Operating Segments

3 Months Ended

Jun. 30, 2011

Operating Segments

Operating Segments

NOTE 12.   OPERATING SEGMENTS

The principal approach used by management to evaluate the Company's performance is by geographic region, although some components of the business are 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 pretax earnings of unconsolidated affiliates.

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

	Three Months Ended  June 30,
(in thousands of dollars)	2011			2010
SALES AND OTHER OPERATING REVENUES
Flue-cured and burley leaf tobacco operations:
North America	$	58,629		$	63,167
Other regions (1)		358,650			401,819
Subtotal		417,279			464,986
Other tobacco operations (2)		62,186			73,930
Consolidated sales and other operating revenues	$	479,465		$	538,916
OPERATING INCOME
Flue-cured and burley leaf tobacco operations:
North America	$	5,577		$	3,692
Other regions (1)		20,909			32,327
Subtotal		26,486			36,019
Other tobacco operations (2)		2,805			6,413
Segment operating income		29,291			42,432
Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates (3)		3,489			(378	)
Restructuring costs (4)		(6,859	)		(949	)
Add: Other income		9,592			—
Consolidated operating income	$	35,513		$	41,105

(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)  Item is included in segment operating income, but not included in consolidated operating income.

(4)  Item is not included in segment operating income, but is included in consolidated operating income.