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 in future periods. At March 31, 2016, the costs of these future initiatives is not estimable. During the fiscal year ended March 31, 2016 the Company recorded $(498) of employee severance charges and $5,723 of asset impairment charges. The asset impairment charges were incurred due to restructuring of certain operations in Africa, Bulgaria and Brazil as well as the curtailment of certain U.S. pension plans. During the fiscal year ended March 31, 2015, charges of $8,612 were incurred in connection with the reduction in the global workforce. Also during the fiscal year ended March 31, 2015, the Company recorded a $500 asset impairment charge resulting from certain machinery in a former U.S. cut rag facility as operations moved to a new facility.

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)

In prior fiscal years, the Company implemented several strategic initiatives in response to shifts in supply and demand balances and changing business models of its customers. These initiatives were substantially complete at March 31, 2014. The Company continued to focus on improving factory efficiencies and other core components of its business. As part of this focus, the Company agreed to a joint processing venture in one of its foreign locations during the three months ended June 30, 2013. As a result, the Company recorded pretax charges of $2,745 in connection with the reduction in workforce including the effect on the Company's defined benefit pension plans of $1,261 during the year ended March 31, 2014. Asset impairment charges of $756 were recorded for certain processing equipment in connection with the new venture as of March 31, 2014. As the Company continued to respond to changes in its business, additional employee separation charges of $791 and asset impairment charges of $819 were incurred during the year ended March 31, 2014.

The following table summarizes the restructuring actions as of March 31, 2016, 2015 and 2014:



	Years Ended March 31,
Restructuring and Asset Impairment Charges	2016			2015			2014
Employee separation and other cash charges:
Beginning balance	$	8,087		$	397		$	668
Period Charges:
Employee separation charges (recoveries)	(498		)	8,612			2,275
Other cash charges	662			6			—
Total employee separation and other cash charges	164			8,618			2,275
Payments	(7,853		)	(928		)	(2,546		)
Ending balance March 31	$	398		$	8,087		$	397
Asset impairment and other non-cash charges	5,724			500			2,836
Total restructuring and asset impairment charges	$	5,888		$	9,118		$	5,111

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 North America and Other Regions segments as of March 31, 2016, 2015 and 2014:



	Years Ended March 31,
Employee Separation and Other Cash Charges	2016			2015			2014
Beginning balance:	$	8,087		$	397		$	668
North America	—			—			8
Other regions	8,087			397			660
Period charges:	$	164		$	8,618		$	2,275
North America	—			—			147
Other regions	164			8,618			2,128
Payments:	$	(7,853	)	$	(928	)	$	(2,546	)
North America	—			—			(155		)
Other regions	(7,853		)	(928		)	(2,391		)
Ending balance March 31:	$	398		$	8,087		$	397
North America	—			—			—
Other regions	398			8,087			397

The following table summarizes non-cash charges for the Company's North America and Other Regions segments for fiscal years ended March 31, 2016, 2015 and 2014:



	North America	Other Regions
Years ended March 31,
2016	712	5,012
2015	500
2014		2,836