Operating Segments

6 Months Ended

Sep. 30, 2015

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)	2015			2014			2015			2014
SALES AND OTHER OPERATING REVENUES
Flue-Cured and Burley Leaf Tobacco Operations:
North America	$	49,421		$	53,308		$	97,993		$	85,006
Other Regions (1)	371,032			371,669			548,433			569,241
Subtotal	420,453			424,977			646,426			654,247
Other Tobacco Operations (2)	35,929			39,139			85,375			81,341
Consolidated sales and other operating revenues	$	456,382		$	464,116		$	731,801		$	735,588
OPERATING INCOME
Flue-Cured and Burley Leaf Tobacco Operations:
North America	$	3,783		$	4,278		$	7,199		$	5,957
Other Regions (1)	34,202			21,661			26,355			11,086
Subtotal	37,985			25,939			33,554			17,043
Other Tobacco Operations (2)	145			2,640			1,053			3,900
Segment operating income	38,130			28,579			34,607			20,943
Deduct: Equity in pretax earnings of unconsolidated affiliates (3)	(846		)	(3,317		)	(230		)	(3,918		)
Restructuring and impairment costs (4)	—			(3,350		)	(2,389		)	(3,350		)
Consolidated operating income	$	37,284		$	21,912		$	31,988		$	13,675

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