v3.25.4
Fair Value Measurements
 9 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
Universal measures certain financial and nonfinancial assets and liabilities at fair value based on applicable accounting guidance. The financial assets and liabilities measured at fair value include money market funds, trading securities associated with deferred compensation plans, interest rate swap agreements, and forward foreign currency exchange contracts. The application of the fair value guidance to nonfinancial assets and liabilities primarily includes the determination of fair values for goodwill and long-lived assets when indicators of potential impairment are present.
    Under the accounting guidance, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The framework for measuring fair value is based on a fair value hierarchy that distinguishes between observable inputs and unobservable inputs. Observable inputs are based on market data obtained from independent sources. Unobservable inputs require the Company to make its own assumptions about the value placed on an asset or liability by market participants because little or no market data exists.
There are three levels within the fair value hierarchy:
LevelDescription
1quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date;
2quoted prices in active markets for similar assets or liabilities, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability; and
3unobservable inputs for the asset or liability.
    As permitted under the accounting guidance, the Company uses net asset value per share ("NAV") as a practical expedient to measure the fair value of its money market funds. The fair values for those funds are presented under the heading "NAV" in the tables that follow in this disclosure. In measuring the fair value of liabilities, the Company considers the risk of
non-performance in determining fair value. Universal has not elected to report at fair value any financial instruments or any other assets or liabilities that are not required to be reported at fair value under current accounting guidance.
Recurring Fair Value Measurements
At December 31, 2025 and 2024, and at March 31, 2025, the Company had certain financial assets and financial liabilities that were required to be measured and reported at fair value on a recurring basis. These assets and liabilities are listed in the tables below and are classified based on how their values were determined under the fair value hierarchy or the NAV practical expedient:
December 31, 2025
Fair Value Hierarchy
(in thousands of dollars)NAVLevel 1Level 2Level 3Total
Assets
Money market funds
$149 $— $— $— $149 
Trading securities associated with deferred compensation plans
— 12,191 — — 12,191 
Foreign currency exchange contracts
— — 1,216 — 1,216 
Total financial assets measured and reported at fair value
$149 $12,191 $1,216 $— $13,556 
Liabilities
Interest rate swap agreements
$— $— $1,271 $— $1,271 
Foreign currency exchange contracts
— — 185 — 185 
Total financial liabilities measured and reported at fair value
$— $— $1,456 $— $1,456 
December 31, 2024
Fair Value Hierarchy
(in thousands of dollars)NAVLevel 1Level 2Level 3Total
Assets
Money market funds
$149 $— $— $— $149 
Trading securities associated with deferred compensation plans
— 11,930 — — 11,930 
Interest rate swap agreements
— — 6,310 — 6,310 
Foreign currency exchange contracts
— — 628 — 628 
Total financial assets measured and reported at fair value
$149 $11,930 $6,938 $— $19,017 
Liabilities
Foreign currency exchange contracts
$— $— $17,235 $— $17,235 
Total financial liabilities measured and reported at fair value
$— $— $17,235 $— $17,235 
March 31, 2025
Fair Value Hierarchy
(in thousands of dollars)NAVLevel 1Level 2Level 3Total
Assets
Money market funds
$149 $— $— $— $149 
Trading securities associated with deferred compensation plans
— 11,313 — — 11,313 
Interest rate swap agreements
— — 1,783 — 1,783 
Foreign currency exchange contracts
— — 302 — 302 
Total financial assets measured and reported at fair value
$149 $11,313 $2,085 $— $13,547 
Liabilities
Foreign currency exchange contracts
$— $— $6,668 $— $6,668 
Total financial liabilities measured and reported at fair value
$— $— $6,668 $— $6,668 
Money market funds
The fair value of money market funds, which are reported in cash and cash equivalents in the consolidated balance sheets, is based on NAV, which is the amount at which the funds are redeemable and is used as a practical expedient for fair value. These funds are not classified in the fair value hierarchy, but are disclosed as part of the fair value table above.
Trading securities associated with deferred compensation plans
Trading securities represent mutual fund investments that are matched to employee deferred compensation obligations. These investments are bought and sold as employees defer compensation, receive distributions, or make changes in the funds underlying their accounts. Quoted market prices (Level 1) are used to determine the fair values of the mutual funds.
Interest rate swap agreements
The fair values of interest rate swap agreements are determined based on dealer quotes using a discounted cash flow model matched to the contractual terms of each instrument. Since inputs to the model are observable and significant judgment is not required in determining the fair values, interest rate swaps are classified within Level 2 of the fair value hierarchy.
Foreign currency exchange contracts
The fair values of forward and option foreign currency exchange contracts are also determined based on dealer quotes using a discounted cash flow model matched to the contractual terms of each instrument. Since inputs to the model are observable and significant judgment is not required in determining the fair values, forward and option foreign currency exchange contracts are classified within Level 2 of the fair value hierarchy.
Long-term Debt
The following table summarizes the fair and carrying value of the Company’s long-term debt, and if applicable any current portion, at each of the balance sheet dates December 31, 2025, and 2024 and March 31, 2025:
(in millions of dollars)December 31, 2025December 31, 2024March 31, 2025
Fair market value of long term obligations$615 $618 $616 
Carrying value of long term obligations$620 $620 $620 
The Company estimates the fair value of its long-term debt using Level 2 inputs which are based upon quoted market prices for the same or similar obligations or on calculations that are based on the current interest rates available to the Company for debt of similar terms and maturities.
Nonrecurring Fair Value Measurements
    Assets and liabilities that are measured at fair value on a nonrecurring basis primarily relate to long-lived assets, right-of-use operating lease assets and liabilities, goodwill and intangibles, and other current and noncurrent assets. These assets and liabilities fair values are also evaluated for impairment when potential indicators of impairment exist. Accordingly, the nonrecurring measurement of the fair value of these assets and liabilities are classified within Level 3 of the fair value hierarchy.
Long-Lived Assets
The Company reviews long-lived assets for impairment whenever events, changes in business conditions, or other circumstances provide an indication that such assets may be impaired.
Consolidation of tobacco sheet operations
As discussed in Note 2, the Company initiated a plan to consolidate the European Sheet tobacco operations into the Company's facility in the Netherlands. The Company is in the process of winding down its operations in Germany, that resulted in an impairment charge of $4.9 million for the long-lived assets in fiscal year 2025, to reduce their carrying value to fair value. The long-lived assets primarily consist of a processing facility, machinery and equipment, and administrative offices. After reassessing the fair value of the long-lived assets associated with the operations in Germany, an additional $1.0 million impairment charge was recognized during three-month period ended June 30, 2025