Restructuring and Asset Impairment Charges

12 Months Ended

Mar. 31, 2012

Restructuring and Related Activities [Abstract]

Restructuring and Asset Impairment Charges

Restructuring and Asset Impairment Charges

In response to shifting supply and demand balances and the changing business models of the Company’s customers, the Company began implementing several strategic initiatives in fiscal 2011. The Company began realigning the organization by transitioning the United Kingdom finance and logistics functions to the United States and closing the Netherlands office. In December 2010, new leadership was appointed to better position the Company for the future. In addition, origin and corporate operations were reviewed and initiatives were implemented to increase operational efficiency and effectiveness. As a result, total charges of $246 and $14,824 were incurred in connection with the reduction in the global workforce for the years ended March 31, 2012 and 2011, respectively, including an impact on the Company’s pension plans of $1,271 in fiscal 2011. Non-current asset impairment charges of $760 incurred in fiscal 2012 are primarily for non-tobacco internally developed software intangible assets and real property in Macedonia. Other restructuring charges of $8,643 incurred in fiscal 2011 primarily relate to the relocation of factory equipment in Brazil. As of March 31, 2012, these initiatives are substantially complete.

The following table summarizes the restructuring actions as of March 31, 2012, 2011 and 2010:

	Years Ended March 31,
Restructuring and Asset Impairment Charges	2012			2011			2010
Employee separation and other cash charges:
Beginning balance	$	6,193		$	—		$	103
Period Charges:
Employee separation charges	215			13,474			—
Other cash charges	31			5,863			—
Total employee separation and other cash charges	246			19,337			—
Payments through March 31	(4,479		)	(13,144		)	(103		)
Ending balance March 31	$	1,960		$	6,193		$	—
Asset impairment and other non-cash charges	760			4,130			—
Total restructuring and asset impairment charges	$	1,006		$	23,467		$	—

          The following table summarizes cash payments for employee separation and other cash charges for the years ended March 31, 2012, 2011 and 2010.

	Year Ending March 31,								Total
Cash Payments by Year	2012			2011			2010		Payments
Employee separation and other cash charges	$	246		$	19,337		$	—
Cash paid 2011	—			(13,144		)	—		$	(13,144	)
Cash paid 2012	(62		)	(4,417		)	—		$	(4,479	)
Balances at March 31, 2012	$	184		$	1,776		$	—

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA(continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

Alliance One International, Inc. and Subsidiaries

(in thousands)

Note 4 – Restructuring and Asset Impairment Charges (continued)

          The following table summarizes the employee separation and other cash charges recorded in the Company’s South America and Other Regions segments as of March 31, 2012, 2011 and 2010:

	Years Ended March 31,
Employee Separation and Other Cash Charges	2012			2011			2010
Beginning balance:	$	6,193		$	—		$	103
South America	1,073			—			—
Other regions	5,120			—			103
Period charges:	$	246		$	19,337		$	—
South America	75			7,589			—
Other regions	171			11,748			—
Payments through March 31:	$	(4,479	)	$	(13,144	)	$	(103	)
South America	(965		)	(6,516		)	—
Other regions	(3,514		)	(6,628		)	(103		)
Ending balance March 31:	$	1,960		$	6,193		$	—
South America	183			1,073			—
Other regions	1,777			5,120			—

          Non-cash charges related to the South America segment were $2,860 during the year ended March 31, 2011. Non-cash charges related to the Other Regions segment were $760 and $1,270 during the years ended March 31, 2012 and 2011, respectively.