Equity in Net Assets of Investee Companies

12 Months Ended

Mar. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Equity in Net Assets of Investee Companies

The Company has equity method investments in companies located in Asia which purchase and process tobacco. The Asia investees and ownership percentages are as follows: Transcontinental Leaf Tobacco India Private Ltd. (India) 49%, Siam Tobacco Export Company (Thailand) 49%, and Adams International Ltd. (Thailand) 49%. On March 10, 2014, the Company purchased a 50% equity based interest in Oryantal Tutun Paketleme which processes tobacco in Turkey. On March 26, 2014, the Company completed the formation of a new joint venture in Brazil with the disposition of 51% interest in China Brasil Tobacos Exportadora SA (“CBT”). The Company retained a 49% equity based interest in CBT which purchases and processes tobacco. 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. For the year ended March 31, 2015, the Company’s earnings from the equity method investment were reduced by amortization expense of $2,814 related to these basis differences. At March 31, 2015, the basis difference was $13,177. On April 2, 2014 the Company completed the purchase of a 50% interest in Purilium, LLC, a U.S. company that develops, produces and sells consumable e-liquids to manufacturers and distributors of e-vapor products. Summarized financial information for these investees for fiscal years ended March 31, 2015, 2014 and 2013 follows:



	Years Ended March 31,
Operations Statement Information	2015		2014		2013
Sales	$	297,474	$	115,059	$	125,621
Gross profit	33,246		10,556		13,888
Net income (loss)	11,394		122		3,341
Company's dividends received	—		843		998



	March 31,
Balance Sheet Information	2015		2014
Current assets	$	158,856	$	139,162
Property, plant and equipment and other assets	63,385		59,086
Current liabilities	127,793		119,452
Long-term obligations and other liabilities	12,315		8,899