GUARANTEES

In certain markets, the Company guarantees bank loans to suppliers to finance their crops. Under long-term arrangements, the Company may also guarantee financing to suppliers for the 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 South America. The following summarizes amounts guaranteed and the fair value of those guarantees:



	June 30, 2018		June 30, 2017		March 31, 2018
Amounts guaranteed (not to exceed)	$	153,347	$	195,840	$	150,900
Amounts outstanding under guarantee	84,116		116,257		126,835
Fair value of guarantees	3,544		6,388		5,864

Of the guarantees outstanding at June 30, 2018, 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. Rural credit financing repayment is due to local banks based on contractual due dates. As of June 30, 2018 and 2017 and March 31, 2018, respectively, the Company had balances of $18,652, $24,142, and $14,807 due to local banks on behalf of suppliers included in accounts payable in the condensed consolidated balance sheets.