Operating Segments

3 Months Ended

Jun. 30, 2020

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 (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)	2020			2019
SALES AND OTHER OPERATING REVENUES
Flue-Cured and Burley Leaf Tobacco Operations:
North America	$	39,916		$	27,659
Other Regions (1)	204,733			202,065
Subtotal	244,649			229,724
Other Tobacco Operations (2)	71,162			67,191
Consolidated sales and other operating revenue	$	315,811		$	296,915
OPERATING INCOME
Flue-Cured and Burley Leaf Tobacco Operations:
North America	$	1,042		$	890
Other Regions (1)	(4,286		)	(3,815		)
Subtotal	(3,244		)	(2,925		)
Other Tobacco Operations (2)	7,592			10,479
Segment operating income	4,348			7,554
Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates (3)	7			(40		)
Add: Other income (loss)(4)	4,173			—
Consolidated operating income	$	8,528		$	7,514

⁽¹⁾  Includes South America, Africa, Europe, and Asia regions, as well as inter-region eliminations.

⁽²⁾  Includes Dark Air-Cured, Special Services (including FruitSmart, Inc.), 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.

⁽⁴⁾ 

Other income represents the reversal of a portion of the contingent consideration liability associated with the acquisition of FruitSmart, Inc.