Segment Information

12 Months Ended

Mar. 31, 2013

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 approximately 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.

          Management evaluates performance using information included in management reports. Beginning April 1, 2012, management began evaluating its Value Added Services business as a separate operating segment from its five geographic operating segments of Africa, Asia, Europe, North America and South America. Value Added Services is comprised of the Company's crushed rolled expanded stem (CRES), cut rag, toasted burley and other specialty products and services. In reviewing these operations, the Company concluded that the economic characteristics of South America and Value Added Services were dissimilar from the other operating segments. Based on this fact, the Company is disclosing South America and Value Added Services 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	2013		2012		2011
Sales and other operating revenues:
	South America	$	684,865	$	622,923	$	714,371
	Value Added Services	130,382		155,928		148,090
	Other Regions	1,428,569		1,371,916		1,231,601
	Total revenue	$	2,243,816	$	2,150,767	$	2,094,062
Operating income:
	South America	$	69,565	$	47,630	$	62,577
	Value Added Services	15,157		20,666		20,277
	Other Regions	75,550		86,517		50,020
Total operating income		160,272		154,813		132,874
	Debt retirement expense	1,195		—		4,584
	Interest expense	114,557		106,804		102,696
	Interest income	6,547		6,149		7,255
Income before income taxes and other items		$	51,067	$	54,158	$	32,849

		Years Ended March 31,
	Analysis of Segment Assets	2013		2012		2011
Segment assets:
	South America	$	616,946	$	534,169	$	690,428
	Value Added Services	197,959		118,138		98,085
	Other Regions	1,096,674		1,297,538		1,019,817
	Total assets	$	1,911,579	$	1,949,845	$	1,808,330
Trade and other receivables, net
	South America	$	35,627	$	57,223	$	72,926
	Value Added Services	15,129		20,408		20,367
	Other Regions	173,466		225,459		186,611
	Total trade and other receivables, net	$	224,222	$	303,090	$	279,904
Goodwill:
	Value Added Services	$	1,202	$	1,202	$	1,202
	Other Regions	1,592		1,592		1,592
	Total Goodwill	$	2,794	$	2,794	$	2,794
Equity in net assets of investee companies:
	Other Regions	$	23,986	$	23,346	$	24,753
Depreciation and amortization:
	South America	$	12,107	$	11,242	$	8,933
	Value Added Services	1,306		824		716
	Other Regions	20,398		21,077		18,567
	Total depreciation and amortization	$	33,811	$	33,143	$	28,216
Capital expenditures:
	South America	$	5,038	$	15,655	$	49,289
	Value Added Services	4,048		4,030		—
	Other Regions	33,717		22,662		21,319
	Total capital expenditures	$	42,803	$	42,347	$	70,608

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		2013		2012		2011
Sales and Other Operating Revenues:
	United States	$	423,617	$	428,039	$	302,992
	China	308,935		207,086		167,676
	Belgium	185,668		221,295		274,534
	Russia	147,283		92,201		153,646
	Indonesia	109,983		72,411		81,808
	Germany	93,990		98,642		123,858
	Netherlands	79,395		69,235		107,908
	Poland	58,537		51,723		75,429
	Egypt	54,863		81,156		44,906
	Other	781,545		828,979		761,305
		$	2,243,816	$	2,150,767	$	2,094,062

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., Imperial Tobacco Group PLC and China Tobacco International Inc. for the year ended March 31, 2013; 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 year ended March 31, 2011.

		Years Ended March 31,
Property, Plant and Equipment by Location		2013		2012		2011
Property, Plant and Equipment, Net:
	United States	$	45,213	$	37,658	$	36,607
	Brazil	99,492		104,882		85,498
	Turkey	25,666		26,362		28,512
	Malawi	28,683		27,918		31,077
	Tanzania	24,568		22,490		14,212
	Europe	20,370		18,910		18,758
	Argentina	7,909		8,071		8,714
	Asia	8,436		9,318		9,839
	Other	10,641		4,070		3,871
		$	270,978	$	259,679	$	237,088