Operating Segments

6 Months Ended

Sep. 30, 2019

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)	2019			2018			2019			2018

SALES AND OTHER OPERATING REVENUES
Flue-Cured and Burley Leaf Tobacco Operations:
North America	$	57,612		$	67,782		$	85,271		$	183,338
Other Regions ⁽¹⁾	355,757			398,087			557,822			606,019
Subtotal	413,369			465,869			643,093			789,357
Other Tobacco Operations ⁽²⁾	62,552			73,735			129,743			129,966
Consolidated sales and other operating revenue	$	475,921		$	539,604		$	772,836		$	919,323

OPERATING INCOME
Flue-Cured and Burley Leaf Tobacco Operations:
North America	$	5,472		$	8,296		$	6,362		$	17,248
Other Regions ⁽¹⁾	32,525			45,562			28,710			43,545
Subtotal	37,997			53,858			35,072			60,793
Other Tobacco Operations ⁽²⁾	7,512			(102		)	17,991			1,871
Segment operating income	45,509			53,756			53,063			62,664
Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates ⁽³⁾	(2,310		)	614			(2,350		)	75
Consolidated operating income	$	43,199		$	54,370		$	50,713		$	62,739


⁽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 unconsolidated affiliates.

⁽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.