Operating Segments

3 Months Ended

Jun. 30, 2012

Operating Segments [Abstract]

Operating Segments

NOTE 11. OPERATING SEGMENTS

The principal approach used by management to evaluate the Company’s performance is by geographic region, although the dark air-cured and oriental tobacco businesses are each evaluated on the basis of their worldwide operations. The Company evaluates the performance of its segments based on operating income after allocated overhead expenses (excluding significant non-recurring charges or credits), plus equity in the pretax earnings of unconsolidated affiliates.

Operating results for the Company’s reportable segments for each period presented in the consolidated statements of income were as follows:

	Three Months Ended June 30,
(in thousands of dollars)	2012			2011
SALES AND OTHER OPERATING REVENUES
Flue-cured and burley leaf tobacco operations:
North America	$	60,486		$	58,629
Other regions (1)	337,533			358,650
Subtotal	398,019			417,279
Other tobacco operations (2)	63,372			62,186
Consolidated sales and other operating revenues	$	461,391		$	479,465
OPERATING INCOME
Flue-cured and burley leaf tobacco operations:
North America	$	978		$	5,577
Other regions (1)	34,841			20,909
Subtotal	35,819			26,486
Other tobacco operations (2)	8,377			2,805
Segment operating income	44,196			29,291
Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates (3)	(1,369		)	3,489
Restructuring costs (4)	—			(6,859		)
Add: Other income (4)	—			9,592
Consolidated operating income	$	42,827		$	35,513

(1) Includes South America, Africa, Europe, and Asia regions, as well as inter-region eliminations.

(2) Includes Dark Air-Cured, Special Services, and Oriental, as well as inter-company eliminations. Sales and other operating revenues for this reportable segment include limited amounts for Oriental because its financial results consist principally of equity in the pretax earnings of an unconsolidated affiliate.

(3) Item is included in segment operating income, but is not included in consolidated operating income.

(4) Item is not included in segment operating income, but is included in consolidated operating income.