Operating Segments

6 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Operating Segments

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 September 30,						Six Months Ended September 30,
(in thousands of dollars)	2014			2013			2014			2013
SALES AND OTHER OPERATING REVENUES
Flue-cured and burley leaf tobacco operations:
North America	$	53,308		$	80,967		$	85,006		$	145,118
Other regions (1)	371,669			530,610			569,241			826,870
Subtotal	424,977			611,577			654,247			971,988
Other tobacco operations (2)	39,139			39,292			81,341			112,409
Consolidated sales and other operating revenues	$	464,116		$	650,869		$	735,588		$	1,084,397
OPERATING INCOME
Flue-cured and burley leaf tobacco operations:
North America	$	4,278		$	8,539		$	5,957		$	10,894
Other regions (1)	21,661			42,454			11,086			37,270
Subtotal	25,939			50,993			17,043			48,164
Other tobacco operations (2)	2,640			(1,699		)	3,900			7,508
Segment operating income	28,579			49,294			20,943			55,672
Deduct: Equity in pretax loss (earnings) of unconsolidated affiliates (3)	(3,317		)	1,563			(3,918		)	34
Restructuring costs(4)	(3,350		)	(1,308		)	(3,350		)	(1,308		)
Add: Other income (5)	—			—			—			81,619
Consolidated operating income	$	21,912		$	49,549		$	13,675		$	136,017

⁽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⁾  Equity in pretax (earnings) loss of unconsolidated affiliates is included in segment operating income (Other Tobacco Operations segment), but is reported below consolidated operating income and excluded from that total in the consolidated statements of income and comprehensive income.

⁽⁴⁾  Restructuring costs are excluded from segment operating income, but are included in consolidated operating income in the consolidated statements of income and comprehensive income.

⁽⁵⁾  Other income represents the gain on the favorable outcome of the IPI tax credit case in Brazil. This item is excluded from segment operating income, but is included in consolidated operating income in the consolidated statements of income and comprehensive income.