Segment Information

12 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company purchases, processes, sells, and stores leaf tobacco. Tobacco is purchased in more than 35 countries and shipped to more than 90 countries. The sales, logistics and billing functions of the Company are primarily concentrated in service centers outside of the producing areas to facilitate access to our major customers. Within certain quality and grade constraints, tobacco is fungible and, subject to these constraints, customers may choose to fulfill their needs from any of the areas where the Company purchases tobacco.

          Based upon management’s evaluation of performance using information included in management reports, the Company believes it has five operating segments. The five operating segments are the geographic segments: Africa, Asia, Europe, North America and South America. In reviewing these operations, the Company concluded that the economic characteristics of South America were dissimilar from the other operating segments. Based on this fact, the Company is disclosing South America separately and has aggregated the remaining four operating segments, Africa, Asia, Europe and North America into one reportable segment “Other Regions”. The Company concluded that these operating segments have similar long term financial performance and similar economic characteristics in each of the following areas:

a. the nature of the products and services;

b. the nature of the production processes;

c. the type or class of customer for their products and services;

d. the methods used to distribute their products or provide their services; and

e. the nature of the regulatory environment.

          Selling, logistics, billing, and administrative overhead, including depreciation, which originates primarily from the Company’s corporate and sales offices, are allocated to the segments based upon segment operating income. The Company reviews performance data from purchase through sale based on the source of the product and all intercompany transactions are allocated to the region that either purchases or processes the tobacco.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA(continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

Alliance One International, Inc. and Subsidiaries

(in thousands)

Note 14 - Segment Information (continued)

		Years Ended March 31,
	Analysis of Segment Operations	2012		2011		2010
Sales and other operating revenues:
	South America	$	622,923	$	714,371	$	828,572
	Other Regions	1,527,844		1,379,691		1,479,727
	Total revenue	$	2,150,767	$	2,094,062	$	2,308,299
Operating income:
	South America	$	47,630	$	62,577	$	84,191
	Other Regions	107,183		70,297		139,623
Total operating income		154,813		132,874		223,814
	Debt retirement expense	—		4,584		40,353
	Interest expense	106,804		102,696		113,819
	Interest income	6,149		7,255		4,550
Income before income taxes and other items		$	54,158	$	32,849	$	74,192

		Years Ended March 31,
	Analysis of Segment Assets	2012		2011		2010
Segment assets:
	South America	$	534,169	$	690,428	$	806,088
	Other Regions	1,415,676		1,117,902		1,105,111
	Total assets	$	1,949,845	$	1,808,330	$	1,911,199
Trade and other receivables, net
	South America	$	57,223	$	72,926	$	41,920
	Other Regions	245,867		206,978		165,467
	Total trade and other receivables, net	$	303,090	$	279,904	$	207,387
Goodwill:
	Other Regions	$	2,794	$	2,794	$	2,794
Equity in net assets of investee companies:
	Other Regions	$	23,346	$	24,753	$	22,290
Depreciation and amortization:
	South America	$	11,242	$	8,933	$	9,206
	Other Regions	21,901		19,283		19,907
	Total depreciation and amortization	$	33,143	$	28,216	$	29,113
Capital expenditures:
	South America	$	15,655	$	49,289	$	6,380
	Other Regions	26,692		21,319		11,072
	Total capital expenditures	$	42,347	$	70,608	$	17,452

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA(continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

Alliance One International, Inc. and Subsidiaries

(in thousands)

Note 14 - Segment Information (continued)

          Geographic information as to sales and other operating revenues is based on the destination of the product shipped. The Belgium destination represents a customer owned storage and distribution center from which the tobacco will be shipped on to manufacturing facilities.

		Years Ended March 31,
Sales by Destination		2012		2011		2010
Sales and Other Operating Revenues:
	United States	$	428,039	$	302,992	$	323,521
	Belgium	221,295		274,534		491,024
	China	207,086		167,676		129,810
	Russia	92,201		153,646		132,565
	Germany	98,642		123,858		121,023
	Egypt	81,156		44,906		99,733
	Netherlands	69,235		107,908		123,705
	Indonesia	72,411		81,808		73,422
	Other	880,702		836,734		813,496
		$	2,150,767	$	2,094,062	$	2,308,299

Sales and Other Operating Revenues to Major Customers

Including their respective affiliates, accounting for more than 10% of total sales and other operating revenues were each of Philip Morris International, Inc., Japan Tobacco Inc. and Imperial Tobacco Group PLC for the year ended March 31, 2012; and Philip Morris International, Inc., Japan Tobacco Inc. and British American Tobacco p.l.c. for the years ended March 31, 2011 and 2010.

		Years Ended March 31,
Property, Plant and Equipment by Location		2012		2011		2010
Property, Plant and Equipment, Net:
	United States	$	37,658	$	36,607	$	37,943
	Brazil	104,882		85,498		46,651
	Turkey	26,362		28,512		29,850
	Malawi	27,918		31,077		30,797
	Tanzania	22,490		14,212		13,369
	Europe	18,910		18,758		14,300
	Argentina	8,071		8,714		9,427
	Asia	9,318		9,839		6,897
	Other	4,070		3,871		3,990
		$	259,679	$	237,088	$	193,224