Operating Segments

3 Months Ended

Jun. 30, 2017

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 (loss) after allocated overhead expenses (excluding significant non-recurring charges or credits), plus equity in the pretax earnings (loss) of unconsolidated affiliates.

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



	Three Months Ended June 30,
(in thousands of dollars)	2017			2016

SALES AND OTHER OPEATING REVENUES
Flue-Cured and Burley Leaf Tobacco Operations:
North America	$	53,324		$	72,682
Other Regions ⁽¹⁾	184,412			178,016
Subtotal	237,736			250,698
Other Tobacco Operations ⁽²⁾	46,886			44,777
Consolidated sales and other operating revenue	$	284,622		$	295,475

OPERATING INCOME (LOSS)
Flue-Cured and Burley Leaf Tobacco Operations:
North America	$	2,365		$	6,848
Other Regions ⁽¹⁾	4,077			(17,017		)
Subtotal	6,442			(10,169		)
Other Tobacco Operations ⁽²⁾	(322		)	2,037
Segment operating income (loss)	6,120			(8,132		)
Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates ⁽³⁾	435			130
Consolidated operating income (loss)	$	6,555		$	(8,002	)


⁽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 the business is accounted for on the equity method and its financial results consist principally of equity in the pretax earnings (loss) of an unconsolidated affiliate.


⁽³⁾	Equity in pretax earnings (loss) of unconsolidated affiliates is included in segment operating income (loss) (Other Tobacco Operations segment), but is reported below consolidated operating income (loss) and excluded from that total in the consolidated statements of income and comprehensive income.