Universal regularly reviews its business for opportunities to realize efficiencies, reduce costs, and realign its operations in response to business changes. Restructuring and impairment costs are periodically incurred in connection with those activities.

In fiscal year 2025, the Company began consolidating its European sheet tobacco operations into the Company's facility in the Netherlands, by initiating a wind-down of activities at its sheet facility in Germany. During the three months ended June 30, 2025, the Company recognized $1 million of impairment costs related to the consolidation of the sheet tobacco operations. The Company also incurred $0.1 million of termination and impairment costs in other areas of the Tobacco Operations segment in the three months ended June 30, 2025.

A summary of the restructuring and impairment costs recorded for the three months ended June 30, 2025 follows:


	Three Months Ended June 30,
(in thousands)		2025

Restructuring costs:
Employee termination benefits		$	122
Other		—
Total restructuring costs		122
Impairment costs:
Property, plant and equipment		1,000

Total impairment costs		1,000
Total restructuring and impairment costs		$	1,122