Operating Segments

9 Months Ended

Dec. 31, 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 December 31,						Nine Months Ended December 31,
(in thousands of dollars)	2014			2013			2014			2013
SALES AND OTHER OPERATING REVENUES
Flue-cured and burley leaf tobacco operations:
North America	$	118,844		$	105,430		$	203,850		$	250,548
Other regions (1)	604,100			616,038			1,173,341			1,442,908
Subtotal	722,944			721,468			1,377,191			1,693,456
Other tobacco operations (2)	35,110			46,334			116,451			158,743
Consolidated sales and other operating revenues	$	758,054		$	767,802		$	1,493,642		$	1,852,199
OPERATING INCOME
Flue-cured and burley leaf tobacco operations:
North America	$	15,864		$	7,728		$	21,821		$	18,622
Other regions (1)	78,958			65,527			90,044			102,797
Subtotal	94,822			73,255			111,865			121,419
Other tobacco operations (2)	(1,316		)	1,373			2,584			8,881
Segment operating income	93,506			74,628			114,449			130,300
Deduct: Equity in pretax loss (earnings) of unconsolidated affiliates (3)	527			(1,789		)	(3,391		)	(1,755		)
Restructuring costs(4)	(1,143		)	(3,400		)	(4,493		)	(4,708		)
Add: Other income (5)	—			—			—			81,619
Consolidated operating income	$	92,890		$	69,439		$	106,565		$	205,456

⁽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.