Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2024 | May 21, 2024 | Sep. 30, 2023 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2024 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-00652 | ||
Entity Registrant Name | UNIVERSAL CORPORATION | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 54-0414210 | ||
Entity Address, Address Line One | 9201 Forest Hill Avenue, | ||
Entity Address, City or Town | Richmond, | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 23235 | ||
City Area Code | 804 | ||
Local Phone Number | 359-9311 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | UVV | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
DocumentFinStmtErrorCorrectionFlag | false | ||
Entity Public Float | $ 1.2 | ||
Entity Common Stock, Shares Outstanding | 24,573,408 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000102037 |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2024 | |
Auditor [Line Items] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Richmond, Virginia |
Auditor Firm ID | 42 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Income Statement [Abstract] | ||||
Sales and other operating revenues | $ 2,748,573 | $ 2,569,824 | $ 2,103,601 | |
Costs and expenses | ||||
Cost of goods sold | 2,212,475 | 2,111,539 | 1,694,675 | |
Selling, general and administrative expenses | 310,566 | 277,213 | 240,686 | |
Other income | [1] | 0 | 0 | (2,532) |
Restructuring and impairment costs | 3,523 | 0 | 10,457 | |
Operating income | 222,009 | 181,072 | 160,315 | |
Equity in pretax earnings of unconsolidated affiliates | [2] | 756 | 2,383 | 6,095 |
Other non-operating income | 3,084 | 1,791 | 2,687 | |
Interest income | 4,504 | 6,023 | 917 | |
Interest expense | 66,273 | 49,300 | 27,747 | |
Income before income taxes | 164,080 | 141,969 | 142,267 | |
Income taxes | 31,109 | 11,733 | 38,663 | |
Net income | 132,971 | 130,236 | 103,604 | |
Less: net income attributable to noncontrolling interests in subsidiaries | (13,373) | (6,184) | (17,027) | |
Net income attributable to Universal Corporation | $ 119,598 | $ 124,052 | $ 86,577 | |
Earnings per share: | ||||
Basic | $ 4.81 | $ 5.01 | $ 3.50 | |
Diluted | $ 4.78 | $ 4.97 | $ 3.47 | |
Weighted average common shares outstanding: | ||||
Basic | 24,851,858 | 24,773,710 | 24,764,177 | |
Diluted | 25,040,914 | 24,943,841 | 24,922,896 | |
[1] Other income represents the reversal of the contingent consideration liability associated with the acquisition of FruitSmart. Equity in pretax earnings of unconsolidated affiliates is included in reportable segment operating income, but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Net income | $ 132,971 | $ 130,236 | $ 103,604 |
Other comprehensive income (loss): | |||
Foreign currency translation, net of income taxes | (1,531) | (3,166) | (6,367) |
Pension and other postretirement benefit plans, net of income taxes | (1,666) | 3,089 | 5,943 |
Total other comprehensive income (loss), net of income taxes | (5,477) | 7,356 | 22,189 |
Total comprehensive income | 127,494 | 137,592 | 125,793 |
Less: comprehensive income attributable to noncontrolling interests | (12,424) | (6,286) | (16,490) |
Comprehensive income attributable to Universal Corporation | 115,070 | 131,306 | 109,303 |
Foreign currency hedge, net of income taxes [Member] | |||
Other comprehensive income (loss): | |||
hedges, net of income tax | (5,515) | 1,320 | 3,993 |
Interest rate hedge, net of income taxes [Member] | |||
Other comprehensive income (loss): | |||
hedges, net of income tax | $ 3,235 | $ 6,113 | $ 18,620 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 55,593 | $ 64,690 |
Accounts receivable, net | 525,262 | 402,073 |
Advances to suppliers, net | 139,064 | 170,801 |
Accounts receivable—unconsolidated affiliates | 5,385 | 12,210 |
Inventories—at lower of cost or net realizable value: | ||
Tobacco | 1,070,580 | 833,876 |
Other | 193,518 | 202,907 |
Prepaid income taxes | 19,484 | 16,493 |
Other current assets | 93,655 | 99,840 |
Total current assets | 2,102,541 | 1,802,890 |
Property, plant and equipment | ||
Land | 26,244 | 24,926 |
Buildings | 323,969 | 311,138 |
Machinery and equipment | 693,868 | 689,220 |
Total property, plant and equipment | 1,044,081 | 1,025,284 |
Less accumulated depreciation | (678,201) | (674,122) |
Property, plant and equipment, net | 365,880 | 351,162 |
Other assets | ||
Operating lease right-of-use assets | 32,510 | 40,505 |
Goodwill, net | 213,869 | 213,922 |
Other intangibles, net | 68,883 | 80,101 |
Investments in unconsolidated affiliates | 76,289 | 76,184 |
Deferred income taxes | 15,181 | 13,091 |
Pension asset | 11,857 | 9,984 |
Other noncurrent assets | 50,229 | 51,343 |
Total other assets | 468,818 | 485,130 |
Total assets | 2,937,239 | 2,639,182 |
Current liabilities | ||
Notes payable and overdrafts | 417,217 | 195,564 |
Accounts payable | 108,727 | 83,213 |
Accounts payable—unconsolidated affiliates | 1,621 | 5,830 |
Customer advances and deposits | 17,179 | 3,061 |
Accrued compensation | 39,766 | 33,108 |
Income taxes payable | 7,477 | 3,274 |
Current portion of operating lease liabilities | 10,356 | 11,404 |
Accrued expenses and other current liabilities | 109,015 | 106,533 |
Current portion of long-term debt | 0 | 0 |
Total current liabilities | 711,358 | 441,987 |
Long-term debt | 617,364 | 616,809 |
Pensions and other postretirement benefits | 43,251 | 42,769 |
Long-term operating lease liabilities | 19,302 | 25,540 |
Other long-term liabilities | 27,902 | 32,512 |
Deferred income taxes | 39,139 | 42,613 |
Total liabilities | 1,458,316 | 1,202,230 |
Shareholders’ equity | ||
Series A Junior Participating Preferred Stock, no par value, 500,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, no par value, 100,000,000 shares authorized, 24,573,408 shares issued and outstanding (24,555,361 at March 31, 2023) | 345,596 | 337,247 |
Retained earnings | 1,173,196 | 1,136,898 |
Accumulated other comprehensive loss | (81,585) | (77,057) |
Total Universal Corporation shareholders' equity | 1,437,207 | 1,397,088 |
Noncontrolling interests in subsidiaries | 41,716 | 39,864 |
Total shareholders' equity | 1,478,923 | 1,436,952 |
Total liabilities and shareholders' equity | $ 2,937,239 | $ 2,639,182 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Mar. 31, 2024 | Mar. 31, 2023 |
Preferred stock, shares authorized | 5,000,000 | |
Preferred stock, shares outstanding | 0 | |
Common stock, shares authorized | 100,000,000 | |
Common stock, shares outstanding | 24,573,408 | 24,555,361 |
Common Stock [Member] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 24,573,408 | 24,555,361 |
Common stock, shares outstanding | 24,573,408 | 24,555,361 |
Series A Junior Participating Preferred Stock [Member] | ||
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | |
Preferred stock, shares outstanding | 0 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | $ 132,971 | $ 130,236 | $ 103,604 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 58,326 | 57,300 | 52,521 | |
Provision for losses (recoveries) on advances | 14,090 | 10,584 | 5,988 | |
Inventory write-downs | 9,234 | 13,995 | 19,944 | |
Stock-based compensation expense | 12,063 | 8,420 | 6,187 | |
Foreign currency remeasurement loss (gain), net | 5,114 | (3,892) | 19,029 | |
Foreign currency exchange contracts | (365) | 14,163 | (13,210) | |
Deferred income taxes | (5,404) | (7,657) | (2,473) | |
Equity in net income of unconsolidated affiliates, net of dividends | (1,239) | 4,010 | (329) | |
Tax Adjustments, Settlements, and Unusual Provisions | 0 | (29,236) | 0 | |
Restructuring and impairment costs | [1] | 3,523 | 0 | 10,457 |
Restructuring payments | (1,181) | 0 | (4,134) | |
Change in estimated fair value of contingent consideration for FruitSmart acquisition | 0 | 0 | (2,532) | |
Other, net | 1,001 | (6,249) | 512 | |
Changes in operating assets and liabilities, net: | ||||
Accounts and notes receivable | (109,681) | (74,657) | (23,185) | |
Inventories | (236,243) | (41,867) | (245,920) | |
Other assets | (768) | 10,821 | (15,991) | |
Accounts payable | 20,806 | (84,588) | 108,746 | |
Accrued expenses and other current liabilities | 8,414 | 3,365 | 14,356 | |
Income taxes | 342 | (7,811) | 6,644 | |
Customer advances and deposits | 14,365 | (7,494) | 4,668 | |
Net cash provided (used) by operating activities | (74,632) | (10,557) | 44,882 | |
Cash Flows From Investing Activities: | ||||
Purchase of property, plant and equipment | (66,013) | (54,674) | (53,203) | |
Purchase of business, net of cash held by the business | 0 | 0 | (102,462) | |
Proceeds from sale of business, less cash of businesses sold | 3,757 | 3,245 | 0 | |
Proceeds from sale of property, plant and equipment | 2,257 | 1,079 | 13,004 | |
Net cash used by investing activities | (59,999) | (50,350) | (142,661) | |
Cash Flows From Financing Activities: | ||||
Issuance (repayment) of short-term debt, net | 223,000 | 24,712 | 79,286 | |
Issuance of long-term debt | 0 | 123,481 | 0 | |
Repayment of long-term debt | 0 | 23,481 | 0 | |
Dividends paid to noncontrolling interests in subsidiaries | (10,572) | (10,221) | (13,390) | |
Repurchase of common stock | (4,744) | (3,448) | (3,053) | |
Dividends paid on common stock | (78,402) | (77,391) | (76,436) | |
Proceeds from termination of interest rate swap agreements | 0 | 11,786 | 0 | |
Debt issuance costs and other | (3,607) | (6,489) | (3,167) | |
Net cash provided (used) by financing activities | 125,675 | 38,949 | (16,760) | |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (141) | (1,000) | (1,034) | |
Net increase (decrease) in cash and cash equivalents | (9,097) | (22,958) | (115,573) | |
Cash, restricted cash and cash equivalents at beginning of year | 64,690 | 87,648 | 203,221 | |
Cash, Restricted Cash and Cash Equivalents at End of Year | 55,593 | 64,690 | 87,648 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 55,593 | 64,690 | 81,648 | |
Restricted cash (Other noncurrent assets) | 0 | 0 | 6,000 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 55,593 | 64,690 | 87,648 | |
Supplemental information—cash paid for: | ||||
Interest | 61,084 | 49,882 | 27,113 | |
Income taxes, net of refunds | $ 38,084 | $ 49,073 | $ 33,010 | |
[1]Restructuring and impairment costs are excluded from reportable segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 4) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Forward Foreign Currency Exchange Contracts [Member] | Interest Rate Swap Agreements [Member] | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | AOCI Attributable to Parent [Member] Forward Foreign Currency Exchange Contracts [Member] | AOCI Attributable to Parent [Member] Interest Rate Swap Agreements [Member] | Noncontrolling Interest [Member] |
Balance at beginning of year at Mar. 31, 2021 | $ 1,348,425 | $ 326,673 | $ 1,087,663 | $ (107,037) | $ 41,126 | ||||
Balance at beginning of year, shares at Mar. 31, 2021 | 24,514,867 | ||||||||
Changes in preferred and common stock | |||||||||
Repurchase of stock | $ (782) | (782) | |||||||
Issuance of stock, shares | 93,416 | ||||||||
Repurchase of stock, shares | (58,264) | ||||||||
Accrual of stock-based compensation | $ 6,187 | 6,187 | |||||||
Withholding of shares from stock-based compensation for grantee income taxes | (2,486) | (2,486) | |||||||
Dividend equivalents on RSUs | 1,070 | 1,070 | |||||||
Changes in retained earnings | |||||||||
Net income | 103,604 | 86,577 | 17,027 | ||||||
Cash dividends declared | |||||||||
Common stock | $ (76,707) | (76,707) | |||||||
Common stock, cash dividends declared per share | $ 3.12 | ||||||||
Stock Repurchased And Retired During Period Value Retained Earnings | $ 2,271 | 2,271 | |||||||
Dividend equivalents on RSUs | (1,070) | (1,070) | |||||||
Other comprehensive income (loss) | |||||||||
Foreign currency translation, net of income taxes | (6,367) | (5,830) | (537) | ||||||
hedges, net of income tax | $ 3,993 | $ 18,620 | $ 3,993 | $ 18,620 | |||||
Pension and other postretirement benefit plans, net of income taxes | 5,943 | 5,943 | |||||||
Other changes in noncontrolling interests | |||||||||
Dividends paid to noncontrolling shareholders | (13,390) | (13,390) | |||||||
Balance at end of year at Mar. 31, 2022 | $ 1,384,769 | 330,662 | 1,094,192 | (84,311) | 44,226 | ||||
Balance at end of year, shares at Mar. 31, 2022 | 24,550,019 | ||||||||
Changes in preferred and common stock | |||||||||
Repurchase of stock | $ (893) | (893) | |||||||
Issuance of stock, shares | 71,466 | ||||||||
Repurchase of stock, shares | (66,124) | ||||||||
Accrual of stock-based compensation | $ 8,420 | 8,420 | |||||||
Withholding of shares from stock-based compensation for grantee income taxes | (2,090) | (2,090) | |||||||
Dividend equivalents on RSUs | 1,148 | 1,148 | |||||||
Changes in retained earnings | |||||||||
Net income | 130,236 | 124,052 | 6,184 | ||||||
Cash dividends declared | |||||||||
Common stock | $ (77,643) | (77,643) | |||||||
Common stock, cash dividends declared per share | $ 3.16 | ||||||||
Stock Repurchased And Retired During Period Value Retained Earnings | $ 2,555 | 2,555 | |||||||
Dividend equivalents on RSUs | (1,148) | (1,148) | |||||||
Other comprehensive income (loss) | |||||||||
Foreign currency translation, net of income taxes | (3,166) | (3,268) | 102 | ||||||
hedges, net of income tax | 1,320 | 6,113 | 1,320 | 6,113 | |||||
Pension and other postretirement benefit plans, net of income taxes | 3,089 | 3,089 | |||||||
Other changes in noncontrolling interests | |||||||||
Dividends paid to noncontrolling shareholders | (10,221) | (10,221) | |||||||
Other | (427) | (427) | |||||||
Balance at end of year at Mar. 31, 2023 | $ 1,436,952 | 337,247 | 1,136,898 | (77,057) | 39,864 | ||||
Balance at end of year, shares at Mar. 31, 2023 | 24,555,361 | ||||||||
Changes in preferred and common stock | |||||||||
Repurchase of stock | $ (1,373) | (1,373) | |||||||
Issuance of stock, shares | 118,047 | ||||||||
Repurchase of stock, shares | (100,000) | ||||||||
Accrual of stock-based compensation | $ 12,063 | 12,063 | |||||||
Withholding of shares from stock-based compensation for grantee income taxes | (3,607) | (3,607) | |||||||
Dividend equivalents on RSUs | 1,266 | 1,266 | |||||||
Changes in retained earnings | |||||||||
Net income | 132,971 | 119,598 | 13,373 | ||||||
Cash dividends declared | |||||||||
Common stock | $ (78,663) | (78,663) | |||||||
Common stock, cash dividends declared per share | $ 3.20 | ||||||||
Stock Repurchased And Retired During Period Value Retained Earnings | $ 3,371 | 3,371 | |||||||
Dividend equivalents on RSUs | (1,266) | (1,266) | |||||||
Other comprehensive income (loss) | |||||||||
Foreign currency translation, net of income taxes | (1,531) | (582) | (949) | ||||||
hedges, net of income tax | $ (5,515) | $ 3,235 | $ (5,515) | $ 3,235 | |||||
Pension and other postretirement benefit plans, net of income taxes | (1,666) | (1,666) | |||||||
Other changes in noncontrolling interests | |||||||||
Dividends paid to noncontrolling shareholders | (10,572) | (10,572) | |||||||
Balance at end of year at Mar. 31, 2024 | $ 1,478,923 | $ 345,596 | $ 1,173,196 | $ (81,585) | $ 41,716 | ||||
Balance at end of year, shares at Mar. 31, 2024 | 24,573,408 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Common stock, cash dividends declared per share | $ 3.20 | $ 3.16 | $ 3.12 |
Nature Of Operations And Signif
Nature Of Operations And Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Nature Of Operations And Significant Accounting Policies | NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Universal Corporation, which together with its subsidiaries is referred to herein as “Universal” or the “Company,” is a global business-to-business agriproducts company. The Company is the leading global leaf tobacco supplier and provides high-quality plant-based ingredients to food and beverage end markets. The Company conducts its leaf tobacco business in over 30 countries, primarily in major tobacco-producing regions of the world. Consolidation The consolidated financial statements include the accounts of Universal Corporation and all domestic and foreign subsidiaries in which the Company maintains a controlling financial interest. Control is generally determined based on a voting interest of greater than 50%, such that Universal controls all significant corporate activities of the subsidiary. All significant intercompany accounts and transactions are eliminated in consolidation. The equity method of accounting is used for investments in companies where Universal Corporation has a voting interest of 20% to 50%. These investments are accounted for under the equity method because Universal exercises significant influence over those companies, but not control. The Company received no dividends in fiscal year 2024, $5.6 million in fiscal year 2023, and $4.3 million in fiscal year 2022, from companies accounted for under the equity method. Investments where Universal has a voting interest of less than 20% are not significant and do not have readily determinable fair values. As such, the Company has elected the alternate method of measuring these investments at cost, less any impairment. The Company's 49% ownership interest in Socotab L.L.C. (“Socotab”), a leading supplier of oriental tobaccos with operations located principally in Eastern Europe and Turkey, is the primary investment accounted for under the equity method. The investment in Socotab is an important part of the Company's overall product and service arrangements with its major customers. The Company reviews the carrying value of its investments in Socotab and its other unconsolidated affiliates on a regular basis and considers whether any factors exist that might indicate an impairment in value that is other than temporary. The Company's operations in Zimbabwe are deconsolidated under accounting requirements that apply under certain conditions to foreign subsidiaries that are subject to foreign exchange controls and other government restrictions. The investment in the Zimbabwe operations is accounted for at cost and was zero at March 31, 2024 and 2023. The Company has a net foreign currency translation loss associated with the Zimbabwe operations of approximately $7.2 million, which remains a component of accumulated other comprehensive loss at March 31, 2024. As a regular part of its reporting, the Company reviews the conditions that resulted in the deconsolidation of the Zimbabwe operations to confirm that such accounting treatment is still appropriate. Dividends from the Zimbabwe operations are recorded in income in the period received. The Company holds less than a 100% financial interest in certain consolidated subsidiaries. The net income and shareholders’ equity attributable to the noncontrolling interests in these subsidiaries are reported on the face of the consolidated financial statements. There were no material changes in the Company’s ownership percentage in any of these subsidiaries during fiscal years 2024, 2023, or 2022. Investments in Unconsolidated Affiliates The Company’s investments in its unconsolidated affiliates, which include its Zimbabwe operations, are non-marketable securities. Universal reviews such investments for impairment whenever events or changes in circumstances indicate that the carrying amount of an investment may not be recovered. For example, the Company would review such an investment for impairment if the investee were to lose a significant customer, suffer a large reduction in sales margins, experience a major change in its business environment, or undergo any other significant change in its normal business. In assessing the recoverability of these investments, the Company follows the applicable accounting guidance in determining the fair value of the investments. In most cases, this involves the use of undiscounted and discounted cash flow models (Level 3 of the fair value hierarchy under the accounting guidance). If the fair value of an unconsolidated investee is determined to be lower than its carrying value, an impairment loss is recognized. The determination of fair value using discounted cash flow models is normally not based on observable market data from independent sources and therefore requires significant management judgment with respect to estimates of future operating earnings and the selection of an appropriate discount rate. The use of different assumptions could increase or decrease estimated future operating cash flows, and the discounted value of those cash flows, and therefore could increase or decrease any impairment charge related to these investments. During the fiscal year ended March 31, 2022, the Company recognized an immaterial impairment of an investment in an equity method investee in Africa. In its consolidated statements of income, the Company reports its proportional share of the earnings of unconsolidated affiliates accounted for on the equity method based on the pretax earnings of those affiliates, as permitted under the applicable accounting guidance. All applicable foreign and U.S. income taxes are provided on these earnings and reported as a component of consolidated income tax expense. For unconsolidated affiliates located in foreign jurisdictions, repatriation of the Company’s share of the earnings through dividends is assumed in determining consolidated income tax expense. The following table provides a reconciliation of (1) equity in the pretax earnings of unconsolidated affiliates, as reported in the consolidated statements of income to (2) equity in the net income of unconsolidated affiliates, net of dividends, as reported in the consolidated statements of cash flows for the fiscal years ended March 31, 2024, 2023, and 2022: Fiscal Year Ended March 31, 2024 2023 2022 Equity in pretax earnings reported in the consolidated statements of income $ 756 $ 2,383 $ 6,095 Less: Equity in income taxes 483 (781) (1,481) Equity in net income 1,239 1,602 4,614 Less: Dividends received on investments (1) — (5,612) (4,285) Equity in net income, net of dividends, reported in the consolidated statements of cash flows $ 1,239 $ (4,010) $ 329 (1) In accordance with the applicable accounting guidance, dividends received from unconsolidated affiliates accounted for on the equity method that represent a return on capital (i.e., a return of earnings on a cumulative basis) are presented as operating cash flows in the consolidated statements of cash flows. Earnings Per Share The Company calculates basic earnings per share based on Net income attributable to Universal Corporation. The calculation uses the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed in a similar manner using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential common shares include unvested restricted stock units and performance share units that are assumed to be fully vested and paid out in shares of common stock. Calculations of earnings per share for the fiscal years ended March 31, 2024, 2023, and 2022, are provided in Note 5. Cash, Restricted Cash, and Cash Equivalents All highly liquid investments with a maturity of three months or less at the time of purchase are classified as cash equivalents. Restricted cash was associated with the acquisition of Silva International, Inc. ("Silva") and was recognized as a component of other noncurrent assets at March 31, 2022. The restricted cash associated with the Silva acquisition was released to the selling shareholder during the fiscal year ended March 31, 2023. See Note 2 for more information about the release of restricted cash. Advances to Tobacco Suppliers In many sourcing origins where the Company operates, it provides agronomy services and seasonal advances of seed, fertilizer, and other supplies to tobacco farmers for crop production, or makes seasonal cash advances to farmers for the procurement of those inputs. These advances are typically short term, are repaid upon delivery of tobacco to the Company, and are reported in advances to suppliers in the consolidated balance sheets. In several origins, the Company has made long-term advances to tobacco farmers to finance curing barns and other farm infrastructure. In some years, due to low crop yields and other factors, individual farmers may not deliver sufficient volumes of tobacco to fully repay their seasonal advances, and the Company may extend repayment of those advances into future crop years. The long-term portion of advances is included in other noncurrent assets in the consolidated balance sheets. Both the current and the long-term portions of advances to tobacco suppliers are reported net of allowances recorded when the Company determines that amounts outstanding are not likely to be collected. Short-term and long-term advances to tobacco suppliers totaled approximately $162 million at March 31, 2024 and $199 million at March 31, 2023. The related valuation allowances totaled $20 million at March 31, 2024, and $24 million at March 31, 2023, and were estimated based on the Company’s historical loss information and crop projections. The allowances were increased by net provisions for estimated uncollectible amounts of approximately $14.1 million in fiscal year 2024, $10.6 million in fiscal year 2023, and $6.0 million in fiscal year 2022. These net provisions are included in selling, general, and administrative expenses in the consolidated statements of income. Interest on advances is recognized in earnings upon the farmers’ delivery of tobacco in payment of principal and interest. Advances on which interest accruals had been discontinued totaled approximately $2 million and $3 million at March 31, 2024 and 2023, respectively. Inventories Inventories are valued at the lower of cost or net realizable value. Raw materials primarily consist of unprocessed leaf tobacco, which is clearly identified by type and grade at the time of purchase. The Company tracks the costs associated with this tobacco in the final product lots, and maintains this identification through the time of sale. This method of cost accounting is referred to as the specific cost or specific identification method. The predominant cost component of the Company’s inventories is the cost of the unprocessed tobacco. Direct and indirect processing costs related to these raw materials are capitalized and allocated to inventory in a systematic manner. The Company does not capitalize any interest or sales-related costs in inventory. In-bound freight costs are recorded in cost of goods sold. Other inventories consist primarily of unprocessed and processed food and vegetable ingredients, botanical extracts, seed, fertilizer, packing materials, and other supplies, and are valued using the specific cost method. Recoverable Value-Added Tax Credits In many foreign countries, the Company’s local operating subsidiaries pay significant amounts of value-added tax (“VAT”) on purchases of unprocessed and processed tobacco, crop inputs, packing materials, and various other goods and services. In some countries, VAT is a national tax, and in other countries it is assessed at the state level. Items subject to VAT vary from jurisdiction to jurisdiction, as do the rates at which the tax is assessed. When tobacco is sold to customers in the country of origin, the operating subsidiaries generally collect VAT on those sales. The subsidiaries are normally permitted to offset their VAT payments against the collections and remit only the incremental VAT collections to the tax authorities. When tobacco is sold for export, VAT is normally not assessed. In countries where tobacco sales are predominantly for export markets, VAT collections generated on downstream sales are often not sufficient to fully offset the subsidiaries’ VAT payments. In those situations, unused VAT credits can accumulate. Some jurisdictions have procedures that allow companies to apply for refunds of unused VAT credits from the tax authorities, but the refund process often takes an extended period of time, and it is not uncommon for refund applications to be challenged or rejected in part on technical grounds. Other jurisdictions may permit companies to sell or transfer unused VAT credits to third parties in private transactions, although approval for such transactions must normally be obtained from the tax authorities, limits on the amounts that can be transferred may be imposed, and the proceeds realized may be heavily discounted from the face value of the credits. Due to these factors, local operating subsidiaries in some countries can accumulate significant balances of VAT credits over time. The Company reviews these balances on a regular basis and records valuation allowances on the credits to reflect amounts that are not expected to be recovered, as well as discounts anticipated on credits that are expected to be sold or transferred. At March 31, 2024 and 2023, the aggregate balances of recoverable tax credits held by the Company’s subsidiaries totaled approximately $72 million and $64 million, respectively, and the related valuation allowances totaled approximately $21 million and $22 million, respectively. The net balances are reported in other current assets and other noncurrent assets in the consolidated balance sheets. Property, Plant and Equipment Depreciation of property, plant and equipment is based upon historical cost and the estimated useful lives of the assets. Depreciation is calculated primarily using the straight-line method. Buildings include processing and blending facilities, offices, and warehouses. Machinery and equipment consists of processing and packing machinery and transport, office, and computer equipment. Estimated useful lives range as follows: buildings - 15 to 40 years; processing and packing machinery - 3 to 11 years; transport equipment - 3 to 10 years; and office and computer equipment - 3 to 12 years. Where applicable and material in amount, the Company capitalizes related interest costs during periods that property, plant and equipment are being constructed or made ready for service. No interest was capitalized in fiscal years 2024, 2023, or 2022. Leases The Company determines if an arrangement meets the definition of a lease at inception. The Company, as a lessee, enters into operating leases for land, buildings, equipment, and vehicles. For all operating leases with terms greater than 12 months and with fixed payment arrangements, a lease liability and corresponding right-of-use asset are recognized in the balance sheet for the term of the lease by calculating the net present value of future lease payments. On the date of lease commencement, the present value of lease liabilities is determined by discounting the future lease payments by the Company’s collateralized incremental borrowing rate, adjusted for the lease term and currency of the lease payments. If a lease contains a renewal option that the Company is reasonably certain to exercise, the Company accounts for the original lease term and expected renewal term in the calculation of the lease liability and right-of-use asset. Certain of the Company’s leases include both lease and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component, as the Company has elected the practical expedient to group lease and non-lease components for real estate leases. Additional disclosures related to the Company's leases are provided in Note 10. Goodwill and Other Intangibles Goodwill and other intangibles are disclosed in Note 7. Goodwill principally consists of the excess of the purchase price of acquired companies over the fair value of the net assets. Goodwill is carried at the lower of cost or fair value and is reviewed for potential impairment on an annual basis as of the end of the fiscal year. Reporting units are distinct operating subsidiaries or groups of subsidiaries that typically compose the Company’s business in a specific country or location. Goodwill is allocated to reporting units based on the country or location to which a specific acquisition relates, or by allocation based on expected future cash flows if the acquisition relates to more than one country or location. The majority of the Company’s goodwill relates to its reporting unit in Brazil and reporting units in the Ingredients operating segment. See Notes 2 and 7 for additional information. Significant adverse changes in the operations or estimated future cash flows for a reporting unit with recorded goodwill could result in an impairment charge. Accounting Standards Codification Topic 350 ("ASC 350") permits companies to base initial assessments of potential goodwill impairment on qualitative factors, but also allows companies to bypass the qualitative assessment and perform a quantitative assessment. The Company elected to bypass the qualitative assessment and perform a quantitative assessment of goodwill impairment at March 31, 2024. The quantitative goodwill assessment consists of comparing the fair value of each reporting unit to the carrying value of that reporting unit. In the event that the carrying value of the reporting unit exceeds its fair value, an impairment of the reporting unit's goodwill is recognized, up to the amount of goodwill allocated to that reporting unit. Fair value was assessed using a discounted cash flow model, comprised of estimates of future cash flows and discount rates. Based on this quantitative assessment, the Company determined there was no impairment of goodwill for any of its reporting units as of March 31, 2024. The Company elected to use the qualitative approach at March 31, 2023. The qualitative assessment did not indicate that it was more likely than not that the fair value of any of the reporting units was less than their respective carrying value, therefore no potential impairment of the Company's recorded goodwill was noted as of that date. Other intangibles principally consists of finite lived intangible assets including customer-related intangibles, trade names, developed technology, and noncompetition agreements. Intangible assets acquired in a business combination are recorded at fair value using a discounted cash flow approach. A discounted cash flow approach to value intangible assets requires assumptions about the timing, amount, and probability of future net cash flows, as well as the discount rate and market participant considerations. Other intangibles are amortized on a straight-line basis over the intangible asset's economic life. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment, disclosed in Note 4 and Note 12, whenever events, changes in business conditions, or other circumstances provide an indication that such assets may be impaired. Potential impairment is initially assessed by comparing management’s undiscounted estimates of future cash flows from the use or disposition of the assets to their carrying value. If the carrying value exceeds the undiscounted cash flows, an impairment charge is recorded to reduce the carrying value of the asset to its fair value determined in accordance with the accounting guidance. In many cases, this involves the use of discounted cash flow models that are not based on observable market data from independent sources (Level 3 of the fair value hierarchy under the accounting guidance). Income Taxes The Company provides deferred income taxes on temporary differences between the book and tax basis of its assets and liabilities. Those differences arise principally from employee benefit accruals, depreciation, deferred compensation, undistributed earnings of unconsolidated affiliates, undistributed earnings of foreign subsidiaries, goodwill, intangibles, and valuation allowances on farmer advances and VAT credits. Income taxes provided on pretax amounts recorded in accumulated other comprehensive income (loss) are released when the related pretax amounts are reclassified to earnings. Additional disclosures related to the Company's income taxes are disclosed in Note 6. Fair Values of Financial Instruments The fair value of the Company’s long-term debt, disclosed in Note 12, approximates the carrying amount since the variable interest rates in the underlying credit agreement reflect the market interest rates that were available to the Company at March 31, 2024. In periods when fixed-rate obligations are outstanding, fair values are estimated using market prices where they are available or discounted cash flow models based on current incremental borrowing rates for similar classes of borrowers and borrowing arrangements. The fair values of interest rate swap agreements designated as cash flow hedges and used to fix the variable benchmark rate on outstanding long-term debt are determined separately and recorded in other long-term liabilities. Except for interest rate swaps and forward foreign currency exchange contracts that are discussed below, the fair values of all other assets and liabilities that qualify as financial instruments approximate their carrying amounts. Derivative Financial Instruments The Company recognizes all derivatives on the balance sheet at fair value. Interest rate swaps and forward foreign currency exchange contracts are used from time to time to manage interest rate risk and foreign currency risk. The Company enters into such contracts only with counterparties of good standing. The credit exposure related to non-performance by the counterparties and the Company is considered in determining the fair values of the derivatives, and the effect has not been material to the financial statements or operations of the Company. Additional disclosures related to the Company’s derivatives and hedging activities are provided in Note 11. Translation and Remeasurement of Foreign Currencies The financial statements of foreign subsidiaries having the local currency as the functional currency are translated into U.S. dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates applicable to each reporting period for results of operations. Adjustments resulting from translation of financial statements are reflected as a separate component of other comprehensive income or loss. The financial statements of foreign subsidiaries having the U.S. dollar as the functional currency, with certain transactions denominated in a local currency, are remeasured into U.S. dollars. The remeasurement of local currency amounts into U.S. dollars creates remeasurement gains and losses that are included in earnings as a component of selling, general, and administrative expenses. The Company recognized net remeasurement losses of $5.1 million and $19.0 million in fiscal years 2024 and 2022, respectively, and net remeasurement gains of $3.9 million in fiscal year 2023. Foreign currency transactions and forward foreign currency exchange contracts that are not designated as hedges generate gains and losses when they are settled or when they are marked-to-market under the prescribed accounting guidance. These transaction gains and losses are also included in earnings as a component of selling, general, and administrative expenses. The Company recognized net foreign currency transaction losses of $3.2 million and $8.8 million in fiscal years 2024 and 2023, respectively, and net foreign currency transaction gains of $18.0 million in fiscal year 2022 . Customer Advances and Deposits From time to time, the Company receives advances and deposits from customers for future delivery of finished goods. The advance payments are applied against customer receivables after performance obligations are completed and recognition of revenue is appropriate. Revenue Recognition Revenue is recognized when the Company completes its performance obligation for the transfer of products and services under its contractual arrangements with customers. For sales of tobacco, satisfaction of the performance obligation and recognition of the corresponding revenue is based on the transfer of the ownership and control of the product to the customer. A large percentage of the Company’s sales are to major multinational manufacturers of consumer tobacco products. The Company works closely with those customers to understand and plan for their requirements for volumes, styles, and grades of leaf tobacco from its various growing regions, and extensive coordination is maintained on an ongoing basis to determine and satisfy their requirements for transfer of ownership and physical shipment of processed tobacco. The customers typically specify, in sales contracts and in shipping documents, the precise terms for transfer of title and risk of loss for the tobacco. Customer returns and rejections are not significant, and the Company’s sales history indicates that customer-specific acceptance provisions are consistently met upon transfer of title and risk of loss. While most of the Company’s revenue is derived from tobacco that is purchased from farmers, processed and packed in its factories, and then sold to customers, some revenue is earned from processing tobacco owned by customers and from other value-added services. The arrangements for processing services usually exist in specific markets where the customers contract directly with farmers for leaf production, and they have accounted for less than 5% of total revenue on an annual basis through the fiscal year ended March 31, 2024. Processing and packing of leaf tobacco is a short-duration process. Under normal operating conditions, raw tobacco that is placed into the production line exits as processed and packed tobacco within one hour, and is then later transported to customer-designated storage facilities. The revenue for these services is recognized when the performance obligation is met upon the completion of processing, and the Company's operating history indicates that customer requirements for processed tobacco are consistently met upon completion of processing. The Company has diversified its operations through acquisition of established companies that offer customers a wide range of both liquid and dehydrated fruit and vegetable ingredient products, as well as botanical extracts and flavors. These operations procure raw materials from domestic and international growers and suppliers and through a variety of processing steps (including sorting, cleaning, pressing, mixing, extracting, and blending), manufacture finished goods utilized in both human and pet food. The contracts for food ingredients with customers create a performance obligation to transfer the manufactured finished goods to the customer. Transaction prices for the sale of food ingredients are primarily based on negotiated fixed prices. At the point in time that the customer obtains control over the finished product, which is typically aligned with physical shipment under the contractual terms with the customer, the Company completes its performance obligation and recognizes the revenue for the sale. Additional disclosures related to the Company's revenue from contracts with customers are provided in Note 3. Stock-Based Compensation Share-based payments, such as grants of restricted stock units, performance share units, restricted stock, stock appreciation rights, and stock options, are measured at fair value and reported as expense in the financial statements over the requisite service or performance periods. Additional disclosures related to stock-based compensation are included in Note 15. Estimates and Assumptions The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Accounting Pronouncements Pronouncements Adopted in Fiscal Year 2022 The Company adopted FASB issued Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes” (“ASU 2019-12”) effective April 1, 2021. ASU 2019-12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The updated guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. There was no material impact to the consolidated financial statements from the adoption of ASU 2019-12. Pronouncements Adopted in Fiscal Year 2023 In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions related to contract modifications and hedge accounting to address the transitions from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance permits an entity to consider contract modification due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. ASU 2020-04 also temporarily allows hedge relationships to continue without de-designation upon changes due to reference rate reform. The Company adopted the new standard effective December 31, 2022. There was no material impact to the consolidated financial statements from the adoption of ASU 2020-04. Accounting Pronouncements to be Adopted in Future Years In November 2023, the FASB issued Accounting Standards Update No. 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 requires additional disclosures about profitability measures utilized by the chief operating decision maker and significant segment expenses. ASU 2023-07 also requires all annual disclosures regarding profit or loss and assets to be included in interim disclosures. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and for interim periods in fiscal years beginning after December 15, 2024, although early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its operating segments disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 requires additional disclosures reconciling the rates of different categories of income tax (i.e. federal , state, foreign, etc.) and a disaggregation of taxes paid and refunded. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and for interim periods in fiscal years beginning after December 15, 2025, although early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its income tax disclosures. Reclassifications |
Business Combinations
Business Combinations | 12 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS Acquisition of Shank's Extracts, LLC On October 4, 2021 , the Company acquired 100% of the capital stock of Shank's Extract's, LLC (“Shank's”), a flavors and botanical extracts processing company , for approximately $100 million in cash and $2.4 million of additional working capital on-hand at the date of acquisition. The acquisition of Shank's diversifies the Company's product offerings and generates new opportunities for its plant-based ingredients platform. A portion of the goodwill recorded as part of the acquisition was attributable to the assembled workforce of Shank's. The goodwill and intangibles recognized for the Shank's acquisition are deductible for U.S. income tax purposes. The transaction was treated as an asset acquisition for U.S. Federal tax purposes, resulting in a step-up of tax basis to fair value. The Company determined the Shank's operations are not material to the Company’s consolidated results. Therefore, pro forma information is not presented. For the fiscal year ended March 31, 2022 , the Company incurred $2.3 million for acquisition-related transaction costs for the purchase of Shank's. The acquisition-related costs were expensed as incurred and recorded in selling, general, and administrative expense on the consolidated statements of income. In November 2021, the Company acquired the land and buildings utilized by Shank's operations for $13.3 million. The purchase of the land and buildings resulted in the elimination of the $8.5 million operating lease right-of-use asset and lease liability recognized on the acquisition date for Shank's. The following table summarizes the final purchase price allocations of the assets acquired and liabilities assumed for the Shank's acquisition. Shank's Assets October 4, 2021 Cash and cash equivalents $ 754 Accounts receivable, net 6,643 Inventory 15,792 Other current assets 415 Property, plant and equipment 11,000 Operating lease right-of-use assets 8,531 Intangibles Customer relationships 24,000 Developed technology 4,500 Non-compete agreements 3,000 Goodwill 41,061 Total assets acquired 115,696 Liabilities Accounts payable and accrued expenses 6,159 Customer advances and deposits 351 Accrued compensation 655 Current portion operating lease liabilities 8,531 Total liabilities assumed 15,696 Total assets acquired and liabilities assumed $ 100,000 Restricted Cash Release of Deferred Proceeds from Acquisition of Silva International, Inc. During the three months ended December 31, 2022, the Company released $6.0 million, held in a third-party escrow account, to one of Silva's selling shareholders. The amounts were held in escrow since the date of acquisition, as the employee had a post-combination service requirement with forfeitable payment provisions. Therefore, under ASC Topic 805, "Business Combinations," the amounts held in escrow were treated as a contingent consideration arrangement and expensed as compensation expense in selling, general, and administrative expense on the consolidated statements of income. As of December 31, 2022, all amounts have been released to the selling shareholder, who remains employed by the Company, and expensed in the Company's consolidated statements of income. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers Revenue from Contracts with Customers | 12 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE FROM CONTRACTS WITH CUSTOMERS The majority of the Company’s consolidated revenue consists of sales of processed leaf tobacco to customers. The Company also earns revenue from processing leaf tobacco owned by customers and from various other services provided to customers. Additionally, the Company has fruit and vegetable processing operations, as well as flavor and extract services that provide customers with a range of food ingredient products. Payment terms with customers vary depending on customer creditworthiness, product types, services provided, and other factors. Contract durations and payment terms for all revenue categories generally do not exceed one year. Therefore, the Company has applied a practical expedient to not adjust the transaction price for the effects of financing components, as the Company expects that the period from the time the revenue for a transaction is recognized to the time the customer pays for the related good or service transferred will be one year or less. Below is a description of the major revenue-generating categories from contracts with customers. Tobacco Sales The majority of the Company’s business involves purchasing leaf tobacco from farmers in the origins where it is grown, processing and packing the tobacco in its factories, and then transferring ownership and control of the tobacco to customers. On a much smaller basis, the Company also sources processed tobacco from third-party suppliers for resale to customers. The contracts for tobacco sales with customers create a performance obligation to transfer tobacco to the customer. Transaction prices for the sale of tobacco are primarily based on negotiated fixed prices, but the Company does have a small number of cost-plus contracts with certain customers. Cost-plus arrangements provide the Company reimbursement of the cost to purchase and process the tobacco, plus a contractually agreed-upon profit margin. The Company utilizes the most likely amount methodology under the accounting guidance to recognize revenue for cost-plus arrangements with customers. Shipping and handling costs under tobacco sales contracts with customers are treated as fulfillment costs and included in the transaction price. Taxes assessed by government authorities on the sale of leaf tobacco products are excluded from the transaction price. At the point in time that the customer obtains control over the tobacco, which is typically aligned with physical shipment under the contractual terms with the customer, the Company completes its performance obligation and recognizes the revenue for the sale. Ingredient Sales The Company has diversified operations through acquisition of established companies that offer customers a wide range of both liquid and dehydrated fruit and vegetable ingredient products, flavors, and botanical extracts. These operations procure raw materials from domestic and international growers and suppliers and through a variety of processing steps including sorting, cleaning, pressing, mixing, extracting, and blending to manufacture finished goods utilized in both human and pet food. The contracts for food ingredients with customers create a performance obligation to transfer the manufactured finished goods to the customer. Transaction prices for the sale of food ingredients are primarily based on negotiated fixed prices. At the point in time that the customer obtains control over the finished product, which is typically aligned with physical shipment under the contractual terms with the customer, the Company completes its performance obligation and recognizes the revenue for the sale. Processing Revenue Processing and packing of customer-owned tobacco and ingredients is a short-duration process. Processing charges are primarily based on negotiated fixed prices per unit of weight processed. Under normal operating conditions, customer-owned raw materials that are placed into the production line exits as processed and packed product and is then later transported to customer-designated transfer locations. The revenue for these services is recognized when the performance obligation is satisfied, which is generally when processing is completed. The Company’s operating history and contract analyses indicate that customer requirements for processed tobacco and food ingredients products are consistently met upon completion of processing. Other Sales and Revenue from Contracts with Customers From time to time, the Company enters into various arrangements with customers to provide other value-added services that may include blending, chemical and physical testing of products, storage, logistics, sorting, and tobacco cutting services for select manufacturers. These other arrangements and operations are a much smaller portion of the Company’s business, and are separate and distinct contractual agreements from the Company’s tobacco and food ingredients sales or third-party processing arrangements with customers. The transaction prices and timing of revenue recognition of these items are determined by the specifics of each contract. Disaggregation of Revenue from Contracts with Customers The following table disaggregates the Company’s revenue by significant revenue-generating category: Fiscal Year Ended March 31, 2024 2023 2022 Tobacco sales $ 2,268,600 $ 2,093,493 $ 1,703,330 Ingredient sales 292,291 294,302 250,595 Processing revenue 82,976 78,357 77,048 Other sales and revenue from contracts with customers 77,777 83,666 60,177 Total revenue from contracts with customers 2,721,644 2,549,818 2,091,150 Other operating sales and revenues 26,929 20,006 12,451 Consolidated sales and other operating revenues $ 2,748,573 $ 2,569,824 $ 2,103,601 Other operating sales and revenues consists principally of interest on advances to tobacco suppliers and dividend income from unconsolidated affiliates. Major Customers |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Mar. 31, 2024 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | RESTRUCTURING AND IMPAIRMENT COSTS During the fiscal years ended March 31, 2024 and 2022, Universal recorded restructuring and impairment costs related to business changes and various initiatives to adjust certain operations and reduce costs. There were no restructuring costs incurred for the fiscal year ended March 31, 2023. Fiscal Year Ended March 31, 2024 Tobacco Operations During the fiscal year ended March 31, 2024, the Company restructured operations at its Global Laboratory Services, Inc ("GLS") facility in Wilson, NC. GLS provides testing for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors, and has capabilities for testing non-tobacco products. As a result of the restructuring of the GLS operations, the Company incurred $1.8 million of restructuring and impairment costs for the fiscal year ended March 31, 2024. During the fiscal year ended March 31, 2024, the Company also incurred $1.7 million of termination and impairment costs in other areas of the Tobacco Operations segment. Fiscal Year Ended March 31, 2022 Tobacco Operations As a result of efforts to exit the idled tobacco operations in Tanzania, the Company reevaluated the carrying values of property, plant, and equipment associated with the Tanzania operations. During the fiscal year ended March 31, 2022, the Company determined the carrying value exceeded the estimated fair value of those assets and recognized a $9.4 million impairment charge. During the fiscal year ended March 31, 2023, the Company sold all outstanding common stock, which included all properties, of the idled companies in Tanzania for $8.5 million. During the fiscal year ended March 31, 2022, the Company also incurred $2.2 million of termination costs for the Tobacco Operations segment. Ingredients Operations During the fiscal year ended March 31, 2022, the Company recognized $1.2 million of net gains on the sale of the remaining property, plant, and equipment associated with the wind-down of the CIFI operations that was announced in fiscal year 2021. A summary of the restructuring and impairment costs incurred during the fiscal years ended March 31, 2024, 2023, and 2022 is as follows: Fiscal Years Ended March 31, 2024 2023 2022 Restructuring Costs: Employee termination benefits $ 1,615 $ — $ 2,174 Other restructuring costs (181) — (24) 1,434 — 2,150 Impairment Costs: Property, plant, and equipment and other noncurrent assets 2,089 — 8,307 Total restructuring and impairment costs $ 3,523 $ — $ 10,457 A reconciliation of the Company’s liability for employee termination benefits and other restructuring costs for fiscal years 2022 through 2024 is as follows: Employee Other Costs Total Balance at April 1, 2021 $ 1,370 $ 613 $ 1,983 Fiscal Year 2022 Activity: Costs charged to expense 2,174 (24) 2,150 Payments and write-offs (3,544) (589) (4,133) Balance at March 31, 2022 — — — Fiscal Year 2023 Activity: Costs charged to expense — — — Payments and write-offs — — — Balance at March 31, 2023 — — — Fiscal Year 2024 Activity: Costs charged to expense 1,615 (181) 1,434 Payments and write-offs (1,362) 181 (1,181) Balance at March 31, 2024 $ 253 $ — $ 253 Universal continually reviews its business for opportunities to realize efficiencies, reduce costs, and realign its operations in response to business changes. The Company may incur additional restructuring and impairment costs in future periods as business changes occur and additional cost savings initiatives are implemented. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Fiscal Year Ended March 31, (in thousands, except share and per share data) 2024 2023 2022 Basic Earnings Per Share Numerator for basic earnings per share Net income attributable to Universal Corporation $ 119,598 $ 124,052 $ 86,577 Denominator for basic earnings per share Weighted average shares outstanding 24,851,858 24,773,710 24,764,177 Basic earnings per share $ 4.81 $ 5.01 $ 3.50 Diluted Earnings Per Share Numerator for diluted earnings per share Net income attributable to Universal Corporation $ 119,598 $ 124,052 $ 86,577 Denominator for diluted earnings per share: Weighted average shares outstanding 24,851,858 24,773,710 24,764,177 Effect of dilutive securities Employee and outside director share-based awards 189,056 170,131 158,719 Denominator for diluted earnings per share 25,040,914 24,943,841 24,922,896 Diluted earnings per share $ 4.78 $ 4.97 $ 3.47 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company operates in the United States and many foreign countries and is subject to the tax laws of many jurisdictions. Changes in tax laws or the interpretation of tax laws can affect the Company’s earnings, as can the resolution of pending and contested tax issues. The Company's consolidated effective income tax rate is affected by a number of factors, including the mix of domestic and foreign earnings and the effect of exchange rate changes on local taxable income and deferred taxes in foreign countries. For fiscal years ended March 31, 2024, 2023, and 2022 the Company's U.S. federal statutory tax rate is 21.0%. The U.S. tax system is primarily territorial based after the enactment of the Tax Cuts and Jobs Act of 2017. The U.S. tax law imposes a tax on U.S. shareholders on certain low-taxed income earned by controlled foreign corporations, referred to as global intangible low-taxed income ("GILTI"). The Company has made an accounting policy election to account for any additional tax resulting from the GILTI provisions in the year in which it is incurred and has not recorded any deferred taxes on temporary book-tax differences related to this income. The Company continues to assume repatriation of all undistributed earnings of its consolidated foreign subsidiaries and has therefore provided for expected foreign withholding taxes on the distribution of those earnings where applicable, net of any U.S. tax credit attributable to those withholding taxes. The Company has asserted permanent reinvestment of the book basis of certain foreign subsidiaries, and accordingly, no deferred income tax liability has been recorded for any potential taxable gain that may be realized on a future disposition or liquidation of any of those subsidiaries. It is not practicable for the Company to quantify any deferred income tax liability that would be attributable to those events. Income Tax Expense Income taxes for the fiscal years ended March 31, 2024, 2023, and 2022 consisted of the following: Fiscal Year Ended March 31, 2024 2023 2022 Current United States $ 5,107 $ 9,967 $ 15,042 State and local 696 1,134 265 Foreign 30,711 8,289 25,828 36,514 19,390 41,135 Deferred United States (824) (4,727) (498) State and local (138) 613 1,568 Foreign (4,443) (3,543) (3,542) (5,405) (7,657) (2,472) Total $ 31,109 $ 11,733 $ 38,663 Foreign taxes include any applicable U.S. tax expense on the earnings of foreign subsidiaries. Consolidated Effective Income Tax Rate A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows: Fiscal Year Ended March 31, 2024 2023 2022 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 0.3 1.0 1.0 Foreign earnings taxed at rates other than the U.S. federal statutory tax rate (5.2) (1.5) 3.7 Foreign dividend withholding taxes 2.9 2.6 2.3 Brazil tax ruling — (17.1) — Changes in uncertain tax positions (0.2) (0.1) (0.3) Other 0.2 2.4 (0.5) Effective income tax rate 19.0 % 8.3 % 27.2 % In fiscal year 2023, one of the Company's subsidiaries in Brazil received a favorable final judgement from the Brazilian Superior Court of Justice. The lawsuit asserted certain tax credits on exported goods should be excluded from taxable income. The Brazilian revenue authority asserted certain tax credits generated on purchased goods and services that were ultimately exported from Brazil should be included in the calculation of taxable income. The Brazilian Superior Court of Justice affirmed the tax credits are non-taxable in accordance with the historical and existing tax legislation in Brazil. The ruling resulted in recognition of $26.6 million of Brazilian tax credits due to the recalculation of federal income taxes in Brazil for years 2015 through 2022. The affirmative ruling also resulted in recognition of $5.0 million of interest income for the fiscal year ended March 31, 2023. The tax credits and associated interest income credits are being used to reduce federal non-income tax liabilities through the end of calendar year 2027. The tax credits were recognized as both current and noncurrent assets on the consolidated balance sheet based on when the credits are expected to be realized. Additionally, any unused tax credits will earn tax-exempt interest income through the expiration date, which can be used to reduce both non-income tax and income tax liabilities. The Brazilian federal tax authority has formally acknowledged the tax credits and related interest credits to be used by one of the Company's Brazilian subsidiaries. The ruling resulted in a net income tax benefit of $24.2 million in fiscal year 2023. The net income tax benefit included a $2.4 million income tax provision for U.S. federal income taxes related to the fiscal year 2018 consolidated federal tax return that will need to be amended. The Company sold its idled Tanzania operations and recognized $1.1 million of income taxes in the fiscal year ended March 31, 2023. In fiscal year 2022, the Company recognized a $1.7 million benefit related to a final tax law ruling at a foreign subsidiary. Components of Income Before Income Taxes The U.S. and foreign components of income before income taxes were as follows: Fiscal Year Ended March 31, 2024 2023 2022 United States $ 22,517 $ 27,942 $ 74,553 Foreign 141,563 114,027 67,714 Total $ 164,080 $ 141,969 $ 142,267 Deferred Income Tax Liabilities and Assets Significant components of deferred tax liabilities and assets were as follows: March 31, 2024 2023 Liabilities Foreign withholding taxes $ 15,350 $ 17,123 Property, plant and equipment 10,604 10,617 Undistributed earnings 3,145 3,772 Operating lease right-of-use assets 8,119 5,791 Goodwill and other intangible assets 32,232 33,781 Interest rate swap 3,036 1,885 All other 1,168 2,786 Total deferred tax liabilities $ 73,654 $ 75,755 Assets Employee benefit plans $ 15,938 $ 15,654 Reserves and accruals 6,973 5,692 Deferred income 5,827 5,573 Operating lease right-of-use liabilities 7,407 5,500 Currency translation losses of foreign subsidiaries 2,156 2,173 Local currency exchange losses of foreign subsidiaries 2,075 1,084 Foreign tax credit carryforward 8,196 5,578 Capital loss carryforwards 4,143 4,197 All other 9,997 11,016 Total deferred tax assets 62,712 56,467 Valuation allowance (13,016) (10,234) Net deferred tax assets $ 49,696 $ 46,233 At March 31, 2024, the Company had no material net operating loss carryforwards in either its domestic or foreign operations. Combined Income Tax Expense (Benefit) The combined income tax expense (benefit) allocable to continuing operations and other comprehensive income was as follows: Fiscal Year Ended March 31, 2024 2023 2022 Continuing operations $ 31,109 $ 11,733 $ 38,663 Other comprehensive loss (1,056) 3,551 6,555 Total $ 30,053 $ 15,284 $ 45,218 Uncertain Tax Positions A reconciliation of the beginning and ending balance of the gross liability for uncertain tax positions is as follows: Fiscal Year Ended March 31, 2024 2023 2022 Liability for uncertain tax positions, beginning of year $ 1,415 $ 2,024 $ 2,437 Additions: Related to tax positions for the current year 65 1,198 48 Related to tax positions for prior years — — 328 Reductions: Due to lapses of statutes of limitations (56) (75) (56) Due to tax settlements (311) (1,661) (814) Effect of currency rate changes (43) (71) 81 Liability for uncertain tax positions, end of year $ 1,070 $ 1,415 $ 2,024 The liability for uncertain tax positions at March 31, 2024 includes approximately $1.1 million that could have an effect on the consolidated effective tax rate if the tax benefits are recognized. The liability for uncertain tax positions includes $0.8 million related to tax positions for which it is reasonably possible that the amounts could change significantly before March 31, 2025. This amount reflects a possible decrease in the liability for uncertain tax positions that could result from the completion and resolution of tax audits and the expiration of open tax years in various tax jurisdictions. The $1.7 million settlement in fiscal year 2023 represents the resolution of a tax matter with a foreign tax authority. The $0.8 million settlement in fiscal year 2022 represents the resolution of a tax matter with a local country taxing authority. The Company accrued $0.5 million of the fiscal year 2022 settlement in prior fiscal years. For fiscal year ended March 31, 2023, the Company recognized $1.8 million as a reduction to interest expense related to an uncertain tax position on the Tanzania operations that were sold in fiscal year 2023. Amounts accrued or reversed for interest were not material for fiscal years 2024 and 2022. Amounts accrued or reversed for penalties were not material for fiscal years 2024 through 2022, and liabilities recorded for penalties at March 31, 2024 and 2023 also were not material. Universal and its subsidiaries file a U.S. federal consolidated income tax return, as well as returns in several U.S. states and a number of foreign jurisdictions. As of March 31, 2024, the Company's earliest open tax year for U.S. federal income tax purposes was its fiscal year ended March 31, 2018. Open tax years in U.S. federal, state and foreign jurisdictions range from 3 to 6 years. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND OTHER INTANGIBLES The Company's changes in goodwill at March 31, 2024 and 2023 consisted of the following: Fiscal Year Ended March 31, 2024 2023 Balance at beginning of year $ 213,922 $ 213,998 Foreign currency translation adjustment (53) (76) Balance at end of year $ 213,869 $ 213,922 The Company's intangible assets primarily consist of capitalized customer-related intangibles, trade names, proprietary developed technology and noncompetition agreements. The Company's intangible assets subject to amortization consisted of the following at March 31, 2024 and 2023: March 31, 2024 (in thousands, except useful life) Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships 11 - 13 $ 86,500 $ (25,424) $ 61,076 Trade names 5 11,100 (8,265) 2,835 Developed technology 13 9,300 (5,665) 3,635 Noncompetition agreements 4 - 5 4,000 (2,725) 1,275 Other 5 782 (720) 62 Total intangible assets $ 111,682 $ (42,799) $ 68,883 March 31, 2023 Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships 11 - 13 $ 86,500 $ (17,693) $ 68,807 Trade names 5 11,100 (6,045) 5,055 Developed technology 13 9,300 (5,319) 3,981 Noncompetition agreements 4 - 5 4,000 (1,775) 2,225 Other 5 721 (688) 33 Total intangible assets $ 111,621 $ (31,520) $ 80,101 Intangible assets are amortized on a straight-line basis over the asset's estimated useful economic life as noted above. The Company's amortization expense for intangible assets for the years ended March 31, 2024, 2023, and 2022: Fiscal Year Ended March 31, 2024 2023 2022 Amortization Expense $ 11,279 $ 12,455 $ 11,209 Amortization expense for the developed technology intangible asset is recorded in cost of goods sold in the consolidated income statements of income. The amortization expense for the other intangible assets is recorded in selling, general, and administrative expenses in the consolidated income statements of income. As of March 31, 2024, the expected future amortization expense for intangible assets is as follows: Fiscal Year 2025 $ 11,073 2026 9,253 2027 8,077 2028 8,077 2029 and thereafter 32,403 Total expected future amortization expense $ 68,883 |
Credit Facilities
Credit Facilities | 12 Months Ended |
Mar. 31, 2024 | |
Line of Credit Facility [Abstract] | |
Credit Facilities | CREDIT FACILITIES Bank Credit Agreement On December 15, 2022, the Company entered into a senior unsecured bank credit agreement that included a $530 million five-year revolving credit facility (expiring December 15, 2027), a $275 million five-year term loan (due December 15, 2027), and a $345 million seven-year term loan (due December 15, 2029). Borrowings under the revolving credit facility bear interest at a variable rate benchmarked to the Secured Overnight Financing Rate ("SOFR"), plus a margin that is based on the Company's credit measures. In addition to interest, the Company pays a facility fee on the revolving credit facility. $125 million was outstanding under the revolving credit facility at March 31, 2024. The credit agreement provides for an expansion of the facility under certain conditions to allow additional borrowings of up to $200 million. Additional information related to the term loans is provided in Note 9. The credit agreement includes financial covenants that require the Company to maintain a minimum level of tangible net worth and observe limits on debt levels. The Company was in compliance with those covenants at March 31, 2024. Short-Term Credit Facilities |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG-TERM DEBT The Company's long-term debt at March 31, 2024 and 2023 consisted of the following: March 31, 2024 2023 Senior bank term loans $ 620,000 $ 620,000 Less: current portion — — Less: unamortized debt issuance costs (2,636) (3,191) Long-term debt $ 617,364 $ 616,809 As discussed in Note 8, on December 15, 2022, the Company entered into a bank credit agreement that included a $275 million five-year term loan and a $345 million seven-year term loan. Both term loans were fully funded at closing, require no amortization, and are repayable without penalty prior to maturity. Under the credit agreement, both term loans bear interest at a variable rate benchmarked to the SOFR plus a margin that is based on the Company's credit measures. As discussed in Note 11, the Company had receive-floating/pay-fixed interest rate swap agreements in place with respect to the prior term loans through December 20, 2023 for the five-year term loan and through December 20, 2025 for the seven-year term loan. These agreements were terminated concurrently with the repayment of the prior term loans and replaced with new interest rate swap agreements that will continue to convert a portion of the variable benchmark rate to a fixed rate on each term loan through their respective maturity dates. The proceeds for the fair value of the terminated interest rate swap agreements, approximately $11.8 million, were recognized in accumulated other comprehensive income and are being amortized into earnings as a reduction of interest expense through their original maturity dates. With the swap agreements in place, the effective interest rates on the swapped portions of the five-year and seven-year term loans were 5.50% and 5.65% at March 31, 2024, respectively. The weighted average effective interest rates, when taking into consideration both the swapped and unswapped interest payments for all outstanding long-term debt, were 6.46% and 6.66% at March 31, 2024 for the five-year and seven-year term loans, respectively. Changes in the effective interest rates could result from a change in interest rates on the unhedged interest payments or a change in the Company's credit measures that impact the applicable credit spreads specified in the underlying loan agreement. Disclosures about the fair value of long-term debt are provided in Note 12. Shelf Registration In November 2023, the Company filed an undenominated automatic universal shelf registration statement with the U.S. Securities and Exchange Commission to provide for the future issuance of an undefined amount of additional debt or equity securities as determined by the Company and offered in one or more prospectus supplements prior to issuance. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lessee, Operating Leases | LEASES The Company, as a lessee, enters into operating leases for land, buildings, equipment, and vehicles. For all operating leases with terms greater than 12 months and with fixed payment arrangements, a lease liability and corresponding right-of-use asset are recognized in the balance sheet for the term of the lease by calculating the net present value of future lease payments. On the date of lease commencement, the present value of lease liabilities is determined by discounting the future lease payments by the Company’s collateralized incremental borrowing rate, adjusted for the lease term and currency of the lease payments. If a lease contains a renewal option that the Company is reasonably certain to exercise, the Company accounts for the original lease term and expected renewal term in the calculation of the lease liability and right-of-use asset. The following table sets forth the right-of-use assets and lease liabilities for operating leases included in the Company’s consolidated balance sheet: March 31, 2024 March 31, 2023 Assets Operating lease right-of-use assets $ 32,510 $ 40,505 Liabilities Current portion of operating lease liabilities $ 10,356 $ 11,404 Long-term operating lease liabilities 19,302 25,540 Total operating lease liabilities $ 29,658 $ 36,944 The following table sets forth the location and amount of operating lease costs included in the Company's consolidated statement of income: Fiscal Year Ended March 31, 2024 2023 2022 Income Statement Location Cost of goods sold $ 11,806 $ 11,036 $ 10,874 Selling, general, and administrative expenses 10,691 10,890 9,676 Total operating lease costs (1) $ 22,497 $ 21,926 $ 20,550 (1) Includes variable operating lease costs. The following table reconciles the undiscounted cash flows to the operating lease liabilities in the Company’s consolidated balance sheet: March 31, 2024 Fiscal Year Maturity of Operating Lease Liabilities 2025 $ 11,661 2026 7,632 2027 5,085 2028 3,405 2029 2,498 2030 and thereafter 4,290 Total undiscounted cash flows for operating leases $ 34,571 Less: Imputed interest (4,913) Total operating lease liabilities $ 29,658 As of March 31, 2024, the Company had entered into no additional operating leases that have not yet commenced. The following table sets forth supplemental information related to operating leases: Fiscal Year Ended March 31, (in thousands, except lease term and incremental borrowing rate) 2024 2023 2022 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of operating lease liabilities $ 13,898 $ 13,818 $ 12,018 Right-of-use assets obtained in exchange for new operating leases 8,507 13,536 22,506 Weighted Average Remaining Lease Term (years) 4.59 4.86 5.51 Weighted Average Collateralized Incremental Borrowing Rate 6.10 % 5.93 % 5.43 % |
Derivatives And Hedging Activit
Derivatives And Hedging Activities | 12 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives And Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Universal is exposed to various risks in its worldwide operations and uses derivative financial instruments to manage two specific types of risks – interest rate risk and foreign currency exchange rate risk. Interest rate risk has been managed by entering into interest rate swap agreements, and foreign currency exchange rate risk has been managed by entering into forward foreign currency exchange and option contracts. However, the Company’s policy also permits other types of derivative instruments. In addition, foreign currency exchange rate risk is also managed through strategies that do not involve derivative instruments, such as using local borrowings and other approaches to minimize net monetary positions in non-functional currencies. The disclosures below provide additional information about the Company’s hedging strategies, the derivative instruments used, and the effects of these activities on the consolidated statements of income and comprehensive income and the consolidated balance sheets. In the consolidated statements of cash flows, the cash flows associated with all of these activities are reported in net cash provided by operating activities. Cash Flow Hedging Strategy for Interest Rate Risk In December 2022, the Company entered into receive-floating/pay-fixed interest rate swap agreements that were designated and qualify as hedges of the exposure to changes in interest payment cash flows created by fluctuations in variable interest rates on two outstanding non-amortizing bank term loans that were funded as part of a new bank credit facility in December 2022 (see Note 9 for additional information). Although no significant ineffectiveness is expected with this hedging strategy, the effectiveness of the interest rate swaps is evaluated on a quarterly basis. At March 31, 2024, the total notional amount of the interest rate swaps was $310 million, which corresponded to a portion of the aggregate balance of the term loans. Previously, the Company had receive-floating/pay-fixed interest rate swap agreements that were designated and qualified as cash flow hedges for two non-amortizing bank loans that were repaid concurrent with closing on the new bank credit facility in December 2022. Those swap agreements, which had an aggregate notional amount of $370 million corresponding to a portion of the principal balance on the repaid loans, were terminated concurrent with the inception of the new swap agreements. The fair value of the previous swap agreements, approximately $11.8 million, was received from the counterparties upon termination and is being amortized from accumulated other comprehensive loss into earnings as a reduction of interest expense through the original maturity dates of those agreements. In February 2019, the Company had receive-floating/pay-fixed interest rate swap agreements that were designated and qualified as cash flow hedges for the two non-amortizing bank loans that were repaid in December 2018 and carried over to hedge the variable interest payments for the two non-amortizing bank loans that were repaid in December 2022. Those swap agreements were terminated in February 2019. The fair value of the two swap agreements terminated in February 2019, approximately $5.4 million, was received in February 2019 from the counterparties upon termination and was amortized from accumulated other comprehensive loss into earnings as a reduction of interest expense through the original maturity dates of those agreements. As of March 31, 2024, the entire deferred gain has been amortized. Cash Flow Hedging Strategy for Foreign Currency Exchange Rate Risk Related to Forecast Purchases of Tobacco, Tobacco Processing Costs, and Crop Input Sales The majority of the tobacco production in most countries outside the United States where Universal operates is sold in export markets at prices denominated in U.S. dollars. However, sales of crop inputs (such as seeds and fertilizers) to farmers, purchases of tobacco from farmers and most processing costs (such as labor and energy) in those countries are usually denominated in the local currency. Changes in exchange rates between the U.S. dollar and the local currencies where tobacco is grown and processed affect the ultimate U.S. dollar sales of crop inputs and cost of processed tobacco. From time to time, the Company enters into forward and option contracts to buy U.S. dollars and sell the local currency at future dates that coincide with the sale of crop inputs to farmers. In the case of forecast purchases of tobacco and the related processing costs, the Company enters into forward and option contracts to sell U.S. dollars and buy the local currency at future dates that coincide with the expected timing of a portion of the tobacco purchases and processing costs. These strategies offset the variability of future U.S. dollar cash flows for sales of crop inputs, tobacco purchases, and processing costs for the foreign currency notional amount hedged. These hedging strategies have been used mainly for tobacco purchases, processing costs, and sales of crop inputs in Brazil, although the Company has also entered into hedges for a portion of the tobacco purchases in Africa. The aggregate U.S. dollar notional amount of forward and option contracts entered for these purposes during fiscal years 2024, 2023, and 2022 was as follows: Fiscal Year Ended March 31, (in millions) 2024 2023 2022 Tobacco purchases $ 30.3 $ 47.1 $ 134.7 Processing costs 4.9 9.7 32.5 Crop input sales 30.1 35.2 65.3 Total $ 65.3 $ 92.0 $ 232.5 Fluctuations in exchange rates and in the amount and timing of fixed-price orders from customers for their purchases from individual crop years routinely cause variations in the U.S. dollar notional amount of forward contracts entered into from one year to the next. Contracts related to tobacco purchases and crop input sales were designated and qualified as hedges of the future cash flows associated with the forecast purchases of tobacco. As a result, changes in fair values of the forward contracts have been recognized in comprehensive income as they occurred, but only recognized in earnings as a component of cost of goods sold upon sale of the related tobacco to third-party customers. The Company de-designates ineffective tobacco purchases and crop input sales hedges to selling, general, and administrative expense when the forecasted tobacco purchases or crop input sales are no longer expected to occur. The table below presents the expected timing of when the remaining accumulated other comprehensive gains and losses as of March 31, 2024 for cash flows hedges of tobacco purchases and crop input sales will be recognized in earnings. Hedging Program Crop Year Geographic Location(s) Fiscal Year Earnings Tobacco purchases 2023 Brazil 2025 Crop input sales 2025 Brazil 2026 Crop input sales 2024 Brazil 2025 Forward contracts related to processing costs have not been designated as hedges, and gains and losses on those contracts have been recognized in earnings on a mark-to-market basis. Hedging Strategy for Foreign Currency Exchange Rate Risk Related to Net Local Currency Monetary Assets and Liabilities of Foreign Subsidiaries Most of the Company’s foreign subsidiaries transact the majority of their sales in U.S. dollars and finance the majority of their operating requirements with U.S. dollar borrowings, and therefore use the U.S. dollar as their functional currency. These subsidiaries normally have certain monetary assets and liabilities on their balance sheets that are denominated in the local currency. Those assets and liabilities can include cash and cash equivalents, accounts receivable and accounts payable, advances to farmers and suppliers, deferred income tax assets and liabilities, recoverable VAT, operating lease liabilities, and other items. Net monetary assets and liabilities denominated in the local currency are remeasured into U.S. dollars each reporting period, generating gains and losses that the Company records in earnings as a component of selling, general, and administrative expenses. The level of net monetary assets or liabilities denominated in the local currency normally fluctuates throughout the year based on the operating cycle, but it is most common for monetary assets to exceed monetary liabilities, sometimes by a significant amount. When this situation exists and the local currency weakens against the U.S. dollar, remeasurement losses are generated. Conversely, remeasurement gains are generated on a net monetary asset position when the local currency strengthens against the U.S. dollar. To manage a portion of its exposure to currency remeasurement gains and losses, the Company enters into forward contracts to buy or sell the local currency at future dates coinciding with expected changes in the overall net local currency monetary asset position of the subsidiary. Gains and losses on the forward contracts are recorded in earnings as a component of selling, general, and administrative expenses for each reporting period as they occur, and thus directly offset the related remeasurement losses or gains in the consolidated statements of income for the notional amount hedged. The Company does not designate these contracts as hedges for accounting purposes. The contracts are generally arranged to hedge the subsidiary's projected exposure to currency remeasurement risk for specified periods of time, and new contracts are entered as necessary throughout the year to replace previous contracts as they mature. The Company is currently using forward currency contracts to manage its exposure to currency remeasurement risk in Brazil. The total notional amounts of contracts outstanding at March 31, 2024 and 2023, were approximately $20.9 million and $42.8 million, respectively. To further mitigate currency remeasurement exposure, the Company’s foreign subsidiaries may utilize short-term local currency financing during certain periods. This strategy, while not involving the use of derivative instruments, is intended to minimize the subsidiary’s net monetary position by financing a portion of the local currency monetary assets with local currency monetary liabilities, thus hedging a portion of the overall position. Several of the Company’s foreign subsidiaries transact the majority of their sales and finance the majority of their operating requirements in their local currency, and therefore use their respective local currencies as the functional currency for reporting purposes. From time to time, these subsidiaries sell tobacco to customers in transactions that are not denominated in the functional currency. In those situations, the subsidiaries routinely enter into forward exchange contracts to offset currency risk for the period of time that a fixed-price order and the related trade account receivable are outstanding with the customer. The contracts are not designated as hedges for accounting purposes. Effect of Derivative Financial Instruments on the Consolidated Statements of Income The table below outlines the effects of the Company’s use of derivative financial instruments on the consolidated statements of income for the fiscal years ended March 31, 2024, 2023, and 2022. Fiscal Year Ended March 31, 2024 2023 2022 Cash Flow Hedges - Interest Rate Swap Agreements Derivative Effective Portion of Hedge Gain (loss) recorded in accumulated other comprehensive loss $ 15,375 $ 9,804 $ 15,651 Gain (loss) reclassified from accumulated other comprehensive loss into earnings $ 5,592 $ (66) $ (8,907) Gain on terminated interest rate swaps amortized from accumulated other comprehensive loss into earnings $ 5,397 $ 1,570 $ 1,061 Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings Interest expense Ineffective Portion of Hedge Gain (loss) recognized in earnings $ — $ — $ — Location of gain (loss) recognized in earnings Selling, general and administrative expenses Hedged Item Description of hedged item Floating rate interest payments on term loans Cash Flow Hedges - Forward Foreign Currency Exchange Contracts Derivative Effective Portion of Hedge Gain (loss) recorded in accumulated other comprehensive loss $ 2,088 $ 5,274 $ 13,879 Gain (loss) reclassified from accumulated other comprehensive loss into earnings $ 7,996 $ 4,469 $ 5,426 Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings Cost of goods sold Ineffective Portion and Early De-designation of Hedges Gain (loss) recognized in earnings $ 1,138 $ (520) $ 2,040 Location of gain (loss) recognized in earnings Selling, general and administrative expenses Hedged Item Description of hedged item Forecast purchases of tobacco and sales of crop inputs in Brazil and Africa Derivatives Not Designated as Hedges - Gain (loss) recognized in earnings $ (3,484) $ (4,811) $ 16,732 Location of gain (loss) recognized in earnings Selling, general and administrative expenses For the outstanding interest rate swap agreements, the effective portion of the gain or loss on the derivative is recorded in accumulated other comprehensive loss and any ineffective portion is recorded in selling, general and administrative expenses. For the forward foreign currency exchange contracts designated as cash flow hedges of tobacco purchases in Brazil and Africa, as well as the crop input sales in Brazil, a net hedge loss of approximately $0.1 million remained in accumulated other comprehensive loss at March 31, 2024. That balance reflects gains and losses on contracts related to the 2023 Brazil crops and the 2025 and 2024 Brazil crop input sales, less the amounts reclassified to earnings related to tobacco sold through March 31, 2024. Based on the hedging strategy, as the gain or loss is recognized in earnings, it is expected to be offset by a change in the direct cost for the tobacco or by a change in sales prices if the strategy has been mandated by the customer. Generally, margins on the sale of the tobacco will not be significantly affected. Effect of Derivative Financial Instruments on the Consolidated Balance Sheets The table below outlines the effects of the Company’s derivative financial instruments on the consolidated balance sheets at March 31, 2024 and 2023: Derivatives in a Fair Value Derivatives in a Fair Value Balance Fair Value as of March 31, Balance Fair Value as of March 31, 2024 2023 2024 2023 Derivatives Designated as Hedging Instruments Interest rate swap agreements Other $ 6,706 $ — Other $ — $ 3,077 Forward foreign currency exchange contracts Other 77 7,102 Accounts 9 890 Total $ 6,783 $ 7,102 $ 9 $ 3,967 Derivatives Not Designated as Hedging Instruments Forward foreign currency exchange contracts Other $ 245 $ 1,320 Accounts $ 12 $ 435 Total $ 245 $ 1,320 $ 12 $ 435 Substantially all of the Company's forward foreign currency exchange contracts are subject to master netting arrangements, whereby the right to offset occurs in the event of default by a participating party. The Company has elected to present these contracts on a gross basis in the consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE MEASUREMENTS Universal measures certain financial and nonfinancial assets and liabilities at fair value based on applicable accounting guidance. The financial assets and liabilities measured at fair value include money market funds, trading securities associated with deferred compensation plans, interest rate swap agreements, forward foreign currency exchange contracts, and guarantees of bank loans to tobacco growers. The application of the fair value guidance to nonfinancial assets and liabilities primarily includes the determination of fair values for goodwill and long-lived assets when indicators of potential impairment are present. Under the accounting guidance, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The framework for measuring fair value is based on a fair value hierarchy that distinguishes between observable inputs and unobservable inputs. Observable inputs are based on market data obtained from independent sources. Unobservable inputs require the Company to make its own assumptions about the value placed on an asset or liability by market participants because little or no market data exists. There are three levels within the fair value hierarchy. Level Description 1 quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date; 2 quoted prices in active markets for similar assets or liabilities, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability; and 3 unobservable inputs for the asset or liability. As permitted under the accounting guidance, the Company uses net asset value per share ("NAV") as a practical expedient to measure the fair value of its money market funds. The fair values for those funds are presented under the heading "NAV" in the tables that follow in this disclosure. In measuring the fair value of liabilities, the Company considers the risk of non-performance in determining fair value. Universal has not elected to report at fair value any financial instruments or any other assets or liabilities that are not required to be reported at fair value under current accounting guidance. Recurring Fair Value Measurements At March 31, 2024 and 2023, the Company had certain financial assets and financial liabilities that were required to be measured and reported at fair value on a recurring basis. These assets and liabilities are listed in the tables below and are classified based on how their values were determined under the fair value hierarchy or the NAV practical expedient: March 31, 2024 Fair Value Hierarchy NAV Level 1 Level 2 Level 3 Total Assets Money market funds $ 145 $ — $ — $ — $ 145 Trading securities associated with deferred compensation plans — 12,409 — — 12,409 Interest rate swap agreements — — 6,706 — 6,706 Forward foreign currency exchange contracts — — 322 — 322 Total financial assets measured and reported at fair value $ 145 $ 12,409 $ 7,028 $ — $ 19,582 Liabilities Forward foreign currency exchange contracts $ — $ — $ 21 $ — $ 21 Total financial liabilities measured and reported at fair value $ — $ — $ 21 $ — $ 21 March 31, 2023 Fair Value Hierarchy NAV Level 1 Level 2 Level 3 Total Assets Money market funds $ 400 $ — $ — $ — $ 400 Trading securities associated with deferred compensation plans — 11,698 — — 11,698 Forward foreign currency exchange contracts — — 8,422 — 8,422 Total financial assets measured and reported at fair value $ 400 $ 11,698 $ 8,422 $ — $ 20,520 Liabilities Interest rate swap agreements $ — $ — $ 3,077 $ — $ 3,077 Forward foreign currency exchange contracts — — 1,325 — 1,325 Total financial liabilities measured and reported at fair value $ — $ — $ 4,402 $ — $ 4,402 Money market funds The fair value of money market funds, which are reported in cash and cash equivalents in the consolidated balance sheets, is based on NAV, which is the amount at which the funds are redeemable and is used as a practical expedient for fair value. These funds are not classified in the fair value hierarchy, but are disclosed as part of the fair value table above. Trading securities associated with deferred compensation plans Trading securities represent mutual fund investments that are matched to employee deferred compensation obligations. These investments are bought and sold as employees defer compensation, receive distributions, or make changes in the funds underlying their accounts. Quoted market prices (Level 1) are used to determine the fair values of the mutual funds. Interest rate swap agreements The fair values of interest rate swap agreements are determined based on dealer quotes using a discounted cash flow model matched to the contractual terms of each instrument. Since inputs to the model are observable and significant judgment is not required in determining the fair values, interest rate swaps are classified within Level 2 of the fair value hierarchy. Forward foreign currency exchange contracts The fair values of forward foreign currency exchange contracts are also determined based on dealer quotes using a discounted cash flow model matched to the contractual terms of each instrument. Since inputs to the model are observable and significant judgment is not required in determining the fair values, forward foreign currency exchange contracts are classified within Level 2 of the fair value hierarchy. Long-term Debt The following table summarizes the fair and carrying value of the Company’s long-term debt, including the current portion at each of the balance sheet dates March 31, 2024 and 2023: Fiscal Year Ended March 31, (in millions of dollars) 2024 2023 Fair market value of long term obligations $ 618 $ 621 Carrying value of long term obligations $ 620 $ 620 The Company estimates the fair value of its long-term debt using Level 2 inputs which are based upon quoted market prices for the same or similar obligations or on calculations that are based on the current interest rates available to the Company for debt of similar terms and maturities. See Note 9 for more information regarding long-term debt. Nonrecurring Fair Value Measurements Assets and liabilities that are measured at fair value on a nonrecurring basis primarily relate to long-lived assets, right-of-use operating lease assets and liabilities, goodwill and intangibles, and other current and noncurrent assets. These assets and liabilities fair values are evaluated for impairment when potential indicators of impairment exist. Accordingly, the nonrecurring measurement of the fair value of these assets and liabilities are classified within Level 3 of the fair value hierarchy. Acquisition Accounting for Business Combinations The Company accounts for acquisitions qualifying under ASC 805, "Business Combinations," which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The fair values of consideration transferred and net assets acquired are determined using a combination of Level 2 and Level 3 inputs as specified in the fair value hierarchy in ASC 820, “Fair Value Measurements and Disclosures.” The Company believes that the fair values assigned to the assets acquired and liabilities assumed are based on reasonable assumptions. The significant assumptions used in determining the fair value include the discount rate and forecasted results (e.g., revenue growth rates and operating profit margins). Long-Lived Assets |
Pension And Other Postretiremen
Pension And Other Postretirement Benefit Plans | 12 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Pension And Other Postretirement Benefit Plans | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Defined Benefit Plans Description of Plans The Company sponsors several defined benefit pension plans covering salaried and certain hourly employees in the U.S., as well as certain foreign and other employee groups. These plans provide retirement benefits based primarily on employee compensation and years of service. Plan assets consist primarily of equity and fixed income investments. The Company also sponsors defined benefit plans that provide postretirement health and life insurance benefits for eligible U.S. employees and retirees who have attained specific age and service levels, although postretirement life insurance benefits were discontinued in fiscal year 2015 for all employees who were not already retired. The health benefits are funded by the Company as the costs of those benefits are incurred. The plan design includes cost-sharing features such as deductibles and coinsurance. The life insurance benefits are funded with deposits to a reserve account held by an insurance company. The Company has the right to amend or discontinue its pension and other postretirement benefit plans at any time. In the following disclosures, the term “accumulated benefit obligation” (“ABO”) represents the actuarial present value of estimated future benefit payments earned by participants in the Company's defined benefit pension plans as of the balance sheet date without regard to the estimated effect of future compensation increases on those benefits. The term does not apply to other postretirement benefits. “Projected benefit obligation” refers to the projected benefit obligation (“PBO”) for pension benefits and the accumulated postretirement benefit obligation (“APBO”) for other postretirement benefits. These amounts represent the actuarial present value of estimated future benefit payments earned by participants in the benefit plans as of the balance sheet date. For pension benefits, the PBO includes the estimated effect of future compensation increases on those benefits. Actuarial Assumptions Assumptions used for financial reporting purposes to compute net periodic benefit cost and benefit obligations for the Company's primary defined benefit plans were as follows: Pension Benefits Other Postretirement Benefits 2024 2023 2022 2024 2023 2022 Discount rates: Benefit cost for plan year 5.00 % 3.70 % 3.30 % 4.90 % 3.60 % 2.90 % Benefit obligation at end of plan year 5.27 % 5.00 % 3.70 % 5.17 % 4.90 % 3.60 % Expected long-term return on plan assets: Benefit cost for plan year 6.50 % 5.50 % 5.50 % 3.00 % 3.00 % 3.00 % Salary scale: Benefit cost for plan year 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % Benefit obligation at end of plan year 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % Healthcare cost trend rate N/A N/A N/A 6.97 % 6.97 % 6.17 % Changes in the discount rates in the above table reflect prevailing market interest rates at the end of each fiscal year when the benefit obligations are actuarially measured. The expected long-term return on plan assets is developed from financial models used to project future returns on the underlying assets of the funded plans and is reviewed on an annual basis. The healthcare cost trend rate used by the Company is based on a study of medical cost inflation rates that is reviewed and updated annually for continued applicability. The trend assumption of 6.97% in 2024 declines gradually to 4.44% in 2032. The Company has caps in place on postretirement medical benefits that limit its cost for a large segment of the retiree population. As a result, changes to the healthcare cost trend rate have a limited impact on the postretirement medical plan liability and expense. Benefit Obligations, Plan Assets, and Funded Status The following table reflects the changes in benefit obligations and plan assets in fiscal years 2024 and 2023, as well as the funded status of the plans at March 31, 2024 and 2023: Pension Other Postretirement Benefits March 31, March 31, 2024 2023 2024 2023 Actuarial present value of benefit obligation: Accumulated benefit obligation $ 231,685 $ 235,540 Projected benefit obligation 237,626 241,399 $ 20,077 $ 20,716 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 241,399 $ 277,050 $ 20,716 $ 24,957 Service cost 5,214 6,172 239 115 Interest cost 11,566 9,670 1,049 944 Effect of discount rate change (5,147) (31,621) (255) (1,906) Foreign currency exchange rate changes (298) (543) 30 (145) Other 2,197 (2,120) 589 (659) Benefit payments (17,305) (17,209) (2,291) (2,590) Projected benefit obligation, end of year $ 237,626 $ 241,399 $ 20,077 $ 20,716 Change in plan assets: Plan assets at fair value, beginning of year $ 221,953 $ 256,013 $ 2,257 $ 2,706 Actual return on plan assets 11,666 (20,613) 174 73 Employer contributions 4,257 4,038 1,794 2,068 Foreign currency exchange rate changes (235) (276) — — Benefit payments (17,305) (17,209) (2,291) (2,590) Plan assets at fair value, end of year $ 220,336 $ 221,953 $ 1,934 $ 2,257 Funded status: Funded status of the plans, end of year $ (17,290) $ (19,446) $ (18,143) $ (18,459) The Company funds its non-regulated U.S. pension plan, one of its foreign pension plans, and its postretirement medical plans on a pay-as-you-go basis as the benefit payments are incurred. The unfunded PBO for those pension plans and postretirement benefit plans was $27.9 million and $16.6 million, respectively, at March 31, 2024. The funded status of the Company’s plans at the end of fiscal years 2024 and 2023 was reported in the consolidated balance sheets as follows: Pension Other Postretirement Benefits March 31, March 31, 2024 2023 2024 2023 Noncurrent assets (included in Pension asset) $ 11,857 $ 9,984 $ — $ — Current liability (included in Accrued expenses and other current liabilities) (2,344) (3,352) (1,695) (1,768) Noncurrent liability (reported as Pensions and other postretirement benefits) (26,803) (26,078) (16,448) (16,691) Amounts recognized in the consolidated balance sheets $ (17,290) $ (19,446) $ (18,143) $ (18,459) Additional information on the funded status of the Company’s plans as of the respective measurement dates for the fiscal years ended March 31, 2024 and 2023, is as follows: Pension Other Postretirement Benefits March 31, March 31, 2024 2023 2024 2023 For plans with a projected benefit obligation in excess of plan assets: Aggregate projected benefit obligation (PBO) $ 36,842 $ 29,430 $ 20,078 $ 20,716 Aggregate fair value of plan assets — — 1,934 2,257 For plans with an accumulated benefit obligation in excess of plan assets: Aggregate accumulated benefit obligation (ABO) 35,640 28,487 N/A N/A Aggregate fair value of plan assets — — N/A N/A Net Periodic Benefit Cost The components of the Company’s net periodic benefit cost were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2024 2023 2022 2024 2023 2022 Components of net periodic benefit cost: Service cost $ 5,214 $ 6,172 $ 6,674 $ 239 $ 115 $ 170 Interest cost 11,566 9,670 8,754 1,049 944 950 Expected return on plan assets (15,504) (13,630) (13,562) (63) (76) (86) Net amortization and deferral 659 2,038 1,679 (791) (737) (422) Net periodic benefit cost $ 1,935 $ 4,250 $ 3,545 $ 434 $ 246 $ 612 A one-percentage-point increase or decrease in the assumed healthcare cost trend rate would not result in a significant change to the March 31, 2024 APBO or the aggregate service and interest cost components of the net periodic postretirement benefit expense for fiscal year 2025. Amounts Included in Accumulated Other Comprehensive Loss Amounts included in accumulated other comprehensive loss at the beginning of the year are amortized as a component of net periodic benefit cost during the year. The amounts recognized in other comprehensive income or loss for fiscal years 2024 and 2023 and the amounts included in accumulated other comprehensive loss at the end of those fiscal years are shown below. All amounts shown are before allocated income taxes. Pension Other Postretirement Benefits March 31, March 31, 2024 2023 2024 2023 Change in net actuarial loss (gain): Net actuarial loss (gain), beginning of year $ 64,114 $ 67,280 $ (8,332) $ (6,681) Losses (gains) arising during the year 107 (98) 377 (2,223) Amortization included in net periodic benefit cost during the year (793) (3,068) 786 572 Net actuarial loss (gain), end of year 63,428 64,114 (7,169) (8,332) Change in prior service cost (benefit): Prior service cost (benefit), beginning of year (457) (1,487) (36) (201) Prior service cost (benefit) arising during the year 692 — — — Amortization included in net periodic benefit cost during the year 134 1,030 5 165 Prior service cost (benefit), end of year 369 (457) (31) (36) Total amounts in accumulated other comprehensive loss at end of year, before income taxes $ 63,797 $ 63,657 $ (7,200) $ (8,368) Amounts in the above table reflect the Company and its consolidated subsidiaries. The accumulated other comprehensive loss reported in the consolidated balance sheets also includes pension and other postretirement benefit amounts related to ownership interests in unconsolidated affiliates. The Company expects to recognize approximately $0.2 million of the March 31, 2024 net actuarial loss and $0.1 million of the March 31, 2024 prior service benefit in net periodic benefit cost during fiscal year 2025. Allocation of Pension Plan Assets The Company has established, and periodically adjusts, target asset allocations for its investments in its U.S. ERISA-regulated defined benefit pension plan, which represents 97% of consolidated plan assets and 84% of consolidated PBO at March 31, 2024, to balance the needs of liquidity, total return, and risk control. The assets are required to be diversified across asset classes and investment styles to achieve that balance. During the year, the asset allocation is reviewed for adherence to the target policy and rebalanced to the targeted weights. The Company reviews the expected long-term returns of the asset allocation each year to help determine whether changes are needed. The return is evaluated on a weighted-average basis in relation to inflation. The assumed long-term rate of return used to calculate annual benefit expense is based on the asset allocation and expected market returns for the respective asset classes. The weighted–average target pension asset allocation and target ranges at the March 31, 2024 measurement date and the actual asset allocations at the March 31, 2024 and 2023 measurement dates by major asset category were as follows: Actual Allocation Target Allocation March 31, Major Asset Category Range 2024 2023 Equity securities 29.0 % 19 % - 39% 26.7 % 27.5 % Fixed income securities (1) 66.0 % 56 % - 76% 67.3 % 66.0 % Alternative investments 5.0 % 0 % - 10% 6.0 % 6.5 % Total 100.0 % 100.0 % 100.0 % (1) Actual amounts include high yield securities and cash balances held for the payment of benefits. Universal makes regular contributions to its pension and other postretirement benefit plans. As previously noted, for postretirement health benefits, contributions reflect funding of those benefits as they are incurred. The Company expects to make no contributions to its ERISA regulated defined benefit pension plan and $4.1 million to its non-ERISA regulated pension plans in fiscal year 2025. Estimated future benefit payments to be made from the Company’s plans are as follows: Pension Other Fiscal Year 2025 $ 17,126 $ 2,100 2026 18,141 1,929 2027 23,644 1,856 2028 19,017 1,774 2029 17,345 1,681 2030 - 2033 85,512 7,729 Fair Values of Pension Plan Assets Assets held by the Company's defined benefit pension plans primarily consist of equity securities, fixed income securities, and alternative investments. Equity securities are primarily invested in actively-traded mutual funds with underlying common stock investments in U.S. and foreign companies ranging in size from small to large corporations. Fixed income securities are also held primarily through actively-traded mutual funds with the underlying investments in both U.S. and foreign securities. The methodologies for determining the fair values of the plan assets are outlined below. Where the values are based on quoted prices for the securities in an active market, they are classified as Level 1 of the fair value hierarchy. Where secondary pricing sources are used, they are classified as Level 2 of the hierarchy. Pricing models that use significant unobservable inputs are classified as Level 3. • Equity securities: Investments in equity securities through actively-traded mutual funds are valued based on the NAVs of the units held in the respective funds, which are determined by obtaining quoted prices on nationally recognized securities exchanges. These securities are classified as Level 1. • Fixed income securities: Fixed income investments that are held through mutual funds are valued based on the NAVs of the units held in the respective funds, which are determined by obtaining quoted prices on nationally recognized securities exchanges. These securities are classified as Level 1. Other fixed income investments are valued at an estimated price that a dealer would pay for a similar security on the valuation date using observable market inputs and are classified as Level 2. These market inputs may include yield curves for similarly rated securities. Small amounts of cash are held in common collective trusts. Fixed income securities also include insurance assets, which are valued based on an actuarial calculation. Those securities are classified as Level 3. • Alternative investments: Real estate assets are valued using valuation models that incorporate income and market approaches, including external appraisals, to derive fair values. The hedge fund allocation is a fund of hedge funds and is valued by the manager based on the NAV of each fund. These models use significant unobservable inputs and are classified as Level 3 within the fair value hierarchy. Fair values of the assets of the Company’s pension plans as of March 31, 2024 and 2023, classified based on how their values were determined under the fair value hierarchy are as follows: March 31, 2024 Level 1 Level 2 Level 3 Total Equity securities $ 56,243 $ — $ — $ 56,243 Fixed income securities (1) 143,740 — 7,695 151,435 Alternative investments — — 12,658 12,658 Total investments $ 199,983 $ — $ 20,353 $ 220,336 March 31, 2023 Level 1 Level 2 Level 3 Total Equity securities $ 58,745 $ — $ — $ 58,745 Fixed income securities (1) 142,335 — 6,917 149,252 Alternative investments — — 13,956 13,956 Total investments $ 201,080 $ — $ 20,873 $ 221,953 (1) Includes high yield securities and cash and cash equivalent balances. Other Benefit Plans Universal and several subsidiaries offer employer defined contribution savings plans. Amounts charged to expense for these plans were approximately $4.3 million for fiscal year 2024, $3.4 million for fiscal year 2023, and $3.0 million for fiscal year 2022. |
Common And Preferred Stock
Common And Preferred Stock | 12 Months Ended |
Mar. 31, 2024 | |
Class of Stock Disclosures [Abstract] | |
Common And Preferred Stock | COMMON AND PREFERRED STOCK Common Stock At March 31, 2024, the Company’s shareholders had authorized 100,000,000 shares of its common stock, and 24,573,408 shares were issued and outstanding. Holders of the common stock are entitled to one vote for each share held on all matters requiring a vote. Holders of the common stock are also entitled to receive dividends when, as, and if declared by the Company’s Board of Directors. The Board of Directors customarily declares and pays regular quarterly dividends on the outstanding common shares; however, such dividends are at the Board’s full discretion, and there is no obligation to continue them. Preferred Stock The Company is also authorized to issue up to 5,000,000 shares of preferred stock. No preferred stock was outstanding at March 31, 2024. Share Repurchase Programs Universal’s Board of Directors has authorized programs to repurchase outstanding shares of the Company’s capital stock (common and preferred stock). Under these programs, the Company has made and may continue to make share repurchases from time to time in the open market or in privately negotiated transactions at prices not exceeding prevailing market rates. Programs have been in place continuously throughout fiscal years 2022 through 2024. The current program, which replaced an expiring program, was authorized and became effective on November 3, 2022. It authorizes the purchase of up to $100 million of the Company's outstanding common stock and expires on the earlier of November 15, 2024, or when the funds authorized for the program have been exhausted. At March 31, 2024, $95 million of the authorization remained available for share repurchases under the current program. Repurchases of common stock under the programs for fiscal years 2024, 2023, and 2022 were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Number of shares repurchased 100,000 66,124 58,264 Cost of shares repurchased (in thousands of dollars) $ 4,744 $ 3,448 $ 3,053 Weighted-average cost per share $ 47.44 $ 52.12 $ 52.41 |
Executive Stock Plans And Stock
Executive Stock Plans And Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Executive Stock Plans And Stock-Based Compensation | EXECUTIVE STOCK PLANS AND STOCK-BASED COMPENSATION Executive Stock Plans The Company’s shareholders have approved executive stock plans under which officers, directors, and employees of the Company may receive grants and awards of common stock, restricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”), stock appreciation rights (“SARs”), incentive stock options, and non-qualified stock options. Currently, grants are outstanding under the 1997 Executive Stock Plan, the 2002 Executive Stock Plan, the 2007 Stock Incentive Plan, the 2017 Stock Incentive Plan, and the 2023 Stock Incentive Plan. Together, these plans are referred to in this disclosure as the “Plans.” Up to 1,250,000 shares may be issued under the 2023 Stock Incentive Plan, with no specific share limit for any of the award types. New awards may no longer be issued under the 1997, 2002, 2007, and 2017 Plans. The Company’s practice is to award grants of stock-based compensation to officers at the first regularly-scheduled meeting of the Compensation Committee of the Board of Directors (the “Compensation Committee”) in the fiscal year following the public release of the Company’s financial results for the prior fiscal year. In recent years, the Compensation Committee has awarded only grants of RSUs and PSUs. Outside directors automatically receive restricted stock units following each annual meeting of shareholders. RSUs awarded prior to fiscal year 2022 vest 5 years after the grant date and those awarded after fiscal year 2022 vest 3 years after the grant date. After vesting RSUs are paid out in shares of common stock. Under the terms of the RSU awards, grantees receive dividend equivalents in the form of additional RSUs that vest and are paid out on the same vesting date as the original RSU grant. The PSUs vest 3 years from the grant date, are paid out in shares of common stock at the vesting date, and do not carry rights to dividends or dividend equivalents prior to vesting. Shares ultimately paid out under PSU grants are dependent on the achievement of predetermined performance measures established by the Compensation Committee and can range from zero to 150% of the stated award. RSUs awarded to outside directors vest 1 year after the grant date. Additionally, restricted stock vests upon the individual’s retirement from service as a director. RSUs, Restricted Stock, and PSUs The following table summarizes the Company’s RSU, restricted stock, and PSU activity for fiscal years 2022 through 2024: RSUs Restricted Stock PSUs Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Fiscal Year Ended March 31, 2022: Unvested at beginning of year 342,468 $ 55.44 11,600 $ 41.86 161,147 $ 46.20 Granted 93,564 56.18 — — 48,650 47.95 Vested (86,488) 54.33 — — (50,242) 57.12 Forfeited — — — — (1,555) 57.12 Unvested at end of year 349,544 55.86 11,600 41.86 158,000 43.16 Fiscal Year Ended March 31, 2023: Granted 100,105 60.89 — — 48,315 54.46 Vested (67,239) 62.39 — — (37,040) 50.16 Forfeited — — — — (9,260) 50.16 Unvested at end of year 382,410 56.03 11,600 41.86 160,015 44.55 Fiscal Year Ended March 31, 2024: Granted 117,103 51.90 — — 65,645 43.01 Vested (109,877) 61.75 — — (73,963) 34.45 Forfeited — — — — (467) 34.33 Unvested at end of year 389,636 $ 53.18 11,600 $ 41.86 151,230 $ 48.22 Shares granted and vested in the above table include dividend equivalents on RSUs and any shares awarded above the base grant under the performance provisions of PSUs. Shares forfeited or canceled include any reductions from the base PSU grant under those same performance provisions. The fair values of RSUs, restricted stock, and PSUs are based on the market price of the common stock on the grant date. Stock-Based Compensation Expense Fair value expense for stock-based compensation is recognized ratably over the period from grant date to the earlier of (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For employees who are already eligible to retire at the date an award is granted, the total fair value of the award is recognized as expense at the date of grant. For the fiscal years ended March 31, 2024, 2023, and 2022, total stock-based compensation expense and the related income tax benefit recognized were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Total stock-based compensation expense $ 12,063 $ 8,419 $ 6,186 Income tax benefit recorded on stock-based compensation expense $ 2,713 $ 1,899 $ 1,389 At March 31, 2024, the Company had $1.7 million of unrecognized compensation expense related to stock-based awards, which will be recognized over a weighted-average period of approximately 0.6 years. |
Commitments And Other Matters
Commitments And Other Matters | 12 Months Ended |
Mar. 31, 2024 | |
Commitments And Other Matters [Abstract] | |
Commitments And Other Matters | COMMITMENTS, CONTINGENCIES, AND OTHER MATTERS Commitments The Company enters into contracts to purchase tobacco from farmers in a number of the countries where it operates. Contracts in most countries cover one annual growing season. Primarily with the farmer contracts in Brazil, Malawi, Mozambique, the Philippines, Guatemala, and Mexico, the Company provides seasonal financing to support the farmers’ production of their crops. At March 31, 2024, the Company had contracts to purchase approximately $642 million of tobacco to be delivered during the coming fiscal year and $189 million of tobacco to be delivered in subsequent years. These amounts are estimates since actual quantities purchased will depend on crop yields, and prices will depend on the quality of the tobacco delivered and other market factors. Tobacco purchase obligations have been partially funded by short-term advances to farmers and other suppliers, which totaled approximately $139 million, net of allowances, at March 31, 2024. The Company withholds payments due to farmers on delivery of the tobacco to satisfy repayment of the financing it provided to the farmers. In addition to its contractual obligations to purchase tobacco, the Company had commitments related to agricultural materials, approved capital expenditures, and various other requirements that approximated $102 million at March 31, 2024. Other Contingent Liabilities Other Contingent Liabilities (Letters of credit) The Company had other contingent liabilities totaling approximately $0.5 million at March 31, 2024, primarily under outstanding letters of credit. Value-Added Tax Assessments in Brazil As discussed in Note 1, the Company's local operating subsidiaries pay significant amounts of VAT in connection with their normal operations. In Brazil, VAT is assessed at the state level when green tobacco is transferred between states. The Company's operating subsidiary there pays VAT when tobaccos grown in the states of Santa Catarina and Parana are transferred to its factory in the state of Rio Grande do Sul for processing. The subsidiary received assessments for additional VAT plus interest and penalties from the tax authorities for the states of Santa Catarina and Parana based on audits of the subsidiary's VAT filings for specified periods. In June 2011, tax authorities for the state of Santa Catarina issued assessments for tax, interest, and penalties for periods from 2006 through 2009 totaling approximately $14 million. In September 2014, tax authorities for the state of Santa Catarina issued a reduced assessment for tax, interest, and penalties for periods from 2009 through 2014. The subsidiary contested the assessment through a variety of judicial hearings. In March 2024, the subsidiary elected to participate in a voluntary state government sponsored program that significantly reduced the assessed penalties and interest. The subsidiary's participation in the program resulted in the matter being settled for $5 million and eliminates any further litigation regarding the matter. In September 2014, tax authorities for the state of Parana issued an assessment for tax, interest, and penalties for periods from 2009 through 2014 totaling approximately $11 million. These amounts are based on the exchange rate for the Brazilian currency at March 31, 2024. Management of the operating subsidiary and outside counsel believe that errors were made by the tax authorities for the state of Parana in determining all or significant portions of this assessment and that various defenses support the subsidiary's position. Management of the subsidiary and outside counsel challenged the full amount of the claim. A significant portion of the Parana assessment was based on positions taken by the tax authorities that management and outside counsel believe deviate significantly from the underlying statutes and relevant case law. In addition, under the law, the subsidiary's tax filings for certain periods covered in the assessment were no longer open to any challenge by the tax authorities. In December 2015, the Parana tax authorities withdrew the initial claim and subsequently issued a new assessment covering the same tax periods. The new assessment totaled approximately $3 million at the March 31, 2024 exchange rate, reflecting a substantial reduction from the original $11 million assessment. Notwithstanding the reduction, management and outside counsel continue to believe that the new assessment is not supported by the underlying statutes and relevant case law and have challenged the full amount of the claim. The range of reasonably possible loss is considered to be zero up to the full $3 million assessment. However, based on the strength of the subsidiary's defenses, no loss within that range is considered probable at this time and no liability has been recorded at March 31, 2024. The process for reaching a final resolution to the Parana assessment is expected to be lengthy, and management is not currently able to predict when the case will be concluded. Should the subsidiary ultimately be required to pay any tax, interest, or penalties, the portion paid for tax would generate VAT credits that the subsidiary may be able to recover. Other Legal and Tax Matters Various subsidiaries of the Company are involved in other litigation and tax examinations incidental to their business activities. While the outcome of these matters cannot be predicted with certainty, management is vigorously defending the matters and does not currently expect that any of them will have a material adverse effect on the Company’s business or financial position. However, should one or more of these matters be resolved in a manner adverse to management’s current expectation, the effect on the Company’s results of operations for a particular fiscal reporting period could be material. |
Operating Segments
Operating Segments | 12 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Operating Segments | OPERATING SEGMENTS Management regularly evaluates the Company’s global business activities, including product and service offerings to its customers, as well as senior management’s operational and financial responsibilities. Assessments include an analysis of how its chief operating decision maker measures business performance and allocates resources. As a result of this analysis, senior management has determined the Company conducts operations across two reportable operating segments, Tobacco Operations and Ingredients Operations. The Tobacco Operations segment activities involve contracting, procuring, processing, packing, storing, and shipping leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products throughout the world. Through various operating subsidiaries located in tobacco-growing countries around the world and significant ownership interests in unconsolidated affiliates, the Company processes and/or sells flue-cured and burley tobaccos, dark air-cured tobaccos, and oriental tobaccos. Flue-cured, burley, and oriental tobaccos are used principally in the manufacture of cigarettes, and dark air-cured tobaccos are used mainly in the manufacture of cigars, pipe tobacco, and smokeless tobacco products. Some of these tobacco types are also increasingly used in the manufacture of next generation tobacco products that are intended to provide consumers with an alternative to traditional combustible products. The Tobacco Operations segment also provides physical and chemical product testing for tobacco customers. A substantial portion of the Company’s Tobacco Operations' revenues are derived from sales to a limited number of large, multinational cigarette and cigar manufacturers. The Ingredients Operations segment provides its customers with a broad variety of plant-based ingredients for both human and pet consumption. The Ingredients Operations segment utilizes a variety of value-added manufacturing processes converting raw materials into a wide spectrum of fruit and vegetable juices, concentrates, dehydrated products, botanical extracts, and flavorings. Customers for the Ingredients Operations segment include large multinational food and beverage companies, smaller independent manufacturers, and retail organizations. FruitSmart, Silva, and Shank's are the primary operations for the Ingredients Operations segment. FruitSmart supplies a broad set of juices, concentrates, pomaces, purees, fruit fibers, seeds, seed powders, and other value-added products to food, beverage, and flavor companies throughout the United States and internationally. Silva procures dehydrated vegetables, fruits, and herbs from around the world and specializes in processing natural materials into custom designed dehydrated vegetable and fruit-based ingredients for a variety of end products. Shank's offers a diversified portfolio of botanical extracts, distillates, natural flavors, and color for industrial and private label customers worldwide, and is known for their significant vanilla expertise. Shank's is also equipped to offer customers custom bottling and packaging for their products. Universal incurs overhead expenses related to senior management, sales, finance, legal, and other functions that are centralized at its corporate headquarters, as well as functions performed at several sales and administrative offices around the world. These overhead expenses are currently allocated to the reportable operating segments, generally on the basis of projected annual financial and operational performance, including volumes planned to be purchased and/or processed. Management believes this method of allocation is currently representative of the value of the related services provided to the operating segments. The Company currently evaluates the performance of its segments based on operating income after allocated overhead expenses, plus equity in the pretax earnings of unconsolidated affiliates. Reportable segment data as of, or for, the fiscal years ended March 31, 2024, 2023, and 2022, is as follows: Sales and Other Operating Revenues Operating Income Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2024 2023 2022 2024 2023 2022 Tobacco Operations $ 2,438,775 $ 2,258,260 $ 1,835,790 $ 222,352 $ 172,889 $ 157,754 Ingredients Operations 309,798 311,564 267,811 3,936 10,566 16,581 Subtotal 2,748,573 2,569,824 2,103,601 226,288 183,455 174,335 Deduct: Equity in pretax earnings of unconsolidated affiliates (1) (756) (2,383) (6,095) Restructuring and impairment costs (2) (3,523) — (10,457) Add: Other income (3) — — 2,532 Consolidated total $ 2,748,573 $ 2,569,824 $ 2,103,601 $ 222,009 $ 181,072 $ 160,315 Segment Assets Accounts Receivable, net March 31, March 31, 2024 2023 2022 2024 2023 2022 Tobacco Operations $ 2,451,895 $ 2,164,600 $ 2,109,845 $ 472,357 $ 350,014 $ 336,638 Ingredients Operations 485,344 474,582 476,500 52,905 52,059 48,799 Consolidated total $ 2,937,239 $ 2,639,182 $ 2,586,345 $ 525,262 $ 402,073 $ 385,437 Goodwill, net Intangibles, net March 31, Fiscal Year Ended March 31, 2024 2023 2022 2024 2023 2022 Tobacco Operations $ 97,801 $ 97,854 $ 97,930 $ 62 $ 34 $ 57 Ingredients Operations 116,068 116,068 116,068 68,821 80,067 92,514 Consolidated total $ 213,869 $ 213,922 $ 213,998 $ 68,883 $ 80,101 $ 92,571 Capital Expenditures Depreciation and Amortization Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2024 2023 2022 2024 2023 2022 Tobacco Operations $ 35,173 $ 38,084 $ 34,237 $ 40,267 $ 38,650 $ 36,272 Ingredients Operations 30,840 16,590 18,966 18,059 18,650 16,249 Consolidated total $ 66,013 $ 54,674 $ 53,203 $ 58,326 $ 57,300 $ 52,521 (1) Equity in pretax earnings of unconsolidated affiliates is included in reportable segment operating income, but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. (2) Restructuring and impairment costs are excluded from reportable segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 4). (3) Other income represents the reversal of the contingent consideration liability associated with the acquisition of FruitSmart. Geographic data as of, or for, the fiscal years ended March 31, 2024, 2023, and 2022, is presented below. Sales and other operating revenues are attributed to individual countries based on the final destination of the shipment. Long-lived assets generally consist of net property, plant, and equipment, goodwill, and other intangibles. Geographic Data Sales and Other Operating Revenues Fiscal Year Ended March 31, 2024 2023 2022 Belgium $ 552,208 $ 395,616 $ 283,072 United States 547,923 530,467 495,322 China 219,979 204,139 97,826 Philippines 133,656 149,867 147,876 Indonesia 117,019 45,089 41,738 Poland 97,723 119,629 90,270 Germany 95,350 108,844 93,057 Netherlands 42,492 51,843 45,297 Mexico 26,438 51,847 29,514 France 16,669 64,563 39,307 All other countries 899,116 847,920 740,322 Consolidated total $ 2,748,573 $ 2,569,824 $ 2,103,601 Long-Lived Assets March 31, (in thousands) 2024 2023 2022 United States $ 355,905 $ 343,470 $ 344,276 Brazil 139,642 134,232 136,653 Mozambique 35,845 38,979 40,228 All other countries 117,240 128,504 130,530 Consolidated total $ 648,632 $ 645,185 $ 651,687 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Mar. 31, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in the balances for each component of accumulated other comprehensive income (loss) attributable to the Company for the fiscal years ended March 31, 2024, 2023, and 2022: Fiscal Year Ended March 31, 2024 2023 2022 Foreign currency translation: Balance at beginning of year $ (44,233) $ (40,965) $ (35,135) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on foreign currency translation (1,531) (3,166) (6,367) Less: Net loss on foreign currency translation attributable to noncontrolling interests 949 (102) 537 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes (582) (3,268) (5,830) Balance at end of year $ (44,815) $ (44,233) $ (40,965) Foreign currency hedge: Balance at beginning of year $ 4,899 $ 3,579 $ (414) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on derivative instruments (net of tax (expense) benefit of $17, $(1,160) and $(2,199)) (187) 2,562 6,679 Reclassification of net (gain) loss to earnings (net of tax expense (benefit) of $1,718, $389, and $1,115) (1) (5,328) (1,242) (2,686) Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes (5,515) 1,320 3,993 Balance at end of year $ (616) $ 4,899 $ 3,579 Interest rate hedge: Balance at beginning of year $ 5,253 $ (860) $ (19,480) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on derivative instruments (net of tax (expense) benefit of $(4,035), $(2,583), and $(3,249)) 11,340 7,220 12,402 Reclassification of net (gain) loss to earnings (net of tax expense (benefit) of $2,884, $396, and $(1,628)) (2) (8,105) (1,107) 6,218 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes 3,235 6,113 18,620 Balance at end of year $ 8,488 $ 5,253 $ (860) Pension and other postretirement benefit plans: Balance at beginning of year $ (42,976) $ (46,065) $ (52,008) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) arising during the year (net of tax (expense) benefit of $149, $(370), and $(297) (3) (430) 1,947 2,799 Amortization included in earnings (net of tax benefit of $339, $223, and $298) (4) (1,236) 1,142 3,144 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes (1,666) 3,089 5,943 Balance at end of year $ (44,642) $ (42,976) $ (46,065) Total accumulated other comprehensive income (loss) at end of year $ (81,585) $ (77,057) $ (84,311) (1) Gains (losses) on foreign currency cash flow hedges related to forecast purchases of tobacco and crop input sales are reclassified from accumulated other comprehensive income (loss) to cost of goods sold when the tobacco is sold to customers. See Note 11 for additional information. (2) Gain (loss) on interest rate cash flow hedges is reclassified from accumulated other comprehensive income (loss) to interest expense when the related interest payments are made on the debt for open interest rate swap agreements or as amortized to interest expense over the period to original maturity for terminated swap agreements. See Note 11 for additional information. (3) These items arise from the remeasurement of the assets and liabilities of the Company's defined benefit pension and other postretirement benefit plans. Those remeasurements are made on an annual basis at the end of the fiscal year. See Note 13 for additional information. (4) This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost. See Note 13 for additional information. |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended |
Mar. 31, 2024 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts Universal Corporation Fiscal Years Ended March 31, 2024, 2023, and 2022 Description Balance at Net Additions Deductions (1) Balance (in thousands of dollars) Fiscal Year Ended March 31, 2022: Allowance for doubtful accounts (deducted from accounts receivable) $ 1,252 $ 1,004 $ — $ (468) $ 1,788 Allowance for supplier accounts (deducted from advances to suppliers and other noncurrent assets) 17,817 5,988 — (4,833) 18,972 Allowance for recoverable taxes (deducted from other current assets and other noncurrent assets) 19,169 895 — 1,271 21,335 Fiscal Year Ended March 31, 2023: Allowance for doubtful accounts (deducted from accounts receivable) $ 1,788 $ 221 $ — $ (397) $ 1,612 Allowance for supplier accounts (deducted from advances to suppliers and other noncurrent assets) 18,972 10,584 — (5,169) 24,387 Allowance for recoverable taxes (deducted from other current assets and other noncurrent assets) 21,335 376 — (75) 21,636 Fiscal Year Ended March 31, 2024: Allowance for doubtful accounts (deducted from accounts receivable) $ 1,612 $ 1,608 $ — $ (484) $ 2,736 Allowance for supplier accounts (deducted from advances to suppliers and other noncurrent assets) 24,387 14,090 — (18,834) 19,643 Allowance for recoverable taxes (deducted from other current assets and other noncurrent assets) 21,636 (276) — 15 21,375 (1) Includes direct write-offs of assets and currency remeasurement. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) Attributable to Parent | $ 119,598 | $ 124,052 | $ 86,577 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature Of Operations And Sign_2
Nature Of Operations And Significant Accounting Policies Nature of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Nature Of Operations [Policy Text Block] | Nature of Operations |
Consolidation, Policy [Policy Text Block] | Consolidation The consolidated financial statements include the accounts of Universal Corporation and all domestic and foreign subsidiaries in which the Company maintains a controlling financial interest. Control is generally determined based on a voting interest of greater than 50%, such that Universal controls all significant corporate activities of the subsidiary. All significant intercompany accounts and transactions are eliminated in consolidation. The equity method of accounting is used for investments in companies where Universal Corporation has a voting interest of 20% to 50%. These investments are accounted for under the equity method because Universal exercises significant influence over those companies, but not control. The Company received no dividends in fiscal year 2024, $5.6 million in fiscal year 2023, and $4.3 million in fiscal year 2022, from companies accounted for under the equity method. Investments where Universal has a voting interest of less than 20% are not significant and do not have readily determinable fair values. As such, the Company has elected the alternate method of measuring these investments at cost, less any impairment. The Company's 49% ownership interest in Socotab L.L.C. (“Socotab”), a leading supplier of oriental tobaccos with operations located principally in Eastern Europe and Turkey, is the primary investment accounted for under the equity method. The investment in Socotab is an important part of the Company's overall product and service arrangements with its major customers. The Company reviews the carrying value of its investments in Socotab and its other unconsolidated affiliates on a regular basis and considers whether any factors exist that might indicate an impairment in value that is other than temporary. The Company's operations in Zimbabwe are deconsolidated under accounting requirements that apply under certain conditions to foreign subsidiaries that are subject to foreign exchange controls and other government restrictions. The investment in the Zimbabwe operations is accounted for at cost and was zero at March 31, 2024 and 2023. The Company has a net foreign currency translation loss associated with the Zimbabwe operations of approximately $7.2 million, which remains a component of accumulated other comprehensive loss at March 31, 2024. As a regular part of its reporting, the Company reviews the conditions that resulted in the deconsolidation of the Zimbabwe operations to confirm that such accounting treatment is still appropriate. Dividends from the Zimbabwe operations are recorded in income in the period received. The Company holds less than a 100% financial interest in certain consolidated subsidiaries. The net income and shareholders’ equity attributable to the noncontrolling interests in these subsidiaries are reported on the face of the consolidated financial statements. There were no material changes in the Company’s ownership percentage in any of these subsidiaries during fiscal years 2024, 2023, or 2022. |
Investment, Policy [Policy Text Block] | Investments in Unconsolidated Affiliates The Company’s investments in its unconsolidated affiliates, which include its Zimbabwe operations, are non-marketable securities. Universal reviews such investments for impairment whenever events or changes in circumstances indicate that the carrying amount of an investment may not be recovered. For example, the Company would review such an investment for impairment if the investee were to lose a significant customer, suffer a large reduction in sales margins, experience a major change in its business environment, or undergo any other significant change in its normal business. In assessing the recoverability of these investments, the Company follows the applicable accounting guidance in determining the fair value of the investments. In most cases, this involves the use of undiscounted and discounted cash flow models (Level 3 of the fair value hierarchy under the accounting guidance). If the fair value of an unconsolidated investee is determined to be lower than its carrying value, an impairment loss is recognized. The determination of fair value using discounted cash flow models is normally not based on observable market data from independent sources and therefore requires significant management judgment with respect to estimates of future operating earnings and the selection of an appropriate discount rate. The use of different assumptions could increase or decrease estimated future operating cash flows, and the discounted value of those cash flows, and therefore could increase or decrease any impairment charge related to these investments. During the fiscal year ended March 31, 2022, the Company recognized an immaterial impairment of an investment in an equity method investee in Africa. In its consolidated statements of income, the Company reports its proportional share of the earnings of unconsolidated affiliates accounted for on the equity method based on the pretax earnings of those affiliates, as permitted under the applicable accounting guidance. All applicable foreign and U.S. income taxes are provided on these earnings and reported as a component of consolidated income tax expense. For unconsolidated affiliates located in foreign jurisdictions, repatriation of the Company’s share of the earnings through dividends is assumed in determining consolidated income tax expense. The following table provides a reconciliation of (1) equity in the pretax earnings of unconsolidated affiliates, as reported in the consolidated statements of income to (2) equity in the net income of unconsolidated affiliates, net of dividends, as reported in the consolidated statements of cash flows for the fiscal years ended March 31, 2024, 2023, and 2022: Fiscal Year Ended March 31, 2024 2023 2022 Equity in pretax earnings reported in the consolidated statements of income $ 756 $ 2,383 $ 6,095 Less: Equity in income taxes 483 (781) (1,481) Equity in net income 1,239 1,602 4,614 Less: Dividends received on investments (1) — (5,612) (4,285) Equity in net income, net of dividends, reported in the consolidated statements of cash flows $ 1,239 $ (4,010) $ 329 (1) In accordance with the applicable accounting guidance, dividends received from unconsolidated affiliates accounted for on the equity method that represent a return on capital (i.e., a return of earnings on a cumulative basis) are presented as operating cash flows in the consolidated statements of cash flows. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share The Company calculates basic earnings per share based on Net income attributable to Universal Corporation. The calculation uses the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed in a similar manner using the weighted average number of common shares and dilutive potential common shares outstanding. Dilutive potential common shares include unvested restricted stock units and performance share units that are assumed to be fully vested and paid out in shares of common stock. Calculations of earnings per share for the fiscal years ended March 31, 2024, 2023, and 2022, are provided in Note 5. |
Cash and Cash Equivalents [Policy Text Block] | Cash, Restricted Cash, and Cash Equivalents All highly liquid investments with a maturity of three months or less at the time of purchase are classified as cash equivalents. Restricted cash was associated with the acquisition of Silva International, Inc. ("Silva") and was recognized as a component of other noncurrent assets at March 31, 2022. The restricted cash associated with the Silva acquisition was released to the selling shareholder during the fiscal year ended March 31, 2023. See Note 2 for more information about the release of restricted cash. |
Advances to Suppliers [Policy Text Block] | In many sourcing origins where the Company operates, it provides agronomy services and seasonal advances of seed, fertilizer, and other supplies to tobacco farmers for crop production, or makes seasonal cash advances to farmers for the procurement of those inputs. These advances are typically short term, are repaid upon delivery of tobacco to the Company, and are reported in advances to suppliers in the consolidated balance sheets. In several origins, the Company has made long-term advances to tobacco farmers to finance curing barns and other farm infrastructure. In some years, due to low crop yields and other factors, individual farmers may not deliver sufficient volumes of tobacco to fully repay their seasonal advances, and the Company may extend repayment of those advances into future crop years. The long-term portion of advances is included in other noncurrent assets in the consolidated balance sheets. Both the current and the long-term portions of advances to tobacco suppliers are reported net of allowances recorded when the Company determines that amounts outstanding are not likely to be collected. Short-term and long-term advances to tobacco suppliers totaled approximately $162 million at March 31, 2024 and $199 million at March 31, 2023. The related valuation allowances totaled $20 million at March 31, 2024, and $24 million at March 31, 2023, and were estimated based on the Company’s historical loss information and crop projections. The allowances were increased by net provisions for estimated uncollectible amounts of approximately $14.1 million in fiscal year 2024, $10.6 million in fiscal year 2023, and $6.0 million in fiscal year 2022. These net provisions are included in selling, general, and administrative expenses in the consolidated statements of income. Interest on advances is recognized in earnings upon the farmers’ delivery of tobacco in payment of principal and interest. Advances on which interest accruals had been discontinued totaled approximately $2 million and $3 million at March 31, 2024 and 2023, respectively. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of cost or net realizable value. Raw materials primarily consist of unprocessed leaf tobacco, which is clearly identified by type and grade at the time of purchase. The Company tracks the costs associated with this tobacco in the final product lots, and maintains this identification through the time of sale. This method of cost accounting is referred to as the specific cost or specific identification method. The predominant cost component of the Company’s inventories is the cost of the unprocessed tobacco. Direct and indirect processing costs related to these raw materials are capitalized and allocated to inventory in a systematic manner. The Company does not capitalize any interest or sales-related costs in inventory. In-bound freight costs are recorded in cost of goods sold. Other inventories consist primarily of unprocessed and processed food and vegetable ingredients, botanical extracts, seed, fertilizer, packing materials, and other supplies, and are valued using the specific cost method. |
Recoverable Value-Added Tax Credits [Policy Text Block] | Recoverable Value-Added Tax Credits In many foreign countries, the Company’s local operating subsidiaries pay significant amounts of value-added tax (“VAT”) on purchases of unprocessed and processed tobacco, crop inputs, packing materials, and various other goods and services. In some countries, VAT is a national tax, and in other countries it is assessed at the state level. Items subject to VAT vary from jurisdiction to jurisdiction, as do the rates at which the tax is assessed. When tobacco is sold to customers in the country of origin, the operating subsidiaries generally collect VAT on those sales. The subsidiaries are normally permitted to offset their VAT payments against the collections and remit only the incremental VAT collections to the tax authorities. When tobacco is sold for export, VAT is normally not assessed. In countries where tobacco sales are predominantly for export markets, VAT collections generated on downstream sales are often not sufficient to fully offset the subsidiaries’ VAT payments. In those situations, unused VAT credits can accumulate. Some jurisdictions have procedures that allow companies to apply for refunds of unused VAT credits from the tax authorities, but the refund process often takes an extended period of time, and it is not uncommon for refund applications to be challenged or rejected in part on technical grounds. Other jurisdictions may permit companies to sell or transfer unused VAT credits to third parties in private transactions, although approval for such transactions must normally be obtained from the tax authorities, limits on the amounts that can be transferred may be imposed, and the proceeds realized may be heavily discounted from the face value of the credits. Due to these factors, local operating subsidiaries in some countries can accumulate significant balances of VAT credits over time. The Company reviews these balances on a regular basis and records valuation allowances on the credits to reflect amounts that are not expected to be recovered, as well as discounts anticipated on credits that are expected to be sold or transferred. At March 31, 2024 and 2023, the aggregate balances of recoverable tax credits held by the Company’s subsidiaries totaled approximately $72 million and $64 million, respectively, and the related valuation allowances totaled approximately $21 million and $22 million, respectively. The net balances are reported in other current assets and other noncurrent assets in the consolidated balance sheets. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Depreciation of property, plant and equipment is based upon historical cost and the estimated useful lives of the assets. Depreciation is calculated primarily using the straight-line method. Buildings include processing and blending facilities, offices, and warehouses. Machinery and equipment consists of processing and packing machinery and transport, office, and computer equipment. Estimated useful lives range as follows: buildings - 15 to 40 years; processing and packing machinery - 3 to 11 years; transport equipment - 3 to 10 years; and office and computer equipment - 3 to 12 years. Where applicable and material in amount, the Company capitalizes related interest costs during periods that property, plant and equipment are being constructed or made ready for service. No interest was capitalized in fiscal years 2024, 2023, or 2022. |
Lessee, Leases [Policy Text Block] | Leases The Company determines if an arrangement meets the definition of a lease at inception. The Company, as a lessee, enters into operating leases for land, buildings, equipment, and vehicles. For all operating leases with terms greater than 12 months and with fixed payment arrangements, a lease liability and corresponding right-of-use asset are recognized in the balance sheet for the term of the lease by calculating the net present value of future lease payments. On the date of lease commencement, the present value of lease liabilities is determined by discounting the future lease payments by the Company’s collateralized incremental borrowing rate, adjusted for the lease term and currency of the lease payments. If a lease contains a renewal option that the Company is reasonably certain to exercise, the Company accounts for the original lease term and expected renewal term in the calculation of the lease liability and right-of-use asset. Certain of the Company’s leases include both lease and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component, as the Company has elected the practical expedient to group lease and non-lease components for real estate leases. Additional disclosures related to the Company's leases are provided in Note 10. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangibles Goodwill and other intangibles are disclosed in Note 7. Goodwill principally consists of the excess of the purchase price of acquired companies over the fair value of the net assets. Goodwill is carried at the lower of cost or fair value and is reviewed for potential impairment on an annual basis as of the end of the fiscal year. Reporting units are distinct operating subsidiaries or groups of subsidiaries that typically compose the Company’s business in a specific country or location. Goodwill is allocated to reporting units based on the country or location to which a specific acquisition relates, or by allocation based on expected future cash flows if the acquisition relates to more than one country or location. The majority of the Company’s goodwill relates to its reporting unit in Brazil and reporting units in the Ingredients operating segment. See Notes 2 and 7 for additional information. Significant adverse changes in the operations or estimated future cash flows for a reporting unit with recorded goodwill could result in an impairment charge. Accounting Standards Codification Topic 350 ("ASC 350") permits companies to base initial assessments of potential goodwill impairment on qualitative factors, but also allows companies to bypass the qualitative assessment and perform a quantitative assessment. The Company elected to bypass the qualitative assessment and perform a quantitative assessment of goodwill impairment at March 31, 2024. The quantitative goodwill assessment consists of comparing the fair value of each reporting unit to the carrying value of that reporting unit. In the event that the carrying value of the reporting unit exceeds its fair value, an impairment of the reporting unit's goodwill is recognized, up to the amount of goodwill allocated to that reporting unit. Fair value was assessed using a discounted cash flow model, comprised of estimates of future cash flows and discount rates. Based on this quantitative assessment, the Company determined there was no impairment of goodwill for any of its reporting units as of March 31, 2024. The Company elected to use the qualitative approach at March 31, 2023. The qualitative assessment did not indicate that it was more likely than not that the fair value of any of the reporting units was less than their respective carrying value, therefore no potential impairment of the Company's recorded goodwill was noted as of that date. Other intangibles principally consists of finite lived intangible assets including customer-related intangibles, trade names, developed technology, and noncompetition agreements. Intangible assets acquired in a business combination are recorded at fair value using a discounted cash flow approach. A discounted cash flow approach to value intangible assets requires assumptions about the timing, amount, and probability of future net cash flows, as well as the discount rate and market participant considerations. Other intangibles are amortized on a straight-line basis over the intangible asset's economic life. |
Impairment or Disposal of Long-Lived Intangible Assets, Impairment, Policy [Policy Text Block] | Impairment of Long-Lived Assets |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company provides deferred income taxes on temporary differences between the book and tax basis of its assets and liabilities. Those differences arise principally from employee benefit accruals, depreciation, deferred compensation, undistributed earnings of unconsolidated affiliates, undistributed earnings of foreign subsidiaries, goodwill, intangibles, and valuation allowances on farmer advances and VAT credits. Income taxes provided on pretax amounts recorded in accumulated other comprehensive income (loss) are released when the related pretax amounts are reclassified to earnings. Additional disclosures related to the Company's income taxes are disclosed in Note 6. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Values of Financial Instruments The fair value of the Company’s long-term debt, disclosed in Note 12, approximates the carrying amount since the variable interest rates in the underlying credit agreement reflect the market interest rates that were available to the Company at March 31, 2024. In periods when fixed-rate obligations are outstanding, fair values are estimated using market prices where they are available or discounted cash flow models based on current incremental borrowing rates for similar classes of borrowers and borrowing arrangements. The fair values of interest rate swap agreements designated as cash flow hedges and used to fix the variable benchmark rate on outstanding long-term debt are determined separately and recorded in other long-term liabilities. Except for interest rate swaps and forward foreign currency exchange contracts that are discussed below, the fair values of all other assets and liabilities that qualify as financial instruments approximate their carrying amounts. |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments The Company recognizes all derivatives on the balance sheet at fair value. Interest rate swaps and forward foreign currency exchange contracts are used from time to time to manage interest rate risk and foreign currency risk. The Company enters into such contracts only with counterparties of good standing. The credit exposure related to non-performance by the counterparties and the Company is considered in determining the fair values of the derivatives, and the effect has not been material to the financial statements or operations of the Company. Additional disclosures related to the Company’s derivatives and hedging activities are provided in Note 11. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Translation and Remeasurement of Foreign Currencies The financial statements of foreign subsidiaries having the local currency as the functional currency are translated into U.S. dollars using exchange rates in effect at period end for assets and liabilities and average exchange rates applicable to each reporting period for results of operations. Adjustments resulting from translation of financial statements are reflected as a separate component of other comprehensive income or loss. The financial statements of foreign subsidiaries having the U.S. dollar as the functional currency, with certain transactions denominated in a local currency, are remeasured into U.S. dollars. The remeasurement of local currency amounts into U.S. dollars creates remeasurement gains and losses that are included in earnings as a component of selling, general, and administrative expenses. The Company recognized net remeasurement losses of $5.1 million and $19.0 million in fiscal years 2024 and 2022, respectively, and net remeasurement gains of $3.9 million in fiscal year 2023. Foreign currency transactions and forward foreign currency exchange contracts that are not designated as hedges generate gains and losses when they are settled or when they are marked-to-market under the prescribed accounting guidance. These transaction gains and losses are also included in earnings as a component of selling, general, and administrative expenses. The Company recognized net foreign currency transaction losses of $3.2 million and $8.8 million in fiscal years 2024 and 2023, respectively, and net foreign currency transaction gains of $18.0 million in fiscal year 2022 . |
Customer Advances and Deposits Policy [Policy Text Block] | Customer Advances and Deposits |
Revenue [Policy Text Block] | Revenue Recognition Revenue is recognized when the Company completes its performance obligation for the transfer of products and services under its contractual arrangements with customers. For sales of tobacco, satisfaction of the performance obligation and recognition of the corresponding revenue is based on the transfer of the ownership and control of the product to the customer. A large percentage of the Company’s sales are to major multinational manufacturers of consumer tobacco products. The Company works closely with those customers to understand and plan for their requirements for volumes, styles, and grades of leaf tobacco from its various growing regions, and extensive coordination is maintained on an ongoing basis to determine and satisfy their requirements for transfer of ownership and physical shipment of processed tobacco. The customers typically specify, in sales contracts and in shipping documents, the precise terms for transfer of title and risk of loss for the tobacco. Customer returns and rejections are not significant, and the Company’s sales history indicates that customer-specific acceptance provisions are consistently met upon transfer of title and risk of loss. While most of the Company’s revenue is derived from tobacco that is purchased from farmers, processed and packed in its factories, and then sold to customers, some revenue is earned from processing tobacco owned by customers and from other value-added services. The arrangements for processing services usually exist in specific markets where the customers contract directly with farmers for leaf production, and they have accounted for less than 5% of total revenue on an annual basis through the fiscal year ended March 31, 2024. Processing and packing of leaf tobacco is a short-duration process. Under normal operating conditions, raw tobacco that is placed into the production line exits as processed and packed tobacco within one hour, and is then later transported to customer-designated storage facilities. The revenue for these services is recognized when the performance obligation is met upon the completion of processing, and the Company's operating history indicates that customer requirements for processed tobacco are consistently met upon completion of processing. The Company has diversified its operations through acquisition of established companies that offer customers a wide range of both liquid and dehydrated fruit and vegetable ingredient products, as well as botanical extracts and flavors. These operations procure raw materials from domestic and international growers and suppliers and through a variety of processing steps (including sorting, cleaning, pressing, mixing, extracting, and blending), manufacture finished goods utilized in both human and pet food. The contracts for food ingredients with customers create a performance obligation to transfer the manufactured finished goods to the customer. Transaction prices for the sale of food ingredients are primarily based on negotiated fixed prices. At the point in time that the customer obtains control over the finished product, which is typically aligned with physical shipment under the contractual terms with the customer, the Company completes its performance obligation and recognizes the revenue for the sale. Additional disclosures related to the Company's revenue from contracts with customers are provided in Note 3. |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation Share-based payments, such as grants of restricted stock units, performance share units, restricted stock, stock appreciation rights, and stock options, are measured at fair value and reported as expense in the financial statements over the requisite service or performance periods. Additional disclosures related to stock-based compensation are included in Note 15. |
Use of Estimates, Policy [Policy Text Block] | Estimates and Assumptions |
Accounting Pronouncements [Policy Text Block] | Accounting Pronouncements Pronouncements Adopted in Fiscal Year 2022 The Company adopted FASB issued Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes” (“ASU 2019-12”) effective April 1, 2021. ASU 2019-12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The updated guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. There was no material impact to the consolidated financial statements from the adoption of ASU 2019-12. Pronouncements Adopted in Fiscal Year 2023 In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions related to contract modifications and hedge accounting to address the transitions from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance permits an entity to consider contract modification due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. ASU 2020-04 also temporarily allows hedge relationships to continue without de-designation upon changes due to reference rate reform. The Company adopted the new standard effective December 31, 2022. There was no material impact to the consolidated financial statements from the adoption of ASU 2020-04. Accounting Pronouncements to be Adopted in Future Years In November 2023, the FASB issued Accounting Standards Update No. 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 requires additional disclosures about profitability measures utilized by the chief operating decision maker and significant segment expenses. ASU 2023-07 also requires all annual disclosures regarding profit or loss and assets to be included in interim disclosures. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and for interim periods in fiscal years beginning after December 15, 2024, although early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its operating segments disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 requires additional disclosures reconciling the rates of different categories of income tax (i.e. federal , state, foreign, etc.) and a disaggregation of taxes paid and refunded. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and for interim periods in fiscal years beginning after December 15, 2025, although early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its income tax disclosures. |
Reclassifications [Policy Text Block] | Reclassifications |
Nature Of Operations And Sign_3
Nature Of Operations And Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Reconciliation Of Equity In Unconsolidated Affiliates | The following table provides a reconciliation of (1) equity in the pretax earnings of unconsolidated affiliates, as reported in the consolidated statements of income to (2) equity in the net income of unconsolidated affiliates, net of dividends, as reported in the consolidated statements of cash flows for the fiscal years ended March 31, 2024, 2023, and 2022: Fiscal Year Ended March 31, 2024 2023 2022 Equity in pretax earnings reported in the consolidated statements of income $ 756 $ 2,383 $ 6,095 Less: Equity in income taxes 483 (781) (1,481) Equity in net income 1,239 1,602 4,614 Less: Dividends received on investments (1) — (5,612) (4,285) Equity in net income, net of dividends, reported in the consolidated statements of cash flows $ 1,239 $ (4,010) $ 329 (1) In accordance with the applicable accounting guidance, dividends received from unconsolidated affiliates accounted for on the equity method that represent a return on capital (i.e., a return of earnings on a cumulative basis) are presented as operating cash flows in the consolidated statements of cash flows. |
Business Combinations Business
Business Combinations Business Combinations (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the final purchase price allocations of the assets acquired and liabilities assumed for the Shank's acquisition. Shank's Assets October 4, 2021 Cash and cash equivalents $ 754 Accounts receivable, net 6,643 Inventory 15,792 Other current assets 415 Property, plant and equipment 11,000 Operating lease right-of-use assets 8,531 Intangibles Customer relationships 24,000 Developed technology 4,500 Non-compete agreements 3,000 Goodwill 41,061 Total assets acquired 115,696 Liabilities Accounts payable and accrued expenses 6,159 Customer advances and deposits 351 Accrued compensation 655 Current portion operating lease liabilities 8,531 Total liabilities assumed 15,696 Total assets acquired and liabilities assumed $ 100,000 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Revenue from Contract with Customer (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Company’s revenue by significant revenue-generating category: Fiscal Year Ended March 31, 2024 2023 2022 Tobacco sales $ 2,268,600 $ 2,093,493 $ 1,703,330 Ingredient sales 292,291 294,302 250,595 Processing revenue 82,976 78,357 77,048 Other sales and revenue from contracts with customers 77,777 83,666 60,177 Total revenue from contracts with customers 2,721,644 2,549,818 2,091,150 Other operating sales and revenues 26,929 20,006 12,451 Consolidated sales and other operating revenues $ 2,748,573 $ 2,569,824 $ 2,103,601 Other operating sales and revenues consists principally of interest on advances to tobacco suppliers and dividend income from unconsolidated affiliates. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Restructuring Costs [Abstract] | |
Cumulative Restructuring Costs | A summary of the restructuring and impairment costs incurred during the fiscal years ended March 31, 2024, 2023, and 2022 is as follows: Fiscal Years Ended March 31, 2024 2023 2022 Restructuring Costs: Employee termination benefits $ 1,615 $ — $ 2,174 Other restructuring costs (181) — (24) 1,434 — 2,150 Impairment Costs: Property, plant, and equipment and other noncurrent assets 2,089 — 8,307 Total restructuring and impairment costs $ 3,523 $ — $ 10,457 |
Reconciliation Of Company's Liability For The Restructuring Costs | A reconciliation of the Company’s liability for employee termination benefits and other restructuring costs for fiscal years 2022 through 2024 is as follows: Employee Other Costs Total Balance at April 1, 2021 $ 1,370 $ 613 $ 1,983 Fiscal Year 2022 Activity: Costs charged to expense 2,174 (24) 2,150 Payments and write-offs (3,544) (589) (4,133) Balance at March 31, 2022 — — — Fiscal Year 2023 Activity: Costs charged to expense — — — Payments and write-offs — — — Balance at March 31, 2023 — — — Fiscal Year 2024 Activity: Costs charged to expense 1,615 (181) 1,434 Payments and write-offs (1,362) 181 (1,181) Balance at March 31, 2024 $ 253 $ — $ 253 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings per share: Fiscal Year Ended March 31, (in thousands, except share and per share data) 2024 2023 2022 Basic Earnings Per Share Numerator for basic earnings per share Net income attributable to Universal Corporation $ 119,598 $ 124,052 $ 86,577 Denominator for basic earnings per share Weighted average shares outstanding 24,851,858 24,773,710 24,764,177 Basic earnings per share $ 4.81 $ 5.01 $ 3.50 Diluted Earnings Per Share Numerator for diluted earnings per share Net income attributable to Universal Corporation $ 119,598 $ 124,052 $ 86,577 Denominator for diluted earnings per share: Weighted average shares outstanding 24,851,858 24,773,710 24,764,177 Effect of dilutive securities Employee and outside director share-based awards 189,056 170,131 158,719 Denominator for diluted earnings per share 25,040,914 24,943,841 24,922,896 Diluted earnings per share $ 4.78 $ 4.97 $ 3.47 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Components of Income Tax Expense | Income taxes for the fiscal years ended March 31, 2024, 2023, and 2022 consisted of the following: Fiscal Year Ended March 31, 2024 2023 2022 Current United States $ 5,107 $ 9,967 $ 15,042 State and local 696 1,134 265 Foreign 30,711 8,289 25,828 36,514 19,390 41,135 Deferred United States (824) (4,727) (498) State and local (138) 613 1,568 Foreign (4,443) (3,543) (3,542) (5,405) (7,657) (2,472) Total $ 31,109 $ 11,733 $ 38,663 |
Schedule Of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows: Fiscal Year Ended March 31, 2024 2023 2022 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 0.3 1.0 1.0 Foreign earnings taxed at rates other than the U.S. federal statutory tax rate (5.2) (1.5) 3.7 Foreign dividend withholding taxes 2.9 2.6 2.3 Brazil tax ruling — (17.1) — Changes in uncertain tax positions (0.2) (0.1) (0.3) Other 0.2 2.4 (0.5) Effective income tax rate 19.0 % 8.3 % 27.2 % |
Schedule Of U.S. And Foreign Components Of Income Before Income Taxes And Other Items | The U.S. and foreign components of income before income taxes were as follows: Fiscal Year Ended March 31, 2024 2023 2022 United States $ 22,517 $ 27,942 $ 74,553 Foreign 141,563 114,027 67,714 Total $ 164,080 $ 141,969 $ 142,267 |
Schedule Of Deferred Tax Assets and Liabilities | Significant components of deferred tax liabilities and assets were as follows: March 31, 2024 2023 Liabilities Foreign withholding taxes $ 15,350 $ 17,123 Property, plant and equipment 10,604 10,617 Undistributed earnings 3,145 3,772 Operating lease right-of-use assets 8,119 5,791 Goodwill and other intangible assets 32,232 33,781 Interest rate swap 3,036 1,885 All other 1,168 2,786 Total deferred tax liabilities $ 73,654 $ 75,755 Assets Employee benefit plans $ 15,938 $ 15,654 Reserves and accruals 6,973 5,692 Deferred income 5,827 5,573 Operating lease right-of-use liabilities 7,407 5,500 Currency translation losses of foreign subsidiaries 2,156 2,173 Local currency exchange losses of foreign subsidiaries 2,075 1,084 Foreign tax credit carryforward 8,196 5,578 Capital loss carryforwards 4,143 4,197 All other 9,997 11,016 Total deferred tax assets 62,712 56,467 Valuation allowance (13,016) (10,234) Net deferred tax assets $ 49,696 $ 46,233 |
Schedule Of Combined Income Tax Expense (Benefit) Allocable To Continuing Operations, Other Comprehensive Income, And Adjustments To Shareholders' Equity | The combined income tax expense (benefit) allocable to continuing operations and other comprehensive income was as follows: Fiscal Year Ended March 31, 2024 2023 2022 Continuing operations $ 31,109 $ 11,733 $ 38,663 Other comprehensive loss (1,056) 3,551 6,555 Total $ 30,053 $ 15,284 $ 45,218 |
Reconciliation Of The Gross Liability For Uncertain Tax Positions | A reconciliation of the beginning and ending balance of the gross liability for uncertain tax positions is as follows: Fiscal Year Ended March 31, 2024 2023 2022 Liability for uncertain tax positions, beginning of year $ 1,415 $ 2,024 $ 2,437 Additions: Related to tax positions for the current year 65 1,198 48 Related to tax positions for prior years — — 328 Reductions: Due to lapses of statutes of limitations (56) (75) (56) Due to tax settlements (311) (1,661) (814) Effect of currency rate changes (43) (71) 81 Liability for uncertain tax positions, end of year $ 1,070 $ 1,415 $ 2,024 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Other Intangibles [Abstract] | |
Schedule of Goodwill [Table Text Block] | The Company's changes in goodwill at March 31, 2024 and 2023 consisted of the following: Fiscal Year Ended March 31, 2024 2023 Balance at beginning of year $ 213,922 $ 213,998 Foreign currency translation adjustment (53) (76) Balance at end of year $ 213,869 $ 213,922 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The Company's intangible assets primarily consist of capitalized customer-related intangibles, trade names, proprietary developed technology and noncompetition agreements. The Company's intangible assets subject to amortization consisted of the following at March 31, 2024 and 2023: March 31, 2024 (in thousands, except useful life) Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships 11 - 13 $ 86,500 $ (25,424) $ 61,076 Trade names 5 11,100 (8,265) 2,835 Developed technology 13 9,300 (5,665) 3,635 Noncompetition agreements 4 - 5 4,000 (2,725) 1,275 Other 5 782 (720) 62 Total intangible assets $ 111,682 $ (42,799) $ 68,883 March 31, 2023 Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships 11 - 13 $ 86,500 $ (17,693) $ 68,807 Trade names 5 11,100 (6,045) 5,055 Developed technology 13 9,300 (5,319) 3,981 Noncompetition agreements 4 - 5 4,000 (1,775) 2,225 Other 5 721 (688) 33 Total intangible assets $ 111,621 $ (31,520) $ 80,101 Intangible assets are amortized on a straight-line basis over the asset's estimated useful economic life as noted above. |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The Company's amortization expense for intangible assets for the years ended March 31, 2024, 2023, and 2022: Fiscal Year Ended March 31, 2024 2023 2022 Amortization Expense $ 11,279 $ 12,455 $ 11,209 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of March 31, 2024, the expected future amortization expense for intangible assets is as follows: Fiscal Year 2025 $ 11,073 2026 9,253 2027 8,077 2028 8,077 2029 and thereafter 32,403 Total expected future amortization expense $ 68,883 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | The Company's long-term debt at March 31, 2024 and 2023 consisted of the following: March 31, 2024 2023 Senior bank term loans $ 620,000 $ 620,000 Less: current portion — — Less: unamortized debt issuance costs (2,636) (3,191) Long-term debt $ 617,364 $ 616,809 |
Leases Leases of Lessees (Table
Leases Leases of Lessees (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Leases of Lessees [Abstract] | |
Schedule of supplemental balance sheet information related to leases [Table Text Block] | The following table sets forth the right-of-use assets and lease liabilities for operating leases included in the Company’s consolidated balance sheet: March 31, 2024 March 31, 2023 Assets Operating lease right-of-use assets $ 32,510 $ 40,505 Liabilities Current portion of operating lease liabilities $ 10,356 $ 11,404 Long-term operating lease liabilities 19,302 25,540 Total operating lease liabilities $ 29,658 $ 36,944 |
Schedule of income statement information related to leases [Table Text Block] | The following table sets forth the location and amount of operating lease costs included in the Company's consolidated statement of income: Fiscal Year Ended March 31, 2024 2023 2022 Income Statement Location Cost of goods sold $ 11,806 $ 11,036 $ 10,874 Selling, general, and administrative expenses 10,691 10,890 9,676 Total operating lease costs (1) $ 22,497 $ 21,926 $ 20,550 (1) |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table reconciles the undiscounted cash flows to the operating lease liabilities in the Company’s consolidated balance sheet: March 31, 2024 Fiscal Year Maturity of Operating Lease Liabilities 2025 $ 11,661 2026 7,632 2027 5,085 2028 3,405 2029 2,498 2030 and thereafter 4,290 Total undiscounted cash flows for operating leases $ 34,571 Less: Imputed interest (4,913) Total operating lease liabilities $ 29,658 |
Supplemental information related to operating leases [Table Text Block] | The following table sets forth supplemental information related to operating leases: Fiscal Year Ended March 31, (in thousands, except lease term and incremental borrowing rate) 2024 2023 2022 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of operating lease liabilities $ 13,898 $ 13,818 $ 12,018 Right-of-use assets obtained in exchange for new operating leases 8,507 13,536 22,506 Weighted Average Remaining Lease Term (years) 4.59 4.86 5.51 Weighted Average Collateralized Incremental Borrowing Rate 6.10 % 5.93 % 5.43 % |
Derivatives And Hedging Activ_2
Derivatives And Hedging Activities (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amount of Forward Contracts | The aggregate U.S. dollar notional amount of forward and option contracts entered for these purposes during fiscal years 2024, 2023, and 2022 was as follows: Fiscal Year Ended March 31, (in millions) 2024 2023 2022 Tobacco purchases $ 30.3 $ 47.1 $ 134.7 Processing costs 4.9 9.7 32.5 Crop input sales 30.1 35.2 65.3 Total $ 65.3 $ 92.0 $ 232.5 |
Effect Of Derivative Financial Instruments On The Consolidated Statements Of Income | The table below outlines the effects of the Company’s use of derivative financial instruments on the consolidated statements of income for the fiscal years ended March 31, 2024, 2023, and 2022. Fiscal Year Ended March 31, 2024 2023 2022 Cash Flow Hedges - Interest Rate Swap Agreements Derivative Effective Portion of Hedge Gain (loss) recorded in accumulated other comprehensive loss $ 15,375 $ 9,804 $ 15,651 Gain (loss) reclassified from accumulated other comprehensive loss into earnings $ 5,592 $ (66) $ (8,907) Gain on terminated interest rate swaps amortized from accumulated other comprehensive loss into earnings $ 5,397 $ 1,570 $ 1,061 Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings Interest expense Ineffective Portion of Hedge Gain (loss) recognized in earnings $ — $ — $ — Location of gain (loss) recognized in earnings Selling, general and administrative expenses Hedged Item Description of hedged item Floating rate interest payments on term loans Cash Flow Hedges - Forward Foreign Currency Exchange Contracts Derivative Effective Portion of Hedge Gain (loss) recorded in accumulated other comprehensive loss $ 2,088 $ 5,274 $ 13,879 Gain (loss) reclassified from accumulated other comprehensive loss into earnings $ 7,996 $ 4,469 $ 5,426 Location of gain (loss) reclassified from accumulated other comprehensive loss into earnings Cost of goods sold Ineffective Portion and Early De-designation of Hedges Gain (loss) recognized in earnings $ 1,138 $ (520) $ 2,040 Location of gain (loss) recognized in earnings Selling, general and administrative expenses Hedged Item Description of hedged item Forecast purchases of tobacco and sales of crop inputs in Brazil and Africa Derivatives Not Designated as Hedges - Gain (loss) recognized in earnings $ (3,484) $ (4,811) $ 16,732 Location of gain (loss) recognized in earnings Selling, general and administrative expenses |
Effect Of Derivative Financial Instruments On The Consolidated Balance Sheets | The table below outlines the effects of the Company’s derivative financial instruments on the consolidated balance sheets at March 31, 2024 and 2023: Derivatives in a Fair Value Derivatives in a Fair Value Balance Fair Value as of March 31, Balance Fair Value as of March 31, 2024 2023 2024 2023 Derivatives Designated as Hedging Instruments Interest rate swap agreements Other $ 6,706 $ — Other $ — $ 3,077 Forward foreign currency exchange contracts Other 77 7,102 Accounts 9 890 Total $ 6,783 $ 7,102 $ 9 $ 3,967 Derivatives Not Designated as Hedging Instruments Forward foreign currency exchange contracts Other $ 245 $ 1,320 Accounts $ 12 $ 435 Total $ 245 $ 1,320 $ 12 $ 435 Substantially all of the Company's forward foreign currency exchange contracts are subject to master netting arrangements, whereby the right to offset occurs in the event of default by a participating party. The Company has elected to present these contracts on a gross basis in the consolidated balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis | At March 31, 2024 and 2023, the Company had certain financial assets and financial liabilities that were required to be measured and reported at fair value on a recurring basis. These assets and liabilities are listed in the tables below and are classified based on how their values were determined under the fair value hierarchy or the NAV practical expedient: March 31, 2024 Fair Value Hierarchy NAV Level 1 Level 2 Level 3 Total Assets Money market funds $ 145 $ — $ — $ — $ 145 Trading securities associated with deferred compensation plans — 12,409 — — 12,409 Interest rate swap agreements — — 6,706 — 6,706 Forward foreign currency exchange contracts — — 322 — 322 Total financial assets measured and reported at fair value $ 145 $ 12,409 $ 7,028 $ — $ 19,582 Liabilities Forward foreign currency exchange contracts $ — $ — $ 21 $ — $ 21 Total financial liabilities measured and reported at fair value $ — $ — $ 21 $ — $ 21 March 31, 2023 Fair Value Hierarchy NAV Level 1 Level 2 Level 3 Total Assets Money market funds $ 400 $ — $ — $ — $ 400 Trading securities associated with deferred compensation plans — 11,698 — — 11,698 Forward foreign currency exchange contracts — — 8,422 — 8,422 Total financial assets measured and reported at fair value $ 400 $ 11,698 $ 8,422 $ — $ 20,520 Liabilities Interest rate swap agreements $ — $ — $ 3,077 $ — $ 3,077 Forward foreign currency exchange contracts — — 1,325 — 1,325 Total financial liabilities measured and reported at fair value $ — $ — $ 4,402 $ — $ 4,402 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table summarizes the fair and carrying value of the Company’s long-term debt, including the current portion at each of the balance sheet dates March 31, 2024 and 2023: Fiscal Year Ended March 31, (in millions of dollars) 2024 2023 Fair market value of long term obligations $ 618 $ 621 Carrying value of long term obligations $ 620 $ 620 |
Pension And Other Postretirem_2
Pension And Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Assumptions Used To Compute Net Periodic Benefit Cost And Benefit Obligations | Assumptions used for financial reporting purposes to compute net periodic benefit cost and benefit obligations for the Company's primary defined benefit plans were as follows: Pension Benefits Other Postretirement Benefits 2024 2023 2022 2024 2023 2022 Discount rates: Benefit cost for plan year 5.00 % 3.70 % 3.30 % 4.90 % 3.60 % 2.90 % Benefit obligation at end of plan year 5.27 % 5.00 % 3.70 % 5.17 % 4.90 % 3.60 % Expected long-term return on plan assets: Benefit cost for plan year 6.50 % 5.50 % 5.50 % 3.00 % 3.00 % 3.00 % Salary scale: Benefit cost for plan year 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % Benefit obligation at end of plan year 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % Healthcare cost trend rate N/A N/A N/A 6.97 % 6.97 % 6.17 % |
Benefit Obligations, Plan Assets, And Funded Status | The following table reflects the changes in benefit obligations and plan assets in fiscal years 2024 and 2023, as well as the funded status of the plans at March 31, 2024 and 2023: Pension Other Postretirement Benefits March 31, March 31, 2024 2023 2024 2023 Actuarial present value of benefit obligation: Accumulated benefit obligation $ 231,685 $ 235,540 Projected benefit obligation 237,626 241,399 $ 20,077 $ 20,716 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 241,399 $ 277,050 $ 20,716 $ 24,957 Service cost 5,214 6,172 239 115 Interest cost 11,566 9,670 1,049 944 Effect of discount rate change (5,147) (31,621) (255) (1,906) Foreign currency exchange rate changes (298) (543) 30 (145) Other 2,197 (2,120) 589 (659) Benefit payments (17,305) (17,209) (2,291) (2,590) Projected benefit obligation, end of year $ 237,626 $ 241,399 $ 20,077 $ 20,716 Change in plan assets: Plan assets at fair value, beginning of year $ 221,953 $ 256,013 $ 2,257 $ 2,706 Actual return on plan assets 11,666 (20,613) 174 73 Employer contributions 4,257 4,038 1,794 2,068 Foreign currency exchange rate changes (235) (276) — — Benefit payments (17,305) (17,209) (2,291) (2,590) Plan assets at fair value, end of year $ 220,336 $ 221,953 $ 1,934 $ 2,257 Funded status: Funded status of the plans, end of year $ (17,290) $ (19,446) $ (18,143) $ (18,459) |
Funded Status In Consolidated Balance Sheets | The funded status of the Company’s plans at the end of fiscal years 2024 and 2023 was reported in the consolidated balance sheets as follows: Pension Other Postretirement Benefits March 31, March 31, 2024 2023 2024 2023 Noncurrent assets (included in Pension asset) $ 11,857 $ 9,984 $ — $ — Current liability (included in Accrued expenses and other current liabilities) (2,344) (3,352) (1,695) (1,768) Noncurrent liability (reported as Pensions and other postretirement benefits) (26,803) (26,078) (16,448) (16,691) Amounts recognized in the consolidated balance sheets $ (17,290) $ (19,446) $ (18,143) $ (18,459) |
Additional Information On Funded Status | Additional information on the funded status of the Company’s plans as of the respective measurement dates for the fiscal years ended March 31, 2024 and 2023, is as follows: Pension Other Postretirement Benefits March 31, March 31, 2024 2023 2024 2023 For plans with a projected benefit obligation in excess of plan assets: Aggregate projected benefit obligation (PBO) $ 36,842 $ 29,430 $ 20,078 $ 20,716 Aggregate fair value of plan assets — — 1,934 2,257 For plans with an accumulated benefit obligation in excess of plan assets: Aggregate accumulated benefit obligation (ABO) 35,640 28,487 N/A N/A Aggregate fair value of plan assets — — N/A N/A |
Components Of Company's Net Periodic Benefit Cost | The components of the Company’s net periodic benefit cost were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2024 2023 2022 2024 2023 2022 Components of net periodic benefit cost: Service cost $ 5,214 $ 6,172 $ 6,674 $ 239 $ 115 $ 170 Interest cost 11,566 9,670 8,754 1,049 944 950 Expected return on plan assets (15,504) (13,630) (13,562) (63) (76) (86) Net amortization and deferral 659 2,038 1,679 (791) (737) (422) Net periodic benefit cost $ 1,935 $ 4,250 $ 3,545 $ 434 $ 246 $ 612 |
Recognized In Accumulated Other Comprehensive Income (Loss) On Pretax Basis | The amounts recognized in other comprehensive income or loss for fiscal years 2024 and 2023 and the amounts included in accumulated other comprehensive loss at the end of those fiscal years are shown below. All amounts shown are before allocated income taxes. Pension Other Postretirement Benefits March 31, March 31, 2024 2023 2024 2023 Change in net actuarial loss (gain): Net actuarial loss (gain), beginning of year $ 64,114 $ 67,280 $ (8,332) $ (6,681) Losses (gains) arising during the year 107 (98) 377 (2,223) Amortization included in net periodic benefit cost during the year (793) (3,068) 786 572 Net actuarial loss (gain), end of year 63,428 64,114 (7,169) (8,332) Change in prior service cost (benefit): Prior service cost (benefit), beginning of year (457) (1,487) (36) (201) Prior service cost (benefit) arising during the year 692 — — — Amortization included in net periodic benefit cost during the year 134 1,030 5 165 Prior service cost (benefit), end of year 369 (457) (31) (36) Total amounts in accumulated other comprehensive loss at end of year, before income taxes $ 63,797 $ 63,657 $ (7,200) $ (8,368) |
Weighted-Average Target Pension Asset Allocation And Target Ranges By Major Asset Category | The weighted–average target pension asset allocation and target ranges at the March 31, 2024 measurement date and the actual asset allocations at the March 31, 2024 and 2023 measurement dates by major asset category were as follows: Actual Allocation Target Allocation March 31, Major Asset Category Range 2024 2023 Equity securities 29.0 % 19 % - 39% 26.7 % 27.5 % Fixed income securities (1) 66.0 % 56 % - 76% 67.3 % 66.0 % Alternative investments 5.0 % 0 % - 10% 6.0 % 6.5 % Total 100.0 % 100.0 % 100.0 % |
Expected Future Benefit Payments | Estimated future benefit payments to be made from the Company’s plans are as follows: Pension Other Fiscal Year 2025 $ 17,126 $ 2,100 2026 18,141 1,929 2027 23,644 1,856 2028 19,017 1,774 2029 17,345 1,681 2030 - 2033 85,512 7,729 |
Fair Values Of The Assets Under Fair Value Hierarchy | Fair values of the assets of the Company’s pension plans as of March 31, 2024 and 2023, classified based on how their values were determined under the fair value hierarchy are as follows: March 31, 2024 Level 1 Level 2 Level 3 Total Equity securities $ 56,243 $ — $ — $ 56,243 Fixed income securities (1) 143,740 — 7,695 151,435 Alternative investments — — 12,658 12,658 Total investments $ 199,983 $ — $ 20,353 $ 220,336 March 31, 2023 Level 1 Level 2 Level 3 Total Equity securities $ 58,745 $ — $ — $ 58,745 Fixed income securities (1) 142,335 — 6,917 149,252 Alternative investments — — 13,956 13,956 Total investments $ 201,080 $ — $ 20,873 $ 221,953 (1) Includes high yield securities and cash and cash equivalent balances. |
Common And Preferred Stock Comm
Common And Preferred Stock Common and Preferred Stock (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Schedule of Repurchases of Shares [Abstract] | |
Schedule Of Repurchases Of Shares [Table Text Block] | Repurchases of common stock under the programs for fiscal years 2024, 2023, and 2022 were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Number of shares repurchased 100,000 66,124 58,264 Cost of shares repurchased (in thousands of dollars) $ 4,744 $ 3,448 $ 3,053 Weighted-average cost per share $ 47.44 $ 52.12 $ 52.41 |
Executive Stock Plans And Sto_2
Executive Stock Plans And Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary Of RSU, Restricted Stock, And PSA Activity | The following table summarizes the Company’s RSU, restricted stock, and PSU activity for fiscal years 2022 through 2024: RSUs Restricted Stock PSUs Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Fiscal Year Ended March 31, 2022: Unvested at beginning of year 342,468 $ 55.44 11,600 $ 41.86 161,147 $ 46.20 Granted 93,564 56.18 — — 48,650 47.95 Vested (86,488) 54.33 — — (50,242) 57.12 Forfeited — — — — (1,555) 57.12 Unvested at end of year 349,544 55.86 11,600 41.86 158,000 43.16 Fiscal Year Ended March 31, 2023: Granted 100,105 60.89 — — 48,315 54.46 Vested (67,239) 62.39 — — (37,040) 50.16 Forfeited — — — — (9,260) 50.16 Unvested at end of year 382,410 56.03 11,600 41.86 160,015 44.55 Fiscal Year Ended March 31, 2024: Granted 117,103 51.90 — — 65,645 43.01 Vested (109,877) 61.75 — — (73,963) 34.45 Forfeited — — — — (467) 34.33 Unvested at end of year 389,636 $ 53.18 11,600 $ 41.86 151,230 $ 48.22 |
Stock-Based Compensation Expense And Related Income Tax Benefit Recognized | For the fiscal years ended March 31, 2024, 2023, and 2022, total stock-based compensation expense and the related income tax benefit recognized were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Total stock-based compensation expense $ 12,063 $ 8,419 $ 6,186 Income tax benefit recorded on stock-based compensation expense $ 2,713 $ 1,899 $ 1,389 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Operating Results For The Company's Reportable Segments | Reportable segment data as of, or for, the fiscal years ended March 31, 2024, 2023, and 2022, is as follows: Sales and Other Operating Revenues Operating Income Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2024 2023 2022 2024 2023 2022 Tobacco Operations $ 2,438,775 $ 2,258,260 $ 1,835,790 $ 222,352 $ 172,889 $ 157,754 Ingredients Operations 309,798 311,564 267,811 3,936 10,566 16,581 Subtotal 2,748,573 2,569,824 2,103,601 226,288 183,455 174,335 Deduct: Equity in pretax earnings of unconsolidated affiliates (1) (756) (2,383) (6,095) Restructuring and impairment costs (2) (3,523) — (10,457) Add: Other income (3) — — 2,532 Consolidated total $ 2,748,573 $ 2,569,824 $ 2,103,601 $ 222,009 $ 181,072 $ 160,315 Segment Assets Accounts Receivable, net March 31, March 31, 2024 2023 2022 2024 2023 2022 Tobacco Operations $ 2,451,895 $ 2,164,600 $ 2,109,845 $ 472,357 $ 350,014 $ 336,638 Ingredients Operations 485,344 474,582 476,500 52,905 52,059 48,799 Consolidated total $ 2,937,239 $ 2,639,182 $ 2,586,345 $ 525,262 $ 402,073 $ 385,437 Goodwill, net Intangibles, net March 31, Fiscal Year Ended March 31, 2024 2023 2022 2024 2023 2022 Tobacco Operations $ 97,801 $ 97,854 $ 97,930 $ 62 $ 34 $ 57 Ingredients Operations 116,068 116,068 116,068 68,821 80,067 92,514 Consolidated total $ 213,869 $ 213,922 $ 213,998 $ 68,883 $ 80,101 $ 92,571 Capital Expenditures Depreciation and Amortization Fiscal Year Ended March 31, Fiscal Year Ended March 31, 2024 2023 2022 2024 2023 2022 Tobacco Operations $ 35,173 $ 38,084 $ 34,237 $ 40,267 $ 38,650 $ 36,272 Ingredients Operations 30,840 16,590 18,966 18,059 18,650 16,249 Consolidated total $ 66,013 $ 54,674 $ 53,203 $ 58,326 $ 57,300 $ 52,521 (1) Equity in pretax earnings of unconsolidated affiliates is included in reportable segment operating income, but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. (2) Restructuring and impairment costs are excluded from reportable segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 4). (3) Other income represents the reversal of the contingent consideration liability associated with the acquisition of FruitSmart. |
Schedule Of Sales And Long-Lived Assets By Country | Geographic Data Sales and Other Operating Revenues Fiscal Year Ended March 31, 2024 2023 2022 Belgium $ 552,208 $ 395,616 $ 283,072 United States 547,923 530,467 495,322 China 219,979 204,139 97,826 Philippines 133,656 149,867 147,876 Indonesia 117,019 45,089 41,738 Poland 97,723 119,629 90,270 Germany 95,350 108,844 93,057 Netherlands 42,492 51,843 45,297 Mexico 26,438 51,847 29,514 France 16,669 64,563 39,307 All other countries 899,116 847,920 740,322 Consolidated total $ 2,748,573 $ 2,569,824 $ 2,103,601 Long-Lived Assets March 31, (in thousands) 2024 2023 2022 United States $ 355,905 $ 343,470 $ 344,276 Brazil 139,642 134,232 136,653 Mozambique 35,845 38,979 40,228 All other countries 117,240 128,504 130,530 Consolidated total $ 648,632 $ 645,185 $ 651,687 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the balances for each component of accumulated other comprehensive income (loss) attributable to the Company for the fiscal years ended March 31, 2024, 2023, and 2022: Fiscal Year Ended March 31, 2024 2023 2022 Foreign currency translation: Balance at beginning of year $ (44,233) $ (40,965) $ (35,135) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on foreign currency translation (1,531) (3,166) (6,367) Less: Net loss on foreign currency translation attributable to noncontrolling interests 949 (102) 537 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes (582) (3,268) (5,830) Balance at end of year $ (44,815) $ (44,233) $ (40,965) Foreign currency hedge: Balance at beginning of year $ 4,899 $ 3,579 $ (414) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on derivative instruments (net of tax (expense) benefit of $17, $(1,160) and $(2,199)) (187) 2,562 6,679 Reclassification of net (gain) loss to earnings (net of tax expense (benefit) of $1,718, $389, and $1,115) (1) (5,328) (1,242) (2,686) Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes (5,515) 1,320 3,993 Balance at end of year $ (616) $ 4,899 $ 3,579 Interest rate hedge: Balance at beginning of year $ 5,253 $ (860) $ (19,480) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) on derivative instruments (net of tax (expense) benefit of $(4,035), $(2,583), and $(3,249)) 11,340 7,220 12,402 Reclassification of net (gain) loss to earnings (net of tax expense (benefit) of $2,884, $396, and $(1,628)) (2) (8,105) (1,107) 6,218 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes 3,235 6,113 18,620 Balance at end of year $ 8,488 $ 5,253 $ (860) Pension and other postretirement benefit plans: Balance at beginning of year $ (42,976) $ (46,065) $ (52,008) Other comprehensive income (loss) attributable to Universal Corporation: Net gain (loss) arising during the year (net of tax (expense) benefit of $149, $(370), and $(297) (3) (430) 1,947 2,799 Amortization included in earnings (net of tax benefit of $339, $223, and $298) (4) (1,236) 1,142 3,144 Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes (1,666) 3,089 5,943 Balance at end of year $ (44,642) $ (42,976) $ (46,065) Total accumulated other comprehensive income (loss) at end of year $ (81,585) $ (77,057) $ (84,311) (1) Gains (losses) on foreign currency cash flow hedges related to forecast purchases of tobacco and crop input sales are reclassified from accumulated other comprehensive income (loss) to cost of goods sold when the tobacco is sold to customers. See Note 11 for additional information. (2) Gain (loss) on interest rate cash flow hedges is reclassified from accumulated other comprehensive income (loss) to interest expense when the related interest payments are made on the debt for open interest rate swap agreements or as amortized to interest expense over the period to original maturity for terminated swap agreements. See Note 11 for additional information. (3) These items arise from the remeasurement of the assets and liabilities of the Company's defined benefit pension and other postretirement benefit plans. Those remeasurements are made on an annual basis at the end of the fiscal year. See Note 13 for additional information. (4) This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost. See Note 13 for additional information. |
Nature Of Operations And Sign_4
Nature Of Operations And Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | ||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Number of countries in which entity operates | 30 | |||
Dividends received on equity method investments | [1] | $ 0 | $ 5,612,000 | $ 4,285,000 |
Advances to suppliers, current and non-current | 162,000,000 | 199,000,000 | ||
Valuation allowance amount related to advances to suppliers | 20,000,000 | 24,000,000 | ||
Provision (recoveries) for loss on uncollectible advances to suppliers | 14,100,000 | 10,600,000 | 6,000,000 | |
Advances to suppliers on which interest has been discontinued | 2,000,000 | 3,000,000 | ||
Aggregate balance of recoverable value added tax credits | 72,000,000 | 64,000,000 | ||
Valuation allowance on recoverable value added tax credits | 21,000,000 | 22,000,000 | ||
Interest costs capitalized | 0 | |||
Foreign currency remeasurement gain (loss) | 5,100,000 | (3,900,000) | 19,000,000 | |
Foreign currency transaction gain (loss) | $ 3,200,000 | $ 8,800,000 | $ (18,000,000) | |
Percentage of revenue earned from processing tobacco owned by customers | 5% | |||
Zimbabwe [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Investment in deconsolidated subsidiary | $ 0 | |||
Net foreign currency translation loss | $ 7,200,000 | |||
Minimum [Member] | Buildings [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 15 years | |||
Minimum [Member] | Processing And Packing Machinery [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Minimum [Member] | Transport Equipment [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Minimum [Member] | Computer Equipment [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Maximum [Member] | Buildings [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 40 years | |||
Maximum [Member] | Processing And Packing Machinery [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 11 years | |||
Maximum [Member] | Transport Equipment [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 10 years | |||
Maximum [Member] | Computer Equipment [Member] | ||||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 12 years | |||
[1] In accordance with the applicable accounting guidance, dividends received from unconsolidated affiliates accounted for on the equity method that represent a return on capital (i.e., a return of earnings on a cumulative basis) are presented as operating cash flows in the consolidated statements of cash flows. |
Nature Of Operations And Sign_5
Nature Of Operations And Significant Accounting Policies (Reconciliation Of Equity In Unconsolidated Affiliates) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Accounting Policies [Abstract] | ||||
Equity in pretax earnings reported in the consolidated statements of income | [1] | $ 756 | $ 2,383 | $ 6,095 |
Less: Equity in income taxes | 483 | (781) | (1,481) | |
Equity in net income | 1,239 | 1,602 | 4,614 | |
Less: Dividends received on investments | [2] | 0 | 5,612 | 4,285 |
Equity in net income, net of dividends, reported in the consolidated statements of cash flows | $ 1,239 | $ (4,010) | $ 329 | |
[1] Equity in pretax earnings of unconsolidated affiliates is included in reportable segment operating income, but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. In accordance with the applicable accounting guidance, dividends received from unconsolidated affiliates accounted for on the equity method that represent a return on capital (i.e., a return of earnings on a cumulative basis) are presented as operating cash flows in the consolidated statements of cash flows. |
Business Combinations Busines_2
Business Combinations Business Combinations (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Oct. 04, 2021 | Dec. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Business Acquisition [Line Items] | |||||||
Purchase of business, net of cash held by the business | $ 0 | $ 0 | $ 102,462 | ||||
Restricted cash (Other noncurrent assets) | 0 | 0 | 6,000 | ||||
Other income | [1] | 0 | 0 | 2,532 | |||
Capital Expenditures | 66,013 | 54,674 | $ 53,203 | ||||
Operating Lease, Liability | $ 29,658 | 36,944 | |||||
Silva, International | |||||||
Business Acquisition [Line Items] | |||||||
Restricted cash (Other noncurrent assets) | $ 6,000 | ||||||
Shank's Extracts | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition percentage of capital stock acquired | 100% | ||||||
Purchase of business, net of cash held by the business | $ 100,000 | ||||||
Working capital adjustments | $ 2,400 | ||||||
Business Combination, Acquisition Related Costs | $ 2,300 | ||||||
Capital Expenditures | $ 13,300 | ||||||
Operating Lease, Liability | $ 8,500 | ||||||
[1] Other income represents the reversal of the contingent consideration liability associated with the acquisition of FruitSmart. |
Business Combinations Busines_3
Business Combinations Business Combinations Assets Acquired and Liabilities Assumed (Table) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Oct. 04, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill, net | $ 213,869 | $ 213,922 | $ 213,998 | |
Shank's Extracts | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 754 | |||
Accounts receivable | 6,643 | |||
Inventory | 15,792 | |||
Other current assets | 415 | |||
Property, plant and equipment | 11,000 | |||
Operating lease right-of-use assets | 8,531 | |||
Customer relationships | 24,000 | |||
Developed technology | 4,500 | |||
Noncompetition agreements | 3,000 | |||
Goodwill, net | 41,061 | |||
Total assets acquired | 115,696 | |||
Accounts payable and accrued expenses | 6,159 | |||
Customer advances and deposits | 351 | |||
Accrued compensation | 655 | |||
Current portion operating lease liabilities | 8,531 | |||
Total liabilities assumed | 15,696 | |||
Total assets acquired and liabilities assumed | $ 100,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Revenue from Contract with Customers (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Five largest customers [Member] | |||
Revenues | $ 0.60 | ||
Philip Morris International Inc [Member] | |||
Revenues | 630,000,000 | $ 460,000,000 | $ 320,000,000 |
Imperial Tobacco Group Plc [Member] | |||
Revenues | 340,000,000 | 430,000,000 | 380,000,000 |
Japanese Tobacco, Inc [Member] | |||
Revenues | $ 260,000,000 | $ 160,000,000 | $ 120,000,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Revenue from Contract with Customer (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,721,644 | $ 2,549,818 | $ 2,091,150 |
Sales and other operating revenues | 2,748,573 | 2,569,824 | 2,103,601 |
Manufactured Product, Other | Tobacco Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,268,600 | 2,093,493 | 1,703,330 |
Manufactured Product, Other | Food Ingredient Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 292,291 | 294,302 | 250,595 |
Service, Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 82,976 | 78,357 | 77,048 |
Product and Service, Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 77,777 | 83,666 | 60,177 |
Other sales and revenue [Member] [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Other operating revenues | $ 26,929 | $ 20,006 | $ 12,451 |
Restructuring Costs (Narrative)
Restructuring Costs (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and impairment costs | [1] | $ 3,523 | $ 0 | $ 10,457 |
Tobacco Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | 2,200 | |||
Other restructuring costs | 1,700 | |||
Sales agreement to sell common stock of subsidiary company, value | $ 8,500 | |||
Restructuring and impairment costs | $ 1,800 | |||
Ingredients Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Gain (Loss) on Disposition of Property Plant Equipment | 1,200 | |||
Tanzania | Tobacco Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment charges | $ 9,400 | |||
[1]Restructuring and impairment costs are excluded from reportable segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 4) |
Restructuring Costs (Cumulative
Restructuring Costs (Cumulative Restructuring Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 1,434 | $ 0 | $ 2,150 | |
Asset Impairment Charges | 2,089 | 0 | 8,307 | |
Restructuring and impairment costs | [1] | 3,523 | 0 | 10,457 |
Employee Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | 1,615 | 0 | 2,174 | |
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | $ (181) | $ 0 | $ (24) | |
[1]Restructuring and impairment costs are excluded from reportable segment operating income, but are included in consolidated operating income in the consolidated statements of income (see Note 4) |
Restructuring Costs (Reconcilia
Restructuring Costs (Reconciliation Of Company's Liability For The Restructuring Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 1,434 | $ 0 | $ 2,150 | |
Payments and write-offs for restructuring | 1,181 | 0 | 4,133 | |
Balance | 253 | 0 | 0 | $ 1,983 |
Employee Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Employee termination benefits | 1,615 | 0 | 2,174 | |
Payments and write-offs for restructuring | 1,362 | 0 | 3,544 | |
Balance | 253 | 0 | 0 | 1,370 |
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | (181) | 0 | (24) | |
Payments and write-offs for restructuring | (181) | 0 | 589 | |
Balance | $ 0 | $ 0 | $ 0 | $ 613 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic And Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator for basic earnings per share | |||
Net income attributable to Universal Corporation | $ 119,598 | $ 124,052 | $ 86,577 |
Denominator for basic earnings per share | |||
Weighted average shares outstanding | 24,851,858 | 24,773,710 | 24,764,177 |
Basic earnings per share | $ 4.81 | $ 5.01 | $ 3.50 |
Numerator for diluted earnings per share | |||
Net income attributable to Universal Corporation | $ 119,598 | $ 124,052 | $ 86,577 |
Denominator for diluted earnings per share: | |||
Weighted average shares outstanding | 24,851,858 | 24,773,710 | 24,764,177 |
Effect of dilutive securities (if conversion or exercise assumed) Employee share-based awards | 189,056 | 170,131 | 158,719 |
Denominator for diluted earnings per share | 25,040,914 | 24,943,841 | 24,922,896 |
Diluted earnings per share | $ 4.78 | $ 4.97 | $ 3.47 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% |
Deferred tax liabilities on repatriated earnings | $ 0 | ||
Unrecognized tax benefits that would impact effective tax rate | 1,100 | ||
Liability where a significant change in unrecognized tax benefits is reasonably possible | 800 | ||
Tax Adjustments, Settlements, and Unusual Provisions | 0 | $ (29,236) | $ 0 |
Income taxes | 31,109 | 11,733 | 38,663 |
Interest expense | 66,273 | 49,300 | 27,747 |
Brazil Tax Ruling [Member] | |||
Income Tax [Line Items] | |||
Tax Adjustments, Settlements, and Unusual Provisions | 26,600 | ||
Interest Income, Operating | 5,000 | ||
Income taxes | 24,200 | ||
Federal Income Tax Provision | (2,400) | ||
Asset Sale Issue [Member] | |||
Income Tax [Line Items] | |||
Interest expense | 1,800 | ||
State And Foreign Jurisdictions [Member] | |||
Income Tax [Line Items] | |||
Tax Adjustments, Settlements, and Unusual Provisions | $ 1,700 | 800 | |
Income taxes | $ 1,100 | ||
Accrued Income Taxes | 500 | ||
Judicial Ruling | |||
Income Tax [Line Items] | |||
Income taxes | $ 1,700 | ||
Minimum [Member] | State And Foreign Jurisdictions [Member] | |||
Income Tax [Line Items] | |||
Open tax years | 3 years | ||
Maximum [Member] | State And Foreign Jurisdictions [Member] | |||
Income Tax [Line Items] | |||
Open tax years | 6 years |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
United States, current | $ 5,107 | $ 9,967 | $ 15,042 |
State and local, current | 696 | 1,134 | 265 |
Foreign, current | 30,711 | 8,289 | 25,828 |
Total, current | 36,514 | 19,390 | 41,135 |
United States, deferred | (824) | (4,727) | (498) |
State and local, deferred | (138) | 613 | 1,568 |
Foreign, deferred | (4,443) | (3,543) | (3,542) |
Deferred income tax expense (benefit) | (5,405) | (7,657) | (2,472) |
Total | $ 31,109 | $ 11,733 | $ 38,663 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 0.30% | 1% | 1% |
Foreign earnings taxed at rates other than the U.S. federal statutory tax rate | (5.20%) | (1.50%) | 3.70% |
Foreign dividend withholding taxes | 2.90% | 2.60% | 2.30% |
Brazil tax ruling | 0% | (17.10%) | 0% |
Changes in uncertain tax positions | (0.20%) | (0.10%) | (0.30%) |
Other | 0.20% | 2.40% | (0.50%) |
Effective income tax rate | 19% | 8.30% | 27.20% |
Income Taxes (Schedule Of U.S.
Income Taxes (Schedule Of U.S. And Foreign Components Of Income Before Income Taxes And Other Items) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 22,517 | $ 27,942 | $ 74,553 |
Foreign | 141,563 | 114,027 | 67,714 |
Total | $ 164,080 | $ 141,969 | $ 142,267 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Foreign withholding taxes | $ 15,350 | $ 17,123 |
Property, plant and equipment | 10,604 | 10,617 |
Undistributed earnings | 3,145 | 3,772 |
Operating lease right-of-use assets | 8,119 | 5,791 |
Goodwill and other intangible assets | 32,232 | 33,781 |
Interest rate swap | 3,036 | 1,885 |
All other | 1,168 | 2,786 |
Total deferred tax liabilities | 73,654 | 75,755 |
Employee benefit plans | 15,938 | 15,654 |
Reserves and accruals | 6,973 | 5,692 |
Deferred income | 5,827 | 5,573 |
Operating lease right-of-use liabilities | 7,407 | 5,500 |
Currency translation losses of foreign subsidiaries | 2,156 | 2,173 |
Local currency exchange losses of foreign subsidiaries | 2,075 | 1,084 |
Foreign tax credit carryforward | 8,196 | 5,578 |
Capital loss carryforwards | 4,143 | 4,197 |
All other | 9,997 | 11,016 |
Total deferred tax assets | 62,712 | 56,467 |
Valuation allowance | (13,016) | (10,234) |
Net deferred tax assets | $ 49,696 | $ 46,233 |
Income Taxes (Schedule Of Combi
Income Taxes (Schedule Of Combined Income Tax Expense (Benefit) Allocable To Continuing Operations, Other Comprehensive Income, And Adjustments To Shareholders' Equity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Continuing operations | $ 31,109 | $ 11,733 | $ 38,663 |
Other comprehensive loss | (1,056) | 3,551 | 6,555 |
Total | $ 30,053 | $ 15,284 | $ 45,218 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of the Gross Liability For Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Liability for uncertain tax positions, beginning of year | $ 1,415 | $ 2,024 | $ 2,437 |
Additions: Related to tax positions for the current year | 65 | 1,198 | 48 |
Additions: Related to tax positions for prior years | 0 | 0 | 328 |
Reductions: Due to lapses of statutes of limitations | (56) | (75) | (56) |
Tax Adjustments, Settlements, and Unusual Provisions | (311) | (1,661) | (814) |
Increase: Effect of currency rate movement | (81) | ||
Reductions: Effect of currency rate movement | (43) | (71) | |
Liability for uncertain tax positions, end of year | $ 1,070 | $ 1,415 | $ 2,024 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles Change in Goodwill Balance (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of year | $ 213,922 | $ 213,998 |
Foreign currency translation adjustment | (53) | (76) |
Balance at end of year | $ 213,869 | $ 213,922 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 111,682 | $ 111,621 |
Accumulated amortization | (42,799) | (31,520) |
Net carrying value | 68,883 | 80,101 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 86,500 | 86,500 |
Accumulated amortization | (25,424) | (17,693) |
Net carrying value | $ 61,076 | $ 68,807 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 11 years | 11 years |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 13 years | 13 years |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 5 years | 5 years |
Gross carrying value | $ 11,100 | $ 11,100 |
Accumulated amortization | (8,265) | (6,045) |
Net carrying value | $ 2,835 | $ 5,055 |
Developed Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 13 years | 13 years |
Gross carrying value | $ 9,300 | $ 9,300 |
Accumulated amortization | (5,665) | (5,319) |
Net carrying value | 3,635 | 3,981 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 4,000 | 4,000 |
Accumulated amortization | (2,725) | (1,775) |
Net carrying value | $ 1,275 | $ 2,225 |
Noncompete Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 4 years | 4 years |
Noncompete Agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 5 years | 5 years |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life | 5 years | 5 years |
Gross carrying value | $ 782 | $ 721 |
Accumulated amortization | (720) | (688) |
Net carrying value | $ 62 | $ 33 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 11,279 | $ 12,455 | $ 11,209 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles Future Amortization Expense (Table) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2025 | $ 11,073 | |
2026 | 9,253 | |
2027 | 8,077 | |
2028 | 8,077 | |
2029 and thereafter | 32,403 | |
Total expected future amortization expense | $ 68,883 | $ 80,101 |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Five-year revolving credit facility | $ 530,000 | |
Revolving credit facility, term | 5 years | |
Amounts outstanding under line of credit facility | $ 125,000 | |
Additional borrowings under present credit agreement | 200,000 | |
Outstanding uncommitted lines of credit | $ 417,217 | $ 195,564 |
Weighted average interest rates on short-term borrowings outstanding | 6.70% | 6.20% |
Uncommitted lines of credit [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding uncommitted lines of credit | $ 292,000 | $ 166,000 |
Unused lines of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding uncommitted lines of credit | 135,000 | |
Five-year term [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | $ 275,000 | |
Number of Years of Bank Credit Agreement | 5 years | |
Seven-year term [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | $ 345,000 | |
Number of Years of Bank Credit Agreement | 7 years |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
Proceeds from termination of interest rate swap agreements | $ 0 | $ 11,786 | $ 0 |
Interest Rate Swap [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from termination of interest rate swap agreements | $ 11,800 | $ 11,800 | |
Five-year term [Member] | |||
Debt Instrument [Line Items] | |||
Number of Years of Bank Credit Agreement | 5 years | ||
Term loan | $ 275,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.50% | ||
Debt, Weighted Average Interest Rate | 6.46% | ||
Seven-year term [Member] | |||
Debt Instrument [Line Items] | |||
Number of Years of Bank Credit Agreement | 7 years | ||
Term loan | $ 345,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.65% | ||
Debt, Weighted Average Interest Rate | 6.66% |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Debt Instrument [Line Items] | ||
Senior bank term loans | $ 620,000 | $ 620,000 |
Less: current portion | 0 | 0 |
Less: unamortized debt issuance costs | (2,636) | (3,191) |
Long-term debt | $ 617,364 | $ 616,809 |
Leases of Lessees (Narrative) (
Leases of Lessees (Narrative) (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2024 USD ($) | |
Operating Lease, Expense | $ 0 |
Leases Supplemental balance she
Leases Supplemental balance sheet information related to leases (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Operating lease right-of-use assets | $ 32,510 | $ 40,505 |
Current portion of operating lease liabilities | 10,356 | 11,404 |
Long-term operating lease liabilities | 19,302 | 25,540 |
Operating Lease, Liability | $ 29,658 | $ 36,944 |
Leases Supplemental income stat
Leases Supplemental income statement information related to leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Lease, Cost | $ 22,497 | $ 21,926 | $ 20,550 |
Cost of goods sold [Member] | |||
Operating Lease, Cost | 11,806 | 11,036 | 10,874 |
Selling, General and Administrative Expenses [Member] | |||
Operating Lease, Cost | $ 10,691 | $ 10,890 | $ 9,676 |
Leases Maturities of operating
Leases Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
2025 | $ 11,661 | |
2026 | 7,632 | |
2027 | 5,085 | |
2028 | 3,405 | |
2029 | 2,498 | |
2030 and thereafter | 4,290 | |
Total undiscounted cash flows for operating leases | 34,571 | |
Less: Imputed interest | (4,913) | |
Operating Lease, Liability | $ 29,658 | $ 36,944 |
Leases Supplemental information
Leases Supplemental information related to leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 13,898 | $ 13,818 | $ 12,018 |
Right-of-use assets obtained in exchange for new operating leases | $ 8,507 | $ 13,536 | $ 22,506 |
Weighted Average Remaining Lease Term (years) | 4 years 7 months 2 days | 4 years 10 months 9 days | 5 years 6 months 3 days |
Weighted Average Collateralized Incremental Borrowing Rate | 6.10% | 5.93% | 5.43% |
Derivatives And Hedging Activ_3
Derivatives And Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative [Line Items] | |||
Derivative, Fair Value, Net | $ 5,400 | ||
Proceeds from termination of interest rate swap agreements | 0 | $ 11,786 | $ 0 |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 370,000 | ||
Proceeds from termination of interest rate swap agreements | 11,800 | 11,800 | |
Foreign Exchange Forward [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 20,900 | $ 42,800 | |
Cash Flow Hedges [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 310,000 | ||
Cash Flow Hedges [Member] | Foreign Exchange Forward [Member] | |||
Derivative [Line Items] | |||
Unrealized Loss on Foreign Currency Derivatives, before Tax | $ (100) |
Derivatives And Hedging Activ_4
Derivatives And Hedging Activities Notional Amount of Forward Contracts (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 |
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 65.3 | $ 92 | $ 232.5 |
Tobacco purchases [Member] | Derivatives Designated As Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 30.3 | 47.1 | 134.7 |
Processing costs [Member] | Derivatives Not Designated As Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 4.9 | 9.7 | 32.5 |
Crop input sales [Member] | Derivatives Not Designated As Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 30.1 | $ 35.2 | $ 65.3 |
Derivatives And Hedging Activ_5
Derivatives And Hedging Activities (Effect Of Derivative Financial Instruments On The Consolidated Statements Of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Derivatives Designated As Hedges [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | $ 15,375 | $ 9,804 | $ 15,651 |
Amortization of Deferred Hedge Gains | 5,397 | 1,570 | 1,061 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | $ 5,592 | $ (66) | $ (8,907) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | Interest expense |
Derivatives Designated As Hedges [Member] | Interest Rate Swap [Member] | Selling, General And Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings from ineffective portion and early de-designation of cash flow hedges | $ 0 | $ 0 | $ 0 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses | Selling, general and administrative expenses |
Derivatives Designated As Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | Cost Of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | $ 2,088 | $ 5,274 | $ 13,879 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | $ 7,996 | $ 4,469 | $ 5,426 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of goods sold | Cost of goods sold | Cost of goods sold |
Derivatives Designated As Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | Selling, General And Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings from ineffective portion and early de-designation of cash flow hedges | $ 1,138 | $ (520) | $ 2,040 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses | Selling, general and administrative expenses |
Derivatives Not Designated As Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | Selling, General And Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (3,484) | $ (4,811) | $ 16,732 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses | Selling, general and administrative expenses |
Derivatives And Hedging Activ_6
Derivatives And Hedging Activities (Effect Of Derivative Financial Instruments On The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Derivative [Line Items] | ||
Derivatives in a Fair Value Asset Position Designated as Hedging Instruments | $ 6,783 | $ 7,102 |
Derivatives in a Fair Value Liability Position Designated as Hedging Instruments | 9 | 3,967 |
Derivatives in a Fair Value Asset Position Not Designated as Hedging Instruments | 245 | 1,320 |
Derivatives in a Fair Value Liability Position Not Designated as Hedging Instruments | 12 | 435 |
Forward Foreign Currency Exchange Contracts [Member] | Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Asset Position Designated as Hedging Instruments | 77 | 7,102 |
Derivatives in a Fair Value Asset Position Not Designated as Hedging Instruments | 245 | 1,320 |
Forward Foreign Currency Exchange Contracts [Member] | Accounts Payable And Accrued Expenses [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Liability Position Designated as Hedging Instruments | 9 | 890 |
Derivatives in a Fair Value Liability Position Not Designated as Hedging Instruments | 12 | 435 |
Cash Flow Hedges [Member] | Interest Rate Swap Agreements [Member] | Other Non-Current Assets [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Asset Position Designated as Hedging Instruments | 6,706 | 0 |
Cash Flow Hedges [Member] | Interest Rate Swap Agreements [Member] | Other Noncurrent Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivatives in a Fair Value Liability Position Designated as Hedging Instruments | $ 0 | $ 3,077 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Assets: | ||
Money market funds | $ 145 | $ 400 |
Trading securities associated with deferred compensation plans | 12,409 | 11,698 |
Interest Rate Derivative Assets, at Fair Value | 6,706 | |
Forward foreign currency exchange contracts | 322 | 8,422 |
Total financial assets measured and reported at fair value | 19,582 | 20,520 |
Liabilities: | ||
Interest rate swap agreements | 3,077 | |
Forward foreign currency exchange contracts | 21 | 1,325 |
Total financial liabilities measured and reported at fair value | 21 | 4,402 |
Level 1 [Member] | ||
Assets: | ||
Money market funds | 0 | 0 |
Trading securities associated with deferred compensation plans | 12,409 | 11,698 |
Interest Rate Derivative Assets, at Fair Value | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial assets measured and reported at fair value | 12,409 | 11,698 |
Liabilities: | ||
Interest rate swap agreements | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial liabilities measured and reported at fair value | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Money market funds | 0 | 0 |
Trading securities associated with deferred compensation plans | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | 6,706 | |
Forward foreign currency exchange contracts | 322 | 8,422 |
Total financial assets measured and reported at fair value | 7,028 | 8,422 |
Liabilities: | ||
Interest rate swap agreements | 3,077 | |
Forward foreign currency exchange contracts | 21 | 1,325 |
Total financial liabilities measured and reported at fair value | 21 | 4,402 |
Level 3 [Member] | ||
Assets: | ||
Money market funds | 0 | 0 |
Trading securities associated with deferred compensation plans | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial assets measured and reported at fair value | 0 | 0 |
Liabilities: | ||
Interest rate swap agreements | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial liabilities measured and reported at fair value | 0 | 0 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Assets: | ||
Money market funds | 145 | 400 |
Trading securities associated with deferred compensation plans | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial assets measured and reported at fair value | 145 | 400 |
Liabilities: | ||
Interest rate swap agreements | 0 | |
Forward foreign currency exchange contracts | 0 | 0 |
Total financial liabilities measured and reported at fair value | $ 0 | $ 0 |
Fair Value Measurements - Long
Fair Value Measurements - Long Term Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 618,000 | $ 621,000 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 620,000 | 620,000 |
Long-term debt | $ 617,364 | $ 616,809 |
Pension And Other Postretirem_3
Pension And Other Postretirement Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2031 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss expected in net periodic benefit cost during next fiscal year | $ 200 | |||
Prior service benefit expected in net periodic benefit cost during next fiscal year | $ 100 | |||
Percentage of total plan assets | 97% | |||
Percentage of total projected benefit obligation | 84% | |||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | $ 4,300 | $ 3,400 | $ 3,000 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funded status of the plans, end of year | $ 17,290 | $ 19,446 | ||
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Revised healthcare cost trend assumption | 6.97% | 6.97% | 6.17% | |
Year that rate reaches healthcare cost trend rate | 2032 | |||
Funded status of the plans, end of year | $ 18,143 | $ 18,459 | ||
Other Postretirement Benefits [Member] | Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Revised healthcare cost trend assumption | 4.44% | |||
ERISA Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected company contributions in next fiscal year | 0 | |||
Nonqualified Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected company contributions in next fiscal year | 4,100 | |||
Nonqualified Plan [Member] | Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funded status of the plans, end of year | 27,900 | |||
Nonqualified Plan [Member] | Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funded status of the plans, end of year | $ 16,600 |
Pension And Other Postretirem_4
Pension And Other Postretirement Benefit Plans (Assumptions Used To Compute Net Periodic Benefit Cost And Benefit Obligations) (Details) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates: Benefit cost for plan year | 5% | 3.70% | 3.30% |
Discount rates: Benefit obligation at end of plan year | 5.27% | 5% | 3.70% |
Expected long-term return on plan assets: Benefit cost for plan year | 6.50% | 5.50% | 5.50% |
Salary scale: Benefit cost for plan year | 4% | 4% | 4% |
Salary scale: Benefit obligation at end of plan year | 4% | 4% | 4% |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates: Benefit cost for plan year | 4.90% | 3.60% | 2.90% |
Discount rates: Benefit obligation at end of plan year | 5.17% | 4.90% | 3.60% |
Expected long-term return on plan assets: Benefit cost for plan year | 3% | 3% | 3% |
Salary scale: Benefit cost for plan year | 4% | 4% | 4% |
Salary scale: Benefit obligation at end of plan year | 4% | 4% | 4% |
Healthcare cost trend rate | 6.97% | 6.97% | 6.17% |
Pension And Other Postretirem_5
Pension And Other Postretirement Benefit Plans (Benefit Obligations, Plan Assets, And Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value, beginning of year | $ 221,953 | ||
Plan assets at fair value, end of year | 220,336 | $ 221,953 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 231,685 | 235,540 | |
Projected benefit obligation | 237,626 | 241,399 | $ 277,050 |
Projected benefit obligation, beginning of year | 241,399 | 277,050 | |
Service cost | 5,214 | 6,172 | 6,674 |
Interest cost | 11,566 | 9,670 | 8,754 |
Effect of discount rate change | (5,147) | (31,621) | |
Foreign currency exchange rate changes | (298) | (543) | |
Other | 2,197 | (2,120) | |
Benefit payments | (17,305) | (17,209) | |
Projected benefit obligation, end of year | 237,626 | 241,399 | 277,050 |
Plan assets at fair value, beginning of year | 221,953 | 256,013 | |
Actual return on plan assets | 11,666 | (20,613) | |
Employer contributions | 4,257 | 4,038 | |
Foreign currency exchange rate changes | (235) | (276) | |
Plan assets at fair value, end of year | 220,336 | 221,953 | 256,013 |
Funded status of the plans, end of year | (17,290) | (19,446) | |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 20,077 | 20,716 | 24,957 |
Projected benefit obligation, beginning of year | 20,716 | 24,957 | |
Service cost | 239 | 115 | 170 |
Interest cost | 1,049 | 944 | 950 |
Effect of discount rate change | (255) | (1,906) | |
Foreign currency exchange rate changes | 30 | (145) | |
Other | 589 | (659) | |
Benefit payments | (2,291) | (2,590) | |
Projected benefit obligation, end of year | 20,077 | 20,716 | 24,957 |
Plan assets at fair value, beginning of year | 2,257 | 2,706 | |
Actual return on plan assets | 174 | 73 | |
Employer contributions | 1,794 | 2,068 | |
Foreign currency exchange rate changes | 0 | 0 | |
Plan assets at fair value, end of year | 1,934 | 2,257 | $ 2,706 |
Funded status of the plans, end of year | $ (18,143) | $ (18,459) |
Pension And Other Postretirem_6
Pension And Other Postretirement Benefit Plans (Funded Status In Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets (included in Pension asset) | $ 11,857 | $ 9,984 |
Noncurrent liability (reported as Pensions and other postretirement benefits) | (43,251) | (42,769) |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets (included in Pension asset) | 11,857 | 9,984 |
Current liability (included in Accrued expenses and other current liabilities) | (2,344) | (3,352) |
Noncurrent liability (reported as Pensions and other postretirement benefits) | (26,803) | (26,078) |
Amounts recognized in the consolidated balance sheets | (17,290) | (19,446) |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets (included in Pension asset) | 0 | 0 |
Current liability (included in Accrued expenses and other current liabilities) | (1,695) | (1,768) |
Noncurrent liability (reported as Pensions and other postretirement benefits) | (16,448) | (16,691) |
Amounts recognized in the consolidated balance sheets | $ (18,143) | $ (18,459) |
Pension And Other Postretirem_7
Pension And Other Postretirement Benefit Plans (Additional Information On Funded Status) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Pension Benefits [Member] | ||
For Plans With A Projected Benefit Obligation In Excess Of Plan Assets: | ||
Aggregate projected benefit obligation (PBO) | $ 36,842 | $ 29,430 |
Aggregate fair value of plan assets | 0 | 0 |
For Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets: | ||
Aggregate accumulated benefit obligation (ABO) | 35,640 | 28,487 |
Aggregate fair value of plan assets | 0 | 0 |
Other Postretirement Benefits [Member] | ||
For Plans With A Projected Benefit Obligation In Excess Of Plan Assets: | ||
Aggregate projected benefit obligation (PBO) | 20,078 | 20,716 |
Aggregate fair value of plan assets | $ 1,934 | $ 2,257 |
Pension And Other Postretirem_8
Pension And Other Postretirement Benefit Plans (Components Of Company's Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 5,214 | $ 6,172 | $ 6,674 |
Interest cost | 11,566 | 9,670 | 8,754 |
Expected return on plan assets | (15,504) | (13,630) | (13,562) |
Net amortization and deferral | (659) | 2,038 | (1,679) |
Net periodic benefit cost | 1,935 | 4,250 | 3,545 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 239 | 115 | 170 |
Interest cost | 1,049 | 944 | 950 |
Expected return on plan assets | (63) | (76) | (86) |
Net amortization and deferral | 791 | 737 | 422 |
Net periodic benefit cost | $ 434 | $ 246 | $ 612 |
Pension And Other Postretirem_9
Pension And Other Postretirement Benefit Plans (Recognized In Accumulated Other Comprehensive Income (Loss) On Pretax Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain), beginning of year | $ 64,114 | $ 67,280 | |
Losses (gains) arising during the year | 107 | (98) | |
Amortization included in net periodic benefit cost during the year | (793) | (3,068) | |
Net actuarial loss (gain), end of year | 63,428 | 64,114 | $ 67,280 |
Prior service cost (benefit), beginning of year | (457) | (1,487) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | 692 | 0 | |
Amortization included in net periodic benefit cost during the year | 134 | 1,030 | |
Prior service cost (benefit), end of year | 369 | (457) | (1,487) |
Total amounts in accumulated other comprehensive loss at end of year, before income taxes | 63,797 | 63,657 | |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain), beginning of year | (8,332) | (6,681) | |
Losses (gains) arising during the year | 377 | (2,223) | |
Amortization included in net periodic benefit cost during the year | (786) | (572) | |
Net actuarial loss (gain), end of year | (7,169) | (8,332) | (6,681) |
Prior service cost (benefit), beginning of year | (36) | (201) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | 0 | 0 | |
Amortization included in net periodic benefit cost during the year | 5 | 165 | |
Prior service cost (benefit), end of year | (31) | (36) | $ (201) |
Total amounts in accumulated other comprehensive loss at end of year, before income taxes | $ (7,200) | $ (8,368) |
Pension And Other Postretire_10
Pension And Other Postretirement Benefit Plans (Weighted-Average Target Pension Asset Allocation And Target Ranges By Major Asset Category) (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100% | 100% |
Actual Allocation | 100% | 100% |
Domestic Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 29% | 29% |
Actual Allocation | 26.70% | 27.50% |
Domestic Equity Securities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 19% | 19% |
Domestic Equity Securities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 39% | 39% |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 66% | 66% |
Actual Allocation | 67.30% | 66% |
Fixed Income Securities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 56% | 56% |
Fixed Income Securities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 76% | 76% |
Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 5% | 5% |
Actual Allocation | 6% | 6.50% |
Real Estate Funds [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 0% | 0% |
Real Estate Funds [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 10% | 10% |
Pension And Other Postretire_11
Pension And Other Postretirement Benefit Plans (Estimated Future Benefit Payments) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Pension Benefits [Member] | |
2025 | $ 17,126 |
2026 | 18,141 |
2027 | 23,644 |
2028 | 19,017 |
2029 | 17,345 |
2030 - 2033 | 85,512 |
Other Postretirement Benefits [Member] | |
2025 | 2,100 |
2026 | 1,929 |
2027 | 1,856 |
2028 | 1,774 |
2029 | 1,681 |
2030 - 2033 | $ 7,729 |
Pension And Other Postretire_12
Pension And Other Postretirement Benefit Plans (Fair Values Of Assets Under Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | $ 220,336 | $ 221,953 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 56,243 | 58,745 | |
Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 151,435 | 149,252 | [1] |
Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 12,658 | 13,956 | |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 199,983 | 201,080 | |
Level 1 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 56,243 | 58,745 | |
Level 1 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 143,740 | 142,335 | [1] |
Level 1 [Member] | Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 0 | 0 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 0 | 0 | |
Level 2 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 0 | 0 | |
Level 2 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 0 | 0 | [1] |
Level 2 [Member] | Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 0 | 0 | |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 20,353 | 20,873 | |
Level 3 [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 0 | 0 | |
Level 3 [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | 7,695 | 6,917 | [1] |
Level 3 [Member] | Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments | $ 12,658 | $ 13,956 | |
[1] Includes high yield securities and cash and cash equivalent balances. |
Common And Preferred Stock (Nar
Common And Preferred Stock (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 |
Class of Stock Disclosures [Abstract] | ||||
Common stock, shares authorized | 100,000,000 | |||
Common Stock, Shares, Outstanding | 24,573,408 | 24,555,361 | 24,550,019 | 24,514,867 |
Preferred stock, shares authorized | 5,000,000 | |||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||
Preferred stock, shares outstanding | 0 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 95,000 |
Common And Preferred Stock (Sch
Common And Preferred Stock (Schedule Of Repurchases Of Shares) (Details) - Common Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Class of Stock [Line Items] | |||
Stock Repurchased During Period, Shares | 100,000 | 66,124 | 58,264 |
Cost of shares repurchased (in thousands of dollars) | $ 4,744 | $ 3,448 | $ 3,053 |
Weighted-average cost per share | $ 47.44 | $ 52.12 | $ 52.41 |
Executive Stock Plans And Sto_3
Executive Stock Plans And Stock-Based Compensation (Narrative) (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2024 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 1,250,000 |
Unrecognized compensation expense related to stock-based awards | $ | $ 1.7 |
Unrecognized compensation expense related to stock-based awards, weighted-average period expected to recognized | 7 months 6 days |
Performance Share Awards Psas [Member | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, in years | 3 years |
Performance Share Awards Psas [Member | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of award grant paid | 0% |
Performance Share Awards Psas [Member | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of award grant paid | 150% |
Plans After Fiscal 2020 [Member] | Outside Directors [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, in years | 1 year |
Plans before Fiscal 2022 [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, in years | 5 years |
Plans After Fiscal 2022 [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, in years | 3 years |
Executive Stock Plans And Sto_4
Executive Stock Plans And Stock-Based Compensation (Summary Of RSU, Restricted Stock, And PSA Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2020 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 117,103 | 100,105 | 93,564 | |
Vested, Shares | (109,877) | (67,239) | (86,488) | |
Forfeited, Shares | 0 | 0 | 0 | |
Unvested at end of year, Shares | 389,636 | 382,410 | 349,544 | 342,468 |
Granted, Weighted- Average Grant Date Fair Value | $ 51.90 | $ 60.89 | $ 56.18 | |
Vested, Weighted- Average Grant Date Fair Value | 61.75 | 62.39 | 54.33 | |
Forfeited, Weighted- Average Grant Date Fair Value | 0 | 0 | 0 | |
Unvested at end of year, Weighted- Average Grant Date Fair Value | $ 53.18 | $ 56.03 | $ 55.86 | $ 55.44 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 0 | 0 | 0 | |
Vested, Shares | 0 | 0 | 0 | |
Forfeited, Shares | 0 | 0 | 0 | |
Unvested at end of year, Shares | 11,600 | 11,600 | 11,600 | 11,600 |
Granted, Weighted- Average Grant Date Fair Value | $ 0 | $ 0 | $ 0 | |
Vested, Weighted- Average Grant Date Fair Value | 0 | 0 | 0 | |
Forfeited, Weighted- Average Grant Date Fair Value | 0 | 0 | 0 | |
Unvested at end of year, Weighted- Average Grant Date Fair Value | $ 41.86 | $ 41.86 | $ 41.86 | $ 41.86 |
Performance Share Awards Psas [Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Shares | 65,645 | 48,315 | 48,650 | |
Vested, Shares | (73,963) | (37,040) | (50,242) | |
Forfeited, Shares | (467) | (9,260) | (1,555) | |
Unvested at end of year, Shares | 151,230 | 160,015 | 158,000 | 161,147 |
Granted, Weighted- Average Grant Date Fair Value | $ 43.01 | $ 54.46 | $ 47.95 | |
Vested, Weighted- Average Grant Date Fair Value | 34.45 | 50.16 | 57.12 | |
Forfeited, Weighted- Average Grant Date Fair Value | 34.33 | 50.16 | 57.12 | |
Unvested at end of year, Weighted- Average Grant Date Fair Value | $ 48.22 | $ 44.55 | $ 43.16 | $ 46.20 |
Executive Stock Plans And Sto_5
Executive Stock Plans And Stock-Based Compensation (Stock-Based Compensation Expense And Related Income Tax Benefit Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | |||
Total stock-based compensation expense | $ 12,063 | $ 8,419 | $ 6,186 |
Income tax benefit recorded on stock-based compensation expense | $ 2,713 | $ 1,899 | $ 1,389 |
Commitments And Other Matters (
Commitments And Other Matters (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Commitments And Other Matters [Line Items] | |||
Total amount of advances funded towards tobacco purchase | $ 139,000 | ||
Commitments relating to agricultural materials,capital expenditures | 102,000 | ||
Other contingent liabilities | 500 | ||
Tax Adjustments, Settlements, and Unusual Provisions | 0 | $ (29,236) | $ 0 |
Santa Catarina [Member] | |||
Commitments And Other Matters [Line Items] | |||
Brazil Audit Assessment For Tax, Penalties, And Interest On Recoverable Value Added Tax Credits | 14,000 | ||
Tax Adjustments, Settlements, and Unusual Provisions | 5,000 | ||
Parana [Member] | |||
Commitments And Other Matters [Line Items] | |||
Brazil Audit Assessment For Tax, Penalties, And Interest On Recoverable Value Added Tax Credits | 11,000 | ||
Reduction of Brazil Audit Assessment For Tax, Penalties, And Interest On Recoverable Value Added Tax Credits | 3,000 | ||
Parana [Member] | Minimum [Member] | |||
Commitments And Other Matters [Line Items] | |||
Estimate of possible loss on remaining VAT audit assessment | 0 | ||
Parana [Member] | Maximum [Member] | |||
Commitments And Other Matters [Line Items] | |||
Estimate of possible loss on remaining VAT audit assessment | 3,000 | ||
Next Fiscal Year [Member] | |||
Commitments And Other Matters [Line Items] | |||
Tobacco purchase contracts | 642,000 | ||
After Next Fiscal Year [Member] | |||
Commitments And Other Matters [Line Items] | |||
Tobacco purchase contracts | $ 189,000 |
Operating Segments (Operating R
Operating Segments (Operating Results For The Company's Reportable Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | $ 2,748,573 | $ 2,569,824 | $ 2,103,601 | |
Operating Income | 222,009 | 181,072 | 160,315 | |
Equity in pretax earnings of unconsolidated affiliates | [1] | (756) | (2,383) | (6,095) |
Restructuring and impairment costs | [2] | (3,523) | 0 | (10,457) |
Other income | [3] | 0 | 0 | 2,532 |
Segment Assets | 2,937,239 | 2,639,182 | 2,586,345 | |
Accounts Receivable, after Allowance for Credit Loss | 525,262 | 402,073 | 385,437 | |
Goodwill, net | 213,869 | 213,922 | 213,998 | |
Other intangibles, net | 68,883 | 80,101 | 92,571 | |
Capital Expenditures | 66,013 | 54,674 | 53,203 | |
Depreciation and Amortization | 58,326 | 57,300 | 52,521 | |
Tobacco Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 2,438,775 | 2,258,260 | 1,835,790 | |
Operating Income | 222,352 | 172,889 | 157,754 | |
Restructuring and impairment costs | (1,800) | |||
Segment Assets | 2,451,895 | 2,164,600 | 2,109,845 | |
Accounts Receivable, after Allowance for Credit Loss | 472,357 | 350,014 | 336,638 | |
Goodwill, net | 97,801 | 97,854 | 97,930 | |
Other intangibles, net | 62 | 34 | 57 | |
Capital Expenditures | 35,173 | 38,084 | 34,237 | |
Depreciation and Amortization | 40,267 | 38,650 | 36,272 | |
Ingredients Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 309,798 | 311,564 | 267,811 | |
Operating Income | 3,936 | 10,566 | 16,581 | |
Segment Assets | 485,344 | 474,582 | 476,500 | |
Accounts Receivable, after Allowance for Credit Loss | 52,905 | 52,059 | 48,799 | |
Goodwill, net | 116,068 | 116,068 | 116,068 | |
Other intangibles, net | 68,821 | 80,067 | 92,514 | |
Capital Expenditures | 30,840 | 16,590 | 18,966 | |
Depreciation and Amortization | 18,059 | 18,650 | 16,249 | |
Total Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | $ 226,288 | $ 183,455 | $ 174,335 | |
[1] Equity in pretax earnings of unconsolidated affiliates is included in reportable segment operating income, but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. Other income represents the reversal of the contingent consideration liability associated with the acquisition of FruitSmart. |
Operating Segments (Schedule Of
Operating Segments (Schedule Of Sales And Long-Lived Assets By Country) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | $ 2,748,573 | $ 2,569,824 | $ 2,103,601 |
Long-Lived Assets | 648,632 | 645,185 | 651,687 |
United States | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 547,923 | 530,467 | 495,322 |
Long-Lived Assets | 355,905 | 343,470 | 344,276 |
Belgium | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 552,208 | 395,616 | 283,072 |
China | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 219,979 | 204,139 | 97,826 |
Philippines | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 133,656 | 149,867 | 147,876 |
Indonesia | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 117,019 | 45,089 | 41,738 |
Poland | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 97,723 | 119,629 | 90,270 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 95,350 | 108,844 | 93,057 |
Netherlands | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 42,492 | 51,843 | 45,297 |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 26,438 | 51,847 | 29,514 |
France | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 16,669 | 64,563 | 39,307 |
Brazil | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 139,642 | 134,232 | 136,653 |
Mozambique | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 35,845 | 38,979 | 40,228 |
All other countries | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 899,116 | 847,920 | 740,322 |
Long-Lived Assets | $ 117,240 | $ 128,504 | $ 130,530 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Foreign currency translation: [Abstract] | ||||
Net gain (loss) on foreign currency translation, net of income taxes | $ (1,531) | $ (3,166) | $ (6,367) | |
Pension and other postretirement benefit plan: [Abstract] | ||||
Pension and other postretirement benefit plans, net of income taxes | (1,666) | 3,089 | 5,943 | |
Total accumulated other comprehensive income (loss) at end of period | (81,585) | (77,057) | (84,311) | |
Forward Foreign Currency Exchange Contracts [Member] | ||||
Cash flow hedges: [Abstract] | ||||
hedges, net of income tax | (5,515) | 1,320 | 3,993 | |
Interest Rate Swap [Member] | ||||
Cash flow hedges: [Abstract] | ||||
hedges, net of income tax | 3,235 | 6,113 | 18,620 | |
Accumulated Translation Adjustment [Member] | ||||
Foreign currency translation: [Abstract] | ||||
Balance at beginning of year | (44,233) | (40,965) | (35,135) | |
Net gain (loss) on foreign currency translation, net of income taxes | (1,531) | (3,166) | (6,367) | |
Less: Net loss (gain) on foreign currency translation attributable to noncontrolling interests | 949 | (102) | 537 | |
Other comprehensive income (loss) attributable to Universal Corporation, net of income taxes | (582) | (3,268) | (5,830) | |
Balance at end of period | (44,815) | (44,233) | (40,965) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Forward Foreign Currency Exchange Contracts [Member] | ||||
Cash flow hedges: [Abstract] | ||||
Balance at beginning of year | 4,899 | 3,579 | (414) | |
Net gain (loss) on derivative instruments, net of income taxes | (187) | 2,562 | 6,679 | |
Reclassification of net (gain) loss to earnings | [1] | (5,328) | (1,242) | (2,686) |
hedges, net of income tax | (5,515) | 1,320 | 3,993 | |
Balance at end of period | (616) | 4,899 | 3,579 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | 17 | (1,160) | (2,199) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 1,718 | 389 | 1,115 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Swap [Member] | ||||
Cash flow hedges: [Abstract] | ||||
Balance at beginning of year | 5,253 | (860) | (19,480) | |
Net gain (loss) on derivative instruments, net of income taxes | 11,340 | 7,220 | 12,402 | |
Reclassification of net (gain) loss to earnings | [2] | (8,105) | (1,107) | 6,218 |
hedges, net of income tax | 3,235 | 6,113 | 18,620 | |
Balance at end of period | 8,488 | 5,253 | (860) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | (4,035) | (2,583) | (3,249) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 2,884 | 396 | (1,628) | |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Pension and other postretirement benefit plan: [Abstract] | ||||
Balance at beginning of year | (42,976) | (46,065) | (52,008) | |
Gains arising during period, net of income taxes | [3] | (430) | 1,947 | 2,799 |
Amortization included in earnings, net of income taxes | [4] | (1,236) | 1,142 | 3,144 |
Pension and other postretirement benefit plans, net of income taxes | (1,666) | 3,089 | 5,943 | |
Balance at end of period | (44,642) | (42,976) | (46,065) | |
Taxes on losses (gains) arising during the period | 149 | (370) | (297) | |
Taxes on amortization included in net income | $ 339 | $ (223) | $ (298) | |
[1] Gains (losses) on foreign currency cash flow hedges related to forecast purchases of tobacco and crop input sales are reclassified from accumulated other comprehensive income (loss) to cost of goods sold when the tobacco is sold to customers. See Note 11 for additional information. Gain (loss) on interest rate cash flow hedges is reclassified from accumulated other comprehensive income (loss) to interest expense when the related interest payments are made on the debt for open interest rate swap agreements or as amortized to interest expense over the period to original maturity for terminated swap agreements. See Note 11 for additional information. These items arise from the remeasurement of the assets and liabilities of the Company's defined benefit pension and other postretirement benefit plans. Those remeasurements are made on an annual basis at the end of the fiscal year. See Note 13 for additional information. This accumulated other comprehensive income (loss) component is included in the computation of net periodic benefit cost. See Note 13 for additional information. |
Schedule II - Valuation And Q_2
Schedule II - Valuation And Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Allowance for doubtful accounts [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 1,612 | $ 1,788 | $ 1,252 |
Net Additions (Reversals) Charged to Expense | (1,608) | (221) | (1,004) |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 484 | 397 | 468 |
Balance at End of Period | 2,736 | 1,612 | 1,788 |
Allowance for supplier accounts [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 24,387 | 18,972 | 17,817 |
Net Additions (Reversals) Charged to Expense | (14,090) | (10,584) | (5,988) |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 18,834 | 5,169 | 4,833 |
Balance at End of Period | 19,643 | 24,387 | 18,972 |
Allowance for recoverable taxes [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 21,636 | 21,335 | 19,169 |
Net Additions (Reversals) Charged to Expense | (276) | (376) | (895) |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 15 | 75 | 1,271 |
Balance at End of Period | $ 21,375 | $ 21,636 | $ 21,335 |