Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | ALLIANCE ONE INTERNATIONAL, INC. | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Entity Central Index Key | 939,930 | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding (in shares) | 8,923,251 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||
Sales and other operating revenues | $ 261,101 | $ 266,282 |
Cost of goods and services sold | 227,050 | 236,884 |
Gross profit | 34,051 | 29,398 |
Selling, general and administrative expenses | 38,805 | 29,914 |
Other income (expense) | (481) | 560 |
Restructuring and asset impairment charges | 41 | 2,948 |
Operating loss | (5,276) | (2,904) |
Interest expense (includes debt amortization of $3,110 and $2,244 for the three months in 2016 and 2015, respectively) | 30,602 | 27,773 |
Interest income | 1,838 | 1,374 |
Loss before income taxes and other items | (34,040) | (29,303) |
Income tax benefit | (3,830) | (3,214) |
Equity in net income (loss) of investee companies | (1,329) | 132 |
Net loss | (31,539) | (25,957) |
Less: Net loss attributable to noncontrolling interests | (34) | (7) |
Net loss attributable to Alliance One International, Inc. | $ (31,505) | $ (25,950) |
Loss per share: | ||
Basic (usd per share) | $ (3.54) | $ (2.93) |
Diluted (usd per share) | $ (3.54) | $ (2.93) |
Weighted average number of shares outstanding: | ||
Basic (in shares) | 8,904 | 8,862 |
Diluted (in shares) | 8,904 | 8,862 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||
Debt amortization | $ 3,110 | $ 2,244 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (31,539) | $ (25,957) |
Other comprehensive income (loss), net of tax: | ||
Currency translation adjustment | (2,274) | 2,307 |
Amount reclassified to liability | 0 | 225 |
Amounts reclassified to income | 461 | 1,000 |
Defined benefit plan adjustment | 461 | 1,225 |
Total other comprehensive income (loss), net of tax | (1,813) | 3,532 |
Total comprehensive loss | (33,352) | (22,425) |
Comprehensive loss attributable to noncontrolling interests | (34) | (7) |
Comprehensive loss attributable to Alliance One International, Inc. | $ (33,318) | $ (22,418) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 |
Current assets | |||
Cash and cash equivalents | $ 158,211 | $ 199,720 | $ 163,942 |
Trade receivables, net | 125,682 | 303,907 | 162,074 |
Other receivables | 80,669 | 97,101 | 104,510 |
Accounts receivable, related parties | 9,266 | 1,920 | 7,732 |
Inventories | 938,808 | 791,340 | 884,515 |
Advances to tobacco suppliers | 57,906 | 41,837 | 47,273 |
Recoverable income taxes | 9,413 | 13,421 | 4,029 |
Current deferred taxes, net | 0 | 0 | 22,824 |
Prepaid expenses | 24,612 | 20,016 | 24,179 |
Other current assets | 21,356 | 21,096 | 14,795 |
Total current assets | 1,425,923 | 1,490,358 | 1,435,873 |
Other assets | |||
Investments in unconsolidated affiliates | 56,637 | 58,259 | 54,508 |
Goodwill | 16,463 | 16,463 | 2,794 |
Other intangible assets | 49,432 | 50,571 | 28,200 |
Long-term recoverable income taxes | 8,941 | 8,686 | 7,252 |
Deferred income taxes, net | 47,112 | 38,773 | 30,899 |
Other deferred charges | 4,683 | 3,934 | 7,024 |
Other noncurrent assets | 37,204 | 23,629 | 27,141 |
Total other assets | 220,472 | 200,315 | 157,818 |
Property, plant and equipment, net | 272,303 | 277,525 | 235,327 |
Total assets | 1,918,698 | 1,968,198 | 1,829,018 |
Current liabilities | |||
Notes payable to banks | 458,165 | 475,989 | 401,089 |
Accounts payable | 77,624 | 81,649 | 78,147 |
Due to related parties | 15,496 | 20,490 | 22,920 |
Advances from customers | 9,509 | 9,895 | 20,042 |
Accrued expenses and other current liabilities | 91,491 | 74,425 | 95,928 |
Income taxes | 6,058 | 12,022 | 9,470 |
Long-term debt current | 200,355 | 356 | 32,894 |
Total current liabilities | 858,698 | 674,826 | 660,490 |
Long-term debt | 710,713 | 910,214 | 882,787 |
Deferred income taxes | 16,936 | 16,924 | 1,478 |
Liability for unrecognized tax benefits | 9,643 | 9,809 | 10,522 |
Pension, postretirement and other long-term liabilities | 81,008 | 81,753 | 101,109 |
Total noncurrent liabilities | 818,300 | 1,018,700 | 995,896 |
Commitments and contingencies | |||
Common Stock—no par value: | |||
Authorized shares (in shares) | 250,000,000 | 250,000,000 | 250,000,000 |
Issued shares (in shares) | 9,709,000 | 9,685,000 | 9,668,000 |
Issued shares | $ 471,210 | $ 470,830 | $ 469,357 |
Retained deficit | (177,361) | (145,856) | (237,338) |
Accumulated other comprehensive loss | (55,661) | (53,848) | (62,854) |
Total stockholders’ equity of Alliance One International, Inc. | 238,188 | 271,126 | 169,165 |
Noncontrolling interests | 3,512 | 3,546 | 3,467 |
Total equity | 241,700 | 274,672 | 172,632 |
Liabilities and Equity | $ 1,918,698 | $ 1,968,198 | $ 1,829,018 |
CONDENSED STATEMENTS OF CONSOLI
CONDENSED STATEMENTS OF CONSOLIDATED STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Retained Deficit | Currency Translation Adjustment | Pensions, Net of Tax | Noncontrolling Interests |
Beginning balance at Mar. 31, 2015 | $ 194,064 | $ 468,564 | $ (211,388) | $ (14,154) | $ (52,232) | $ 3,274 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (25,957) | (25,950) | (7) | |||
Acquisition of noncontrolling interest | 200 | 200 | ||||
Stock-based compensation | 793 | 793 | ||||
Other comprehensive income, net of tax | 3,532 | 2,307 | 1,225 | |||
Ending balance at Jun. 30, 2015 | 172,632 | 469,357 | (237,338) | (11,847) | (51,007) | 3,467 |
Beginning balance at Mar. 31, 2016 | 274,672 | 470,830 | (145,856) | (14,046) | (39,802) | 3,546 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (31,539) | (31,505) | (34) | |||
Restricted stock surrendered | (12) | (12) | ||||
Stock-based compensation | 392 | 392 | ||||
Other comprehensive income, net of tax | (1,813) | (2,274) | 461 | |||
Ending balance at Jun. 30, 2016 | $ 241,700 | $ 471,210 | $ (177,361) | $ (16,320) | $ (39,341) | $ 3,512 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities | ||
Net loss | $ (31,539) | $ (25,957) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization | 8,752 | 7,064 |
Debt amortization/interest | 3,500 | 2,596 |
(Gain) loss on foreign currency transactions | (4,310) | 1,143 |
Restructuring and asset impairment charges | 41 | 2,948 |
Gain on sale of property, plant and equipment | (215) | (246) |
Equity in net (income) loss of unconsolidated affiliates, net of dividends | 1,486 | (8) |
Stock-based compensation | 437 | 1,104 |
Changes in operating assets and liabilities, net | 6,341 | (222,717) |
Other, net | (335) | 20 |
Net cash used by operating activities | (15,842) | (234,053) |
Investing activities | ||
Purchases of property, plant and equipment | (4,058) | (6,179) |
Proceeds from sale of property, plant and equipment | 268 | 446 |
Restricted cash | (457) | (577) |
Other, net | 69 | 8 |
Net cash used by investing activities | (4,178) | (6,302) |
Financing activities | ||
Net proceeds (repayment) from short-term borrowings | (14,936) | 79,440 |
Proceeds from long-term borrowings | 200,035 | 185,000 |
Repayment of long-term borrowings | (200,355) | (242) |
Debt issuance cost | (6,428) | (3,847) |
Other, net | 0 | 200 |
Net cash provided (used) by financing activities | (21,684) | 260,551 |
Effect of exchange rate changes on cash | 195 | (103) |
Increase (decrease) in cash and cash equivalents | (41,509) | 20,093 |
Cash and cash equivalents at beginning of period | 199,720 | 143,849 |
Cash and cash equivalents at end of period | 158,211 | 163,942 |
Other information: | ||
Cash paid for income taxes | 3,749 | 6,177 |
Cash paid for interest | 11,292 | 10,233 |
Cash received from interest | $ (1,838) | $ (1,370) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Because of the seasonal nature of the Company’s business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of financial position, results of operation and cash flows at the dates and for the periods presented have been included. The unaudited information included in this Form 10-Q should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016 . In fiscal 2006, the Company deconsolidated its Zimbabwe subsidiary, Mashonaland Tobacco Company LTD ("MTC") in accordance with accounting requirements that apply to foreign subsidiaries that are subject to foreign exchange controls and other government restrictions that casted significant doubt on the parent's ability to control the subsidiary. As of March 31, 2016, the Company determined that significant doubt about its ability to control MTC was eliminated due to changes in the political landscape and the recent issuance of clarifications to the indigenization laws within Zimbabwe. As a result, the Company reconsolidated MTC on March 31, 2016. Beginning April 1, 2016, the financial results of MTC are included in the consolidated statements of operations, consolidated balance sheet and consolidated statement of cash flows. Prior to March 31, 2016, the Company accounted for its investment in MTC on the cost method and had been reporting it in Investments in Unconsolidated Affiliates in the Consolidated Balance Sheets since March 31, 2006 and had written its investment in MTC down to zero in fiscal 2007. At June 30, 2015, the Company guaranteed an amount outstanding to MTC of $51,349 . Restatement of Previously Reported Financial Information During the year ended March 31, 2016, the Company identified certain immaterial errors in previously issued financial statements related to inventory, cost of goods sold and income tax. In addition, the Company corrected the classification of amounts between line items on the Consolidated Balance Sheets included in the previously issued financial statements. The correction of these immaterial errors and reclassification between line items at March 31, 2015 also impact the previously reported balances at June 30, 2015. For the three months ended June 30, 2015, inventory was adjusted by $1,380 , recoverable income tax was adjusted by $1,824 and retained earnings was adjusted by $3,204 . In addition, reclassifications of $11,808 between "Accounts receivable, related parties" and "Pension, postretirement and other long-term liabilities" were made. The Company has evaluated the effect of the above misstatements on its condensed consolidated financial statements for the three months ended June 30, 2015 in accordance with the guidance provided by SEC Staff Accounting Bulletin No. 108, codified as SAB Topic 1.N, “Considering the Effects of Prior Year Misstatement When Quantifying Misstatements in the Current Year Financial Statements,” and concluded that the three months ended June 30, 2015 were not materially misstated. See Note 21 "Restatement of Previously Reported Financial Information" to the "Notes to Condensed Consolidated Financial Statements" for the impact of this change on selected financial amounts. Taxes Collected from Customers Certain subsidiaries are subject to value added taxes on local sales. These amounts have been included in sales and cost of sales and were $6,185 and $5,675 for the three months ended June 30, 2016 and 2015 , respectively. Other Deferred Charges Other deferred charges are primarily deferred financing costs that are amortized over the life of the debt. New Accounting Standards Recent Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued new accounting guidance that changed the presentation of debt issuance costs in financial statements. The primary objective of this accounting guidance was to present these costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is still reported as interest expense. The Company adopted this guidance on April 1, 2016 on a retrospective basis. On the condensed consolidated balance sheets, $11,272 and $9,875 were reclassified from Other Deferred Charges to Long-Term Debt at June 30, 2015 and March 31, 2016, respectively. See Note 21 "Restatement of Previously Reported Financial Information" to the "Notes to Condensed Consolidated Financial Statements." 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued) Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued new accounting guidance that outlines a single comprehensive model to use in accounting for revenue from contracts with customers. The primary objective of this accounting guidance is to recognize revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. This accounting guidance, as amended, is effective for the Company on April 1, 2018. The Company is currently evaluating the impact of this new guidance. In August 2014, the FASB issued new accounting guidance on determining when and how to disclose going concern uncertainties in the financial statements. The primary objective of this accounting guidance is for management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. This accounting guidance is effective for the Company on March 31, 2017. The Company is currently evaluating the impact of this new guidance. In July 2015, the FASB issued new accounting guidance that simplifies the measurement of inventory. Under the previous accounting guidance, an entity measured inventory at the lower of cost or market with market defined as one of three different measures. The primary objective of this accounting guidance is to require a single measurement of inventory at the lower of cost and net realizable value. This accounting guidance is effective for the Company on April 1, 2017. The Company is currently evaluating the impact of this new guidance. In January 2016, the FASB issued new accounting guidance regarding certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The primary objective of this accounting guidance is to provide users of financial statements with more decision-useful information. The accounting guidance will be effective for the Company on April 1, 2018. The Company is currently evaluating the impact of this guidance. In February 2016, the FASB issued new accounting guidance regarding the treatment of leases. The primary objective of this accounting guidance is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This accounting guidance will be effective for the Company April 1, 2020. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued new accounting guidance for simplifying the treatment of employee share-based payments. The primary objective is improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of information provided to users of financial statements. This accounting guidance will be effective for the Company on April 1, 2017. The Company is currently evaluating the impact of this new guidance. In June 2016, the FASB issued new accounting guidance on the measurement of credit losses on financial instruments. The primary objective is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. This accounting guidance will be effective for the Company on April 1, 2020. The Company is currently evaluating the impact of this new guidance. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Accounting for Uncertainty in Income Taxes As of June 30, 2016 , the Company’s unrecognized tax benefits totaled $16,462 , all of which would impact the Company’s effective tax rate if recognized. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. As of June 30, 2016 , accrued interest and penalties totaled $1,342 and $842 respectively. The Company expects to continue accruing interest expense related to the unrecognized tax benefits described above. Additionally, the Company may be subject to fluctuations in the unrecognized tax liability due to currency exchange rate movements. The Company does not foresee any reasonably possible changes in the unrecognized tax benefits in the next twelve months but acknowledges circumstances can change due to unexpected developments in the law. In certain jurisdictions, tax authorities have challenged positions that the Company has taken that resulted in recognizing benefits that are material to its financial statements. The Company believes it is more likely than not that it will prevail in these situations and accordingly has not recorded liabilities for these positions. The Company expects the challenged positions to be settled at a time greater than twelve months from its balance sheet date. The Company and its subsidiaries file a U.S. federal consolidated income tax return as well as returns in several U.S. states and a number of foreign jurisdictions. As of June 30, 2016 , the Company’s earliest open tax year for U.S. federal income tax purposes is its fiscal year ended March 31, 2013; however, the Company's net operating loss carryovers from prior periods remain subject to adjustment. Open tax years in state and foreign jurisdictions generally range from three to six years. 2. INCOME TAXES (continued) Provision for the Three Months Ended June 30, 2016 The effective tax rate used for the three months ended June 30, 2016 was 11.3% compared to 11.0% for the three months ended June 30, 2015 . The effective tax rates for these periods are based on the current estimate of full year results including the effect of taxes related to discrete events which are recorded in the interim period in which they occur. The difference in the effective tax rate in one year compared to another is the result of many factors that include, but are not limited to, differences in forecasted income for the respective years, differences in year-to-date income for the periods, certain losses for which no tax benefit is recorded; and, differences between discrete items recognized for the periods that include changes in valuation allowances, net exchanges losses on income tax accounts and net exchange gains related to liabilities for unrecognized tax benefits. For the three months ended June 30, 2016 , the Company recorded a discrete event adjustment benefit of $3,474 , bringing the effective tax rate estimated for the three months of 1.1% to 11.3% . This discrete event adjustment benefit relates primarily to net exchange losses on income tax accounts and net exchange gains related to liabilities for unrecognized tax benefits. For the three months ended June 30, 2015 , the Company recorded a discrete event adjustment benefit of $1,762 , bringing the effective tax rate estimated for the three months of 5.0% to 11.0% . This discrete event adjustment benefit relates primarily to net exchange losses on income tax accounts and net exchange gains related to liabilities for unrecognized tax benefits. The significant difference in the estimated effective tax rate for the three months ended June 30, 2016 from the U.S. federal statutory rate is primarily due to net exchange losses on income tax accounts, foreign income tax rates lower than the U.S. rate and certain losses for which no benefit is currently recorded. |
Guarantees
Guarantees | 3 Months Ended |
Jun. 30, 2016 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES The Company and certain of its foreign subsidiaries guarantee bank loans to suppliers to finance their crops. Under longer-term arrangements, the Company may also guarantee financing on suppliers’ construction of curing barns or other tobacco production assets. Guaranteed loans are generally repaid concurrent with the delivery of tobacco to the Company. The Company is obligated to repay any guaranteed loan should the supplier default. If default occurs, the Company has recourse against the supplier. The Company also guarantees bank loans of certain unconsolidated subsidiaries in Asia and Brazil. The following table summarizes amounts guaranteed and the fair value of those guarantees: June 30, 2016 June 30, 2015 March 31, 2016 Amounts guaranteed (not to exceed) $ 229,486 $ 276,566 $ 210,703 Amounts outstanding under guarantee 111,287 165,222 107,615 Fair value of guarantees 5,891 7,723 7,350 Of the guarantees outstanding at June 30, 2016 , all expire within one year. The fair value of guarantees is recorded in Accrued Expenses and Other Current Liabilities in the Condensed Consolidated Balance Sheets and included in crop costs except for the joint venture in Brazil which is included in Accounts Receivable, Related Parties. In Brazil, certain suppliers obtain government subsidized rural credit financing from local banks that is guaranteed by the Company. The Company withholds amounts owed to suppliers related to the rural credit financing of the supplier upon delivery of tobacco to the Company. The Company remits payments to the local banks on behalf of the guaranteed suppliers. Terms of rural credit financing are such that repayment is due to local banks based on contractual due dates. As of June 30, 2016 and 2015 and March 31, 2016 , respectively, the Company had balances of $13,127 , $11,212 , and $16,699 that were due to local banks on behalf of suppliers. These amounts are included in Accounts Payable in the Condensed Consolidated Balance Sheets. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 3 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ASSET IMPAIRMENT CHARGES | RESTRUCTURING AND ASSET IMPAIRMENT CHARGES During the quarter ended March 31, 2015, the Company announced the first phase of a global restructuring plan focusing on efficiency and cost improvements. The Company reviewed origin and corporate operations and initiatives were implemented to increase operational efficiency and effectiveness. These initiatives continue to occur as the Company restructures certain operations not meeting strategic business objectives and performance metrics. During the three months ended June 30, 2015, the Company recorded $375 of additional employee severance charges and $2,573 of asset impairment charges in connection with the restructuring of certain operations primarily in Africa. The asset impairment charges are for unrecoverable tobacco supplier advances and tobacco production property and equipment due to exiting and redefining the Company's position in certain African markets. The following table summarizes the restructuring charges recorded in the Company’s reporting segments during the three months ended June 30, 2016 and 2015 , respectively: Three Months Ended June 30, Restructuring and Asset Impairment Charges 2016 2015 Employee separation and other cash charges: Beginning balance $ 398 $ 8,087 Period charges: Severance charges 7 375 Other cash charges 34 — Total period charges 41 375 Payments through June 30 (340 ) (1,246 ) Ending balance June 30 $ 99 $ 7,216 Asset impairment and other non-cash charges $ — $ 2,573 Total restructuring charges for the period $ 41 $ 2,948 The following table summarizes the employee separations and other cash charges recorded in the Company's North America and Other Regions segment during the three months ended June 30, 2016 and 2015 : Three Months Ended June 30, Employee Separation and Other Cash Charges 2016 2015 Beginning balance: $ 398 $ 8,087 North America — — Other regions 398 8,087 Period charges: $ 41 $ 375 North America — — Other regions 41 375 Payments through June 30 $ (340 ) $ (1,246 ) North America — — Other regions (340 ) (1,246 ) Ending balance June 30 $ 99 $ 7,216 North America — — Other regions 99 7,216 |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLES | GOODWILL AND INTANGIBLES Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill is not subject to amortization, but rather is tested for impairment annually or whenever events and circumstances indicate that an impairment may have occurred. The Company has chosen the first day of the last quarter of its fiscal year as the date to perform its annual goodwill impairment test. The Company has no intangible assets with indefinite useful lives. It does have intangible assets which are amortized. The following table summarizes the changes in the Company’s goodwill and other intangibles for the periods provided below: Amortizable Intangibles Goodwill (1) Customer Production Internally Total Weighted average remaining useful 12.75 4.50 — March 31, 2015 balance Gross carrying amount $ 2,794 $ 33,700 $ 14,893 $ 18,502 $ 69,889 Accumulated amortization — (16,639 ) (5,786 ) (15,573 ) (37,998 ) Net March 31, 2015 2,794 17,061 9,107 2,929 31,891 Amortization expense — (421 ) (270 ) (206 ) (897 ) Net June 30, 2015 2,794 16,640 8,837 2,723 30,994 Additions 13,669 24,830 — — 38,499 Amortization expense — (1,264 ) (555 ) (640 ) (2,459 ) Net March 31, 2016 16,463 40,206 8,282 2,083 67,034 Amortization expense — (836 ) (110 ) (193 ) (1,139 ) Net June 30, 2016 16,463 39,370 8,172 1,890 65,895 (1) Goodwill of $2,794 relates to the North America segment and $13,669 relates to the Other Regions segment. The following table summarizes the estimated future intangible asset amortization expense: For Fiscal Customer Production Internally Total July 1, 2016 through March 31, 2017 $ 2,504 $ 1,172 $ 655 $ 4,331 2018 3,340 1,405 620 5,365 2019 3,340 1,405 367 5,112 2020 3,340 1,397 248 4,985 2021 3,340 1,397 — 4,737 Later 23,506 1,396 — 24,902 $ 39,370 $ 8,172 $ 1,890 $ 49,432 * Estimated amortization expense for the internally developed software is based on costs accumulated as of June 30, 2016 . These estimates will change as new costs are incurred and until the software is placed into service in all locations. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Jun. 30, 2016 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The Company holds variable interests in seven joint ventures that are accounted for under the equity method of accounting. These joint ventures primarily procure or process inventory on behalf of the Company and the other joint venture partners. The variable interests relate to equity investments and advances made by the Company to the joint ventures. In addition, the Company also guarantees two of its joint venture’s borrowings which also represents a variable interest in those joint ventures. The Company is not the primary beneficiary, as it does not have the power to direct the activities that most significantly impact the economic performance of the entities as a result of the entities’ management and board of directors' structure. Therefore, these entities are not consolidated. At June 30, 2016 and 2015 , and March 31, 2016 , the Company’s investment in these joint ventures was $55,620 , $53,491 , and $57,243 , respectively and is classified as Investments in Unconsolidated Affiliates in the Condensed Consolidated Balance Sheets. The Company’s advances to these joint ventures at June 30, 2016 and 2015 , and March 31, 2016 , respectively were $9,266 , $3,796 and $ 1,920 and are classified as Accounts Receivable, Related Parties in the Condensed Consolidated Balance Sheets. The Company guaranteed an amount to two joint ventures not to exceed $107,009 , $111,622 and $100,238 at June 30, 2016 and 2015 , and March 31, 2016 , respectively. The investments, advances and guarantees in these joint ventures represent the Company’s maximum exposure to loss. |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company purchases, processes, sells and stores leaf tobacco. Tobacco is purchased in more than 35 countries and shipped to approximately 90 countries. The sales, logistics and billing functions of the Company are primarily concentrated in service centers outside of the producing areas to facilitate access to its major customers. Within certain quality and grade constraints, tobacco is fungible and, subject to these constraints, customers may choose to fulfill their needs from any of the areas where the Company purchases tobacco. Selling, logistics, billing, and administrative overhead, including depreciation, which originates primarily from the Company’s corporate and sales offices, are allocated to the segments based upon segment operating income. The Company reviews performance data from the purchase of the product or the service provided through sale based on the source of the product or service and all intercompany transactions are allocated to the operating segment that either purchases or processes the tobacco. The following table presents the summary segment information for the three months ended June 30, 2016 and 2015 : Three Months Ended June 30, 2016 2015 Sales and other operating revenues: North America $ 49,938 $ 30,300 Other regions 211,163 235,982 Total revenue $ 261,101 $ 266,282 Operating income (loss): North America $ (978 ) $ 871 Other regions (4,298 ) (3,775 ) Total operating loss (5,276 ) (2,904 ) Interest expense 30,602 27,773 Interest income 1,838 1,374 Loss before income taxes and other items $ (34,040 ) $ (29,303 ) Analysis of Segment Assets June 30, 2016 June 30, 2015 March 31, 2016 Segment assets: North America $ 316,215 $ 324,118 $ 338,833 Other regions 1,602,483 1,504,900 1,629,365 Total assets $ 1,918,698 $ 1,829,018 $ 1,968,198 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The weighted average number of common shares outstanding is reported as the weighted average of the total shares of common stock outstanding net of shares of common stock held by a wholly owned subsidiary. Shares of common stock owned by the subsidiary were 785 at June 30, 2016 and 2015 . This subsidiary waives its right to receive dividends and it does not have the right to vote. Certain potentially dilutive options were not included in the computation of earnings per diluted share because their exercise prices were greater than the average market price of the shares of common stock during the period and their effect would be antidilutive. These shares totaled 469 at a weighted average exercise price of $60.70 per share at June 30, 2016 and 656 at a weighted average exercise price of $60.39 per share at June 30, 2015 . The following table summarizes the computation of earnings per share for the three months ended June 30, 2016 and 2015 , respectively. Three Months Ended June 30, (in thousands, except per share data) 2016 2015 BASIC LOSS Net loss attributable to Alliance One International, Inc. $ (31,505 ) $ (25,950 ) SHARES Weighted average number of shares outstanding 8,904 8,862 BASIC LOSS PER SHARE $ (3.54 ) $ (2.93 ) DILUTED LOSS Net loss attributable to Alliance One International, Inc. $ (31,505 ) $ (25,950 ) SHARES Weighted average number of common shares outstanding 8,904 8,862 Plus: Restricted shares issued and shares applicable to shares assumed to be purchased from proceeds at average market price — * — * Adjusted weighted average number of common shares outstanding 8,904 8,862 DILUTED LOSS PER SHARE $ (3.54 ) $ (2.93 ) * All outstanding restricted shares and shares applicable to stock options and restricted stock units are excluded because their inclusion would have an antidilutive effect on the loss per share. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company recorded stock-based compensation expense related to stock-based awards granted under its various employee and non-employee stock incentive plans of $437 and $1,104 for the three months ended June 30, 2016 and 2015 , respectively, of which $45 and $291 , respectively were with respect to stock-based awards payable in cash. The Company’s shareholders approved amendments to the 2007 Incentive Plan (the “2007 Plan”) at its annual meetings of shareholders held on August 11, 2011 and August 6, 2009. The 2007 Plan is an omnibus plan that provides the flexibility to grant a variety of equity awards including stock options, stock appreciation rights, stock awards, stock units, performance awards and incentive awards to officers, directors and employees of the Company. During the three months ended June 30, 2016 and 2015 , respectively, the Company made the following stock-based compensation awards: 9. STOCK-BASED COMPENSATION (continued) Three Months Ended June 30, (in thousands, except grant date fair value) 2016 2015 Restricted Stock Number Granted 6 6 Grant Date Fair Value $ 15.40 $ 23.91 Restricted stock consists of shares issued to non-employee directors of the Company which are not subject to a minimum vesting period. |
Contingencies and Other Informa
Contingencies and Other Information | 3 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND OTHER INFORMATION | CONTINGENCIES AND OTHER INFORMATION Non-Income Tax The government in the Brazilian State of Parana (“Parana”) issued a tax assessment on October 26, 2007 with respect to local intrastate trade tax credits that result primarily from tobacco transferred between states within Brazil. The assessment for intrastate trade tax credits taken is $4,104 and the total assessment including penalties and interest at June 30, 2016 is $12,735 . The Company believes it has properly complied with Brazilian law and will contest any assessment through the judicial process. Should the Company lose in the judicial process, the loss of the intrastate trade tax credits would have a material impact on the financial statements of the Company. The Company also has local intrastate trade tax credits in the Brazilian State of Santa Catarina. This jurisdiction permits the sale or transfer of excess credits to third parties, however approval must be obtained from the tax authorities. The Company has an agreement with the state government regarding the amounts and timing of credits that can be sold. The tax credits have a carrying value of $3,627 at June 30, 2016 , which is net of impairment charges based on management’s expectations about future realization. The intrastate trade tax credits will continue to be monitored for impairment in future periods based on market conditions and the Company’s ability to use or sell the tax credits. In 1969, the Brazilian government created a tax credit program that allowed companies to earn IPI tax credits (“IPI credits”) based on the value of their exports. The government began to phase out this program in 1979, which resulted in numerous lawsuits between taxpayers and the Brazilian government. The Company has a long legal history with respect to credits it earned while the IPI credit program was in effect. In 2001, the Company won a claim related to certain IPI credits it earned between 1983 and 1990. The Brazilian government appealed this decision and numerous rulings and appeals were rendered on behalf of both the government and the Company from 2001 through 2013. Because of this favorable ruling, the Company began to use these earned IPI credits to offset federal taxes in 2004 and 2005, until it received a Judicial Order to suspend the IPI offsetting in 2005. The value of the federal taxes offset in 2004 and 2005 was $24,142 and the Company established a reserve on these credits at the time of offsetting as they were not yet realizable due to the legal uncertainty that existed. Specifically, the Company extinguished other federal tax liabilities using IPI credits and recorded a liability in Pension, Postretirement and Other Long-Term Liabilities to reflect that the credits were not realizable at that time due to the prevalent legal uncertainty. On March 7, 2013, the Brazilian Supreme Court rendered a final decision in favor of the Company that recognized the validity of the IPI credits and secured the Company's right to benefit from the IPI credits earned from March 1983 to October 1990. This final decision expressly stated the Company has the right to the IPI credits. The Company estimated the total amount of the IPI credits to be approximately $94,316 at March 31, 2013. Since the March 2013 ruling definitively (without the government's ability to appeal) granted the Company the ownership of the IPI credits generated between 1983 and 1990 the Company believed the amount of IPI credits that were used to offset other federal taxes in 2004 and 2005 were realizable beyond a reasonable doubt. Accordingly, and at March 31, 2013, the Company recorded the $24,142 IPI credits it realized in the Statements of Consolidated Operations in Other Income. No further benefit has been recognized pending the outcome of the judicial procedure to ascertain the final amount as those amounts have not yet been realized. 10. CONTINGENCIES AND OTHER INFORMATION (continued) Other Mindo, S.r.l., the purchaser in 2004 of the Company's Italian subsidiary Dimon Italia, S.r.l., asserted claims against a subsidiary of the Company arising out of that sale transaction in an action filed before the Court of Rome on April 12, 2007. The claim involved a guaranty letter issued by a consolidated subsidiary of the Company in connection with the sale transaction , and sought the recovery of €7,400 plus interest and costs. On November 11, 2013, the court issued its judgment in favor of the Company’s subsidiary, rejecting the claims asserted by Mindo, S.r.l., and awarding the Company’s subsidiary legal costs of €48 . On December 23, 2014, Mindo, S.r.l. appealed the judgment of the Court of Rome to the Court of Appeal of Rome. A hearing before the Court of Appeal of Rome was held on June 12, 2015, which was adjourned pending a further hearing set for February 2018. The outcome of, and timing of a decision on, the appeal are uncertain and therefore no amounts have been recorded. In addition to the above-mentioned matter, certain of the Company’s subsidiaries are involved in other litigation or legal matters incidental to their business activities, including tax matters. While the outcome of these matters cannot be predicted with certainty, the Company is vigorously defending them and does not currently expect that any of them will have a material adverse effect on its business or financial position. However, should one or more of these matters be resolved in a manner adverse to its current expectation, the effect on the Company’s results of operations for a particular fiscal reporting period could be material. In accordance with generally accepted accounting principles, the Company records all known asset retirement obligations (“ARO”) for which the liability can be reasonably estimated. Currently, it has identified an ARO associated with one of its facilities that requires it to restore the land to its initial condition upon vacating the facility. The Company has not recognized a liability under generally accepted accounting principles for this ARO because the fair value of restoring the land at this site cannot be reasonably estimated since the settlement date is unknown at this time. The settlement date is unknown because the land restoration is not required until title is returned to the government, and the Company has no current or future plans to return the title. The Company will recognize a liability in the period in which sufficient information is available to reasonably estimate its fair value. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 3 Months Ended |
Jun. 30, 2016 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
PENSION AND POSTRETIREMENT BENEFITS | PENSION AND POSTRETIREMENT BENEFITS The Company has multiple benefit plans at several locations. The Company has a defined benefit plan that provides retirement benefits for substantially all U.S. salaried personnel based on years of service rendered, age and compensation. The Company also maintains various other Excess Benefit and Supplemental Plans that provide additional benefits to (1) certain individuals whose compensation and the resulting benefits that would have actually been paid are limited by regulations imposed by the Internal Revenue Code and (2) certain individuals in key positions. The Company funds these plans in amounts consistent with the funding requirements of federal law and regulations. Additional non-U.S. defined benefit plans sponsored by certain subsidiaries cover certain full-time employees located in Germany, Turkey, and the United Kingdom. 13. PENSION AND POSTRETIREMENT BENEFITS (continued) Components of Net Periodic Benefit Cost Net periodic pension cost for continuing operations consisted of the following: Three Months Ended June 30, 2016 2015 Service cost $ 120 $ 502 Interest expense 1,176 1,462 Expected return on plan assets (1,403 ) (1,554 ) Amortization of prior service cost 10 42 Actuarial loss 524 849 Net periodic pension cost $ 427 $ 1,301 Employer Contributions The Company’s investment objectives are to generate consistent total investment return to pay anticipated plan benefits, while minimizing long-term costs. Financial objectives underlying this policy include maintaining plan contributions at a reasonable level relative to benefits provided and assuring that unfunded obligations do not grow to a level to adversely affect the Company’s financial health. For the three months ended June 30, 2016 , contributions of $1,503 were made to pension plans for fiscal 2017. Additional contributions to pension plans of approximately $4,957 are expected during the remainder of fiscal 2017. However, this amount is subject to change, due primarily to asset performance significantly above or below the assumed long-term rate of return on pension assets and significant changes in interest rates. Postretirement Health and Life Insurance Benefits The Company also provides certain health and life insurance benefits to retired employees, and their eligible dependents, who meet specified age and service requirements. As of June 30, 2016 , contributions of $83 were made to the plans for fiscal 2017. Additional contributions of $291 to the plans are expected during the rest of fiscal 2017. The Company retains the right, subject to existing agreements, to modify or eliminate the postretirement medical benefits. Components of Net Periodic Benefit Cost Net periodic benefit cost for postretirement health and life insurance benefit plans consisted of the following: Three Months Ended June 30, 2016 2015 Service cost $ 3 $ 10 Interest expense 67 111 Amortization of prior service cost (177 ) (3 ) Actuarial loss 104 112 Net periodic pension cost (benefit) $ (3 ) $ 230 |
Debt Arrangements
Debt Arrangements | 3 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
DEBT ARRANGEMENTS | DEBT ARRANGEMENTS At June 30, 2016 , $200,000 was outstanding under the senior secured revolving credit facility. The Company continuously monitors its compliance with the covenants of its senior secured revolving credit facility and its senior notes. While the Company anticipates it will be in compliance in fiscal 2017, unanticipated changes in market conditions or other factors could adversely affect the Company’s business and future debt covenant compliance thereunder. In such a circumstance, the Company may not be able to maintain compliance with the covenants, which would cause a default under the credit facility. A default, if not waived and/or amended, would prevent the Company from taking certain actions, such as incurring additional debt, paying dividends, or redeeming senior notes or subordinated debt. A default also could result in a default or acceleration of other indebtedness with cross-default provisions. If the Company were unable to maintain compliance with the financial covenants in the senior secured credit facility agreement, it would seek modification to the then existing agreement to further amend covenants and extend maturities, as necessary. If the Company were unable to obtain such modification, it could potentially decide to pay off the credit facility and terminate the agreement. In such case, the liquidity provided by the agreement would not be available in the future; however, the Company believes it has sufficient liquidity from operations and other available funding sources to meet future operating, debt service and capital expenditure requirements for the next twelve months. Further, as noted above, the Company's U.S. revolver matures April 15, 2017 and the Company plans to either extend or refinance this facility during fiscal year 2017. The inability to extend or refinance the U.S. revolver could impact the Company's ability to meet its future liquidity requirements. As amended, the senior secured credit facility restricts the Company from paying any dividends during the remaining term of the facility. In addition, the indenture governing the Company's senior notes contains similar restrictions and also prohibits the payment of dividends and other distributions if the Company fails to satisfy a ratio of consolidated EBITDA to fixed charges of at least 2.0 to 1.0. At June 30, 2016, the Company did not satisfy this fixed charge coverage ratio. The Company may from time to time not satisfy this ratio. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Fair Value of Derivative Financial Instruments The Company recognizes all derivative financial instruments, such as foreign exchange contracts at fair value. Changes in the fair value of derivative financial instruments are either recognized periodically in income or in shareholders’ equity as a component of other comprehensive income depending on whether the derivative financial instrument qualifies for hedge accounting, and if so, whether it qualifies as a fair value hedge or a cash flow hedge. The Company has elected not to offset fair value amounts recognized for derivative instruments with the same counterparty under a master netting agreement. See Note 17 “Fair Value Measurements” to the “Notes to Condensed Consolidated Financial Statements” for further information on fair value methodology. 12. DERIVATIVE FINANCIAL INSTRUMENTS (continued) The following table summarizes the fair value of the Company’s derivatives by type at June 30, 2016 and 2015 , and March 31, 2016 . Fair Values of Derivative Instruments Assets Liabilities Derivatives Not Designated as Hedging Instruments: Balance Sheet Account Fair Balance Sheet Account Fair Foreign currency contracts at June 30, 2016 Other Current Assets $ — Accrued Expenses and Other Current Liabilities $ — Foreign currency contracts at June 30, 2015 Other Current Assets $ 609 Accrued Expenses and Other Current Liabilities $ — Foreign currency contracts at March 31, 2016 Other Current Assets $ — Accrued Expenses and Other Current Liabilities $ — Earnings Effects of Derivatives The Company periodically enters into forward or option currency contracts to protect against volatility associated with certain non-U.S. dollar denominated forecasted transactions. These contracts are for green tobacco purchases and processing costs as well as selling, general and administrative costs as the Company deems necessary. These contracts do not meet the requirements for hedge accounting treatment under generally accepted accounting principles, and as such, all changes in fair value are reported in income each period. The following table summarizes the earnings effects of derivatives in the Condensed Consolidated Statements of Operations for the three months ended June 30, 2016 and 2015 . Gain (Loss) Recognized in Income Derivatives Not Designated Location of Gain (Loss) Three Months Ended June 30, 2016 2015 Foreign currency contracts Cost of goods and services sold $ — $ (1,392 ) Credit Risk Financial instruments, including derivatives, expose the Company to credit loss in the event of non-performance by counterparties. The Company manages its exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. If a counterparty fails to meet the terms of an arrangement, the Company’s exposure is limited to the net amount that would have been received, if any, over the arrangement’s remaining life. The Company does not anticipate non-performance by the counterparties and no material loss would be expected from non-performance by any one of such counterparties. |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The following table summarizes the Company’s costs in inventory: June 30, 2016 June 30, 2015 March 31, 2016 Processed tobacco $ 675,523 $ 641,201 $ 584,158 Unprocessed tobacco 232,618 199,528 175,933 Other 30,667 43,786 31,249 $ 938,808 $ 884,515 $ 791,340 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS) The following tables set forth the changes in each component of accumulated other comprehensive loss, net of tax, attributable to the Company: Currency Translation Adjustment Pensions, Net of Tax Accumulated Other Comprehensive Loss Balances, March 31, 2016 $ (14,046 ) $ (39,802 ) $ (53,848 ) Other comprehensive loss before reclassifications (2,274 ) — (2,274 ) Amounts reclassified to net earnings, net of tax — 461 461 Other comprehensive earnings (loss), net of tax (2,274 ) 461 (1,813 ) Balances, June 30, 2016 (16,320 ) (39,341 ) (55,661 ) Balances, March 31, 2015 $ (14,154 ) $ (52,232 ) $ (66,386 ) Other comprehensive earnings before reclassifications 2,307 225 2,532 Amounts reclassified to net earnings, net of tax — 1,000 1,000 Other comprehensive earnings, net of tax 2,307 1,225 3,532 Balances, June 30, 2015 (11,847 ) (51,007 ) (62,854 ) The following table sets forth amounts by component, reclassified from accumulated other comprehensive loss to earnings for the three months and nine months ended June 30, 2016 and 2015 : Three Months Ended June 30, 2016 2015 Pension and postretirement plans (*) : Actuarial loss $ 628 $ 961 Amortization of prior service cost (167 ) 39 Amounts reclassified from accumulated other comprehensive losses to net earnings $ 461 $ 1,000 (*) Amounts are included in net periodic benefit costs for pension and postretirement plans. See Note 13 "Pension and Postretirement Benefits" to the "Notes to Condensed Consolidated Financial Statements" for further information. |
Sale of Receivables
Sale of Receivables | 3 Months Ended |
Jun. 30, 2016 | |
Disclosure of Securitized or Asset-backed Financing Arrangement Assets and Other Financial Assets Managed Together [Abstract] | |
SALE OF RECEIVABLES | SALE OF RECEIVABLES The Company sells trade receivables to unaffiliated financial institutions under two accounts receivable securitization programs. Under the first program, the Company continuously sells a designated pool of trade receivables to a special purpose entity, which in turn sells 100% of the receivables to an unaffiliated financial institution. During the three months ended June 30, 2016 , the investment limit of this program was adjusted from up to $150,000 trade receivables to up to $100,000 trade receivables. This program allows the Company to receive a cash payment and a deferred purchase price receivable for sold receivables. Following the sale and transfer of the receivables to the special purpose entity, the receivables are isolated from the Company and its affiliates, and upon the sale and transfer of the receivables from the special purpose entity to the unaffiliated financial institution effective control of the receivables is passed to the unaffiliated financial institution, which has all rights, including the right to pledge or sell the receivables. This program requires a minimum level of deferred purchase price to be retained by the Company in connection with the sales. The Company services, administers and collects the receivables on behalf of the special purpose entity and receives a servicing fee of 0.5% of serviced receivables per annum. As the Company estimates the fee it receives in return for its obligation to service these receivables at fair value, no servicing assets or liabilities are recognized. Servicing fees recognized were not material and are recorded as a reduction of Selling, General and Administrative Expenses within the Condensed Consolidated Statements of Operations. 16. SALE OF RECEIVABLES (continued) The agreement for the second program also allows the Company to receive a cash payment and a deferred purchase price receivable for sold receivables. This is an uncommitted program, whereby the Company offers receivables for sale to the respective unaffiliated financial institution, which are then subject to acceptance by the unaffiliated financial institution. Following the sale and transfer of the receivables to the unaffiliated financial institution, the receivables are isolated from the Company and its affiliates, and effective control of the receivables is passed to the unaffiliated financial institution, which has all rights, including the right to pledge or sell the receivables. The Company receives no servicing fee from the unaffiliated financial institution and as a result, has established a servicing liability based upon unobservable inputs, primarily discounted cash flow. This liability is recorded in Accrued Expenses and Other Current Liabilities in the Condensed Consolidated Balance Sheets. The investment limit under this agreement is $35,000 . During fiscal 2016, the company had a third securitization program that operated similar to the second program, with an investment limit of $100,000 . Under the programs, all of the receivables sold for cash are removed from the Condensed Consolidated Balance Sheets and the net cash proceeds received by the Company are included as cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows. A portion of the purchase price for the receivables is paid by the unaffiliated financial institutions in cash and the balance is a deferred purchase price receivable, which is paid as payments on the receivables are collected from account debtors. The deferred purchase price receivable represents a continuing involvement and a beneficial interest in the transferred financial assets and is recognized at fair value as part of the sale transaction. The deferred purchase price receivables are included in Trade and Other Receivables, Net in the Condensed Consolidated Balance Sheets and are valued using unobservable inputs (i.e., level three inputs), primarily discounted cash flow. As servicer of these facilities, the Company may receive funds that are due to the unaffiliated financial institutions which are net settled on the next settlement date. Trade and Other Receivables, Net in the Condensed Consolidated Balance Sheets has been reduced by $13,673 , $22,090 , and $9,113 as a result of the net settlement as of June 30, 2016 and 2015 and March 31, 2016 , respectively. See Note 17 "Fair Value Measurements" to the "Notes to Condensed Consolidated Financial Statements" for further information. The difference between the carrying amount of the receivables sold under these programs and the sum of the cash and fair value of the other assets received at the time of transfer is recognized as a loss on sale of the related receivables and recorded in Other Income (Expense) in the Condensed Consolidated Statements of Operations. The following table summarizes the Company’s accounts receivable securitization information as of the dates shown: June 30, March 31, 2016 2015 2016 Receivables outstanding in facility $ 65,786 $ 109,400 $ 188,764 Beneficial interest $ 14,681 $ 23,256 $ 40,368 Servicing liability $ — $ 22 $ 58 Cash proceeds for the three months ended June 30: Cash purchase price $ 136,046 $ 82,672 $ 585,648 Deferred purchase price 95,658 44,663 233,753 Service fees 183 167 553 Total $ 231,887 $ 127,502 $ 819,954 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. A three level valuation hierarchy based upon observable and non-observable inputs is utilized. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: • Level 1 - Quoted prices for identical assets or liabilities in active markets. • Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3 - Significant inputs to the valuation model are unobservable. 17. FAIR VALUE MEASUREMENTS (continued) The Company's financial assets and liabilities measured at fair value include derivative instruments, securitized beneficial interests and guarantees. The application of the fair value guidance to the non-financial assets and liabilities primarily includes assessments of investments in subsidiaries, goodwill and other intangible assets and long-lived assets for potential impairment. Following are descriptions of the valuation methodologies the Company uses to measure different assets or liabilities at fair value. Debt The fair value of debt is measured for purpose of disclosure. Debt is shown at historical value in the Condensed Consolidated Balance Sheets. When possible, to measure the fair value of its debt the Company uses quoted market prices of its own debt with approximately the same remaining maturities. When this is not possible, the fair value of debt is calculated using discounted cash flow models with interest rates based upon market based expectations, the Company's credit risk and the contractual terms of the debt instrument. The Company also has portions of its debt with maturities of one year or less for which book value is a reasonable approximation of the fair value of this debt. The fair value of debt is considered to fall within Level 2 of the fair value hierarchy as significant value drivers such as interest rates are readily observable. The carrying value and estimated fair value of the Company's Long-Term Debt are shown in the table below. June 30, 2016 June 30, 2015 March 31, 2016 Carrying value $ 911,068 $ 926,953 $ 920,444 Estimated fair value 800,394 855,886 753,038 Derivative financial instruments The Company's derivatives consist of foreign currency contracts. The fair value of the derivatives are determined using a discounted cash flow analysis on the expected future cash flows of each derivative. This analysis utilizes observable market data including forward yield curves and implied volatilities to determine the market's expectation of the future cash flows of the variable component. The fixed and variable components of the derivative are then discounted using calculated discount factors developed based on the LIBOR swap rate and are netted to arrive at a single valuation for the period. The Company also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. As of June 30, 2016 and 2015 and March 31, 2016 the inputs used to value the Company's derivatives fall within Level 2 of the fair value hierarchy. However, credit valuation adjustments associated with its derivatives could utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. Should the use of such credit valuation adjustment estimates result in a significant impact on the overall valuation, this would require reclassification to Level 3. Securitized beneficial interests The fair value of securitized beneficial interests is based upon a valuation model that calculates the present value of future expected cash flows using key assumptions for payment speeds and discount rates. The assumptions for payment speed are based on the Company's historical experience. The discount rates are based upon market trends and anticipated performance relative to the particular assets securitized which have been assumed to be commercial paper rate plus a margin or LIBOR plus a margin. Due to the use of the Company's own assumptions and the uniqueness of these transactions, securitized beneficial interests fall within Level 3 of the fair value hierarchy. Since the discount rate and the payment speed are components of the same equation, a change in either by 10% or 20% would change the value of the recorded beneficial interest at June 30, 2016 by $41 and $82 , respectively. Guarantees The Company guarantees certain funds issued to tobacco suppliers by third party lending institutions and also guarantees funds borrowed by certain unconsolidated subsidiaries. The fair value of guarantees is based upon either the premium the Company would require to issue the same inputs or historical loss rates and as such these guarantees fall into Level 3 of the fair value hierarchy. Tobacco supplier guarantees - The Company provides guarantees to certain third parties for indebtedness of certain tobacco suppliers to finance their crops. The fair value of these guarantees is determined using historical loss rates on both guaranteed and non-guaranteed tobacco supplier loans. Should the loss rates change 10% or 20% , the fair value of the guarantee at June 30, 2016 would change by $777 or $1,534 , respectively. Unconsolidated subsidiary guarantees - Due to the reconsolidation of MTC at March 31, 2016, there are no deconsolidated subsidiary guarantees that have a fair value at June 30, 2016. 17. FAIR VALUE MEASUREMENTS (continued) Input Hierarchy of Items Measured at Fair Value on a Recurring Basis The following table summarizes the items measured at fair value on a recurring basis: June 30, 2016 June 30, 2015 March 31, 2016 Total Assets / Total Assets / Total Assets / Liabilities Liabilities Liabilities Level 2 Level 3 at Fair Value Level 2 Level 3 at Fair Value Level 2 Level 3 at Fair Value Assets Derivative financial instruments $ — $ — $ — $ 609 $ — $ 609 $ — $ — $ — Securitized beneficial interests — 14,681 14,681 — 23,256 23,256 — 40,368 40,368 Total Assets $ — $ 14,681 $ 14,681 $ 609 $ 23,256 $ 23,865 $ — $ 40,368 $ 40,368 Liabilities Guarantees $ — $ 5,891 $ 5,891 $ — $ 7,723 $ 7,723 $ — $ 7,350 $ 7,350 Derivative financial instruments — — — — — — — — — Total liabilities $ — $ 5,891 $ 5,891 $ — $ 7,723 $ 7,723 $ — $ 7,350 $ 7,350 Reconciliation of Change in Recurring Level 3 Balances The following tables present the changes in Level 3 instruments measured on a recurring basis: Three Months Ended June 30, 2016 Securitized Beneficial Interests Guarantees Beginning Balance $ 40,368 $ 7,350 Issuances of guarantees/sales of receivables 61,205 1,003 Settlements (86,634 ) (2,462 ) Losses recognized in earnings (258 ) — Ending Balance June 30, 2016 $ 14,681 $ 5,891 Three Months Ended June 30, 2015 Securitized Beneficial Interest Guarantees Beginning Balance $ 40,712 $ 8,650 Issuances of guarantees/sales of receivables 33,782 4,557 Settlements (51,167 ) (5,484 ) Losses recognized in earnings (71 ) — Ending Balance June 30, 2015 $ 23,256 $ 7,723 The amount of unrealized losses relating to assets still held at the respective dates of June 30, 2016 and 2015 and March 31, 2016 were $458 , $733 and $1,521 on securitized beneficial interests. Gains and losses included in earnings are reported in Other Income. 17. FAIR VALUE MEASUREMENTS (continued) Information About Fair Value Measurements Using Significant Unobservable Inputs The following table summarizes significant unobservable inputs and the valuation techniques thereof at June 30, 2016 : Fair Value at June 30, 2016 Unobservable Input Range (Weighted Average) Securitized Beneficial Interests $ 14,681 Discounted Cash Flow Discount Rate 3.22 % Payment Speed 71 days Tobacco Supplier Guarantees $ 2,297 Historical Loss Historical Loss 9.90% to 15.92% Tobacco Supplier Guarantees $ 3,594 Discounted Cash Flow Market Interest Rate 15.75% to 21.95% |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company’s operating subsidiaries engage in transactions with related parties in the normal course of business. The following is a summary of balances and transactions with related parties of the Company: June 30, 2016 June 30, 2015 March 31, 2016 Balances: Accounts receivable, related parties $ 9,266 $ 7,732 $ 1,920 Due to related parties 15,496 22,920 20,490 Three Months Ended June 30, 2016 2015 Transactions: Sales $ 17,246 $ 7,563 Purchases 10,048 22,651 The Company’s operating subsidiaries have entered into transactions with affiliates of the Company for the purpose of procuring or processing inventory. The Company’s balances due to and from related parties are primarily with its equity basis investments located in Asia, South America, North America and Europe which purchase and process tobacco or produce consumable e-liquids. |
Investee Companies
Investee Companies | 3 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTEE COMPANIES | INVESTEE COMPANIES The Company has equity method investments in companies in India, Thailand, Turkey and Brazil that purchase and process tobacco. The investees and ownership percentages are as follows: Alliance One Industries India Private Ltd. (India) 49% , Siam Tobacco Export Company (Thailand) 49% , Adams International Ltd. (Thailand) 49% , Oryantal Tutun Paketleme 50% , and China Brasil Tobacos Exportadora SA (“CBT”) 49% . The Company also has a 50% interest in Purilum, LLC, a U.S. company that develops, produces, and sells consumable e-liquids to manufacturers and distributors of e-vapor products. On March 26, 2014, upon the disposition of 51% interest in CBT, the difference between the book basis of the Company’s 49% interest and the fair value of the investment recorded created a basis difference of $15,990 . The Company evaluated the contributed assets and identified basis differences in certain accounts, including inventory, intangible assets and deferred taxes. The basis differences are being amortized over the respective estimated lives of these assets and liabilities, which range from one to ten years. The Company’s earnings from the equity method investment are reduced by amortization expense related to these basis differences. At June 30, 2016 , the basis difference was $ 11,315 . |
Subsequent Event
Subsequent Event | 3 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENT On July 6, 2016, the Company entered into the Fifth Amendment to the Amended and Restated Credit Agreement (the “Fifth Amendment"), which further amended the Credit Agreement. The Fifth Amendment clarified that for the purpose of certain covenants under the Credit Agreement up to $100,000 of debt of the Company’s MTC subsidiary in respect of loans under a credit facility with a third-party lender funded by another specified subsidiary of the Company pursuant to a participation interest in such loans or an assignment in respect of such loans consistent with past practices prior to the date of the Fifth Amendment (so long as such loan proceeds are used in connection with the purchase, processing, exporting and financing of the contract growing and buying of tobacco) shall be deemed to be debt owed by MTC to the other Company subsidiary (and not the third-party lender) as intercompany debt regardless of the presentation of such debt in the consolidated financial statements of the Company in accordance with GAAP. The Fifth Amendment also waived any noncompliance by the Company under the Credit Agreement that may have occurred prior to the effectiveness of the Fifth Amendment as a result of such debt not being treated as intercompany debt, as well as the Company’s failure to deliver audited financial statements for the fiscal year ended March 31, 2016 within the time period required under the Credit Agreement if such audited financial statements are delivered by July 19, 2016. On July 28, 2016, Standard & Poor’s (“S&P”) downgraded the Company’s corporate credit rating to “CCC” from “CCC+” and indicated the rating outlook as “negative.” S&P also downgraded its issue-level ratings on our senior secured revolving line of credit to “B-” from “B”, and on our 9.875% senior secured second lien notes to “CCC-” from “CCC.” However, the Company affirms its belief that the sources of capital it has access to are sufficient to fund its anticipated needs for the next twelve months. As of June 30, 2016, available credit lines and cash were $643,365 , comprised of $158,211 in cash; $485,154 of credit lines, of which $10,259 was available under the U.S. revolving credit facility; and $474,895 of foreign seasonal credit lines with $10,713 exclusively for letters of credit. Notes payable to banks are typically for 180 to 270 days and are entered into each year in various locales around the world. The U.S revolver matures April 15, 2017 and the Company plans to either extend or refinance this facility during fiscal year 2017. The Company's access to capital meets its current expectations and outlook that is anticipated to provide sufficient liquidity to fulfill its future funding requirements for the next twelve months. General deterioration of its business and the cash flow that it generates, failure to renew foreign lines or an inability to extend or refinance its U.S. revolver could impact its ability to meet its future liquidity requirements. |
Restatement of Previously Repor
Restatement of Previously Reported Financial Information | 3 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of Previously Issued Financial Information | RESTATEMENT OF PREVIOUSLY REPORTED FINANCIAL INFORMATION As described in Note 1, “Basis of Presentation and Significant Accounting Policies” to the “Notes to Condensed Consolidated Financial Statements,” the Company identified and corrected certain misstatements relating to prior years’ consolidated financial statements that impact the June 30, 2015 condensed consolidated financial statements. In addition, the Company adopted new accounting guidance related to the classification of debt issuance costs on a retrospective basis that also impacts the June 30, 2015 condensed consolidated financial statements. The impact of these changes on selected financial amounts within the accompanying condensed consolidated financial statements are summarized below: Condensed Consolidated Balance Sheet as of June 30, 2015 (in thousands) As Previously Reported Inventory and Tax Adjustments Reclassifications Adoption of New Accounting Guidance As Restated Total current assets $ 1,427,269 $ (3,204 ) $ 11,808 $ — $ 1,435,873 Total non-current assets 169,090 — — (11,272 ) 157,818 Total assets 1,831,686 (3,204 ) 11,808 (11,272 ) 1,829,018 Non-current liabilities 995,360 — 11,808 (11,272 ) 995,896 Total equity 175,836 (3,204 ) — — 172,632 Total liabilities and equity 1,831,686 (3,204 ) 11,808 (11,272 ) 1,829,018 21. RESTATEMENT OF PREVIOUSLY REPORTED FINANCIAL INFORMATION (continued) Statement of Consolidated Stockholders' Equity (in thousands) As Previously Reported Inventory and Tax Adjustments Reclassifications Adoption of New Accounting Guidance As Restated Retained Deficit at March 31, 2015 $ (208,184 ) $ (3,204 ) $ — $ — $ (211,388 ) Retained Deficit at June 30, 2015 (234,134 ) (3,204 ) — — (237,338 ) Consolidated Balance Sheet as of March 31, 2016 (in thousands) As Previously Reported Inventory and Tax Adjustments Reclassifications Adoption of New Accounting Guidance As Restated Total non-current assets $ 210,190 $ — $ — $ (9,875 ) $ 200,315 Total assets 1,978,073 — — (9,875 ) 1,968,198 Non-current liabilities 1,028,575 — — (9,875 ) 1,018,700 Total liabilities and equity 1,978,073 — — (9,875 ) 1,968,198 |
Basis of Presentation and Sig29
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Because of the seasonal nature of the Company’s business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of financial position, results of operation and cash flows at the dates and for the periods presented have been included. The unaudited information included in this Form 10-Q should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016 . |
Taxes Collected from Customers | Taxes Collected from Customers Certain subsidiaries are subject to value added taxes on local sales. |
Other Deferred Charges | Other Deferred Charges Other deferred charges are primarily deferred financing costs that are amortized over the life of the debt. |
New Accounting Standards | Recent Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued new accounting guidance that changed the presentation of debt issuance costs in financial statements. The primary objective of this accounting guidance was to present these costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is still reported as interest expense. The Company adopted this guidance on April 1, 2016 on a retrospective basis. On the condensed consolidated balance sheets, $11,272 and $9,875 were reclassified from Other Deferred Charges to Long-Term Debt at June 30, 2015 and March 31, 2016, respectively. New Accounting Standards Recent Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued new accounting guidance that changed the presentation of debt issuance costs in financial statements. The primary objective of this accounting guidance was to present these costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is still reported as interest expense. The Company adopted this guidance on April 1, 2016 on a retrospective basis. On the condensed consolidated balance sheets, $11,272 and $9,875 were reclassified from Other Deferred Charges to Long-Term Debt at June 30, 2015 and March 31, 2016, respectively. See Note 21 "Restatement of Previously Reported Financial Information" to the "Notes to Condensed Consolidated Financial Statements." 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued) Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued new accounting guidance that outlines a single comprehensive model to use in accounting for revenue from contracts with customers. The primary objective of this accounting guidance is to recognize revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. This accounting guidance, as amended, is effective for the Company on April 1, 2018. The Company is currently evaluating the impact of this new guidance. In August 2014, the FASB issued new accounting guidance on determining when and how to disclose going concern uncertainties in the financial statements. The primary objective of this accounting guidance is for management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. This accounting guidance is effective for the Company on March 31, 2017. The Company is currently evaluating the impact of this new guidance. In July 2015, the FASB issued new accounting guidance that simplifies the measurement of inventory. Under the previous accounting guidance, an entity measured inventory at the lower of cost or market with market defined as one of three different measures. The primary objective of this accounting guidance is to require a single measurement of inventory at the lower of cost and net realizable value. This accounting guidance is effective for the Company on April 1, 2017. The Company is currently evaluating the impact of this new guidance. In January 2016, the FASB issued new accounting guidance regarding certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The primary objective of this accounting guidance is to provide users of financial statements with more decision-useful information. The accounting guidance will be effective for the Company on April 1, 2018. The Company is currently evaluating the impact of this guidance. In February 2016, the FASB issued new accounting guidance regarding the treatment of leases. The primary objective of this accounting guidance is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This accounting guidance will be effective for the Company April 1, 2020. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued new accounting guidance for simplifying the treatment of employee share-based payments. The primary objective is improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of information provided to users of financial statements. This accounting guidance will be effective for the Company on April 1, 2017. The Company is currently evaluating the impact of this new guidance. In June 2016, the FASB issued new accounting guidance on the measurement of credit losses on financial instruments. The primary objective is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. This accounting guidance will be effective for the Company on April 1, 2020. The Company is currently evaluating the impact of this new guidance. |
Guarantees (Tables)
Guarantees (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Guarantees [Abstract] | |
Summary of guarantees and associated fair values | The following table summarizes amounts guaranteed and the fair value of those guarantees: June 30, 2016 June 30, 2015 March 31, 2016 Amounts guaranteed (not to exceed) $ 229,486 $ 276,566 $ 210,703 Amounts outstanding under guarantee 111,287 165,222 107,615 Fair value of guarantees 5,891 7,723 7,350 |
Restructuring and Asset Impai31
Restructuring and Asset Impairment Charges (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table summarizes the restructuring charges recorded in the Company’s reporting segments during the three months ended June 30, 2016 and 2015 , respectively: Three Months Ended June 30, Restructuring and Asset Impairment Charges 2016 2015 Employee separation and other cash charges: Beginning balance $ 398 $ 8,087 Period charges: Severance charges 7 375 Other cash charges 34 — Total period charges 41 375 Payments through June 30 (340 ) (1,246 ) Ending balance June 30 $ 99 $ 7,216 Asset impairment and other non-cash charges $ — $ 2,573 Total restructuring charges for the period $ 41 $ 2,948 |
Schedule of Restructuring, Employee Separation and Other Cash Charges | The following table summarizes the employee separations and other cash charges recorded in the Company's North America and Other Regions segment during the three months ended June 30, 2016 and 2015 : Three Months Ended June 30, Employee Separation and Other Cash Charges 2016 2015 Beginning balance: $ 398 $ 8,087 North America — — Other regions 398 8,087 Period charges: $ 41 $ 375 North America — — Other regions 41 375 Payments through June 30 $ (340 ) $ (1,246 ) North America — — Other regions (340 ) (1,246 ) Ending balance June 30 $ 99 $ 7,216 North America — — Other regions 99 7,216 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Asset Rollforward | The following table summarizes the changes in the Company’s goodwill and other intangibles for the periods provided below: Amortizable Intangibles Goodwill (1) Customer Production Internally Total Weighted average remaining useful 12.75 4.50 — March 31, 2015 balance Gross carrying amount $ 2,794 $ 33,700 $ 14,893 $ 18,502 $ 69,889 Accumulated amortization — (16,639 ) (5,786 ) (15,573 ) (37,998 ) Net March 31, 2015 2,794 17,061 9,107 2,929 31,891 Amortization expense — (421 ) (270 ) (206 ) (897 ) Net June 30, 2015 2,794 16,640 8,837 2,723 30,994 Additions 13,669 24,830 — — 38,499 Amortization expense — (1,264 ) (555 ) (640 ) (2,459 ) Net March 31, 2016 16,463 40,206 8,282 2,083 67,034 Amortization expense — (836 ) (110 ) (193 ) (1,139 ) Net June 30, 2016 16,463 39,370 8,172 1,890 65,895 (1) Goodwill of $2,794 relates to the North America segment and $13,669 relates to the Other Regions segment. |
Estimated Intangible Asset Amortization Expense | The following table summarizes the estimated future intangible asset amortization expense: For Fiscal Customer Production Internally Total July 1, 2016 through March 31, 2017 $ 2,504 $ 1,172 $ 655 $ 4,331 2018 3,340 1,405 620 5,365 2019 3,340 1,405 367 5,112 2020 3,340 1,397 248 4,985 2021 3,340 1,397 — 4,737 Later 23,506 1,396 — 24,902 $ 39,370 $ 8,172 $ 1,890 $ 49,432 * Estimated amortization expense for the internally developed software is based on costs accumulated as of June 30, 2016 . These estimates will change as new costs are incurred and until the software is placed into service in all locations. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table presents the summary segment information for the three months ended June 30, 2016 and 2015 : Three Months Ended June 30, 2016 2015 Sales and other operating revenues: North America $ 49,938 $ 30,300 Other regions 211,163 235,982 Total revenue $ 261,101 $ 266,282 Operating income (loss): North America $ (978 ) $ 871 Other regions (4,298 ) (3,775 ) Total operating loss (5,276 ) (2,904 ) Interest expense 30,602 27,773 Interest income 1,838 1,374 Loss before income taxes and other items $ (34,040 ) $ (29,303 ) |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | Analysis of Segment Assets June 30, 2016 June 30, 2015 March 31, 2016 Segment assets: North America $ 316,215 $ 324,118 $ 338,833 Other regions 1,602,483 1,504,900 1,629,365 Total assets $ 1,918,698 $ 1,829,018 $ 1,968,198 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes the computation of earnings per share for the three months ended June 30, 2016 and 2015 , respectively. Three Months Ended June 30, (in thousands, except per share data) 2016 2015 BASIC LOSS Net loss attributable to Alliance One International, Inc. $ (31,505 ) $ (25,950 ) SHARES Weighted average number of shares outstanding 8,904 8,862 BASIC LOSS PER SHARE $ (3.54 ) $ (2.93 ) DILUTED LOSS Net loss attributable to Alliance One International, Inc. $ (31,505 ) $ (25,950 ) SHARES Weighted average number of common shares outstanding 8,904 8,862 Plus: Restricted shares issued and shares applicable to shares assumed to be purchased from proceeds at average market price — * — * Adjusted weighted average number of common shares outstanding 8,904 8,862 DILUTED LOSS PER SHARE $ (3.54 ) $ (2.93 ) * All outstanding restricted shares and shares applicable to stock options and restricted stock units are excluded because their inclusion would have an antidilutive effect on the loss per share. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |
Schedule of Share-based Compensation, Activity | During the three months ended June 30, 2016 and 2015 , respectively, the Company made the following stock-based compensation awards: 9. STOCK-BASED COMPENSATION (continued) Three Months Ended June 30, (in thousands, except grant date fair value) 2016 2015 Restricted Stock Number Granted 6 6 Grant Date Fair Value $ 15.40 $ 23.91 |
Derivative Financial Instrume36
Derivative Financial Instruments (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Other Derivatives Not Designated As Hedging Instruments Statements Of Financial Performance And Financial Position Location | The following table summarizes the earnings effects of derivatives in the Condensed Consolidated Statements of Operations for the three months ended June 30, 2016 and 2015 . Gain (Loss) Recognized in Income Derivatives Not Designated Location of Gain (Loss) Three Months Ended June 30, 2016 2015 Foreign currency contracts Cost of goods and services sold $ — $ (1,392 ) The following table summarizes the fair value of the Company’s derivatives by type at June 30, 2016 and 2015 , and March 31, 2016 . Fair Values of Derivative Instruments Assets Liabilities Derivatives Not Designated as Hedging Instruments: Balance Sheet Account Fair Balance Sheet Account Fair Foreign currency contracts at June 30, 2016 Other Current Assets $ — Accrued Expenses and Other Current Liabilities $ — Foreign currency contracts at June 30, 2015 Other Current Assets $ 609 Accrued Expenses and Other Current Liabilities $ — Foreign currency contracts at March 31, 2016 Other Current Assets $ — Accrued Expenses and Other Current Liabilities $ — |
Pension and Postretirement Be37
Pension and Postretirement Benefits (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Net periodic pension cost for continuing operations consisted of the following: Three Months Ended June 30, 2016 2015 Service cost $ 120 $ 502 Interest expense 1,176 1,462 Expected return on plan assets (1,403 ) (1,554 ) Amortization of prior service cost 10 42 Actuarial loss 524 849 Net periodic pension cost $ 427 $ 1,301 |
Schedule of Net Periodic Benefit Cost, Post Employment Benefits | Net periodic benefit cost for postretirement health and life insurance benefit plans consisted of the following: Three Months Ended June 30, 2016 2015 Service cost $ 3 $ 10 Interest expense 67 111 Amortization of prior service cost (177 ) (3 ) Actuarial loss 104 112 Net periodic pension cost (benefit) $ (3 ) $ 230 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table summarizes the Company’s costs in inventory: June 30, 2016 June 30, 2015 March 31, 2016 Processed tobacco $ 675,523 $ 641,201 $ 584,158 Unprocessed tobacco 232,618 199,528 175,933 Other 30,667 43,786 31,249 $ 938,808 $ 884,515 $ 791,340 |
Other Comprehensive Income (L39
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Component of Accumulated Other Comprehensive Loss, Net of Tax | The following tables set forth the changes in each component of accumulated other comprehensive loss, net of tax, attributable to the Company: Currency Translation Adjustment Pensions, Net of Tax Accumulated Other Comprehensive Loss Balances, March 31, 2016 $ (14,046 ) $ (39,802 ) $ (53,848 ) Other comprehensive loss before reclassifications (2,274 ) — (2,274 ) Amounts reclassified to net earnings, net of tax — 461 461 Other comprehensive earnings (loss), net of tax (2,274 ) 461 (1,813 ) Balances, June 30, 2016 (16,320 ) (39,341 ) (55,661 ) Balances, March 31, 2015 $ (14,154 ) $ (52,232 ) $ (66,386 ) Other comprehensive earnings before reclassifications 2,307 225 2,532 Amounts reclassified to net earnings, net of tax — 1,000 1,000 Other comprehensive earnings, net of tax 2,307 1,225 3,532 Balances, June 30, 2015 (11,847 ) (51,007 ) (62,854 ) |
Pretax Amounts by Component, Reclassified from Accumulated Other Comprehensive Loss to Earnings | The following table sets forth amounts by component, reclassified from accumulated other comprehensive loss to earnings for the three months and nine months ended June 30, 2016 and 2015 : Three Months Ended June 30, 2016 2015 Pension and postretirement plans (*) : Actuarial loss $ 628 $ 961 Amortization of prior service cost (167 ) 39 Amounts reclassified from accumulated other comprehensive losses to net earnings $ 461 $ 1,000 (*) Amounts are included in net periodic benefit costs for pension and postretirement plans. See Note 13 "Pension and Postretirement Benefits" to the "Notes to Condensed Consolidated Financial Statements" for further information. |
Sale of Receivables (Tables)
Sale of Receivables (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Disclosure of Securitized or Asset-backed Financing Arrangement Assets and Other Financial Assets Managed Together [Abstract] | |
Summary of the Company’s Accounts Receivable Securitization Information | The following table summarizes the Company’s accounts receivable securitization information as of the dates shown: June 30, March 31, 2016 2015 2016 Receivables outstanding in facility $ 65,786 $ 109,400 $ 188,764 Beneficial interest $ 14,681 $ 23,256 $ 40,368 Servicing liability $ — $ 22 $ 58 Cash proceeds for the three months ended June 30: Cash purchase price $ 136,046 $ 82,672 $ 585,648 Deferred purchase price 95,658 44,663 233,753 Service fees 183 167 553 Total $ 231,887 $ 127,502 $ 819,954 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Long-term Debt | The carrying value and estimated fair value of the Company's Long-Term Debt are shown in the table below. June 30, 2016 June 30, 2015 March 31, 2016 Carrying value $ 911,068 $ 926,953 $ 920,444 Estimated fair value 800,394 855,886 753,038 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | The following table summarizes the items measured at fair value on a recurring basis: June 30, 2016 June 30, 2015 March 31, 2016 Total Assets / Total Assets / Total Assets / Liabilities Liabilities Liabilities Level 2 Level 3 at Fair Value Level 2 Level 3 at Fair Value Level 2 Level 3 at Fair Value Assets Derivative financial instruments $ — $ — $ — $ 609 $ — $ 609 $ — $ — $ — Securitized beneficial interests — 14,681 14,681 — 23,256 23,256 — 40,368 40,368 Total Assets $ — $ 14,681 $ 14,681 $ 609 $ 23,256 $ 23,865 $ — $ 40,368 $ 40,368 Liabilities Guarantees $ — $ 5,891 $ 5,891 $ — $ 7,723 $ 7,723 $ — $ 7,350 $ 7,350 Derivative financial instruments — — — — — — — — — Total liabilities $ — $ 5,891 $ 5,891 $ — $ 7,723 $ 7,723 $ — $ 7,350 $ 7,350 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present the changes in Level 3 instruments measured on a recurring basis: Three Months Ended June 30, 2016 Securitized Beneficial Interests Guarantees Beginning Balance $ 40,368 $ 7,350 Issuances of guarantees/sales of receivables 61,205 1,003 Settlements (86,634 ) (2,462 ) Losses recognized in earnings (258 ) — Ending Balance June 30, 2016 $ 14,681 $ 5,891 Three Months Ended June 30, 2015 Securitized Beneficial Interest Guarantees Beginning Balance $ 40,712 $ 8,650 Issuances of guarantees/sales of receivables 33,782 4,557 Settlements (51,167 ) (5,484 ) Losses recognized in earnings (71 ) — Ending Balance June 30, 2015 $ 23,256 $ 7,723 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | The following table summarizes significant unobservable inputs and the valuation techniques thereof at June 30, 2016 : Fair Value at June 30, 2016 Unobservable Input Range (Weighted Average) Securitized Beneficial Interests $ 14,681 Discounted Cash Flow Discount Rate 3.22 % Payment Speed 71 days Tobacco Supplier Guarantees $ 2,297 Historical Loss Historical Loss 9.90% to 15.92% Tobacco Supplier Guarantees $ 3,594 Discounted Cash Flow Market Interest Rate 15.75% to 21.95% |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following is a summary of balances and transactions with related parties of the Company: June 30, 2016 June 30, 2015 March 31, 2016 Balances: Accounts receivable, related parties $ 9,266 $ 7,732 $ 1,920 Due to related parties 15,496 22,920 20,490 Three Months Ended June 30, 2016 2015 Transactions: Sales $ 17,246 $ 7,563 Purchases 10,048 22,651 |
Restatement of Previously Rep43
Restatement of Previously Reported Financial Information (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | As described in Note 1, “Basis of Presentation and Significant Accounting Policies” to the “Notes to Condensed Consolidated Financial Statements,” the Company identified and corrected certain misstatements relating to prior years’ consolidated financial statements that impact the June 30, 2015 condensed consolidated financial statements. In addition, the Company adopted new accounting guidance related to the classification of debt issuance costs on a retrospective basis that also impacts the June 30, 2015 condensed consolidated financial statements. The impact of these changes on selected financial amounts within the accompanying condensed consolidated financial statements are summarized below: Condensed Consolidated Balance Sheet as of June 30, 2015 (in thousands) As Previously Reported Inventory and Tax Adjustments Reclassifications Adoption of New Accounting Guidance As Restated Total current assets $ 1,427,269 $ (3,204 ) $ 11,808 $ — $ 1,435,873 Total non-current assets 169,090 — — (11,272 ) 157,818 Total assets 1,831,686 (3,204 ) 11,808 (11,272 ) 1,829,018 Non-current liabilities 995,360 — 11,808 (11,272 ) 995,896 Total equity 175,836 (3,204 ) — — 172,632 Total liabilities and equity 1,831,686 (3,204 ) 11,808 (11,272 ) 1,829,018 21. RESTATEMENT OF PREVIOUSLY REPORTED FINANCIAL INFORMATION (continued) Statement of Consolidated Stockholders' Equity (in thousands) As Previously Reported Inventory and Tax Adjustments Reclassifications Adoption of New Accounting Guidance As Restated Retained Deficit at March 31, 2015 $ (208,184 ) $ (3,204 ) $ — $ — $ (211,388 ) Retained Deficit at June 30, 2015 (234,134 ) (3,204 ) — — (237,338 ) Consolidated Balance Sheet as of March 31, 2016 (in thousands) As Previously Reported Inventory and Tax Adjustments Reclassifications Adoption of New Accounting Guidance As Restated Total non-current assets $ 210,190 $ — $ — $ (9,875 ) $ 200,315 Total assets 1,978,073 — — (9,875 ) 1,968,198 Non-current liabilities 1,028,575 — — (9,875 ) 1,018,700 Total liabilities and equity 1,978,073 — — (9,875 ) 1,968,198 |
Basis of Presentation and Sig44
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2007 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Amounts outstanding under guarantee | $ 111,287,000 | $ 165,222,000 | $ 107,615,000 | |
Value added tax expense | $ 6,185,000 | 5,675,000 | ||
MTC | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Investment, cost method | $ 0 | |||
Amounts outstanding under guarantee | $ 51,349,000 |
Basis of Presentation and Sig45
Basis of Presentation and Significant Accounting Policies Restatement of Previously Reported Financial Information (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Inventories | $ 938,808 | $ 791,340 | $ 884,515 | |
Retained deficit | (177,361) | (145,856) | (237,338) | $ (211,388) |
Pension, postretirement and other long-term liabilities | $ 81,008 | $ 81,753 | 101,109 | |
Restatement Adjustment | Adjustment For Accounting Errors | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Inventories | 1,380 | |||
Recoverable income tax | 1,824 | |||
Retained deficit | 3,204 | |||
Accounts receivable, related parties | (11,808) | |||
Pension, postretirement and other long-term liabilities | $ 11,808 |
Basis of Presentation and Sig46
Basis of Presentation and Significant Accounting Policies Debt Issuance Cost Reclassification (Details) - Accounting Standards Update 2015-03 - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Long-term Debt | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt issuance costs | $ 9,875 | $ 11,272 |
Other Deferred Charges | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt issuance costs | $ (9,875) | $ (11,272) |
Income Taxes Accounting for Unc
Income Taxes Accounting for Uncertainty in Income Taxes (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Unrecognized tax benefits | $ 16,462 |
Unrecognized tax benefits, interest on income taxes accrued | 1,342 |
Unrecognized tax benefits, income tax penalties accrued | $ 842 |
State and Local Jurisdiction | Minimum | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Income tax examination, open tax years | 3 years |
State and Local Jurisdiction | Maximum | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Income tax examination, open tax years | 6 years |
Non-U.S | Minimum | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Income tax examination, open tax years | 3 years |
Non-U.S | Maximum | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Income tax examination, open tax years | 6 years |
Income Taxes Income Tax Provisi
Income Taxes Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 11.30% | 11.00% |
Permanent items | $ 3,474 | $ 1,762 |
Effective income tax rate reconciliation, adjustment | 1.10% | 5.00% |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | |
Guarantor Obligations [Line Items] | |||
Amounts guaranteed (not to exceed) | $ 229,486 | $ 210,703 | $ 276,566 |
Amounts outstanding under guarantee | 111,287 | 107,615 | 165,222 |
Fair value of guarantees | $ 5,891 | 7,350 | 7,723 |
Number of years, before expiring guarantees | 1 year | ||
Financial Guarantee | |||
Guarantor Obligations [Line Items] | |||
Amounts outstanding under guarantee | $ 13,127 | $ 16,699 | $ 11,212 |
Restructuring and Asset Impai50
Restructuring and Asset Impairment Charges Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Asset impairment charges | $ 0 | $ 2,573 |
Global Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | 375 | |
Asset impairment charges | $ 2,573 |
Restructuring and Asset Impai51
Restructuring and Asset Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 398 | $ 8,087 |
Severance charges | 7 | 375 |
Other cash charges | 34 | 0 |
Total period charges | 41 | 375 |
Payments through June 30 | (340) | (1,246) |
Ending balance June 30 | 99 | 7,216 |
Asset impairment and other non-cash charges | 0 | 2,573 |
Total restructuring charges for the period | $ 41 | $ 2,948 |
Restructuring and Asset Impai52
Restructuring and Asset Impairment Charges Employee Separation and Other Cash Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 398 | $ 8,087 |
Period charges | 41 | 375 |
Payments through June 30 | (340) | (1,246) |
Ending balance June 30 | 99 | 7,216 |
North America | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | 0 |
Period charges | 0 | 0 |
Payments through June 30 | 0 | 0 |
Ending balance June 30 | 0 | 0 |
Other Regions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 398 | 8,087 |
Period charges | 41 | 375 |
Payments through June 30 | (340) | (1,246) |
Ending balance June 30 | $ 99 | $ 7,216 |
Goodwill and Intangibles Asset
Goodwill and Intangibles Asset Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | [1] | $ 16,463 | $ 2,794 | $ 16,463 | $ 2,794 |
Gross balance | 69,889 | ||||
Amortizable Intangibles, Accumulated amortization | (37,998) | ||||
Goodwill, Acquired During Period | 13,669 | ||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Net balance | 67,034 | 31,891 | 30,994 | ||
Additions | 38,499 | ||||
Amortization expense | (1,139) | (897) | (2,459) | ||
Net balance | 65,895 | 30,994 | 67,034 | ||
North America | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | 2,794 | ||||
Other Regions | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 13,669 | ||||
Customer Relationships Intangible | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Weighted average remaining useful life in years | 12 years 9 months | ||||
Amortizable Intangibles, Gross carrying amount | 33,700 | ||||
Amortizable Intangibles, Accumulated amortization | (16,639) | ||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Net balance | $ 40,206 | 17,061 | 16,640 | ||
Additions | 24,830 | ||||
Amortization expense | (836) | (421) | (1,264) | ||
Net balance | $ 39,370 | 16,640 | 40,206 | ||
Production and Supply Contract Intangibles | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Weighted average remaining useful life in years | 4 years 6 months | ||||
Amortizable Intangibles, Gross carrying amount | 14,893 | ||||
Amortizable Intangibles, Accumulated amortization | (5,786) | ||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Net balance | $ 8,282 | 9,107 | 8,837 | ||
Additions | 0 | ||||
Amortization expense | (110) | (270) | (555) | ||
Net balance | $ 8,172 | 8,837 | 8,282 | ||
Internally Developed Software Intangible | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Weighted average remaining useful life in years | 0 years | ||||
Amortizable Intangibles, Gross carrying amount | 18,502 | ||||
Amortizable Intangibles, Accumulated amortization | $ (15,573) | ||||
Finite-lived Intangible Assets [Roll Forward] | |||||
Net balance | $ 2,083 | 2,929 | 2,723 | ||
Additions | 0 | ||||
Amortization expense | (193) | (206) | (640) | ||
Net balance | $ 1,890 | $ 2,723 | $ 2,083 | ||
[1] | Goodwill of $2,794 relates to the North America segment |
Goodwill and Intangibles Estima
Goodwill and Intangibles Estimated Intangible Asset Amortization Expense (Details) $ in Thousands | Jun. 30, 2016USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
July 1, 2016 through March 31, 2017 | $ 4,331 | |
2,018 | 5,365 | |
2,019 | 5,112 | |
2,020 | 4,985 | |
2,021 | 4,737 | |
Later | 24,902 | |
Amortizable Intangibles, Net | 49,432 | |
Customer Relationships Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
July 1, 2016 through March 31, 2017 | 2,504 | |
2,018 | 3,340 | |
2,019 | 3,340 | |
2,020 | 3,340 | |
2,021 | 3,340 | |
Later | 23,506 | |
Amortizable Intangibles, Net | 39,370 | |
Production and Supply Contract Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
July 1, 2016 through March 31, 2017 | 1,172 | |
2,018 | 1,405 | |
2,019 | 1,405 | |
2,020 | 1,397 | |
2,021 | 1,397 | |
Later | 1,396 | |
Amortizable Intangibles, Net | 8,172 | |
Internally Developed Software Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
July 1, 2016 through March 31, 2017 | 655 | [1] |
2,018 | 620 | [1] |
2,019 | 367 | [1] |
2,020 | 248 | [1] |
2,021 | 0 | [1] |
Later | 0 | [1] |
Amortizable Intangibles, Net | $ 1,890 | [1] |
[1] | Estimated amortization expense for the internally developed software is based on costs accumulated as of June 30, 2016. These estimates will change as new costs are incurred and until the software is placed into service in all locations. |
Variable Interest Entities Nonc
Variable Interest Entities Nonconsolidated VIEs (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2016USD ($)joint_venture | Mar. 31, 2016USD ($) | Jun. 30, 2015USD ($) | |
Variable Interest Entity [Line Items] | |||
Investment in joint ventures | $ 56,637 | $ 58,259 | $ 54,508 |
Advances to joint ventures | $ 9,266 | 1,920 | 7,732 |
Corporate Joint Venture | |||
Variable Interest Entity [Line Items] | |||
Number of joint ventures | joint_venture | 7 | ||
Investment in joint ventures | $ 55,620 | 57,243 | 53,491 |
Advances to joint ventures | $ 9,266 | 1,920 | 3,796 |
Number of joint venture, maximum loss exposure | joint_venture | 2 | ||
Joint venture, maximum loss exposure | $ 107,009 | $ 100,238 | $ 111,622 |
Segment Information Analysis of
Segment Information Analysis of Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2016USD ($)country | Jun. 30, 2015USD ($) | Mar. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of countries, tobacco is purchased in (more than 35) | country | 35 | ||
Number of countries, tobacco is shipped to | country | 90 | ||
Sales and other operating revenues | $ 261,101 | $ 266,282 | |
Operating income (loss) | (5,276) | (2,904) | |
Interest expense | 30,602 | 27,773 | |
Interest income | 1,838 | 1,374 | |
Loss before income taxes and other items | (34,040) | (29,303) | |
Segment assets | 1,918,698 | 1,829,018 | $ 1,968,198 |
North America | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 49,938 | 30,300 | |
Operating income (loss) | (978) | 871 | |
Segment assets | 316,215 | 324,118 | 338,833 |
Other Regions | |||
Segment Reporting Information [Line Items] | |||
Sales and other operating revenues | 211,163 | 235,982 | |
Operating income (loss) | (4,298) | (3,775) | |
Segment assets | $ 1,602,483 | $ 1,504,900 | $ 1,629,365 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Common shares, owned by subsidiary (in shares) | 785 | 785 | |
Net loss attributable to Alliance One International, Inc. | $ (31,505) | $ (25,950) | |
Weighted average number of shares outstanding (in shares) | 8,904 | 8,862 | |
BASIC LOSS PER SHARE (usd per share) | $ (3.54) | $ (2.93) | |
Plus: Restricted shares issued and shares applicable to stock options and restricted stock units, net of shares assumed to be purchased from proceeds at average market price (in shares) | 0 | [1] | 0 |
Adjusted weighted average number of common shares outstanding (in shares) | 8,904 | 8,862 | |
DILUTED LOSS PER SHARE (usd per share) | $ (3.54) | $ (2.93) | |
Stock Options | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 469 | 656 | |
Weighted average exercise price, antidilutive shares (usd per share) | $ 60.70 | $ 60.39 | |
[1] | Assumed conversion of convertible notes at the beginning of the period has an antidilutive effect on earnings per share. The convertible notes matured during the three months ended September 30, 2014. All outstanding restricted shares and shares applicable to stock options and restricted stock units are excluded because their inclusion would have an antidilutive effect on the loss per share. |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Option Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 437 | $ 1,104 |
Stock-based Awards Payable in Cash | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 45 | $ 291 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number granted (in shares) | 6 | 6 |
Grant date fair value (usd per share) | $ 15.40 | $ 23.91 |
Contingencies and Other Infor59
Contingencies and Other Information (Details) € in Thousands, $ in Thousands | Nov. 11, 2013EUR (€) | Apr. 12, 2007EUR (€) | Mar. 31, 2013USD ($) | Dec. 31, 2005USD ($) | Jun. 30, 2016USD ($) | Oct. 26, 2007USD ($) |
Loss Contingencies [Line Items] | ||||||
Amount of federal taxes offset | $ 24,142 | |||||
Damages sought, including interest and costs | € | € 7,400 | |||||
Fines related to litigation settlement | € | € 48 | |||||
Brazilian State of Parana | Tax Assessment | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, estimate of possible loss | $ 12,735 | $ 4,104 | ||||
Brazil State of Rio Grande do Sul and the State of Santa Catarina | Tax Assessment | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, estimate of possible loss | $ 3,627 | |||||
IPI Credit Bonus | ||||||
Loss Contingencies [Line Items] | ||||||
Gain contingency, unrecorded amount | $ 94,316 | |||||
Other Income (Expense) | ||||||
Loss Contingencies [Line Items] | ||||||
Benefit of excise tax | $ 24,142 |
Debt Arrangements (Details)
Debt Arrangements (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Minimum | |
Line of Credit Facility [Line Items] | |
Ratio of EBITDA to fixed charges | 2 |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Amount outstanding | $ 200,000 |
Derivative Financial Instrume61
Derivative Financial Instruments Fair Value of Derivative Instruments (Details) - Foreign Exchange Contract - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 |
Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative asset | $ 0 | $ 0 | $ 609 |
Accrued Expenses and Other Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Current derivative liability | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume62
Derivative Financial Instruments Foreign Currency Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Cost of goods and services sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | $ 0 | $ (1,392) |
Pension and Postretirement Be63
Pension and Postretirement Benefits Net Periodic Pension Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Pension and Other Postretirement Benefit Expense [Abstract] | ||
Service cost | $ 120 | $ 502 |
Interest expense | 1,176 | 1,462 |
Expected return on plan assets | (1,403) | (1,554) |
Amortization of prior service cost | 10 | 42 |
Actuarial loss | 524 | 849 |
Net periodic pension cost | $ 427 | $ 1,301 |
Pension and Postretirement Be64
Pension and Postretirement Benefits Postretirement Health and Life Insurance Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | $ 1,503 | |
Additional contributions to the plans are expected during the rest of current fiscal year | 4,957 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Service cost | 120 | $ 502 |
Interest expense | 1,176 | 1,462 |
Amortization of prior service cost | 10 | 42 |
Actuarial loss | 524 | 849 |
Net periodic pension cost | 427 | 1,301 |
Health and Life Insurance Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | 83 | |
Additional contributions to the plans are expected during the rest of current fiscal year | 291 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Service cost | 3 | 10 |
Interest expense | 67 | 111 |
Amortization of prior service cost | (177) | (3) |
Actuarial loss | 104 | 112 |
Net periodic pension cost | $ (3) | $ 230 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 |
Inventory Disclosure [Abstract] | |||
Processed tobacco | $ 675,523 | $ 584,158 | $ 641,201 |
Unprocessed tobacco | 232,618 | 175,933 | 199,528 |
Other | 30,667 | 31,249 | 43,786 |
Inventory total | $ 938,808 | $ 791,340 | $ 884,515 |
Other Comprehensive Income (L66
Other Comprehensive Income (Loss) Component of Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, beginning balance | $ (53,848) | $ (66,386) |
Other comprehensive loss before reclassifications | (2,274) | 2,532 |
Amounts reclassified to net earnings, net of tax | 461 | 1,000 |
Total other comprehensive income (loss), net of tax | (1,813) | 3,532 |
Accumulated other comprehensive income (loss), net of tax, ending balance | (55,661) | (62,854) |
Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (14,046) | (14,154) |
Other comprehensive loss before reclassifications | (2,274) | 2,307 |
Amounts reclassified to net earnings, net of tax | 0 | 0 |
Total other comprehensive income (loss), net of tax | (2,274) | 2,307 |
Accumulated other comprehensive income (loss), net of tax, ending balance | (16,320) | (11,847) |
Pensions, Net of Tax | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (39,802) | (52,232) |
Other comprehensive loss before reclassifications | 0 | 225 |
Amounts reclassified to net earnings, net of tax | 461 | 1,000 |
Total other comprehensive income (loss), net of tax | 461 | 1,225 |
Accumulated other comprehensive income (loss), net of tax, ending balance | $ (39,341) | $ (51,007) |
Other Comprehensive Income (L67
Other Comprehensive Income (Loss) Pretax Amounts by Component, Reclassified from Accumulated Other Comprehensive Loss to Earnings (Details) - Reclassification out of Accumulated Other Comprehensive Income - Pensions, Net of Tax - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Actuarial loss | [1] | $ 628 | $ 961 |
Amortization of prior service cost | [1] | (167) | 39 |
Amounts reclassified from accumulated other comprehensive losses to net earnings | [1] | $ 461 | $ 1,000 |
[1] | Amounts are included in net periodic benefit costs for pension and postretirement plans. See Note 13 "Pension and Postretirement Benefits" to the "Notes to Condensed Consolidated Financial Statements" for further information. |
Sale of Receivables (Details)
Sale of Receivables (Details) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)program | Jun. 30, 2015USD ($) | Mar. 31, 2016USD ($) | Apr. 01, 2016USD ($) | |
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets [Line Items] | ||||
Number of accounts receivable securitization programs | program | 2 | |||
Receivables sold, face value discounted, percentage | 100.00% | |||
Reductions of trade and other receivables due to settlements | $ 13,673,000 | $ 22,090,000 | $ 9,113,000 | |
Receivables outstanding in facility | 65,786,000 | 109,400,000 | 188,764,000 | |
Beneficial interest | 14,681,000 | 23,256,000 | 40,368,000 | |
Servicing liability | 0 | 22,000 | 58,000 | |
Cash purchase price | 136,046,000 | 82,672,000 | 585,648,000 | |
Deferred purchase price | 95,658,000 | 44,663,000 | 233,753,000 | |
Service fees | 183,000 | 167,000 | 553,000 | |
Total | 231,887,000 | $ 127,502,000 | 819,954,000 | |
Accounts Receivable Securitization, Program One | ||||
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets [Line Items] | ||||
Trade receivables sold, maximum amount | $ 100,000 | $ 150,000 | ||
Service fee percentage | 0.50% | |||
Accounts Receivable Securitization, Program Two | ||||
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets [Line Items] | ||||
Trade receivables sold, maximum amount | $ 35,000,000 | |||
Asset Backed Securities Programs Number Three | ||||
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets [Line Items] | ||||
Trade receivables sold, maximum amount | $ 100,000,000 |
Fair Value Measurements Debt (D
Fair Value Measurements Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 |
Carrying value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 911,068 | $ 920,444 | $ 926,953 |
Estimate of Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | $ 800,394 | $ 753,038 | $ 855,886 |
Fair Value Measurements Textual
Fair Value Measurements Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Securitized Beneficial Interests | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Fair value, assets measured on recurring basis, change in unrealized gain (loss) included in other income | $ 458 | $ 733 | $ 1,521 |
Securitized Beneficial Interests | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Sensitivity analysis of fair value, transferor's interests in transferred financial assets, impact of 10 percent adverse change in other assumption | 41 | ||
Sensitivity analysis of fair value, transferor's interests in transferred financial assets, impact of 20 percent adverse change in other assumption | 82 | ||
Guarantees | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Sensitivity analysis of fair value, transferor's interests in transferred financial assets, impact of 10 percent adverse change in other assumption | 777 | ||
Sensitivity analysis of fair value, transferor's interests in transferred financial assets, impact of 20 percent adverse change in other assumption | $ 1,534 |
Fair Value Measurements Input H
Fair Value Measurements Input Hierarchy of Items Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | $ 0 | $ 0 | $ 609 |
Securitized beneficial interests | 0 | 0 | 0 |
Total Assets | 0 | 0 | 609 |
Guarantees | 0 | 0 | 0 |
Derivative financial instruments | 0 | 0 | 0 |
Total liabilities | 0 | 0 | 0 |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 0 | 0 | 0 |
Securitized beneficial interests | 14,681 | 40,368 | 23,256 |
Total Assets | 14,681 | 40,368 | 23,256 |
Guarantees | 5,891 | 7,350 | 7,723 |
Derivative financial instruments | 0 | 0 | 0 |
Total liabilities | 5,891 | 7,350 | 7,723 |
Total Assets / Liabilities, at Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 0 | 0 | 609 |
Securitized beneficial interests | 14,681 | 40,368 | 23,256 |
Total Assets | 14,681 | 40,368 | 23,865 |
Guarantees | 5,891 | 7,350 | 7,723 |
Derivative financial instruments | 0 | 0 | 0 |
Total liabilities | $ 5,891 | $ 7,350 | $ 7,723 |
Fair Value Measurements Reconci
Fair Value Measurements Reconciliation of Change in Recurring Level 3 Balances (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Securitized Beneficial Interests | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 40,368 | $ 40,712 |
Issuances of guarantees/sales of receivables | 61,205 | 33,782 |
Settlements | (86,634) | (51,167) |
Losses recognized in earnings | (258) | (71) |
Ending Balance | 14,681 | 23,256 |
Guarantees | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 7,350 | 8,650 |
Issuances of guarantees/sales of receivables | 1,003 | 4,557 |
Settlements | (2,462) | (5,484) |
Losses recognized in earnings | 0 | 0 |
Ending Balance | $ 5,891 | $ 7,723 |
Fair Value Measurements Informa
Fair Value Measurements Information About Fair Value Measurements Using Significant Unobservable Inputs (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Discounted Cash Flow Valuation Technique | Securitized Beneficial Interests | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Fair value of unobservable inputs | $ 14,681 |
Securitized Market Rate | 3.22% |
Payment Speed | 71 days |
Discounted Cash Flow Valuation Technique | Tobacco Supplier Guarantees One | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Fair value of unobservable inputs | $ 3,594 |
Discounted Cash Flow Valuation Technique | Minimum | Tobacco Supplier Guarantees One | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Market Interest Rate | 15.75% |
Discounted Cash Flow Valuation Technique | Maximum | Tobacco Supplier Guarantees One | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Market Interest Rate | 21.95% |
Historical Loss Valuation Technique | Tobacco Supplier Guarantees One | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Fair value of unobservable inputs | $ 2,297 |
Historical Loss Valuation Technique | Minimum | Tobacco Supplier Guarantees One | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Market Interest Rate | 9.90% |
Historical Loss Valuation Technique | Maximum | Tobacco Supplier Guarantees One | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Market Interest Rate | 15.92% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |||
Accounts receivable, related parties | $ 9,266 | $ 7,732 | $ 1,920 |
Due to related parties | 15,496 | 22,920 | $ 20,490 |
Sales | 17,246 | 7,563 | |
Purchases | $ 10,048 | $ 22,651 |
Investee Companies (Details)
Investee Companies (Details) - USD ($) $ in Thousands | Mar. 26, 2014 | Jun. 30, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Basis difference for CBT | $ 15,990 | $ 11,315 |
Alliance One Industries India Private Ltd. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.00% | |
Siam Tobacco Export Company [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.00% | |
Adams International Ltd. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.00% | |
Oryantal Tutun Paketleme [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | |
China Brasil Tobacos Exportadora SA [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.00% | 49.00% |
Equity method investment, ownership percentage sold | 51.00% | |
Purilum LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | |
Minimum | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets and liabilities estimated useful lives | 1 year | |
Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets and liabilities estimated useful lives | 10 years |
Subsequent Event (Details)
Subsequent Event (Details) $ in Thousands | Jul. 06, 2016USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 100,000 |
Subsequent Event Downgrade of C
Subsequent Event Downgrade of Company's Corporate Credit Rating (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Subsequent Events [Abstract] | |
Available credit line and cash | $ 643,365 |
Cash and cash equivalents | 158,211 |
Short-term Debt [Line Items] | |
Available borrowing capacity | $ 485,154 |
Notes Payable to Banks | Minimum | |
Short-term Debt [Line Items] | |
Debt instrument, term | 180 days |
Notes Payable to Banks | Maximum | |
Short-term Debt [Line Items] | |
Debt instrument, term | 270 days |
Letter of Credit | |
Short-term Debt [Line Items] | |
Available borrowing capacity | $ 10,713 |
Senior Secured Second Lien Notes, 9.875% | Notes Payable to Banks | |
Short-term Debt [Line Items] | |
Stated interest rate | 9.875% |
U.S. Revolving Credit Facility | Domestic Line of Credit | |
Short-term Debt [Line Items] | |
Available borrowing capacity | $ 10,259 |
Foreign Seasonal Credit Lines | Foreign Line of Credit | |
Short-term Debt [Line Items] | |
Available borrowing capacity | $ 474,895 |
Restatement of Previously Rep78
Restatement of Previously Reported Financial Information - Adjustments to Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Total current assets | $ 1,425,923 | $ 1,490,358 | $ 1,435,873 | |
Total non-current assets | 200,315 | 157,818 | ||
Total assets | 1,918,698 | 1,968,198 | 1,829,018 | |
Non-current liabilities | 818,300 | 1,018,700 | 995,896 | |
Total equity | 241,700 | 274,672 | 172,632 | $ 194,064 |
Total liabilities and equity | 1,918,698 | 1,968,198 | 1,829,018 | |
Retained deficit | $ (177,361) | (145,856) | (237,338) | (211,388) |
Accounting Standards Update 2015-03 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Total current assets | 0 | |||
Total non-current assets | (9,875) | (11,272) | ||
Total assets | (9,875) | (11,272) | ||
Non-current liabilities | (9,875) | (11,272) | ||
Total equity | 0 | |||
Total liabilities and equity | (9,875) | (11,272) | ||
Retained deficit | 0 | 0 | ||
As Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Total current assets | 1,427,269 | |||
Total non-current assets | 210,190 | 169,090 | ||
Total assets | 1,978,073 | 1,831,686 | ||
Non-current liabilities | 1,028,575 | 995,360 | ||
Total equity | 175,836 | |||
Total liabilities and equity | 1,978,073 | 1,831,686 | ||
Retained deficit | (234,134) | (208,184) | ||
Restatement Adjustment | Inventory and Tax Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Total current assets | (3,204) | |||
Total non-current assets | 0 | 0 | ||
Total assets | 0 | (3,204) | ||
Non-current liabilities | 0 | 0 | ||
Total equity | (3,204) | |||
Total liabilities and equity | 0 | (3,204) | ||
Retained deficit | (3,204) | (3,204) | ||
Restatement Adjustment | Reclassifications | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Total current assets | 11,808 | |||
Total non-current assets | 0 | 0 | ||
Total assets | 0 | 11,808 | ||
Non-current liabilities | 0 | 11,808 | ||
Total equity | 0 | |||
Total liabilities and equity | $ 0 | 11,808 | ||
Retained deficit | $ 0 | $ 0 |