Equity in Net Assets of Investee Companies

12 Months Ended

Mar. 31, 2016

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: Alliance One Industries 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, 2016, the Company’s earnings from the equity method investment were reduced by amortization expense of $1,554 related to these basis differences. At March 31, 2016, the basis difference was $11,622. On April 2, 2014 the Company completed the purchase of 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. Summarized combined financial information for these investees for fiscal years ended March 31, 2016, 2015 and 2014 follows:



	Years Ended March 31,
Operations Statement Information	2016		2015		2014
Sales	$	274,183	$	297,474	$	115,059
Gross profit	42,143		33,246		10,556
Net income	15,254		11,394		122
Company's dividends received	1,887		—		843



	March 31,
Balance Sheet Information	2016		2015
Current assets	$	118,745	$	158,856
Property, plant and equipment and other assets	61,845		63,385
Current liabilities	77,908		127,793
Long-term obligations and other liabilities	10,222		12,315