332 | 24,659 |
Total assets | 14,385 | 40,518 | 25,688 |
Financial Liabilities: | |||
Long-term debt | 559,021 | 830,785 | 742,755 |
Guarantees | 1,112 | 3,714 | 2,890 |
Total liabilities | 560,133 | 834,499 | 745,645 |
Level 2 | |||
Financial Assets: | |||
Derivative financial instruments | 0 | 186 | 1,029 |
Securitized beneficial interests | 0 | 0 | 0 |
Total assets | 0 | 186 | 1,029 |
Financial Liabilities: | |||
Long-term debt | 558,401 | 830,082 | 742,047 |
Guarantees | 0 | 0 | 0 |
Total liabilities | 558,401 | 830,082 | 742,047 |
Level 3 | |||
Financial Assets: | |||
Derivative financial instruments | 0 | 0 | 0 |
Securitized beneficial interests | 14,385 | 40,332 | 24,659 |
Total assets | 14,385 | 40,332 | 24,659 |
Financial Liabilities: | |||
Long-term debt | 620 | 703 | 708 |
Guarantees | 1,112 | 3,714 | 2,890 |
Total liabilities | $ 1,732 | $ 4,417 | $ 3,598 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Change in Recurring Level 3 Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Securitized Beneficial Interests | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 25,579 | $ 17,512 | $ 40,332 | $ 48,715 |
Issuances of sales of receivables/guarantees | 42,857 | 71,047 | 151,150 | 161,943 |
Settlements | (53,158) | (62,432) | (174,000) | (183,450) |
(Losses) gains recognized in earnings | (893) | (1,468) | (3,097) | (2,549) |
Ending balance | 14,385 | 24,659 | 14,385 | 24,659 |
Guarantees | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 1,026 | 1,861 | 3,714 | 5,864 |
Issuances of sales of receivables/guarantees | 478 | 1,585 | 1,323 | 2,988 |
Settlements | (408) | (569) | (3,937) | (6,109) |
(Losses) gains recognized in earnings | 16 | 13 | 12 | 147 |
Ending balance | $ 1,112 | $ 2,890 | $ 1,112 | $ 2,890 |
Related Party Transactions - Su
Related Party Transactions - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||||
Sales | $ 1,535 | $ 475 | $ 15,312 | $ 14,238 |
Purchases | $ 41,116 | $ 46,281 | $ 96,252 | $ 98,784 |
Equity Method Investments - Sum
Equity Method Investments - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Operations statement: | |||||
Sales | $ 61,515 | $ 128,731 | $ 256,885 | $ 221,938 | |
Gross profit | 9,462 | 20,705 | 44,235 | 37,531 | |
Net income | 1,506 | 10,433 | 16,599 | 16,009 | |
Company's dividends received | 267 | 0 | 6,841 | 5,556 | |
Balance sheet: | |||||
Current assets | 166,989 | 235,951 | 166,989 | 235,951 | $ 152,661 |
Property, plant, and equipment and other assets | 57,320 | 52,233 | 57,320 | 52,233 | 53,103 |
Current liabilities | 103,622 | 174,688 | 103,622 | 174,688 | 89,791 |
Long-term obligations and other liabilities | $ 6,054 | 3,320 | $ 6,054 | 3,320 | $ 3,222 |
Adams International Ltd. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership in equity method investment (as a percent) | 49.00% | 49.00% | |||
Basis difference | $ 0 | $ 0 | |||
Alliance One Industries India Private Ltd. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership in equity method investment (as a percent) | 49.00% | 49.00% | |||
Basis difference | $ 0 | $ 0 | |||
China Brasil Tobacos Exportadora SA | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership in equity method investment (as a percent) | 49.00% | 49.00% | |||
Basis difference | $ 5,841 | $ 5,841 | |||
Operations statement: | |||||
Sales | 22,521 | 78,405 | 158,955 | 116,486 | |
Gross profit | 3,338 | 13,492 | 25,359 | 19,471 | |
Net income | 1,041 | 8,918 | 11,929 | 10,638 | |
Net income attributable to CBT | $ 510 | $ 4,370 | $ 5,845 | $ 5,213 | |
Criticality LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership in equity method investment (as a percent) | 40.00% | 40.00% | |||
Basis difference | $ 881 | $ 881 | |||
Nicotine River, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership in equity method investment (as a percent) | 40.00% | 40.00% | |||
Basis difference | $ 1,902 | $ 1,902 | |||
Oryantal Tütün Paketleme Sanayi ve Ticaret A.Ş. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership in equity method investment (as a percent) | 50.00% | 50.00% | |||
Basis difference | $ 0 | $ 0 | |||
Purilum, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership in equity method investment (as a percent) | 50.00% | 50.00% | |||
Basis difference | $ 0 | $ 0 | |||
Siam Tobacco Export Company | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership in equity method investment (as a percent) | 49.00% | 49.00% | |||
Basis difference | $ 0 | $ 0 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | ||||
Expected costs for severance for affected employees | $ 4,300 | $ 4,300 | ||
Expected costs for impairment and other one-time costs | 141 | 141 | ||
Severance charges | 621 | |||
Impairment related charges | $ 141 | $ 545 | $ 260 | $ 891 |
Restructuring and Asset Impai_4
Restructuring and Asset Impairment Charges - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | ||||
Employee separation charges | $ 531 | $ 1,122 | $ 632 | $ 2,499 |
Asset impairment and other non-cash charges | 141 | 545 | 260 | 891 |
Restructuring and asset impairment charges | $ 672 | $ 1,667 | $ 892 | $ 3,390 |
Restructuring and Asset Impai_5
Restructuring and Asset Impairment Charges - Employee Separation and Other Cash Charges by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Period charges | $ 531 | $ 1,122 | $ 632 | $ 2,499 |
Leaf Tobacco - North America Segment | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 266 | 107 | 1,621 | 0 |
Period charges | 0 | 892 | 8 | 1,139 |
Payments | (251) | (73) | (1,614) | (213) |
Ending balance | 15 | 926 | 15 | 926 |
Leaf Tobacco - Other Regions Segment | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 214 | 889 | 222 | 107 |
Period charges | 531 | 230 | 624 | 1,360 |
Payments | (646) | (328) | (747) | (676) |
Ending balance | $ 99 | $ 791 | $ 99 | $ 791 |
Restructuring and Asset Impai_6
Restructuring and Asset Impairment Charges - Asset Impairment and Non-Cash Charges by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and other non-cash charges | $ 141 | $ 545 | $ 260 | $ 891 |
Leaf Tobacco - North America Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and other non-cash charges | 0 | 545 | 0 | 545 |
Leaf Tobacco - Other Regions Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment and other non-cash charges | $ 141 | $ 0 | $ 260 | $ 346 |
Uncategorized Items - pyx-20191
Label | Element | Value |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,931,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,931,000 |