Operating Segments

6 Months Ended

Sep. 30, 2018

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 (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 September 30,						Six Months Ended September 30,
(in thousands of dollars)	2018			2017			2018		2017

SALES AND OTHER OPERATING REVENUES
Flue-Cured and Burley Leaf Tobacco Operations:
North America	$	67,782		$	58,668		$	183,338	$	111,992
Other Regions ⁽¹⁾	398,087			381,164			606,019		565,576
Subtotal	465,869			439,832			789,357		677,568
Other Tobacco Operations ⁽²⁾	73,735			48,416			129,966		95,302
Consolidated sales and other operating revenue	$	539,604		$	488,248		$	919,323	$	772,870

OPERATING INCOME (LOSS)
Flue-Cured and Burley Leaf Tobacco Operations:
North America	$	8,296		$	7,866		$	17,248	$	10,196
Other Regions ⁽¹⁾	45,562			37,386			43,545		41,330
Subtotal	53,858			45,252			60,793		51,526
Other Tobacco Operations ⁽²⁾	(102		)	220			1,871		(112		)
Segment operating income	53,756			45,472			62,664		51,414
Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates ⁽³⁾	614			(667		)	75		(232		)
Consolidated operating income	$	54,370		$	44,805		$	62,739	$	51,182


⁽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 (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.