Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 29, 2014 | Jun. 28, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'RAI | ' | ' |
Entity Registrant Name | 'REYNOLDS AMERICAN INC | ' | ' |
Entity Central Index Key | '0001275283 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 536,947,152 | ' |
Entity Public Float | ' | ' | $15,000,000,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,899 | [1] | $7,962 | [1] | $8,062 | [1] | ||||||||
Net sales, related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 337 | 342 | 479 | |||||||||||
Net sales | 2,039 | 2,135 | 2,179 | 1,883 | 2,078 | 2,117 | 2,176 | 1,933 | ' | ' | ' | ' | 8,236 | 8,304 | 8,541 | |||||||||||
Costs and expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Cost of products sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,678 | [1] | 4,321 | [1] | 4,464 | [1] | ||||||||
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,389 | 1,470 | 1,606 | |||||||||||
Amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 21 | 24 | |||||||||||
Trademark and other intangible asset impairment charges | 32 | ' | ' | ' | 129 | ' | ' | ' | ' | ' | ' | ' | 32 | 129 | 48 | |||||||||||
Restructuring charge | ' | ' | ' | ' | ' | ' | ' | 149 | ' | ' | ' | ' | ' | 149 | ' | |||||||||||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,132 | [2],[3],[4] | 2,214 | [2],[3],[4] | 2,399 | [2],[3],[4] | ||||||||
Interest and debt expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 259 | 234 | 221 | |||||||||||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -7 | -11 | |||||||||||
Other expense, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 137 | 34 | 3 | |||||||||||
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,741 | 1,953 | 2,186 | |||||||||||
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,023 | 681 | 780 | |||||||||||
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,718 | $1,272 | $1,406 | |||||||||||
Basic income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net income | $0.54 | [5] | $0.84 | [5] | $0.84 | [5] | $0.92 | [5] | $0.25 | [5] | $0.75 | [5] | $0.78 | [5] | $0.47 | [5] | ' | ' | ' | ' | $3.15 | $2.25 | $2.41 | |||
Diluted income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net income | $0.54 | [5] | $0.84 | [5] | $0.84 | [5] | $0.92 | [5] | $0.25 | [5] | $0.74 | [5] | $0.78 | [5] | $0.47 | [5] | ' | ' | ' | ' | $3.14 | $2.24 | $2.40 | |||
Dividends declared per share | $0.63 | $0.63 | $0.63 | $0.59 | $0.59 | $0.59 | $0.59 | $0.56 | $0.56 | $0.53 | $0.53 | $0.53 | $2.48 | $2.33 | $2.15 | |||||||||||
[1] | Excludes excise taxes of $3,730 million, $3,923 million and $4,107 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
[2] | Includes restructuring and/or asset impairment charges of $149 million for the year ended December 31, 2012, see "Restructuring Charges" in note 4. | |||||||||||||||||||||||||
[3] | Includes trademark, goodwill and/or other intangible asset impairment charges of $32 million, $129 million and $48 million for the years ended December 31, 2013, 2012 and 2011, respectively, see "Intangible Assets" in note 3. | |||||||||||||||||||||||||
[4] | Includes NPM Adjustment credits of $478 million for RJR Tobacco and $5 million for Santa Fe for the year ended December 31, 2013, see "- Cost of Products Sold" in note 1. | |||||||||||||||||||||||||
[5] | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the quarters may not equal the total for the year. |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Excise taxes | $3,730 | $3,923 | $4,107 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $1,718 | $1,272 | $1,406 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Retirement benefits | 248 | 65 | -144 |
Unrealized gain (loss) on long-term investments, net of tax expense (benefit) (2013 - $3; 2012 - $5; 2011 - $(6)) | 5 | 7 | -12 |
Realized loss on hedging instruments, net of tax expense (benefit) (2013 - $1; 2012 - $(9)) | 1 | -14 | ' |
Cumulative translation adjustment and other, net of tax benefit (expense) (2013 - $(12); 2012 - $3; 2011 - $4) | 1 | 13 | -8 |
Comprehensive income | $1,973 | $1,343 | $1,242 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Tax expense (benefit), retirement benefits | $160 | $45 | ($95) |
Tax expense (benefit), unrealized gain (loss) on investments | 3 | 5 | -6 |
Realized loss on hedging instruments, tax expense (benefit) | 1 | -9 | ' |
Tax benefit (expense), cumulative translation adjustment | ($12) | $3 | $4 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from (used in) operating activities: | ' | ' | ' |
Net income | $1,718 | $1,272 | $1,406 |
Adjustments to reconcile to net cash flows from (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 103 | 131 | 138 |
Restructuring charge, net of cash payments | -14 | 109 | -35 |
Trademark and other intangible asset impairment charges | 32 | 129 | 48 |
Loss on early extinguishment of debt | 124 | 21 | ' |
Deferred income tax expense (benefit) | 312 | -44 | 100 |
Other changes that provided (used) cash: | ' | ' | ' |
Accounts and other receivables | -18 | 11 | 12 |
Inventories | -143 | -17 | 88 |
Related party, net | 10 | 5 | -32 |
Accounts payable | -2 | 74 | -66 |
Accrued liabilities, including income taxes and other working capital | 92 | -174 | 10 |
Litigation bonds | -6 | 31 | -35 |
Tobacco settlement | -763 | -40 | -58 |
Pension and postretirement | -185 | 129 | -165 |
Other, net | 48 | -69 | 9 |
Net cash flows from operating activities | 1,308 | 1,568 | 1,420 |
Cash flows from (used in) investing activities: | ' | ' | ' |
Capital expenditures | -153 | -88 | -190 |
Proceeds from termination of joint venture | 31 | 30 | 32 |
Net proceeds from sale of business | ' | ' | 202 |
Other, net | 9 | 4 | 16 |
Net cash flows from (used in) investing activities | -113 | -54 | 60 |
Cash flows from (used in) financing activities: | ' | ' | ' |
Dividends paid on common stock | -1,335 | -1,307 | -1,212 |
Repurchase of common stock | -775 | -1,101 | -282 |
Excess tax benefit on stock-based compensation plans | 14 | 39 | 1 |
Principal borrowings under term loan credit facility | 500 | 750 | ' |
Repayments of term loan credit facility | -500 | -750 | ' |
Proceeds from issuance of long-term debt, net of discounts | 1,097 | 2,539 | ' |
Repayments of long-term debt | -1,035 | -1,076 | -400 |
Debt issuance costs and financing fees | -18 | -22 | -7 |
Payment to settle forward starting interest rate contracts | ' | -23 | ' |
Proceeds from termination of interest rate swaps | ' | ' | 186 |
Make-whole premium for early extinguishment of debt | -155 | -20 | ' |
Net cash flows from (used in) financing activities | -2,207 | -971 | -1,714 |
Effect of exchange rate changes on cash and cash equivalents | 10 | 3 | -5 |
Net change in cash and cash equivalents | -1,002 | 546 | -239 |
Cash and cash equivalents at beginning of year | 2,502 | 1,956 | 2,195 |
Cash and cash equivalents at end of year | 1,500 | 2,502 | 1,956 |
Income taxes paid, net of refunds | 713 | 785 | 694 |
Interest paid, net of capitalized interest (2011 - $3) | $267 | $249 | $232 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2011 |
Capitalized interest | $3 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,500 | $2,502 |
Accounts receivable | 106 | 87 |
Accounts receivable, related party | 56 | 61 |
Notes receivable | 37 | 35 |
Other receivables | 16 | 16 |
Inventories | 1,127 | 984 |
Deferred income taxes, net | 606 | 908 |
Prepaid expenses and other | 207 | 219 |
Total current assets | 3,655 | 4,812 |
Property, plant and equipment, at cost: | ' | ' |
Land and land improvements | 92 | 93 |
Buildings and leasehold improvements | 717 | 758 |
Machinery and equipment | 1,739 | 1,758 |
Construction-in-process | 105 | 46 |
Total property, plant and equipment | 2,653 | 2,655 |
Less accumulated depreciation | 1,579 | 1,618 |
Property, plant and equipment, net | 1,074 | 1,037 |
Trademarks and other intangible assets, net of accumulated amortization | 2,417 | 2,455 |
Goodwill | 8,011 | 8,011 |
Other assets and deferred charges | 245 | 242 |
Total assets | 15,402 | 16,557 |
Current liabilities: | ' | ' |
Accounts payable | 185 | 187 |
Tobacco settlement accruals | 1,727 | 2,489 |
Due to related party | ' | 1 |
Deferred revenue, related party | 48 | 42 |
Current maturities of long-term debt | ' | 60 |
Other current liabilities | 1,116 | 990 |
Total current liabilities | 3,076 | 3,769 |
Long-term debt (less current maturities) | 5,099 | 5,035 |
Deferred income taxes, net | 658 | 461 |
Long-term retirement benefits (less current portion) | 1,221 | 1,821 |
Other noncurrent liabilities | 181 | 214 |
Commitments and contingencies: | ' | ' |
Shareholders' equity: | ' | ' |
Common stock (shares issued: 2013 - 538,053,024; 2012 - 552,940,767) | ' | ' |
Paid-in capital | 6,571 | 7,275 |
Accumulated deficit | -1,348 | -1,707 |
Accumulated other comprehensive loss | -56 | -311 |
Total shareholders' equity | 5,167 | 5,257 |
Total liabilities and shareholders' equity | $15,402 | $16,557 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Common stock, shares issued | 538,053,024 | 552,940,767 | 576,135,199 | 583,043,872 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (USD $) | Total | Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
In Millions | ||||
Beginning Balance at Dec. 31, 2010 | $6,510 | $8,535 | ($1,807) | ($218) |
Net income | 1,406 | ' | 1,406 | ' |
Retirement benefits, net of tax expense (benefit) (2013 - $160; 2012 - $45; 2011 - $95) | -144 | ' | ' | -144 |
Unrealized gain (loss) on investments, net of tax expense (benefit) (2013 - $3; 2012 - $5; 2011 - $6) | -12 | ' | ' | -12 |
Cumulative translation adjustment and other, net of tax benefit (expense) (2013 - $12; 2012 - $3; 2011 - $4) | -8 | ' | ' | -8 |
Dividends - $2.48 / $2.33 / $2.15 per share | -1,259 | ' | -1,259 | ' |
Common stock repurchased | -282 | -282 | ' | ' |
Equity incentive award plan and stock-based compensation | 39 | 39 | ' | ' |
Excess tax benefit on stock-based compensation plans | 1 | 1 | ' | ' |
Ending Balance at Dec. 31, 2011 | 6,251 | 8,293 | -1,660 | -382 |
Net income | 1,272 | ' | 1,272 | ' |
Retirement benefits, net of tax expense (benefit) (2013 - $160; 2012 - $45; 2011 - $95) | 65 | ' | ' | 65 |
Unrealized gain (loss) on investments, net of tax expense (benefit) (2013 - $3; 2012 - $5; 2011 - $6) | 7 | ' | ' | 7 |
Realized loss on hedging instruments, net of tax expense (benefit) (2013 - $1; 2012 - $9) | -14 | ' | ' | -14 |
Cumulative translation adjustment and other, net of tax benefit (expense) (2013 - $12; 2012 - $3; 2011 - $4) | 13 | ' | ' | 13 |
Dividends - $2.48 / $2.33 / $2.15 per share | -1,319 | ' | -1,319 | ' |
Common stock repurchased | -1,101 | -1,101 | ' | ' |
Equity incentive award plan and stock-based compensation | 44 | 44 | ' | ' |
Excess tax benefit on stock-based compensation plans | 39 | 39 | ' | ' |
Ending Balance at Dec. 31, 2012 | 5,257 | 7,275 | -1,707 | -311 |
Net income | 1,718 | ' | 1,718 | ' |
Retirement benefits, net of tax expense (benefit) (2013 - $160; 2012 - $45; 2011 - $95) | 248 | ' | ' | 248 |
Unrealized gain (loss) on investments, net of tax expense (benefit) (2013 - $3; 2012 - $5; 2011 - $6) | 5 | ' | ' | 5 |
Realized loss on hedging instruments, net of tax expense (benefit) (2013 - $1; 2012 - $9) | 1 | ' | ' | 1 |
Cumulative translation adjustment and other, net of tax benefit (expense) (2013 - $12; 2012 - $3; 2011 - $4) | 1 | ' | ' | 1 |
Dividends - $2.48 / $2.33 / $2.15 per share | -1,359 | ' | -1,359 | ' |
Common stock repurchased | -775 | -775 | ' | ' |
Equity incentive award plan and stock-based compensation | 57 | 57 | ' | ' |
Excess tax benefit on stock-based compensation plans | 14 | 14 | ' | ' |
Ending Balance at Dec. 31, 2013 | $5,167 | $6,571 | ($1,348) | ($56) |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred income tax expense (benefit), retirement benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $160 | $45 | ($95) |
Tax expense (benefit), unrealized gain (loss) on investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 5 | -6 |
Tax expense (benefit), realized loss on hedging instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -9 | ' |
Tax benefit (expense), cumulative translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($12) | $3 | $4 |
Dividends, per share | $0.63 | $0.63 | $0.63 | $0.59 | $0.59 | $0.59 | $0.59 | $0.56 | $0.56 | $0.53 | $0.53 | $0.53 | $2.48 | $2.33 | $2.15 |
Business_and_Summary_of_Signif
Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business and Summary of Significant Accounting Policies | ' | ||||||||||||
Note 1 — Business and Summary of Significant Accounting Policies | |||||||||||||
Overview | |||||||||||||
The consolidated financial statements include the accounts of Reynolds American Inc., referred to as RAI, and its wholly owned subsidiaries. RAI’s wholly owned operating subsidiaries include R. J. Reynolds Tobacco Company; American Snuff Company, LLC, referred to as American Snuff Co.; Santa Fe Natural Tobacco Company, Inc., referred to as SFNTC; Niconovum AB; Niconovum USA, Inc.; and R. J. Reynolds Vapor Company, referred to as RJR Vapor. | |||||||||||||
RAI was incorporated as a holding company in the state of North Carolina on January 2, 2004, and its common stock is listed on the NYSE under the symbol “RAI.” On July 30, 2004, the U.S. assets, liabilities and operations of Brown & Williamson Tobacco Corporation, now known as Brown & Williamson Holdings, Inc., referred to as B&W, an indirect, wholly owned subsidiary of British American Tobacco p.l.c., referred to as BAT, were combined with R. J. Reynolds Tobacco Company, a wholly owned operating subsidiary of R.J. Reynolds Tobacco Holdings, Inc., referred to as RJR. These July 30, 2004, transactions generally are referred to as the B&W business combination. | |||||||||||||
References to RJR Tobacco prior to July 30, 2004, relate to R. J. Reynolds Tobacco Company, a New Jersey corporation and a wholly owned subsidiary of RJR. References to RJR Tobacco on and subsequent to July 30, 2004, relate to the combined U.S. assets, liabilities and operations of B&W and R. J. Reynolds Tobacco Company, a North Carolina corporation. | |||||||||||||
RAI’s reportable operating segments are RJR Tobacco, American Snuff and Santa Fe. The RJR Tobacco segment consists of the primary operations of R. J. Reynolds Tobacco Company. The American Snuff segment consists of the primary operations of American Snuff Co. and, prior to its sale, Lane, Limited, referred to as Lane. The Santa Fe segment consists of the primary operations of SFNTC. Niconovum AB, Niconovum USA, Inc. and RJR Vapor, among other RAI subsidiaries, are included in All Other. The segments were identified based on how RAI’s chief operating decision maker allocates resources and assesses performance. Certain of RAI’s operating subsidiaries have entered into intercompany agreements for products or services with other subsidiaries. As a result, certain activities of an operating subsidiary may be included in a different segment of RAI. | |||||||||||||
As a result of the B&W business combination, Lane became a wholly owned subsidiary of RAI. On February 28, 2011, RAI completed the sale of all of the capital stock of Lane and certain other assets related to the Lane operations, to an affiliate of Scandinavian Tobacco Group A/S, referred to as STG, for net proceeds of $202 million in cash. The results of operations of the disposal group were included through February 28, 2011, in income from operations in the American Snuff segment. | |||||||||||||
RAI’s operating subsidiaries primarily conduct their business in the United States. | |||||||||||||
Basis of Presentation | |||||||||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as GAAP, requires estimates and assumptions to be made that affect the reported amounts in the consolidated financial statements and accompanying notes. Volatile credit and equity markets, changes to regulatory and legal environments, and consumer spending may affect the uncertainty inherent in such estimates and assumptions. Actual results could differ from those estimates. Certain reclassifications were made to conform prior years’ financial statements to the current presentation. Certain amounts presented in note 11 are rounded in the aggregate and may not sum from the individually presented components. | |||||||||||||
All dollar amounts, other than per share amounts, are presented in millions, except for amounts set forth in note 11 and as otherwise noted. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable. Cash equivalents may include money market funds, commercial paper and time deposits in major institutions to minimize investment risk. As short-term, highly liquid investments readily convertible to known amounts of cash, with remaining maturities of three months or less at the time of purchase, cash equivalents have carrying values that approximate fair values. | |||||||||||||
Fair Value Measurement | |||||||||||||
RAI determines the fair value of assets and liabilities, if any, using a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market participant assumptions based on the best information available in the circumstances. | |||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price. | |||||||||||||
The levels of the fair value hierarchy are: | |||||||||||||
Level 1: inputs are quoted prices, unadjusted, in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||||||||||||
Level 2: inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. A Level 2 input must be observable for substantially the full term of the asset or liability. | |||||||||||||
Level 3: inputs are unobservable and reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. | |||||||||||||
Investments | |||||||||||||
Marketable securities are classified as available-for-sale and are carried at fair value. RAI reviews its investments on a quarterly basis to determine if it is probable that RAI will realize some portion of the unrealized loss and to determine the classification of the impairment as temporary or other-than-temporary. For those securities which RAI does not intend to sell and for which it is more likely than not that RAI will not be required to sell the securities prior to recovery, RAI recognizes the credit loss component of an other-than-temporary impairment of its debt securities in earnings and the noncredit component in accumulated other comprehensive loss. All losses deemed to be other than temporarily impaired are recorded in earnings. | |||||||||||||
Inventories | |||||||||||||
Inventories are stated at the lower of cost or market. The cost of tobacco inventories is determined principally under the last-in, first-out, or LIFO, method and is calculated at the end of each year. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead and full absorption of fixed manufacturing overhead. Stocks of tobacco, which have an operating cycle that exceeds 12 months due to aging requirements, are classified as current assets, consistent with recognized industry practice. | |||||||||||||
Long-lived Assets | |||||||||||||
Long-lived assets, such as property, plant and equipment, trademarks and other intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. Impairment of the carrying value of long-lived assets would be indicated if the best estimate of future undiscounted cash flows expected to be generated by the asset grouping is less than its carrying value. If an impairment is indicated, any loss is measured as the difference between estimated fair value and carrying value and is recognized in operating income. | |||||||||||||
Property, Plant and Equipment | |||||||||||||
Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Useful lives range from 20 to 50 years for buildings and improvements, and from 3 to 30 years for machinery and equipment. The cost and related accumulated depreciation of assets sold or retired are removed from the accounts and the gain or loss on disposition is recognized in operating income. | |||||||||||||
Intangible Assets | |||||||||||||
Intangible assets include goodwill, trademarks and other intangible assets and are capitalized when acquired. The determination of fair value involves considerable estimates and judgment. In particular, the fair value of a reporting unit involves, among other things, developing forecasts of future cash flows, determining an appropriate discount rate, and when goodwill impairment is implied, determining the fair value of individual assets and liabilities, including unrecorded intangibles. Although RAI believes it has based its impairment testing and impairment charges of its intangibles on reasonable estimates and assumptions, the use of different estimates and assumptions could result in materially different results. If the current competitive or regulatory environment worsens or RAI’s operating companies’ strategic initiatives adversely affect their financial performance, the fair value of goodwill, trademarks and other intangible assets could be impaired in future periods. Trademarks and other intangible assets with indefinite lives are not amortized, but are tested for impairment annually, in the fourth quarter, and more frequently if events and circumstances indicate that the asset might be impaired. | |||||||||||||
Accounting for Derivative Instruments and Hedging Activities | |||||||||||||
RAI measures any derivative instruments, including certain derivative instruments embedded in other contracts, at fair value and records them in the balance sheet as either an asset or liability. Changes in fair value of derivatives are recorded in earnings unless hedge accounting criteria are met. For derivatives designated as fair value hedges, the changes in fair value of both the derivative instrument and the hedged item are recorded in earnings. For derivatives designated as cash flow hedges, the effective portions of changes in the fair value of the derivative are reported in accumulated other comprehensive loss. The ineffective portions of hedges are recognized in earnings in the current period. | |||||||||||||
RAI formally assesses at inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item, and formally designates as a hedge those derivatives that qualify for hedge accounting. If it is determined that a derivative is not highly effective as a hedge or if a derivative ceases to be a highly effective hedge, RAI will discontinue hedge accounting prospectively. Any unrecognized gain or loss will be deferred and recognized into income as the formerly hedged item is recognized in earnings. At December 31, 2013 and 2012, RAI had no derivative instruments. | |||||||||||||
Software Costs | |||||||||||||
Computer software and software development costs incurred in connection with developing or obtaining computer software for internal use that has an extended useful life are capitalized. These costs are amortized over their estimated useful life, which is typically five years or less. During 2013 and 2012, software costs of $13 million and $12 million, respectively, were capitalized or included in construction-in-process. At December 31, 2013 and 2012, the unamortized balance was $51 million and $55 million, respectively. Software amortization expense was $17 million, $21 million and $24 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Revenue Recognition | |||||||||||||
Revenue from product sales is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the seller’s price to the buyer is fixed or determinable, and collectibility is reasonably assured. These criteria are generally met when title and risk of loss pass to the customer. Payments received in advance of shipments are deferred and recorded in other accrued liabilities until shipment occurs. Certain sales of leaf to a related party, considered as bill-and-hold for accounting purposes, are recorded as deferred revenue when all of the above revenue recognition criteria are met except delivery, postponed at the customer’s request. Revenue is subsequently recognized upon delivery. The revenues recorded are presented net of excise tax collected on behalf of government authorities. | |||||||||||||
Shipping and handling costs are classified as cost of products sold. Net sales include certain sales incentives, including retail discounting, promotional allowances and coupons. | |||||||||||||
Cost of Products Sold | |||||||||||||
Cost of products sold includes the expenses for the Master Settlement Agreement, referred to as the MSA, and other settlement agreements with the states of Mississippi, Florida, Texas and Minnesota, which together with the MSA are collectively referred to as the State Settlement Agreements; the federal tobacco quota buyout; and the user fees charged by the U.S. Food and Drug Administration, referred to as the FDA; which were as follows for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
State Settlement Agreements | $ | 1,819 | $ | 2,370 | $ | 2,435 | |||||||
Federal tobacco quota buyout | 209 | 218 | 229 | ||||||||||
FDA user fees | 127 | 122 | 120 | ||||||||||
In 2012, RJR Tobacco and certain other participating manufacturers, referred to as the PMs, including SFNTC, entered into a term sheet, referred to as the Term Sheet, with 17 states, the District of Columbia and Puerto Rico to settle certain claims related to the MSA non-participating manufacturer adjustment, referred to as the NPM Adjustment. The Term Sheet resolves claims related to volume years from 2003 through 2012 and puts in place a revised method to determine future adjustments from 2013 forward as to jurisdictions that join the agreement. The Term Sheet was not binding on the parties at the time it was executed. On March 12, 2013, a single, nationwide arbitration panel of three former federal judges, referred to as the Arbitration Panel, hearing the dispute related to the 2003 NPM Adjustment (and related matters) issued an order, referred to as the Order, authorizing the implementation of the Term Sheet. In addition, after the Order, one additional state signed the Term Sheet on April 12, 2013; and, two additional states signed the Term Sheet on May 24, 2013. As a result of the Order, the Term Sheet is now binding on all signatories. | |||||||||||||
Based on the jurisdictions bound by the Term Sheet, RJR Tobacco and SFNTC, collectively, will receive credits, currently estimated to total approximately $1.1 billion, with respect to their NPM Adjustment claims for the period from 2003 through 2012. These credits will be applied against annual payments under the MSA over a five-year period, which commenced with the April 2013 MSA payment. As a result of this binding Order, expenses for the MSA were reduced by $219 million for the year ended December 31, 2013. This includes the credit that reduced the April 2013 MSA payment by $204 million and future MSA payments by $15 million for the two additional states that signed the Term Sheet during May 2013. | |||||||||||||
In addition, RJR Tobacco and SFNTC recognized additional credits of $264 million for the year ended December 31, 2013. RJR Tobacco and SFNTC will recognize additional credits in 2014 through 2016, subject to meeting the various performance obligations associated with the Term Sheet. For additional information related to the NPM Adjustment settlement, see “— Litigation Affecting the Cigarette Industry — State Settlement Agreements — Enforcement and Validity; Adjustments” in note 11. | |||||||||||||
Advertising | |||||||||||||
Advertising costs, which are expensed as incurred, were $110 million, $72 million and $65 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Research and Development | |||||||||||||
Research and development costs, which are expensed as incurred, were $72 million, $62 million and $69 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Income Taxes | |||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Interest and penalties related to uncertain tax positions are accounted for as tax expense. Federal income taxes for RAI and its subsidiaries are calculated on a consolidated basis. State income taxes for RAI and its subsidiaries are primarily calculated on a separate return basis. | |||||||||||||
RAI accounts for uncertain tax positions which require that a position taken or expected to be taken in a tax return be recognized in the financial statements when it is more likely than not (a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. | |||||||||||||
Stock-Based Compensation | |||||||||||||
Stock-based compensation expense is recognized for all forms of share-based payment awards, including shares issued to employees under restricted stock units. | |||||||||||||
Litigation Contingencies | |||||||||||||
RAI discloses information concerning litigation for which an unfavorable outcome is more than remote. RAI and its subsidiaries record their legal expenses and other litigation costs and related administrative costs as selling, general and administrative expenses as those costs are incurred. RAI and its subsidiaries will record any loss related to litigation at such time as an unfavorable outcome becomes probable and the amount can be reasonably estimated on an individual case-by-case basis. When the reasonable estimate is a range, the recorded loss will be the best estimate within the range. If no amount in the range is a better estimate than any other amount, the minimum amount of the range will be recorded. | |||||||||||||
Pension and Postretirement | |||||||||||||
Pension and postretirement benefits require balance sheet recognition of the net asset or liability for the overfunded or underfunded status of defined benefit pension and other postretirement benefit plans, on a plan-by-plan basis, and recognition of changes in the funded status in the year in which the changes occur. | |||||||||||||
Actuarial gains or losses are changes in the amount of either the benefit obligation or the fair value of plan assets resulting from experience different from that assumed or from changes in assumptions. Differences between actual results and actuarial assumptions are accumulated and recognized in the year in which they occur as a mark-to-market adjustment, referred to as an MTM adjustment, to the extent such net gains and losses are in excess of 10% of the greater of the fair value of plan assets or the plan’s benefit obligation, referred to as the corridor. Actuarial gains and losses outside the corridor are generally recognized annually as of December 31, or when the plans are remeasured during an interim period. | |||||||||||||
Prior service costs of pension benefits, which are changes in benefit obligations due to plan amendments, are amortized on a straight-line basis over the average remaining service period for active employees, or average remaining life expectancies for inactive employees if most of the plan obligations are due to inactive employees. Prior service costs of postretirement benefits, which are changes in benefit obligations due to plan amendments, are amortized on a straight-line basis over the expected service period to full eligibility age for active employees, or average remaining life expectancies for inactive employees if most of the plan obligations are due to inactive employees. | |||||||||||||
Recently Issued and Adopted Accounting Pronouncements | |||||||||||||
In February 2013, the Financial Accounting Standards Board issued amended guidance that requires an entity to present information about significant items reclassified out of accumulated other comprehensive income, referred to as AOCI, on the face of the statement where net income is presented or as a separate disclosure in the notes to the financial statements. Additionally, the guidance expanded the disclosure requirements for presentation of changes in AOCI by component. The guidance was effective for RAI for interim and annual reporting periods beginning January 1, 2013, and its adoption did not have an impact on RAI’s results of operations, cash flows or financial position. |
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Measurement | ' | ||||||||||||||||||||||||
Note 2 — Fair Value Measurement | |||||||||||||||||||||||||
Fair Value of Financial Assets | |||||||||||||||||||||||||
Financial assets carried at fair value as of December 31, 2013, were as follows: | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||
Cash equivalents | $ | 1,443 | $ | — | $ | — | $ | 1,443 | |||||||||||||||||
Other assets and deferred charges: | |||||||||||||||||||||||||
Auction rate securities | — | — | 76 | 76 | |||||||||||||||||||||
Mortgage-backed security | — | — | 13 | 13 | |||||||||||||||||||||
Marketable equity security | 4 | — | — | 4 | |||||||||||||||||||||
Financial assets carried at fair value as of December 31, 2012, were as follows: | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||
Cash equivalents | $ | 2,100 | $ | — | $ | — | $ | 2,100 | |||||||||||||||||
Other assets and deferred charges: | |||||||||||||||||||||||||
Auction rate securities | — | — | 70 | 70 | |||||||||||||||||||||
Mortgage-backed security | — | — | 13 | 13 | |||||||||||||||||||||
Marketable equity security | 4 | — | — | 4 | |||||||||||||||||||||
There were no transfers between the levels during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
RAI has investments in auction rate securities linked to corporate credit risk, investments in auction rate securities related to financial insurance companies, an investment in a mortgage-backed security and an investment in a marketable equity security. The unrealized gains and losses, net of tax, were included in accumulated other comprehensive loss in RAI’s consolidated balance sheets as of December 31, 2013 and 2012. The funds associated with the auction rate securities will not be accessible until a successful auction occurs or a buyer is found. | |||||||||||||||||||||||||
In determining if the difference between amortized cost and estimated fair value of the auction rate securities or the mortgage-backed security was deemed either temporarily or other-than-temporarily impaired, RAI evaluated each type of long-term investment using a set of criteria, including decline in value, duration of the decline, period until anticipated recovery, nature of investment, probability of recovery, financial condition and near-term prospects of the issuer, RAI’s intent and ability to retain the investment, attributes of the decline in value, status with rating agencies, status of principal and interest payments and any other issues related to the underlying securities. To assess credit losses, RAI uses historical default rates, debt ratings, credit default swap spreads and recovery rates. RAI has the intent and ability to hold these investments for a period of time sufficient to allow for the recovery in market value. | |||||||||||||||||||||||||
All of the fair values of the auction rate securities, classified as Level 3, are linked to the longer-term credit risk of a diverse range of corporations, including, but not limited to, manufacturing, financial and insurance sectors. The fair value was determined by utilizing an income approach model, which was based upon the weighted average present value of future cash payments, given the probability of certain events occurring within the market. RAI considers the market for its auction rate securities to be inactive. The income approach model utilized observable inputs, including LIBOR-based interest rate curves, corporate credit spreads and corporate ratings/market valuations. Additionally, unobservable factors incorporated into the model included default probability assumptions based on historical migration tables, various default recovery rates and how these factors changed as ratings on the underlying collateral migrated from one level to another. As related to the unobservable factors, substantial changes, relative to historical trends, of the levels of corporate defaults or default recovery rates would impact the fair value measurement of these securities. Maturity dates for the auction rate securities begin in 2017. | |||||||||||||||||||||||||
The fair value for the mortgage-backed security, classified as Level 3, utilized a market approach and was based upon the calculation of an overall weighted average valuation, derived from the actual, or modeled, market pricing of the specific collateral. The market approach utilized actual pricing inputs when observable and modeled pricing, based upon changes in observable market pricing, when unobservable. Substantial changes in the observable market pricing would directly impact the unobservable pricing and the fair value measurement of this security. RAI has deemed the market for its mortgage-backed security to be inactive. The maturity of the mortgage-backed security has been extended to March 2014, with the annual option to extend an additional year. Given the underlying collateral and RAI’s intent to continue to extend this security, it is classified as a noncurrent asset. | |||||||||||||||||||||||||
RAI determined the change in the fair value of the investment in a marketable equity security using quoted market prices as of December 31, 2013. | |||||||||||||||||||||||||
Financial assets classified as Level 3 investments were as follows: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Cost | Gross | Estimated | Cost | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair Value | Unrealized | Fair Value | ||||||||||||||||||||||
Loss(1) | Loss(1) | ||||||||||||||||||||||||
Auction rate securities | $ | 99 | $ | (23 | ) | $ | 76 | $ | 99 | $ | (29 | ) | $ | 70 | |||||||||||
Mortgage-backed security | 20 | (7 | ) | 13 | 22 | (9 | ) | 13 | |||||||||||||||||
$ | 119 | $ | (30 | ) | $ | 89 | $ | 121 | $ | (38 | ) | $ | 83 | ||||||||||||
(1) | Unrealized losses, net of tax, are reported in accumulated other comprehensive loss in RAI’s consolidated balance sheets as of December 31, 2013 and 2012. | ||||||||||||||||||||||||
The changes in the Level 3 investments were as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Auction Rate Securities | Auction Rate Securities | ||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | ||||||||||||||||||||||
Cost | Gain (Loss) | Fair Value | Cost | Gain (Loss) | Fair Value | ||||||||||||||||||||
Balance as of January 1 | $ | 99 | $ | (29 | ) | $ | 70 | $ | 99 | $ | (36 | ) | $ | 63 | |||||||||||
Unrealized gain | — | 6 | 6 | — | 7 | 7 | |||||||||||||||||||
Balance as of December 31 | $ | 99 | $ | (23 | ) | $ | 76 | $ | 99 | $ | (29 | ) | $ | 70 | |||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Mortgage-Backed Security | Mortgage-Backed Security | ||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | ||||||||||||||||||||||
Cost | Gain (Loss) | Fair Value | Cost | Gain (Loss) | Fair Value | ||||||||||||||||||||
Balance as of January 1 | $ | 22 | $ | (9 | ) | $ | 13 | $ | 25 | $ | (13 | ) | $ | 12 | |||||||||||
Unrealized gain | — | 2 | 2 | — | 4 | 4 | |||||||||||||||||||
Redemptions | (2 | ) | — | (2 | ) | (3 | ) | — | (3 | ) | |||||||||||||||
Balance as of December 31 | $ | 20 | $ | (7 | ) | $ | 13 | $ | 22 | $ | (9 | ) | $ | 13 | |||||||||||
Fair Value of Nonfinancial Assets | |||||||||||||||||||||||||
The fair value of the trademarks measured on a nonrecurring basis, classified as Level 3, represent certain trademarks, for which impairment during the fourth quarter of 2013 reduced their book value to fair value. The fair value determinations utilized an income approach model and were based on a discounted cash flow valuation model under a relief-from-royalty methodology. This approach utilized unobservable factors, such as royalty rate, projected revenues and a discount rate, applied to the estimated cash flows. The determination of the discount rate was based on a cost of equity model, using a risk-free rate, adjusted by a stock beta-adjusted risk premium and a size premium. | |||||||||||||||||||||||||
Nonfinancial assets measured at fair value on a nonrecurring basis were as follows: | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total Loss | |||||||||||||||||||||
Trademarks, November 30, 2013 | $ | — | $ | — | $ | 312 | $ | 312 | $ | (32 | ) | ||||||||||||||
Fair Value of Debt | |||||||||||||||||||||||||
The estimated fair value of RAI’s and RJR’s outstanding debt, in the aggregate, was $5.2 billion and $5.5 billion with an effective average annual interest rate of approximately 4.5% and 4.7%, as of December 31, 2013 and 2012, respectively. The fair values are based on available market quotes, credit spreads and discounted cash flows, as appropriate. | |||||||||||||||||||||||||
Interest Rate Management | |||||||||||||||||||||||||
From time to time, RAI and RJR have used interest rate swaps to manage interest rate risk on a portion of their respective debt obligations. In 2009, RAI and RJR entered into offsetting floating to fixed interest rate swap agreements in the notional amount of $1.5 billion with maturity dates ranging from June 1, 2012 to June 15, 2017. The floating to fixed interest rate swap agreements were entered into with the same financial institution that held a notional amount of $1.5 billion of fixed to floating interest rate swaps. | |||||||||||||||||||||||||
In September 2011, RAI and RJR terminated the original and offsetting interest rate swap agreements, each with a notional amount of $1.5 billion, and received a total of $186 million cash in exchange for foregoing the future cash inflows associated with these swaps. These actions did not change the effective fixed rate of interest associated with the underlying debt. | |||||||||||||||||||||||||
On September 17, 2013, RAI called for the redemption of, among other RAI notes, the $775 million outstanding principal amount of 7.625% notes due in 2016. Approximately $450 million of this outstanding principal amount was included in the interest rate swap agreements described above. A loss of $124 million on the early extinguishment for all redeemed notes, which includes $35 million of the unamortized portion of the interest rate swap agreement associated with the notes due in 2016, was included in other expense, net in the consolidated statements of income for the year ended December 31, 2013. As a result of these actions, at December 31, 2013, RAI had $700 million of previously swapped outstanding fixed rate debt with an effective rate of interest of approximately 3.8%. | |||||||||||||||||||||||||
In May 2012, RAI entered into forward starting interest rate contracts with an aggregate notional amount of $1 billion. RAI designated those derivatives as cash flow hedges of a future debt issuance, and they were determined to be highly effective at inception. The forward starting interest rate contracts mitigated RAI’s exposure to changes in the benchmark interest rate from the date of inception until the date of the forecasted transaction. On October 31, 2012, RAI completed the sale of $2.55 billion in aggregate principal amount of senior notes, consisting of $450 million of 1.05% senior notes due October 30, 2015, $1.1 billion of 3.25% senior notes due November 1, 2022 and $1 billion of 4.75% senior notes due November 1, 2042. The forward starting interest rate contracts were terminated, and $23 million in associated losses were settled with cash payments to the counterparties. The effective portion of the losses are recorded in accumulated other comprehensive loss in the consolidated balance sheet as of December 31, 2013 and 2012, and will be amortized over the life of the related debt. An insignificant portion of the loss was deemed to be ineffective and recorded in the consolidated statements of income for the year ended December 31, 2012. | |||||||||||||||||||||||||
The amortization of derivative instruments impacted the consolidated statements of income for the years ended December 31 as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Interest and debt income | $ | (24 | ) | $ | (32 | ) | $ | (47 | ) | ||||||||||||||||
Other expense (income), net | (35 | ) | — | 4 |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||||||
Note 3 — Intangible Assets | |||||||||||||||||||||||||||||
The changes in the carrying amounts of goodwill by segment were as follows: | |||||||||||||||||||||||||||||
RJR | American | Santa Fe | All Other | Consolidated | |||||||||||||||||||||||||
Tobacco | Snuff | ||||||||||||||||||||||||||||
Goodwill | $ | 9,065 | $ | 2,501 | $ | 197 | $ | 38 | $ | 11,801 | |||||||||||||||||||
Less: Accumulated impairment charges | (3,763 | ) | (28 | ) | — | — | (3,791 | ) | |||||||||||||||||||||
Net goodwill balance as of December 31, 2010 and 2011 | 5,302 | 2,473 | 197 | 38 | 8,010 | ||||||||||||||||||||||||
2012 Activity | |||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | 1 | 1 | ||||||||||||||||||||||||
Net goodwill balance as of December 31, 2012 and 2013 | $ | 5,302 | $ | 2,473 | $ | 197 | $ | 39 | $ | 8,011 | |||||||||||||||||||
The changes in the carrying amounts of indefinite-lived intangible assets by segment not subject to amortization were as follows: | |||||||||||||||||||||||||||||
RJR Tobacco | American | Santa Fe | All Other | Consolidated | |||||||||||||||||||||||||
Snuff | |||||||||||||||||||||||||||||
Trademarks | Other | Trademarks | Trademarks | Other | Trademarks | Other | |||||||||||||||||||||||
Balance as of December 31, 2010 | $ | 1,152 | $ | 99 | $ | 1,136 | $ | 155 | $ | 50 | $ | 2,443 | $ | 149 | |||||||||||||||
Impairment charge | (43 | ) | — | — | — | — | (43 | ) | — | ||||||||||||||||||||
Foreign currency translation | — | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Balance as of December 31, 2011 | 1,109 | 99 | 1,136 | 155 | 49 | 2,400 | 148 | ||||||||||||||||||||||
Impairment charge | (82 | ) | — | — | — | (47 | ) | (82 | ) | (47 | ) | ||||||||||||||||||
Foreign currency translation | — | — | — | — | 3 | — | 3 | ||||||||||||||||||||||
Balance as of December 31, 2012 | 1,027 | 99 | 1,136 | 155 | 5 | 2,318 | 104 | ||||||||||||||||||||||
Impairment charge | (32 | ) | — | — | — | — | (32 | ) | — | ||||||||||||||||||||
Foreign currency translation | — | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Reclassified to finite-lived | (18 | ) | — | — | — | — | (18 | ) | — | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 977 | $ | 99 | $ | 1,136 | $ | 155 | $ | 4 | $ | 2,268 | $ | 103 | |||||||||||||||
The changes in the carrying amounts of finite-lived intangible assets by segment subject to amortization were as follows: | |||||||||||||||||||||||||||||
RJR Tobacco | American | Consolidated | |||||||||||||||||||||||||||
Snuff | |||||||||||||||||||||||||||||
Trademarks | Other | Trademarks | Trademarks | Other | |||||||||||||||||||||||||
Balance as of December 31, 2010 | $ | 11 | $ | 54 | $ | 18 | $ | 29 | $ | 54 | |||||||||||||||||||
Amortization | (7 | ) | (15 | ) | (2 | ) | (9 | ) | (15 | ) | |||||||||||||||||||
Impairment charge | — | — | (5 | ) | (5 | ) | — | ||||||||||||||||||||||
Balance as of December 31, 2011 | 4 | 39 | 11 | 15 | 39 | ||||||||||||||||||||||||
Amortization | (4 | ) | (15 | ) | (2 | ) | (6 | ) | (15 | ) | |||||||||||||||||||
Balance as of December 31, 2012 | — | 24 | 9 | 9 | 24 | ||||||||||||||||||||||||
Amortization | — | (4 | ) | (1 | ) | (1 | ) | (4 | ) | ||||||||||||||||||||
Reclassified from indefinite-lived | 18 | — | — | 18 | — | ||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 18 | $ | 20 | $ | 8 | $ | 26 | $ | 20 | |||||||||||||||||||
Details of finite-lived intangible assets were as follows: | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||||||
Contract manufacturing agreements | $ | 151 | $ | 131 | $ | 20 | $ | 151 | $ | 127 | $ | 24 | |||||||||||||||||
Trademarks | 114 | 88 | 26 | 96 | 87 | 9 | |||||||||||||||||||||||
$ | 265 | $ | 219 | $ | 46 | $ | 247 | $ | 214 | $ | 33 | ||||||||||||||||||
The estimated remaining amortization associated with finite-lived intangible assets is expected to be expensed as follows: | |||||||||||||||||||||||||||||
Year | Amount | ||||||||||||||||||||||||||||
2014 | $ | 11 | |||||||||||||||||||||||||||
2015 | 9 | ||||||||||||||||||||||||||||
2016 | 8 | ||||||||||||||||||||||||||||
2017 | 7 | ||||||||||||||||||||||||||||
2018 | 6 | ||||||||||||||||||||||||||||
Thereafter | 5 | ||||||||||||||||||||||||||||
$ | 46 | ||||||||||||||||||||||||||||
The impairment testing of trademarks in the fourth quarters of 2013, 2012 and 2011 assumed an increased rate of decline in projected net sales of certain brands, compared with that assumed in the prior year strategic plan. As a result of annual impairment testing, during 2013, impairment was indicated on four of RJR Tobacco’s brands. Additionally, one trademark brand was reclassified from indefinite-lived to finite-lived. During 2012, impairment was indicated primarily on four of RJR Tobacco’s brands. During 2011, impairment was indicated primarily on one of RJR Tobacco’s brands and several loose leaf brands at American Snuff. | |||||||||||||||||||||||||||||
The analysis of the fair value of trademarks was based on estimates of fair value on an income approach using a discounted cash flow valuation model under a relief from royalty methodology. The relief-from-royalty model includes the estimates of the royalty rate that a market participant might assume, projected revenues and judgment regarding the discount rate applied to those estimated cash flows, with that discount rate being 10.0% during 2013 and 2012, and 10.5% during 2011. The determination of the discount rate was based on a cost of equity model, using a risk-free rate, adjusted by a stock beta-adjusted risk premium and a size premium. | |||||||||||||||||||||||||||||
As a result of these analyses, RJR Tobacco and American Snuff recorded trademark impairment charges based on the excess of certain brands’ carrying values over their estimated fair values. These trademark impairment charges are reflected as decreases in the carrying value of the trademarks in the consolidated balance sheets as of December 31, 2013 and 2012, as trademark and other intangible asset impairment charges in the consolidated statements of income for the years ended December 31, 2013, 2012 and 2011, and had no impact on cash flows. Certain brands are being amortized over their remaining lives, which range from 1 to 15 years, consistent with the pattern of economic benefits estimated to be received. | |||||||||||||||||||||||||||||
During the fourth quarter of 2012, a change in the use of an other intangible asset within the All Other segment was determined. As a result, the $47 million carrying value of the other intangible asset was fully impaired. | |||||||||||||||||||||||||||||
For the annual impairment testing of the goodwill of RAI’s reporting units, each reporting unit’s estimated fair value was compared with its carrying value. A reporting unit is an operating segment or one level below an operating segment. The determination of estimated fair value of each reporting unit was calculated primarily utilizing an income approach model, based on the present value of the estimated future cash flows of the reporting unit assuming a discount rate during 2013 of 9.75% for each of RJR Tobacco and American Snuff and 10.25% for Santa Fe. The determination of the discount rate was based on a weighted average cost of capital. Additionally, the aggregate estimated fair value of the reporting units, determined with the use of the income approach model, was compared with RAI’s market capitalization. The estimated fair value of each reporting unit was substantially greater than its respective carrying value. |
Restructuring_Charges
Restructuring Charges | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Restructuring Charges | ' | ||||
Note 4 — Restructuring Charges | |||||
On March 14, 2012, RAI announced that it and its subsidiaries, RJR Tobacco and RAI Services Company, referred to as RAISC, had completed a business analysis designed to identify resources to reinvest in their businesses. As a result of this initiative, the total U.S. workforce of RAI and its subsidiaries will decline by a net of approximately 10% upon the completion of the restructuring by the end of 2015. | |||||
Under existing severance plans, $111 million of severance, benefits and related costs and $38 million of pension-related benefits comprised a restructuring charge of $149 million during the first quarter of 2012. Of this charge, $138 million was recorded in the RJR Tobacco segment. As of December 31, 2013, $92 million had been utilized. Accordingly, in the consolidated balance sheet as of December 31, 2013, $19 million was included in other current liabilities and $38 million was included in other noncurrent liabilities. | |||||
The components of the restructuring charge accrued and utilized were as follows: | |||||
Employee | |||||
Severance | |||||
and Benefits | |||||
Original accrual | $ | 149 | |||
Utilized in 2012 | (78 | ) | |||
Balance as of December 31, 2012 | 71 | ||||
Utilized in 2013 | (14 | ) | |||
Balance as of December 31, 2013 | $ | 57 | |||
Income_Per_Share
Income Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Per Share | ' | ||||||||||||
Note 5 — Income Per Share | |||||||||||||
The components of the calculation of income per share were as follows: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income | $ | 1,718 | $ | 1,272 | $ | 1,406 | |||||||
Basic weighted average shares, in thousands | 544,925 | 565,570 | 582,320 | ||||||||||
Effect of dilutive potential shares: | |||||||||||||
Restricted stock units | 2,024 | 2,303 | 3,063 | ||||||||||
Diluted weighted average shares, in thousands | 546,949 | 567,873 | 585,383 | ||||||||||
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories | ' | ||||||||
Note 6 — Inventories | |||||||||
The major components of inventories at December 31 were as follows: | |||||||||
2013 | 2012 | ||||||||
Leaf tobacco | $ | 1,049 | $ | 919 | |||||
Other raw materials | 66 | 51 | |||||||
Work in process | 70 | 63 | |||||||
Finished products | 130 | 125 | |||||||
Other | 18 | 18 | |||||||
Total | 1,333 | 1,176 | |||||||
Less LIFO allowance | 206 | 192 | |||||||
$ | 1,127 | $ | 984 | ||||||
Inventories valued under the LIFO method were $519 million and $443 million at December 31, 2013 and 2012, respectively, net of the LIFO allowance. The LIFO allowance reflects the excess of the current cost of LIFO inventories at December 31, 2013 and 2012, over the amount at which these inventories were carried on the consolidated balance sheets. RAI recorded expense of $14 million and $7 million from LIFO inventory changes during 2013 and 2012, respectively, and income of $12 million from LIFO inventory changes during 2011. |
Other_Current_Liabilities
Other Current Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Current Liabilities | ' | ||||||||
Note 7 — Other Current Liabilities | |||||||||
Other current liabilities at December 31 included the following: | |||||||||
2013 | 2012 | ||||||||
Payroll and employee benefits | $ | 179 | $ | 129 | |||||
Pension and other postretirement benefits | 79 | 74 | |||||||
Marketing and advertising | 117 | 106 | |||||||
Declared dividends | 339 | 326 | |||||||
Excise, franchise and property tax | 157 | 149 | |||||||
Restructuring | 19 | 16 | |||||||
Tobacco quota buyout | 52 | 55 | |||||||
Other | 174 | 135 | |||||||
$ | 1,116 | $ | 990 | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
Note 8 — Income Taxes | |||||||||||||
The components of the provision for income taxes from operations for the years ended December 31 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 563 | $ | 647 | $ | 572 | |||||||
State and other | 148 | 78 | 108 | ||||||||||
711 | 725 | 680 | |||||||||||
Deferred: | |||||||||||||
Federal | 254 | (45 | ) | 80 | |||||||||
State and other | 58 | 1 | 20 | ||||||||||
312 | (44 | ) | 100 | ||||||||||
$ | 1,023 | $ | 681 | $ | 780 | ||||||||
Significant components of deferred tax assets and liabilities for the years ended December 31 included the following: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Pension and other postretirement liabilities | $ | 522 | $ | 726 | |||||||||
Tobacco settlement accruals | 677 | 990 | |||||||||||
Other accrued liabilities | 71 | 62 | |||||||||||
Other noncurrent liabilities | 150 | 153 | |||||||||||
Subtotal | 1,420 | 1,931 | |||||||||||
Less: valuation allowance | (36 | ) | (33 | ) | |||||||||
1,384 | 1,898 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
LIFO inventories | (156 | ) | (158 | ) | |||||||||
Property and equipment | (232 | ) | (242 | ) | |||||||||
Trademarks and other intangibles | (916 | ) | (936 | ) | |||||||||
Other | (120 | ) | (115 | ) | |||||||||
(1,424 | ) | (1,451 | ) | ||||||||||
Net deferred tax asset (liability) | $ | (40 | ) | $ | 447 | ||||||||
The current and noncurrent components of deferred tax assets and liabilities for the years ended December 31 were as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | $ | 606 | $ | 908 | |||||||||
Noncurrent deferred tax assets | 12 | — | |||||||||||
Noncurrent deferred tax liabilities | (658 | ) | (461 | ) | |||||||||
$ | (40 | ) | $ | 447 | |||||||||
RAI had a $105 million and $99 million federal capital loss carryforward at December 31, 2013, and December 31, 2012, respectively. The increase in 2013 resulted from the termination of an investment during 2013. The federal capital loss carryforwards will expire in 2015, 2016 and 2018 and can be utilized only to the extent net capital gains are generated during the carryforward period. | |||||||||||||
In 2011, a $33 million valuation allowance was established to fully offset a deferred tax asset related to the federal capital loss carryforward. In 2013, the valuation allowance was increased by $3 million to $36 million to fully offset a deferred tax asset related to a capital loss resulting from the termination of an investment. RAI believes it is unlikely that this deferred tax asset will be realized through the expected generation of future net capital gains. No valuation allowance was established on other deferred tax assets as of the years ended December 31, 2013, 2012, or 2011, as RAI believes it is more likely than not that all of such deferred tax assets will be realized through the expected generation of future taxable income. | |||||||||||||
Pre-tax income (loss) for domestic and foreign operations for the years ended December 31 consisted of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic (includes U.S. exports) | $ | 2,737 | $ | 1,983 | $ | 2,157 | |||||||
Foreign | 4 | (30 | ) | 29 | |||||||||
$ | 2,741 | $ | 1,953 | $ | 2,186 | ||||||||
The differences between the provision for income taxes from operations and income taxes computed at statutory U.S. federal income tax rates for the years ended December 31 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income taxes computed at the statutory U.S. federal income tax rate | $ | 959 | $ | 684 | $ | 765 | |||||||
State and local income taxes, net of federal tax benefits | 135 | 107 | 96 | ||||||||||
Domestic manufacturing deduction | (55 | ) | (60 | ) | (60 | ) | |||||||
Other items, net | (16 | ) | (50 | ) | (21 | ) | |||||||
Provision for income taxes from operations | $ | 1,023 | $ | 681 | $ | 780 | |||||||
Effective tax rate | 37.3 | % | 34.9 | % | 35.7 | % | |||||||
The effective tax rate for 2013, as compared to 2012, was unfavorably impacted by an increase in tax attributable to a decrease in the domestic production activities deduction of the American Jobs Creation Act of 2004. The effective tax rate for 2012 was favorably impacted by a decrease in tax attributable to the reversal of tax reserves and interest related to various state statute expirations and audit settlements. The effective tax rate for 2011 was favorably impacted by a decrease in tax attributable to the reversal of tax reserves and interest on a state statute expiration. The effective tax rate for each period differed from the federal statutory rate of 35% due to the impact of state taxes and certain nondeductible items, offset by the favorable impact of the domestic production activities deduction. | |||||||||||||
On January 2, 2013, the American Taxpayer Relief Act of 2012, referred to as the ATRA, was signed into law. The ATRA retroactively reinstated and extended the Federal Research and Development Tax Credit from January 2, 2012 to December 31, 2013. The impact of the ATRA did not significantly impact RAI’s annual effective income tax rate in 2012 and 2013. | |||||||||||||
At December 31, 2013, there were $464 million of accumulated and undistributed foreign earnings. Of this amount, RAI has invested $27 million and has plans to invest $54 million overseas. RAI has recorded either current or deferred income taxes related to the $383 million of accumulated foreign earnings in excess of its historical and planned overseas investments. | |||||||||||||
The deferred tax benefits included in accumulated other comprehensive loss were $63 million for retirement benefits, $11 million for unrealized losses on long-term investments and $8 million for realized loss on hedging instruments as of December 31, 2013, and $223 million for retirement benefits, $14 million for unrealized losses on long-term investments and $9 million for realized loss on hedging instruments as of December 31, 2012. RAI has recorded deferred tax benefits of $4 million and $16 million for cumulative translation adjustments and other in accumulated other comprehensive loss as of December 31, 2013 and 2012, respectively. | |||||||||||||
The accruals for gross unrecognized income tax benefits, including interest and penalties, reflected in other noncurrent liabilities were $70 million and $77 million at December 31, 2013 and 2012, respectively. RAI accrues interest and penalties related to accruals for income taxes and reflects these amounts in income tax expense. The gross amount of interest accrued at December 31, 2013 and 2012, was $7 million and $9 million, respectively. The gross amount of penalties accrued was $1 million at December 31, 2013 and 2012. | |||||||||||||
A reconciliation of the gross unrecognized income tax benefits is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 68 | $ | 128 | $ | 127 | |||||||
Gross increases related to current period tax positions | 4 | 4 | 6 | ||||||||||
Gross increases related to tax positions in prior periods | — | 1 | 1 | ||||||||||
Gross decreases related to tax positions in prior periods | (3 | ) | (7 | ) | (1 | ) | |||||||
Gross increases (decreases) related to audit settlements | (1 | ) | (31 | ) | 1 | ||||||||
Gross decreases related to lapse of applicable statute of limitations | (6 | ) | (27 | ) | (6 | ) | |||||||
Balance at end of year | $ | 62 | $ | 68 | $ | 128 | |||||||
At December 31, 2013, $50 million of unrecognized income tax benefits including interest and penalties, if recognized, would decrease RAI’s effective tax rate. | |||||||||||||
RAI and its subsidiaries are subject to income taxes in the United States, certain foreign jurisdictions and multiple state jurisdictions. A number of years may elapse before a particular matter, for which RAI has established an accrual, is audited and finally resolved. The number of years with open tax audits varies depending on the tax jurisdiction. RAI’s major taxing jurisdictions and related open tax audits are discussed below. | |||||||||||||
RAI and its subsidiaries file income tax returns in the U.S. federal and various state and foreign jurisdictions. The U.S. federal statute of limitations remains open for the year 2010 and forward, with 2010 and 2011 currently under examination by the Internal Revenue Service as part of a routine audit conducted in the ordinary course of business. State and foreign jurisdictions have statutes of limitations generally ranging from three to five years. Certain of RAI’s state tax returns are currently under examination by various states as part of routine audits conducted in the ordinary course of business. |
Borrowing_Arrangements
Borrowing Arrangements | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Borrowing Arrangements | ' | |||
Note 9 — Borrowing Arrangements | ||||
Credit Agreements | ||||
On October 8, 2013, RAI entered into a credit agreement, referred to as the New Credit Agreement, with a syndicate of lenders, providing for a four-year $1.35 billion senior unsecured revolving credit facility, which may be increased to $1.6 billion at the discretion of the lenders upon the request of RAI. The New Credit Agreement replaced RAI’s previous $750 million revolving credit facility, referred to as the Prior Credit Agreement, which would have matured on July 29, 2015. | ||||
The New Credit Agreement contains restrictive covenants that: | ||||
• | limit the ability of RAI and its subsidiaries to (1) pay dividends and repurchase stock, (2) engage in transactions with affiliates, (3) create liens, and (4) engage in sale-leaseback transactions involving a Principal Property, as defined in the New Credit Agreement; and | |||
• | limit the ability of RAI and its Material Subsidiaries, as such term is defined in the New Credit Agreement, to sell or dispose of all or substantially all of their assets and engage in specified mergers or consolidations, which covenants are substantially similar to those contained in the Prior Credit Agreement. | |||
The New Credit Agreement also contains a restrictive covenant that limits the amount of debt that may be incurred by non-guarantor subsidiaries, together with certain financial covenants. The restrictive covenants in the New Credit Agreement are subject to a number of qualifications and exceptions. The financial covenant levels in the New Credit Agreement are 3.00 to 1.00 for the consolidated leverage ratio covenant and 4.00 to 1.00 for the consolidated interest coverage ratio. In addition, the cost to RAI of borrowings under the New Credit Agreement has changed, and the maturity date of the New Credit Agreement is October 8, 2017, which date may be extended, with the agreement of the requisite lenders, in two separate one-year increments. The New Credit Agreement contains customary events of default, including upon a change in control, as defined therein, that could result in the acceleration of all amounts and cancellation of all commitments outstanding under the New Credit Agreement. | ||||
RAI is able to use the revolving credit facility under the New Credit Agreement for borrowings and issuances of letters of credit at its option, subject to a $300 million sublimit on the aggregate amount of letters of credit. Issuances of letters of credit reduce availability under such revolving credit facility. As of December 31, 2013, there were no borrowings, and $6 million of letters of credit outstanding, under the New Credit Agreement. | ||||
Under the terms of the New Credit Agreement, RAI is required to pay a facility fee of between 0.125% and 0.30% per annum, based generally on the ratings of RAI’s senior, unsecured, long-term indebtedness, on the lender commitments in respect of the revolving credit facility thereunder. | ||||
Borrowings under the New Credit Agreement bear interest, at the option of RAI, at a rate equal to an applicable margin, again, based generally on the ratings of RAI’s senior, unsecured, long-term indebtedness, plus: | ||||
• | the alternate base rate, which is the higher of (1) the federal funds effective rate from time to time plus 0.5%, (2) the prime rate and (3) the reserve adjusted eurodollar rate for a one month interest period plus 1%; or | |||
• | the eurodollar rate, which is the reserve adjusted rate at which eurodollar deposits for one, two, three or six months are offered in the interbank eurodollar market. | |||
Overdue principal outstanding under the revolving credit facility under the New Credit Agreement bears interest at a rate equal to the rate then in effect with respect to such borrowings, plus 2.0% per annum. Any amount besides principal that becomes overdue bears interest at a rate equal to 2.0% per annum in excess of the rate of interest applicable to base rate loans. | ||||
The obligations of RAI under the New Credit Agreement are unsecured. Certain of RAI’s subsidiaries, including its Material Subsidiaries, have guaranteed, on an unsecured basis, RAI’s obligations under the New Credit Agreement. | ||||
Term Loan | ||||
On March 15, 2013, RAI entered into a term loan, referred to as the Term Loan, with a syndicate of lenders, providing for an unsecured delayed draw term loan facility, with a maximum borrowing capacity of up to $500 million and a maturity date of December 27, 2013. In the second quarter of 2013, RAI borrowed the entire $500 million under the Term Loan. RAI repaid the Term Loan in the second half of 2013. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Long-Term Debt | ' | ||||||||
Note 10 — Long-Term Debt | |||||||||
Long-term debt, net of discounts and including adjustments associated with interest rate swaps, as of December 31, consisted of the following: | |||||||||
2013 | 2012 | ||||||||
1.05% guaranteed, notes due 2015 | $ | 450 | $ | 449 | |||||
3.25% guaranteed, notes due 2022 | 1,099 | 1,099 | |||||||
4.75% guaranteed, notes due 2042 | 991 | 991 | |||||||
4.85% guaranteed, notes due 2023 | 550 | — | |||||||
6.15% guaranteed, notes due 2043 | 547 | — | |||||||
6.75% guaranteed, notes due 2017 | 765 | 781 | |||||||
7.25% guaranteed, notes due 2037 | 448 | 448 | |||||||
7.30% guaranteed, notes due 2015 | — | 200 | |||||||
7.625% guaranteed, notes due 2016 | — | 818 | |||||||
7.75% guaranteed, notes due 2018 | 249 | 249 | |||||||
Total long-term debt (less current maturities) | 5,099 | 5,035 | |||||||
Current maturities of long-term debt | — | 60 | |||||||
$ | 5,099 | $ | 5,095 | ||||||
As of December 31, 2013, the maturities of RAI’s notes, net of discounts, were as follows: | |||||||||
Year | Amount | ||||||||
2015 | $ | 450 | |||||||
2017 | 700 | ||||||||
2018 | 249 | ||||||||
2022 and thereafter | 3,635 | ||||||||
$ | 5,034 | ||||||||
In conjunction with their obligations under the New Credit Agreement, RAI’s Material Subsidiaries, RJR Tobacco and American Snuff Co., among other subsidiaries, guaranteed the RAI notes. At its option, RAI may redeem any or all of its outstanding notes, in whole or in part at any time, subject to the payment of a make-whole premium. | |||||||||
On June 1, 2012, RAI repaid $450 million in principal of debt due in 2012. In addition, in June 2012, RJR prepaid the remaining insignificant amount of RJR’s guaranteed, unsecured long-term debt that was due in 2015. As a result of the repayment of these notes, RAI is no longer required to present condensed consolidated financial statements relating to RJR’s remaining outstanding notes. | |||||||||
In October 2012, RAI completed the sale of $2.55 billion in aggregate principal amount of senior notes, consisting of $450 million of 1.05% senior notes due October 30, 2015, $1.1 billion of 3.25% senior notes due November 1, 2022 and $1 billion of 4.75% senior notes due November 1, 2042. A portion of the proceeds were used in December 2012 to redeem the $625 million principal amount of 7.25% notes due in 2013. A loss of $21 million on the early extinguishment was recorded in the fourth quarter of 2012, and was included in other expense, net in the consolidated statements of income. | |||||||||
On August 15, 2013, RJR repaid at maturity $60 million in principal amount of its notes. RJR has no remaining outstanding debt. | |||||||||
In September 2013, RAI completed the sale of $1.1 billion in aggregate principal amount of senior notes, consisting of $550 million 4.85% notes due September 15, 2023, and $550 million 6.15% notes due September 15, 2043. Interest on these notes is paid semi-annually. | |||||||||
In September 2013, RAI called for the redemption of the $200 million outstanding principal amount of its 7.30% notes due in 2015, and the $775 million outstanding principal amount of its 7.625% notes due in 2016. A loss of $124 million on the early extinguishment, which includes $35 million of the unamortized portion of the interest rate swap agreements associated with the 7.625% notes, was included in other expense, net in the consolidated statements of income for the year ended December 31, 2013. | |||||||||
See note 2 for additional information on interest rate management of the long-term debt. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||||||||||||
Note 11 — Commitments and Contingencies | |||||||||||||||||||||||||||||||||
Tobacco Litigation — General | |||||||||||||||||||||||||||||||||
Introduction | |||||||||||||||||||||||||||||||||
Various legal proceedings or claims, including litigation claiming that cancer and other diseases, as well as addiction, have resulted from the use of, or exposure to, RAI’s operating subsidiaries’ products, are pending or may be instituted against RJR Tobacco, American Snuff Co. or their affiliates, including RAI and RJR, or indemnitees, including B&W. These pending legal proceedings include claims relating to cigarette products manufactured by RJR Tobacco or certain of its affiliates and indemnitees, as well as claims relating to smokeless tobacco products manufactured by American Snuff Co. A discussion of the legal proceedings relating to cigarette products is set forth below under the heading “— Litigation Affecting the Cigarette Industry.” All of the references under that heading to tobacco-related litigation, smoking and health litigation and other similar references are references to legal proceedings relating to cigarette products and are not references to legal proceedings involving smokeless tobacco products, and case numbers under that heading include only cases involving cigarette products. The legal proceedings relating to the smokeless tobacco products manufactured by American Snuff Co. are discussed separately under the heading “— Smokeless Tobacco Litigation” below. | |||||||||||||||||||||||||||||||||
In connection with the B&W business combination, RJR Tobacco has agreed to indemnify B&W and its affiliates, including its indirect parent, BAT, against certain liabilities, costs and expenses incurred by B&W or its affiliates arising out of the U.S. cigarette and tobacco business of B&W. As a result of this indemnity, RJR Tobacco has assumed the defense of pending B&W-specific tobacco-related litigation, has paid the judgments and costs related to certain pre-business combination tobacco-related litigation of B&W, and has posted bonds on behalf of B&W, where necessary, in connection with cases decided since the B&W business combination. | |||||||||||||||||||||||||||||||||
Certain Terms and Phrases | |||||||||||||||||||||||||||||||||
Certain terms and phrases used in this disclosure may require some explanation. The term “judgment” or “final judgment” refers to the final decision of the court resolving the dispute and determining the rights and obligations of the parties. At the trial court level, for example, a final judgment generally is entered by the court after a jury verdict and after post-verdict motions have been decided. In most cases, the losing party can appeal a verdict only after a final judgment has been entered by the trial court. | |||||||||||||||||||||||||||||||||
The term “damages” refers to the amount of money sought by a plaintiff in a complaint, or awarded to a party by a jury or, in some cases, by a judge. “Compensatory damages” are awarded to compensate the prevailing party for actual losses suffered, if liability is proved. In cases in which there is a finding that a defendant has acted willfully, maliciously or fraudulently, generally based on a higher burden of proof than is required for a finding of liability for compensatory damages, a plaintiff also may be awarded “punitive damages.” Although damages may be awarded at the trial court stage, a losing party generally may be protected from paying any damages until all appellate avenues have been exhausted by posting a supersedeas bond. The amount of such a bond is governed by the law of the relevant jurisdiction and generally is set at the amount of damages plus some measure of statutory interest, modified at the discretion of the appropriate court or subject to limits set by court or statute. | |||||||||||||||||||||||||||||||||
The term “per curiam” refers to an opinion entered by a court. In most cases, it is used to indicate that the opinion entered is a brief announcement of the court’s decision and is not accompanied by a written opinion. | |||||||||||||||||||||||||||||||||
The term “settlement” refers to certain types of cases in which cigarette manufacturers, including RJR Tobacco and B&W, have agreed to resolve disputes with certain plaintiffs without resolving the case through trial. The principal terms of certain settlements entered into by RJR Tobacco and B&W are explained below under “— Accounting for Tobacco-Related Litigation Contingencies.” | |||||||||||||||||||||||||||||||||
Theories of Recovery | |||||||||||||||||||||||||||||||||
The plaintiffs seek recovery on a variety of legal theories, including negligence, strict liability in tort, design defect, failure to warn, fraud, misrepresentation, unfair trade practices, conspiracy, medical monitoring and violations of state and federal antitrust laws. In certain of these cases, the plaintiffs claim that cigarette smoking exacerbated injuries caused by exposure to asbestos. | |||||||||||||||||||||||||||||||||
The plaintiffs seek various forms of relief, including compensatory and, where available, punitive damages, treble or multiple damages and statutory damages and penalties, creation of medical monitoring and smoking cessation funds, disgorgement of profits, and injunctive and other equitable relief. Although alleged damages often are not determinable from a complaint, and the law governing the pleading and calculation of damages varies from jurisdiction to jurisdiction, compensatory and punitive damages have been specifically pleaded in a number of cases, sometimes in amounts ranging into the hundreds of millions and even billions of dollars. | |||||||||||||||||||||||||||||||||
Defenses | |||||||||||||||||||||||||||||||||
The defenses raised by RJR Tobacco, American Snuff Co. and their affiliates and indemnitees include, where applicable and otherwise appropriate, preemption by the Federal Cigarette Labeling and Advertising Act of some or all claims arising after 1969, or by the Comprehensive Smokeless Tobacco Health Education Act for claims arising after 1986, the lack of any defect in the product, assumption of the risk, contributory or comparative fault, lack of proximate cause, remoteness, lack of standing and statutes of limitations or repose. RAI and RJR have asserted additional defenses, including jurisdictional defenses, in many of the cases in which they are named. | |||||||||||||||||||||||||||||||||
Accounting for Tobacco-Related Litigation Contingencies | |||||||||||||||||||||||||||||||||
In accordance with GAAP, RAI and its subsidiaries, including RJR Tobacco, American Snuff Co. and SFNTC, as applicable, record any loss concerning litigation at such time as an unfavorable outcome becomes probable and the amount can be reasonably estimated on an individual case-by-case basis. For the reasons set forth below, RAI’s management continues to conclude that the loss of any particular pending smoking and health tobacco litigation claim against RJR Tobacco or its affiliates or indemnitees, or the loss of any particular claim concerning the use of smokeless tobacco products against American Snuff Co., when viewed on an individual basis, is not probable, except for the nine Engle Progeny cases noted below. | |||||||||||||||||||||||||||||||||
RJR Tobacco and its affiliates believe that they have valid defenses to the smoking and health tobacco litigation claims against them, as well as valid bases for appeal of adverse verdicts against them. RAI, RJR Tobacco and their affiliates and indemnitees have, through their counsel, filed pleadings and memoranda in pending smoking and health tobacco litigation that set forth and discuss a number of grounds and defenses that they and their counsel believe have a valid basis in law and fact. With the exception of Engle Progeny cases, described below, RJR Tobacco and its affiliates and indemnitees continue to win the majority of smoking and health tobacco litigation claims that reach trial, and a very high percentage of the tobacco-related litigation claims brought against them continue to be dismissed at or before trial. Based on their experience in the smoking and health tobacco litigation against them and the strength of the defenses available to them in such litigation, RJR Tobacco and its affiliates believe that their successful defense of smoking and health tobacco litigation in the past will continue in the future. | |||||||||||||||||||||||||||||||||
An accrual of $21 million has been recorded in RAI’s consolidated balance sheet as of December 31, 2013. This amount includes $5.4 million for compensatory and punitive damages and $5.6 million for attorneys’ fees and statutory interest through December 31, 2013, for nine Engle Progeny cases — Jimmie Lee Brown, Sherman, Koballa,Ward, Duke, Walker, Hiott, Kirkland and Sury, described below. It also includes $10 million for estimated costs that have been accrued in connection with the U.S. Department of Justice case, also described below. During the fourth quarter of 2013, a payment of $305,000 ($250,000 for compensatory damages and $55,000 for attorneys’ fees and interest) was made in satisfaction of the adverse judgment in the Douglas case, an Engle Progeny case, described below. Also, a payment of $1.5 million was made in satisfaction of the adverse judgment in the Smith case, an individual smoking and health case. Additionally, a payment of $14 million was made in satisfaction of the adverse judgment in the State of Vermont v. R. J. Reynolds Tobacco Co. Eclipse advertising case, described below. Finally, payment in Ward, an Engle Progeny case, of $2.4 million was made on January 31, 2014. No other liabilities for pending smoking and health litigation have been recorded as of December 31, 2013. As other cases proceed through the appellate process, RAI will consider making further accruals on an individual case-by-case basis if an unfavorable outcome becomes probable and the amount can be reasonably estimated. | |||||||||||||||||||||||||||||||||
It is the policy of RJR Tobacco and its affiliates to vigorously defend all tobacco-related litigation claims. Generally, RJR Tobacco and its affiliates and indemnitees have not settled any smoking and health tobacco litigation claims. Other than actions taken pursuant to “offer of judgment” statutes, as described below in “— Litigation Affecting the Cigarette Industry,” RJR Tobacco and its affiliates do not intend to settle such claims. | |||||||||||||||||||||||||||||||||
With respect to smoking and health tobacco litigation claims, the only significant settlements reached by RJR Tobacco and B&W involved: | |||||||||||||||||||||||||||||||||
• | the State Settlement Agreements and the funding by various tobacco companies of a $5.2 billion trust fund contemplated by the MSA to benefit tobacco growers; and | ||||||||||||||||||||||||||||||||
• | the original Broin flight attendant case discussed below under “— Litigation Affecting the Cigarette Industry — Broin II Cases.” | ||||||||||||||||||||||||||||||||
The circumstances surrounding the State Settlement Agreements and the funding of a trust fund to benefit the tobacco growers are readily distinguishable from the current categories of smoking and health cases involving RJR Tobacco or its affiliates and indemnitees. The claims underlying the State Settlement Agreements were brought on behalf of the states to recover funds paid for health care and medical and other assistance to state citizens suffering from diseases and conditions allegedly related to tobacco use. The State Settlement Agreements settled all the health-care cost recovery actions brought by, or on behalf of, the settling jurisdictions and contain releases of various additional present and future claims. In accordance with the MSA, various tobacco companies agreed to fund a $5.2 billion trust fund to be used to address the possible adverse economic impact of the MSA on tobacco growers. A discussion of the State Settlement Agreements, and a table depicting the related payment schedule, is set forth below under “— Litigation Affecting the Cigarette Industry — Health-Care Cost Recovery Cases.” | |||||||||||||||||||||||||||||||||
The states were a unique set of plaintiffs and are not involved in any of the smoking and health cases remaining against RJR Tobacco or its affiliates and indemnitees. Although RJR Tobacco and certain of its affiliates and indemnitees continue to be defendants in health-care cost recovery cases similar in theory to the state cases but involving other plaintiffs, such as Native American tribes and foreign governments, the vast majority of such cases have been dismissed on legal grounds. RJR Tobacco and its affiliates, including RAI, believe that the same legal principles that have resulted in dismissal of health-care cost recovery cases either at the trial court level or on appeal should compel dismissal of the similar pending cases. | |||||||||||||||||||||||||||||||||
As with claims that were resolved by the State Settlement Agreements, the other cases settled by RJR Tobacco can be distinguished from existing cases pending against RJR Tobacco and its affiliates and indemnitees. The original Broin case, discussed below under “— Litigation Affecting the Cigarette Industry — Broin II Cases,” was settled in the middle of trial during negotiations concerning a possible nation-wide settlement of claims similar to those underlying the State Settlement Agreements. | |||||||||||||||||||||||||||||||||
In 2010, RJR Tobacco entered into a comprehensive agreement with the Canadian federal, provincial and territorial governments, which resolved all civil claims related to the movement of contraband tobacco products in Canada during the period 1985 through 1999 that the Canadian governments could assert against RJR Tobacco and its affiliates. These claims were separate from any smoking and health tobacco litigation. | |||||||||||||||||||||||||||||||||
Likewise, in 2004, RJR Tobacco and B&W separately settled the antitrust case DeLoach v. Philip Morris Cos., Inc., which was brought by a unique class of plaintiffs: a class of all tobacco growers and tobacco allotment holders. The plaintiffs asserted that the defendants conspired to fix the price of tobacco leaf and to destroy the federal government’s tobacco quota and price support program. Despite legal defenses they believed to be valid, RJR Tobacco and B&W separately settled this case to avoid a long and contentious trial with the tobacco growers. The DeLoach case and the antitrust case currently pending against RJR Tobacco and B&W involve different types of plaintiffs and different theories of recovery under the antitrust laws than the smoking and health cases pending against RJR Tobacco and its affiliates and indemnitees. | |||||||||||||||||||||||||||||||||
Finally, as discussed under “— Litigation Affecting the Cigarette Industry — State Settlement Agreements —Enforcement and Validity; Adjustments,” RJR Tobacco and B&W each has settled certain cases brought by states concerning the enforcement of State Settlement Agreements. Despite legal defenses believed to be valid, these cases were settled to avoid further contentious litigation with the states involved. These enforcement actions involve alleged breaches of State Settlement Agreements based on specific actions taken by particular defendants. Accordingly, any future enforcement actions involving State Settlement Agreements will be reviewed by RJR Tobacco on the merits and should not be affected by the settlement of prior enforcement cases. | |||||||||||||||||||||||||||||||||
American Snuff Co. also believes that it has valid defenses to the smokeless tobacco litigation against it. American Snuff Co. asserted and will continue to assert some or all of these defenses in each case at the time and in the manner deemed appropriate by American Snuff Co. and its counsel. No verdict or judgment has been returned or entered against American Snuff Co. on any claim for personal injuries allegedly resulting from the use of smokeless tobacco products. American Snuff Co. intends to defend vigorously all smokeless tobacco litigation claims asserted against it. No liability for pending smokeless tobacco litigation was recorded in RAI’s consolidated balance sheet as of December 31, 2013. | |||||||||||||||||||||||||||||||||
Cautionary Statement | |||||||||||||||||||||||||||||||||
Even though RAI’s management continues to conclude that the loss of particular pending smoking and health tobacco litigation claims against RJR Tobacco or its affiliates or indemnitees, or the loss of any particular case concerning the use of smokeless tobacco products against American Snuff Co., when viewed on an individual case-by-case basis, is not probable, the possibility of material losses related to such litigation is more than remote. Litigation is subject to many uncertainties, and generally, it is not possible to predict the outcome of any particular litigation pending against RJR Tobacco, American Snuff Co. or their affiliates or indemnitees, or to reasonably estimate the amount or range of any possible loss. | |||||||||||||||||||||||||||||||||
Although RJR Tobacco believes that it has valid bases for appeals of adverse verdicts in its pending cases, and RJR Tobacco and RAI believe they have valid defenses to all actions, and intend to defend all actions vigorously, it is possible that there could be further adverse developments in pending cases, and that additional cases could be decided unfavorably against RAI, RJR Tobacco or their affiliates or indemnitees. Determinations of liability or adverse rulings in such cases or in similar cases involving other cigarette manufacturers as defendants, even if such judgments are not final, could have a material adverse effect on the litigation against RJR Tobacco or its affiliates or indemnitees and could encourage the commencement of additional tobacco-related litigation. In addition, a number of political, legislative, regulatory and other developments relating to the tobacco industry and cigarette smoking have received wide media attention. These developments may negatively affect the outcomes of tobacco-related legal actions and encourage the commencement of additional similar litigation. | |||||||||||||||||||||||||||||||||
Although it is impossible to predict the outcome of such events on pending litigation and the rate new lawsuits are filed against RJR Tobacco or its affiliates or indemnitees, a significant increase in litigation or in adverse outcomes for tobacco defendants, or difficulties in obtaining the bonding required to stay execution of judgments on appeal, could have a material adverse effect on any or all of these entities. Moreover, notwithstanding the quality of defenses available to RJR Tobacco and its affiliates and indemnitees in litigation matters, it is possible that RAI’s results of operations, cash flows or financial position could be materially adversely affected by the ultimate outcome of certain pending litigation matters against RJR Tobacco or its affiliates or indemnitees. | |||||||||||||||||||||||||||||||||
Similarly, smokeless tobacco litigation is subject to many uncertainties. Notwithstanding the quality of defenses available to American Snuff Co., it is possible that RAI’s results of operations, cash flows or financial position could be materially adversely affected by the ultimate outcome of certain pending litigation matters against American Snuff Co. | |||||||||||||||||||||||||||||||||
Litigation Affecting the Cigarette Industry | |||||||||||||||||||||||||||||||||
Overview | |||||||||||||||||||||||||||||||||
Introduction. In connection with the B&W business combination, RJR Tobacco agreed to indemnify B&W and its affiliates against, among other things, certain litigation liabilities, costs and expenses incurred by B&W or its affiliates arising out of the U.S. cigarette and tobacco business of B&W. Accordingly, the cases discussed below include cases brought solely against RJR Tobacco and its affiliates, including RAI and RJR; cases brought against both RJR Tobacco, its affiliates and B&W; and cases brought solely against B&W and assumed by RJR Tobacco in the B&W business combination. | |||||||||||||||||||||||||||||||||
During the fourth quarter of 2013, three tobacco-related cases were served against RJR Tobacco or its affiliates or indemnitees. On December 31, 2013, there were 165 cases pending against RJR Tobacco or its affiliates or indemnitees: 149 in the United States and 16 in Canada, as compared with 174 total cases on December 31, 2012. The U.S. case number does not include the approximately 564 individual smoker cases pending in West Virginia state court as a consolidated action, 5,131 Engle Progeny cases, involving approximately 6,323 individual plaintiffs, and 2,572 Broin II cases (as hereinafter defined), pending in the United States against RJR Tobacco or its affiliates or indemnitees. Of the U.S. cases pending on December 31, 2013, 16 are pending in federal court, 132 in state court and 1 in tribal court, primarily in the following states: Florida (26 cases); Maryland (22 cases); Missouri (19 cases); New York (14 cases); Louisiana (9 cases); and California (9 cases). | |||||||||||||||||||||||||||||||||
The following table lists the categories of the U.S. tobacco-related cases pending against RJR Tobacco or its affiliates or indemnitees as of December 31, 2013, compared with the number of cases pending against RJR Tobacco, its affiliates or indemnitees as of September 30, 2013, as reported in RAI’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2013, filed with the SEC on October 22, 2013, and a cross-reference to the discussion of each case type. | |||||||||||||||||||||||||||||||||
Case Type | RJR Tobacco’s | Change in | Page | ||||||||||||||||||||||||||||||
Case Numbers as | Number of | Reference | |||||||||||||||||||||||||||||||
of December 31, 2013 | Cases Since | ||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
Increase/(Decrease) | |||||||||||||||||||||||||||||||||
Individual Smoking and Health | 94 | (2 | ) | 109 | |||||||||||||||||||||||||||||
West Virginia IPIC (Number of Plaintiffs)* | 1 (approx. 564) | approx. 534 | 111 | ||||||||||||||||||||||||||||||
Engle Progeny (Number of Plaintiffs)** | 5,131 (approx. 6,323) | (56) (21) | 111 | ||||||||||||||||||||||||||||||
Broin II | 2,572 | -2 | 126 | ||||||||||||||||||||||||||||||
Class-Action | 8 | No change | 126 | ||||||||||||||||||||||||||||||
Health-Care Cost Recovery | 2 | No change | 129 | ||||||||||||||||||||||||||||||
State Settlement Agreements — Enforcement and Validity; Adjustments | 31 | No change | 137 | ||||||||||||||||||||||||||||||
Antitrust | 1 | No change | 142 | ||||||||||||||||||||||||||||||
Other Litigation and Developments | 12 | 2 | 142 | ||||||||||||||||||||||||||||||
* | Includes as one case the approximately 564 cases pending as a consolidated action In Re: Tobacco Litigation Individual Personal Injury Cases, sometimes referred to as West Virginia IPIC cases, described below. The West Virginia IPIC cases have been separated from the Individual Smoking and Health cases for reporting purposes. | ||||||||||||||||||||||||||||||||
** | The Engle Progeny cases have been separated from the Individual Smoking and Health cases for reporting purposes. The number of cases has decreased as the result of many of the federal and state court cases being dismissed or duplicate actions being consolidated. | ||||||||||||||||||||||||||||||||
The following cases against RJR Tobacco and B&W have attracted significant attention: the Florida state court class-action case, Engle v. R. J. Reynolds Tobacco Co. and the related Engle Progeny cases; and the case brought by the U.S. Department of Justice under the federal Racketeer Influenced and Corrupt Organizations Act, referred to as RICO. | |||||||||||||||||||||||||||||||||
In 2000, a jury in Engle v. Liggett Group, a class-action brought against the major U.S. cigarette manufacturers by Florida smokers allegedly harmed by their addiction to nicotine, rendered a $145 billion punitive damages verdict in favor of the class. In 2006, the Florida Supreme Court set aside that award, prospectively decertified the class, and preserved several of the Engle jury findings for use in subsequent individual actions to be filed within one year of its decision. The preserved findings include jury determinations that smoking causes various diseases, that nicotine is addictive, and that each defendant sold cigarettes that were defective and unreasonably dangerous, committed unspecified acts of negligence and individually and jointly concealed unspecified information about the health risks of smoking. | |||||||||||||||||||||||||||||||||
In the wake of Engle, thousands of individual progeny actions were filed in federal and state courts in Florida. Such actions are commonly referred to as “Engle Progeny” cases. As of December 31, 2013, 1,925 Engle Progeny cases were pending in federal court, and 3,206 of them were pending in state court. These cases include approximately 6,323 plaintiffs. In addition, as of December 31, 2013, RJR Tobacco was aware of 16 additional Engle Progeny cases that had been filed but not served. Eighty Engle Progeny cases have been tried in Florida state and federal courts since 2011, and numerous state court trials are scheduled for 2014. The number of pending cases fluctuates for a variety of reasons, including voluntary and involuntary dismissals. Voluntary dismissals include cases in which a plaintiff accepts an “offer of judgment,” referred to in Florida statutes as “proposals for settlement,” from RJR Tobacco and/or its affiliates. An offer of judgment, if rejected by the plaintiff, preserves RJR Tobacco’s right to recover attorneys’ fees under Florida law in the event of a verdict favorable to RJR Tobacco. Such offers are sometimes made through court-ordered mediations. | |||||||||||||||||||||||||||||||||
In Engle Progeny cases tried to date, a central issue has been the proper use of the preserved Engle findings. RJR Tobacco has argued that use of the Engle findings to establish individual elements of progeny claims (such as defect, negligence and concealment) is a violation of federal due process. In 2013, however, both the Florida Supreme Court and the U.S. Court of Appeals for the Eleventh Circuit, referred to as the Eleventh Circuit, rejected that argument. In addition to this global due process argument, RJR Tobacco raises many other factual and legal defenses as appropriate in each case. These defenses may include, among other things, arguing that the plaintiff is not a proper member of the Engle class, that the plaintiff did not rely on any statements by any tobacco company, that the trial was conducted unfairly, that some or all claims are barred by applicable statutes of limitation or statutes of repose, or that any injury was caused by the smoker’s own conduct. | |||||||||||||||||||||||||||||||||
Thirteen Engle Progeny cases have become final to date. These cases resulted in aggregate payments by RJR Tobacco of $109.8 million ($83.1 million for compensatory and punitive damages and $26.7 million for attorneys’ fees and statutory interest). During the fourth quarter of 2013, a payment of $305,000 ($250,000 for compensatory damages and $55,000 for attorneys’ fees and interest) was made in satisfaction of the adverse judgment in the Douglas case, an Engle Progeny case, described below. Payment in Ward, an Engle Progeny case, of $2.4 million was made on January 31, 2014. | |||||||||||||||||||||||||||||||||
In 2013, four Engle Progeny cases became final. These cases resulted in RJR Tobacco paying $6.5 million ($1.8 million for compensatory damages and $4.7 million for attorneys’ fees and statutory interest). In Bowman v. R. J. Reynolds Tobacco Co., Reese v. R. J. Reynolds Tobacco Co., and Weingart v. R. J. Reynolds Tobacco Co., the plaintiffs’ judgments were affirmed in an initial appeal, and RJR Tobacco decided to not seek further review. Bowman, Reese and Weingart resulted in an aggregate payment of $6.2 million ($1.5 million for compensatory damages and $4.7 million for attorneys’ fees and interest) in the second quarter of 2013. In Douglas v. Philip Morris USA, Inc., the Florida Supreme Court ruled against RJR Tobacco on its global due process argument, and the U.S. Supreme Court denied RJR Tobacco’s ensuing petition for certiorari. Douglas resulted in a payment by RJR Tobacco of $305,000 ($250,000 for compensatory damages and $55,000 for attorneys’ fees and statutory interest) in the fourth quarter of 2013. In addition, based on its evaluation of the Jimmie Lee Brown, Sherman, Koballa, Ward, Duke, Walker, Hiott, Kirkland and Sury cases, RJR Tobacco reflected an accrual for loss of $11 million in these cases ($5.4 million for compensatory and punitive damages and $5.6 million for attorneys’ fees and statutory interest). The following chart reflects the details related to these cases: | |||||||||||||||||||||||||||||||||
Plaintiff | RJR Tobacco | Compensatory | Punitive | Status | |||||||||||||||||||||||||||||
Case Name | Allocation of | Damages (as | Damages | ||||||||||||||||||||||||||||||
Fault | adjusted)(1) | ||||||||||||||||||||||||||||||||
Bowman | 30 | % | $ | 450,000 | $ | — | Paid | ||||||||||||||||||||||||||
Reese | 30 | % | 1,065,000 | — | Paid | ||||||||||||||||||||||||||||
Weingart | 3 | % | 4,500 | — | Paid | ||||||||||||||||||||||||||||
Douglas | 5 | % | 250,000 | — | Paid | ||||||||||||||||||||||||||||
Ward | 30 | % | 487,000 | 1,700,000 | Paid in January 2014 | ||||||||||||||||||||||||||||
Sherman | 50 | % | 775,000 | — | Pending-Florida Supreme Court | ||||||||||||||||||||||||||||
Jimmie Lee Brown | 50 | % | 600,000 | — | Pending-Florida Supreme Court | ||||||||||||||||||||||||||||
Koballa | 30 | % | 300,000 | — | Notice to invoke jurisdiction of Florida Supreme Court pending | ||||||||||||||||||||||||||||
Kirkland | 10 | % | 260,000 | — | Affirmed by Second DCA | ||||||||||||||||||||||||||||
Duke | 25 | % | 7,676 | — | Preparing to seek review with U.S. Supreme Court | ||||||||||||||||||||||||||||
Walker | 10 | % | 27,500 | — | Preparing to seek review with U.S. Supreme Court | ||||||||||||||||||||||||||||
Hiott | 40 | % | 730,000 | — | Preparing to seek review with the Florida Supreme Court | ||||||||||||||||||||||||||||
Sury | 20 | % | 500,000 | — | Florida Supreme Court denied petition for review | ||||||||||||||||||||||||||||
Totals | $ | 5,456,676 | $ | 1,700,000 | |||||||||||||||||||||||||||||
(1) | Compensatory damages are adjusted to reflect the reduction required by the allocation of fault. Punitive damages are not adjusted and reflect the amount of the final judgment(s) signed by the trial court judge(s). The amounts listed above do not include attorneys’ fees or statutory interest that apply to the judgments. | ||||||||||||||||||||||||||||||||
In 2012, four Engle Progeny cases became final. These cases resulted in RJR Tobacco paying $34 million ($25.8 million for compensatory and punitive damages and $8.1 million for attorneys’ fees and statutory interest) in 2012. The following chart reflects the details related to these cases: | |||||||||||||||||||||||||||||||||
Plaintiff | RJR Tobacco | Compensatory | Punitive | Status | |||||||||||||||||||||||||||||
Case Name | Allocation of | Damages (as | Damages | ||||||||||||||||||||||||||||||
Fault | adjusted)(1) | ||||||||||||||||||||||||||||||||
Earline Alexander | 51 | % | $ | 1,275,000 | $ | 2,500,000 | Paid | ||||||||||||||||||||||||||
Huish | 25 | % | 188,000 | 1,500,000 | Paid | ||||||||||||||||||||||||||||
Piendle | 27.5 | % | 1,100,000 | 180,000 | Paid | ||||||||||||||||||||||||||||
Clay | 60 | % | 2,100,000 | 17,000,000 | Paid | ||||||||||||||||||||||||||||
Totals | $ | 4,663,000 | $ | 21,180,000 | |||||||||||||||||||||||||||||
(1) | Compensatory damages are adjusted to reflect the reduction required by the allocation of fault. Punitive damages are not adjusted and reflect the amount of the final judgment(s) signed by the trial court judge(s). The amounts listed above do not include attorneys’ fees or statutory interest that apply to the judgments. | ||||||||||||||||||||||||||||||||
In addition, four Engle Progeny cases became final in 2011, which resulted in RJR Tobacco paying $66.5 million ($53.3 million for compensatory and punitive damages and $13.5 million for attorneys’ fees and statutory interest) in 2012. The following chart reflects the details related to these cases: | |||||||||||||||||||||||||||||||||
Plaintiff | RJR Tobacco | Compensatory | Punitive | Status | |||||||||||||||||||||||||||||
Case Name | Allocation of | Damages (as | Damages | ||||||||||||||||||||||||||||||
Fault | adjusted)(1) | ||||||||||||||||||||||||||||||||
Martin | 66 | % | $ | 3,300,000 | $ | 25,000,000 | Paid | ||||||||||||||||||||||||||
Campbell | 39 | % | 3,040,000 | — | Paid | ||||||||||||||||||||||||||||
Gray | 60 | % | 4,200,000 | 2,000,000 | Paid | ||||||||||||||||||||||||||||
Hall | 65 | % | 3,250,000 | 12,500,000 | Paid | ||||||||||||||||||||||||||||
Totals | $ | 13,790,000 | $ | 39,500,000 | |||||||||||||||||||||||||||||
(1) | Compensatory damages are adjusted to reflect the reduction required by the allocation of fault. Punitive damages are not adjusted and reflect the amount of the final judgment(s) signed by the trial court judge(s). The amounts listed above do not include attorneys’ fees or statutory interest that apply to the judgments. | ||||||||||||||||||||||||||||||||
The following chart reflects verdicts in all other individual Engle Progeny cases, pending as of December 31, 2013, in which a verdict has been returned against RJR Tobacco or B&W, or both, and has not been set aside on appeal. No liability for any of these cases has been recorded in RAI’s consolidated balance sheet as of December 31, 2013. This chart does not include the mistrials or verdicts returned in favor of RJR Tobacco or B&W, or both. | |||||||||||||||||||||||||||||||||
Plaintiff | RJR Tobacco | Compensatory | Punitive | Appeal Status | |||||||||||||||||||||||||||||
Case Name | Allocation of | Damages (as | Damages | ||||||||||||||||||||||||||||||
Fault | adjusted)(1) | ||||||||||||||||||||||||||||||||
Cohen | 33.30% | $ | 3,300,000 | $ | — | Punitive damages set aside; remanded for partial | |||||||||||||||||||||||||||
new trial; notice to invoke jurisdiction of | |||||||||||||||||||||||||||||||||
Florida Supreme Court pending | |||||||||||||||||||||||||||||||||
Townsend | 51% | 5,500,000 | 20,000,000 | Notice to invoke jurisdiction of Florida | |||||||||||||||||||||||||||||
Supreme Court pending | |||||||||||||||||||||||||||||||||
Buonomo | 77.50% | 4,060,000 | — | Punitive damages set aside; remanded for new | |||||||||||||||||||||||||||||
trial; notice to invoke jurisdiction of Florida | |||||||||||||||||||||||||||||||||
Supreme Court pending | |||||||||||||||||||||||||||||||||
Webb | 90% | — | — | Reversed and remanded for new trial on | |||||||||||||||||||||||||||||
damages | |||||||||||||||||||||||||||||||||
Mack | 65% | 1,885,000 | — | Pending — First DCA | |||||||||||||||||||||||||||||
Soffer | 40% | 2,000,000 | — | Notice to invoke jurisdiction of Florida | |||||||||||||||||||||||||||||
Supreme Court pending | |||||||||||||||||||||||||||||||||
Ciccone | 30% | 1,000,000 | — | Notice to invoke jurisdiction of Florida | |||||||||||||||||||||||||||||
Supreme Court pending | |||||||||||||||||||||||||||||||||
Hallgren | 25% | 1,000,000(3) | 750,000 | Notice to invoke jurisdiction of Florida | |||||||||||||||||||||||||||||
Supreme Court pending | |||||||||||||||||||||||||||||||||
Plaintiff | RJR Tobacco | Compensatory | Punitive | Appeal Status | |||||||||||||||||||||||||||||
Case Name | Allocation of | Damages (as | Damages | ||||||||||||||||||||||||||||||
Fault | adjusted)(1) | ||||||||||||||||||||||||||||||||
Emmon Smith | 70% | 7,000,000 | 20,000,000 | Motion for rehearing pending — First DCA | |||||||||||||||||||||||||||||
Calloway | 27% | 16,100,000 | (4) | 17,250,000 | Pending — Fourth DCA | ||||||||||||||||||||||||||||
Hancock | 5% | 700 | — | Pending — Fourth DCA | |||||||||||||||||||||||||||||
Sikes | 51% | 3,520,000 | 2,000,000 | Pending — First DCA | |||||||||||||||||||||||||||||
James Smith | 55% | 600,000 | (5) | 20,000 | Pending — Eleventh Circuit | ||||||||||||||||||||||||||||
Schlenther | 50% | 5,030,000 | (5) | 2,500,000 | Pending — Second DCA | ||||||||||||||||||||||||||||
Ballard | 55% | 5,000,000 | — | Pending — Third DCA | |||||||||||||||||||||||||||||
Lock | 9% | 103,500 | — | Pending — Second DCA | |||||||||||||||||||||||||||||
Williams | 85% | 4,250,000 | — | Pending — Third DCA | |||||||||||||||||||||||||||||
Evers | 60% | 1,938,000 | — | Punitive damages reversed; pending — | |||||||||||||||||||||||||||||
Second DCA | |||||||||||||||||||||||||||||||||
Schoeff | 75% | 7,875,000 | 30,000,000 | Pending — Fourth DCA | |||||||||||||||||||||||||||||
Marotta | 58% | 3,480,000 | — | Pending — Fourth DCA | |||||||||||||||||||||||||||||
Searcy | 30% | 1,000,000 | (6) | 1,670,000 | Pending — Eleventh Circuit | ||||||||||||||||||||||||||||
Aycock | 72.50% | 4,277,000 | — | Pending — Eleventh Circuit | |||||||||||||||||||||||||||||
Earl Graham | 20% | 550,000 | — | Pending — Eleventh Circuit | |||||||||||||||||||||||||||||
Starr-Blundell | 10% | 50,000 | — | Pending — First DCA | |||||||||||||||||||||||||||||
Odum | 50% | 100,000 | — | Pending — First DCA | |||||||||||||||||||||||||||||
Skolnick | 30% | 767,000 | — | Pending — Fourth DCA | |||||||||||||||||||||||||||||
Thibault | 70% | 1,750,000 | (5) | 1,275,000 | Pending — First DCA | ||||||||||||||||||||||||||||
Grossman | 75% | 15,350,000 | (5) | 22,500,000 | Pending — Fourth DCA | ||||||||||||||||||||||||||||
Gafney | 33% | 1,914,000 | — | Pending — Fourth DCA | |||||||||||||||||||||||||||||
Crawford | 70% | 9,000,000 | 1,000,000 | Pending — Third DCA | |||||||||||||||||||||||||||||
Harford | 18% | 59,000 | — | Post-trial motions are pending(2) | |||||||||||||||||||||||||||||
Cheeley | 50% | 3,000,000 | 2,000,000 | Post-trial motions are pending(2) | |||||||||||||||||||||||||||||
Totals | $ | 111,459,200 | $ | 120,965,000 | |||||||||||||||||||||||||||||
(1) | Unless otherwise noted, compensatory damages in these cases are adjusted to reflect the jury’s allocation of comparative fault. Punitive damages are not so adjusted. The amounts listed above do not include attorneys’ fees or statutory interest that may apply to the judgments. | ||||||||||||||||||||||||||||||||
(2) | Should the pending post-trial motions be denied, RJR Tobacco will file a notice of appeal with the appropriate appellate court. | ||||||||||||||||||||||||||||||||
(3) | The trial court held the defendants liable for the entire $1 million, even though the jury allocated 50% of fault to the plaintiff and 50% to the defendants. | ||||||||||||||||||||||||||||||||
(4) | In its ruling on the post-trial motions, the court determined that the jury’s apportionment of comparative fault did not apply to the compensatory damages award and found the defendants jointly and severally liable. | ||||||||||||||||||||||||||||||||
(5) | The court did not apply comparative fault in the final judgment. | ||||||||||||||||||||||||||||||||
(6) | The court held the defendants liable for the entire $1 million, even though the jury allocated 40% of fault to the plaintiff and 60% to the defendants. | ||||||||||||||||||||||||||||||||
Outstanding judgments in favor of the Engle Progeny plaintiffs have been entered and remain outstanding against RJR Tobacco in the amount of $111,459,200 in compensatory damages (as adjusted) and in the amount of $120,965,000 in punitive damages, for a total of $232,424,200. All of these verdicts are at various stages in the appellate process. RJR Tobacco continues to believe that it has valid defenses in these cases, including case-specific issues beyond the due process issue discussed above. It is the policy of RJR Tobacco and its affiliates to vigorously defend all smoking and health claims, including in Engle Progeny cases. | |||||||||||||||||||||||||||||||||
Should RJR Tobacco not prevail in any particular individual Engle Progeny case or determine that in any individual Engle Progeny case an unfavorable outcome has become probable and the amount can be reasonably estimated, a loss would be recognized, which could have a material adverse effect on earnings and cash flows of RAI in a particular fiscal quarter or fiscal year. This position on loss recognition for Engle Progeny cases as of December 31, 2013, is consistent with RAI’s and RJR Tobacco’s historic position on loss recognition for other smoking and health litigation. It is also the policy of RJR Tobacco to record any loss concerning litigation at such time as an unfavorable outcome becomes probable and the amount can be reasonably estimated on an individual case-by-case basis. | |||||||||||||||||||||||||||||||||
In the U.S. Department of Justice case, brought in 1999 in the U.S. District Court for the District of Columbia, the government sought, among other forms of relief, the disgorgement of profits pursuant to the civil provisions of RICO. The U.S. Court of Appeals for the District of Columbia ruled in 2005 that disgorgement is not an available remedy in the case. The bench trial ended in June 2005, and the court, in August 2006, issued its ruling, among other things, finding certain defendants, including RJR Tobacco and B&W, liable for the RICO claims, imposing no direct financial penalties on the defendants, but ordering the defendants to make certain “corrective communications” in a variety of media and enjoining the defendants from using certain brand descriptors. Both sides appealed to the U.S. Court of Appeals for the District of Columbia. In May 2009, the U.S. Court of Appeals largely affirmed the findings against the tobacco company defendants and remanded to the trial court for further proceedings. The U.S. Supreme Court denied the parties’ petitions for writ of certiorari in June 2010. Post-remand proceedings are underway to determine the extent to which the original order will be implemented. | |||||||||||||||||||||||||||||||||
For a detailed description of these cases, see “— Engle and Engle Progeny Cases” and “— Health-Care Cost Recovery Cases — U.S. Department of Justice Case” below. | |||||||||||||||||||||||||||||||||
In November 1998, the major U.S. cigarette manufacturers, including RJR Tobacco and B&W, entered into the MSA with 46 U.S. states, Washington, D.C. and certain U.S. territories and possessions. These cigarette manufacturers previously settled four other cases, brought on behalf of Mississippi, Florida, Texas and Minnesota, by separate agreements with each state. These State Settlement Agreements: | |||||||||||||||||||||||||||||||||
• | settled all health-care cost recovery actions brought by, or on behalf of, the settling jurisdictions; | ||||||||||||||||||||||||||||||||
• | released the major U.S. cigarette manufacturers from various additional present and potential future claims; | ||||||||||||||||||||||||||||||||
• | imposed future payment obligations in perpetuity on RJR Tobacco, B&W and other major U.S. cigarette manufacturers; and | ||||||||||||||||||||||||||||||||
• | placed significant restrictions on their ability to market and sell cigarettes and smokeless tobacco products. | ||||||||||||||||||||||||||||||||
Payments under the State Settlement Agreements are subject to various adjustments for, among other things, the volume of cigarettes sold, relevant market share and inflation. See “— Health-Care Cost Recovery Cases — State Settlement Agreements” below for a detailed discussion of the State Settlement Agreements, including RAI’s operating subsidiaries’ monetary obligations under these agreements. RJR Tobacco records the allocation of settlement charges as products are shipped. | |||||||||||||||||||||||||||||||||
Scheduled Trials. Trial schedules are subject to change, and many cases are dismissed before trial. It is likely that RJR Tobacco and other cigarette manufacturers will have an increased number of tobacco-related trials in 2014. There are nine cases, exclusive of Engle Progeny cases, scheduled for trial as of December 31, 2013 through December 31, 2014, for RJR Tobacco or its affiliates and indemnitees: two non-smoking and health cases, six individual smoking and health cases and one class action. There are 65 Engle Progeny cases against RJR Tobacco and/or B&W set for trial through December 31, 2014, but it is not known how many of these cases will actually be tried. | |||||||||||||||||||||||||||||||||
Trial Results. From January 1, 2011 through December 31, 2013, 85 smoking and health, Engle Progeny and health-care cost recovery cases in which RJR Tobacco or B&W were defendants were tried, including 4 trials for cases where mistrials were declared in the original proceedings. Verdicts in favor of RJR Tobacco, B&W and, in some cases, RJR Tobacco, B&W and other defendants, were returned in 41 cases, including 11 mistrials, tried in Florida (38), Missouri (1) and West Virginia (2). Verdicts in favor of the plaintiffs were returned in 40 cases tried in Florida and one in New York. Three cases in Florida were dismissed during trial. | |||||||||||||||||||||||||||||||||
In the fourth quarter of 2013, two Engle Progeny cases in which RJR Tobacco was a defendant were tried: | |||||||||||||||||||||||||||||||||
• | In Blasco v. R. J. Reynolds Tobacco Co., RJR Tobacco was voluntarily dismissed after trial began. | ||||||||||||||||||||||||||||||||
• | In Chamberlain v. R. J. Reynolds Tobacco Co., the jury returned a verdict in favor of the defendants, including RJR Tobacco. | ||||||||||||||||||||||||||||||||
For a detailed description of the above-described cases, see “— Engle and Engle Progeny Cases” below. | |||||||||||||||||||||||||||||||||
In addition, since the end of the fourth quarter of 2013, decisions were entered in the following Engle Progeny cases: | |||||||||||||||||||||||||||||||||
• | In Bush v. R. J. Reynolds Tobacco Co., the court declared a mistrial due to the inability to seat a jury. | ||||||||||||||||||||||||||||||||
• | In Meeker v. R. J. Reynolds Tobacco Co., the jury returned a verdict in favor of RJR Tobacco. | ||||||||||||||||||||||||||||||||
• | In Cuculino v. R. J. Reynolds Tobacco Co., the jury returned a verdict in favor of RJR Tobacco and against the remaining defendant. | ||||||||||||||||||||||||||||||||
• | In the Anderson v. R. J. Reynolds Tobacco Co. retrial, the jury returned a verdict in favor of RJR Tobacco. | ||||||||||||||||||||||||||||||||
• | In Harford v. R. J. Reynolds Tobacco Co., the jury returned a verdict in favor of the plaintiff, found the plaintiff to be 82% at fault and RJR Tobacco to be 18% at fault, and awarded $330,000 in compensatory damages. Punitive damages were not awarded. | ||||||||||||||||||||||||||||||||
• | In Cheeley v. R. J. Reynolds Tobacco Co., the jury returned a verdict in favor of the plaintiff, found the decedent, Georgia Cheeley, to be 50% at fault and RJR Tobacco to be 50% at fault, and awarded $3 million in compensatory damages and $2 million in punitive damages. | ||||||||||||||||||||||||||||||||
• | In Deshaies v. R. J. Reynolds Tobacco Co., the jury returned a verdict in favor of RJR Tobacco. | ||||||||||||||||||||||||||||||||
In the fourth quarter of 2013, no non-Engle Progeny individual smoking and health cases in which RJR Tobacco was a defendant were tried. | |||||||||||||||||||||||||||||||||
The following chart reflects the verdicts in the smoking and health cases or health-care cost recovery cases that have been tried and remain pending as of December 31, 2013, in which verdicts have been returned against RJR Tobacco or B&W, or both. For information on the verdicts in the Engle Progeny cases that have been tried and remain pending as of December 31, 2013, in which verdicts have been returned against RJR Tobacco or B&W, or both, see the Engle Progeny cases chart above. For information on the post-trial status of individual smoking and health cases and the governmental health-care cost recovery case, see “— Individual Smoking and Health Cases,” and “—Health-Care Cost Recovery Cases — U.S. Department of Justice Case,” respectively, below: | |||||||||||||||||||||||||||||||||
Date of Verdict | Case Name/Type | Jurisdiction | Verdict | ||||||||||||||||||||||||||||||
August 17, 2006 | United States v. Philip Morris USA, | U.S. District Court, District of Columbia (Washington, DC) | RJR Tobacco and B&W were found liable for civil RICO claims; were enjoined from using certain brand descriptors and from making certain misrepresentations; and were ordered to make corrective communications on five subjects, including smoking and health and addiction, to reimburse the U.S. Department of Justice appropriate costs associated with the lawsuit, and to maintain document web sites. | ||||||||||||||||||||||||||||||
Inc. | |||||||||||||||||||||||||||||||||
[Governmental Health- | |||||||||||||||||||||||||||||||||
Care Cost | |||||||||||||||||||||||||||||||||
Recovery] | |||||||||||||||||||||||||||||||||
May 26, 2010 | Izzarelli v. R. J. Reynolds Tobacco Co. | U.S. District Court, | $13.9 million in compensatory damages; 58% of fault assigned to RJR Tobacco, which reduced the award to $8.08 million against RJR Tobacco; $3.97 million in punitive damages. | ||||||||||||||||||||||||||||||
[Individual] | District of Connecticut, | ||||||||||||||||||||||||||||||||
(Bridgeport, CT) | |||||||||||||||||||||||||||||||||
Individual Smoking and Health Cases | |||||||||||||||||||||||||||||||||
As of December 31, 2013, 94 individual cases were pending in the United States against RJR Tobacco, B&W, as its indemnitee, or both. This category of cases includes smoking and health cases alleging personal injury brought by or on behalf of individual plaintiffs, but does not include the Broin II, Engle Progeny or West Virginia IPICcases discussed below. A total of 92 of the individual cases are brought by or on behalf of individual smokers or their survivors, while the remaining two cases are brought by or on behalf of individuals or their survivors alleging personal injury as a result of exposure to environmental tobacco smoke, referred to as ETS. | |||||||||||||||||||||||||||||||||
Below is a description of the individual smoking and health cases against RJR Tobacco or B&W, or both, which went to trial or were decided during the period from October 1, 2013 to December 31, 2013, or remained on appeal as of December 31, 2013. | |||||||||||||||||||||||||||||||||
On February 1, 2005, the jury returned a split verdict in Smith v. Brown & Williamson Tobacco Corp., a case filed in May 2003 in Circuit Court, Jackson County, Missouri, finding in favor of B&W on two counts, fraudulent concealment and conspiracy, and finding in favor of the plaintiffs on negligence, which incorporates failure to warn and product defect claims. The plaintiffs were awarded $2 million in compensatory damages and $20 million in punitive damages; however, the jury found the plaintiff to be 75% at fault and B&W 25% at fault, and thus the compensatory award was reduced to $500,000. The Missouri Court of Appeals affirmed the compensatory damages award but reversed and ordered a new trial on punitive damages. On July 29, 2009, RJR Tobacco, on behalf of B&W, paid the compensatory damages verdict, plus interest, in the amount of approximately $700,000. In August 2009, the jury in the punitive damages retrial returned a verdict for the plaintiffs and awarded the plaintiffs $1.5 million in punitive damages. B&W and the plaintiffs filed notices of appeal in December 2009. In October 2012, the Missouri Court of Appeals reversed the punitive damages award entered in August 2009, and remanded the case for another new trial on punitive damages. In November 2012, B&W filed an application for transfer to the Missouri Supreme Court, which was granted in December 2012. The Missouri Supreme Court affirmed the trial court’s judgment in September 2013. RJR Tobacco paid $1.5 million in satisfaction of the judgment on November 1, 2013. | |||||||||||||||||||||||||||||||||
On May 26, 2010, the jury returned a verdict in favor of the plaintiff in Izzarelli v. R. J. Reynolds Tobacco Co., a case filed in December 1999 in the U.S. District Court for the District of Connecticut. The plaintiff sought to recover damages for personal injuries that the plaintiff alleges she sustained as a result of unsafe and unreasonably dangerous cigarette products and for economic losses she sustained as a result of unfair trade practices of the defendant. The jury found RJR Tobacco to be 58% at fault and the plaintiff to be 42% at fault, awarded $13.9 million in compensatory damages and found the plaintiff to be entitled to punitive damages. In December 2010, the court awarded the plaintiff $3.97 million in punitive damages. Final judgment was entered on December 30, 2010, in the amount of $11.95 million. The court granted the plaintiff’s motion for offer of judgment interest, and awarded the plaintiff $15.8 million for the period of December 6, 1999 up to and including December 5, 2010, and approximately $4,000 per day thereafter until an amended judgment was entered. The amended judgment was entered in the amount of approximately $28.1 million on March 4, 2011. RJR Tobacco filed a notice of appeal in September 2011, and the plaintiff thereafter cross appealed with respect to the punitive damages award. In September 2013, the U.S. Court of Appeals for the Second Circuit issued an opinion that certified the following question to the Connecticut Supreme Court: “Does Comment i to section 402A of the Restatement (Second) of Torts preclude a suit premised on strict products liability against a cigarette manufacturer based on evidence that the defendant purposefully manufactured cigarettes to increase daily consumption without regard to the resultant increase in exposure to carcinogens, but in the absence of evidence of any adulteration or contamination?” Subsequently, the plaintiff submitted a motion to the U.S. Court of Appeals for the Second Circuit to amend the certification order to add a second question to the Connecticut Supreme Court: “Does Comment i to section 402A of the Restatement (Second) of Torts preclude a claim under the [Connecticut Products Liability Act] against a cigarette manufacturer for negligence (in the design of its cigarette products)?” RJR Tobacco opposed that motion, and the Second Circuit thereafter denied the plaintiff’s motion. The Connecticut Supreme Court accepted the certified question and denied the plaintiff’s request to amend the question with the same additional question that the plaintiff proposed to the Second Circuit. Briefing before the Connecticut Supreme Court on the certified question is underway. The Second Circuit has retained jurisdiction over the parties’ appeals and will decide the case after the Connecticut Supreme Court has completed its proceedings. | |||||||||||||||||||||||||||||||||
On June 19, 2013, in Whitney v. R. J. Reynolds Tobacco Co., the jury returned a verdict in favor of the defendants, including RJR Tobacco. The case was filed in January 2011, in the Circuit Court, Alachua County, Florida. The plaintiff alleged that as a result of using the defendants’ products, she suffers from lung cancer and emphysema. Final judgment was entered on July 10, 2013. The plaintiff’s motion for a new trial was denied. The plaintiff filed a notice of appeal to the First District Court of Appeal, and the defendants filed a notice of cross appeal in August 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
West Virginia IPIC | |||||||||||||||||||||||||||||||||
In re: Tobacco Litigation Individual Personal Injury Cases began in 1999, in West Virginia state court, as a series of roughly 1200 individual plaintiff cases making claims with respect to cigarettes manufactured by Philip Morris, Lorillard, RJR Tobacco, B&W and The American Tobacco Company. The cases were consolidated for a Phase I trial on various defense conduct issues, to be followed in Phase II by individual trials of any claims left standing. Over the years, approximately 600 individual plaintiff claims were dismissed for failure to comply with the case management order, leaving 564 individual cases pending as of April 2013. On April 15, 2013, the Phase I jury trial began and ended with a virtually complete defense verdict on May 15, 2013. The jury found that cigarettes were not defectively designed, were not defective due to a failure to warn prior to July 1, 1969, that defendants were not negligent, did not breach warranties and did not engage in conduct which would warrant punitive damages. The only claim remaining after the verdict was the jury’s finding that all ventilated filter cigarettes manufactured and sold between 1964 and July 1, 1969 were defective for a failure to instruct. The defendants believe that there are only 30 plaintiffs remaining who arguably claim to have smoked a ventilated filter cigarette during the relevant period. The court initially entered judgment on the verdict identifying the 30 plaintiffs remaining, but vacated those orders as premature (leaving to a later day the task of identifying the plaintiffs who might be able to assert a ventilated filter failure to instruct claim during the narrow relevant period). The court entered a new judgment in October 2013, dismissing all claims lost by the plaintiffs and purporting to make those claims and all of the jury rulings immediately subject to appeal. The plaintiffs filed a notice of appeal to the West Virginia Supreme Court of Appeals in November 2013, with briefing expected to occur during the first quarter of 2014. The defendants did not file a notice of appeal on the ventilated filter finding, but retained the right to file a cross appeal on that issue in response to the plaintiff’s initial brief. | |||||||||||||||||||||||||||||||||
Engle and Engle Progeny Cases | |||||||||||||||||||||||||||||||||
Trial began in July 1998 in Engle v. R. J. Reynolds Tobacco Co., a class-action filed in Circuit Court, Miami-Dade County, Florida. The Engle class consisted of Florida citizens and residents, and their survivors, who suffer from or have died from diseases or medical conditions caused by an addiction to smoking. The action was brought against the major U.S. cigarette manufacturers, including RJR Tobacco and B&W. In July 1999, the Engle jury found against RJR Tobacco, B&W and the other defendants in the initial phase of the trial, which addressed alleged common issues related to the defendants’ conduct, general causation, the addictiveness of cigarettes, and potential entitlement to punitive damages. | |||||||||||||||||||||||||||||||||
On July 14, 2000, in the second phase of the trial, the jury returned a punitive damages verdict in favor of the class of approximately $145 billion, including verdicts of $36.3 billion and $17.6 billion against RJR Tobacco and B&W, respectively. | |||||||||||||||||||||||||||||||||
On appeal, the Florida Supreme Court prospectively decertified the class, and it set aside the punitive damages award as both premature and excessive. However, the court preserved a number of findings from Phase I of the trial, including findings that cigarettes can cause certain diseases, that nicotine is addictive, and that defendants placed defective cigarettes on the market, breached duties of care, and concealed health-related information about cigarettes. The court authorized former class members to file individual lawsuits within one year, and it stated that the preserved findings would have res judicata effect in those actions. | |||||||||||||||||||||||||||||||||
In the wake of the Florida Supreme Court ruling, thousands of individuals filed separate lawsuits seeking to benefit from the Engle findings. As of December 31, 2013, RJR Tobacco was a defendant in 5,131 Engle Progeny cases in both state and federal courts in Florida. These cases include approximately 6,323 plaintiffs. Many of these cases are in active discovery or nearing trial. | |||||||||||||||||||||||||||||||||
In Engle Progeny cases tried to date, a central issue is the proper use of the preserved Engle findings. RJR Tobacco has argued that use of the Engle findings to establish individual elements of progeny claims (such as defect, negligence and concealment) is a violation of federal due process. In 2013, however, both the Florida Supreme Court and the Eleventh Circuit rejected that argument. | |||||||||||||||||||||||||||||||||
In June 2009, Florida amended its existing bond cap statute by adding a $200 million bond cap that applied to all Engle Progeny cases in the aggregate. In May 2011, Florida removed the provision that allowed it to expire on December 31, 2012. The bond cap for any given individual Engle Progeny case varies depending on the number of judgments in effect at a given time, but never exceeds $5 million per case. The legislation, which became effective in June 2009 and 2011, applies to judgments entered after the original 2009 effective date. | |||||||||||||||||||||||||||||||||
Below is a description of the Engle Progeny cases against RJR Tobacco or B&W, or both, which went to trial or were decided during the period from October 1, 2013 to December 31, 2013, or remained on appeal as of December 31, 2013. | |||||||||||||||||||||||||||||||||
On May 5, 2009, in Sherman v. R. J. Reynolds Tobacco Co., a case filed in September 2007 in the Circuit Court, Broward County, Florida, a jury returned a verdict in favor of the plaintiff. The plaintiff, Melba Sherman, alleged that as a result of using the defendant’s products, the decedent, John Sherman, developed lung cancer and died. The plaintiff sought compensatory damages and an unspecified amount of punitive damages. On May 8, 2009, the jury awarded compensatory damages of $1.55 million and found the decedent to be 50% at fault. No punitive damages were awarded. The court entered final judgment in the amount of $775,000 in June 2009. RJR Tobacco filed a notice of appeal to the Fourth DCA, and posted a supersedeas bond in the amount of approximately $900,000. The plaintiff filed a notice of cross appeal of the final judgment in July 2009. In February 2012, the Fourth DCA affirmed the trial court’s decision. In March 2012, RJR Tobacco filed a notice to invoke discretionary jurisdiction of the Florida Supreme Court. In May 2013, the Florida Supreme Court accepted jurisdiction, and the case will be submitted without oral argument. A decision is pending. | |||||||||||||||||||||||||||||||||
On May 20, 2009, in Jimmie Lee Brown v. R. J. Reynolds Tobacco Co., a case filed in March 2007, in the Circuit Court, Broward County, Florida, a jury returned a verdict in favor of the plaintiff. The plaintiff alleged that the decedent, Roger Brown, developed smoking related diseases, which resulted in his death. The plaintiff sought compensatory damages and an unspecified amount of punitive damages. The jury later returned a verdict that the decedent was 50% at fault for his injuries and awarded compensatory damages of $1.2 million. No punitive damages were awarded. RJR Tobacco’s post-trial motions were denied, and the court entered final judgment in the amount of $600,000. RJR Tobacco filed a notice of appeal to the Fourth DCA, and posted a supersedeas bond in the amount of approximately $700,000. The Fourth DCA affirmed the trial court’s judgment in September 2011. In November 2011, RJR Tobacco filed a notice to invoke discretionary jurisdiction of the Florida Supreme Court. In May 2013, the Florida Supreme Court accepted jurisdiction, and the case will be submitted without oral argument. A decision is pending. | |||||||||||||||||||||||||||||||||
On February 25, 2010, in Grossman v. R. J. Reynolds Tobacco Co., a case filed in December 2007 in the Circuit Court, Broward County, Florida, the court declared a mistrial due to the jury’s inability to reach a decision. The plaintiff alleged that as a result of an addiction to cigarettes, the decedent, Laura Grossman, developed lung cancer and died. The plaintiff sought damages in excess of $15,000 and all taxable costs and interest. Retrial began in March 2010. In April 2010, the jury returned a verdict in favor of the plaintiff in Phase I, and in Phase II awarded $1.9 million in compensatory damages and no punitive damages. The jury also found RJR Tobacco to be 25% at fault, the decedent to be 70% at fault and the decedent’s spouse to be 5% at fault. Final judgment was entered in June 2010, in the amount of $483,682. In July 2011, RJR Tobacco filed a notice of appeal to the Fourth DCA, and posted a supersedeas bond in the amount of approximately $484,000. The plaintiff filed a notice of cross appeal. In June 2012, the Fourth DCA entered an opinion that affirmed the trial court’s judgment, but remanded the case for a new trial on all Phase II issues. In October 2012, RJR Tobacco filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court. A decision is pending. Retrial began on July 11, 2013. On July 31, 2013, the jury returned a verdict in favor of the plaintiff, found the decedent to be 25% at fault and RJR Tobacco to be 75% at fault, and awarded $15.35 million in compensatory damages and $22.5 million in punitive damages. Final judgment was entered in August 2013 and did not include a reduction for comparative fault. RJR Tobacco filed a notice of appeal to the Fourth DCA and the plaintiff filed a notice of cross appeal in October 2013. RJR Tobacco’s original bond was returned, and RJR Tobacco posted a new bond in the amount of $5 million. Briefing is underway. | |||||||||||||||||||||||||||||||||
On March 10, 2010, in Douglas v. Philip Morris USA, Inc., a case filed in October 2007 in Circuit Court, Hillsborough County, Florida, a jury returned a verdict for the plaintiff, found the decedent, Charlotte Douglas, to be 50% at fault, RJR Tobacco to be 5% at fault and the remaining defendants to be 45% at fault, and awarded $5 million in compensatory damages. No punitive damages were awarded. The plaintiff alleged that as a result of the decedent’s addiction to smoking the defendants’ cigarettes, she suffered bodily injury and died. In March 2010, the court entered final judgment against RJR Tobacco in the amount of $250,000. RJR Tobacco filed a notice of appeal to the Second DCA, and posted a supersedeas bond in the amount of $250,000. On March 30, 2012, the Second DCA affirmed the trial court’s decision. However, the court agreed that the issue of due process is one that will be applicable to the many Engle Progeny cases being considered by the trial courts and certified the question regarding the due process issue to the Florida Supreme Court as being one of great importance. RJR Tobacco filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court. The Florida Supreme Court accepted jurisdiction and, in March 2013, affirmed the Second DCA’s ruling for the plaintiff and found that accepting as res judicata the eight Phase I findings approved inEngle does not violate the tobacco companies’ due process rights. RJR Tobacco’s petition for writ of certiorari with the U.S. Supreme Court was denied on October 7, 2013. RJR Tobacco paid the judgment on October 31, 2013. | |||||||||||||||||||||||||||||||||
On March 10, 2010, in Cohen v. R. J. Reynolds Tobacco Co., a case filed in May 2007 in the Circuit Court, Broward County, Florida, a jury returned a verdict in favor of the plaintiff. The plaintiff alleged that the decedent, Nathan Cohen, developed lung cancer as a result of using the defendants’ products, and sought in excess of $15,000 compensatory damages and unspecified punitive damages. On March 24, 2010, the jury awarded the plaintiff $10 million in compensatory damages, and found the decedent to be 33.3% at fault, RJR Tobacco to be 33.3% at fault and the remaining defendant to be 33.3% at fault. The jury also awarded $20 million in punitive damages, of which $10 million was assigned to RJR Tobacco. In July 2010, the court entered final judgment against RJR Tobacco in the amount of $3.33 million in compensatory damages and $10 million in punitive damages, and the plaintiff filed a motion to amend or alter the final judgment. The court entered an amended judgment in September 2010 to include interest from the date of the verdict. RJR Tobacco filed a notice of appeal to the Fourth DCA and posted a supersedeas bond in the amount of $2.5 million. In September 2012, the Fourth DCA affirmed the liability finding and the compensatory damages award, but reversed the finding of entitlement to punitive damages, and remanded the case for a retrial limited to the issue of liability for concealment and conspiracy. The defendants and the plaintiff filed separate notices to invoke the discretionary jurisdiction of the Florida Supreme Court in January 2013. A decision is pending. | |||||||||||||||||||||||||||||||||
On April 21, 2010, in Townsend v. R. J. Reynolds Tobacco Co., a case filed in December 2007 in the Circuit Court, Alachua County, Florida, a jury returned a verdict in favor of the plaintiff, found RJR Tobacco to be 51% at fault and the decedent, Frank Townsend, to be 49% at fault, and awarded $10.8 million in compensatory damages and $80 million in punitive damages. The plaintiff alleged that the decedent died from lung cancer as a result of his addiction to the defendant’s products. The trial court entered judgment in the amount of $5.5 million in compensatory damages and $40.8 million in punitive damages, which represents 51% of the original damages verdicts. RJR Tobacco appealed to the First DCA, which affirmed the compensatory damages award, but remanded the case to the trial court with instructions to remit the punitive damages award or grant a new trial on punitive damages. On remand, the trial court remitted the punitive damages award to $20 million. The plaintiff consented to the remittitur, but RJR Tobacco refused to consent and insisted on a new trial on punitive damages. Nonetheless, the trial court entered a final judgment of $5.5 million in compensatory damages and $20 million in punitive damages. RJR Tobacco again appealed. In the second appeal, the First DCA held that the remitted punitive award was not excessive and that RJR Tobacco could not reject the remittitur and insist on a new trial. Following the denial of its post decision motions in the First DCA, RJR Tobacco filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court in September 2013. A decision is pending. | |||||||||||||||||||||||||||||||||
On April 26, 2010, in Putney v. R. J. Reynolds Tobacco Co., a case filed in December 2007 in the Circuit Court, Broward County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Margot Putney, to be 35% at fault, RJR Tobacco to be 30% at fault and the remaining defendants to be 35% at fault, and awarded $15.1 million in compensatory damages and $2.5 million in punitive damages each against RJR Tobacco and the remaining defendants. The plaintiff alleged that the decedent suffered from nicotine addiction and lung cancer as a result of using the defendants’ products. In August 2010, final judgment was entered against RJR Tobacco in the amount of $4.5 million in compensatory damages, and $2.5 million in punitive damages. RJR Tobacco filed a notice of appeal and the plaintiff filed a notice of cross appeal. In December 2010, the court entered an amended final judgment to provide that interest would run from April 26, 2010. The defendants filed a joint notice of appeal to the Fourth DCA of the amended final judgment, and RJR Tobacco posted a supersedeas bond in the amount of approximately $2.4 million. In June 2013, the Fourth DCA held that the court erred in denying the defendants’ motion for remittitur of the compensatory damages for loss of consortium and in striking the defendants’ statute of repose affirmative defenses. As a result, the verdict was reversed, and the case was remanded for further proceedings. The plaintiff’s motion for rehearing, written opinion on one issue, or certification of conflict to the Florida Supreme Court was denied in August 2013. The defendants and the plaintiff filed separate notices to invoke the discretionary jurisdiction of the Florida Supreme Court in September 2013. Decisions are pending. | |||||||||||||||||||||||||||||||||
On May 20, 2010, in Buonomo v. R. J. Reynolds Tobacco Co., a case filed in October 2007 in the Circuit Court, Broward County, Florida, a jury returned a verdict in favor of the plaintiff, found RJR Tobacco to be 77.5% at fault and the decedent, Matthew Buonomo, to be 22.5% at fault, and awarded $5.2 million in compensatory damages and $25 million in punitive damages. The plaintiff alleged that the decedent was addicted to cigarettes and, as a result, developed one or more smoking related medical conditions and/or diseases. Post-trial motions were denied, but the court, in accordance with the Florida statutory limitation on punitive damage awards, ordered the punitive damage award of $25 million be reduced to $15.7 million — three times the compensatory damages award of $5.2 million. In August 2010, the court entered final judgment in the amount of $4.06 million in compensatory damages and $15.7 million in punitive damages. RJR Tobacco filed a notice of appeal to the Fourth DCA and posted a supersedeas bond in the amount of $5 million. The plaintiff also filed a notice of appeal. In September 2013, the Fourth DCA affirmed the final judgment and damages award to the plaintiff on strict liability and negligence. However, the court reversed the judgment entered for the plaintiff on the claims for fraudulent concealment and conspiracy to commit fraud by concealment due to the erroneous striking of RJR Tobacco’s statute of repose defense. As a result, the punitive damages award was set aside and remanded for a new trial. In December 2013, the Fourth DCA denied RJR Tobacco’s motion for rehearing. On January 10, 2014, RJR Tobacco and the plaintiff filed notices to invoke the discretionary jurisdiction of the Florida Supreme Court. Decisions are pending. | |||||||||||||||||||||||||||||||||
On October 15, 2010, in Frazier v. Philip Morris USA Inc., a case filed in December 2007 in the Circuit Court, Miami-Dade County, Florida, the jury returned a verdict in favor of the defendants. The plaintiff alleged that as a result of smoking defendants’, including RJR Tobacco’s, products she developed chronic obstructive pulmonary disease. Final judgment was entered in February 2011. The plaintiff filed a notice of appeal to the Third DCA, and the defendants filed a cross appeal. On April 11, 2012, the Third DCA reversed the trial court’s judgment, directed entry of judgment in the plaintiff’s favor and ordered a new trial. In July 2012, the defendants filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court. The Florida Supreme Court accepted jurisdiction of the case in September 2013. Oral argument in the Florida Supreme Court is scheduled for April 10, 2014. The new trial is scheduled for July 21, 2014. | |||||||||||||||||||||||||||||||||
On October 29, 2010, in Koballa v. Philip Morris USA Inc., a case filed in December 2007, in the Circuit Court, Volusia County, Florida against tobacco industry defendants, including RJR Tobacco, the court declared a mistrial after the jury informed the court that they were unable to reach a verdict. The plaintiff alleged that as a result of the use of the defendants’ defective and unreasonably dangerous tobacco products, she suffers from, or has suffered from, nicotine addiction, lung cancer and other smoking related medical conditions and/or diseases. Retrial began on March 21, 2011, and on March 31, 2011, the jury returned an inconsistent verdict. The jury found that RJR Tobacco was not liable for the plaintiff’s injuries, but found that her past injuries were worth $1 million with the plaintiff being 70% at fault and RJR Tobacco 30% at fault. The court entered final judgment in August 2011. RJR Tobacco filed a notice of appeal to the Fifth DCA, and posted a supersedeas bond in the amount of $300,000. In September 2012, the Fifth DCA affirmed the trial court’s judgment, per curiam. RJR Tobacco’s motion for a written opinion was granted in October 2012. In November 2012, RJR Tobacco filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court. A decision is pending. | |||||||||||||||||||||||||||||||||
On November 15, 2010, in Webb v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Levy County, Florida, a jury returned a verdict in favor of the plaintiff, found RJR Tobacco to be 90% at fault and the decedent, James Horner, to be 10% at fault, and awarded $8 million in compensatory damages and $72 million in punitive damages. The plaintiff alleged that as a result of smoking the defendant’s products, the decedent developed one or more smoking related diseases. The court entered judgment, and RJR Tobacco appealed to the First DCA and posted a supersedeas bond in the amount of $5 million. That court affirmed the liability verdict, but ordered a remittitur or a new trial on damages. On remand, the trial court remitted the compensatory damages award to $4 million and the punitive damages award to $25 million. The plaintiff consented to the remitted judgment, and RJR Tobacco rejected the remittitur and demanded a new trial on damages. Nonetheless, the trial court entered the remitted judgment. RJR Tobacco again appealed to the First DCA. In the second appeal, the First DCA found that the trial court erred in concluding that only the plaintiff had the right to choose between accepting the remittitur and proceeding with a new trial. The First DCA thus ordered a new trial on damages. The plaintiff’s motion for rehearing was denied in January 2014. | |||||||||||||||||||||||||||||||||
On February 10, 2011, in Kirkland v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the Circuit Court, Hillsborough County, Florida, a jury returned a verdict in favor of the plaintiff, found RJR Tobacco to be 10% at fault and the plaintiff to be 90% at fault, and awarded $100,000 in compensatory damages. The jury also awarded the plaintiff $250,000 in punitive damages. The plaintiff alleged that he was addicted to cigarettes, and as a result, developed larynx cancer and other smoking related medical conditions and/or diseases. Final judgment was entered in March 2011. The plaintiff filed a notice of appeal to the Second DCA on April 12, 2011. RJR Tobacco filed a notice of cross appeal and posted a supersedeas bond in the amount of $260,000. In January 2012, the plaintiff voluntarily dismissed his appeal. In December 2013, the Second DCA affirmed the trial court’s judgment, per curiam. RJR Tobacco filed a motion for a written opinion in January 2014. A decision is pending. | |||||||||||||||||||||||||||||||||
On March 18, 2011, in Mack v. R. J. Reynolds Tobacco Co., a case filed in June 2008, in the Circuit Court, Alachua County, Florida, a jury returned a verdict in favor of the plaintiff, found RJR Tobacco to be 51% at fault and the decedent, Peter Mack, Sr., to be 49% at fault, and awarded $1 million in compensatory damages. No punitive damages were awarded. The plaintiff alleged that due to the decedent’s addiction to cigarettes, he developed bronchitis and lung cancer. In April 2011, final judgment was entered in favor of the plaintiff. RJR Tobacco appealed, and the First DCA reversed the trial court’s judgment and remanded the case for a new trial. Retrial began on December 3, 2012. On December 14, 2012, the jury returned a verdict in favor of the plaintiff, found the decedent to be 35% at fault and RJR Tobacco to be 65% at fault and awarded $2.9 million in compensatory damages. Final judgment was entered in December 2012. RJR Tobacco filed a notice of appeal to the First DCA and posted a supersedeas bond in the amount of $1.9 million. Briefing is underway. | |||||||||||||||||||||||||||||||||
On April 13, 2011, in Tullo v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Palm Beach County, Florida, a jury returned a verdict in favor of RJR Tobacco and the plaintiff, but against the remaining defendants. The jury awarded $4.5 million in compensatory damages and no punitive damages. The jury found the decedent, Dominick Tullo, to be 45% at fault and the remaining defendants cumulatively to be 55% at fault. The plaintiff alleged that the decedent was addicted to cigarettes manufactured by the defendants, and as a result, developed chronic obstructive pulmonary disease and other smoking related illnesses and/or diseases. The plaintiff sought in excess of $15,000 against each defendant, taxable costs and interest. The court denied the plaintiff’s motion for a new trial against RJR Tobacco and denied the remaining defendants’ post-trial motions in June 2011. The remaining defendants filed an appeal to the Fourth DCA, and the plaintiff filed a cross appeal. The plaintiff also filed a notice of appeal of the order denying the plaintiff’s motion for new trial against RJR Tobacco. RJR Tobacco filed a cross appeal of the same order. In August 2013, the Fourth DCA affirmed the final judgment entered by the trial court, including the jury’s verdict of no liability to RJR Tobacco. The Fourth DCA denied the plaintiff’s motion for clarification in September 2013. The remaining defendants filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court in October 2013. A decision is pending. | |||||||||||||||||||||||||||||||||
On April 26, 2011, in Andy Allen v. R. J. Reynolds Tobacco Co., a case filed in September 2007, in the Circuit Court, Duval County, Florida, a jury returned a verdict in favor of the plaintiff, found RJR Tobacco to be 45% at fault, the decedent, Patricia Allen, to be 40% at fault and the remaining defendant to be 15% at fault, and awarded $6 million in compensatory damages and $17 million in punitive damages against each defendant. The plaintiff alleged that as a result of smoking the defendants’ products, the decedent developed chronic obstructive pulmonary disease. Final judgment was entered against RJR Tobacco in the amount of $19.7 million in May 2011. In October 2011, the trial court entered a remittitur of the punitive damages to $8.1 million and denied all other post-trial motions. The defendants filed a joint notice of appeal, RJR Tobacco posted a supersedeas bond in the amount of $3.75 million, and the plaintiff filed a notice of cross appeal in November 2011. In May 2013, the First DCA reversed the trial court’s judgment and remanded the case for a new trial. The plaintiff’s motion for rehearing or rehearing en banc was denied in July 2013. The new trial has not been scheduled. In August 2013, the plaintiff filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court. A decision is pending. | |||||||||||||||||||||||||||||||||
On May 20, 2011, in Jewett v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Duval County, Florida, a jury returned a verdict in favor of the plaintiff, found RJR Tobacco to be 20% at fault, the decedent, Barbara Jewett, to be 70% at fault and the remaining defendant to be 10% at fault, and awarded $1.1 million in compensatory damages and no punitive damages. The plaintiff alleged that the decedent, Barbara Jewett, was addicted to cigarettes and as a result of her addiction, developed chronic obstructive pulmonary disease, emphysema and respiratory failure. Final judgment was entered in June 2011. RJR Tobacco filed a notice of appeal to the First DCA and posted a supersedeas bond in the amount of $218,600. In November 2012, the First DCA reversed the judgment and remanded the case for a new trial. The plaintiff and the defendants filed separate notices to invoke the discretionary jurisdiction of the Florida Supreme Court in March 2013. Decisions are pending. | |||||||||||||||||||||||||||||||||
On June 16, 2011, in Soffer v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Alachua County, Florida, a jury returned a verdict in favor of the plaintiff, found RJR Tobacco to be 40% at fault, the decedent, Maurice Soffer, to be 60% at fault, and awarded $5 million in compensatory damages and no punitive damages. The plaintiff alleged that the decedent was addicted to cigarettes and, as a result, developed lung cancer and other smoking related conditions and/or diseases. Final judgment was entered against RJR Tobacco in the amount of $2 million. The plaintiff filed a notice of appeal to the First DCA in July 2011. RJR Tobacco filed a notice of cross appeal and posted a supersedeas bond in the amount of $2 million. In October 2012, the First DCA affirmed the trial court’s ruling in full. On the direct appeal, the court held that only intentional torts could support a punitive damages claim and held that Engle Progeny plaintiffs may not seek punitive damages for negligence or strict liability because the originalEngle class did not seek punitive damages for those claims. The First DCA certified the question to the Florida Supreme Court as one of great public importance. On the cross appeal, the court rejected RJR Tobacco’s arguments about the use of the Engle findings and the statute of limitations. RJR Tobacco filed a motion for rehearing or for certification to the Florida Supreme Court and the plaintiff filed a motion for rehearing or rehearing en banc. In January 2013, the First DCA granted rehearing on RJR Tobacco’s cross appeal to clarify that the trial court’s application of Engle findings did not violate RJR Tobacco’s due process rights. Otherwise, rehearing, rehearing en banc and certification were denied. RJR Tobacco and the plaintiff have both filed notices to invoke the discretionary jurisdiction of the Florida Supreme Court. Decisions are pending. | |||||||||||||||||||||||||||||||||
On July 15, 2011, in Ciccone v. R. J. Reynolds Tobacco Co., a case filed in August 2004, in the Circuit Court, Broward County, Florida, a jury returned a verdict finding the plaintiff is a member of the Engle class. The plaintiff alleged that as a result of the use of the defendant’s tobacco products, the decedent, George Ciccone, suffered from nicotine addiction and one or more smoking related diseases and/or medical conditions. On July 21, 2011, the jury awarded approximately $3.2 million in compensatory damages and $50,000 in punitive damages. The jury found the decedent to be 70% at fault and RJR Tobacco to be 30% at fault. Final judgment was entered in September 2011, and RJR Tobacco filed a notice of appeal to the Fourth DCA. RJR Tobacco posted a supersedeas bond in the amount of approximately $1 million on October 17, 2011. In August 2013, the Fourth DCA affirmed the judgment of the trial court, but reversed the punitive damages award and remanded the case to the trial court for entry of a final judgment that eliminates the punitive damages award. RJR Tobacco’s motion for rehearing or rehearing en banc was denied in November 2013. RJR Tobacco filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court in December 2013. A decision is pending. | |||||||||||||||||||||||||||||||||
On September 15, 2011, in Ojeda v. R. J. Reynolds Tobacco Co., a case filed in October 2007, in the Circuit Court, Miami-Dade County, Florida, a jury returned a verdict in favor of RJR Tobacco. The plaintiff alleged that as a result of the use of the defendant’s products, the decedent, Juan Ojeda, suffered from one or more smoking related medical conditions and/or diseases. Final judgment was entered September 26, 2011. The plaintiff filed a notice of appeal to the Third DCA in October 2012. Briefing is underway. | |||||||||||||||||||||||||||||||||
On November 28, 2011, in Sury v. R. J. Reynolds Tobacco Co., a case filed in November 2007, in the Circuit Court, Duval County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, William Sury, to be 60% at fault, RJR Tobacco to be 20% at fault, and the remaining defendant to be 20% at fault, and awarded $1 million in compensatory damages and no punitive damages. The plaintiff alleged that as a result of the use of the defendants’ products, the decedent suffered from lung cancer. Final judgment was entered in March 2012. The court entered an amended final judgment that held the defendants jointly and severally liable for the entire $1 million, even though the jury had allocated 60% of fault to the plaintiff and 20% of fault to a co-defendant. The defendants filed a notice of appeal to the First DCA on April 20, 2012, and RJR Tobacco posted a supersedeas bond in the amount of $500,000. In June 2013, the First DCA affirmed the final judgment. RJR Tobacco’s motion for rehearing was denied in August 2013. In January 2014, the Florida Supreme Court denied RJR Tobacco’s petition for review of the First DCA’s decision. | |||||||||||||||||||||||||||||||||
On January 24, 2012, in Hallgren v. R. J. Reynolds Tobacco Co., a case filed in April 2007, in the Circuit Court, Highlands County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Claire Hallgren, to be 50% at fault, RJR Tobacco to be 25% at fault, and the remaining defendant to be 25% at fault, and awarded $2 million in compensatory damages and $750,000 in punitive damages against each defendant. The plaintiff alleged that the decedent was addicted to the defendants’ products, and as a result, suffered from lung cancer. In March 2012, the court entered final judgment in the amount of approximately $1 million for which RJR Tobacco and the other defendant are jointly and severally liable; and $750,000 in punitive damages against each defendant. The defendants filed a joint notice of appeal to the Second DCA, and RJR Tobacco posted a supersedeas bond in the amount of approximately $1.3 million in May 2012. The plaintiff filed a notice of cross appeal. In October 2013, the Second DCA affirmed the trial court’s ruling that punitive damages can be awarded for negligence and strict liability claims as well as for the intentional tort claims brought under Engle. The court certified a conflict with the First DCA’s decision in Soffer and the Fourth DCA’s decision in Ciccone. The court also certified the following questions to be of great public importance — “Are members of the Engle class who pursue individual damages actions in accordance with the decision in Engle v. Liggett Group, Inc., entitled to pursue punitive damages under claims for strict liability and negligence?” In November 2013, the defendants filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court. A decision is pending. | |||||||||||||||||||||||||||||||||
On January 25, 2012, in Ward v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Escambia County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Mattie Ward, to be 50% at fault, RJR Tobacco to be 30% at fault, and the remaining defendants, collectively, to be 20% at fault, and awarded $1 million in compensatory damages and $1.7 million in punitive damages. The plaintiff alleged that the decedent was addicted to the defendants’ products, and as a result, suffered from chronic obstructive pulmonary disease and other smoking related conditions and/or diseases. In March 2012, the court entered final judgment in the amount of $487,000 in compensatory damages, for which RJR Tobacco and the other defendants are jointly and severally liable; and $1.7 million in punitive damages against RJR Tobacco. RJR Tobacco filed a notice of appeal to the First DCA and posted a supersedeas bond in the amount of $2.19 million in June 2012. The plaintiff filed a notice of cross appeal. In September 2013, the First DCA affirmed the trial court’s judgment, per curiam. RJR Tobacco’s motion for rehearing was denied in October 2013. RJR Tobacco paid $2.4 million in satisfaction of the judgment on January 31, 2014. | |||||||||||||||||||||||||||||||||
On February 29, 2012, in Marotta v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Broward County, Florida, the court declared a mistrial during jury prequalification. The plaintiff alleged that the decedent, Phil Marotta, was addicted to cigarettes and, as a result, suffered from lung cancer. The plaintiff sought compensatory damages in excess of $75,000, including compensatory and punitive damages, costs and pre-judgment interest. Retrial began on March 7, 2013. On March 20, 2013, a jury returned a verdict in favor of the plaintiff, found the decedent to be 42% at fault and RJR Tobacco to be 58% at fault and awarded $6 million in compensatory damages and no punitive damages. Final judgment was entered against RJR Tobacco in the amount of $3.48 million, and RJR Tobacco filed a notice of appeal to the Fourth DCA in April 2013. The plaintiff filed a notice of cross appeal in May 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On March 19, 2012, in McCray v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the U.S. District Court for the Middle District of Florida, a jury returned a verdict in favor of the defendants, including RJR Tobacco. The plaintiff alleged that the decedent, Mercedia Walker, was addicted to the defendants’ tobacco products, and as a result, suffered from one or more smoking related diseases and/or medical conditions. The plaintiff sought compensatory damages for all injuries and losses, all recoverable costs of the case, and all legally recoverable interest. Final judgment was entered in March 2012. The plaintiff filed a notice of appeal to the Eleventh Circuit in July 2012. Oral argument is scheduled for March 4, 2014. | |||||||||||||||||||||||||||||||||
On March 27, 2012, in Emmon Smith v. R. J. Reynolds Tobacco Co., a case filed in January 2008 in the Circuit Court, Jackson County, Florida, a jury returned a verdict in favor of the plaintiff, found Mr. Smith to be 30% at fault and RJR Tobacco to be 70% at fault, and awarded $10 million in compensatory damages. The jury also awarded $20 million in punitive damages. The plaintiff alleged that he was addicted to cigarettes manufactured by the defendants, and as a result, developed lung cancer. Final judgment was entered on April 2, 2012. RJR Tobacco filed a notice of appeal to the First DCA and posted a supersedeas bond in the amount of $5 million. In November 2013, the First DCA affirmed the judgment of the trial court, per curiam. In December 2013, RJR Tobacco filed a motion for issuance of a written opinion, certification and rehearing en banc. A decision is pending. | |||||||||||||||||||||||||||||||||
On April 10, 2012, in Duke v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the U.S. District Court for the Middle District of Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Sarah Duke, to be 75% at fault and RJR Tobacco to be 25% at fault, and awarded $30,705 in compensatory damages and no entitlement to punitive damages. The plaintiff alleged that as a result of the use of the defendant’s products, the decedent developed smoking related diseases. The plaintiff sought compensatory and punitive damages, including costs and interest. RJR Tobacco filed a notice of appeal to the Eleventh Circuit in September 2012. In November 2012, RJR Tobacco posted a supersedeas bond in the amount of approximately $7,800. In February 2013, the Eleventh Circuit granted the joint motion to consolidate the appeal with the appeal in Walker v. R. J. Reynolds Tobacco Co., discussed below. In September 2013, the Eleventh Circuit affirmed the jury verdict in favor of the plaintiff. RJR Tobacco’s petition for panel rehearing or rehearing en banc was denied on January 6, 2014. The deadline to file a petition for writ of certiorari with the U.S. Supreme Court is April 7, 2014. | |||||||||||||||||||||||||||||||||
On May 17, 2012, in Calloway v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Broward County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Johnnie Calloway, to be 20.5% at fault, RJR Tobacco to be 27% at fault, and the remaining defendants collectively to be 52.5% at fault, and awarded $20.5 million in compensatory damages and $17.25 million in punitive damages against RJR Tobacco and $37.6 million collectively against the remaining defendants. The plaintiff alleged that as a result of using the defendants’ products, the decedent became addicted and developed smoking-related diseases and/or conditions. The plaintiff sought compensatory and punitive damages, including costs and interest. In its ruling on the post-trial motions, the court determined that the jury’s apportionment of comparative fault did not apply to the compensatory damages award. Final judgment was entered in August 2012. In September 2012, the defendants filed a notice of appeal to the Fourth DCA, and RJR Tobacco posted a supersedeas bond in the amount of $1.5 million. The plaintiff filed a notice of cross appeal. Briefing is underway. | |||||||||||||||||||||||||||||||||
On May 21, 2012, in Walker v. R. J. Reynolds Tobacco Co., a case filed in August 2007, in the U.S. District Court for the Middle District of Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Albert Walker, to be 90% at fault and RJR Tobacco to be 10% at fault, and awarded $275,000 in compensatory damages with no entitlement to punitive damages. The plaintiff alleged that as a result of the use of the defendant’s products, the decedent suffered bodily injury. The plaintiff sought compensatory and punitive damages, including costs and interest. The court entered final judgment in May 2012. RJR Tobacco filed a notice of appeal to the Eleventh Circuit and posted a supersedeas bond in the amount of $27,775. In February 2013, the Eleventh Circuit granted the joint motion to consolidate the appeal with the appeal in Duke v. R. J. Reynolds Tobacco Co., discussed above. RJR Tobacco posted a substitute supersedeas bond in the amount of approximately $45,800 in June 2013. In September 2013, the Eleventh Circuit affirmed the jury verdict in favor of the plaintiff. RJR Tobacco’s petition for panel rehearing or rehearing en banc was denied on January 6, 2014. The deadline to file a petition for writ of certiorari with the U.S. Supreme Court is April 7, 2014. | |||||||||||||||||||||||||||||||||
On August 1, 2012, in Hiott v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the Circuit Court, Duval County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Kenneth Hiott, to be 60% at fault and RJR Tobacco to be 40% at fault, and awarded $1.83 million in compensatory damages and no punitive damages. The plaintiff alleged that as a result of using the defendant’s product, the decedent suffered from addiction and smoking related diseases and/or conditions. The plaintiff sought an unspecified amount of compensatory and punitive damages. In November 2012, final judgment was entered against RJR Tobacco in the amount of $730,000 in compensatory damages. RJR Tobacco filed a notice of appeal to the First DCA and posted a supersedeas bond in the amount of $730,000 in December 2012. In January 2014, the First DCA affirmed the trial court’s decision. RJR Tobacco is preparing to seek review with the Florida Supreme Court. | |||||||||||||||||||||||||||||||||
On August 1, 2012, in Denton v. R. J. Reynolds Tobacco Co., a case filed in August 2007, in the U.S. District Court for the Middle District of Florida, a jury found the defendants liable, but allocated 100% of fault to the decedent, Linda Denton. The plaintiff alleged that as a result of using the defendants’ products, the decedent suffered from smoking related diseases and/or conditions. The plaintiff sought an unspecified amount of compensatory and punitive damages. Final judgment was entered on August 8, 2012. The plaintiff’s motion for a new trial was denied in November 2013. The plaintiff did not seek further review of the case. | |||||||||||||||||||||||||||||||||
On August 10, 2012, in Hancock v. Philip Morris USA, Inc., a case filed in January 2008, in the Circuit Court, Miami-Dade County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Edna Siwieck, to be 90% at fault, RJR Tobacco to be 5% at fault and the remaining defendant to be 5% at fault. However, the jury did not award compensatory damages and found that the plaintiff was not entitled to punitive damages. The court determined that the jury verdict was inconsistent due to the parties previously stipulating to $110,200 in medical expenses, which is subject to the allocation of fault. The defendants agreed to an additur for that amount. The plaintiff alleged that as a result of using the defendants’ products, the decedent suffered from chronic obstructive pulmonary disease. The plaintiff sought an unspecified amount of compensatory and punitive damages, costs and interest. Final judgment was entered against RJR Tobacco in the amount of $705 in October 2012. The stipulated amount was reduced by the defendants’ motion to reduce economic damages by collateral sources. The plaintiff filed a notice of appeal to the Fourth DCA, and the defendants filed a notice of cross appeal in November 2012. Briefing is underway. | |||||||||||||||||||||||||||||||||
On September 19, 2012, in Baker v. R. J. Reynolds Tobacco Co., a case filed in November 2007, in the Circuit Court, Palm Beach County, Florida, a jury returned a verdict in favor of the defendant, RJR Tobacco. The plaintiff alleged that as a result of using the defendant’s products, the decedent, Elmer Baker, suffered from lung cancer. The plaintiff sought compensatory damages in excess of $15,000, costs and interest. Final judgment was entered in January 2013, in favor of RJR Tobacco. The plaintiff filed a notice of appeal to the Fourth DCA and RJR Tobacco filed a notice of cross appeal in February 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On September 20, 2012, in Sikes v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Duval County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Jimmie Sikes, to be 49% at fault and RJR Tobacco to be 51% at fault, and awarded $4.1 million in compensatory damages and $2 million in punitive damages. The plaintiff alleged that as a result of using the defendant’s product, the decedent suffered from chronic obstructive pulmonary disease. Final judgment was entered against RJR Tobacco in the amount of $6.1 million on June 3, 2013. The court entered a corrected final judgment against RJR Tobacco in the amount of $5.5 million and vacated the June 3, 2013 final judgment. RJR Tobacco filed a notice of appeal to the First DCA, and posted a supersedeas bond in the amount of $5 million in July 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On October 17, 2012, in James Smith v. R. J. Reynolds Tobacco Co., a case filed in August 2007, in the U.S. District Court for the Middle District of Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Wanette Smith, to be 45% at fault and RJR Tobacco to be 55% at fault, and awarded $600,000 in compensatory damages and $20,000 in punitive damages. The plaintiff alleged that as a result of using the defendant’s products, the decedent suffered from lung cancer and chronic obstructive pulmonary disease. The plaintiff sought compensatory and punitive damages, costs and interest. Final judgment was entered against RJR Tobacco in the amount of $620,000. Post-trial motions were denied in August 2013. RJR Tobacco filed a notice of appeal to the Eleventh Circuit and posted a supersedeas bond in the amount of approximately $620,000 in September 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On October 18, 2012, in Schlenther v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the Circuit Court, Hillsborough County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Beverly Schlenther, to be 50% at fault and RJR Tobacco to be 50% at fault, and awarded $5 million in compensatory damages and $2.5 million in punitive damages. The plaintiff alleged that as a result of using the defendant’s products, the decedent suffered from chronic obstructive pulmonary disease and heart disease. The plaintiff sought compensatory and punitive damages, costs and interest. In April 2013, the court vacated the punitive damage award, granted a new trial on entitlement to punitive damages and the amount of any such damages and abated the new trial pending the Florida Supreme Court decision in Soffer v. R. J. Reynolds Tobacco Co., described above. The plaintiff filed a notice of appeal to the Second DCA of the order granting RJR Tobacco’s motion for a new trial, and RJR Tobacco filed a notice of cross appeal of the same order. In October 2013, the trial court entered a partial final judgment against RJR Tobacco in the amount of $5.03 million in compensatory damages with no reduction for comparative fault. RJR Tobacco filed a notice of appeal of the partial final judgment. In November 2013, the plaintiff filed a motion to temporarily relinquish jurisdiction to the trial court to permit the trial court to enter a final judgment based on the decision in Hallgren, described above. The Second DCA granted the plaintiff’s motion, and jurisdiction was relinquished for 45 days. In December 2013, the trial court denied the defendant’s post-trial motions, including RJR Tobacco’s motion for a new trial, and entered final judgment against RJR Tobacco in the amount of $5 million for compensatory damages, $29,705 for funeral expenses and $2.5 million in punitive damages. Both parties filed voluntary dismissals of their prior appeals. RJR Tobacco subsequently filed a notice of appeal to the Second DCA of the final judgment and posted a supersedeas bond in the amount of $5 million. Briefing is underway. | |||||||||||||||||||||||||||||||||
On October 19, 2012, in Ballard v. R. J. Reynolds Tobacco Co., a case filed in September 2007 in the Circuit Court, Miami-Dade County, Florida, a jury returned a verdict in favor of the plaintiff, found the plaintiff to be 45% at fault and RJR Tobacco to be 55% at fault, and awarded $8.55 million in compensatory damages. Punitive damages were not at issue. The plaintiff alleged that as a result of using the defendant’s products, he suffers from bladder cancer and emphysema. The court entered final judgment against RJR Tobacco in the amount of $4.7 million in October 2012, and in August 2013, the court entered an amended final judgment against RJR Tobacco in the amount of $5 million. RJR Tobacco filed a notice of appeal to the Third DCA and posted a supersedeas bond in the amount of $5 million in October 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On October 25, 2012, in Lock v. Philip Morris USA, Inc., a case filed in November 2007, in the Circuit Court, Pinellas County, Florida, a jury returned a verdict in favor of the plaintiff, found the plaintiff to be 82% at fault, RJR Tobacco to be 9% at fault and the remaining defendant to be 9% at fault, and awarded $1.15 million in compensatory damages. Punitive damages were not at issue. The plaintiff alleged that as a result of using the defendants’ products, he suffers from lung cancer. Final judgment was entered against RJR Tobacco and the remaining defendants in the amount of $103,500 each. The defendants filed a joint notice of appeal to the Second DCA in March 2013, and RJR Tobacco posted a supersedeas bond in the amount of $103,500. Briefing is underway. | |||||||||||||||||||||||||||||||||
On December 12, 2012, in Virginia Williams v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Miami-Dade County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Milton Williams, to be 15% at fault and RJR Tobacco to be 85% at fault, and awarded $5 million in compensatory damages. Punitive damages were not sought. The plaintiff alleged that as a result of using the defendant’s products, the decedent suffered from pharyngeal cancer. Final judgment was entered against RJR Tobacco in the amount of $4.25 million in compensatory damages in January 2013. RJR Tobacco filed a notice of appeal to the Third DCA and posted a supersedeas bond in the amount of $4.25 million, and the plaintiff filed a notice of cross appeal in August 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On February 11, 2013, in Evers v. R. J. Reynolds Tobacco Co., a case filed in November 2007, in the Circuit Court, Hillsborough County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Jacqueline Loyd, to be 31% at fault, RJR Tobacco to be 60% at fault, and the remaining defendant to be 9% at fault, and awarded $3.23 million in compensatory damages and $12.36 million in punitive damages against RJR Tobacco only. The plaintiff alleged that as a result of using the defendants’ products, the decedent became addicted and suffered from smoking-related diseases and/or conditions. In March 2013, the court granted the defendants’ post-trial motions for directed verdict on fraudulent concealment, conspiracy and punitive damages. As a result, the $12.36 million punitive damages award was set aside. The plaintiff’s motion to reconsider directed verdict as to concealment, conspiracy and punitive damages was denied on April 8, 2013. The plaintiff filed a notice of appeal to the Second DCA, the defendants filed a notice of cross appeal, and RJR Tobacco posted a supersedeas bond in the amount of $1.77 million in May 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On February 13, 2013, in Schoeff v. R. J. Reynolds Tobacco Co., a case filed in November 2007, in the Circuit Court, Broward County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, James Schoeff, to be 25% at fault, RJR Tobacco to be 75% at fault, and awarded $10.5 million in compensatory damages and $30 million in punitive damages. The plaintiff alleged that as a result of using the defendant’s products, the decedent suffered from addiction and one or more smoking-related diseases and/or conditions, including lung cancer. In April 2013, final judgment was entered against RJR Tobacco in the amount of $7.88 million in compensatory damages and $30 million in punitive damages. RJR Tobacco filed a notice of appeal to the Fourth DCA, and the plaintiff filed a notice of cross appeal in May 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On March 20, 2013, in Giddens v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the U.S. District Court for the Middle District of Florida, a jury returned a verdict in favor of RJR Tobacco and the plaintiff and against the remaining defendant, found the decedent, Roger Giddens, to be 93% at fault and the remaining defendant to be 7% at fault and awarded $80,000 in compensatory damages and no punitive damages. The plaintiff alleged that the decedent was addicted to cigarettes manufactured by the defendants which resulted in the decedent’s death. In March 2013, final judgment was entered in favor of the plaintiff and RJR Tobacco, and against a co-defendant in the amount of $5,600. In April 2013, the parties filed a joint stipulation of dismissal with prejudice. | |||||||||||||||||||||||||||||||||
On April 1, 2013, in Searcy v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the U.S. District Court for the Middle District of Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Carol LaSard, to be 40% at fault, RJR Tobacco to be 30% at fault and the remaining defendant to be 30% at fault, and awarded $6 million in compensatory damages and $10 million in punitive damages against each defendant. The plaintiff alleged that as a result of using the defendants’ products, the decedent suffered from lung cancer. Final judgment was entered against RJR Tobacco in the amount of $6 million in compensatory damages and $10 million in punitive damages. In September 2013, the trial court granted the defendants’ motion for a new trial, or in the alternative, reduction or remittitur of the damages awarded to the extent it sought remittitur of the damages. The compensatory damage award was remitted to $1 million, and the punitive damage award was remitted to $1.67 million against each defendant. The remaining post-trial motions were denied. The plaintiff’s motion to reconsider the trial court’s order granting in part the defendants’ motion for remittitur of the damages award was denied in October 2013. The plaintiff filed a notice of acceptance of remittitur in November 2013, and the court issued an amended final judgment. The defendants filed a joint notice of appeal to the Eleventh Circuit, and RJR Tobacco posted a supersedeas bond in the amount of approximately $2.2 million. Briefing is underway. | |||||||||||||||||||||||||||||||||
On April 18, 2013, in Aycock v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the U.S. District Court for the Middle District of Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Richard Aycock, to be 27.5% at fault and RJR Tobacco to be 72.5% at fault, and awarded $5.9 million in compensatory damages. Punitive damages were not awarded. The plaintiff alleged that the decedent was addicted to cigarettes manufactured by the defendant and, as a result, suffered from lung cancer. Final judgment was entered against RJR Tobacco in the amount of $4.28 million in April 2013. Post-trial motions were denied in August 2013. RJR Tobacco filed a notice of appeal to the Eleventh Circuit in September 2013, and posted a supersedeas bond in the amount of $4.32 million in October 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On May 2, 2013, in David Cohen v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Palm Beach County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Helen Cohen, to be 40% at fault, RJR Tobacco to be 30% at fault, and the remaining defendants collectively to be 30% at fault, and awarded $2.06 million in compensatory damages. The plaintiff alleged that as a result of using the defendants’ products, the decedent, Helen Cohen, became addicted and suffered from one or more smoking related diseases and/or conditions. Final judgment was entered against RJR Tobacco in the amount of $617,000 in May 2013. In July 2013, the court granted the defendants’ motion for a new trial due to the plaintiff’s improper arguments during closing. The new trial date has not been scheduled. The plaintiff filed a notice of appeal to the Fourth DCA, and the defendants filed a notice of cross appeal. Briefing is underway. | |||||||||||||||||||||||||||||||||
On May 22, 2013, in John Campbell v. R. J. Reynolds Tobacco Co., a case pending in Polk County, Florida, a jury returned a verdict in favor of the defendants, including RJR Tobacco. The plaintiff alleged that as a result of smoking the defendants’ products, the decedent, Judy Campbell, became addicted to smoking cigarettes and suffered from unspecified smoking related conditions and/or diseases. The plaintiff’s motion for a new trial was denied and the court entered final judgment in July 2013. The plaintiff filed a notice of appeal to the Second DCA, and the defendants filed a notice of cross appeal in August 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On May 23, 2013, in Earl Graham v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the U.S. District Court for the Middle District of Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Faye Graham, to be 70% at fault, RJR Tobacco to be 20% at fault and the remaining defendant to be 10% at fault, and awarded $2.75 million in compensatory damages. The plaintiff alleged that as a result of smoking the defendants’ products, the decedent became addicted to smoking cigarettes which resulted in her death. Final judgment was entered against RJR Tobacco in the amount of $550,000 in May 2013. The defendants filed a joint notice of appeal to the Eleventh Circuit, and RJR Tobacco posted a supersedeas bond in the amount of approximately $556,000 in October 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On June 4, 2013, in Starr-Blundell v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Duval County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Lucy Mae Starr, to be 80% at fault, RJR Tobacco to be 10% at fault and the remaining defendant to be 10% at fault, and awarded $500,000 in compensatory damages. The plaintiff alleged that as a result of smoking the defendants’ products, the decedent suffered from lung cancer and other smoking relating diseases and/or conditions. Post-trial motions were denied, and the court entered final judgment in the amount of $50,000 against each defendant in November 2013. The plaintiff filed a notice of appeal to the First DCA, and the defendants filed a notice of cross appeal in December 2013. RJR Tobacco posted a supersedeas bond in the amount of $50,000. Briefing is underway. | |||||||||||||||||||||||||||||||||
On June 7, 2013, in Odum v. R. J. Reynolds Tobacco Co., a case filed in November 2007, in the Circuit Court, Duval County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Ethelene Hazouri, to be 50% at fault and RJR Tobacco to be 50% at fault, and awarded $200,000 in compensatory damages. The plaintiff alleged that as a result of smoking the defendant’s products, the decedent suffered from lung cancer. RJR Tobacco’s post-trial motions were denied in October 2013. Final judgment was entered against RJR Tobacco in the amount of $264,000 in November 2013. RJR Tobacco filed a notice of appeal to the First DCA and posted a supersedeas bond in the amount of approximately $264,000 in December 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On June 12, 2013, in Weinstein v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Palm Beach County, Florida, a jury returned a verdict in favor of RJR Tobacco. The plaintiff alleged that as a result of smoking the defendant’s products, the decedent, Irwin Weinstein, suffered from chronic obstructive pulmonary disease. The plaintiff’s motion for a new trial was denied, and final judgment was entered in August 2013. The plaintiff filed a notice of appeal to the Fourth DCA in September 2013, and RJR Tobacco filed a notice of cross appeal. Briefing is underway. | |||||||||||||||||||||||||||||||||
On June 14, 2013, in Skolnick v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Palm Beach County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Leo Skolnick, to be 40% at fault, RJR Tobacco to be 30% at fault and the remaining defendant to be 30% at fault, and awarded $2.56 million in compensatory damages. The plaintiff alleged that as a result of using the defendants’ products, the decedent suffered from lung cancer. The court entered final judgment against RJR Tobacco in the amount of $766,500 in July 2013. Post-trial motions were denied in December 2013, and final judgment was entered against RJR Tobacco in the amount of approximately $767,000. The defendants filed a joint notice of appeal to the Fourth DCA, and the plaintiff filed a notice of cross appeal. Briefing is underway. | |||||||||||||||||||||||||||||||||
On June 19, 2013, in Thibault v. R. J. Reynolds Tobacco Co., a case pending in the Circuit Court, Escambia County, Florida, the jury returned a verdict in favor of the plaintiff, found the decedent, Evelyn Thibault, to be 30% at fault and RJR Tobacco to be 70% at fault, and awarded $1.75 million in compensatory damages and $1.28 million in punitive damages. The plaintiff alleged that as a result of using the defendant’s products, the decedent suffered from chronic obstructive pulmonary disease. The court determined that comparative fault did not apply to reduce the amount of the verdict. In June 2013, the court entered final judgment against RJR Tobacco in the amount of $3.03 million. Post-trial motions were denied, and RJR Tobacco filed a notice of appeal to the First DCA in August 2013. RJR Tobacco posted a supersedeas bond in the amount of $3.03 million in September 2013. Briefing is underway. | |||||||||||||||||||||||||||||||||
On August 20, 2013, in Dombey v. R. J. Reynolds Tobacco Co., a case pending in Broward County, Florida, a jury returned a verdict in favor of the defendants, including RJR Tobacco. The plaintiff alleged that as a result of smoking the defendants’ products, the decedent, Daniel Dombey, developed one or more smoking related conditions and/or diseases. Final judgment was entered in September 2013. The plaintiff did not seek further review of the case. | |||||||||||||||||||||||||||||||||
On September 20, 2013, in Gafney v. R. J. Reynolds Tobacco Co., a case pending in Palm Beach County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Frank Gafney, to be 34% at fault, RJR Tobacco to be 33% at fault and the remaining defendant to be 33% at fault, and awarded $5.8 million in compensatory damages. Punitive damages were not awarded. The plaintiff alleged that as a result of smoking the defendants’ products, the decedent developed chronic obstructive pulmonary disease. Final judgment was entered against RJR Tobacco in the amount of $1.9 million in September 2013. Post-trial motions were denied in November 2013. The defendants filed a joint notice of appeal to the Fourth DCA, and RJR Tobacco posted a supersedeas bond in the amount of $1.9 million. The plaintiff filed a notice of cross appeal. Briefing is underway. | |||||||||||||||||||||||||||||||||
On September 24, 2013, in Haldeman v. R. J. Reynolds Tobacco Co., a case pending in Marion County, Florida, a jury returned a verdict in favor of the defendants, including RJR Tobacco. The plaintiff alleged that as a result of smoking the defendants’ products, the decedent, Margaret McEniry, developed one or more smoking related conditions or diseases, including pancreatic cancer. Final judgment was entered in favor of the defendants in October 2013. The plaintiff did not seek further review of the case. | |||||||||||||||||||||||||||||||||
On September 30, 2013, in Crawford v. R. J. Reynolds Tobacco Co., a case pending in Miami-Dade County, Florida, a jury returned a verdict in favor of the plaintiff, found the plaintiff to be 30% at fault and RJR Tobacco to be 70% at fault, and awarded $9 million in compensatory damages and $1 million in punitive damages. The plaintiff alleged that as a result of smoking the defendant’s products, he suffered from addiction and one or more smoking related conditions and/or diseases. Post-trial motions were denied and final judgment was entered against RJR Tobacco in the amount of $9 million in compensatory damages and $1 million in punitive damages. RJR Tobacco filed a notice of appeal to the Third DCA and posted a supersedeas bond in the amount of $5 million. Briefing is underway. | |||||||||||||||||||||||||||||||||
On October 4, 2013, in Hildegard Brown v. R. J. Reynolds Tobacco Co., a case filed in November 2007, in the Circuit Court, Escambia County, Florida, a jury returned a verdict in favor of RJR Tobacco. The plaintiff alleged that as a result of smoking the defendant’s products, the decedent, William Brown, suffered from lung cancer. Final judgment was entered in October 2013. The plaintiff did not seek further review of the case. | |||||||||||||||||||||||||||||||||
On November 14, 2013, in Blasco v. R. J. Reynolds Tobacco Co., the plaintiff voluntarily dismissed RJR Tobacco during jury selection. The case was filed in December 2007, in the Circuit Court, Miami-Dade County, Florida. The plaintiff alleged that as a result of smoking the defendants’ products, the decedent, Eduardo Blasco, suffered from lung cancer. Trial continued against Philip Morris USA, Inc. only. | |||||||||||||||||||||||||||||||||
On November 15, 2013, in Chamberlain v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the U.S. District Court for the Middle District of Florida, a jury returned a verdict in favor of the defendants, including RJR Tobacco. The plaintiff alleged that as a result of smoking the defendants’ products, he suffers from chronic obstructive pulmonary disease and lung cancer. Final judgment was entered in favor of the defendants in November 2013. The plaintiff filed a motion for a new trial in December 2013. A decision is pending. | |||||||||||||||||||||||||||||||||
In addition, below is a description of the Engle Progeny cases against RJR Tobacco or B&W, or both, which went to trial or were decided since the end of the fourth quarter of 2013. | |||||||||||||||||||||||||||||||||
On January 9, 2014, in Bush v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Escambia County, Florida, the court declared a mistrial due to the inability to seat a jury. The plaintiff alleged that as a result of his use of the defendants’ products, he suffers from nicotine addiction and one or more smoking related diseases and/or conditions. A new trial will be scheduled at a later date. | |||||||||||||||||||||||||||||||||
On January 13, 2014, in Meeker v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the U.S. District Court for the Middle District of Florida, a jury returned a verdict in favor of RJR Tobacco. The plaintiff alleged that as a result of his use of the defendant’s products, he suffers from addiction and one or more smoking related diseases and/or conditions. Final judgment was entered on January 14, 2014. | |||||||||||||||||||||||||||||||||
On January 17, 2014, in Cuculino v. R. J. Reynolds Tobacco Co., a case filed in December 2007, in the Circuit Court, Miami-Dade County, Florida, a jury returned a verdict in favor of RJR Tobacco and against the remaining defendant. The plaintiff alleged that as a result of his use of the defendants’ products, he suffers from one or more smoking related diseases and/or conditions. | |||||||||||||||||||||||||||||||||
On April 18, 2013, in Anderson v. R. J. Reynolds Tobacco Co., a case pending in Hillsborough County, Florida, the court declared a mistrial due to the jury’s inability to reach a decision. The plaintiff alleged that as a result of using the defendant’s products, the decedent, Daniel Begley, suffered from esophageal cancer. Retrial began on January 6, 2014. On January 24, 2014, a jury returned a verdict in favor of RJR Tobacco. | |||||||||||||||||||||||||||||||||
On January 27, 2014, in Harford v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the U.S. District Court for the Middle District of Florida, a jury returned a verdict in favor of the plaintiff, found the plaintiff to be 82% at fault and RJR Tobacco to be 18% at fault, and awarded $330,000 in compensatory damages. The plaintiff alleged that as a result of his use of the defendant’s products, he suffers from addiction and lung cancer. | |||||||||||||||||||||||||||||||||
On January 31, 2014, in Cheeley v. R. J. Reynolds Tobacco Co., a case filed in November 2007, in the Circuit Court, Broward County, Florida, a jury returned a verdict in favor of the plaintiff, found the decedent, Georgia Cheeley, to be 50% at fault and RJR Tobacco to be 50% at fault, and awarded $3 million in compensatory damages and $2 million in punitive damages. The plaintiff alleged that as a result of smoking the defendant’s products, the decedent suffered from one or more smoking related conditions or diseases. | |||||||||||||||||||||||||||||||||
On February 3, 2014, in Deshaies v. R. J. Reynolds Tobacco Co., a case filed in January 2008, in the U. S. District Court for the Middle District of Florida, a jury returned a verdict in favor of RJR Tobacco. The plaintiff alleged that as a result of smoking the defendant’s products, he suffers from one or more smoking related conditions or diseases. | |||||||||||||||||||||||||||||||||
Broin II Cases | |||||||||||||||||||||||||||||||||
RJR Tobacco, B&W and other cigarette manufacturer defendants settled Broin v. Philip Morris, Inc. in October 1997. This case had been brought in Florida state court on behalf of flight attendants alleged to have suffered from diseases or ailments caused by exposure to ETS in airplane cabins. The settlement agreement required the participating tobacco companies to pay a total of $300 million in three annual $100 million installments, allocated among the companies by market share, to fund research on the early detection and cure of diseases associated with tobacco smoke. It also required those companies to pay a total of $49 million for the plaintiffs’ counsel’s fees and expenses. RJR Tobacco’s portion of these payments was approximately $86 million; B&W’s portion of these payments was approximately $57 million. The settlement agreement bars class members from bringing aggregate claims or obtaining punitive damages and also bars individual claims to the extent that they are based on fraud, misrepresentation, conspiracy to commit fraud or misrepresentation, RICO, suppression, concealment or any other alleged intentional or willful conduct. The defendants agreed that, in any individual case brought by a class member, the defendant will bear the burden of proof with respect to whether ETS can cause certain specifically enumerated diseases, referred to as “general causation.” With respect to all other issues relating to liability, including whether an individual plaintiff’s disease was caused by his or her exposure to ETS in airplane cabins, referred to as “specific causation,” the individual plaintiff will have the burden of proof. On September 7, 1999, the Florida Supreme Court approved the settlement. The Broin IIcases arose out of the settlement of this case. | |||||||||||||||||||||||||||||||||
On October 5, 2000, the Broin court entered an order applicable to all Broin II cases that the terms of the Broin settlement agreement do not require the individual Broin II plaintiffs to prove the elements of strict liability, breach of warranty or negligence. Under this order, there is a rebuttable presumption in the plaintiffs’ favor on those elements, and the plaintiffs bear the burden of proving that their alleged adverse health effects actually were caused by exposure to ETS in airplane cabins, that is, specific causation. | |||||||||||||||||||||||||||||||||
As of December 31, 2013, there were 2,572 Broin II lawsuits pending in Florida. There have been no Broin II trials since 2007. | |||||||||||||||||||||||||||||||||
Class-Action Suits | |||||||||||||||||||||||||||||||||
Overview. As of December 31, 2013, eight class-action cases were pending in the United States against RJR Tobacco or its affiliates or indemnitees. In 1996, the Fifth Circuit Court of Appeals in Castano v. American Tobacco Co. overturned the certification of a nation-wide class of persons whose claims related to alleged addiction to tobacco products. Since this ruling by the Fifth Circuit, most class-action suits have sought certification of state-wide, rather than nation-wide, classes. Class-action suits based on claims similar to those asserted in Castano or claims that class members are at a greater risk of injury or injured by the use of tobacco or exposure to ETS are pending against RJR Tobacco and its affiliates and indemnitees in state or federal courts in California, Illinois, Louisiana, Missouri, and West Virginia. All pending class-action cases are discussed below. | |||||||||||||||||||||||||||||||||
The pending class actions against RJR Tobacco or its affiliates or indemnitees include four cases alleging that the use of the term “lights” constitutes unfair and deceptive trade practices under state law or violates the federal RICO statute. Such suits are pending in state or federal courts in Illinois and Missouri and are discussed below under “— ‘Lights’ Cases.” | |||||||||||||||||||||||||||||||||
Finally, certain third-party payers have filed health-care cost recovery actions in the form of class actions. These cases are discussed below under “— Health-Care Cost Recovery Cases.” | |||||||||||||||||||||||||||||||||
Few smoker class-action complaints have been certified or, if certified, have survived on appeal. Eighteen federal courts, including two courts of appeals, and most state courts that have considered the issue have rejected class certification in such cases. Apart from the Castano case discussed above, only two smoker class actions have been certified by a federal court — In re Simon (II) Litigation, and Schwab [McLaughlin] v. Philip Morris USA, Inc., both of which were filed in the U.S. District Court for the Eastern District of New York and ultimately decertified. | |||||||||||||||||||||||||||||||||
California Business and Professions Code Case. In Sateriale v. R. J. Reynolds Tobacco Co., a class action filed in November 2009 in the U.S. District Court for the Central District of California, the plaintiffs brought the case on behalf of all persons who tried unsuccessfully to redeem Camel Cash certificates from 1991 through March 31, 2007, or who held Camel Cash certificates as of March 31, 2007. The plaintiffs allege that in response to the defendants’ action to discontinue redemption of Camel Cash as of March 31, 2007, customers, like the plaintiffs, attempted to exchange their Camel Cash for merchandise and that the defendants, however, did not have any merchandise to exchange for Camel Cash. The plaintiffs allege unfair business practices, deceptive practices, breach of contract and promissory estoppel. The plaintiffs seek injunctive relief, actual damages, costs and expenses. In January 2010, the defendants filed a motion to dismiss, which prompted the plaintiffs to file an amended complaint in February 2010. The class definition changed to a class consisting of all persons who reside in the U.S. and tried unsuccessfully to redeem Camel Cash certificates, from October 1, 2006 (six months before the defendant ended the Camel Cash program) or who held Camel Cash certificates as of March 31, 2007. The plaintiffs also brought the class on behalf of a proposed California subclass, consisting of all California residents meeting the same criteria. In May 2010, RJR Tobacco’s motion to dismiss the amended complaint for lack of jurisdiction over subject matter and, alternatively, for failure to state a claim was granted with leave to amend. The plaintiffs filed a second amended complaint. In July 2010, RJR Tobacco’s motion to dismiss the second amended complaint was granted with leave to amend. The plaintiffs filed a third amended complaint, and RJR Tobacco filed a motion to dismiss in September 2010. In December 2010, the court granted RJR Tobacco’s motion to dismiss with prejudice. Final judgment was entered by the court, and the plaintiffs filed a notice of appeal, in January 2011. In July 2012, the appellate court affirmed the dismissal of the plaintiffs’ claims under the Unfair Competition Law and the Consumer Legal Remedies Acts and reversed the dismissal of the plaintiffs’ claims for promissory estoppel and breach of contract. RJR Tobacco’s motion for rehearing or rehearing en banc was denied in October 2012. RJR Tobacco filed its answer to the plaintiffs’ third amended complaint in December 2012. Trial is scheduled for November 4, 2014. | |||||||||||||||||||||||||||||||||
“Lights” Cases. As noted above, “lights” class-action cases are pending against RJR Tobacco or B&W in Illinois (2) and Missouri (2). The classes in these cases generally seek to recover $50,000 to $75,000 per class member for compensatory and punitive damages, injunctive and other forms of relief, and attorneys’ fees and costs from RJR Tobacco and/or B&W. In general, the plaintiffs allege that RJR Tobacco or B&W made false and misleading claims that “lights” cigarettes were lower in tar and nicotine and/or were less hazardous or less mutagenic than other cigarettes. The cases typically are filed pursuant to state consumer protection and related statutes. | |||||||||||||||||||||||||||||||||
Many of these “lights” cases were stayed pending review of the Good v. Altria Group, Inc. case by the U.S. Supreme Court. In that “lights” class-action case against Altria Group, Inc. and Philip Morris USA, the U.S. Supreme Court decided that these claims are not preempted by the Federal Cigarette Labeling and Advertising Act or by the Federal Trade Commission’s, referred to as FTC, historic regulation of the industry. Since this decision in December 2008, a number of the stayed cases have become active again. | |||||||||||||||||||||||||||||||||
The seminal “lights” class-action case involves RJR Tobacco’s competitor, Philip Morris, Inc. Trial began in Price v. Philip Morris, Inc. in January 2003. In March 2003, the trial judge entered judgment against Philip Morris in the amount of $7.1 billion in compensatory damages and $3 billion in punitive damages. Based on Illinois law, the bond required to stay execution of the judgment was set initially at $12 billion. Philip Morris pursued various avenues of relief from the $12 billion bond requirement. On December 15, 2005, the Illinois Supreme Court reversed the lower court’s decision and sent the case back to the trial court with instructions to dismiss the case. On December 5, 2006, the trial court granted the defendant’s motion to dismiss and for entry of final judgment. The case was dismissed with prejudice the same day. In December 2008, the plaintiffs filed a petition for relief from judgment, stating that the U.S. Supreme Court’s decision in Good v. Altria Group, Inc. rejected the basis for the reversal. The trial court granted the defendant’s motion to dismiss the plaintiffs’ petition for relief from judgment in February 2009. In March 2009, the plaintiffs filed a notice of appeal to the Illinois Appellate Court, Fifth Judicial District, requesting a reversal of the February 2009 order and remand to the circuit court. On February 24, 2011, the appellate court entered an order, concluding that the two-year time limit for filing a petition for relief from a final judgment began to run when the trial court dismissed the plaintiffs’ lawsuit on December 18, 2006. The appellate court therefore found that the petition was timely, reversed the order of the trial court, and remanded the case for further proceedings. Philip Morris filed a petition for leave to appeal to the Illinois Supreme Court. On September 28, 2011, the Illinois Supreme Court denied Philip Morris’s petition for leave to appeal and returned the case to the trial court for further proceedings. In December 2012, the trial court denied the plaintiffs’ petition for relief from the judgment. The plaintiffs filed a notice of appeal to the Illinois Appellate Court, Fifth Judicial District. Oral argument occurred on October 23, 2013. A decision is pending. | |||||||||||||||||||||||||||||||||
In Turner v. R. J. Reynolds Tobacco Co., a case filed in February 2000 in Circuit Court, Madison County, Illinois, a judge certified a class in November 2001. In June 2003, RJR Tobacco filed a motion to stay the case pending Philip Morris’s appeal of the Price v. Philip Morris Inc. case mentioned above, which the judge denied in July 2003. In October 2003, the Illinois Fifth District Court of Appeals denied RJR Tobacco’s emergency stay/supremacy order request. In November 2003, the Illinois Supreme Court granted RJR Tobacco’s motion for a stay pending the court’s final appeal decision in Price. On October 11, 2007, the Illinois Fifth District Court of Appeals dismissed RJR Tobacco’s appeal of the court’s denial of its emergency stay/supremacy order request and remanded the case to the Circuit Court. A status conference is scheduled for May 28, 2014. | |||||||||||||||||||||||||||||||||
In Howard v. Brown & Williamson Tobacco Corp., another case filed in February 2000 in Circuit Court, Madison County, Illinois, a judge certified a class in December 2001. In June 2003, the trial judge issued an order staying all proceedings pending resolution of the Price v. Philip Morris, Inc. case mentioned above. The plaintiffs appealed this stay order to the Illinois Fifth District Court of Appeals, which affirmed the Circuit Court’s stay order in August 2005. There is currently no activity in the case. | |||||||||||||||||||||||||||||||||
A “lights” class-action case is pending against each of RJR Tobacco and B&W in Missouri. In Collora v. R. J. Reynolds Tobacco Co., a case filed in May 2000 in Circuit Court, St. Louis County, Missouri, a judge in St. Louis certified a class in December 2003. In April 2007, the court granted the plaintiffs’ motion to reassign Collora and the following cases to a single general division: Craft v. Philip Morris Companies, Inc. and Black v. Brown & Williamson Tobacco Corp., discussed below. In April 2008, the court stayed the case pending U.S. Supreme Court review in Good v. Altria Group, Inc. A nominal trial date of January 10, 2011 was scheduled, but it did not proceed at that time. A status conference is scheduled for February 2, 2015. | |||||||||||||||||||||||||||||||||
Finally, in Black v. Brown & Williamson Tobacco Corp., a case filed in November 2000 in Circuit Court, City of St. Louis, Missouri, B&W removed the case to the U.S. District Court for the Eastern District of Missouri. The plaintiffs filed a motion to remand, which was granted in March 2006. In April 2008, the court stayed the case pending U.S. Supreme Court review in Good v. Altria Group, Inc. A nominal trial date of January 10, 2011, was scheduled, but it did not proceed at that time. A status conference is scheduled for February 2, 2015. | |||||||||||||||||||||||||||||||||
In the event RJR Tobacco and its affiliates or indemnitees lose one or more of the pending “lights” class-action suits, RJR Tobacco, depending upon the amount of any damages ordered, could face difficulties in its ability to pay the judgment or obtain any bond required to stay execution of the judgment which could have a material adverse effect on RJR Tobacco’s, and consequently RAI’s, results of operations, cash flows or financial position. | |||||||||||||||||||||||||||||||||
Other Class Actions. In Young v. American Tobacco Co., Inc., a case filed in November 1997 in Circuit Court, Orleans Parish, Louisiana, the plaintiffs brought an ETS class action against U.S. cigarette manufacturers, including RJR Tobacco and B&W, and parent companies of U.S. cigarette manufacturers, including RJR, on behalf of all residents of Louisiana who, though not themselves cigarette smokers, have been exposed to secondhand smoke from cigarettes which were manufactured by the defendants, and who allegedly suffered injury as a result of that exposure. The plaintiffs seek to recover an unspecified amount of compensatory and punitive damages. In March 2013, the court entered an order staying the case, including all discovery, pending the implementation of the smoking cessation program ordered by the court in Scott v. The American Tobacco Co. | |||||||||||||||||||||||||||||||||
In Parsons v. A C & S, Inc., a case filed in February 1998 in Circuit Court, Ohio County, West Virginia, the plaintiff sued asbestos manufacturers, U.S. cigarette manufacturers, including RJR Tobacco and B&W, and parent companies of U.S. cigarette manufacturers, including RJR, seeking to recover $1 million in compensatory and punitive damages individually and an unspecified amount for the class in both compensatory and punitive damages. The class was brought on behalf of persons who allegedly have personal injury claims arising from their exposure to respirable asbestos fibers and cigarette smoke. The plaintiffs allege that Mrs. Parsons’ use of tobacco products and exposure to asbestos products caused her to develop lung cancer and to become addicted to tobacco. In December 2000, three defendants, Nitral Liquidators, Inc., Desseaux Corporation of North American and Armstrong World Industries, filed bankruptcy petitions in the U.S. Bankruptcy Court for the District of Delaware, In re Armstrong World Industries, Inc.Pursuant to section 362(a) of the Bankruptcy Code, Parsons is automatically stayed with respect to all defendants. | |||||||||||||||||||||||||||||||||
Finally, in Jones v. American Tobacco Co., Inc., a case filed in December 1998 in Circuit Court, Jackson County, Missouri, the defendants removed the case to the U.S. District Court for the Western District of Missouri in February 1999. The action was brought against the major U.S. cigarette manufacturers, including RJR Tobacco and B&W, and parent companies of U.S. cigarette manufacturers, including RJR, by tobacco product users and purchasers on behalf of all similarly situated Missouri consumers. The plaintiffs allege that their use of the defendants’ tobacco products has caused them to become addicted to nicotine. The plaintiffs seek to recover an unspecified amount of compensatory and punitive damages. The case was remanded to the Circuit Court in February 1999. There is currently no activity in this case. | |||||||||||||||||||||||||||||||||
Health-Care Cost Recovery Cases | |||||||||||||||||||||||||||||||||
Health-care cost recovery cases have been brought by a variety of plaintiffs. Other than certain governmental actions, these cases largely have been unsuccessful on remoteness grounds, which means that one who pays an injured person’s medical expenses is legally too remote to maintain an action against the person allegedly responsible for the injury. | |||||||||||||||||||||||||||||||||
As of December 31, 2013, two health-care cost recovery cases were pending in the United States against RJR Tobacco, B&W, as its indemnitee, or both, as discussed below after the discussion of the State Settlement Agreements. A limited number of claimants have filed suit against RJR Tobacco, its current or former affiliates, B&W and other tobacco industry defendants to recover funds for health care, medical and other assistance paid by foreign provincial governments in treating their citizens. For additional information on these cases, see “— International Cases” below. | |||||||||||||||||||||||||||||||||
State Settlement Agreements. In June 1994, the Mississippi Attorney General brought an action, Moore v. American Tobacco Co., against various industry members, including RJR Tobacco and B&W. This case was brought on behalf of the state to recover state funds paid for health care and other assistance to state citizens suffering from diseases and conditions allegedly related to tobacco use. Most other states, through their attorneys general or other state agencies, sued RJR Tobacco, B&W and other U.S. cigarette manufacturers based on similar theories. The cigarette manufacturer defendants, including RJR Tobacco and B&W, settled the first four of these cases scheduled for trial — Mississippi, Florida, Texas and Minnesota — by separate agreements with each such state. | |||||||||||||||||||||||||||||||||
On November 23, 1998, the major U.S. cigarette manufacturers, including RJR Tobacco and B&W, entered into the Master Settlement Agreement with attorneys general representing the remaining 46 states, the District of Columbia, Puerto Rico, Guam, the Virgin Islands, American Samoa and the Northern Marianas. Effective on November 12, 1999, the MSA settled all the health-care cost recovery actions brought by, or on behalf of, the settling jurisdictions and released various additional present and future claims. | |||||||||||||||||||||||||||||||||
In the settling jurisdictions, the MSA released RJR Tobacco, B&W, and their affiliates and indemnitees, including RAI, from: | |||||||||||||||||||||||||||||||||
• | all claims of the settling states and their respective political subdivisions and other recipients of state health-care funds, relating to past conduct arising out of the use, sale, distribution, manufacture, development, advertising, marketing or health effects of, the exposure to, or research, statements or warnings about, tobacco products; and | ||||||||||||||||||||||||||||||||
• | all monetary claims of the settling states and their respective political subdivisions and other recipients of state health-care funds, relating to future conduct arising out of the use of or exposure to, tobacco products that have been manufactured in the ordinary course of business. | ||||||||||||||||||||||||||||||||
Set forth below are tables depicting the unadjusted tobacco industry settlement payment schedule and the settlement payment schedule for RAI’s operating subsidiaries under the State Settlement Agreements, and related information for 2011 and beyond: | |||||||||||||||||||||||||||||||||
Unadjusted Original Participating Manufacturers’ Settlement Payment Schedule | |||||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | ||||||||||||||||||||||||||
First Four States’ Settlements:(1) | |||||||||||||||||||||||||||||||||
Mississippi Annual Payment | $ | 136 | $ | 136 | $ | 136 | $ | 136 | $ | 136 | $ | 136 | $ | 136 | $ | 136 | |||||||||||||||||
Florida Annual Payment | 440 | 440 | 440 | 440 | 440 | 440 | 440 | 440 | |||||||||||||||||||||||||
Texas Annual Payment | 580 | 580 | 580 | 580 | 580 | 580 | 580 | 580 | |||||||||||||||||||||||||
Minnesota Annual Payment | 204 | 204 | 204 | 204 | 204 | 204 | 204 | 204 | |||||||||||||||||||||||||
Remaining Jurisdictions’ Settlement: | |||||||||||||||||||||||||||||||||
Annual Payments(1) | 8,004 | 8,004 | 8,004 | 8,004 | 8,004 | 8,004 | 8,004 | 8,004 | |||||||||||||||||||||||||
Total | $ | 9,364 | $ | 9,364 | $ | 9,364 | $ | 9,364 | $ | 9,364 | $ | 9,364 | $ | 9,364 | $ | 9,364 | |||||||||||||||||
RAI’s Operating Subsidiaries’ Settlement Expenses and Payment Schedule | |||||||||||||||||||||||||||||||||
Settlement expenses | $ | 2,435 | $ | 2,370 | $ | 1,819 | — | — | — | — | — | ||||||||||||||||||||||
Settlement cash payments | $ | 2,492 | $ | 2,414 | $ | 2,582 | — | — | — | — | — | ||||||||||||||||||||||
Projected settlement expenses | $ | >1,900 | $ | >1,900 | $ | >1,900 | $ | >2,000 | $ | >2,000 | |||||||||||||||||||||||
Projected settlement cash payments | $ | >2,000 | $ | >1,900 | $ | >1,900 | $ | >1,900 | $ | >2,000 | |||||||||||||||||||||||
-1 | Subject to adjustments for changes in sales volume, inflation and other factors. All payments are to be allocated among the companies on the basis of relative market share. For further information, see “— State Settlement Agreements — Enforcement and Validity; Adjustments” below. | ||||||||||||||||||||||||||||||||
The State Settlement Agreements also contain provisions restricting the marketing of tobacco products. Among these provisions are restrictions or prohibitions on the use of cartoon characters, brand-name sponsorships, apparel and other merchandise, outdoor and transit advertising, payments for product placement, free sampling and lobbying. Furthermore, the State Settlement Agreements required the dissolution of three industry-sponsored research and trade organizations. | |||||||||||||||||||||||||||||||||
The State Settlement Agreements have materially adversely affected RJR Tobacco’s shipment volumes. RAI believes that these settlement obligations may materially adversely affect the results of operations, cash flows or financial position of RAI and RJR Tobacco in future periods. The degree of the adverse impact will depend, among other things, on the rate of decline in U.S. cigarette sales in the premium and value categories, RJR Tobacco’s share of the domestic premium and value cigarette categories, and the effect of any resulting cost advantage of manufacturers not subject to the State Settlement Agreements. | |||||||||||||||||||||||||||||||||
U.S. Department of Justice Case. On September 22, 1999, in United States v. Philip Morris USA Inc., the U.S. Department of Justice brought an action against RJR Tobacco, B&W and other tobacco companies in the U.S. District Court for the District of Columbia. The government initially sought to recover federal funds expended by the federal government in providing health care to smokers who developed diseases and injuries alleged to be smoking-related, based on several federal statutes. In addition, the government sought, pursuant to the civil provisions of RICO, disgorgement of profits the government contends were earned as a consequence of a RICO racketeering “enterprise.” In September 2000, the court dismissed the government’s claims asserted under the Medical Care Recovery Act as well as those under the Medicare Secondary Payer provisions of the Social Security Act, but did not dismiss the RICO claims. In February 2005, the U.S. Court of Appeals for the District of Columbia ruled that disgorgement is not an available remedy in this case. The government’s petition for writ of certiorari with the U.S. Supreme Court was denied in October 2005. The non-jury, bench trial began in September 2004, and closing arguments concluded in June 2005. | |||||||||||||||||||||||||||||||||
On August 17, 2006, the court found certain defendants, including RJR Tobacco and B&W, liable for the RICO claims, but did not impose any direct financial penalties. The court instead enjoined the defendants from committing future racketeering acts, participating in certain trade organizations, making misrepresentations concerning smoking and health and youth marketing, and using certain brand descriptors such as “low tar,” “light,” “ultra light,” “mild” and “natural.” The court also ordered defendants to issue “corrective communications” on five subjects, including smoking and health and addiction, and to comply with further undertakings, including maintaining web sites of historical corporate documents and disseminating certain marketing information on a confidential basis to the government. In addition, the court placed restrictions on the ability of the defendants to dispose of certain assets for use in the United States, unless the transferee agrees to abide by the terms of the court’s order, and ordered the defendants to reimburse the U.S. Department of Justice its taxable costs incurred in connection with the case. | |||||||||||||||||||||||||||||||||
Certain defendants, including RJR Tobacco, filed notices of appeal to the U.S. Court of Appeals for the District of Columbia in September 2006. The government filed its notice of appeal in October 2006. In addition, the defendants, including RJR Tobacco, filed joint motions asking the district court to clarify and to stay its order pending the defendants’ appeal. On September 28, 2006, the district court denied the defendants’ motion to stay. On September 29, 2006, the defendants, including RJR Tobacco, filed a motion asking the court of appeals to stay the district court’s order pending the defendants’ appeal. The court granted the motion in October 2006. | |||||||||||||||||||||||||||||||||
In November 2006, the court of appeals stayed the appeals pending the trial court’s ruling on the defendants’ motion for clarification. The defendants’ motion was granted in part and denied in part. The defendants’ motion as to the meaning and applicability of the general injunctive relief of the August 2006 order was denied. The request for clarification as to the scope of the provisions in the order prohibiting the use of descriptors and requiring corrective statements at retail point of sale was granted. The court also ruled that the provisions prohibiting the use of express or implied health messages or descriptors do apply to the actions of the defendants taken outside of the United States. | |||||||||||||||||||||||||||||||||
In May 2009, the U.S. Court of Appeals largely affirmed the finding of liability against the tobacco defendants and remanded to the trial court for dismissal of the trade organizations. The court also largely affirmed the remedial order, including the denial of additional remedies, but vacated the order and remanded for further proceedings as to the following four discrete issues: | |||||||||||||||||||||||||||||||||
• | the issue of the extent of Brown & Williamson Holdings Inc.’s control over tobacco operations was remanded for further fact finding and clarification; | ||||||||||||||||||||||||||||||||
• | the remedial order was vacated to the extent that it binds all defendants’ subsidiaries and was remanded to the lower court for determination as to whether inclusion of the subsidiaries and which of the subsidiaries satisfy Rule 65(d) of the Federal Rules of Civil Procedure; | ||||||||||||||||||||||||||||||||
• | the court held that the provision found in paragraph four of the injunction, concerning the use of any express or implied health message or health descriptor for any cigarette brand, should not be read to govern overseas sales. The issue was remanded to the lower court with instructions to reformulate it so as to exempt foreign activities that have no substantial, direct and foreseeable domestic effects; and | ||||||||||||||||||||||||||||||||
• | the remedial order was vacated regarding “point of sale” displays and remanded for the district court to evaluate and make due provisions for the rights of innocent persons, either by abandoning this part of the remedial order or re-crafting a new version reflecting the rights of third parties. | ||||||||||||||||||||||||||||||||
RJR Tobacco and the other defendants, as well as the Department of Justice, filed petitions for writ of certiorari to the U.S. Supreme Court in February 2010. In June 2010, the U.S. Supreme Court denied the parties’ petitions for writ of certiorari. | |||||||||||||||||||||||||||||||||
Post-remand proceedings are underway to determine the extent to which the original order will be implemented. On December 22, 2010, the trial court dismissed Brown & Williamson Holdings, Inc. from the litigation. On March 3, 2011, the defendants filed a motion for vacatur, in which they moved to vacate the trial court’s injunctions and factual findings and dismiss the case in its entirety. The court denied the motion on June 1, 2011. The defendants filed a notice of appeal. In addition, the parties to the lawsuit entered into an agreement concerning certain technical obligations regarding their public websites. Pursuant to this agreement, RJR Tobacco agreed to deposit $3.125 million over three years into the registry of the district court. In July 2012, the Court of Appeals for the D.C. Circuit affirmed the trial court’s denial of the defendants’ motion to vacate the injunctions. In November 2012, the trial court entered an order wherein the court determined the language to be included in the text of the corrective statements and directed the parties to engage in discussions with the Special Master to implement them. The defendants filed a notice of appeal of that order on January 25, 2013. In February 2013, the appellate court granted the defendants’ motion to hold the case in abeyance pending the District Court’s resolution of corrective statement implementation issues. The mediation process on implementation issues has largely concluded. In the fourth quarter of 2013, $10 million was accrued for the estimated costs of the corrective communications. On January 10, 2014, the parties jointly filed a motion seeking entry of a consent order to govern implementation issues. On January 22, 2014, the district court held a status conference to discuss the proposed consent order. At that status conference, the court asked questions about the proposed consent order and heard from all parties in response to those questions. The court then asked all parties to file a written submission by February 18, 2014. | |||||||||||||||||||||||||||||||||
Native American Tribe Case. As of December 31, 2013, one Native American tribe case was pending before a tribal court against RJR Tobacco and B&W, Crow Creek Sioux Tribe v. American Tobacco Co., a case filed in September 1997 in Tribal Court, Crow Creek Sioux, South Dakota. The plaintiffs seek to recover actual and punitive damages, restitution, funding of a clinical cessation program, funding of a corrective public education program, and disgorgement of unjust profits from sales to minors. The plaintiffs claim that the defendants are liable under the following theories: unlawful marketing and targeting of minors, contributing to the delinquency of minors, unfair and deceptive acts or practices, unreasonable restraint of trade and unfair method of competition, negligence, negligence per se, conspiracy and restitution of unjust enrichment. The case is dormant. | |||||||||||||||||||||||||||||||||
International Cases. Nine health-care reimbursement cases have been filed against RJR Tobacco, its current or former affiliates, or B&W outside the United States, by nine Canadian provinces. The remaining Canadian province, the Province of Nova Scotia, has indicated an intention to file a similar case. In these actions, foreign governments are seeking to recover for health care, medical and other assistance paid and to be paid in treating their citizens for tobacco-related disease. No such actions are pending in the United States. Pursuant to the terms of the 1999 sale of RJR Tobacco’s international tobacco business, RJR Tobacco has tendered the defense of these actions to JTI. Subject to a reservation of rights, JTI has assumed the defense of RJR Tobacco and its current or former affiliates. | |||||||||||||||||||||||||||||||||
• | British Columbia — In 1997, British Columbia enacted a statute, subsequently amended, which created a civil cause of action for the government to recover the costs of health-care benefits incurred for insured populations of British Columbia residents resulting from tobacco-related disease. An action brought on behalf of the Province of British Columbia pursuant to the statute against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and certain of its affiliates, was dismissed in February 2000 when the British Columbia Supreme Court ruled that the legislation was unconstitutional and set aside service ex juris against the foreign defendants for that reason. British Columbia then enacted a revised statute, pursuant to which an action was filed in January 2001 against many of the same defendants, including RJR Tobacco and one of its affiliates, in Supreme Court, British Columbia. In that action, the British Columbia government seeks to recover the present value of its total expenditures for health-care benefits provided for insured persons resulting from tobacco-related disease or the risk of tobacco-related disease caused by alleged breaches of duty by the manufacturers, the present value of its estimated total expenditures for health-care benefits that reasonably could be expected to be provided for those insured persons resulting from tobacco-related disease or the risk of tobacco-related disease in the future, court ordered interest, and costs, or in the alternative, special or increased costs. The government alleges that the defendants are liable under the British Columbia statute by reason of their “tobacco related wrongs,” which are alleged to include: selling defective products, failure to warn, sale of cigarettes to children and adolescents, strict liability, deceit and misrepresentation, violation of trade practice and competition acts, concerted action, and joint liability. A jurisdictional challenge brought by RJR Tobacco and its affiliate was dismissed. RJR Tobacco and its affiliate filed statements of defense in January 2007. Pretrial discovery is ongoing. | ||||||||||||||||||||||||||||||||
• | New Brunswick — In March 2008, a case was filed on behalf of Her Majesty the Queen in Right of the Province of New Brunswick, Canada, against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco’s predecessor and one of RJR Tobacco’s affiliates, in the Trial Division in the Court of Queen’s Bench of New Brunswick. The claim is brought pursuant to New Brunswick legislation enacted in 2008, which legislation is substantially similar to the revised British Columbia statute described above. In this action, the New Brunswick government seeks to recover essentially the same types of damages that are being sought in the British Columbia action described above based on analogous theories of liability. RJR Tobacco and its affiliate filed statements of defense in March 2010. Pretrial discovery is ongoing. | ||||||||||||||||||||||||||||||||
• | Ontario — In September 2009, a case was filed on behalf of the Province of Ontario, Canada, against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, in the Ontario Superior Court of Justice. The claim is brought pursuant to Ontario legislation enacted in 2009, which legislation is substantially similar to the revised British Columbia statute described above. In this action, the Ontario government seeks to recover essentially the same types of damages that are being sought in the British Columbia and New Brunswick actions described above based on analogous theories of liability, although the government also asserted claims based on the illegal importation of cigarettes, which claims were deleted in an amended statement of claim filed in August 2010. A jurisdictional challenge brought by RJR Tobacco and its affiliate was dismissed. Preliminary motions are pending. | ||||||||||||||||||||||||||||||||
• | Newfoundland and Labrador — In February 2011, a case was filed on behalf of the Province of Newfoundland and Labrador, Canada against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, in the General Trial Division of the Supreme Court of Newfoundland and Labrador. The claim is brought pursuant to legislation passed in Newfoundland in 2001 and proclaimed in February 2011, which legislation is substantially similar to the revised British Columbia statute described above. In this action, the Newfoundland government seeks to recover essentially the same types of damages that are being sought in the British Columbia and other provincial actions described above based on analogous theories of liability. RJR Tobacco and its affiliate have brought a motion challenging the jurisdiction of the Newfoundland court. A decision is pending. | ||||||||||||||||||||||||||||||||
• | Quebec — In June 2012, a case was filed on behalf of the Province of Quebec, Canada, against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, in the Superior Court of the Province of Quebec, District of Montreal. The claim is brought pursuant to legislation enacted in Quebec in 2009, which legislation is substantially similar to the revised British Columbia statute described above. In this action, the Quebec government seeks to recover essentially the same types of damages that are being sought in the British Columbia and other provincial actions described above based on analogous theories of liability. RJR Tobacco and its affiliate have brought a motion challenging the jurisdiction of the Quebec court, which was dismissed. Preliminary motions are pending. Separately, in August 2009, certain Canadian manufacturers filed a constitutional challenge to the Quebec statute, and the decision regarding that challenge has been reserved. | ||||||||||||||||||||||||||||||||
• | Manitoba — In May 2012, a case was filed on behalf of the Province of Manitoba, Canada, against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, in the Court of Queen’s Bench, Winnipeg Judicial Centre, Manitoba. The claim is brought pursuant to legislation assented to in 2006 and proclaimed in 2012, which legislation is substantially similar to the revised British Columbia statute described above. In this action, the Manitoba government seeks to recover essentially the same types of damages that are being sought in the British Columbia and other provincial actions described above based on analogous theories of liability. RJR Tobacco and its affiliate have brought a motion challenging the jurisdiction of the Manitoba court. A decision is pending. | ||||||||||||||||||||||||||||||||
• | Saskatchewan — In June 2012, a case was filed on behalf of the Province of Saskatchewan, Canada, against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, in the Court of Queen’s Bench, Judicial Centre of Saskatoon, Saskatchewan. The claim is brought pursuant to legislation assented to in 2007 and proclaimed in 2012, which legislation is substantially similar to the revised British Columbia statute described above. In this action, the Saskatchewan government seeks to recover essentially the same types of damages that are being sought in the British Columbia and other provincial actions described above based on analogous theories of liability. RJR Tobacco and its affiliate have brought a motion challenging the jurisdiction of the Saskatchewan court, which was dismissed on October 1, 2013. An application for leave to appeal to the Court of Appeal for Saskatchewan has been filed. | ||||||||||||||||||||||||||||||||
• | Alberta — In June 2012, a case was filed on behalf of the Province of Alberta, Canada, against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, in the Court of Queen’s Bench of Alberta Judicial Centre, Calgary, Alberta. The claim is brought pursuant to legislation assented to in 2009 and proclaimed in 2012, which legislation is substantially similar to the revised British Columbia statute described above. In this action, the Alberta government seeks to recover essentially the same types of damages that are being sought in the British Columbia and other provincial actions described above based on analogous theories of liability. RJR Tobacco and its affiliate have brought a motion challenging the jurisdiction of the Alberta court. A decision is pending. | ||||||||||||||||||||||||||||||||
• | Prince Edward Island — In September 2012, a case was filed on behalf of the Province of Prince Edward Island, Canada, against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, in the Supreme Court of Prince Edward Island (General Section), Charlottetown, Prince Edward Island. The claim is brought pursuant to legislation assented to in 2009 and proclaimed in 2012, which legislation is substantially similar to the revised British Columbia statute described above. In this action, the Prince Edward Island government seeks to recover essentially the same types of damages that are being sought in the British Columbia and other provincial actions described above based on analogous theories of liability. RJR Tobacco and its affiliate have brought a motion challenging the jurisdiction of the Prince Edward Island court. A decision is pending. | ||||||||||||||||||||||||||||||||
The following seven putative Canadian class actions were filed against various Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, in courts in the Provinces of Alberta, British Columbia, Manitoba, Nova Scotia, Ontario and Saskatchewan, although the plaintiffs’ counsel have been actively pursuing only the action pending in British Columbia at this time: | |||||||||||||||||||||||||||||||||
• | In Adams v. Canadian Tobacco Manufacturers’ Council, a case filed in July 2009 in the Court of Queen’s Bench for Saskatchewan against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, the plaintiff, an individual smoker, alleging her own addiction and chronic obstructive pulmonary disease resulting from the use of tobacco products, is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all individuals who were alive on July 10, 2009, and who have suffered, or who currently suffer, from chronic obstructive pulmonary disease, emphysema, heart disease or cancer, after having smoked a minimum of 25,000 cigarettes designed, manufactured, imported, marketed or distributed by the defendants, as well as disgorgement of revenues earned by the defendants. RJR Tobacco and its affiliate have brought a motion challenging the jurisdiction of the Saskatchewan court. A decision is pending. | ||||||||||||||||||||||||||||||||
• | In Dorion v. Canadian Tobacco Manufacturers’ Council, a case filed in June 2009, in the Court of Queen’s Bench of Alberta against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, the plaintiff, an individual smoker, alleging her own addiction and chronic bronchitis resulting from the use of tobacco products, is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all individuals, including their estates, dependents and family members, who purchased or smoked cigarettes designed, manufactured, marketed or distributed by the defendants, as well as restitution of profits and reimbursement of government expenditure for health-care benefits allegedly caused by the use of tobacco products. | ||||||||||||||||||||||||||||||||
• | In Kunka v. Canadian Tobacco Manufacturers’ Council, a case filed in 2009 in the Court of Queen’s Bench of Manitoba against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, the plaintiff, an individual smoker, alleging her own addiction and chronic obstructive pulmonary disease, severe asthma and lung disease resulting from the use of tobacco products, is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all individuals, including their estates, and their dependents and family members, who purchased or smoked cigarettes manufactured by the defendants, as well as restitution of profits and reimbursement of government expenditure for health care benefits allegedly caused by the use of tobacco products. | ||||||||||||||||||||||||||||||||
• | In Semple v. Canadian Tobacco Manufacturers’ Council, a case filed in June 2009 in the Supreme Court of Nova Scotia against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, the plaintiff, an individual smoker, alleging his own addiction and chronic obstructive pulmonary disease resulting from the use of tobacco products, is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all individuals, including their estates, dependents and family members, who purchased or smoked cigarettes designed, manufactured, marketed or distributed by the defendants for the period from January 1, 1954, to the expiry of the opt out period as set by the court, as well as restitution of profits and reimbursement of government expenditure for health-care costs allegedly caused by the use of tobacco products. | ||||||||||||||||||||||||||||||||
• | In Bourassa v. Imperial Tobacco Canada Limited, a case filed in June 2010 in the Supreme Court of British Columbia against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, the plaintiff, the heir to a deceased smoker, alleging that the deceased was addicted to and suffered emphysema resulting from the use of tobacco products, is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all individuals, including their estates, who were alive on June 12, 2007, and who have suffered, or who currently suffer from chronic respiratory diseases, after having smoked a minimum of 25,000 cigarettes designed, manufactured, imported, marketed, or distributed by the defendants, as well as disgorgement of revenues earned by the defendants from January 1, 1954, to the date the claim was filed. RJR Tobacco and its affiliate have filed a challenge to the jurisdiction of the British Columbia court. A decision is pending. The plaintiff filed a motion for certification in April 2012, and filed affidavits in support in August 2013. | ||||||||||||||||||||||||||||||||
• | In McDermid v. Imperial Tobacco Canada Limited, a case filed in June 2010 in the Supreme Court of British Columbia against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, the plaintiff, an individual smoker, alleging his own addiction and heart disease resulting from the use of tobacco products, is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all individuals, including their estates, who were alive on June 12, 2007, and who have suffered, or who currently suffer from heart disease, after having smoked a minimum of 25,000 cigarettes designed, manufactured, imported, marketed, or distributed by the defendants, as well as disgorgement of revenues earned by the defendants from January 1, 1954, to the date the claim was filed. RJR Tobacco and its affiliate have filed a challenge to the jurisdiction of the British Columbia court. A decision is pending. | ||||||||||||||||||||||||||||||||
• | In Jacklin v. Canadian Tobacco Manufacturers’ Council, a case filed in June 2012 in the Ontario Superior Court of Justice against Canadian and non-Canadian tobacco-related entities, including RJR Tobacco and one of its affiliates, the plaintiff, an individual smoker, alleging her own addiction and chronic obstructive pulmonary disease resulting from the use of tobacco products, is seeking compensatory and unspecified punitive damages on behalf of a proposed class comprised of all individuals, including their estates, who were alive on June 12, 2007, and who have suffered, or who currently suffer from chronic obstructive pulmonary disease, heart disease, or cancer, after having smoked a minimum of 25,000 cigarettes designed, manufactured, imported, marketed, or distributed by the defendants, as well as restitution of profits, and reimbursement of government expenditure for health-care benefits allegedly caused by the use of tobacco products. | ||||||||||||||||||||||||||||||||
In each of these seven cases, the plaintiffs allege fraud, fraudulent concealment, breach of warranty, breach of warranty of merchantability and of fitness for a particular purpose, failure to warn, design defects, negligence, breach of a “special duty” to children and adolescents, conspiracy, concert of action, unjust enrichment, market share liability, joint liability, and violations of various trade practices and competition statutes. Pursuant to the terms of the 1999 sale of RJR Tobacco’s international tobacco business, RJR Tobacco has tendered the defense of these seven actions to JTI. Subject to a reservation of rights, JTI has assumed the defense of RJR Tobacco and its current or former affiliates in these actions. | |||||||||||||||||||||||||||||||||
State Settlement Agreements-Enforcement and Validity; Adjustments | |||||||||||||||||||||||||||||||||
As of December 31, 2013, there were 31 cases concerning the enforcement, validity or interpretation of the State Settlement Agreements in which RJR Tobacco or B&W is a party. This number includes those cases, discussed below, relating to disputed payments under the State Settlement Agreements. | |||||||||||||||||||||||||||||||||
The Vermont Attorney General filed suit in July 2005, in the Vermont Superior Court, Chittenden County, alleging that certain advertising for the Eclipse cigarette brand violated both the MSA and the Vermont Consumer Fraud Statute. The State of Vermont sought declaratory, injunctive, and monetary relief. The bench trial in this action began on October 6, 2008, and lasted a total of five weeks. Closing arguments occurred on March 11, 2009. On March 10, 2010, the court issued its opinion, finding that three of the advertising claims made by RJR Tobacco were not supported by the appropriate degree of scientific evidence. The court did, however, rule that the remaining six advertising claims challenged by the State of Vermont were not actionable. The court indicated that remedies and any damages to be awarded, as well as the issue of attorney’s fees and litigation expenses, will be addressed in additional proceedings. On March 22, 2010, RJR Tobacco filed a motion to amend findings of fact that it believed were demonstrably contrary to, or unsupported by, the record. On December 14, 2010, the court issued an order granting in part and denying in part RJR Tobacco’s motion. The parties conducted a mediation on the remaining issues on February 14, 2012, but failed to reach an agreement. On June 3, 2013, the court awarded $8.3 million in civil penalties and entered a permanent injunction against RJR Tobacco imposing certain limits on the “marketing, distributing, selling, promoting or advertising” within Vermont of any “non-traditional cigarette” or “potentially reduced exposure product”, referred to as PREP, with reduced risk claims, absent certain studies in support. In August 2013, the court clarified its order, ruling that the injunction applied to only non-traditional cigarettes containing tobacco and does not impact either smokeless tobacco products or PREPs generally. RJR Tobacco filed a notice of appeal on September 5, 2013. On September 18, 2013, Vermont filed a notice of cross appeal. On December 6, 2013, RJR Tobacco and the State of Vermont agreed to settle the Eclipse litigation on the following terms: (1) RJR Tobacco would pay the State $14 million to resolve any and all monetary claims that the State has asserted or might have asserted in the Eclipse litigation, including but not limited to, any and all claims for civil penalties, prejudgment interest, post-judgment interest, and the State’s claim for attorneys’ fees, expenses and costs; (2) the injunction the court imposed (limited to “non-traditional cigarette PREPs”) remains in place, and (3) both sides will withdraw their pending appeals to the Vermont Supreme Court. RJR Tobacco paid the $14 million to the State on December 13, 2013. On January 2, 2014, the Vermont Supreme Court dismissed RJR Tobacco’s appeal and the State’s cross appeal that had earlier been filed. This matter is now concluded. | |||||||||||||||||||||||||||||||||
In April 2005, the Mississippi Attorney General notified B&W of its intent to seek approximately $3.9 million in additional payments under the Mississippi Settlement Agreement. The Mississippi Attorney General asserts that B&W failed to report in its net operating profit or its shipments, cigarettes manufactured by B&W under contract for Star Tobacco or its parent, Star Scientific, Inc. B&W advised the State that it did not owe the state any money. In August 2005, the Mississippi Attorney General filed in the Chancery Court of Jackson County, Mississippi, a Notice of Violation, Motion to Enforce Settlement Agreement, and Request for an Accounting by Defendant Brown & Williamson Holdings, Inc., formerly known as Brown & Williamson Tobacco Corporation. In this filing, Mississippi estimated that its damages exceeded $5.0 million. On August 24, 2011, the court entered an order finding in favor of the State on the Star contract manufacturing issue, that the total amount of the underpayment from B&W was approximately $3.8 million and that interest on the underpayment was approximately $4.3 million. The court also appointed a Special Master to undertake an accounting of the benefit received by B&W for failure to include its profits from Star contract manufacturing in its net operating profits reported to the State. B&W filed a motion to certify the Star contract issue for interlocutory appeal, pursuant to Rule 54 (b) of the Mississippi Rules of Civil Procedure. On January 9, 2012, that motion was denied. A ruling from the Special Master on the benefit received by B&W issue is pending. | |||||||||||||||||||||||||||||||||
In February 2010, the Mississippi Attorney General filed a motion alleging that RJR Tobacco had improperly failed to report shipments of certain categories of cigarette volumes, and for certain years had improperly reported its net operating profit. As a result, the State alleges that settlement payments to it were improperly reduced. RJR Tobacco disputes these allegations and is vigorously defending against them. Hearings on these issues were held on January 24-25, 2012, and May 9, 2012. On May 15, 2012, the court entered an order finding in favor of RJR Tobacco on the claim related to RJR Tobacco’s reported net operating profits in the year used as a baseline for future calculations of the State’s net operating profits payment. The State had sought $3.8 million in damages for this issue, with an additional $2.7 million in interest. On June 19, 2012, the court entered an order finding in favor of the State on the remaining issues, holding that the total amount of the underpayment was approximately $3.3 million and that interest on the underpayment was also approximately $3.3 million, though the court also held that this amount should be offset by additional payments previously made by Lorillard Tobacco Company on some of these issues. The court further ordered RJR Tobacco to perform an accounting of its profits and shipments from 1999-2011. On July 10, 2012, RJR Tobacco filed a petition with the Mississippi Supreme Court requesting leave to immediately appeal the court’s ordered accounting and its entry of judgment for the State without first conducting an evidentiary hearing. On August 15, 2012, the request was denied. An independent accountant acceptable to both the State and RJR Tobacco was identified and retained. On August 8, 2013, the final report of the independent accountant was filed with the court. The report generally found that RJR Tobacco’s accounting and reporting of information in connection with settlement payment calculations was correct. In some respects, the report expressly disagreed with findings made earlier by the trial court. On December 13, 2013, the State of Mississippi filed its report as to additional damages due it from RJR Tobacco, challenging in various respects the findings set forth in the final report of the independent accountant and seeking various changes to the damages calculations. Also on December 13, 2013, RJR Tobacco filed a motion to finalize damages of third round issues, and/or reconsider, the June 19, 2012, order requesting that the court implement the findings of the independent accountant in a final order on the damage issues and/or to revisit its earlier rulings “in light of the findings and determinations in the independent accountant’s report.” These filings are now pending before the court. | |||||||||||||||||||||||||||||||||
Finally, in connection with the actions brought against RJR Tobacco and B&W, the court awarded the State attorneys’ fees and expenses in an amount to be determined. On May 1, 2013, a hearing on attorneys’ fees and expenses was held before the Special Master appointed by the court. On November 19, 2013, the Special Master issued a report and recommendations on application for award of costs and attorneys’ fees. The Special Master ruled that attorneys’ fees are to be paid with respect to the settlement payment claims against B&W and RJR Tobacco at 25% of “total amounts” awarded to the State of Mississippi by the court in its August 24, 2011, ruling. This recommendation would result in an attorneys’ fee award of approximately $3.7 million, plus 25% of accumulated interest. On December 13, 2013, the State of Mississippi filed a statement regarding report of Special Master on the issue of attorneys’ fees seeking various clarifications of the Special Master’s ruling. Also on December 13, 2013, B&W and RJR Tobacco filed their objections to Special Master’s report and findings on application for award of costs and attorneys’ fees, challenging on various grounds the Special Master’s fee award. The court has not yet acted on the Special Master’s report and recommendation or the filings related thereto. | |||||||||||||||||||||||||||||||||
In May 2006, the State of Florida filed a motion, in the Circuit Court of the Fifteenth Judicial Circuit, in and for Palm Beach County, Florida, to enforce the Florida Settlement Agreement, for an Accounting by Brown & Williamson Holdings, Inc., and for an Order of Contempt, raising substantially the same issues as raised by the Mississippi Attorney General and seeking approximately $12.4 million in additional payments under the Florida Settlement Agreement, as well as $17.0 million in interest payments. This matter is currently in the discovery phase. | |||||||||||||||||||||||||||||||||
NPM Adjustment Claims. The MSA includes an adjustment that potentially reduces the annual payment obligations of RJR Tobacco and the other PMs. Certain requirements, collectively referred to as the Adjustment Requirements, must be satisfied before the NPM Adjustment for a given year is available: | |||||||||||||||||||||||||||||||||
• | an independent auditor designated under the MSA, referred to as the Independent Auditor, must determine that the PMs have experienced a market share loss beyond a triggering threshold to those manufacturers that do not participate in the MSA, such non-participating manufacturers, referred to as NPMs; and | ||||||||||||||||||||||||||||||||
• | in a binding arbitration proceeding, a firm of independent economic consultants must find that the disadvantages of the MSA were a significant factor contributing to the loss. This finding is known as a significant factor determination. | ||||||||||||||||||||||||||||||||
When the Adjustment Requirements are satisfied, the MSA provides that the NPM Adjustment applies to reduce the annual payment obligation of the PMs. However, an individual settling state may avoid its share of the NPM Adjustment if it had in place and diligently enforced during the entirety of the relevant year a “Qualifying Statute” that imposes escrow obligations on NPMs that are comparable to what the NPMs would have owed if they had joined the MSA. In such event, the state’s share of the NPM Adjustment is reallocated to other settling states, if any, that did not have in place and diligently enforce a Qualifying Statute. | |||||||||||||||||||||||||||||||||
NPM Adjustment Claim for 2003. For 2003, the Adjustment Requirements were satisfied. As a result, in April 2006, RJR Tobacco placed approximately $647 million of its MSA payment into a disputed payments account, in accordance with a procedure established by the MSA. That amount represented RJR Tobacco’s share of the 2003 NPM Adjustment as calculated by the Independent Auditor. In March 2007, the Independent Auditor issued revised calculations that reduced RJR Tobacco’s share of the NPM Adjustment for 2003 to approximately $615 million. As a result, in April 2007, RJR Tobacco instructed the Independent Auditor to release to the settling states approximately $32 million from the disputed payments account. | |||||||||||||||||||||||||||||||||
Following RJR Tobacco’s payment of a portion of its 2006 MSA payment into the disputed payments account, 37 of the settling states filed legal proceedings in their respective MSA courts seeking declaratory orders that they diligently enforced their Qualifying Statutes during 2003 and/or orders compelling RJR Tobacco and the other PMs that placed money in the disputed payments account to pay the disputed amounts to the settling states. In response, RJR Tobacco and other PMs, pursuant to the MSA’s arbitration provisions, moved to compel arbitration of the parties’ dispute concerning the 2003 NPM Adjustment, including the states’ diligent enforcement claims, before an arbitration panel consisting of three retired federal court judges. The settling states opposed these motions, arguing, among other things, that the issue of diligent enforcement must be resolved by MSA courts in each of the 52 settling states and territories. | |||||||||||||||||||||||||||||||||
As of December 31, 2013, 47 of the 48 courts that had addressed the question whether the dispute concerning the 2003 NPM Adjustment is arbitrable had ruled that arbitration is required under the MSA. The Montana Supreme Court ruled that the State of Montana did not agree to arbitrate the question of whether it diligently enforced a qualifying statute. Subsequently, Montana and the PMs reached an agreement whereby the PMs agreed not to contest Montana’s claim that it diligently enforced the Qualifying Statute during 2003. | |||||||||||||||||||||||||||||||||
In January 2009, RJR Tobacco and certain other PMs entered into an Agreement Regarding Arbitration, referred to as the Arbitration Agreement, with 45 of the MSA settling states (representing approximately 90% of the allocable share of the settling states) pursuant to which those states agreed to participate in a multistate arbitration of issues related to the 2003 NPM Adjustment. Under the Arbitration Agreement, the signing states had their ultimate liability ,if any, with respect to the 2003 NPM Adjustment reduced by 20%, and RJR Tobacco and the other PMs that placed their share of the disputed 2005 NPM Adjustment (discussed below) into the disputed payments account, without releasing or waiving any claims, authorized the release of those funds to the settling states. | |||||||||||||||||||||||||||||||||
The arbitration panel contemplated by the MSA and the Arbitration Agreement, referred to as the Arbitration Panel, was selected, and proceedings before the panel with respect to the 2003 NPM Adjustment claim began in July 2010. Following the completion of document and deposition discovery, on November 3, 2011, RJR Tobacco and the other PMs advised the Arbitration Panel that they were not contesting the “diligent enforcement” of 12 states and the four Pacific territories with a combined allocable share of less than 14%. The “diligent enforcement” of the remaining 33 settling states, the District of Columbia and Puerto Rico was contested and has been the subject of further proceedings. A common issues hearing was held in April 2012, and state specific evidentiary hearings with respect to the contested states were initiated. | |||||||||||||||||||||||||||||||||
As a result of the partial settlement of certain NPM Adjustment claims, as described in more detail below, as well as the earlier decisions not to contest the diligent enforcement of 13 states, two of which are participants in the partial settlement, and the four Pacific territories, only 15 contested settling states required state specific diligent enforcement rulings. State specific evidentiary hearings were completed as of the end of May 2013. | |||||||||||||||||||||||||||||||||
On September 11, 2013, the Arbitration Panel issued rulings with respect to the 15 remaining contested states. The Arbitration Panel ruled that six states (representing approximately 14.68% allocable share) — Indiana, Kentucky, Maryland, Missouri, New Mexico and Pennsylvania – had not diligently enforced their Qualifying Statutes in 2003. As a result of these rulings, RJR Tobacco believes it is entitled to the maximum remaining amount with respect to its 2003 NPM Adjustment claim. RJR Tobacco presently estimates this amount to be $266 million plus interest and earnings, after reducing the Independent Auditor’s revised calculations for RJR Tobacco’s share of the 2003 NPM Adjustment claim for the impact of the Arbitration Agreement and the partial settlement of certain NPM Adjustment claims described below. All six states that were found “non-diligent” by the Arbitration Panel have filed motions to vacate and/or modify the diligent enforcement rulings on the 2003 NPM Adjustment claim. In addition, uncertainty exists as to the timing and process for how RJR Tobacco will ultimately realize its share of the remaining 2003 NPM Adjustment claim. Due to the uncertainty over the final resolution of the 2003 NPM Adjustment claim, no amounts resulting from the ruling of the Arbitration Panel have been recognized in the consolidated financial statements as of December 31, 2013. | |||||||||||||||||||||||||||||||||
NPM Adjustment Claims for 2004-2012. From 2006 to 2008, proceedings (including significant factor arbitrations before an independent economic consulting firm) were initiated with respect to the NPM Adjustment for 2004, 2005 and 2006. Ultimately, the Adjustment Requirements were satisfied with respect to each of these NPM Adjustments. | |||||||||||||||||||||||||||||||||
In June 2009, RJR Tobacco, certain other PMs and the settling states entered into an agreement with respect to the 2007, 2008 and 2009 significant factor determinations. This agreement provided that the settling states would not contest that the disadvantages of the MSA were “a significant factor contributing to” the market share loss experienced by the PMs in those years. The stipulation pertaining to each of the three years covered by the agreement became effective in February of the year a final determination by the firm of independent economic consultants would otherwise have been expected (2010, 2011 and 2012, respectively), if the issue had been arbitrated on the merits. RJR Tobacco and the PMs paid a total amount of $5 million into the States’ Antitrust/Consumer Protection Tobacco Enforcement Fund established under Section VIII(c) of the MSA for each year covered by that agreement, with RJR Tobacco paying approximately 47% of such amounts. On January 9, 2012, a new agreement with respect to significant factor determinations pertaining to 2010, 2011 and 2012 was entered into on terms essentially identical to the earlier agreement. | |||||||||||||||||||||||||||||||||
Based on the payment calculations of the Independent Auditor and the agreement described above regarding the 2007, 2008 and 2009 significant factor determinations, the Adjustment Requirements have been satisfied with respect to the NPM Adjustments for 2007, 2008 and 2009. In addition, based on the payment calculations of the Independent Auditor and the agreement described above regarding the 2010, 2011 and 2012 significant factor determinations, the Adjustment Requirements have been satisfied with respect to the NPM Adjustment for 2010. | |||||||||||||||||||||||||||||||||
The approximate maximum principal amounts of RJR Tobacco’s share of the disputed NPM Adjustments for the years 2004 through 2010, as currently calculated by the Independent Auditor, are as follows (the amounts shown below do not include the interest or earnings thereon to which RJR Tobacco believes it would be entitled under the MSA and do not reflect any reduction as a result of the Term Sheet described below): | |||||||||||||||||||||||||||||||||
Year for which NPM Adjustment calculated | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||||||||||||
Year in which deduction for NPM Adjustment was taken | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | ||||||||||||||||||||||||||
RJR Tobacco’s approximate share of disputed NPM Adjustment (millions) | $ | 562 | $ | 445 | $ | 419 | $ | 435 | $ | 468 | $ | 469 | $ | 461 | |||||||||||||||||||
In addition to the NPM Adjustment claims described above, RJR Tobacco has filed dispute notices with respect to its 2011 and 2012 annual MSA payments relating to the NPM Adjustments potentially applicable to those years. The amount at issue for those two years is approximately $841 million in the aggregate. | |||||||||||||||||||||||||||||||||
Preliminary discussions are currently underway with the jurisdictions that have not joined the Term Sheet for the partial settlement of certain NPM Adjustment claims, described below, to initiate arbitration proceedings with respect to the 2004 NPM Adjustment. | |||||||||||||||||||||||||||||||||
Due to the uncertainty over the final resolution of the 2004-2012 NPM Adjustment claims asserted by RJR Tobacco, no assurances can be made related to the amounts, if any, that will be realized or any amounts (including interest) that will be owed, except as described below related to the partial settlement of certain NPM Adjustment claims. | |||||||||||||||||||||||||||||||||
Partial Settlement of Certain NPM Adjustment Claims. On November 14, 2012, RJR Tobacco, certain other PMs and certain settling states entered into a Term Sheet that sets forth terms on which accrued and potential NPM Adjustment claims for 2003 through 2014 could be resolved. The Term Sheet also sets forth a restructured NPM Adjustment process to be applied on a going-forward basis, starting with the 2013 volume year. The Term Sheet was provided to all of the MSA settling states for their review and consideration. The Term Sheet established December 14, 2012, as the deadline by which settling states had to indicate whether they wished to join the proposed settlement. The date the PMs and the joining settling jurisdictions would determine whether to proceed with the settlement was set as December 17, 2012. A total of 17 states, the District of Columbia and Puerto Rico, together representing just under 42% allocable share, determined to join the proposed settlement. RJR Tobacco and the other PMs indicated that they were prepared to go forward with the proposed settlement with that level of jurisdictional participation. | |||||||||||||||||||||||||||||||||
The Term Sheet provided that the Arbitration Panel currently in place to deal with the 2003 NPM Adjustment (and other NPM Adjustment-related matters) must review the proposed settlement and enter an appropriate order to confirm for the Independent Auditor that it should implement as necessary the terms of the settlement agreement. | |||||||||||||||||||||||||||||||||
On March 12, 2013, the Arbitration Panel entered a Stipulated Partial Settlement and Award, referred to as the Award, reflecting the financial terms of the Term Sheet. On March 29, 2013, the Independent Auditor issued a notice indicating that it intended to implement the financial provisions of the Term Sheet, and also issued various revised payment calculations pertaining to payment years 2009 through 2012 and final calculations pertaining to payment year 2013 that reflected implementation of the financial provisions of the Term Sheet. | |||||||||||||||||||||||||||||||||
On April 12, 2013, Oklahoma joined the Term Sheet, bringing to 20 the total number of jurisdictions that have joined the settlement, representing approximately 43% allocable share, and the Independent Auditor issued revised payment calculations reflecting the financial impact of Oklahoma’s decision to join the settlement. Subsequently, on May 24, 2013, Connecticut and South Carolina also joined the Term Sheet bringing to 22 the total number of jurisdictions that have joined the settlement, representing approximately 46% allocable share. The Independent Auditor has not yet issued revised payment calculations reflecting the financial impact of these states’ decisions to join the settlement. Efforts by two states, Colorado and Ohio, to obtain injunctions to prevent implementation of the Award were unsuccessful. | |||||||||||||||||||||||||||||||||
As of December 31, 2013, 13 non-settling states have motions pending, in their respective MSA courts, to vacate and/or modify the Award. | |||||||||||||||||||||||||||||||||
For additional information related to the Term Sheet and the Award, see “— Cost of Products Sold” in note 1. | |||||||||||||||||||||||||||||||||
Other NPM Matters. Separately, on August 19, 2011, Idaho sent a letter on behalf of itself and 31 other states, stating their intent to initiate arbitration with respect to whether amounts used to measure the domestic cigarette market and to calculate PM payment obligations under the MSA should be the adjusted gross or the net number of cigarettes on which federal excise tax (including arbitrios de cigarillos) is paid. The parties also agreed to arbitrate the Independent Auditor’s calculation of the volume adjustment with respect to the treatment of “roll your own,” referred to as RYO, tobacco. On January 21, 2013, the panel ruled that adjusted gross figures should be used in payment calculations and that, in the calculation of the volume adjustment, the Independent Auditor should use 0.0325 ounces of RYO tobacco to be the equivalent of one cigarette. | |||||||||||||||||||||||||||||||||
Antitrust Case | |||||||||||||||||||||||||||||||||
A number of tobacco wholesalers and consumers have sued U.S. cigarette manufacturers, including RJR Tobacco and B&W, in federal and state courts, alleging that cigarette manufacturers combined and conspired to set the price of cigarettes in violation of antitrust statutes and various state unfair business practices statutes. In these cases, the plaintiffs asked the court to certify the lawsuits as class actions on behalf of other persons who purchased cigarettes directly or indirectly from one or more of the defendants. As of December 31, 2013, all of the federal and state court cases on behalf of indirect purchasers had been dismissed. | |||||||||||||||||||||||||||||||||
In Smith v. Philip Morris Cos., Inc., a case filed in February 2000, and pending in District Court, Seward County, Kansas, the court granted class certification in November 2001, in an action brought against the major U.S. cigarette manufacturers, including RJR Tobacco and B&W, and the parent companies of the major U.S. cigarette manufacturers, including RJR, seeking to recover an unspecified amount in actual and punitive damages. The plaintiffs allege that the defendants participated in a conspiracy to fix or maintain the price of cigarettes sold in the United States. In an opinion dated March 23, 2012, the court granted summary judgment in favor of RJR Tobacco and B&W on the plaintiffs’ claims. On July 18, 2012, the plaintiffs filed a notice of appeal. A hearing on the appeal occurred on December 11, 2013, and the parties await a decision from the court. | |||||||||||||||||||||||||||||||||
Other Litigation and Developments | |||||||||||||||||||||||||||||||||
JTI Claims for Indemnification. By purchase agreement dated March 9, 1999, amended and restated as of May 11, 1999, referred to as the 1999 Purchase Agreement, RJR and RJR Tobacco sold the international tobacco business to JTI. Under the 1999 Purchase Agreement, RJR and RJR Tobacco retained certain liabilities relating to the international tobacco business sold to JTI. Under its reading of the indemnification provisions of the 1999 Purchase Agreement, JTI has requested indemnification for damages allegedly arising out of these retained liabilities. As previously reported, a number of the indemnification claims between the parties relating to the activities of Northern Brands in Canada have been resolved. The other matters for which JTI has requested indemnification for damages under the indemnification provisions of the 1999 Purchase Agreement are described below: | |||||||||||||||||||||||||||||||||
• | In a letter dated March 31, 2006, counsel for JTI stated that JTI would be seeking indemnification under the 1999 Purchase Agreement for any damages it may incur or may have incurred arising out of a Southern District of New York grand jury investigation, a now-terminated Eastern District of North Carolina grand jury investigation, and various actions filed by the European Community and others in the U.S. District Court for the Eastern District of New York, referred to as the EDNY, against RJR Tobacco and certain of its affiliates on November 3, 2000, August 6, 2001, and (as discussed in greater detail below) October 30, 2002, and against JTI on January 11, 2002. | ||||||||||||||||||||||||||||||||
• | JTI also has sought indemnification relating to a Statement of Claim filed on April 23, 2010, against JTI Macdonald Corp., referred to as JTI-MC, by the Ontario Flue-Cured Tobacco Growers’ Marketing Board, referred to as the Board, Andy J. Jacko, Brian Baswick, Ron Kichler, and Aprad Dobrenty, proceeding on their own behalf and on behalf of a putative class of Ontario tobacco producers that sold tobacco to JTI-MC during the period between January 1, 1986, and December 31, 1996, referred to as the Class Period, through the Board pursuant to certain agreements. The Statement of Claim seeks recovery for damages allegedly incurred by the class representatives and the putative class for tobacco sales during the Class Period made at the contract price for duty free or export cigarettes with respect to cigarettes that, rather than being sold duty free or for export, purportedly were sold in Canada, which allegedly breached one or more of a series of contracts dated between June 4, 1986, and July 3, 1996. A motion to dismiss has been filed. | ||||||||||||||||||||||||||||||||
• | Finally, JTI has advised RJR and RJR Tobacco of its view that, under the terms of the 1999 Purchase Agreement, RJR and RJR Tobacco are liable for a roughly $1.7 million judgment entered in 1998, plus interest and costs, in an action filed in Brazil by Lutz Hanneman, a former employee of a former RJR Tobacco subsidiary. RJR and RJR Tobacco deny that they are liable for this judgment under the terms of the 1999 Purchase Agreement. | ||||||||||||||||||||||||||||||||
Although RJR and RJR Tobacco recognize that, under certain circumstances, they may have these and other unresolved indemnification obligations to JTI under the 1999 Purchase Agreement, RJR and RJR Tobacco disagree with JTI as to (1) what circumstances relating to any such matters may give rise to indemnification obligations by RJR and RJR Tobacco, and (2) the nature and extent of any such obligation. RJR and RJR Tobacco have conveyed their position to JTI, and the parties have agreed to resolve their differences at a later time. | |||||||||||||||||||||||||||||||||
European Community. On October 30, 2002, the European Community and ten of its member states filed a complaint in the EDNY against RJR, RJR Tobacco and several currently and formerly related companies. The complaint contains many of the same or similar allegations found in an earlier complaint, now dismissed, filed in August 2001 and also alleges that the defendants, together with certain identified and unidentified persons, engaged in money laundering and other conduct violating civil RICO and a variety of common laws. The complaint also alleges that the defendants manufactured cigarettes that were eventually sold in Iraq in violation of U.S. sanctions. The plaintiffs seek compensatory, punitive and treble damages among other types of relief. This matter had been stayed and largely inactive until November 24, 2009, when, with the court’s permission, the European Community and member states filed and served a second amended complaint. The second amended complaint added 16 member states as plaintiffs and RAI, RJR Tobacco and R. J. Reynolds Global Products Inc., referred to as GPI, as defendants. The allegations contained in the second amended complaint are in most respects either identical or similar to those found in the prior complaint, but now add new allegations primarily regarding the activities of RAI, RJR Tobacco and GPI following the B&W business combination. Pursuant to a stipulation and order, the defendants filed a motion to dismiss the plaintiffs’ second amended complaint on February 15, 2010. Ruling on part of the defendants’ motion to dismiss, on March 8, 2011, the court dismissed the plaintiffs’ RICO claims, and reserved decision as to dismissal of the plaintiffs’ state-law claims. Thereafter, on May 13, 2011, the court granted the remaining portion of the defendants’ motion and dismissed the plaintiffs’ state-law claims based on the court’s lack of subject matter jurisdiction. On May 16, 2011, the clerk of court entered a judgment dismissing the action in its entirety. On June 10, 2011, the plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the Second Circuit, appealing from the May 16, 2011, judgment, as well as the March 8, 2011, and May 13, 2011, orders that respectively resulted in the dismissal of their RICO and state-law claims. Oral argument occurred on February 24, 2012. A decision is pending. | |||||||||||||||||||||||||||||||||
FDA Litigation. On February 25, 2011, RJR Tobacco, Lorillard, Inc., and Lorillard Tobacco Company jointly filed a lawsuit, Lorillard, Inc. v. U.S. Food and Drug Administration, in the U.S. District Court for the District of Columbia, challenging the composition of TPSAC which had been established by the FDA under the FDA Tobacco Act. The complaint alleges that certain members of the TPSAC and certain members of its Constituents Subcommittee have financial and appearance conflicts of interest that are disqualifying under federal ethics law and regulations, and that the TPSAC is not “fairly balanced,” as required by the Federal Advisory Committee Act, referred to as FACA. In March 2011, the plaintiffs filed an amended complaint, which added an additional claim, based on a nonpublic meeting of members of the TPSAC, in violation of the FACA. The court granted the plaintiffs’ unopposed motion to file a second amended complaint adding a count addressing the FDA’s refusal to produce all documents generated by the TPSAC and its subcommittee in preparation of the menthol report. On August 1, 2012, the court denied the FDA’s motion to dismiss. The FDA filed its answer to the complaint on October 12, 2012. The parties participated in a status conference on April 22, 2013, with Lorillard and RJR Tobacco filing an amended complaint the same day. Briefing for summary judgment motions was completed on September 20, 2013. A decision is pending. | |||||||||||||||||||||||||||||||||
For a detailed description of the FDA Tobacco Act, see “— Governmental Activity” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Part I, Item 2. | |||||||||||||||||||||||||||||||||
Other Matters. RJR Tobacco and others brought suit against the City of Providence, Rhode Island challenging ordinances that prohibit the acceptance of tobacco product coupons, offering of certain pricing discounts for tobacco products, and certain flavored tobacco products in Providence, Rhode Island. The case, National Association of Tobacco Outlets, Inc. v. City of Providence, was filed in the U.S. District Court for the District of Rhode Island on February 13, 2012. The parties filed cross motions for summary judgment, and on December 11, 2012, the court granted judgment in favor of the defendants, except that the court modified the definition of a flavored tobacco product consistent with plaintiffs’ argument. On September 30, 2013, the U.S. Court of Appeals for the First Circuit affirmed the judgment of the district court. | |||||||||||||||||||||||||||||||||
In Richard Villarreal v. R. J. Reynolds Tobacco Co., a case filed June 6, 2012, the plaintiff filed a collective action complaint against R. J. Reynolds Tobacco Co., Pinstripe, Inc., and CareerBuilder, LLC, in the U.S. District Court, Northern District of Georgia. The complaint alleges unlawful discrimination with respect to the hiring of individuals to fill entry-level regional sales positions in violation of the Age Discrimination in Employment Act (29 U.S.C. §621, et seq.). Although the complaint is currently a single plaintiff case, the complaint seeks collective/class action status. RJR Tobacco’s and Pinstripe’s motion for partial dismissal was granted on March 6, 2013, thereby eliminating the plaintiff’s disparate impact claim and limiting the relevant time period for both the plaintiff’s claims and potential class claims. RJR Tobacco and Pinstripe filed answers to the remaining disparate treatment claim on March 20, 2013. Defendant CareerBuilder was dismissed with prejudice on September 25, 2012. The plaintiff filed a motion to amend the complaint on March 28, 2013, which was denied by the court on November 26, 2013. Discovery is currently proceeding. The plaintiff’s Fed.R.Civ.P. 54(b) motion to certify for immediate appeal trial court’s prior dismissal of plaintiff’s disparate impact and time-barred claims is pending. | |||||||||||||||||||||||||||||||||
Smokeless Tobacco Litigation | |||||||||||||||||||||||||||||||||
As of December 31, 2013, American Snuff Co. was a defendant in six actions brought by individual plaintiffs in West Virginia state court seeking damages in connection with personal injuries allegedly sustained as a result of the usage of American Snuff Co.’s smokeless tobacco products. These actions are pending before the same West Virginia court as the 564 consolidated individual smoker cases against RJR Tobacco, B&W, as RJR Tobacco’s indemnitee, or both. Pursuant to the court’s December 3, 2001, order, the smokeless tobacco claims and defendants remain severed. | |||||||||||||||||||||||||||||||||
Pursuant to a second amended complaint filed in September 2006, American Snuff Co. is a defendant in Vassallo v. United States Tobacco Company, pending in the Eleventh Circuit Court in Miami-Dade County, Florida. The individual plaintiff alleges that he sustained personal injuries, including addiction and cancer, as a result of his use of smokeless tobacco products, allegedly including products manufactured by American Snuff Co. The plaintiff seeks unspecified compensatory and consequential damages in an amount greater than $15,000. There is no punitive damages demand in this case, though the plaintiff retains the right to seek leave of court to add such a demand later. Discovery is underway. | |||||||||||||||||||||||||||||||||
Tobacco Buyout Legislation | |||||||||||||||||||||||||||||||||
In 2004, legislation was passed eliminating the U.S. Government’s tobacco production controls and price support program. The buyout of tobacco quota holders provided for in the Fair and Equitable Tobacco Reform Act, referred to as FETRA, is funded by a direct quarterly assessment on every tobacco product manufacturer and importer, on a market-share basis measured on volume to which federal excise tax is applied. The aggregate cost of the buyout to the industry is approximately $9.9 billion, including approximately $9.6 billion payable to quota tobacco holders and growers through industry assessments over ten years, into 2014, and approximately $290 million for the liquidation of quota tobacco stock. RAI’s operating subsidiaries’ annual expense under FETRA for 2014 is estimated to be approximately $165 million. | |||||||||||||||||||||||||||||||||
RAI’s operating subsidiaries recorded the FETRA assessment on a quarterly basis as cost of goods sold. RAI’s operating subsidiaries estimate that their overall share of the buyout will approximate $2.5 billion prior to the deduction of permitted offsets under the MSA. | |||||||||||||||||||||||||||||||||
ERISA Litigation | |||||||||||||||||||||||||||||||||
In May 2002, in Tatum v. The R.J.R. Pension Investment Committee of the R. J. Reynolds Tobacco Company Capital Investment Plan, an employee of RJR Tobacco filed a class-action suit in the U.S. District Court for the Middle District of North Carolina, alleging that the defendants, RJR, RJR Tobacco, the RJR Employee Benefits Committee and the RJR Pension Investment Committee, violated the Employee Retirement Income Security Act of 1974, referred to as ERISA. The actions about which the plaintiff complains stem from a decision made in 1999 by RJR Nabisco Holdings Corp., subsequently renamed Nabisco Group Holdings Corp., referred to as NGH, to spin off RJR, thereby separating NGH’s tobacco business and food business. As part of the spin-off, the 401(k) plan for the previously related entities had to be divided into two separate plans for the now separate tobacco and food businesses. The plaintiff contends that the defendants breached their fiduciary duties to participants of the RJR 401(k) plan when the defendants removed the stock funds of the companies involved in the food business, NGH and Nabisco Holdings Corp., referred to as Nabisco, as investment options from the RJR 401(k) plan approximately six months after the spin-off. The plaintiff asserts that a November 1999 amendment (the “1999 Amendment”) that eliminated the NGH and Nabisco funds from the RJR 401(k) plan on January 31, 2000, contained sufficient discretion for the defendants to have retained the NGH and Nabisco funds after January 31, 2000, and that the failure to exercise such discretion was a breach of fiduciary duty. In his complaint, the plaintiff requests, among other things, that the court require the defendants to pay as damages to the RJR 401(k) plan an amount equal to the subsequent appreciation that was purportedly lost as a result of the liquidation of the NGH and Nabisco funds. | |||||||||||||||||||||||||||||||||
In July 2002, the defendants filed a motion to dismiss, which the court granted in December 2003. In December 2004, the U.S. Court of Appeals for the Fourth Circuit reversed the dismissal of the complaint, holding that the 1999 Amendment did contain sufficient discretion for the defendants to have retained the NGH and Nabisco funds as of February 1, 2000, and remanded the case for further proceedings. The court granted the plaintiff leave to file an amended complaint and denied all pending motions as moot. In April 2007, the defendants moved to dismiss the amended complaint. The court granted the motion in part and denied it in part, dismissing all claims against the RJR Employee Benefits Committee and the RJR Pension Investment Committee. The remaining defendants, RJR and RJR Tobacco, filed their answer and affirmative defenses in June 2007. The plaintiff filed a motion for class certification, which the court granted in September 2008. The district court ordered mediation, but no resolution of the case was reached. In September 2008, each of the plaintiffs and the defendants filed motions for summary judgment, and in January 2009, the defendants filed a motion to decertify the class. A second mediation occurred in June 2009, but again no resolution of the case was reached. The district court overruled the motions for summary judgment and the motion to decertify the class. | |||||||||||||||||||||||||||||||||
A non-jury trial was held in January and February 2010. During closing arguments, the plaintiff argued for the first time that certain facts arising at trial showed that the 1999 Amendment was not validly adopted, and then moved to amend his complaint to conform to this evidence at trial. On June 1, 2011, the court granted the plaintiff’s motion to amend his complaint and found that the 1999 Amendment was invalid. | |||||||||||||||||||||||||||||||||
The parties filed their findings of fact and conclusions of law on February 4, 2011. On February 25, 2013, the district court dismissed the case with prejudice. On March 8, 2013, the plaintiffs filed a notice of appeal. Oral argument has been scheduled for March 18, 2014. | |||||||||||||||||||||||||||||||||
Environmental Matters | |||||||||||||||||||||||||||||||||
RAI and its subsidiaries are subject to federal, state and local environmental laws and regulations concerning the discharge, storage, handling and disposal of hazardous or toxic substances. Such laws and regulations provide for significant fines, penalties and liabilities, sometimes without regard to whether the owner or operator of the property knew of, or was responsible for, the release or presence of hazardous or toxic substances. In addition, third parties may make claims against owners or operators of properties for personal injuries and property damage associated with releases of hazardous or toxic substances. In the past, RJR Tobacco has been named a potentially responsible party with third parties under the Comprehensive Environmental Response, Compensation and Liability Act with respect to several superfund sites. RAI and its subsidiaries are not aware of any current environmental matters that are expected to have a material adverse effect on the business, results of operations or financial position of RAI or its subsidiaries. | |||||||||||||||||||||||||||||||||
RAI and its operating subsidiaries believe that climate change is an environmental issue primarily driven by carbon dioxide emissions from the use of energy. RAI’s operating subsidiaries are working to reduce carbon dioxide emissions by minimizing the use of energy where cost effective, minimizing waste to landfills and increasing recycling. Climate change is not viewed by RAI’s operating subsidiaries as a significant direct economic risk to their businesses, but rather an indirect risk involving the potential for a longer-term general increase in the cost of doing business. Regulatory changes are difficult to predict, but the current regulatory risks to the business of RAI’s operating subsidiaries with respect to climate change are relatively low. Financial impacts will be driven more by the cost of natural gas and electricity. Efforts are made to mitigate the effect of increases in fuel costs directly impacting RAI’s operating subsidiaries by evaluating natural gas usage and market conditions, and occasionally purchasing forward contracts, limited to a three-year period, for natural gas. In addition, RAI’s operating subsidiaries are constantly evaluating electrical energy conservation measures and energy efficient equipment to mitigate impacts of increases in electrical energy costs. | |||||||||||||||||||||||||||||||||
Regulations promulgated by the EPA and other governmental agencies under various statutes have resulted in, and likely will continue to result in, substantial expenditures for pollution control, waste treatment, facility modification and similar activities. RAI and its subsidiaries are engaged in a continuing program to comply with federal, state and local environmental laws and regulations, and dependent upon the probability of occurrence and reasonable estimation of cost, accrue or disclose any material liability. | |||||||||||||||||||||||||||||||||
Although it is difficult to reasonably estimate the portion of capital expenditures or other costs attributable to compliance with environmental laws and regulations, RAI does not expect such expenditures or other costs to have a material adverse effect on the business, results of operations, cash flows or financial position of RAI or its subsidiaries. | |||||||||||||||||||||||||||||||||
Other Contingencies | |||||||||||||||||||||||||||||||||
In connection with the sale of the international tobacco business to JTI, pursuant to the 1999 Purchase Agreement, RJR and RJR Tobacco agreed to indemnify JTI against: | |||||||||||||||||||||||||||||||||
• | any liabilities, costs and expenses arising out of the imposition or assessment of any tax with respect to the international tobacco business arising prior to the sale, other than as reflected on the closing balance sheet; | ||||||||||||||||||||||||||||||||
• | any liabilities, costs and expenses that JTI or any of its affiliates, including the acquired entities, may incur after the sale with respect to any of RJR’s or RJR Tobacco’s employee benefit and welfare plans; and | ||||||||||||||||||||||||||||||||
• | any liabilities, costs and expenses incurred by JTI or any of its affiliates arising out of certain activities of Northern Brands. | ||||||||||||||||||||||||||||||||
As described above in “— Litigation Affecting the Cigarette Industry — Other Litigation and Developments — JTI Claims for Indemnification,” RJR Tobacco has received claims for indemnification from JTI, and several of these have been resolved. Although RJR and RJR Tobacco recognize that, under certain circumstances, they may have other unresolved indemnification obligations to JTI under the 1999 Purchase Agreement, RJR and RJR Tobacco disagree what circumstances described in such claims give rise to any indemnification obligations by RJR and RJR Tobacco and the nature and extent of any such obligation. RJR and RJR Tobacco have conveyed their position to JTI, and the parties have agreed to resolve their differences at a later date. | |||||||||||||||||||||||||||||||||
RJR Tobacco, SFNTC and American Snuff Co. have entered into agreements to indemnify certain distributors and retailers from liability and related defense costs arising out of the sale or distribution of their products. Additionally, SFNTC has entered into an agreement to indemnify a supplier from liability and related defense costs arising out of the sale or use of SFNTC’s products. The cost has been, and is expected to be, insignificant. RJR Tobacco, SFNTC and American Snuff Co. believe that the indemnified claims are substantially similar in nature and extent to the claims that they are already exposed to by virtue of their having manufactured those products. | |||||||||||||||||||||||||||||||||
Except as otherwise noted above, RAI is not able to estimate the maximum potential amount of future payments, if any, related to these indemnification obligations. | |||||||||||||||||||||||||||||||||
Lease Commitments | |||||||||||||||||||||||||||||||||
RAI has operating lease agreements that are primarily for office space, automobiles, warehouse space and computer equipment. The majority of these leases expire within the next five years and some contain renewal or purchase options and escalation clauses or restrictions relating to subleases. Total rent expense was $24 million, $19 million and $18 million for 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||
Future minimum lease payments as of December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||
Noncancellable | |||||||||||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||||||||||
2014 | $ | 22 | |||||||||||||||||||||||||||||||
2015 | 17 | ||||||||||||||||||||||||||||||||
2016 | 14 | ||||||||||||||||||||||||||||||||
2017 | 9 | ||||||||||||||||||||||||||||||||
2018 | 5 | ||||||||||||||||||||||||||||||||
Thereafter | 1 | ||||||||||||||||||||||||||||||||
Total | $ | 68 | |||||||||||||||||||||||||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||||||
Note 12 — Shareholders’ Equity | |||||||||||||||||||||
RAI’s authorized capital stock at December 31, 2013 and 2012, consisted of 100 million shares of preferred stock, par value $.01 per share, and 1.6 billion shares of common stock, par value $.0001 per share. Four million shares of the preferred stock are designated as Series A Junior Participating Preferred Stock, none of which is issued or outstanding. The Series A Junior Participating Preferred Stock will rank junior as to dividends and upon liquidation to all other series of RAI preferred stock, unless specified otherwise. Also, of the preferred stock, one million shares are designated as Series B Preferred Stock, all of which are issued and outstanding. The Series B Preferred Stock ranks senior upon liquidation, but not with respect to dividends, to all other series of RAI capital stock, unless specified otherwise. As a part of the B&W business combination, RJR is the holder of the outstanding Series B Preferred Stock. In each of 2013, 2012 and 2011, RAI declared $43 million in dividends to RJR with respect to the Series B Preferred Stock. | |||||||||||||||||||||
In 2004, RAI’s board of directors adopted a shareholder rights plan, pursuant to which RAI declared a dividend of one preferred stock purchase right on each share of RAI common stock outstanding on July 30, 2004. The board also authorized the issuance of rights for each share of RAI common stock issued after the dividend record date, until the occurrence of certain specified events. By virtue of RAI’s two-for-one stock split in both 2006 and 2010, the number of rights associated with each share of RAI common stock is .25. The rights will expire on July 30, 2014, unless earlier redeemed, exercised or exchanged under the terms of the rights plan. | |||||||||||||||||||||
The rights are not exercisable until a distribution date that is the earlier of: | |||||||||||||||||||||
• | ten days following an announcement that a person or group, other than BAT and its subsidiaries, except in certain circumstances, has acquired beneficial ownership of at least 15% of RAI common stock, and | ||||||||||||||||||||
• | ten business days, or such later date as may be determined by the board, following the announcement of a tender offer which would result in a person becoming an acquiring person. | ||||||||||||||||||||
If the acquiring person or tender offeror is BAT or one of its subsidiaries, then the foregoing 15% threshold is subject to adjustment. The rights are initially exercisable for 1/100th of a share of RAI’s Series A Junior Participating Preferred Stock at a purchase price of $130, subject to adjustment. Each fractional share of such preferred stock would give the holder approximately the same dividend, voting and liquidation rights as does one share of RAI common stock. Until the distribution date, the rights will be evidenced by RAI common stock certificates and trade with such shares. Upon the occurrence of certain events after the distribution date, holders of rights, other than the acquiring person, will be entitled to receive upon exercise of the right, in lieu of shares of preferred stock, RAI common stock or common stock of the acquiring corporation having in either case a market value of two times the exercise price of the right. | |||||||||||||||||||||
RAI’s board of directors declared the following quarterly cash dividends per share of RAI common stock in 2013, 2012 and 2011: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
First | $ | 0.59 | $ | 0.56 | $ | 0.53 | |||||||||||||||
Second | $ | 0.63 | $ | 0.59 | $ | 0.53 | |||||||||||||||
Third | $ | 0.63 | $ | 0.59 | $ | 0.53 | |||||||||||||||
Fourth | $ | 0.63 | $ | 0.59 | $ | 0.56 | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
The components of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2013, were as follows: | |||||||||||||||||||||
Retirement | Unrealized Gain | Realized Loss | Cumulative | Total | |||||||||||||||||
Benefits | (Loss) on Long- | on Hedging | Translation | ||||||||||||||||||
Term Investments | Instruments | Adjustment and Other | |||||||||||||||||||
Balance at December 31, 2012 | $ | (265 | ) | $ | (21 | ) | $ | (14 | ) | $ | (11 | ) | $ | (311 | ) | ||||||
Other comprehensive income before reclassifications | 271 | 5 | — | 1 | 277 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (23 | ) | — | 1 | — | (22 | ) | ||||||||||||||
Net current-period other comprehensive income | 248 | 5 | 1 | 1 | 255 | ||||||||||||||||
Balance at December 31, 2013 | $ | (17 | ) | $ | (16 | ) | $ | (13 | ) | $ | (10 | ) | $ | (56 | ) | ||||||
Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidated statement of income for the year ended December 31, 2013, were as follows: | |||||||||||||||||||||
Components | Amounts | Affected Line Item | |||||||||||||||||||
Reclassified | |||||||||||||||||||||
Defined benefit pension and | |||||||||||||||||||||
postretirement plans: | |||||||||||||||||||||
Amortization of prior service costs | $ | (21 | ) | Cost of products sold | |||||||||||||||||
Amortization of prior service costs | (18 | ) | Selling, general and administrative expenses | ||||||||||||||||||
(39 | ) | ||||||||||||||||||||
Deferred taxes | 16 | Provision for income taxes | |||||||||||||||||||
Net of tax | $ | (23 | ) | ||||||||||||||||||
Loss on hedging instruments: | |||||||||||||||||||||
Amortization of realized loss | $ | 2 | Interest and debt expense | ||||||||||||||||||
Deferred taxes | (1 | ) | Provision for income taxes | ||||||||||||||||||
Net of tax | $ | 1 | |||||||||||||||||||
Total reclassifications | $ | (22 | ) | Net income | |||||||||||||||||
Share Repurchases and Other | |||||||||||||||||||||
On November 14, 2011, the board of directors of RAI authorized the repurchase, from time to time on or before mid-2014, of up to $2.5 billion of outstanding shares of RAI common stock in open-market or privately negotiated transactions. The repurchases are subject to prevailing market and business conditions, and the program may be terminated or suspended at any time. In connection with the share repurchase program, RAI and B&W entered into an agreement, pursuant to which B&W has agreed to participate in the repurchase program on a basis approximately proportionate with B&W’s 42% ownership of RAI’s common stock. RAI, B&W and BAT also entered into Amendment No. 3 to the governance agreement, pursuant to which RAI has agreed that, so long as B&W’s ownership interest has not dropped below 25%, if RAI issues shares of its common stock or any other RAI equity security to certain designated persons, including its directors, officers or employees, then RAI will repurchase a number of shares of outstanding RAI common stock so that the number of outstanding shares of RAI common stock are not increased, and B&W’s ownership interest is not decreased, by such issuance after taking into account such repurchase. | |||||||||||||||||||||
During 2013, RAI repurchased and cancelled 15,917,174 shares for $750 million, resulting in total repurchases of 47,638,044 shares for $2.1 billion as of December 31, 2013. Due to RAI’s incorporation in North Carolina, which does not recognize treasury shares, the shares are cancelled at the time of repurchase. | |||||||||||||||||||||
The RAI Long-Term Incentive Plan, referred to as the LTIP, a plan which expired in 2009, was replaced by the Reynolds American Inc. 2009 Omnibus Incentive Plan, referred to as the Omnibus Plan, which was approved by the shareholders of RAI in 2009. | |||||||||||||||||||||
Restricted stock units granted in March 2010 under the Omnibus Plan vested in March 2013 and were settled with the issuance of 1,572,389 shares of RAI common stock. In addition, during the year ended December 31, 2013, at a cost of $25 million, RAI purchased 574,383 shares that were forfeited and cancelled with respect to tax liabilities associated with restricted stock units vesting under the Omnibus Plan. | |||||||||||||||||||||
Changes in RAI common stock outstanding were as follows: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Shares outstanding at beginning of year | 552,940,767 | 576,135,199 | 583,043,872 | ||||||||||||||||||
LTIP shares forfeited | — | — | (433 | ) | |||||||||||||||||
LTIP tax shares repurchased and cancelled | — | (921,646 | ) | (162,257 | ) | ||||||||||||||||
LTIP shares issued from vesting of restricted stock units | — | 2,640,408 | — | ||||||||||||||||||
Omnibus Plan tax shares repurchased and cancelled | (574,383 | ) | — | — | |||||||||||||||||
Omnibus Plan shares issued from vesting of restricted stock units | 1,572,389 | — | — | ||||||||||||||||||
Shares repurchased and cancelled | (15,917,174 | ) | (24,944,233 | ) | (6,776,637 | ) | |||||||||||||||
Equity incentive award plan shares issued | 31,425 | 31,039 | 30,654 | ||||||||||||||||||
Shares outstanding at end of year | 538,053,024 | 552,940,767 | 576,135,199 | ||||||||||||||||||
Stock_Plans
Stock Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock Plans | ' | ||||||||||||||||
Note 13 — Stock Plans | |||||||||||||||||
As of December 31, 2013, RAI had two stock plans, the Equity Incentive Award Plan for Directors of RAI, referred to as the EIAP, and the Omnibus Plan. | |||||||||||||||||
Under the EIAP, RAI currently provides grants of deferred stock units to eligible directors on a quarterly and annual basis, with the annual grant being made generally on the date of RAI’s annual shareholders’ meeting. Prior to September 13, 2012, upon election to RAI’s board of directors, an eligible director received an initial grant of 3,500 deferred stock units under the EIAP. After September 13, 2012, grants are no longer made to directors upon their initial election to the board of directors, but eligible directors initially elected to RAI’s board of directors after such date on a date other than the annual meeting date, and who therefore are not eligible to receive the annual stock award for such year, now receive a pro rata portion of the annual award upon election. Directors may elect to receive shares of common stock in lieu of their initial and annual grants of deferred stock units. A maximum of 2,000,000 shares of common stock may be issued under this plan, of which 1,036,806 shares were available for grant as of December 31, 2013. Deferred stock units granted under the EIAP have a value equal to, and bear dividend equivalents at the same rate as, one share of RAI common stock, and have no voting rights. The dividends are paid as additional units in an amount equal to the number of shares of RAI common stock that could be purchased with the dividends on the date of payment. Generally, distribution of a director’s deferred stock units will be made on January 2 following his or her last year of service on the board; however, for all grants made under the EIAP after December 31, 2007, a director may elect to receive his or her deferred stock units on the later of January 2 of a specified year or January 2 following his or her last year of service on the board. At the election of a director, distribution may be made in one lump sum or in up to ten annual installments. A director is paid in cash for the units granted quarterly and in common stock for the units granted initially and annually, unless the director elects to receive cash for the initial and annual grants. Cash payments are based on the average closing price of RAI common stock during December of the year preceding payment. Compensation expense related to the EIAP was $7 million, $4 million and $5 million during 2013, 2012 and 2011, respectively. | |||||||||||||||||
Awards to key employees under the Omnibus Plan may be in the form of cash awards, incentive or non-incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units or other awards. Subject to adjustments as set forth in the Omnibus Plan, the number of shares of RAI common stock that may be issued with respect to awards under the Omnibus Plan will not exceed 38,000,000 shares in the aggregate. Upon retirement, a holder’s grant under the Omnibus Plan generally vests on a pro rata basis for the portion of the vesting service period that has elapsed, thereby maintaining an appropriate approximation of forfeitures related to retirement. | |||||||||||||||||
Information regarding restricted stock unit awards outstanding as of December 31, 2013, under the Omnibus Plan was as follows: | |||||||||||||||||
Grant | Number | Grant Price | Vesting Date | Number | |||||||||||||
Year | of | of | |||||||||||||||
Shares | Shares | ||||||||||||||||
Granted | Cancelled | ||||||||||||||||
2011 | 1,561,331 | $ | 33.99 | March 1, 2014 | 174,074 | ||||||||||||
2011 | 3,874 | $ | 39.59 | 1-Mar-14 | 3,874 | ||||||||||||
2012 | 1,222,534 | $ | 42.16 | 1-Mar-15 | 108,128 | ||||||||||||
2013 | 1,112,436 | $ | 43.36 | 1-Mar-16 | 19,505 | ||||||||||||
The grant date fair value was based on the per share closing price of RAI common stock on the date of grant. The actual number of shares granted is fixed. The grants are accounted for as equity-based and compensation expense includes the vesting period elapsed. There were no shares issued during 2013 with respect to awards outstanding as of December 31, 2013. | |||||||||||||||||
The restricted stock unit grants will be settled exclusively in shares of RAI common stock. Upon settlement, each grantee will receive a number of shares of RAI’s common stock equal to the product of the number of vested units and a percentage up to 150% based on the average RAI annual incentive award plan score over the three-year period ending on December 31 of the year prior to the vesting date. | |||||||||||||||||
Dividends paid on shares of RAI common stock will accumulate on the restricted stock units and be paid to the grantee on the vesting date. If RAI fails to pay its shareholders cumulative dividends of at least $6.36 per share for the three-year performance period ending December 31, 2013 (in the case of the 2011 restricted stock unit grants), $6.72 per share for the three-year performance period ending December 31, 2014 (in the case of the 2012 restricted stock unit grants), or $7.08 per share for the three-year performance period ending December 31, 2015 (in the case of the 2013 restricted stock unit grants), then each award will be reduced by an amount equal to three times the percentage of the dividend underpayment, up to a maximum reduction of 50%. Dividends accrued on the 2011 grants are included in other current liabilities and the dividends accrued on the 2012 and 2013 grants are included in other noncurrent liabilities in the consolidated balance sheet as of December 31, 2013. | |||||||||||||||||
The changes in RAI restricted stock units during 2013 were as follows: | |||||||||||||||||
Stock Units | Weighted Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at beginning of year | 4,131,852 | $ | 33.36 | ||||||||||||||
Granted | 1,112,436 | 43.36 | |||||||||||||||
Forfeited | (45,417 | ) | 40.91 | ||||||||||||||
Vested | (1,604,277 | ) | 26.63 | ||||||||||||||
Outstanding at end of year | 3,594,594 | 39.37 | |||||||||||||||
Total compensation expense related to stock-based compensation and the related tax benefits recognized in selling, general and administrative expenses in the consolidated statements of income were as follows: | |||||||||||||||||
Grant/Type | 2013 | 2012 | 2011 | ||||||||||||||
2008 restricted stock | $ | — | $ | — | $ | 1 | |||||||||||
2009 restricted stock units | — | 2 | 12 | ||||||||||||||
2010 restricted stock units | 2 | 13 | 12 | ||||||||||||||
2011 restricted stock units | 20 | 14 | 13 | ||||||||||||||
2012 restricted stock units | 18 | 13 | — | ||||||||||||||
2013 restricted stock units | 15 | — | — | ||||||||||||||
Total compensation expense | $ | 55 | $ | 42 | $ | 38 | |||||||||||
Total related tax benefits | $ | 19 | $ | 15 | $ | 13 | |||||||||||
The amounts related to the unvested Omnibus Plan restricted stock unit grants were included in the consolidated balance sheets as of December 31 as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Other current liabilities | $ | 10 | $ | 10 | |||||||||||||
Other noncurrent liabilities | 9 | 8 | |||||||||||||||
Paid-in capital | 94 | 80 | |||||||||||||||
As of December 31, 2013, there were $55 million of unrecognized compensation costs related to restricted stock units, calculated at the grant-date price, which are expected to be recognized over a weighted-average period of 1.79 years. The excess tax benefits related to stock-based compensation were $14 million, $39 million and $1 million in 2013, 2012 and 2011, respectively. | |||||||||||||||||
RAI has a policy of issuing new shares of common stock to satisfy share option exercises. There was no stock option activity during 2013. The aggregate intrinsic value of fully vested outstanding and exercisable options at December 31, 2011, was $1 million. The changes in RAI’s stock options during 2012 and 2011 were as follows: | |||||||||||||||||
2012 | 2011 | ||||||||||||||||
Options | Weighted | Options | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Exercise | Exercise | ||||||||||||||||
Price | Price | ||||||||||||||||
Outstanding at beginning of year | 40,000 | $ | 17.45 | 40,000 | $ | 17.45 | |||||||||||
Expired | (40,000 | ) | 17.45 | — | — | ||||||||||||
Exercised | — | — | — | — | |||||||||||||
Outstanding at end of year | — | — | 40,000 | 17.45 | |||||||||||||
Exercisable at end of year | — | — | 40,000 | 17.45 | |||||||||||||
Equity compensation plan information as of December 31, 2013, was as follows: | |||||||||||||||||
Plan Category | Number of Securities | Weighted Average | Number of Securities | ||||||||||||||
to be Issued Upon | Exercise Price of | Remaining Available for | |||||||||||||||
Exercise of | Outstanding | Future Issuance under | |||||||||||||||
Outstanding Options, | Options, Warrants | Equity Compensation | |||||||||||||||
Warrants and Rights | and Rights | Plans (Excluding | |||||||||||||||
Securities Reflected in | |||||||||||||||||
Column (a)) | |||||||||||||||||
(a) | (b) | (c) | |||||||||||||||
Equity Compensation Plans Approved by Security Holders | 5,391,891 | (2) | $ | — | 31,610,104 | ||||||||||||
Equity Compensation Plans Not Approved by Security Holders(1) | — | — | 1,036,806 | ||||||||||||||
Total | 5,391,891 | (2) | — | 32,646,910 | |||||||||||||
-1 | The EIAP was approved by RJR’s sole shareholder, NGH, prior to RJR’s spin-off on June 15, 1999. | ||||||||||||||||
(2) | Consists of restricted stock units. These restricted stock units represent the maximum number, 150%, of shares to be awarded under the best-case targets that may not be achieved, and accordingly, may overstate expected dilution. |
Retirement_Benefits
Retirement Benefits | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Retirement Benefits | ' | ||||||||||||||||||||||||
Note 14 — Retirement Benefits | |||||||||||||||||||||||||
RAI sponsors a number of non-contributory defined benefit pension plans covering most of the employees of RAI and certain of its subsidiaries, and also provides certain health and life insurance benefits for most of the retired employees of RAI and certain of its subsidiaries and their dependents. These benefits are generally no longer provided to employees hired on or after January 1, 2004. | |||||||||||||||||||||||||
The changes in benefit obligations and plan assets, as well as the funded status of these plans at December 31 were as follows: | |||||||||||||||||||||||||
Pension Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Change in benefit obligations: | |||||||||||||||||||||||||
Obligations at beginning of year | $ | 6,293 | $ | 5,766 | $ | 1,280 | $ | 1,434 | |||||||||||||||||
Service cost | 23 | 23 | 3 | 3 | |||||||||||||||||||||
Interest cost | 247 | 280 | 50 | 56 | |||||||||||||||||||||
Actuarial (gain) loss | (540 | ) | 612 | (95 | ) | 27 | |||||||||||||||||||
Plan amendments | — | — | — | (157 | ) | ||||||||||||||||||||
Benefits paid | (405 | ) | (424 | ) | (69 | ) | (83 | ) | |||||||||||||||||
Special termination benefits | — | 34 | — | — | |||||||||||||||||||||
One-time cost | — | 2 | — | — | |||||||||||||||||||||
Obligations at end of year | $ | 5,618 | $ | 6,293 | $ | 1,169 | $ | 1,280 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 5,423 | $ | 5,110 | $ | 258 | $ | 255 | |||||||||||||||||
Actual return on plan assets | 142 | 627 | 31 | 29 | |||||||||||||||||||||
Employer contributions | 60 | 110 | 48 | 57 | |||||||||||||||||||||
Benefits paid | (405 | ) | (424 | ) | (69 | ) | (83 | ) | |||||||||||||||||
Fair value of plan assets at end of year | $ | 5,220 | $ | 5,423 | $ | 268 | $ | 258 | |||||||||||||||||
Funded status | $ | (398 | ) | $ | (870 | ) | $ | (901 | ) | $ | (1,022 | ) | |||||||||||||
For the pension benefit plans, the benefit obligation is the projected benefit obligation. For the postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. The decrease in the unfunded status for the pension plans is primarily a result of lower obligations due to a higher discount rate, actual returns on plan assets and employer contributions. The decrease in the unfunded status for the postretirement plans is primarily a result of a higher discount rate. | |||||||||||||||||||||||||
Pension Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||||||||||||||||||||
Noncurrent assets — other assets and deferred charges | $ | 1 | $ | 3 | $ | — | $ | — | |||||||||||||||||
Accrued benefit — other current liability | (9 | ) | (9 | ) | (70 | ) | (65 | ) | |||||||||||||||||
Accrued benefit — long-term retirement benefits | (390 | ) | (864 | ) | (831 | ) | (957 | ) | |||||||||||||||||
Net amount recognized | (398 | ) | (870 | ) | (901 | ) | (1,022 | ) | |||||||||||||||||
Accumulated other comprehensive loss | 311 | 645 | (231 | ) | (157 | ) | |||||||||||||||||||
Net amounts recognized in the consolidated balance sheets | $ | (87 | ) | $ | (225 | ) | $ | (1,132 | ) | $ | (1,179 | ) | |||||||||||||
Amounts included in accumulated other comprehensive loss were as follows as of December 31: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Pension | Postretirement | Total | Pension | Postretirement | Total | ||||||||||||||||||||
Benefits | Benefits | Benefits | Benefits | ||||||||||||||||||||||
Prior service cost (credit) | $ | 17 | $ | (220 | ) | $ | (203 | ) | $ | 20 | $ | (262 | ) | $ | (242 | ) | |||||||||
Net actuarial (gain) loss | 294 | (11 | ) | 283 | 625 | 105 | 730 | ||||||||||||||||||
Deferred income taxes | (134 | ) | 71 | (63 | ) | (265 | ) | 42 | (223 | ) | |||||||||||||||
Accumulated other comprehensive loss | $ | 177 | $ | (160 | ) | $ | 17 | $ | 380 | $ | (115 | ) | $ | 265 | |||||||||||
Changes in accumulated other comprehensive loss were as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Pension | Postretirement | Total | Pension | Postretirement | Total | ||||||||||||||||||||
Benefits | Benefits | Benefits | Benefits | ||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | — | $ | (157 | ) | $ | (157 | ) | |||||||||||
Net actuarial (gain) loss | (331 | ) | (116 | ) | (447 | ) | 344 | 8 | 352 | ||||||||||||||||
Amortization of prior service cost (credit) | (3 | ) | 42 | 39 | (4 | ) | 30 | 26 | |||||||||||||||||
One-time cost | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
MTM adjustment | — | — | — | (289 | ) | (40 | ) | (329 | ) | ||||||||||||||||
Deferred income tax expense | 131 | 29 | 160 | (20 | ) | 65 | 45 | ||||||||||||||||||
Change in accumulated other comprehensive loss | $ | (203 | ) | $ | (45 | ) | $ | (248 | ) | $ | 29 | $ | (94 | ) | $ | (65 | ) | ||||||||
The prior service credit in postretirement benefits in 2012 reflects the adoption of plan amendments resulting from plan design changes primarily impacting the Medicare eligible retirees. These plan changes reduced the postretirement obligation by $157 million. | |||||||||||||||||||||||||
In March 2010, the Patient Protection Affordable Care Act, referred to as the PPACA, as amended by the Health Care and Reconciliation Act of 2010, was signed into law. The PPACA mandates health-care reforms with staggered effective dates from 2010 to 2018. The additional postretirement liability resulting from the material impacts of the PPACA have been included in the accumulated postretirement benefit obligation at December 31, 2013 and 2012. Given the complexity of the PPACA and the extended time period in which implementation is expected to occur, further adjustments to the accumulated postretirement benefit obligation may be necessary in the future. | |||||||||||||||||||||||||
Pension Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||
Discount rate | 4.92 | % | 4.07 | % | 4.87 | % | 3.99 | % | |||||||||||||||||
Rate of compensation increase | 4 | % | 4 | % | — | — | |||||||||||||||||||
The measurement date used for all plans was December 31. | |||||||||||||||||||||||||
The accumulated benefit obligation, which represents benefits earned to date, for all pension plans was $5,557 million and $6,216 million for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Pension plans experiencing accumulated benefit obligations, which represent benefits earned to date, in excess of plan assets are summarized below: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Projected benefit obligation | $ | 5,589 | $ | 6,261 | |||||||||||||||||||||
Accumulated benefit obligation | 5,529 | 6,185 | |||||||||||||||||||||||
Plan assets | 5,190 | 5,388 | |||||||||||||||||||||||
The components of the total benefit cost and assumptions are set forth below: | |||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Components of total benefit cost: | |||||||||||||||||||||||||
Service cost | $ | 23 | $ | 23 | $ | 26 | $ | 3 | $ | 3 | $ | 3 | |||||||||||||
Interest cost | 247 | 280 | 300 | 50 | 56 | 75 | |||||||||||||||||||
Expected return on plan assets | (350 | ) | (359 | ) | (373 | ) | (11 | ) | (10 | ) | (18 | ) | |||||||||||||
Amortization of prior service cost (credit) | 3 | 4 | 4 | (42 | ) | (30 | ) | (29 | ) | ||||||||||||||||
MTM adjustment | — | 289 | 110 | — | 40 | 35 | |||||||||||||||||||
Curtailment | — | 4 | — | — | — | — | |||||||||||||||||||
Special termination benefits | — | 34 | — | — | — | — | |||||||||||||||||||
Total benefit (income) cost | $ | (77 | ) | $ | 275 | $ | 67 | $ | — | $ | 59 | $ | 66 | ||||||||||||
A workforce reduction in 2012, due to changes in the organizational structure of RJR Tobacco, RAI and RAISC, met RAI’s curtailment threshold as a major event for pension plans. As a result, curtailment charges and special termination benefits were recognized as restructuring expense. The workforce reduction did not exceed the minimum threshold for the postretirement plans, and no special postretirement termination benefits were offered. See note 4 for additional information regarding the restructuring. | |||||||||||||||||||||||||
The estimated prior service cost for the pension plans that is expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2014 is $3 million. The estimated prior service credit for the postretirement plans that is expected to be amortized from accumulated other comprehensive loss into net postretirement health-care costs during 2014 is $42 million. | |||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: | |||||||||||||||||||||||||
Discount rate | 4.07 | % | 5 | % | 5.66 | % | 3.99 | % | 4.84 | % | 5.52 | % | |||||||||||||
Expected long-term return on plan assets | 6.67 | % | 6.97 | % | 7.73 | % | 4.35 | % | 4.35 | % | 7 | % | |||||||||||||
Rate of compensation increase | 4 | % | 5 | % | 5 | % | — | — | 5 | % | |||||||||||||||
RAI generally uses a hypothetical bond matching analysis to determine the discount rate. The discount rate modeling process involves selecting a portfolio of high quality corporate bonds whose cash flows, via coupons and maturities, match the projected cash flows of the obligations. | |||||||||||||||||||||||||
The overall expected long-term rate of return on asset assumptions for pension and postretirement assets are based on: (1) the target asset allocation for plan assets, (2) long-term capital markets forecasts for asset classes employed, and (3) excess return expectations of active management to the extent asset classes are actively managed. | |||||||||||||||||||||||||
Plan assets are invested using active investment strategies and multiple investment management firms. Managers within each asset class cover a range of investment styles and approaches and are combined in a way that controls for capitalization, style biases, and interest rate exposures, while focusing primarily on security selection as a means to add value. Risk is controlled through diversification among asset classes, managers, styles and securities. Risk is further controlled both at the manager and asset class level by assigning excess return and tracking error targets against related benchmark indices. Investment manager performance is evaluated against these targets. | |||||||||||||||||||||||||
RAI’s risk mitigating strategy seeks to balance pension plan returns with a reasonable level of funded status volatility. Based on this framework, the asset allocation has two primary components. The first component is the “hedging portfolio,” which uses extended duration fixed income holdings and derivatives to match a portion of the interest rate risk associated with the benefit obligations, thereby reducing expected funded status volatility. The second component is the “return seeking portfolio,” which is designed to enhance portfolio returns. The return seeking portfolio is broadly diversified across asset classes. | |||||||||||||||||||||||||
Allowable investment types include domestic equity, international equity, global equity, emerging market equity, fixed income, high yield fixed income, real estate, private equity, absolute return, global tactical asset allocation and commodities. The range of allowable investment types utilized for pension assets provides enhanced returns and more widely diversifies the plan. Domestic equities are composed of common stocks of large, medium and small companies. International equities include equity securities issued by companies domiciled outside the United States and in depository receipts, which represent ownership of securities of non-U.S. companies. Global equities include a combination of both domestic and international equities. Emerging market equities are comprised of stocks that are domiciled in less developed, fast growing countries. Fixed income includes corporate debt obligations, fixed income securities issued or guaranteed by the U.S. government, and to a lesser extent by non-U.S. governments, mortgage backed securities, and dollar-denominated obligations issued in the United States by non-U.S. banks and corporations. High yield fixed income is composed of debt securities that are below investment grade. Real estate consists of publicly traded real estate investment trust securities and private real estate investments. Private equity consists of the unregistered securities of private and public companies. Absolute return investments are diversified portfolios utilizing multiple strategies that invest primarily in public securities, including equities and fixed income. Global tactical asset allocation strategies evaluate relative value within and across asset categories and overweight the attractive markets/assets while simultaneously underweighting less attractive markets/assets. Commodities utilize futures contracts to invest in a variety of energy, metal and agricultural goods. | |||||||||||||||||||||||||
For pension assets, futures and forward contracts are used for portfolio rebalancing and to approach fully invested portfolio positions. Otherwise, a small number of investment managers employ limited use of derivatives, including futures contracts, options on futures, forward contracts and interest rate swaps in place of direct investment in securities to gain efficient exposure to markets. | |||||||||||||||||||||||||
RAI’s pension and postretirement plans asset allocations at December 31, 2013 and 2012, by asset category were as follows: | |||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||
2013 Target(1) | 2013 | 2012 Target (1) | 2012 | ||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | 10 | % | 10 | % | 7.5 | % | 8 | % | |||||||||||||||||
International equities | 8 | % | 9 | % | 7.5 | % | 8 | % | |||||||||||||||||
Global equities | 9 | % | 11 | % | 9 | % | 9 | % | |||||||||||||||||
Emerging market equities | 3 | % | 3 | % | 3 | % | 3 | % | |||||||||||||||||
Fixed income | 53 | % | 55 | % | 55 | % | 56 | % | |||||||||||||||||
High yield fixed income | — | — | 3 | % | 3 | % | |||||||||||||||||||
Absolute return | 6 | % | 3 | % | 4 | % | 3 | % | |||||||||||||||||
Private equity | 2 | % | 1 | % | 1 | % | 1 | % | |||||||||||||||||
Real estate | 5 | % | 4 | % | 4 | % | 4 | % | |||||||||||||||||
Global tactical asset allocation | — | — | 2 | % | 1 | % | |||||||||||||||||||
Commodities | 4 | % | 4 | % | 4 | % | 4 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
-1 | Allows for a rebalancing range of up to 5 percentage points around target asset allocations. | ||||||||||||||||||||||||
Postretirement Plans | |||||||||||||||||||||||||
2013 Target(1) | 2013 | 2012 Target(1) | 2012 | ||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | 21 | % | 22 | % | 21 | % | 20 | % | |||||||||||||||||
International equities | 21 | % | 22 | % | 21 | % | 22 | % | |||||||||||||||||
Fixed income | 55 | % | 51 | % | 55 | % | 52 | % | |||||||||||||||||
Cash and other | 3 | % | 5 | % | 3 | % | 6 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
-1 | Allows for a rebalancing range of up to 5 percentage points around target asset allocations. | ||||||||||||||||||||||||
RAI’s pension and postretirement plan assets, excluding uninvested cash and unsettled trades, carried at fair value on a recurring basis as of December 31, 2013, were as follows(1): | |||||||||||||||||||||||||
Pension Plans | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | $ | 523 | $ | — | $ | — | $ | 523 | |||||||||||||||||
International equities | 135 | 404 | — | 539 | |||||||||||||||||||||
Global equities | 535 | — | — | 535 | |||||||||||||||||||||
High yield fixed income | — | 18 | — | 18 | |||||||||||||||||||||
Absolute return | — | — | 176 | 176 | |||||||||||||||||||||
Private equity | — | — | 53 | 53 | |||||||||||||||||||||
Real estate | 22 | — | 190 | 212 | |||||||||||||||||||||
Commodities | — | 185 | — | 185 | |||||||||||||||||||||
Agency bonds | — | 17 | — | 17 | |||||||||||||||||||||
Asset backed securities | — | 89 | 3 | 92 | |||||||||||||||||||||
Corporate bonds | — | 1,568 | 2 | 1,570 | |||||||||||||||||||||
Government bonds | — | 152 | — | 152 | |||||||||||||||||||||
Mortgage backed securities | — | 74 | 21 | 95 | |||||||||||||||||||||
Municipal bonds | — | 212 | — | 212 | |||||||||||||||||||||
Treasuries | — | 398 | — | 398 | |||||||||||||||||||||
Other | 30 | 72 | 2 | 104 | |||||||||||||||||||||
Total | $ | 1,245 | $ | 3,189 | $ | 447 | $ | 4,881 | |||||||||||||||||
Postretirement Plans | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | $ | — | $ | 60 | $ | — | $ | 60 | |||||||||||||||||
International equities | — | 59 | — | 59 | |||||||||||||||||||||
Short-term bonds | 9 | — | — | 9 | |||||||||||||||||||||
Intermediate bonds | — | 127 | — | 127 | |||||||||||||||||||||
Other | — | 7 | — | 7 | |||||||||||||||||||||
Total | $ | 9 | $ | 253 | $ | — | $ | 262 | |||||||||||||||||
-1 | See note 1 for additional information on the fair value hierarchy. | ||||||||||||||||||||||||
RAI’s pension and postretirement plan assets, excluding uninvested cash and unsettled trades, carried at fair value on a recurring basis as of December 31, 2012, were as follows(1): | |||||||||||||||||||||||||
Pension Plans | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | $ | 465 | $ | — | $ | — | $ | 465 | |||||||||||||||||
International equities | 111 | 324 | — | 435 | |||||||||||||||||||||
Emerging market equities | — | 71 | — | 71 | |||||||||||||||||||||
Global equities | 455 | — | — | 455 | |||||||||||||||||||||
High yield fixed income | — | 187 | — | 187 | |||||||||||||||||||||
Absolute return | — | — | 189 | 189 | |||||||||||||||||||||
Private equity | — | — | 47 | 47 | |||||||||||||||||||||
Real estate | 25 | — | 178 | 203 | |||||||||||||||||||||
Global tactical asset allocation | — | 55 | — | 55 | |||||||||||||||||||||
Commodities | — | 201 | — | 201 | |||||||||||||||||||||
Agency bonds | — | 18 | — | 18 | |||||||||||||||||||||
Asset backed securities | — | 85 | 5 | 90 | |||||||||||||||||||||
Corporate bonds | — | 1,721 | 2 | 1,723 | |||||||||||||||||||||
Government bonds | — | 159 | — | 159 | |||||||||||||||||||||
Mortgage backed securities | — | 79 | 21 | 100 | |||||||||||||||||||||
Municipal bonds | — | 222 | — | 222 | |||||||||||||||||||||
Treasuries | — | 415 | — | 415 | |||||||||||||||||||||
Other | 37 | 113 | 2 | 152 | |||||||||||||||||||||
Total | $ | 1,093 | $ | 3,650 | $ | 444 | $ | 5,187 | |||||||||||||||||
Postretirement Plans | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | $ | — | $ | 52 | $ | — | $ | 52 | |||||||||||||||||
International equities | — | 56 | — | 56 | |||||||||||||||||||||
Short-term bonds | 6 | — | — | 6 | |||||||||||||||||||||
Intermediate bonds | — | 130 | — | 130 | |||||||||||||||||||||
Other | — | 6 | — | 6 | |||||||||||||||||||||
Total | $ | 6 | $ | 244 | $ | — | $ | 250 | |||||||||||||||||
-1 | See note 1 for additional information on the fair value hierarchy. | ||||||||||||||||||||||||
Transfers of pension and postretirement plan assets in and out of Level 3 during 2013, by asset category were as follows: | |||||||||||||||||||||||||
Balance as of | Purchases, Sales, | Realized | Unrealized | Transferred | Balance as of | ||||||||||||||||||||
January 1, 2013 | Issuances and | Gains | Gains | From Other | December 31, 2013 | ||||||||||||||||||||
Settlements (net) | (Losses) | Levels | |||||||||||||||||||||||
Absolute return | $ | 189 | $ | (32 | ) | $ | 31 | $ | (12 | ) | $ | — | $ | 176 | |||||||||||
Private equity | 47 | (1 | ) | 4 | 3 | — | 53 | ||||||||||||||||||
Real estate | 178 | (9 | ) | 4 | 17 | — | 190 | ||||||||||||||||||
Asset backed securities | 5 | (2 | ) | — | — | — | 3 | ||||||||||||||||||
Corporate bonds | 2 | — | — | — | — | 2 | |||||||||||||||||||
Mortgage backed securities | 21 | — | — | — | — | 21 | |||||||||||||||||||
Other | 2 | — | — | — | — | 2 | |||||||||||||||||||
Total | $ | 444 | $ | (44 | ) | $ | 39 | $ | 8 | $ | — | $ | 447 | ||||||||||||
Transfers of pension and postretirement plan assets in and out of Level 3 during 2012, by asset category were as follows: | |||||||||||||||||||||||||
Balance as of | Purchases, Sales, | Realized | Unrealized | Transferred | Balance as of | ||||||||||||||||||||
January 1, 2012 | Issuances and | Gains | Gains | From Other | December 31, | ||||||||||||||||||||
Settlements (net) | (Losses) | Levels(1) | 2012 | ||||||||||||||||||||||
Absolute return | $ | 249 | $ | (71 | ) | $ | 39 | $ | (28 | ) | $ | — | $ | 189 | |||||||||||
Private equity | 46 | (3 | ) | 4 | — | — | 47 | ||||||||||||||||||
Real estate | 161 | 2 | 2 | 13 | — | 178 | |||||||||||||||||||
Asset backed securities | 2 | 1 | — | — | 2 | 5 | |||||||||||||||||||
Corporate bonds | 15 | (14 | ) | 6 | (6 | ) | 1 | 2 | |||||||||||||||||
Mortgage backed securities | 19 | — | — | 2 | — | 21 | |||||||||||||||||||
Other | 2 | — | — | — | — | 2 | |||||||||||||||||||
Total | $ | 494 | $ | (85 | ) | $ | 51 | $ | (19 | ) | $ | 3 | $ | 444 | |||||||||||
-1 | Transfers in and out of Level 3 occur using the fair value at the beginning of the period. | ||||||||||||||||||||||||
For the years ended December 31, 2013 and 2012, there were no changes among the fair value hierarchy levels between Level 1 and Level 2. For the year ended December 31, 2012, there were changes among the fair value hierarchy levels from Level 2 to Level 3 because of a lack of observable market data due to a decrease in market activity for those securities. | |||||||||||||||||||||||||
At December 31, 2013 and 2012, the fair value of pension and postretirement assets classified as Level 2 or Level 3 was determined using a combination of third party pricing services and net asset value. In instances where the plans have invested in commingled pools, the net asset value was used as the practical expedient and no adjustments were made to the provided fair value. | |||||||||||||||||||||||||
The fair value of commingled pools classified as commodities, emerging market equities, municipal bonds, high yield fixed income, mortgage backed securities, global tactical asset allocation, domestic equities, international equities, intermediate bonds, other and certain of those classified as real estate, asset backed securities and absolute return, classified as Level 2 and Level 3, was determined primarily using an income approach. This approach utilized the net asset value of the underlying investment fund adjusted by the investment manager for restrictions or illiquidity of the disposition of the interest, if any, valuations provided by the fund’s cash flows, and the rights and obligations of the ownership interest of the fund. | |||||||||||||||||||||||||
The fair value of assets classified as private equity and certain of those classified as real estate and absolute return, classified as Level 3, was determined primarily using an income approach. The fair value was determined by qualified appraisers utilizing observable and unobservable data, including comparable transactions, the fair value of the underlying assets, discount rates, restrictions on disposing interests in the investment’s cash flows and other entity specific risk factors. | |||||||||||||||||||||||||
The fair value of assets classified as corporate bonds, other and certain of those classified as asset backed securities, classified as Level 3, was determined primarily using an income approach that utilized cash flow models and benchmarking strategies. This approach utilized observable inputs, including market-based interest rate curves, corporate credit spreads and corporate ratings. Additionally, unobservable factors incorporated into these models included default probability assumptions, potential recovery and discount rates. | |||||||||||||||||||||||||
Additional information relating to RAI’s significant postretirement plans is as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Weighted-average health-care cost trend rate assumed for the following year | 7.5 | % | 8 | % | |||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | |||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2020 | 2018 | |||||||||||||||||||||||
Assumed health-care cost trend rates have a significant effect on the amounts reported for the health-care plans. A one-percentage-point change in assumed health-care cost trend rates would have had the following effects at December 31, 2013: | |||||||||||||||||||||||||
1-Percentage | 1-Percentage | ||||||||||||||||||||||||
Point | Point | ||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 2 | $ | (2 | ) | ||||||||||||||||||||
Effect on benefit obligation | 52 | (44 | ) | ||||||||||||||||||||||
During 2014, RAI expects to contribute $109 million to its pension plans and expects payments related to its postretirement plans to be approximately $70 million. | |||||||||||||||||||||||||
Estimated future benefit payments: | |||||||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||
Year | Pension | Gross Projected | Expected | Net Projected | |||||||||||||||||||||
Benefits | Benefit Payments | Medicare | Benefit Payments | ||||||||||||||||||||||
Before Medicare | Part D | After Medicare | |||||||||||||||||||||||
Part D Subsidies | Subsidies | Part D Subsidies | |||||||||||||||||||||||
2014 | $ | 417 | $ | 103 | $ | (2 | ) | $ | 101 | ||||||||||||||||
2015 | 432 | 95 | (2 | ) | 93 | ||||||||||||||||||||
2016 | 398 | 96 | (2 | ) | 94 | ||||||||||||||||||||
2017 | 398 | 93 | (2 | ) | 91 | ||||||||||||||||||||
2018 | 394 | 91 | (3 | ) | 88 | ||||||||||||||||||||
2019-2023 | 1,909 | 418 | (17 | ) | 401 | ||||||||||||||||||||
RAI sponsors qualified defined contribution plans. The expense related to these plans was $34 million in 2013 and 2012, and $37 million in 2011. Included in the plans is a non-leveraged employee stock ownership plan, which holds shares of the Reynolds Stock Fund. Participants can elect to contribute to the fund. Dividends paid on shares are reflected as a reduction of equity. All shares are considered outstanding for earnings per share computations. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Information | ' | ||||||||||||
Note 15 — Segment Information | |||||||||||||
RAI’s reportable operating segments are RJR Tobacco, American Snuff and Santa Fe. The RJR Tobacco segment consists of the primary operations of R. J. Reynolds Tobacco Company. The American Snuff segment consists of the primary operations of American Snuff Co. and, prior to its sale, Lane. The Santa Fe segment consists of the primary operations of SFNTC. Niconovum AB, Niconovum USA, Inc. and RJR Vapor, among other RAI subsidiaries, are included in All Other. The segments were identified based on how RAI’s chief operating decision maker allocates resources and assesses performance. Certain of RAI’s operating subsidiaries have entered into intercompany agreements for products or services with other subsidiaries. As a result, certain activities of an operating subsidiary may be included in a different segment of RAI. | |||||||||||||
RAI’s largest reportable operating segment, RJR Tobacco, is the second largest tobacco company in the United States. RJR Tobacco’s brands include two of the best-selling cigarettes in the United States: CAMEL and PALL MALL. These brands, and its other brands, including WINSTON, KOOL, DORAL, SALEM, MISTY and CAPRI, are manufactured in a variety of styles and marketed in the United States. As part of its total tobacco strategy, RJR Tobacco also offers a smoke-free tobacco product, CAMEL Snus. RJR Tobacco manages contract manufacturing of cigarette and tobacco products through arrangements with BAT affiliates, and manages the export of tobacco products to certain U.S. territories, U.S. duty-free shops and U.S. overseas military bases. RJR Tobacco manages the super-premium cigarettes, DUNHILL and STATE EXPRESS 555, which are licensed from BAT. | |||||||||||||
American Snuff is the second largest smokeless tobacco products manufacturer in the United States. American Snuff’s primary brands include its largest selling moist snuff brands, GRIZZLY and KODIAK. | |||||||||||||
Santa Fe manufactures and markets cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand. | |||||||||||||
Niconovum AB, Niconovum USA, Inc. and RJR Vapor, among other RAI subsidiaries, are included in All Other. Niconovum AB and Niconovum USA, Inc., are marketers of nicotine replacement therapy products in Sweden and the United States, respectively, under the ZONNIC brand name. RJR Vapor is a manufacturer and distributor of digital vapor cigarettes under the VUSE brand name in the United States. | |||||||||||||
Intersegment revenues and items below the operating income line of the consolidated statements of income are not presented by segment, since they are excluded from the measure of segment profitability reviewed by RAI’s chief operating decision maker. Additionally, information about total assets by segment is not reviewed by RAI’s chief operating decision maker and therefore is not disclosed. | |||||||||||||
Segment Data: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales: | |||||||||||||
RJR Tobacco | $ | 6,728 | $ | 6,960 | $ | 7,317 | |||||||
American Snuff | 745 | 681 | 648 | ||||||||||
Santa Fe | 572 | 486 | 416 | ||||||||||
All Other | 191 | 177 | 160 | ||||||||||
Consolidated net sales | $ | 8,236 | $ | 8,304 | $ | 8,541 | |||||||
Operating income (loss): | |||||||||||||
RJR Tobacco(1)(2)(3) | $ | 2,587 | $ | 1,735 | $ | 1,958 | |||||||
American Snuff(2) | 420 | 374 | 331 | ||||||||||
Santa Fe(3) | 280 | 237 | 186 | ||||||||||
All Other(2) | (70 | ) | (36 | ) | 18 | ||||||||
Corporate(1) | (85 | ) | (96 | ) | (94 | ) | |||||||
Consolidated operating income | $ | 3,132 | $ | 2,214 | $ | 2,399 | |||||||
Cash capital expenditures: | |||||||||||||
RJR Tobacco | $ | 55 | $ | 36 | $ | 55 | |||||||
American Snuff | 15 | 24 | 106 | ||||||||||
Santa Fe | 2 | 4 | 7 | ||||||||||
All Other | 81 | 24 | 22 | ||||||||||
Consolidated capital expenditures | $ | 153 | $ | 88 | $ | 190 | |||||||
Depreciation and amortization expense: | |||||||||||||
RJR Tobacco | $ | 68 | $ | 99 | $ | 110 | |||||||
American Snuff | 18 | 19 | 17 | ||||||||||
Santa Fe | 3 | 2 | 5 | ||||||||||
All Other | 14 | 11 | 6 | ||||||||||
Consolidated depreciation and amortization expense | $ | 103 | $ | 131 | $ | 138 | |||||||
Reconciliation to income from operations before income taxes: | |||||||||||||
Operating income(1)(2)(3) | $ | 3,132 | $ | 2,214 | $ | 2,399 | |||||||
Interest and debt expense | 259 | 234 | 221 | ||||||||||
Interest income | (5 | ) | (7 | ) | (11 | ) | |||||||
Other expense, net | 137 | 34 | 3 | ||||||||||
Income from operations before income taxes | $ | 2,741 | $ | 1,953 | $ | 2,186 | |||||||
-1 | Includes restructuring and/or asset impairment charges of $149 million for the year ended December 31, 2012, see “Restructuring Charges” in note 4. | ||||||||||||
(2) | Includes trademark, goodwill and/or other intangible asset impairment charges of $32 million, $129 million and $48 million for the years ended December 31, 2013, 2012 and 2011, respectively, see “Intangible Assets” in note 3. | ||||||||||||
(3) | Includes NPM Adjustment credits of $478 million for RJR Tobacco and $5 million for Santa Fe for the year ended December 31, 2013, see “— Cost of Products Sold” in note 1. | ||||||||||||
Sales to McLane Company, Inc., a distributor, comprised approximately 31% of RAI’s consolidated revenue in each of 2013 and 2012, and 27% of RAI’s consolidated revenue in 2011. Sales to Core-Mark International, Inc., a distributor, represented approximately 11% of RAI’s consolidated revenue in 2013, and 10% of RAI’s consolidated revenue in 2012. McLane Company, Inc. and Core-Mark International, Inc. are customers of RJR Tobacco, American Snuff and Santa Fe. No other customer accounted for 10% or more of RAI’s consolidated revenue during those periods. | |||||||||||||
RAI’s operating subsidiaries’ sales to foreign countries, primarily to related parties, for the years ended December 31, 2013, 2012 and 2011 were $497 million, $494 million and $613 million, respectively. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Transactions | ' | ||||||||||||
Note 16 — Related Party Transactions | |||||||||||||
RAI and RAI’s operating subsidiaries engage in transactions with affiliates of BAT, which owns approximately 42% of RAI’s outstanding common stock. The following is a summary of balances and transactions with such BAT affiliates as of and for the years ended December 31: | |||||||||||||
Balances: | |||||||||||||
2013 | 2012 | ||||||||||||
Accounts receivable, related party | $ | 56 | $ | 61 | |||||||||
Due to related party | — | 1 | |||||||||||
Deferred revenue, related party | 48 | 42 | |||||||||||
Significant transactions: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales | $ | 337 | $ | 342 | $ | 479 | |||||||
Purchases | 27 | 16 | 11 | ||||||||||
RAI common stock purchases from B&W | 296 | 415 | 114 | ||||||||||
Capsule royalty income | 9 | 6 | 2 | ||||||||||
Research and development services billings | 4 | 3 | 5 | ||||||||||
RAI’s operating subsidiaries, primarily RJR Tobacco, sell contract-manufactured cigarettes, tobacco leaf and processed tobacco to BAT affiliates. In December 2012, RJR Tobacco entered into an amendment to its contract manufacturing agreement with a BAT affiliate, which amendment, among other things, requires either party to provide three years’ notice to the other party to terminate the agreement without cause, with any such notice to be given no earlier than January 1, 2016. Net sales to BAT affiliates, primarily cigarettes, represented approximately 4% of RAI’s total net sales in each of 2013 and 2012, and 6% of RAI’s total net sales in 2011. | |||||||||||||
RJR Tobacco recorded deferred sales revenue relating to leaf sold to BAT affiliates that had not been delivered as of December 31, in each of 2013, 2012 and 2011, given that RJR Tobacco has a legal right to bill the BAT affiliates. Leaf sales revenue to BAT affiliates is recognized when the product is shipped to the customer. RJR Tobacco recorded royalty income from the license of capsule technology to BAT affiliates. | |||||||||||||
RJR Tobacco performs certain research and development for BAT affiliates pursuant to a joint technology sharing agreement entered into as a part of the B&W business combination. These services were billed to BAT affiliates and were recorded in RJR Tobacco’s selling, general and administrative expenses, net of associated costs. | |||||||||||||
RAI’s operating subsidiaries also purchase unprocessed leaf at market prices, and import cigarettes at prices not to exceed manufacturing costs plus 10%, from BAT affiliates. | |||||||||||||
In connection with RAI’s share repurchase program, RAI and B&W entered into an agreement on November 14, 2011, pursuant to which B&W agreed to participate in the repurchase program on a basis approximately proportionate with B&W’s 42% ownership of RAI common stock. Under this agreement, RAI repurchased 6,258,315 shares of RAI common stock from B&W during 2013 and 18,815,124 shares as of December 31, 2013. | |||||||||||||
A member of the board of directors of RAI is also a member of the board of directors of a financial institution, a subsidiary of which is a participant in RAI’s New Credit Agreement. |
RAI_Guaranteed_Unsecured_Notes
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements | ' | ||||||||||||||||||||||
Note 17 — RAI Guaranteed, Unsecured Notes — Condensed Consolidating Financial Statements | |||||||||||||||||||||||
The following condensed consolidating financial statements relate to the guaranties of RAI’s $5.1 billion unsecured notes. See note 10 for additional information relating to these notes. Certain of RAI’s direct, wholly owned subsidiaries and certain of its indirectly owned subsidiaries have fully and unconditionally, and jointly and severally, guaranteed these notes. The following condensed consolidating financial statements include: the accounts and activities of RAI, the parent issuer; RJR, RJR Tobacco, American Snuff Co., SFNTC and certain of RAI’s other subsidiaries, the Guarantors; other direct and indirect subsidiaries of RAI that are not Guarantors; and elimination adjustments. | |||||||||||||||||||||||
Condensed Consolidating Statements of Income | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||
Net sales | $ | — | $ | 7,785 | $ | 147 | $ | (33 | ) | $ | 7,899 | ||||||||||||
Net sales, related party | — | 337 | — | — | 337 | ||||||||||||||||||
Net Sales | — | 8,122 | 147 | (33 | ) | 8,236 | |||||||||||||||||
Cost of products sold | — | 3,628 | 83 | (33 | ) | 3,678 | |||||||||||||||||
Selling, general and administrative expenses | 13 | 1,222 | 154 | — | 1,389 | ||||||||||||||||||
Amortization expense | — | 5 | — | — | 5 | ||||||||||||||||||
Trademark and other intangible asset impairment charges | — | 32 | — | — | 32 | ||||||||||||||||||
Operating income (loss) | (13 | ) | 3,235 | (90 | ) | — | 3,132 | ||||||||||||||||
Interest and debt expense | 255 | 113 | 2 | (111 | ) | 259 | |||||||||||||||||
Interest income | (111 | ) | (3 | ) | (2 | ) | 111 | (5 | ) | ||||||||||||||
Other expense (income), net | 129 | (45 | ) | 10 | 43 | 137 | |||||||||||||||||
Income (loss) before income taxes | (286 | ) | 3,170 | (100 | ) | (43 | ) | 2,741 | |||||||||||||||
Provision for (benefit from) income taxes | (95 | ) | 1,154 | (36 | ) | — | 1,023 | ||||||||||||||||
Equity income from subsidiaries | 1,909 | 5 | — | (1,914 | ) | — | |||||||||||||||||
Net income (loss) | $ | 1,718 | $ | 2,021 | $ | (64 | ) | $ | (1,957 | ) | $ | 1,718 | |||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||
Net sales | $ | — | $ | 7,857 | $ | 134 | $ | (29 | ) | $ | 7,962 | ||||||||||||
Net sales, related party | — | 342 | — | — | 342 | ||||||||||||||||||
Net Sales | — | 8,199 | 134 | (29 | ) | 8,304 | |||||||||||||||||
Cost of products sold | — | 4,316 | 34 | (29 | ) | 4,321 | |||||||||||||||||
Selling, general and administrative expenses | 23 | 1,341 | 106 | — | 1,470 | ||||||||||||||||||
Amortization expense | — | 21 | — | — | 21 | ||||||||||||||||||
Restructuring charge | 4 | 145 | — | — | 149 | ||||||||||||||||||
Trademark and other intangible asset impairment charges | — | 82 | 47 | — | 129 | ||||||||||||||||||
Operating income (loss) | (27 | ) | 2,294 | (53 | ) | — | 2,214 | ||||||||||||||||
Interest and debt expense | 228 | 119 | — | (113 | ) | 234 | |||||||||||||||||
Interest income | (113 | ) | (3 | ) | (4 | ) | 113 | (7 | ) | ||||||||||||||
Other expense (income), net | 26 | (44 | ) | 9 | 43 | 34 | |||||||||||||||||
Income (loss) before income taxes | (168 | ) | 2,222 | (58 | ) | (43 | ) | 1,953 | |||||||||||||||
Provision for (benefit from) income taxes | (59 | ) | 762 | (21 | ) | (1 | ) | 681 | |||||||||||||||
Equity income (loss) from subsidiaries | 1,381 | (16 | ) | — | (1,365 | ) | — | ||||||||||||||||
Net income (loss) | $ | 1,272 | $ | 1,444 | $ | (37 | ) | $ | (1,407 | ) | $ | 1,272 | |||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||||
Net sales | $ | — | $ | 7,971 | $ | 116 | $ | (25 | ) | $ | 8,062 | ||||||||||||
Net sales, related party | — | 479 | — | — | 479 | ||||||||||||||||||
Net Sales | — | 8,450 | 116 | (25 | ) | 8,541 | |||||||||||||||||
Cost of products sold | — | 4,460 | 29 | (25 | ) | 4,464 | |||||||||||||||||
Selling, general and administrative expenses | 129 | 1,386 | 91 | — | 1,606 | ||||||||||||||||||
Amortization expense | — | 24 | — | — | 24 | ||||||||||||||||||
Trademark impairment charges | — | 48 | — | — | 48 | ||||||||||||||||||
Operating income (loss) | (129 | ) | 2,532 | (4 | ) | — | 2,399 | ||||||||||||||||
Interest and debt expense | 213 | 125 | — | (117 | ) | 221 | |||||||||||||||||
Interest income | (118 | ) | (4 | ) | (6 | ) | 117 | (11 | ) | ||||||||||||||
Other expense (income), net | 8 | (47 | ) | (1 | ) | 43 | 3 | ||||||||||||||||
Income (loss) before income taxes | (232 | ) | 2,458 | 3 | (43 | ) | 2,186 | ||||||||||||||||
Provision for (benefit from) income taxes | (89 | ) | 875 | (6 | ) | — | 780 | ||||||||||||||||
Equity income from subsidiaries | 1,549 | 20 | — | (1,569 | ) | — | |||||||||||||||||
Net income | $ | 1,406 | $ | 1,603 | $ | 9 | $ | (1,612 | ) | $ | 1,406 | ||||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||
Net income (loss) | $ | 1,718 | $ | 2,021 | $ | (64 | ) | $ | (1,957 | ) | $ | 1,718 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Retirement benefits | 248 | 239 | (1 | ) | (238 | ) | 248 | ||||||||||||||||
Unrealized gain on long-term investments | 5 | 5 | — | (5 | ) | 5 | |||||||||||||||||
Realized loss on hedging instruments | 1 | — | — | — | 1 | ||||||||||||||||||
Cumulative translation adjustment and other | 1 | 1 | 14 | (15 | ) | 1 | |||||||||||||||||
Comprehensive income (loss) | $ | 1,973 | $ | 2,266 | $ | (51 | ) | $ | (2,215 | ) | $ | 1,973 | |||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||
Net income (loss) | $ | 1,272 | $ | 1,444 | $ | (37 | ) | $ | (1,407 | ) | $ | 1,272 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Retirement benefits | 65 | 65 | — | (65 | ) | 65 | |||||||||||||||||
Unrealized gain on long-term investments | 7 | 7 | — | (7 | ) | 7 | |||||||||||||||||
Realized loss on hedging instruments | (14 | ) | — | — | — | (14 | ) | ||||||||||||||||
Cumulative translation adjustment and other | 13 | 13 | 9 | (22 | ) | 13 | |||||||||||||||||
Comprehensive income (loss) | $ | 1,343 | $ | 1,529 | $ | (28 | ) | $ | (1,501 | ) | $ | 1,343 | |||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||||
Net income | $ | 1,406 | $ | 1,603 | $ | 9 | $ | (1,612 | ) | $ | 1,406 | ||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Retirement benefits | (144 | ) | (141 | ) | 6 | 135 | (144 | ) | |||||||||||||||
Unrealized loss on long-term investments | (12 | ) | (12 | ) | — | 12 | (12 | ) | |||||||||||||||
Cumulative translation adjustment and other | (8 | ) | (8 | ) | (11 | ) | 19 | (8 | ) | ||||||||||||||
Comprehensive income | $ | 1,242 | $ | 1,442 | $ | 4 | $ | (1,446 | ) | $ | 1,242 | ||||||||||||
Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statements of income for the year ended December 31, 2013, were as follows: | |||||||||||||||||||||||
Components | Amount Reclassified | Affected Line Item | |||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
Defined benefit pension and postretirement plans: | |||||||||||||||||||||||
Amortization of prior service costs | $ | (21 | ) | $ | (21 | ) | $ | — | $ | 21 | $ | (21 | ) | Cost of products sold | |||||||||
(18 | ) | (18 | ) | — | 18 | (18 | ) | Selling, general and administrative expenses | |||||||||||||||
Amortization of prior service costs | (39 | ) | (39 | ) | — | 39 | (39 | ) | |||||||||||||||
Deferred taxes | 16 | 16 | — | (16 | ) | 16 | Provision for income taxes | ||||||||||||||||
Net of tax | $ | (23 | ) | $ | (23 | ) | $ | — | $ | 23 | $ | (23 | ) | ||||||||||
Loss on hedging instruments: | |||||||||||||||||||||||
Amortization of realized loss | $ | 2 | $ | — | $ | — | $ | — | $ | 2 | Interest and debt expense | ||||||||||||
Deferred taxes | (1 | ) | — | — | — | (1 | ) | Provision for income taxes | |||||||||||||||
Net of tax | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | |||||||||||||
Total reclassifications | $ | (22 | ) | $ | (23 | ) | $ | — | $ | 23 | $ | (22 | ) | Net income | |||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||
Cash flows from (used in) operating activities | $ | 1,519 | $ | 945 | $ | (70 | ) | $ | (1,086 | ) | $ | 1,308 | |||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (80 | ) | (74 | ) | 1 | (153 | ) | |||||||||||||||
Proceeds from termination of joint venture | — | — | 31 | — | 31 | ||||||||||||||||||
Return of intercompany investments | 300 | — | — | (300 | ) | — | |||||||||||||||||
Other, net | 81 | 33 | (1 | ) | (104 | ) | 9 | ||||||||||||||||
Net cash flows from (used in) investing activities | 381 | (47 | ) | (44 | ) | (403 | ) | (113 | ) | ||||||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||||||
Dividends paid on common stock | (1,335 | ) | (1,042 | ) | — | 1,042 | (1,335 | ) | |||||||||||||||
Repurchase of common stock | (775 | ) | — | — | — | (775 | ) | ||||||||||||||||
Excess tax benefit on stock-based compensation plans | 14 | — | — | — | 14 | ||||||||||||||||||
Principal borrowings under term loan credit facility | 500 | — | — | — | 500 | ||||||||||||||||||
Repayment of term loan credit facility | (500 | ) | — | — | — | (500 | ) | ||||||||||||||||
Proceeds from issuance of long-term debt, net of discounts | 1,097 | — | — | — | 1,097 | ||||||||||||||||||
Repayments of long-term debt | (975 | ) | (60 | ) | — | — | (1,035 | ) | |||||||||||||||
Debt issuance costs and financing fees | (18 | ) | — | — | — | (18 | ) | ||||||||||||||||
Dividends paid on preferred stock | (43 | ) | — | — | 43 | — | |||||||||||||||||
Distribution of equity | — | (300 | ) | — | 300 | — | |||||||||||||||||
Make-whole premium for early extinguishment of debt | (155 | ) | — | — | — | (155 | ) | ||||||||||||||||
Other, net | (21 | ) | (220 | ) | 137 | 104 | — | ||||||||||||||||
Net cash flows from (used in) financing activities | (2,211 | ) | (1,622 | ) | 137 | 1,489 | (2,207 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 10 | — | 10 | ||||||||||||||||||
Net change in cash and cash equivalents | (311 | ) | (724 | ) | 33 | — | (1,002 | ) | |||||||||||||||
Cash and cash equivalents at beginning of year | 755 | 1,420 | 327 | — | 2,502 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ | 444 | $ | 696 | $ | 360 | $ | — | $ | 1,500 | |||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||
Cash flows from operating activities | $ | 454 | $ | 1,801 | $ | 29 | $ | (716 | ) | $ | 1,568 | ||||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (79 | ) | (1 | ) | (8 | ) | (88 | ) | ||||||||||||||
Proceeds from termination of joint venture | — | — | 30 | — | 30 | ||||||||||||||||||
Return of intercompany investments | 898 | — | — | (898 | ) | — | |||||||||||||||||
Other, net | 40 | 17 | 1 | (54 | ) | 4 | |||||||||||||||||
Net cash flows from (used in) investing activities | 938 | (62 | ) | 30 | (960 | ) | (54 | ) | |||||||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||||||
Dividends paid on common stock | (1,307 | ) | (684 | ) | — | 684 | (1,307 | ) | |||||||||||||||
Repurchase of common stock | (1,101 | ) | — | — | — | (1,101 | ) | ||||||||||||||||
Excess tax benefit on stock-based compensation plans | 39 | — | — | — | 39 | ||||||||||||||||||
Principal borrowings under term loan credit facility | 750 | — | — | — | 750 | ||||||||||||||||||
Repayment of term loan credit facility | (750 | ) | — | — | — | (750 | ) | ||||||||||||||||
Proceeds from issuance of long-term debt, net of discounts | 2,539 | — | — | — | 2,539 | ||||||||||||||||||
Repayments of long-term debt | (1,018 | ) | (58 | ) | — | — | (1,076 | ) | |||||||||||||||
Debt issuance costs and financing fees | (22 | ) | — | — | — | (22 | ) | ||||||||||||||||
Payment to settle forward starting interest rate contracts | (23 | ) | — | — | — | (23 | ) | ||||||||||||||||
Dividends paid on preferred stock | (43 | ) | — | — | 43 | — | |||||||||||||||||
Distribution of equity | — | (898 | ) | — | 898 | — | |||||||||||||||||
Other, net | (29 | ) | (40 | ) | (2 | ) | 51 | (20 | ) | ||||||||||||||
Net cash flows used in financing activities | (965 | ) | (1,680 | ) | (2 | ) | 1,676 | (971 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 3 | — | 3 | ||||||||||||||||||
Net change in cash and cash equivalents | 427 | 59 | 60 | — | 546 | ||||||||||||||||||
Cash and cash equivalents at beginning of year | 328 | 1,361 | 267 | — | 1,956 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ | 755 | $ | 1,420 | $ | 327 | $ | — | $ | 2,502 | |||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||||
Cash flows from (used in) operating activities | $ | 641 | $ | 1,571 | $ | (3 | ) | $ | (789 | ) | $ | 1,420 | |||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (190 | ) | — | — | (190 | ) | ||||||||||||||||
Net proceeds from sale of business | 79 | 123 | — | — | 202 | ||||||||||||||||||
Proceeds from termination of joint venture | — | — | 32 | — | 32 | ||||||||||||||||||
Return of intercompany investments | 1,040 | — | — | (1,040 | ) | — | |||||||||||||||||
Other, net | 40 | 60 | — | (84 | ) | 16 | |||||||||||||||||
Net cash flows from (used in) investing activities | 1,159 | (7 | ) | 32 | (1,124 | ) | 60 | ||||||||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||||||
Dividends paid on common stock | (1,212 | ) | (740 | ) | (6 | ) | 746 | (1,212 | ) | ||||||||||||||
Repurchase of common stock | (282 | ) | — | — | — | (282 | ) | ||||||||||||||||
Excess tax benefit on stock-based compensation plans | 1 | — | — | — | 1 | ||||||||||||||||||
Repayments of long-term debt | (400 | ) | — | — | — | (400 | ) | ||||||||||||||||
Debt issuance costs and financing fees | (7 | ) | — | — | — | (7 | ) | ||||||||||||||||
Proceeds from termination of interest rate swaps | 185 | 1 | — | — | 186 | ||||||||||||||||||
Dividends paid on preferred stock | (43 | ) | — | — | 43 | — | |||||||||||||||||
Distribution of equity | — | (1,040 | ) | — | 1,040 | — | |||||||||||||||||
Other, net | (41 | ) | (40 | ) | (3 | ) | 84 | — | |||||||||||||||
Net cash flows used in financing activities | (1,799 | ) | (1,819 | ) | (9 | ) | 1,913 | (1,714 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Net change in cash and cash equivalents | 1 | (255 | ) | 15 | — | (239 | ) | ||||||||||||||||
Cash and cash equivalents at beginning of year | 327 | 1,616 | 252 | — | 2,195 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ | 328 | $ | 1,361 | $ | 267 | $ | — | $ | 1,956 | |||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 444 | $ | 696 | $ | 360 | $ | — | $ | 1,500 | |||||||||||||
Accounts receivable | — | 74 | 32 | — | 106 | ||||||||||||||||||
Accounts receivable, related party | — | 56 | — | — | 56 | ||||||||||||||||||
Notes receivable | — | 1 | 36 | — | 37 | ||||||||||||||||||
Other receivables | 76 | 198 | 6 | (264 | ) | 16 | |||||||||||||||||
Inventories | — | 1,069 | 59 | (1 | ) | 1,127 | |||||||||||||||||
Deferred income taxes, net | — | 614 | 1 | (9 | ) | 606 | |||||||||||||||||
Prepaid expenses and other | 29 | 172 | 7 | (1 | ) | 207 | |||||||||||||||||
Total current assets | 549 | 2,880 | 501 | (275 | ) | 3,655 | |||||||||||||||||
Property, plant and equipment, net | 5 | 986 | 83 | — | 1,074 | ||||||||||||||||||
Trademarks and other intangible assets, net | — | 2,413 | 4 | — | 2,417 | ||||||||||||||||||
Goodwill | — | 7,999 | 12 | — | 8,011 | ||||||||||||||||||
Long-term intercompany notes | 1,842 | 1,295 | — | (3,137 | ) | — | |||||||||||||||||
Investment in subsidiaries | 9,736 | 473 | — | (10,209 | ) | — | |||||||||||||||||
Other assets and deferred charges | 94 | 187 | 18 | (54 | ) | 245 | |||||||||||||||||
Total assets | $ | 12,226 | $ | 16,233 | $ | 618 | $ | (13,675 | ) | $ | 15,402 | ||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||||
Accounts payable | $ | 1 | $ | 169 | $ | 15 | $ | — | $ | 185 | |||||||||||||
Tobacco settlement accruals | — | 1,727 | — | — | 1,727 | ||||||||||||||||||
Deferred revenue, related party | — | 48 | — | — | 48 | ||||||||||||||||||
Other current liabilities | 601 | 744 | 46 | (275 | ) | 1,116 | |||||||||||||||||
Total current liabilities | 602 | 2,688 | 61 | (275 | ) | 3,076 | |||||||||||||||||
Intercompany notes and interest payable | 1,295 | 1,700 | 142 | (3,137 | ) | — | |||||||||||||||||
Long-term debt (less current maturities) | 5,099 | — | — | — | 5,099 | ||||||||||||||||||
Deferred income taxes, net | — | 710 | 2 | (54 | ) | 658 | |||||||||||||||||
Long-term retirement benefits (less current portion) | 38 | 1,172 | 11 | — | 1,221 | ||||||||||||||||||
Other noncurrent liabilities | 25 | 156 | — | — | 181 | ||||||||||||||||||
Shareholders’ equity | 5,167 | 9,807 | 402 | (10,209 | ) | 5,167 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 12,226 | $ | 16,233 | $ | 618 | $ | (13,675 | ) | $ | 15,402 | ||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 755 | $ | 1,420 | $ | 327 | $ | — | $ | 2,502 | |||||||||||||
Accounts receivable | — | 63 | 24 | — | 87 | ||||||||||||||||||
Accounts receivable, related party | — | 61 | — | — | 61 | ||||||||||||||||||
Notes receivable | — | 1 | 34 | — | 35 | ||||||||||||||||||
Other receivables | 369 | 48 | 4 | (405 | ) | 16 | |||||||||||||||||
Inventories | — | 944 | 41 | (1 | ) | 984 | |||||||||||||||||
Deferred income taxes, net | — | 909 | 1 | (2 | ) | 908 | |||||||||||||||||
Prepaid expenses and other | 25 | 188 | 8 | (2 | ) | 219 | |||||||||||||||||
Total current assets | 1,149 | 3,634 | 439 | (410 | ) | 4,812 | |||||||||||||||||
Property, plant and equipment, net | 5 | 1,019 | 12 | 1 | 1,037 | ||||||||||||||||||
Trademarks and other intangible assets, net | — | 2,450 | 5 | — | 2,455 | ||||||||||||||||||
Goodwill | — | 7,999 | 12 | — | 8,011 | ||||||||||||||||||
Long-term intercompany notes | 1,920 | 1,316 | — | (3,236 | ) | — | |||||||||||||||||
Investment in subsidiaries | 8,956 | 456 | — | (9,412 | ) | — | |||||||||||||||||
Other assets and deferred charges | 88 | 165 | 51 | (62 | ) | 242 | |||||||||||||||||
Total assets | $ | 12,118 | $ | 17,039 | $ | 519 | $ | (13,119 | ) | $ | 16,557 | ||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||||
Accounts payable | $ | 1 | $ | 183 | $ | 3 | $ | — | $ | 187 | |||||||||||||
Tobacco settlement accruals | — | 2,489 | — | — | 2,489 | ||||||||||||||||||
Due to related party | — | 1 | — | — | 1 | ||||||||||||||||||
Deferred revenue, related party | — | 42 | — | — | 42 | ||||||||||||||||||
Current maturities of long-term debt | — | 60 | — | — | 60 | ||||||||||||||||||
Other current liabilities | 425 | 910 | 64 | (409 | ) | 990 | |||||||||||||||||
Total current liabilities | 426 | 3,685 | 67 | (409 | ) | 3,769 | |||||||||||||||||
Intercompany notes and interest payable | 1,316 | 1,920 | — | (3,236 | ) | — | |||||||||||||||||
Long-term debt (less current maturities) | 5,035 | — | — | — | 5,035 | ||||||||||||||||||
Deferred income taxes, net | — | 523 | — | (62 | ) | 461 | |||||||||||||||||
Long-term retirement benefits (less current portion) | 58 | 1,752 | 11 | — | 1,821 | ||||||||||||||||||
Other noncurrent liabilities | 26 | 188 | — | — | 214 | ||||||||||||||||||
Shareholders’ equity | 5,257 | 8,971 | 441 | (9,412 | ) | 5,257 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 12,118 | $ | 17,039 | $ | 519 | $ | (13,119 | ) | $ | 16,557 | ||||||||||||
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Results of Operations (Unaudited) | ' | ||||||||||||||||
Note 18 — Quarterly Results of Operations (Unaudited) | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 1,883 | $ | 2,179 | $ | 2,135 | $ | 2,039 | |||||||||
Gross profit | 1,189 | 1,180 | 1,131 | 1,058 | |||||||||||||
Net income(1)(2) | 508 | 461 | 457 | 292 | |||||||||||||
Per share data(3) : | |||||||||||||||||
Basic: | |||||||||||||||||
Net income | 0.92 | 0.84 | 0.84 | 0.54 | |||||||||||||
Diluted: | |||||||||||||||||
Net income | 0.92 | 0.84 | 0.84 | 0.54 | |||||||||||||
2012 | |||||||||||||||||
Net sales | $ | 1,933 | $ | 2,176 | $ | 2,117 | $ | 2,078 | |||||||||
Gross profit(4) | 939 | 1,064 | 1,035 | 945 | |||||||||||||
Net income(5) | 270 | 443 | 420 | 139 | |||||||||||||
Per share data(3) : | |||||||||||||||||
Basic: | |||||||||||||||||
Net income | 0.47 | 0.78 | 0.75 | 0.25 | |||||||||||||
Diluted: | |||||||||||||||||
Net income | 0.47 | 0.78 | 0.74 | 0.25 | |||||||||||||
-1 | Fourth quarter of 2013 net income includes a $32 million trademark impairment charge. | ||||||||||||||||
(2) | Includes NPM Adjustment credits of $261 million in the first quarter of 2013, $90 million in the second quarter of 2013, $69 million in the third quarter of 2013 and $63 million in the fourth quarter of 2013, see “— Cost of Products Sold” in note 1. | ||||||||||||||||
(3) | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the quarters may not equal the total for the year. | ||||||||||||||||
(4) | Third quarter of 2012 gross profit includes an MTM pension/postretirement adjustment of $16 million. Fourth quarter of 2012 gross profit includes an MTM pension/postretirement adjustment of $108 million. | ||||||||||||||||
(5) | First quarter of 2012 net income includes a $149 million restructuring charge. Third quarter of 2012 net income includes a $40 million MTM postretirement adjustment. Fourth quarter of 2012 net income includes a $129 million trademark and other intangible assets charge and an MTM pension adjustment of $289 million. |
Business_and_Summary_of_Signif1
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Overview | ' | ||||||||||||
Overview | |||||||||||||
The consolidated financial statements include the accounts of Reynolds American Inc., referred to as RAI, and its wholly owned subsidiaries. RAI’s wholly owned operating subsidiaries include R. J. Reynolds Tobacco Company; American Snuff Company, LLC, referred to as American Snuff Co.; Santa Fe Natural Tobacco Company, Inc., referred to as SFNTC; Niconovum AB; Niconovum USA, Inc.; and R. J. Reynolds Vapor Company, referred to as RJR Vapor. | |||||||||||||
RAI was incorporated as a holding company in the state of North Carolina on January 2, 2004, and its common stock is listed on the NYSE under the symbol “RAI.” On July 30, 2004, the U.S. assets, liabilities and operations of Brown & Williamson Tobacco Corporation, now known as Brown & Williamson Holdings, Inc., referred to as B&W, an indirect, wholly owned subsidiary of British American Tobacco p.l.c., referred to as BAT, were combined with R. J. Reynolds Tobacco Company, a wholly owned operating subsidiary of R.J. Reynolds Tobacco Holdings, Inc., referred to as RJR. These July 30, 2004, transactions generally are referred to as the B&W business combination. | |||||||||||||
References to RJR Tobacco prior to July 30, 2004, relate to R. J. Reynolds Tobacco Company, a New Jersey corporation and a wholly owned subsidiary of RJR. References to RJR Tobacco on and subsequent to July 30, 2004, relate to the combined U.S. assets, liabilities and operations of B&W and R. J. Reynolds Tobacco Company, a North Carolina corporation. | |||||||||||||
RAI’s reportable operating segments are RJR Tobacco, American Snuff and Santa Fe. The RJR Tobacco segment consists of the primary operations of R. J. Reynolds Tobacco Company. The American Snuff segment consists of the primary operations of American Snuff Co. and, prior to its sale, Lane, Limited, referred to as Lane. The Santa Fe segment consists of the primary operations of SFNTC. Niconovum AB, Niconovum USA, Inc. and RJR Vapor, among other RAI subsidiaries, are included in All Other. The segments were identified based on how RAI’s chief operating decision maker allocates resources and assesses performance. Certain of RAI’s operating subsidiaries have entered into intercompany agreements for products or services with other subsidiaries. As a result, certain activities of an operating subsidiary may be included in a different segment of RAI. | |||||||||||||
As a result of the B&W business combination, Lane became a wholly owned subsidiary of RAI. On February 28, 2011, RAI completed the sale of all of the capital stock of Lane and certain other assets related to the Lane operations, to an affiliate of Scandinavian Tobacco Group A/S, referred to as STG, for net proceeds of $202 million in cash. The results of operations of the disposal group were included through February 28, 2011, in income from operations in the American Snuff segment. | |||||||||||||
RAI’s operating subsidiaries primarily conduct their business in the United States. | |||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Presentation | |||||||||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as GAAP, requires estimates and assumptions to be made that affect the reported amounts in the consolidated financial statements and accompanying notes. Volatile credit and equity markets, changes to regulatory and legal environments, and consumer spending may affect the uncertainty inherent in such estimates and assumptions. Actual results could differ from those estimates. Certain reclassifications were made to conform prior years’ financial statements to the current presentation. Certain amounts presented in note 11 are rounded in the aggregate and may not sum from the individually presented components. | |||||||||||||
All dollar amounts, other than per share amounts, are presented in millions, except for amounts set forth in note 11 and as otherwise noted. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable. Cash equivalents may include money market funds, commercial paper and time deposits in major institutions to minimize investment risk. As short-term, highly liquid investments readily convertible to known amounts of cash, with remaining maturities of three months or less at the time of purchase, cash equivalents have carrying values that approximate fair values. | |||||||||||||
Fair Value Measurement | ' | ||||||||||||
Fair Value Measurement | |||||||||||||
RAI determines the fair value of assets and liabilities, if any, using a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market participant assumptions based on the best information available in the circumstances. | |||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price. | |||||||||||||
The levels of the fair value hierarchy are: | |||||||||||||
Level 1: inputs are quoted prices, unadjusted, in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||||||||||||
Level 2: inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. A Level 2 input must be observable for substantially the full term of the asset or liability. | |||||||||||||
Level 3: inputs are unobservable and reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. | |||||||||||||
Investments | ' | ||||||||||||
Investments | |||||||||||||
Marketable securities are classified as available-for-sale and are carried at fair value. RAI reviews its investments on a quarterly basis to determine if it is probable that RAI will realize some portion of the unrealized loss and to determine the classification of the impairment as temporary or other-than-temporary. For those securities which RAI does not intend to sell and for which it is more likely than not that RAI will not be required to sell the securities prior to recovery, RAI recognizes the credit loss component of an other-than-temporary impairment of its debt securities in earnings and the noncredit component in accumulated other comprehensive loss. All losses deemed to be other than temporarily impaired are recorded in earnings. | |||||||||||||
Inventories | ' | ||||||||||||
Inventories | |||||||||||||
Inventories are stated at the lower of cost or market. The cost of tobacco inventories is determined principally under the last-in, first-out, or LIFO, method and is calculated at the end of each year. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead and full absorption of fixed manufacturing overhead. Stocks of tobacco, which have an operating cycle that exceeds 12 months due to aging requirements, are classified as current assets, consistent with recognized industry practice. | |||||||||||||
Long-lived Assets | ' | ||||||||||||
Long-lived Assets | |||||||||||||
Long-lived assets, such as property, plant and equipment, trademarks and other intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. Impairment of the carrying value of long-lived assets would be indicated if the best estimate of future undiscounted cash flows expected to be generated by the asset grouping is less than its carrying value. If an impairment is indicated, any loss is measured as the difference between estimated fair value and carrying value and is recognized in operating income. | |||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
Property, Plant and Equipment | |||||||||||||
Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Useful lives range from 20 to 50 years for buildings and improvements, and from 3 to 30 years for machinery and equipment. The cost and related accumulated depreciation of assets sold or retired are removed from the accounts and the gain or loss on disposition is recognized in operating income. | |||||||||||||
Intangible Assets | ' | ||||||||||||
Intangible Assets | |||||||||||||
Intangible assets include goodwill, trademarks and other intangible assets and are capitalized when acquired. The determination of fair value involves considerable estimates and judgment. In particular, the fair value of a reporting unit involves, among other things, developing forecasts of future cash flows, determining an appropriate discount rate, and when goodwill impairment is implied, determining the fair value of individual assets and liabilities, including unrecorded intangibles. Although RAI believes it has based its impairment testing and impairment charges of its intangibles on reasonable estimates and assumptions, the use of different estimates and assumptions could result in materially different results. If the current competitive or regulatory environment worsens or RAI’s operating companies’ strategic initiatives adversely affect their financial performance, the fair value of goodwill, trademarks and other intangible assets could be impaired in future periods. Trademarks and other intangible assets with indefinite lives are not amortized, but are tested for impairment annually, in the fourth quarter, and more frequently if events and circumstances indicate that the asset might be impaired. | |||||||||||||
Accounting for Derivative Instruments and Hedging Activities | ' | ||||||||||||
Accounting for Derivative Instruments and Hedging Activities | |||||||||||||
RAI measures any derivative instruments, including certain derivative instruments embedded in other contracts, at fair value and records them in the balance sheet as either an asset or liability. Changes in fair value of derivatives are recorded in earnings unless hedge accounting criteria are met. For derivatives designated as fair value hedges, the changes in fair value of both the derivative instrument and the hedged item are recorded in earnings. For derivatives designated as cash flow hedges, the effective portions of changes in the fair value of the derivative are reported in accumulated other comprehensive loss. The ineffective portions of hedges are recognized in earnings in the current period. | |||||||||||||
RAI formally assesses at inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item, and formally designates as a hedge those derivatives that qualify for hedge accounting. If it is determined that a derivative is not highly effective as a hedge or if a derivative ceases to be a highly effective hedge, RAI will discontinue hedge accounting prospectively. Any unrecognized gain or loss will be deferred and recognized into income as the formerly hedged item is recognized in earnings. At December 31, 2013 and 2012, RAI had no derivative instruments. | |||||||||||||
Software Costs | ' | ||||||||||||
Software Costs | |||||||||||||
Computer software and software development costs incurred in connection with developing or obtaining computer software for internal use that has an extended useful life are capitalized. These costs are amortized over their estimated useful life, which is typically five years or less. During 2013 and 2012, software costs of $13 million and $12 million, respectively, were capitalized or included in construction-in-process. At December 31, 2013 and 2012, the unamortized balance was $51 million and $55 million, respectively. Software amortization expense was $17 million, $21 million and $24 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
Revenue from product sales is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the seller’s price to the buyer is fixed or determinable, and collectibility is reasonably assured. These criteria are generally met when title and risk of loss pass to the customer. Payments received in advance of shipments are deferred and recorded in other accrued liabilities until shipment occurs. Certain sales of leaf to a related party, considered as bill-and-hold for accounting purposes, are recorded as deferred revenue when all of the above revenue recognition criteria are met except delivery, postponed at the customer’s request. Revenue is subsequently recognized upon delivery. The revenues recorded are presented net of excise tax collected on behalf of government authorities. | |||||||||||||
Shipping and handling costs are classified as cost of products sold. Net sales include certain sales incentives, including retail discounting, promotional allowances and coupons. | |||||||||||||
Cost of Products Sold | ' | ||||||||||||
Cost of Products Sold | |||||||||||||
Cost of products sold includes the expenses for the Master Settlement Agreement, referred to as the MSA, and other settlement agreements with the states of Mississippi, Florida, Texas and Minnesota, which together with the MSA are collectively referred to as the State Settlement Agreements; the federal tobacco quota buyout; and the user fees charged by the U.S. Food and Drug Administration, referred to as the FDA; which were as follows for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
State Settlement Agreements | $ | 1,819 | $ | 2,370 | $ | 2,435 | |||||||
Federal tobacco quota buyout | 209 | 218 | 229 | ||||||||||
FDA user fees | 127 | 122 | 120 | ||||||||||
In 2012, RJR Tobacco and certain other participating manufacturers, referred to as the PMs, including SFNTC, entered into a term sheet, referred to as the Term Sheet, with 17 states, the District of Columbia and Puerto Rico to settle certain claims related to the MSA non-participating manufacturer adjustment, referred to as the NPM Adjustment. The Term Sheet resolves claims related to volume years from 2003 through 2012 and puts in place a revised method to determine future adjustments from 2013 forward as to jurisdictions that join the agreement. The Term Sheet was not binding on the parties at the time it was executed. On March 12, 2013, a single, nationwide arbitration panel of three former federal judges, referred to as the Arbitration Panel, hearing the dispute related to the 2003 NPM Adjustment (and related matters) issued an order, referred to as the Order, authorizing the implementation of the Term Sheet. In addition, after the Order, one additional state signed the Term Sheet on April 12, 2013; and, two additional states signed the Term Sheet on May 24, 2013. As a result of the Order, the Term Sheet is now binding on all signatories. | |||||||||||||
Based on the jurisdictions bound by the Term Sheet, RJR Tobacco and SFNTC, collectively, will receive credits, currently estimated to total approximately $1.1 billion, with respect to their NPM Adjustment claims for the period from 2003 through 2012. These credits will be applied against annual payments under the MSA over a five-year period, which commenced with the April 2013 MSA payment. As a result of this binding Order, expenses for the MSA were reduced by $219 million for the year ended December 31, 2013. This includes the credit that reduced the April 2013 MSA payment by $204 million and future MSA payments by $15 million for the two additional states that signed the Term Sheet during May 2013. | |||||||||||||
In addition, RJR Tobacco and SFNTC recognized additional credits of $264 million for the year ended December 31, 2013. RJR Tobacco and SFNTC will recognize additional credits in 2014 through 2016, subject to meeting the various performance obligations associated with the Term Sheet. For additional information related to the NPM Adjustment settlement, see “— Litigation Affecting the Cigarette Industry — State Settlement Agreements — Enforcement and Validity; Adjustments” in note 11. | |||||||||||||
Advertising | ' | ||||||||||||
Advertising | |||||||||||||
Advertising costs, which are expensed as incurred, were $110 million, $72 million and $65 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Research and Development | ' | ||||||||||||
Research and Development | |||||||||||||
Research and development costs, which are expensed as incurred, were $72 million, $62 million and $69 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Interest and penalties related to uncertain tax positions are accounted for as tax expense. Federal income taxes for RAI and its subsidiaries are calculated on a consolidated basis. State income taxes for RAI and its subsidiaries are primarily calculated on a separate return basis. | |||||||||||||
RAI accounts for uncertain tax positions which require that a position taken or expected to be taken in a tax return be recognized in the financial statements when it is more likely than not (a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. | |||||||||||||
Stock-Based Compensation | ' | ||||||||||||
Stock-Based Compensation | |||||||||||||
Stock-based compensation expense is recognized for all forms of share-based payment awards, including shares issued to employees under restricted stock units. | |||||||||||||
Litigation Contingencies | ' | ||||||||||||
Litigation Contingencies | |||||||||||||
RAI discloses information concerning litigation for which an unfavorable outcome is more than remote. RAI and its subsidiaries record their legal expenses and other litigation costs and related administrative costs as selling, general and administrative expenses as those costs are incurred. RAI and its subsidiaries will record any loss related to litigation at such time as an unfavorable outcome becomes probable and the amount can be reasonably estimated on an individual case-by-case basis. When the reasonable estimate is a range, the recorded loss will be the best estimate within the range. If no amount in the range is a better estimate than any other amount, the minimum amount of the range will be recorded. | |||||||||||||
Pension and Postretirement | ' | ||||||||||||
Pension and Postretirement | |||||||||||||
Pension and postretirement benefits require balance sheet recognition of the net asset or liability for the overfunded or underfunded status of defined benefit pension and other postretirement benefit plans, on a plan-by-plan basis, and recognition of changes in the funded status in the year in which the changes occur. | |||||||||||||
Actuarial gains or losses are changes in the amount of either the benefit obligation or the fair value of plan assets resulting from experience different from that assumed or from changes in assumptions. Differences between actual results and actuarial assumptions are accumulated and recognized in the year in which they occur as a mark-to-market adjustment, referred to as an MTM adjustment, to the extent such net gains and losses are in excess of 10% of the greater of the fair value of plan assets or the plan’s benefit obligation, referred to as the corridor. Actuarial gains and losses outside the corridor are generally recognized annually as of December 31, or when the plans are remeasured during an interim period. | |||||||||||||
Prior service costs of pension benefits, which are changes in benefit obligations due to plan amendments, are amortized on a straight-line basis over the average remaining service period for active employees, or average remaining life expectancies for inactive employees if most of the plan obligations are due to inactive employees. Prior service costs of postretirement benefits, which are changes in benefit obligations due to plan amendments, are amortized on a straight-line basis over the expected service period to full eligibility age for active employees, or average remaining life expectancies for inactive employees if most of the plan obligations are due to inactive employees. | |||||||||||||
Recently Issued and Adopted Accounting Pronouncements | ' | ||||||||||||
Recently Issued and Adopted Accounting Pronouncements | |||||||||||||
In February 2013, the Financial Accounting Standards Board issued amended guidance that requires an entity to present information about significant items reclassified out of accumulated other comprehensive income, referred to as AOCI, on the face of the statement where net income is presented or as a separate disclosure in the notes to the financial statements. Additionally, the guidance expanded the disclosure requirements for presentation of changes in AOCI by component. The guidance was effective for RAI for interim and annual reporting periods beginning January 1, 2013, and its adoption did not have an impact on RAI’s results of operations, cash flows or financial position. |
Business_and_Summary_of_Signif2
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Certain Component of Cost of Products Sold | ' | ||||||||||||
Cost of products sold includes the expenses for the Master Settlement Agreement, referred to as the MSA, and other settlement agreements with the states of Mississippi, Florida, Texas and Minnesota, which together with the MSA are collectively referred to as the State Settlement Agreements; the federal tobacco quota buyout; and the user fees charged by the U.S. Food and Drug Administration, referred to as the FDA; which were as follows for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
State Settlement Agreements | $ | 1,819 | $ | 2,370 | $ | 2,435 | |||||||
Federal tobacco quota buyout | 209 | 218 | 229 | ||||||||||
FDA user fees | 127 | 122 | 120 |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities | ' | ||||||||||||||||||||||||
Financial assets carried at fair value as of December 31, 2013, were as follows: | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||
Cash equivalents | $ | 1,443 | $ | — | $ | — | $ | 1,443 | |||||||||||||||||
Other assets and deferred charges: | |||||||||||||||||||||||||
Auction rate securities | — | — | 76 | 76 | |||||||||||||||||||||
Mortgage-backed security | — | — | 13 | 13 | |||||||||||||||||||||
Marketable equity security | 4 | — | — | 4 | |||||||||||||||||||||
Financial assets carried at fair value as of December 31, 2012, were as follows: | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||
Cash equivalents | $ | 2,100 | $ | — | $ | — | $ | 2,100 | |||||||||||||||||
Other assets and deferred charges: | |||||||||||||||||||||||||
Auction rate securities | — | — | 70 | 70 | |||||||||||||||||||||
Mortgage-backed security | — | — | 13 | 13 | |||||||||||||||||||||
Marketable equity security | 4 | — | — | 4 | |||||||||||||||||||||
Financial Assets Classified as level 3 Investments | ' | ||||||||||||||||||||||||
Financial assets classified as Level 3 investments were as follows: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Cost | Gross | Estimated | Cost | Gross | Estimated | ||||||||||||||||||||
Unrealized | Fair Value | Unrealized | Fair Value | ||||||||||||||||||||||
Loss(1) | Loss(1) | ||||||||||||||||||||||||
Auction rate securities | $ | 99 | $ | (23 | ) | $ | 76 | $ | 99 | $ | (29 | ) | $ | 70 | |||||||||||
Mortgage-backed security | 20 | (7 | ) | 13 | 22 | (9 | ) | 13 | |||||||||||||||||
$ | 119 | $ | (30 | ) | $ | 89 | $ | 121 | $ | (38 | ) | $ | 83 | ||||||||||||
(1) | Unrealized losses, net of tax, are reported in accumulated other comprehensive loss in RAI’s consolidated balance sheets as of December 31, 2013 and 2012. | ||||||||||||||||||||||||
Changes In Level 3 Investments | ' | ||||||||||||||||||||||||
The changes in the Level 3 investments were as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Auction Rate Securities | Auction Rate Securities | ||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | ||||||||||||||||||||||
Cost | Gain (Loss) | Fair Value | Cost | Gain (Loss) | Fair Value | ||||||||||||||||||||
Balance as of January 1 | $ | 99 | $ | (29 | ) | $ | 70 | $ | 99 | $ | (36 | ) | $ | 63 | |||||||||||
Unrealized gain | — | 6 | 6 | — | 7 | 7 | |||||||||||||||||||
Balance as of December 31 | $ | 99 | $ | (23 | ) | $ | 76 | $ | 99 | $ | (29 | ) | $ | 70 | |||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Mortgage-Backed Security | Mortgage-Backed Security | ||||||||||||||||||||||||
Gross | Estimated | Gross | Estimated | ||||||||||||||||||||||
Cost | Gain (Loss) | Fair Value | Cost | Gain (Loss) | Fair Value | ||||||||||||||||||||
Balance as of January 1 | $ | 22 | $ | (9 | ) | $ | 13 | $ | 25 | $ | (13 | ) | $ | 12 | |||||||||||
Unrealized gain | — | 2 | 2 | — | 4 | 4 | |||||||||||||||||||
Redemptions | (2 | ) | — | (2 | ) | (3 | ) | — | (3 | ) | |||||||||||||||
Balance as of December 31 | $ | 20 | $ | (7 | ) | $ | 13 | $ | 22 | $ | (9 | ) | $ | 13 | |||||||||||
Trademarks | ' | ||||||||||||||||||||||||
Nonfinancial assets measured at fair value on a nonrecurring basis were as follows: | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total Loss | |||||||||||||||||||||
Trademarks, November 30, 2013 | $ | — | $ | — | $ | 312 | $ | 312 | $ | (32 | ) | ||||||||||||||
Amortization of Net Gain Loss upon Termination of Derivative Instruments Impacted Income Statement | ' | ||||||||||||||||||||||||
The amortization of derivative instruments impacted the consolidated statements of income for the years ended December 31 as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Interest and debt income | $ | (24 | ) | $ | (32 | ) | $ | (47 | ) | ||||||||||||||||
Other expense (income), net | (35 | ) | — | 4 |
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Changes in Carrying Amounts of Goodwill by Segment | ' | ||||||||||||||||||||||||||||
The changes in the carrying amounts of goodwill by segment were as follows: | |||||||||||||||||||||||||||||
RJR | American | Santa Fe | All Other | Consolidated | |||||||||||||||||||||||||
Tobacco | Snuff | ||||||||||||||||||||||||||||
Goodwill | $ | 9,065 | $ | 2,501 | $ | 197 | $ | 38 | $ | 11,801 | |||||||||||||||||||
Less: Accumulated impairment charges | (3,763 | ) | (28 | ) | — | — | (3,791 | ) | |||||||||||||||||||||
Net goodwill balance as of December 31, 2010 and 2011 | 5,302 | 2,473 | 197 | 38 | 8,010 | ||||||||||||||||||||||||
2012 Activity | |||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | 1 | 1 | ||||||||||||||||||||||||
Net goodwill balance as of December 31, 2012 and 2013 | $ | 5,302 | $ | 2,473 | $ | 197 | $ | 39 | $ | 8,011 | |||||||||||||||||||
Carrying Amounts of Indefinite-Lived Intangible Assets by Segment Not Subject to Amortization | ' | ||||||||||||||||||||||||||||
The changes in the carrying amounts of indefinite-lived intangible assets by segment not subject to amortization were as follows: | |||||||||||||||||||||||||||||
RJR Tobacco | American | Santa Fe | All Other | Consolidated | |||||||||||||||||||||||||
Snuff | |||||||||||||||||||||||||||||
Trademarks | Other | Trademarks | Trademarks | Other | Trademarks | Other | |||||||||||||||||||||||
Balance as of December 31, 2010 | $ | 1,152 | $ | 99 | $ | 1,136 | $ | 155 | $ | 50 | $ | 2,443 | $ | 149 | |||||||||||||||
Impairment charge | (43 | ) | — | — | — | — | (43 | ) | — | ||||||||||||||||||||
Foreign currency translation | — | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Balance as of December 31, 2011 | 1,109 | 99 | 1,136 | 155 | 49 | 2,400 | 148 | ||||||||||||||||||||||
Impairment charge | (82 | ) | — | — | — | (47 | ) | (82 | ) | (47 | ) | ||||||||||||||||||
Foreign currency translation | — | — | — | — | 3 | — | 3 | ||||||||||||||||||||||
Balance as of December 31, 2012 | 1,027 | 99 | 1,136 | 155 | 5 | 2,318 | 104 | ||||||||||||||||||||||
Impairment charge | (32 | ) | — | — | — | — | (32 | ) | — | ||||||||||||||||||||
Foreign currency translation | — | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Reclassified to finite-lived | (18 | ) | — | — | — | — | (18 | ) | — | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 977 | $ | 99 | $ | 1,136 | $ | 155 | $ | 4 | $ | 2,268 | $ | 103 | |||||||||||||||
Carrying Amounts of Finite-lived Intangible Assets by Segment Subject to Amortization | ' | ||||||||||||||||||||||||||||
The changes in the carrying amounts of finite-lived intangible assets by segment subject to amortization were as follows: | |||||||||||||||||||||||||||||
RJR Tobacco | American | Consolidated | |||||||||||||||||||||||||||
Snuff | |||||||||||||||||||||||||||||
Trademarks | Other | Trademarks | Trademarks | Other | |||||||||||||||||||||||||
Balance as of December 31, 2010 | $ | 11 | $ | 54 | $ | 18 | $ | 29 | $ | 54 | |||||||||||||||||||
Amortization | (7 | ) | (15 | ) | (2 | ) | (9 | ) | (15 | ) | |||||||||||||||||||
Impairment charge | — | — | (5 | ) | (5 | ) | — | ||||||||||||||||||||||
Balance as of December 31, 2011 | 4 | 39 | 11 | 15 | 39 | ||||||||||||||||||||||||
Amortization | (4 | ) | (15 | ) | (2 | ) | (6 | ) | (15 | ) | |||||||||||||||||||
Balance as of December 31, 2012 | — | 24 | 9 | 9 | 24 | ||||||||||||||||||||||||
Amortization | — | (4 | ) | (1 | ) | (1 | ) | (4 | ) | ||||||||||||||||||||
Reclassified from indefinite-lived | 18 | — | — | 18 | — | ||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 18 | $ | 20 | $ | 8 | $ | 26 | $ | 20 | |||||||||||||||||||
Details of Finite-Lived Intangible Assets | ' | ||||||||||||||||||||||||||||
Details of finite-lived intangible assets were as follows: | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||||||
Contract manufacturing agreements | $ | 151 | $ | 131 | $ | 20 | $ | 151 | $ | 127 | $ | 24 | |||||||||||||||||
Trademarks | 114 | 88 | 26 | 96 | 87 | 9 | |||||||||||||||||||||||
$ | 265 | $ | 219 | $ | 46 | $ | 247 | $ | 214 | $ | 33 | ||||||||||||||||||
Finite Lived Intangible Assets Future Amortization Expense | ' | ||||||||||||||||||||||||||||
The estimated remaining amortization associated with finite-lived intangible assets is expected to be expensed as follows: | |||||||||||||||||||||||||||||
Year | Amount | ||||||||||||||||||||||||||||
2014 | $ | 11 | |||||||||||||||||||||||||||
2015 | 9 | ||||||||||||||||||||||||||||
2016 | 8 | ||||||||||||||||||||||||||||
2017 | 7 | ||||||||||||||||||||||||||||
2018 | 6 | ||||||||||||||||||||||||||||
Thereafter | 5 | ||||||||||||||||||||||||||||
$ | 46 | ||||||||||||||||||||||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Components of Restructuring Charge Accrued and Utilized | ' | ||||
The components of the restructuring charge accrued and utilized were as follows: | |||||
Employee | |||||
Severance | |||||
and Benefits | |||||
Original accrual | $ | 149 | |||
Utilized in 2012 | (78 | ) | |||
Balance as of December 31, 2012 | 71 | ||||
Utilized in 2013 | (14 | ) | |||
Balance as of December 31, 2013 | $ | 57 | |||
Income_Per_Share_Tables
Income Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Components of Calculation of Income Per Share | ' | ||||||||||||
The components of the calculation of income per share were as follows: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income | $ | 1,718 | $ | 1,272 | $ | 1,406 | |||||||
Basic weighted average shares, in thousands | 544,925 | 565,570 | 582,320 | ||||||||||
Effect of dilutive potential shares: | |||||||||||||
Restricted stock units | 2,024 | 2,303 | 3,063 | ||||||||||
Diluted weighted average shares, in thousands | 546,949 | 567,873 | 585,383 | ||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Components of Inventories | ' | ||||||||
The major components of inventories at December 31 were as follows: | |||||||||
2013 | 2012 | ||||||||
Leaf tobacco | $ | 1,049 | $ | 919 | |||||
Other raw materials | 66 | 51 | |||||||
Work in process | 70 | 63 | |||||||
Finished products | 130 | 125 | |||||||
Other | 18 | 18 | |||||||
Total | 1,333 | 1,176 | |||||||
Less LIFO allowance | 206 | 192 | |||||||
$ | 1,127 | $ | 984 | ||||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Current Liabilities | ' | ||||||||
Other current liabilities at December 31 included the following: | |||||||||
2013 | 2012 | ||||||||
Payroll and employee benefits | $ | 179 | $ | 129 | |||||
Pension and other postretirement benefits | 79 | 74 | |||||||
Marketing and advertising | 117 | 106 | |||||||
Declared dividends | 339 | 326 | |||||||
Excise, franchise and property tax | 157 | 149 | |||||||
Restructuring | 19 | 16 | |||||||
Tobacco quota buyout | 52 | 55 | |||||||
Other | 174 | 135 | |||||||
$ | 1,116 | $ | 990 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Provision for Income Taxes from Operations | ' | ||||||||||||
The components of the provision for income taxes from operations for the years ended December 31 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 563 | $ | 647 | $ | 572 | |||||||
State and other | 148 | 78 | 108 | ||||||||||
711 | 725 | 680 | |||||||||||
Deferred: | |||||||||||||
Federal | 254 | (45 | ) | 80 | |||||||||
State and other | 58 | 1 | 20 | ||||||||||
312 | (44 | ) | 100 | ||||||||||
$ | 1,023 | $ | 681 | $ | 780 | ||||||||
Significant Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||
Significant components of deferred tax assets and liabilities for the years ended December 31 included the following: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Pension and other postretirement liabilities | $ | 522 | $ | 726 | |||||||||
Tobacco settlement accruals | 677 | 990 | |||||||||||
Other accrued liabilities | 71 | 62 | |||||||||||
Other noncurrent liabilities | 150 | 153 | |||||||||||
Subtotal | 1,420 | 1,931 | |||||||||||
Less: valuation allowance | (36 | ) | (33 | ) | |||||||||
1,384 | 1,898 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
LIFO inventories | (156 | ) | (158 | ) | |||||||||
Property and equipment | (232 | ) | (242 | ) | |||||||||
Trademarks and other intangibles | (916 | ) | (936 | ) | |||||||||
Other | (120 | ) | (115 | ) | |||||||||
(1,424 | ) | (1,451 | ) | ||||||||||
Net deferred tax asset (liability) | $ | (40 | ) | $ | 447 | ||||||||
Current and Noncurrent Components of Deferred Tax Assets Liabilities | ' | ||||||||||||
The current and noncurrent components of deferred tax assets and liabilities for the years ended December 31 were as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | $ | 606 | $ | 908 | |||||||||
Noncurrent deferred tax assets | 12 | — | |||||||||||
Noncurrent deferred tax liabilities | (658 | ) | (461 | ) | |||||||||
$ | (40 | ) | $ | 447 | |||||||||
Pre-Tax Income (Loss) for Domestic and Foreign Operations | ' | ||||||||||||
Pre-tax income (loss) for domestic and foreign operations for the years ended December 31 consisted of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic (includes U.S. exports) | $ | 2,737 | $ | 1,983 | $ | 2,157 | |||||||
Foreign | 4 | (30 | ) | 29 | |||||||||
$ | 2,741 | $ | 1,953 | $ | 2,186 | ||||||||
Differences between Provision for Income Taxes from Continuing Operations and Income Taxes | ' | ||||||||||||
The differences between the provision for income taxes from operations and income taxes computed at statutory U.S. federal income tax rates for the years ended December 31 were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income taxes computed at the statutory U.S. federal income tax rate | $ | 959 | $ | 684 | $ | 765 | |||||||
State and local income taxes, net of federal tax benefits | 135 | 107 | 96 | ||||||||||
Domestic manufacturing deduction | (55 | ) | (60 | ) | (60 | ) | |||||||
Other items, net | (16 | ) | (50 | ) | (21 | ) | |||||||
Provision for income taxes from operations | $ | 1,023 | $ | 681 | $ | 780 | |||||||
Effective tax rate | 37.3 | % | 34.9 | % | 35.7 | % | |||||||
Reconciliation of Gross Unrecognized Income Tax Benefits | ' | ||||||||||||
A reconciliation of the gross unrecognized income tax benefits is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 68 | $ | 128 | $ | 127 | |||||||
Gross increases related to current period tax positions | 4 | 4 | 6 | ||||||||||
Gross increases related to tax positions in prior periods | — | 1 | 1 | ||||||||||
Gross decreases related to tax positions in prior periods | (3 | ) | (7 | ) | (1 | ) | |||||||
Gross increases (decreases) related to audit settlements | (1 | ) | (31 | ) | 1 | ||||||||
Gross decreases related to lapse of applicable statute of limitations | (6 | ) | (27 | ) | (6 | ) | |||||||
Balance at end of year | $ | 62 | $ | 68 | $ | 128 | |||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Long-Term Debt, Net of Discounts | ' | ||||||||
Long-term debt, net of discounts and including adjustments associated with interest rate swaps, as of December 31, consisted of the following: | |||||||||
2013 | 2012 | ||||||||
1.05% guaranteed, notes due 2015 | $ | 450 | $ | 449 | |||||
3.25% guaranteed, notes due 2022 | 1,099 | 1,099 | |||||||
4.75% guaranteed, notes due 2042 | 991 | 991 | |||||||
4.85% guaranteed, notes due 2023 | 550 | — | |||||||
6.15% guaranteed, notes due 2043 | 547 | — | |||||||
6.75% guaranteed, notes due 2017 | 765 | 781 | |||||||
7.25% guaranteed, notes due 2037 | 448 | 448 | |||||||
7.30% guaranteed, notes due 2015 | — | 200 | |||||||
7.625% guaranteed, notes due 2016 | — | 818 | |||||||
7.75% guaranteed, notes due 2018 | 249 | 249 | |||||||
Total long-term debt (less current maturities) | 5,099 | 5,035 | |||||||
Current maturities of long-term debt | — | 60 | |||||||
$ | 5,099 | $ | 5,095 | ||||||
Maturities of RAI's Notes | ' | ||||||||
As of December 31, 2013, the maturities of RAI’s notes, net of discounts, were as follows: | |||||||||
Year | Amount | ||||||||
2015 | $ | 450 | |||||||
2017 | 700 | ||||||||
2018 | 249 | ||||||||
2022 and thereafter | 3,635 | ||||||||
$ | 5,034 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
U.S. Tobacco-related Cases Pending Against RJR Tobacco or its Affiliates or Indemnities | ' | ||||||||||||||||||||||||||||||||
The following table lists the categories of the U.S. tobacco-related cases pending against RJR Tobacco or its affiliates or indemnitees as of December 31, 2013, compared with the number of cases pending against RJR Tobacco, its affiliates or indemnitees as of September 30, 2013, as reported in RAI’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2013, filed with the SEC on October 22, 2013, and a cross-reference to the discussion of each case type. | |||||||||||||||||||||||||||||||||
Case Type | RJR Tobacco’s | Change in | Page | ||||||||||||||||||||||||||||||
Case Numbers as | Number of | Reference | |||||||||||||||||||||||||||||||
of December 31, 2013 | Cases Since | ||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
Increase/(Decrease) | |||||||||||||||||||||||||||||||||
Individual Smoking and Health | 94 | (2 | ) | 109 | |||||||||||||||||||||||||||||
West Virginia IPIC (Number of Plaintiffs)* | 1 (approx. 564) | approx. 534 | 111 | ||||||||||||||||||||||||||||||
Engle Progeny (Number of Plaintiffs)** | 5,131 (approx. 6,323) | (56) (21) | 111 | ||||||||||||||||||||||||||||||
Broin II | 2,572 | -2 | 126 | ||||||||||||||||||||||||||||||
Class-Action | 8 | No change | 126 | ||||||||||||||||||||||||||||||
Health-Care Cost Recovery | 2 | No change | 129 | ||||||||||||||||||||||||||||||
State Settlement Agreements — Enforcement and Validity; Adjustments | 31 | No change | 137 | ||||||||||||||||||||||||||||||
Antitrust | 1 | No change | 142 | ||||||||||||||||||||||||||||||
Other Litigation and Developments | 12 | 2 | 142 | ||||||||||||||||||||||||||||||
* | Includes as one case the approximately 564 cases pending as a consolidated action In Re: Tobacco Litigation Individual Personal Injury Cases, sometimes referred to as West Virginia IPIC cases, described below. The West Virginia IPIC cases have been separated from the Individual Smoking and Health cases for reporting purposes. | ||||||||||||||||||||||||||||||||
** | The Engle Progeny cases have been separated from the Individual Smoking and Health cases for reporting purposes. The number of cases has decreased as the result of many of the federal and state court cases being dismissed or duplicate actions being consolidated. | ||||||||||||||||||||||||||||||||
Verdicts in Individual Engle Progeny Cases that have been Tried and Remain Pending | ' | ||||||||||||||||||||||||||||||||
The following chart reflects the details related to these cases: | |||||||||||||||||||||||||||||||||
Plaintiff | RJR Tobacco | Compensatory | Punitive | Status | |||||||||||||||||||||||||||||
Case Name | Allocation of | Damages (as | Damages | ||||||||||||||||||||||||||||||
Fault | adjusted)(1) | ||||||||||||||||||||||||||||||||
Bowman | 30 | % | $ | 450,000 | $ | — | Paid | ||||||||||||||||||||||||||
Reese | 30 | % | 1,065,000 | — | Paid | ||||||||||||||||||||||||||||
Weingart | 3 | % | 4,500 | — | Paid | ||||||||||||||||||||||||||||
Douglas | 5 | % | 250,000 | — | Paid | ||||||||||||||||||||||||||||
Ward | 30 | % | 487,000 | 1,700,000 | Paid in January 2014 | ||||||||||||||||||||||||||||
Sherman | 50 | % | 775,000 | — | Pending-Florida Supreme Court | ||||||||||||||||||||||||||||
Jimmie Lee Brown | 50 | % | 600,000 | — | Pending-Florida Supreme Court | ||||||||||||||||||||||||||||
Koballa | 30 | % | 300,000 | — | Notice to invoke jurisdiction of Florida Supreme Court pending | ||||||||||||||||||||||||||||
Kirkland | 10 | % | 260,000 | — | Affirmed by Second DCA | ||||||||||||||||||||||||||||
Duke | 25 | % | 7,676 | — | Preparing to seek review with U.S. Supreme Court | ||||||||||||||||||||||||||||
Walker | 10 | % | 27,500 | — | Preparing to seek review with U.S. Supreme Court | ||||||||||||||||||||||||||||
Hiott | 40 | % | 730,000 | — | Preparing to seek review with the Florida Supreme Court | ||||||||||||||||||||||||||||
Sury | 20 | % | 500,000 | — | Florida Supreme Court denied petition for review | ||||||||||||||||||||||||||||
Totals | $ | 5,456,676 | $ | 1,700,000 | |||||||||||||||||||||||||||||
(1) | Compensatory damages are adjusted to reflect the reduction required by the allocation of fault. Punitive damages are not adjusted and reflect the amount of the final judgment(s) signed by the trial court judge(s). The amounts listed above do not include attorneys’ fees or statutory interest that apply to the judgments. | ||||||||||||||||||||||||||||||||
In 2012, four Engle Progeny cases became final. These cases resulted in RJR Tobacco paying $34 million ($25.8 million for compensatory and punitive damages and $8.1 million for attorneys’ fees and statutory interest) in 2012. The following chart reflects the details related to these cases: | |||||||||||||||||||||||||||||||||
Plaintiff | RJR Tobacco | Compensatory | Punitive | Status | |||||||||||||||||||||||||||||
Case Name | Allocation of | Damages (as | Damages | ||||||||||||||||||||||||||||||
Fault | adjusted)(1) | ||||||||||||||||||||||||||||||||
Earline Alexander | 51 | % | $ | 1,275,000 | $ | 2,500,000 | Paid | ||||||||||||||||||||||||||
Huish | 25 | % | 188,000 | 1,500,000 | Paid | ||||||||||||||||||||||||||||
Piendle | 27.5 | % | 1,100,000 | 180,000 | Paid | ||||||||||||||||||||||||||||
Clay | 60 | % | 2,100,000 | 17,000,000 | Paid | ||||||||||||||||||||||||||||
Totals | $ | 4,663,000 | $ | 21,180,000 | |||||||||||||||||||||||||||||
(1) | Compensatory damages are adjusted to reflect the reduction required by the allocation of fault. Punitive damages are not adjusted and reflect the amount of the final judgment(s) signed by the trial court judge(s). The amounts listed above do not include attorneys’ fees or statutory interest that apply to the judgments. | ||||||||||||||||||||||||||||||||
In addition, four Engle Progeny cases became final in 2011, which resulted in RJR Tobacco paying $66.5 million ($53.3 million for compensatory and punitive damages and $13.5 million for attorneys’ fees and statutory interest) in 2012. The following chart reflects the details related to these cases: | |||||||||||||||||||||||||||||||||
Plaintiff | RJR Tobacco | Compensatory | Punitive | Status | |||||||||||||||||||||||||||||
Case Name | Allocation of | Damages (as | Damages | ||||||||||||||||||||||||||||||
Fault | adjusted)(1) | ||||||||||||||||||||||||||||||||
Martin | 66 | % | $ | 3,300,000 | $ | 25,000,000 | Paid | ||||||||||||||||||||||||||
Campbell | 39 | % | 3,040,000 | — | Paid | ||||||||||||||||||||||||||||
Gray | 60 | % | 4,200,000 | 2,000,000 | Paid | ||||||||||||||||||||||||||||
Hall | 65 | % | 3,250,000 | 12,500,000 | Paid | ||||||||||||||||||||||||||||
Totals | $ | 13,790,000 | $ | 39,500,000 | |||||||||||||||||||||||||||||
(1) | Compensatory damages are adjusted to reflect the reduction required by the allocation of fault. Punitive damages are not adjusted and reflect the amount of the final judgment(s) signed by the trial court judge(s). The amounts listed above do not include attorneys’ fees or statutory interest that apply to the judgments. | ||||||||||||||||||||||||||||||||
The following chart reflects verdicts in all other individual Engle Progeny cases, pending as of December 31, 2013, in which a verdict has been returned against RJR Tobacco or B&W, or both, and has not been set aside on appeal. No liability for any of these cases has been recorded in RAI’s consolidated balance sheet as of December 31, 2013. This chart does not include the mistrials or verdicts returned in favor of RJR Tobacco or B&W, or both. | |||||||||||||||||||||||||||||||||
Plaintiff | RJR Tobacco | Compensatory | Punitive | Appeal Status | |||||||||||||||||||||||||||||
Case Name | Allocation of | Damages (as | Damages | ||||||||||||||||||||||||||||||
Fault | adjusted)(1) | ||||||||||||||||||||||||||||||||
Cohen | 33.30% | $ | 3,300,000 | $ | — | Punitive damages set aside; remanded for partial | |||||||||||||||||||||||||||
new trial; notice to invoke jurisdiction of | |||||||||||||||||||||||||||||||||
Florida Supreme Court pending | |||||||||||||||||||||||||||||||||
Townsend | 51% | 5,500,000 | 20,000,000 | Notice to invoke jurisdiction of Florida | |||||||||||||||||||||||||||||
Supreme Court pending | |||||||||||||||||||||||||||||||||
Buonomo | 77.50% | 4,060,000 | — | Punitive damages set aside; remanded for new | |||||||||||||||||||||||||||||
trial; notice to invoke jurisdiction of Florida | |||||||||||||||||||||||||||||||||
Supreme Court pending | |||||||||||||||||||||||||||||||||
Webb | 90% | — | — | Reversed and remanded for new trial on | |||||||||||||||||||||||||||||
damages | |||||||||||||||||||||||||||||||||
Mack | 65% | 1,885,000 | — | Pending — First DCA | |||||||||||||||||||||||||||||
Soffer | 40% | 2,000,000 | — | Notice to invoke jurisdiction of Florida | |||||||||||||||||||||||||||||
Supreme Court pending | |||||||||||||||||||||||||||||||||
Ciccone | 30% | 1,000,000 | — | Notice to invoke jurisdiction of Florida | |||||||||||||||||||||||||||||
Supreme Court pending | |||||||||||||||||||||||||||||||||
Hallgren | 25% | 1,000,000(3) | 750,000 | Notice to invoke jurisdiction of Florida | |||||||||||||||||||||||||||||
Supreme Court pending | |||||||||||||||||||||||||||||||||
Plaintiff | RJR Tobacco | Compensatory | Punitive | Appeal Status | |||||||||||||||||||||||||||||
Case Name | Allocation of | Damages (as | Damages | ||||||||||||||||||||||||||||||
Fault | adjusted)(1) | ||||||||||||||||||||||||||||||||
Emmon Smith | 70% | 7,000,000 | 20,000,000 | Motion for rehearing pending — First DCA | |||||||||||||||||||||||||||||
Calloway | 27% | 16,100,000 | (4) | 17,250,000 | Pending — Fourth DCA | ||||||||||||||||||||||||||||
Hancock | 5% | 700 | — | Pending — Fourth DCA | |||||||||||||||||||||||||||||
Sikes | 51% | 3,520,000 | 2,000,000 | Pending — First DCA | |||||||||||||||||||||||||||||
James Smith | 55% | 600,000 | (5) | 20,000 | Pending — Eleventh Circuit | ||||||||||||||||||||||||||||
Schlenther | 50% | 5,030,000 | (5) | 2,500,000 | Pending — Second DCA | ||||||||||||||||||||||||||||
Ballard | 55% | 5,000,000 | — | Pending — Third DCA | |||||||||||||||||||||||||||||
Lock | 9% | 103,500 | — | Pending — Second DCA | |||||||||||||||||||||||||||||
Williams | 85% | 4,250,000 | — | Pending — Third DCA | |||||||||||||||||||||||||||||
Evers | 60% | 1,938,000 | — | Punitive damages reversed; pending — | |||||||||||||||||||||||||||||
Second DCA | |||||||||||||||||||||||||||||||||
Schoeff | 75% | 7,875,000 | 30,000,000 | Pending — Fourth DCA | |||||||||||||||||||||||||||||
Marotta | 58% | 3,480,000 | — | Pending — Fourth DCA | |||||||||||||||||||||||||||||
Searcy | 30% | 1,000,000 | (6) | 1,670,000 | Pending — Eleventh Circuit | ||||||||||||||||||||||||||||
Aycock | 72.50% | 4,277,000 | — | Pending — Eleventh Circuit | |||||||||||||||||||||||||||||
Earl Graham | 20% | 550,000 | — | Pending — Eleventh Circuit | |||||||||||||||||||||||||||||
Starr-Blundell | 10% | 50,000 | — | Pending — First DCA | |||||||||||||||||||||||||||||
Odum | 50% | 100,000 | — | Pending — First DCA | |||||||||||||||||||||||||||||
Skolnick | 30% | 767,000 | — | Pending — Fourth DCA | |||||||||||||||||||||||||||||
Thibault | 70% | 1,750,000 | (5) | 1,275,000 | Pending — First DCA | ||||||||||||||||||||||||||||
Grossman | 75% | 15,350,000 | (5) | 22,500,000 | Pending — Fourth DCA | ||||||||||||||||||||||||||||
Gafney | 33% | 1,914,000 | — | Pending — Fourth DCA | |||||||||||||||||||||||||||||
Crawford | 70% | 9,000,000 | 1,000,000 | Pending — Third DCA | |||||||||||||||||||||||||||||
Harford | 18% | 59,000 | — | Post-trial motions are pending(2) | |||||||||||||||||||||||||||||
Cheeley | 50% | 3,000,000 | 2,000,000 | Post-trial motions are pending(2) | |||||||||||||||||||||||||||||
Totals | $ | 111,459,200 | $ | 120,965,000 | |||||||||||||||||||||||||||||
(1) | Unless otherwise noted, compensatory damages in these cases are adjusted to reflect the jury’s allocation of comparative fault. Punitive damages are not so adjusted. The amounts listed above do not include attorneys’ fees or statutory interest that may apply to the judgments. | ||||||||||||||||||||||||||||||||
(2) | Should the pending post-trial motions be denied, RJR Tobacco will file a notice of appeal with the appropriate appellate court. | ||||||||||||||||||||||||||||||||
(3) | The trial court held the defendants liable for the entire $1 million, even though the jury allocated 50% of fault to the plaintiff and 50% to the defendants. | ||||||||||||||||||||||||||||||||
(4) | In its ruling on the post-trial motions, the court determined that the jury’s apportionment of comparative fault did not apply to the compensatory damages award and found the defendants jointly and severally liable. | ||||||||||||||||||||||||||||||||
(5) | The court did not apply comparative fault in the final judgment. | ||||||||||||||||||||||||||||||||
(6) | The court held the defendants liable for the entire $1 million, even though the jury allocated 40% of fault to the plaintiff and 60% to the defendants. | ||||||||||||||||||||||||||||||||
Commitments and Contingencies Related to Settlements | ' | ||||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | ||||||||||||||||||||||||||
First Four States’ Settlements:(1) | |||||||||||||||||||||||||||||||||
Mississippi Annual Payment | $ | 136 | $ | 136 | $ | 136 | $ | 136 | $ | 136 | $ | 136 | $ | 136 | $ | 136 | |||||||||||||||||
Florida Annual Payment | 440 | 440 | 440 | 440 | 440 | 440 | 440 | 440 | |||||||||||||||||||||||||
Texas Annual Payment | 580 | 580 | 580 | 580 | 580 | 580 | 580 | 580 | |||||||||||||||||||||||||
Minnesota Annual Payment | 204 | 204 | 204 | 204 | 204 | 204 | 204 | 204 | |||||||||||||||||||||||||
Remaining Jurisdictions’ Settlement: | |||||||||||||||||||||||||||||||||
Annual Payments(1) | 8,004 | 8,004 | 8,004 | 8,004 | 8,004 | 8,004 | 8,004 | 8,004 | |||||||||||||||||||||||||
Total | $ | 9,364 | $ | 9,364 | $ | 9,364 | $ | 9,364 | $ | 9,364 | $ | 9,364 | $ | 9,364 | $ | 9,364 | |||||||||||||||||
RAI’s Operating Subsidiaries’ Settlement Expenses and Payment Schedule | |||||||||||||||||||||||||||||||||
Settlement expenses | $ | 2,435 | $ | 2,370 | $ | 1,819 | — | — | — | — | — | ||||||||||||||||||||||
Settlement cash payments | $ | 2,492 | $ | 2,414 | $ | 2,582 | — | — | — | — | — | ||||||||||||||||||||||
Projected settlement expenses | $ | >1,900 | $ | >1,900 | $ | >1,900 | $ | >2,000 | $ | >2,000 | |||||||||||||||||||||||
Projected settlement cash payments | $ | >2,000 | $ | >1,900 | $ | >1,900 | $ | >1,900 | $ | >2,000 | |||||||||||||||||||||||
-1 | Subject to adjustments for changes in sales volume, inflation and other factors. All payments are to be allocated among the companies on the basis of relative market share. For further information, see “— State Settlement Agreements — Enforcement and Validity; Adjustments” below. | ||||||||||||||||||||||||||||||||
Disputed Portion of MSA Payment Obligation | ' | ||||||||||||||||||||||||||||||||
The approximate maximum principal amounts of RJR Tobacco’s share of the disputed NPM Adjustments for the years 2004 through 2010, as currently calculated by the Independent Auditor, are as follows (the amounts shown below do not include the interest or earnings thereon to which RJR Tobacco believes it would be entitled under the MSA and do not reflect any reduction as a result of the Term Sheet described below): | |||||||||||||||||||||||||||||||||
Year for which NPM Adjustment calculated | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||||||||||||
Year in which deduction for NPM Adjustment was taken | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | ||||||||||||||||||||||||||
RJR Tobacco’s approximate share of disputed NPM Adjustment (millions) | $ | 562 | $ | 445 | $ | 419 | $ | 435 | $ | 468 | $ | 469 | $ | 461 | |||||||||||||||||||
Noncancellable Operating Leases Future Minimum Lease Payments | ' | ||||||||||||||||||||||||||||||||
Future minimum lease payments as of December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||
Noncancellable | |||||||||||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||||||||||
2014 | $ | 22 | |||||||||||||||||||||||||||||||
2015 | 17 | ||||||||||||||||||||||||||||||||
2016 | 14 | ||||||||||||||||||||||||||||||||
2017 | 9 | ||||||||||||||||||||||||||||||||
2018 | 5 | ||||||||||||||||||||||||||||||||
Thereafter | 1 | ||||||||||||||||||||||||||||||||
Total | $ | 68 | |||||||||||||||||||||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Declared Quarterly Cash Dividends per Share of Common Stock | ' | ||||||||||||||||||||
RAI’s board of directors declared the following quarterly cash dividends per share of RAI common stock in 2013, 2012 and 2011: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
First | $ | 0.59 | $ | 0.56 | $ | 0.53 | |||||||||||||||
Second | $ | 0.63 | $ | 0.59 | $ | 0.53 | |||||||||||||||
Third | $ | 0.63 | $ | 0.59 | $ | 0.53 | |||||||||||||||
Fourth | $ | 0.63 | $ | 0.59 | $ | 0.56 | |||||||||||||||
Components of Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
The components of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2013, were as follows: | |||||||||||||||||||||
Retirement | Unrealized Gain | Realized Loss | Cumulative | Total | |||||||||||||||||
Benefits | (Loss) on Long- | on Hedging | Translation | ||||||||||||||||||
Term Investments | Instruments | Adjustment and Other | |||||||||||||||||||
Balance at December 31, 2012 | $ | (265 | ) | $ | (21 | ) | $ | (14 | ) | $ | (11 | ) | $ | (311 | ) | ||||||
Other comprehensive income before reclassifications | 271 | 5 | — | 1 | 277 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (23 | ) | — | 1 | — | (22 | ) | ||||||||||||||
Net current-period other comprehensive income | 248 | 5 | 1 | 1 | 255 | ||||||||||||||||
Balance at December 31, 2013 | $ | (17 | ) | $ | (16 | ) | $ | (13 | ) | $ | (10 | ) | $ | (56 | ) | ||||||
Reclassification Out of Accumulated Other Comprehensive Income Net of Tax | ' | ||||||||||||||||||||
Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidated statement of income for the year ended December 31, 2013, were as follows: | |||||||||||||||||||||
Components | Amounts | Affected Line Item | |||||||||||||||||||
Reclassified | |||||||||||||||||||||
Defined benefit pension and | |||||||||||||||||||||
postretirement plans: | |||||||||||||||||||||
Amortization of prior service costs | $ | (21 | ) | Cost of products sold | |||||||||||||||||
Amortization of prior service costs | (18 | ) | Selling, general and administrative expenses | ||||||||||||||||||
(39 | ) | ||||||||||||||||||||
Deferred taxes | 16 | Provision for income taxes | |||||||||||||||||||
Net of tax | $ | (23 | ) | ||||||||||||||||||
Loss on hedging instruments: | |||||||||||||||||||||
Amortization of realized loss | $ | 2 | Interest and debt expense | ||||||||||||||||||
Deferred taxes | (1 | ) | Provision for income taxes | ||||||||||||||||||
Net of tax | $ | 1 | |||||||||||||||||||
Total reclassifications | $ | (22 | ) | Net income | |||||||||||||||||
Changes in Common Stock Outstanding | ' | ||||||||||||||||||||
Changes in RAI common stock outstanding were as follows: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Shares outstanding at beginning of year | 552,940,767 | 576,135,199 | 583,043,872 | ||||||||||||||||||
LTIP shares forfeited | — | — | (433 | ) | |||||||||||||||||
LTIP tax shares repurchased and cancelled | — | (921,646 | ) | (162,257 | ) | ||||||||||||||||
LTIP shares issued from vesting of restricted stock units | — | 2,640,408 | — | ||||||||||||||||||
Omnibus Plan tax shares repurchased and cancelled | (574,383 | ) | — | — | |||||||||||||||||
Omnibus Plan shares issued from vesting of restricted stock units | 1,572,389 | — | — | ||||||||||||||||||
Shares repurchased and cancelled | (15,917,174 | ) | (24,944,233 | ) | (6,776,637 | ) | |||||||||||||||
Equity incentive award plan shares issued | 31,425 | 31,039 | 30,654 | ||||||||||||||||||
Shares outstanding at end of year | 538,053,024 | 552,940,767 | 576,135,199 | ||||||||||||||||||
Stock_Plans_Tables
Stock Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Information Regarding Stock-based Awards Outstanding | ' | ||||||||||||||||
Information regarding restricted stock unit awards outstanding as of December 31, 2013, under the Omnibus Plan was as follows: | |||||||||||||||||
Grant | Number | Grant Price | Vesting Date | Number | |||||||||||||
Year | of | of | |||||||||||||||
Shares | Shares | ||||||||||||||||
Granted | Cancelled | ||||||||||||||||
2011 | 1,561,331 | $ | 33.99 | March 1, 2014 | 174,074 | ||||||||||||
2011 | 3,874 | $ | 39.59 | 1-Mar-14 | 3,874 | ||||||||||||
2012 | 1,222,534 | $ | 42.16 | 1-Mar-15 | 108,128 | ||||||||||||
2013 | 1,112,436 | $ | 43.36 | 1-Mar-16 | 19,505 | ||||||||||||
Changes in Restricted RAI Common Stock and Restricted Stock Units | ' | ||||||||||||||||
The changes in RAI restricted stock units during 2013 were as follows: | |||||||||||||||||
Stock Units | Weighted Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at beginning of year | 4,131,852 | $ | 33.36 | ||||||||||||||
Granted | 1,112,436 | 43.36 | |||||||||||||||
Forfeited | (45,417 | ) | 40.91 | ||||||||||||||
Vested | (1,604,277 | ) | 26.63 | ||||||||||||||
Outstanding at end of year | 3,594,594 | 39.37 | |||||||||||||||
Compensation Expense Related to Stock Based Compensation and Related Tax Benefits | ' | ||||||||||||||||
Total compensation expense related to stock-based compensation and the related tax benefits recognized in selling, general and administrative expenses in the consolidated statements of income were as follows: | |||||||||||||||||
Grant/Type | 2013 | 2012 | 2011 | ||||||||||||||
2008 restricted stock | $ | — | $ | — | $ | 1 | |||||||||||
2009 restricted stock units | — | 2 | 12 | ||||||||||||||
2010 restricted stock units | 2 | 13 | 12 | ||||||||||||||
2011 restricted stock units | 20 | 14 | 13 | ||||||||||||||
2012 restricted stock units | 18 | 13 | — | ||||||||||||||
2013 restricted stock units | 15 | — | — | ||||||||||||||
Total compensation expense | $ | 55 | $ | 42 | $ | 38 | |||||||||||
Total related tax benefits | $ | 19 | $ | 15 | $ | 13 | |||||||||||
Amounts Related to Performance Share Grants, Restricted Stock Grants, Restricted Stock Units Grant | ' | ||||||||||||||||
The amounts related to the unvested Omnibus Plan restricted stock unit grants were included in the consolidated balance sheets as of December 31 as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Other current liabilities | $ | 10 | $ | 10 | |||||||||||||
Other noncurrent liabilities | 9 | 8 | |||||||||||||||
Paid-in capital | 94 | 80 | |||||||||||||||
Changes in RAI's Stock Options | ' | ||||||||||||||||
RAI has a policy of issuing new shares of common stock to satisfy share option exercises. There was no stock option activity during 2013. The aggregate intrinsic value of fully vested outstanding and exercisable options at December 31, 2011, was $1 million. The changes in RAI’s stock options during 2012 and 2011 were as follows: | |||||||||||||||||
2012 | 2011 | ||||||||||||||||
Options | Weighted | Options | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Exercise | Exercise | ||||||||||||||||
Price | Price | ||||||||||||||||
Outstanding at beginning of year | 40,000 | $ | 17.45 | 40,000 | $ | 17.45 | |||||||||||
Expired | (40,000 | ) | 17.45 | — | — | ||||||||||||
Exercised | — | — | — | — | |||||||||||||
Outstanding at end of year | — | — | 40,000 | 17.45 | |||||||||||||
Exercisable at end of year | — | — | 40,000 | 17.45 | |||||||||||||
Equity Compensation Plan Information | ' | ||||||||||||||||
Equity compensation plan information as of December 31, 2013, was as follows: | |||||||||||||||||
Plan Category | Number of Securities | Weighted Average | Number of Securities | ||||||||||||||
to be Issued Upon | Exercise Price of | Remaining Available for | |||||||||||||||
Exercise of | Outstanding | Future Issuance under | |||||||||||||||
Outstanding Options, | Options, Warrants | Equity Compensation | |||||||||||||||
Warrants and Rights | and Rights | Plans (Excluding | |||||||||||||||
Securities Reflected in | |||||||||||||||||
Column (a)) | |||||||||||||||||
(a) | (b) | (c) | |||||||||||||||
Equity Compensation Plans Approved by Security Holders | 5,391,891 | (2) | $ | — | 31,610,104 | ||||||||||||
Equity Compensation Plans Not Approved by Security Holders(1) | — | — | 1,036,806 | ||||||||||||||
Total | 5,391,891 | (2) | — | 32,646,910 | |||||||||||||
-1 | The EIAP was approved by RJR’s sole shareholder, NGH, prior to RJR’s spin-off on June 15, 1999. | ||||||||||||||||
(2) | Consists of restricted stock units. These restricted stock units represent the maximum number, 150%, of shares to be awarded under the best-case targets that may not be achieved, and accordingly, may overstate expected dilution. |
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Changes in Benefit Obligations | ' | ||||||||||||||||||||||||
The changes in benefit obligations and plan assets, as well as the funded status of these plans at December 31 were as follows: | |||||||||||||||||||||||||
Pension Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Change in benefit obligations: | |||||||||||||||||||||||||
Obligations at beginning of year | $ | 6,293 | $ | 5,766 | $ | 1,280 | $ | 1,434 | |||||||||||||||||
Service cost | 23 | 23 | 3 | 3 | |||||||||||||||||||||
Interest cost | 247 | 280 | 50 | 56 | |||||||||||||||||||||
Actuarial (gain) loss | (540 | ) | 612 | (95 | ) | 27 | |||||||||||||||||||
Plan amendments | — | — | — | (157 | ) | ||||||||||||||||||||
Benefits paid | (405 | ) | (424 | ) | (69 | ) | (83 | ) | |||||||||||||||||
Special termination benefits | — | 34 | — | — | |||||||||||||||||||||
One-time cost | — | 2 | — | — | |||||||||||||||||||||
Obligations at end of year | $ | 5,618 | $ | 6,293 | $ | 1,169 | $ | 1,280 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 5,423 | $ | 5,110 | $ | 258 | $ | 255 | |||||||||||||||||
Actual return on plan assets | 142 | 627 | 31 | 29 | |||||||||||||||||||||
Employer contributions | 60 | 110 | 48 | 57 | |||||||||||||||||||||
Benefits paid | (405 | ) | (424 | ) | (69 | ) | (83 | ) | |||||||||||||||||
Fair value of plan assets at end of year | $ | 5,220 | $ | 5,423 | $ | 268 | $ | 258 | |||||||||||||||||
Funded status | $ | (398 | ) | $ | (870 | ) | $ | (901 | ) | $ | (1,022 | ) | |||||||||||||
Amounts Recognized in Consolidated Balance Sheets | ' | ||||||||||||||||||||||||
Pension Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | |||||||||||||||||||||||||
Noncurrent assets — other assets and deferred charges | $ | 1 | $ | 3 | $ | — | $ | — | |||||||||||||||||
Accrued benefit — other current liability | (9 | ) | (9 | ) | (70 | ) | (65 | ) | |||||||||||||||||
Accrued benefit — long-term retirement benefits | (390 | ) | (864 | ) | (831 | ) | (957 | ) | |||||||||||||||||
Net amount recognized | (398 | ) | (870 | ) | (901 | ) | (1,022 | ) | |||||||||||||||||
Accumulated other comprehensive loss | 311 | 645 | (231 | ) | (157 | ) | |||||||||||||||||||
Net amounts recognized in the consolidated balance sheets | $ | (87 | ) | $ | (225 | ) | $ | (1,132 | ) | $ | (1,179 | ) | |||||||||||||
Amounts Included in Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||||||||
Amounts included in accumulated other comprehensive loss were as follows as of December 31: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Pension | Postretirement | Total | Pension | Postretirement | Total | ||||||||||||||||||||
Benefits | Benefits | Benefits | Benefits | ||||||||||||||||||||||
Prior service cost (credit) | $ | 17 | $ | (220 | ) | $ | (203 | ) | $ | 20 | $ | (262 | ) | $ | (242 | ) | |||||||||
Net actuarial (gain) loss | 294 | (11 | ) | 283 | 625 | 105 | 730 | ||||||||||||||||||
Deferred income taxes | (134 | ) | 71 | (63 | ) | (265 | ) | 42 | (223 | ) | |||||||||||||||
Accumulated other comprehensive loss | $ | 177 | $ | (160 | ) | $ | 17 | $ | 380 | $ | (115 | ) | $ | 265 | |||||||||||
Changes in Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||||||||
Changes in accumulated other comprehensive loss were as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Pension | Postretirement | Total | Pension | Postretirement | Total | ||||||||||||||||||||
Benefits | Benefits | Benefits | Benefits | ||||||||||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | — | $ | (157 | ) | $ | (157 | ) | |||||||||||
Net actuarial (gain) loss | (331 | ) | (116 | ) | (447 | ) | 344 | 8 | 352 | ||||||||||||||||
Amortization of prior service cost (credit) | (3 | ) | 42 | 39 | (4 | ) | 30 | 26 | |||||||||||||||||
One-time cost | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||
MTM adjustment | — | — | — | (289 | ) | (40 | ) | (329 | ) | ||||||||||||||||
Deferred income tax expense | 131 | 29 | 160 | (20 | ) | 65 | 45 | ||||||||||||||||||
Change in accumulated other comprehensive loss | $ | (203 | ) | $ | (45 | ) | $ | (248 | ) | $ | 29 | $ | (94 | ) | $ | (65 | ) | ||||||||
Weighted Average Assumptions Used to Determine Benefit Obligations | ' | ||||||||||||||||||||||||
Pension Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||
Discount rate | 4.92 | % | 4.07 | % | 4.87 | % | 3.99 | % | |||||||||||||||||
Rate of compensation increase | 4 | % | 4 | % | — | — | |||||||||||||||||||
Accumulated Benefit Obligations | ' | ||||||||||||||||||||||||
Pension plans experiencing accumulated benefit obligations, which represent benefits earned to date, in excess of plan assets are summarized below: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Projected benefit obligation | $ | 5,589 | $ | 6,261 | |||||||||||||||||||||
Accumulated benefit obligation | 5,529 | 6,185 | |||||||||||||||||||||||
Plan assets | 5,190 | 5,388 | |||||||||||||||||||||||
Components of Pension Benefits and Postretirement Benefits | ' | ||||||||||||||||||||||||
The components of the total benefit cost and assumptions are set forth below: | |||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Components of total benefit cost: | |||||||||||||||||||||||||
Service cost | $ | 23 | $ | 23 | $ | 26 | $ | 3 | $ | 3 | $ | 3 | |||||||||||||
Interest cost | 247 | 280 | 300 | 50 | 56 | 75 | |||||||||||||||||||
Expected return on plan assets | (350 | ) | (359 | ) | (373 | ) | (11 | ) | (10 | ) | (18 | ) | |||||||||||||
Amortization of prior service cost (credit) | 3 | 4 | 4 | (42 | ) | (30 | ) | (29 | ) | ||||||||||||||||
MTM adjustment | — | 289 | 110 | — | 40 | 35 | |||||||||||||||||||
Curtailment | — | 4 | — | — | — | — | |||||||||||||||||||
Special termination benefits | — | 34 | — | — | — | — | |||||||||||||||||||
Total benefit (income) cost | $ | (77 | ) | $ | 275 | $ | 67 | $ | — | $ | 59 | $ | 66 | ||||||||||||
Weighted Average Assumptions | ' | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: | |||||||||||||||||||||||||
Discount rate | 4.07 | % | 5 | % | 5.66 | % | 3.99 | % | 4.84 | % | 5.52 | % | |||||||||||||
Expected long-term return on plan assets | 6.67 | % | 6.97 | % | 7.73 | % | 4.35 | % | 4.35 | % | 7 | % | |||||||||||||
Rate of compensation increase | 4 | % | 5 | % | 5 | % | — | — | 5 | % | |||||||||||||||
Pension and Postretirement Plans Asset Allocations | ' | ||||||||||||||||||||||||
RAI’s pension and postretirement plans asset allocations at December 31, 2013 and 2012, by asset category were as follows: | |||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||
2013 Target(1) | 2013 | 2012 Target (1) | 2012 | ||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | 10 | % | 10 | % | 7.5 | % | 8 | % | |||||||||||||||||
International equities | 8 | % | 9 | % | 7.5 | % | 8 | % | |||||||||||||||||
Global equities | 9 | % | 11 | % | 9 | % | 9 | % | |||||||||||||||||
Emerging market equities | 3 | % | 3 | % | 3 | % | 3 | % | |||||||||||||||||
Fixed income | 53 | % | 55 | % | 55 | % | 56 | % | |||||||||||||||||
High yield fixed income | — | — | 3 | % | 3 | % | |||||||||||||||||||
Absolute return | 6 | % | 3 | % | 4 | % | 3 | % | |||||||||||||||||
Private equity | 2 | % | 1 | % | 1 | % | 1 | % | |||||||||||||||||
Real estate | 5 | % | 4 | % | 4 | % | 4 | % | |||||||||||||||||
Global tactical asset allocation | — | — | 2 | % | 1 | % | |||||||||||||||||||
Commodities | 4 | % | 4 | % | 4 | % | 4 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
-1 | Allows for a rebalancing range of up to 5 percentage points around target asset allocations. | ||||||||||||||||||||||||
Postretirement Plans | |||||||||||||||||||||||||
2013 Target(1) | 2013 | 2012 Target(1) | 2012 | ||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | 21 | % | 22 | % | 21 | % | 20 | % | |||||||||||||||||
International equities | 21 | % | 22 | % | 21 | % | 22 | % | |||||||||||||||||
Fixed income | 55 | % | 51 | % | 55 | % | 52 | % | |||||||||||||||||
Cash and other | 3 | % | 5 | % | 3 | % | 6 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
-1 | Allows for a rebalancing range of up to 5 percentage points around target asset allocations. | ||||||||||||||||||||||||
Plan Assets Carried at Fair Value | ' | ||||||||||||||||||||||||
RAI’s pension and postretirement plan assets, excluding uninvested cash and unsettled trades, carried at fair value on a recurring basis as of December 31, 2013, were as follows(1): | |||||||||||||||||||||||||
Pension Plans | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | $ | 523 | $ | — | $ | — | $ | 523 | |||||||||||||||||
International equities | 135 | 404 | — | 539 | |||||||||||||||||||||
Global equities | 535 | — | — | 535 | |||||||||||||||||||||
High yield fixed income | — | 18 | — | 18 | |||||||||||||||||||||
Absolute return | — | — | 176 | 176 | |||||||||||||||||||||
Private equity | — | — | 53 | 53 | |||||||||||||||||||||
Real estate | 22 | — | 190 | 212 | |||||||||||||||||||||
Commodities | — | 185 | — | 185 | |||||||||||||||||||||
Agency bonds | — | 17 | — | 17 | |||||||||||||||||||||
Asset backed securities | — | 89 | 3 | 92 | |||||||||||||||||||||
Corporate bonds | — | 1,568 | 2 | 1,570 | |||||||||||||||||||||
Government bonds | — | 152 | — | 152 | |||||||||||||||||||||
Mortgage backed securities | — | 74 | 21 | 95 | |||||||||||||||||||||
Municipal bonds | — | 212 | — | 212 | |||||||||||||||||||||
Treasuries | — | 398 | — | 398 | |||||||||||||||||||||
Other | 30 | 72 | 2 | 104 | |||||||||||||||||||||
Total | $ | 1,245 | $ | 3,189 | $ | 447 | $ | 4,881 | |||||||||||||||||
Postretirement Plans | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | $ | — | $ | 60 | $ | — | $ | 60 | |||||||||||||||||
International equities | — | 59 | — | 59 | |||||||||||||||||||||
Short-term bonds | 9 | — | — | 9 | |||||||||||||||||||||
Intermediate bonds | — | 127 | — | 127 | |||||||||||||||||||||
Other | — | 7 | — | 7 | |||||||||||||||||||||
Total | $ | 9 | $ | 253 | $ | — | $ | 262 | |||||||||||||||||
-1 | See note 1 for additional information on the fair value hierarchy. | ||||||||||||||||||||||||
RAI’s pension and postretirement plan assets, excluding uninvested cash and unsettled trades, carried at fair value on a recurring basis as of December 31, 2012, were as follows(1): | |||||||||||||||||||||||||
Pension Plans | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | $ | 465 | $ | — | $ | — | $ | 465 | |||||||||||||||||
International equities | 111 | 324 | — | 435 | |||||||||||||||||||||
Emerging market equities | — | 71 | — | 71 | |||||||||||||||||||||
Global equities | 455 | — | — | 455 | |||||||||||||||||||||
High yield fixed income | — | 187 | — | 187 | |||||||||||||||||||||
Absolute return | — | — | 189 | 189 | |||||||||||||||||||||
Private equity | — | — | 47 | 47 | |||||||||||||||||||||
Real estate | 25 | — | 178 | 203 | |||||||||||||||||||||
Global tactical asset allocation | — | 55 | — | 55 | |||||||||||||||||||||
Commodities | — | 201 | — | 201 | |||||||||||||||||||||
Agency bonds | — | 18 | — | 18 | |||||||||||||||||||||
Asset backed securities | — | 85 | 5 | 90 | |||||||||||||||||||||
Corporate bonds | — | 1,721 | 2 | 1,723 | |||||||||||||||||||||
Government bonds | — | 159 | — | 159 | |||||||||||||||||||||
Mortgage backed securities | — | 79 | 21 | 100 | |||||||||||||||||||||
Municipal bonds | — | 222 | — | 222 | |||||||||||||||||||||
Treasuries | — | 415 | — | 415 | |||||||||||||||||||||
Other | 37 | 113 | 2 | 152 | |||||||||||||||||||||
Total | $ | 1,093 | $ | 3,650 | $ | 444 | $ | 5,187 | |||||||||||||||||
Postretirement Plans | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Domestic equities | $ | — | $ | 52 | $ | — | $ | 52 | |||||||||||||||||
International equities | — | 56 | — | 56 | |||||||||||||||||||||
Short-term bonds | 6 | — | — | 6 | |||||||||||||||||||||
Intermediate bonds | — | 130 | — | 130 | |||||||||||||||||||||
Other | — | 6 | — | 6 | |||||||||||||||||||||
Total | $ | 6 | $ | 244 | $ | — | $ | 250 | |||||||||||||||||
-1 | See note 1 for additional information on the fair value hierarchy. | ||||||||||||||||||||||||
Transfers of Plan Assets by Asset Category | ' | ||||||||||||||||||||||||
Transfers of pension and postretirement plan assets in and out of Level 3 during 2013, by asset category were as follows: | |||||||||||||||||||||||||
Balance as of | Purchases, Sales, | Realized | Unrealized | Transferred | Balance as of | ||||||||||||||||||||
January 1, 2013 | Issuances and | Gains | Gains | From Other | December 31, 2013 | ||||||||||||||||||||
Settlements (net) | (Losses) | Levels | |||||||||||||||||||||||
Absolute return | $ | 189 | $ | (32 | ) | $ | 31 | $ | (12 | ) | $ | — | $ | 176 | |||||||||||
Private equity | 47 | (1 | ) | 4 | 3 | — | 53 | ||||||||||||||||||
Real estate | 178 | (9 | ) | 4 | 17 | — | 190 | ||||||||||||||||||
Asset backed securities | 5 | (2 | ) | — | — | — | 3 | ||||||||||||||||||
Corporate bonds | 2 | — | — | — | — | 2 | |||||||||||||||||||
Mortgage backed securities | 21 | — | — | — | — | 21 | |||||||||||||||||||
Other | 2 | — | — | — | — | 2 | |||||||||||||||||||
Total | $ | 444 | $ | (44 | ) | $ | 39 | $ | 8 | $ | — | $ | 447 | ||||||||||||
Transfers of pension and postretirement plan assets in and out of Level 3 during 2012, by asset category were as follows: | |||||||||||||||||||||||||
Balance as of | Purchases, Sales, | Realized | Unrealized | Transferred | Balance as of | ||||||||||||||||||||
January 1, 2012 | Issuances and | Gains | Gains | From Other | December 31, | ||||||||||||||||||||
Settlements (net) | (Losses) | Levels(1) | 2012 | ||||||||||||||||||||||
Absolute return | $ | 249 | $ | (71 | ) | $ | 39 | $ | (28 | ) | $ | — | $ | 189 | |||||||||||
Private equity | 46 | (3 | ) | 4 | — | — | 47 | ||||||||||||||||||
Real estate | 161 | 2 | 2 | 13 | — | 178 | |||||||||||||||||||
Asset backed securities | 2 | 1 | — | — | 2 | 5 | |||||||||||||||||||
Corporate bonds | 15 | (14 | ) | 6 | (6 | ) | 1 | 2 | |||||||||||||||||
Mortgage backed securities | 19 | — | — | 2 | — | 21 | |||||||||||||||||||
Other | 2 | — | — | — | — | 2 | |||||||||||||||||||
Total | $ | 494 | $ | (85 | ) | $ | 51 | $ | (19 | ) | $ | 3 | $ | 444 | |||||||||||
-1 | Transfers in and out of Level 3 occur using the fair value at the beginning of the period. | ||||||||||||||||||||||||
Weighted Average Health Care Cost Trend | ' | ||||||||||||||||||||||||
Additional information relating to RAI’s significant postretirement plans is as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Weighted-average health-care cost trend rate assumed for the following year | 7.5 | % | 8 | % | |||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | |||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2020 | 2018 | |||||||||||||||||||||||
Assumed Health Care Cost Trend | ' | ||||||||||||||||||||||||
A one-percentage-point change in assumed health-care cost trend rates would have had the following effects at December 31, 2013: | |||||||||||||||||||||||||
1-Percentage | 1-Percentage | ||||||||||||||||||||||||
Point | Point | ||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 2 | $ | (2 | ) | ||||||||||||||||||||
Effect on benefit obligation | 52 | (44 | ) | ||||||||||||||||||||||
Estimated Future Benefit Payments | ' | ||||||||||||||||||||||||
Estimated future benefit payments: | |||||||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||
Year | Pension | Gross Projected | Expected | Net Projected | |||||||||||||||||||||
Benefits | Benefit Payments | Medicare | Benefit Payments | ||||||||||||||||||||||
Before Medicare | Part D | After Medicare | |||||||||||||||||||||||
Part D Subsidies | Subsidies | Part D Subsidies | |||||||||||||||||||||||
2014 | $ | 417 | $ | 103 | $ | (2 | ) | $ | 101 | ||||||||||||||||
2015 | 432 | 95 | (2 | ) | 93 | ||||||||||||||||||||
2016 | 398 | 96 | (2 | ) | 94 | ||||||||||||||||||||
2017 | 398 | 93 | (2 | ) | 91 | ||||||||||||||||||||
2018 | 394 | 91 | (3 | ) | 88 | ||||||||||||||||||||
2019-2023 | 1,909 | 418 | (17 | ) | 401 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Information Related to Sales, Income, and Assets | ' | ||||||||||||
Segment Data: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales: | |||||||||||||
RJR Tobacco | $ | 6,728 | $ | 6,960 | $ | 7,317 | |||||||
American Snuff | 745 | 681 | 648 | ||||||||||
Santa Fe | 572 | 486 | 416 | ||||||||||
All Other | 191 | 177 | 160 | ||||||||||
Consolidated net sales | $ | 8,236 | $ | 8,304 | $ | 8,541 | |||||||
Operating income (loss): | |||||||||||||
RJR Tobacco(1)(2)(3) | $ | 2,587 | $ | 1,735 | $ | 1,958 | |||||||
American Snuff(2) | 420 | 374 | 331 | ||||||||||
Santa Fe(3) | 280 | 237 | 186 | ||||||||||
All Other(2) | (70 | ) | (36 | ) | 18 | ||||||||
Corporate(1) | (85 | ) | (96 | ) | (94 | ) | |||||||
Consolidated operating income | $ | 3,132 | $ | 2,214 | $ | 2,399 | |||||||
Cash capital expenditures: | |||||||||||||
RJR Tobacco | $ | 55 | $ | 36 | $ | 55 | |||||||
American Snuff | 15 | 24 | 106 | ||||||||||
Santa Fe | 2 | 4 | 7 | ||||||||||
All Other | 81 | 24 | 22 | ||||||||||
Consolidated capital expenditures | $ | 153 | $ | 88 | $ | 190 | |||||||
Depreciation and amortization expense: | |||||||||||||
RJR Tobacco | $ | 68 | $ | 99 | $ | 110 | |||||||
American Snuff | 18 | 19 | 17 | ||||||||||
Santa Fe | 3 | 2 | 5 | ||||||||||
All Other | 14 | 11 | 6 | ||||||||||
Consolidated depreciation and amortization expense | $ | 103 | $ | 131 | $ | 138 | |||||||
Reconciliation to income from operations before income taxes: | |||||||||||||
Operating income(1)(2)(3) | $ | 3,132 | $ | 2,214 | $ | 2,399 | |||||||
Interest and debt expense | 259 | 234 | 221 | ||||||||||
Interest income | (5 | ) | (7 | ) | (11 | ) | |||||||
Other expense, net | 137 | 34 | 3 | ||||||||||
Income from operations before income taxes | $ | 2,741 | $ | 1,953 | $ | 2,186 | |||||||
-1 | Includes restructuring and/or asset impairment charges of $149 million for the year ended December 31, 2012, see “Restructuring Charges” in note 4. | ||||||||||||
(2) | Includes trademark, goodwill and/or other intangible asset impairment charges of $32 million, $129 million and $48 million for the years ended December 31, 2013, 2012 and 2011, respectively, see “Intangible Assets” in note 3. | ||||||||||||
(3) | Includes NPM Adjustment credits of $478 million for RJR Tobacco and $5 million for Santa Fe for the year ended December 31, 2013, see “— Cost of Products Sold” in note 1. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Balances and Transactions | ' | ||||||||||||
The following is a summary of balances and transactions with such BAT affiliates as of and for the years ended December 31: | |||||||||||||
Balances: | |||||||||||||
2013 | 2012 | ||||||||||||
Accounts receivable, related party | $ | 56 | $ | 61 | |||||||||
Due to related party | — | 1 | |||||||||||
Deferred revenue, related party | 48 | 42 | |||||||||||
Significant transactions: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales | $ | 337 | $ | 342 | $ | 479 | |||||||
Purchases | 27 | 16 | 11 | ||||||||||
RAI common stock purchases from B&W | 296 | 415 | 114 | ||||||||||
Capsule royalty income | 9 | 6 | 2 | ||||||||||
Research and development services billings | 4 | 3 | 5 |
RAI_Guaranteed_Unsecured_Notes1
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Condensed Consolidating Statements of Income | ' | ||||||||||||||||||||||
Condensed Consolidating Statements of Income | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||
Net sales | $ | — | $ | 7,785 | $ | 147 | $ | (33 | ) | $ | 7,899 | ||||||||||||
Net sales, related party | — | 337 | — | — | 337 | ||||||||||||||||||
Net Sales | — | 8,122 | 147 | (33 | ) | 8,236 | |||||||||||||||||
Cost of products sold | — | 3,628 | 83 | (33 | ) | 3,678 | |||||||||||||||||
Selling, general and administrative expenses | 13 | 1,222 | 154 | — | 1,389 | ||||||||||||||||||
Amortization expense | — | 5 | — | — | 5 | ||||||||||||||||||
Trademark and other intangible asset impairment charges | — | 32 | — | — | 32 | ||||||||||||||||||
Operating income (loss) | (13 | ) | 3,235 | (90 | ) | — | 3,132 | ||||||||||||||||
Interest and debt expense | 255 | 113 | 2 | (111 | ) | 259 | |||||||||||||||||
Interest income | (111 | ) | (3 | ) | (2 | ) | 111 | (5 | ) | ||||||||||||||
Other expense (income), net | 129 | (45 | ) | 10 | 43 | 137 | |||||||||||||||||
Income (loss) before income taxes | (286 | ) | 3,170 | (100 | ) | (43 | ) | 2,741 | |||||||||||||||
Provision for (benefit from) income taxes | (95 | ) | 1,154 | (36 | ) | — | 1,023 | ||||||||||||||||
Equity income from subsidiaries | 1,909 | 5 | — | (1,914 | ) | — | |||||||||||||||||
Net income (loss) | $ | 1,718 | $ | 2,021 | $ | (64 | ) | $ | (1,957 | ) | $ | 1,718 | |||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||
Net sales | $ | — | $ | 7,857 | $ | 134 | $ | (29 | ) | $ | 7,962 | ||||||||||||
Net sales, related party | — | 342 | — | — | 342 | ||||||||||||||||||
Net Sales | — | 8,199 | 134 | (29 | ) | 8,304 | |||||||||||||||||
Cost of products sold | — | 4,316 | 34 | (29 | ) | 4,321 | |||||||||||||||||
Selling, general and administrative expenses | 23 | 1,341 | 106 | — | 1,470 | ||||||||||||||||||
Amortization expense | — | 21 | — | — | 21 | ||||||||||||||||||
Restructuring charge | 4 | 145 | — | — | 149 | ||||||||||||||||||
Trademark and other intangible asset impairment charges | — | 82 | 47 | — | 129 | ||||||||||||||||||
Operating income (loss) | (27 | ) | 2,294 | (53 | ) | — | 2,214 | ||||||||||||||||
Interest and debt expense | 228 | 119 | — | (113 | ) | 234 | |||||||||||||||||
Interest income | (113 | ) | (3 | ) | (4 | ) | 113 | (7 | ) | ||||||||||||||
Other expense (income), net | 26 | (44 | ) | 9 | 43 | 34 | |||||||||||||||||
Income (loss) before income taxes | (168 | ) | 2,222 | (58 | ) | (43 | ) | 1,953 | |||||||||||||||
Provision for (benefit from) income taxes | (59 | ) | 762 | (21 | ) | (1 | ) | 681 | |||||||||||||||
Equity income (loss) from subsidiaries | 1,381 | (16 | ) | — | (1,365 | ) | — | ||||||||||||||||
Net income (loss) | $ | 1,272 | $ | 1,444 | $ | (37 | ) | $ | (1,407 | ) | $ | 1,272 | |||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||||
Net sales | $ | — | $ | 7,971 | $ | 116 | $ | (25 | ) | $ | 8,062 | ||||||||||||
Net sales, related party | — | 479 | — | — | 479 | ||||||||||||||||||
Net Sales | — | 8,450 | 116 | (25 | ) | 8,541 | |||||||||||||||||
Cost of products sold | — | 4,460 | 29 | (25 | ) | 4,464 | |||||||||||||||||
Selling, general and administrative expenses | 129 | 1,386 | 91 | — | 1,606 | ||||||||||||||||||
Amortization expense | — | 24 | — | — | 24 | ||||||||||||||||||
Trademark impairment charges | — | 48 | — | — | 48 | ||||||||||||||||||
Operating income (loss) | (129 | ) | 2,532 | (4 | ) | — | 2,399 | ||||||||||||||||
Interest and debt expense | 213 | 125 | — | (117 | ) | 221 | |||||||||||||||||
Interest income | (118 | ) | (4 | ) | (6 | ) | 117 | (11 | ) | ||||||||||||||
Other expense (income), net | 8 | (47 | ) | (1 | ) | 43 | 3 | ||||||||||||||||
Income (loss) before income taxes | (232 | ) | 2,458 | 3 | (43 | ) | 2,186 | ||||||||||||||||
Provision for (benefit from) income taxes | (89 | ) | 875 | (6 | ) | — | 780 | ||||||||||||||||
Equity income from subsidiaries | 1,549 | 20 | — | (1,569 | ) | — | |||||||||||||||||
Net income | $ | 1,406 | $ | 1,603 | $ | 9 | $ | (1,612 | ) | $ | 1,406 | ||||||||||||
Condensed Consolidating Statements of Comprehensive Income | ' | ||||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||
Net income (loss) | $ | 1,718 | $ | 2,021 | $ | (64 | ) | $ | (1,957 | ) | $ | 1,718 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Retirement benefits | 248 | 239 | (1 | ) | (238 | ) | 248 | ||||||||||||||||
Unrealized gain on long-term investments | 5 | 5 | — | (5 | ) | 5 | |||||||||||||||||
Realized loss on hedging instruments | 1 | — | — | — | 1 | ||||||||||||||||||
Cumulative translation adjustment and other | 1 | 1 | 14 | (15 | ) | 1 | |||||||||||||||||
Comprehensive income (loss) | $ | 1,973 | $ | 2,266 | $ | (51 | ) | $ | (2,215 | ) | $ | 1,973 | |||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||
Net income (loss) | $ | 1,272 | $ | 1,444 | $ | (37 | ) | $ | (1,407 | ) | $ | 1,272 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Retirement benefits | 65 | 65 | — | (65 | ) | 65 | |||||||||||||||||
Unrealized gain on long-term investments | 7 | 7 | — | (7 | ) | 7 | |||||||||||||||||
Realized loss on hedging instruments | (14 | ) | — | — | — | (14 | ) | ||||||||||||||||
Cumulative translation adjustment and other | 13 | 13 | 9 | (22 | ) | 13 | |||||||||||||||||
Comprehensive income (loss) | $ | 1,343 | $ | 1,529 | $ | (28 | ) | $ | (1,501 | ) | $ | 1,343 | |||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||||
Net income | $ | 1,406 | $ | 1,603 | $ | 9 | $ | (1,612 | ) | $ | 1,406 | ||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Retirement benefits | (144 | ) | (141 | ) | 6 | 135 | (144 | ) | |||||||||||||||
Unrealized loss on long-term investments | (12 | ) | (12 | ) | — | 12 | (12 | ) | |||||||||||||||
Cumulative translation adjustment and other | (8 | ) | (8 | ) | (11 | ) | 19 | (8 | ) | ||||||||||||||
Comprehensive income | $ | 1,242 | $ | 1,442 | $ | 4 | $ | (1,446 | ) | $ | 1,242 | ||||||||||||
Reclassification Out of Accumulated Other Comprehensive Income Net of Tax | ' | ||||||||||||||||||||||
Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statements of income for the year ended December 31, 2013, were as follows: | |||||||||||||||||||||||
Components | Amount Reclassified | Affected Line Item | |||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
Defined benefit pension and postretirement plans: | |||||||||||||||||||||||
Amortization of prior service costs | $ | (21 | ) | $ | (21 | ) | $ | — | $ | 21 | $ | (21 | ) | Cost of products sold | |||||||||
(18 | ) | (18 | ) | — | 18 | (18 | ) | Selling, general and administrative expenses | |||||||||||||||
Amortization of prior service costs | (39 | ) | (39 | ) | — | 39 | (39 | ) | |||||||||||||||
Deferred taxes | 16 | 16 | — | (16 | ) | 16 | Provision for income taxes | ||||||||||||||||
Net of tax | $ | (23 | ) | $ | (23 | ) | $ | — | $ | 23 | $ | (23 | ) | ||||||||||
Loss on hedging instruments: | |||||||||||||||||||||||
Amortization of realized loss | $ | 2 | $ | — | $ | — | $ | — | $ | 2 | Interest and debt expense | ||||||||||||
Deferred taxes | (1 | ) | — | — | — | (1 | ) | Provision for income taxes | |||||||||||||||
Net of tax | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | |||||||||||||
Total reclassifications | $ | (22 | ) | $ | (23 | ) | $ | — | $ | 23 | $ | (22 | ) | Net income | |||||||||
Condensed Consolidating Statements of Cash Flows | ' | ||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||
Cash flows from (used in) operating activities | $ | 1,519 | $ | 945 | $ | (70 | ) | $ | (1,086 | ) | $ | 1,308 | |||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (80 | ) | (74 | ) | 1 | (153 | ) | |||||||||||||||
Proceeds from termination of joint venture | — | — | 31 | — | 31 | ||||||||||||||||||
Return of intercompany investments | 300 | — | — | (300 | ) | — | |||||||||||||||||
Other, net | 81 | 33 | (1 | ) | (104 | ) | 9 | ||||||||||||||||
Net cash flows from (used in) investing activities | 381 | (47 | ) | (44 | ) | (403 | ) | (113 | ) | ||||||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||||||
Dividends paid on common stock | (1,335 | ) | (1,042 | ) | — | 1,042 | (1,335 | ) | |||||||||||||||
Repurchase of common stock | (775 | ) | — | — | — | (775 | ) | ||||||||||||||||
Excess tax benefit on stock-based compensation plans | 14 | — | — | — | 14 | ||||||||||||||||||
Principal borrowings under term loan credit facility | 500 | — | — | — | 500 | ||||||||||||||||||
Repayment of term loan credit facility | (500 | ) | — | — | — | (500 | ) | ||||||||||||||||
Proceeds from issuance of long-term debt, net of discounts | 1,097 | — | — | — | 1,097 | ||||||||||||||||||
Repayments of long-term debt | (975 | ) | (60 | ) | — | — | (1,035 | ) | |||||||||||||||
Debt issuance costs and financing fees | (18 | ) | — | — | — | (18 | ) | ||||||||||||||||
Dividends paid on preferred stock | (43 | ) | — | — | 43 | — | |||||||||||||||||
Distribution of equity | — | (300 | ) | — | 300 | — | |||||||||||||||||
Make-whole premium for early extinguishment of debt | (155 | ) | — | — | — | (155 | ) | ||||||||||||||||
Other, net | (21 | ) | (220 | ) | 137 | 104 | — | ||||||||||||||||
Net cash flows from (used in) financing activities | (2,211 | ) | (1,622 | ) | 137 | 1,489 | (2,207 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 10 | — | 10 | ||||||||||||||||||
Net change in cash and cash equivalents | (311 | ) | (724 | ) | 33 | — | (1,002 | ) | |||||||||||||||
Cash and cash equivalents at beginning of year | 755 | 1,420 | 327 | — | 2,502 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ | 444 | $ | 696 | $ | 360 | $ | — | $ | 1,500 | |||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||
Cash flows from operating activities | $ | 454 | $ | 1,801 | $ | 29 | $ | (716 | ) | $ | 1,568 | ||||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (79 | ) | (1 | ) | (8 | ) | (88 | ) | ||||||||||||||
Proceeds from termination of joint venture | — | — | 30 | — | 30 | ||||||||||||||||||
Return of intercompany investments | 898 | — | — | (898 | ) | — | |||||||||||||||||
Other, net | 40 | 17 | 1 | (54 | ) | 4 | |||||||||||||||||
Net cash flows from (used in) investing activities | 938 | (62 | ) | 30 | (960 | ) | (54 | ) | |||||||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||||||
Dividends paid on common stock | (1,307 | ) | (684 | ) | — | 684 | (1,307 | ) | |||||||||||||||
Repurchase of common stock | (1,101 | ) | — | — | — | (1,101 | ) | ||||||||||||||||
Excess tax benefit on stock-based compensation plans | 39 | — | — | — | 39 | ||||||||||||||||||
Principal borrowings under term loan credit facility | 750 | — | — | — | 750 | ||||||||||||||||||
Repayment of term loan credit facility | (750 | ) | — | — | — | (750 | ) | ||||||||||||||||
Proceeds from issuance of long-term debt, net of discounts | 2,539 | — | — | — | 2,539 | ||||||||||||||||||
Repayments of long-term debt | (1,018 | ) | (58 | ) | — | — | (1,076 | ) | |||||||||||||||
Debt issuance costs and financing fees | (22 | ) | — | — | — | (22 | ) | ||||||||||||||||
Payment to settle forward starting interest rate contracts | (23 | ) | — | — | — | (23 | ) | ||||||||||||||||
Dividends paid on preferred stock | (43 | ) | — | — | 43 | — | |||||||||||||||||
Distribution of equity | — | (898 | ) | — | 898 | — | |||||||||||||||||
Other, net | (29 | ) | (40 | ) | (2 | ) | 51 | (20 | ) | ||||||||||||||
Net cash flows used in financing activities | (965 | ) | (1,680 | ) | (2 | ) | 1,676 | (971 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 3 | — | 3 | ||||||||||||||||||
Net change in cash and cash equivalents | 427 | 59 | 60 | — | 546 | ||||||||||||||||||
Cash and cash equivalents at beginning of year | 328 | 1,361 | 267 | — | 1,956 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ | 755 | $ | 1,420 | $ | 327 | $ | — | $ | 2,502 | |||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||||
Cash flows from (used in) operating activities | $ | 641 | $ | 1,571 | $ | (3 | ) | $ | (789 | ) | $ | 1,420 | |||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (190 | ) | — | — | (190 | ) | ||||||||||||||||
Net proceeds from sale of business | 79 | 123 | — | — | 202 | ||||||||||||||||||
Proceeds from termination of joint venture | — | — | 32 | — | 32 | ||||||||||||||||||
Return of intercompany investments | 1,040 | — | — | (1,040 | ) | — | |||||||||||||||||
Other, net | 40 | 60 | — | (84 | ) | 16 | |||||||||||||||||
Net cash flows from (used in) investing activities | 1,159 | (7 | ) | 32 | (1,124 | ) | 60 | ||||||||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||||||
Dividends paid on common stock | (1,212 | ) | (740 | ) | (6 | ) | 746 | (1,212 | ) | ||||||||||||||
Repurchase of common stock | (282 | ) | — | — | — | (282 | ) | ||||||||||||||||
Excess tax benefit on stock-based compensation plans | 1 | — | — | — | 1 | ||||||||||||||||||
Repayments of long-term debt | (400 | ) | — | — | — | (400 | ) | ||||||||||||||||
Debt issuance costs and financing fees | (7 | ) | — | — | — | (7 | ) | ||||||||||||||||
Proceeds from termination of interest rate swaps | 185 | 1 | — | — | 186 | ||||||||||||||||||
Dividends paid on preferred stock | (43 | ) | — | — | 43 | — | |||||||||||||||||
Distribution of equity | — | (1,040 | ) | — | 1,040 | — | |||||||||||||||||
Other, net | (41 | ) | (40 | ) | (3 | ) | 84 | — | |||||||||||||||
Net cash flows used in financing activities | (1,799 | ) | (1,819 | ) | (9 | ) | 1,913 | (1,714 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Net change in cash and cash equivalents | 1 | (255 | ) | 15 | — | (239 | ) | ||||||||||||||||
Cash and cash equivalents at beginning of year | 327 | 1,616 | 252 | — | 2,195 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ | 328 | $ | 1,361 | $ | 267 | $ | — | $ | 1,956 | |||||||||||||
Condensed Consolidating Balance Sheets | ' | ||||||||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 444 | $ | 696 | $ | 360 | $ | — | $ | 1,500 | |||||||||||||
Accounts receivable | — | 74 | 32 | — | 106 | ||||||||||||||||||
Accounts receivable, related party | — | 56 | — | — | 56 | ||||||||||||||||||
Notes receivable | — | 1 | 36 | — | 37 | ||||||||||||||||||
Other receivables | 76 | 198 | 6 | (264 | ) | 16 | |||||||||||||||||
Inventories | — | 1,069 | 59 | (1 | ) | 1,127 | |||||||||||||||||
Deferred income taxes, net | — | 614 | 1 | (9 | ) | 606 | |||||||||||||||||
Prepaid expenses and other | 29 | 172 | 7 | (1 | ) | 207 | |||||||||||||||||
Total current assets | 549 | 2,880 | 501 | (275 | ) | 3,655 | |||||||||||||||||
Property, plant and equipment, net | 5 | 986 | 83 | — | 1,074 | ||||||||||||||||||
Trademarks and other intangible assets, net | — | 2,413 | 4 | — | 2,417 | ||||||||||||||||||
Goodwill | — | 7,999 | 12 | — | 8,011 | ||||||||||||||||||
Long-term intercompany notes | 1,842 | 1,295 | — | (3,137 | ) | — | |||||||||||||||||
Investment in subsidiaries | 9,736 | 473 | — | (10,209 | ) | — | |||||||||||||||||
Other assets and deferred charges | 94 | 187 | 18 | (54 | ) | 245 | |||||||||||||||||
Total assets | $ | 12,226 | $ | 16,233 | $ | 618 | $ | (13,675 | ) | $ | 15,402 | ||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||||
Accounts payable | $ | 1 | $ | 169 | $ | 15 | $ | — | $ | 185 | |||||||||||||
Tobacco settlement accruals | — | 1,727 | — | — | 1,727 | ||||||||||||||||||
Deferred revenue, related party | — | 48 | — | — | 48 | ||||||||||||||||||
Other current liabilities | 601 | 744 | 46 | (275 | ) | 1,116 | |||||||||||||||||
Total current liabilities | 602 | 2,688 | 61 | (275 | ) | 3,076 | |||||||||||||||||
Intercompany notes and interest payable | 1,295 | 1,700 | 142 | (3,137 | ) | — | |||||||||||||||||
Long-term debt (less current maturities) | 5,099 | — | — | — | 5,099 | ||||||||||||||||||
Deferred income taxes, net | — | 710 | 2 | (54 | ) | 658 | |||||||||||||||||
Long-term retirement benefits (less current portion) | 38 | 1,172 | 11 | — | 1,221 | ||||||||||||||||||
Other noncurrent liabilities | 25 | 156 | — | — | 181 | ||||||||||||||||||
Shareholders’ equity | 5,167 | 9,807 | 402 | (10,209 | ) | 5,167 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 12,226 | $ | 16,233 | $ | 618 | $ | (13,675 | ) | $ | 15,402 | ||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 755 | $ | 1,420 | $ | 327 | $ | — | $ | 2,502 | |||||||||||||
Accounts receivable | — | 63 | 24 | — | 87 | ||||||||||||||||||
Accounts receivable, related party | — | 61 | — | — | 61 | ||||||||||||||||||
Notes receivable | — | 1 | 34 | — | 35 | ||||||||||||||||||
Other receivables | 369 | 48 | 4 | (405 | ) | 16 | |||||||||||||||||
Inventories | — | 944 | 41 | (1 | ) | 984 | |||||||||||||||||
Deferred income taxes, net | — | 909 | 1 | (2 | ) | 908 | |||||||||||||||||
Prepaid expenses and other | 25 | 188 | 8 | (2 | ) | 219 | |||||||||||||||||
Total current assets | 1,149 | 3,634 | 439 | (410 | ) | 4,812 | |||||||||||||||||
Property, plant and equipment, net | 5 | 1,019 | 12 | 1 | 1,037 | ||||||||||||||||||
Trademarks and other intangible assets, net | — | 2,450 | 5 | — | 2,455 | ||||||||||||||||||
Goodwill | — | 7,999 | 12 | — | 8,011 | ||||||||||||||||||
Long-term intercompany notes | 1,920 | 1,316 | — | (3,236 | ) | — | |||||||||||||||||
Investment in subsidiaries | 8,956 | 456 | — | (9,412 | ) | — | |||||||||||||||||
Other assets and deferred charges | 88 | 165 | 51 | (62 | ) | 242 | |||||||||||||||||
Total assets | $ | 12,118 | $ | 17,039 | $ | 519 | $ | (13,119 | ) | $ | 16,557 | ||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||||
Accounts payable | $ | 1 | $ | 183 | $ | 3 | $ | — | $ | 187 | |||||||||||||
Tobacco settlement accruals | — | 2,489 | — | — | 2,489 | ||||||||||||||||||
Due to related party | — | 1 | — | — | 1 | ||||||||||||||||||
Deferred revenue, related party | — | 42 | — | — | 42 | ||||||||||||||||||
Current maturities of long-term debt | — | 60 | — | — | 60 | ||||||||||||||||||
Other current liabilities | 425 | 910 | 64 | (409 | ) | 990 | |||||||||||||||||
Total current liabilities | 426 | 3,685 | 67 | (409 | ) | 3,769 | |||||||||||||||||
Intercompany notes and interest payable | 1,316 | 1,920 | — | (3,236 | ) | — | |||||||||||||||||
Long-term debt (less current maturities) | 5,035 | — | — | — | 5,035 | ||||||||||||||||||
Deferred income taxes, net | — | 523 | — | (62 | ) | 461 | |||||||||||||||||
Long-term retirement benefits (less current portion) | 58 | 1,752 | 11 | — | 1,821 | ||||||||||||||||||
Other noncurrent liabilities | 26 | 188 | — | — | 214 | ||||||||||||||||||
Shareholders’ equity | 5,257 | 8,971 | 441 | (9,412 | ) | 5,257 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 12,118 | $ | 17,039 | $ | 519 | $ | (13,119 | ) | $ | 16,557 | ||||||||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Results of Operations | ' | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 1,883 | $ | 2,179 | $ | 2,135 | $ | 2,039 | |||||||||
Gross profit | 1,189 | 1,180 | 1,131 | 1,058 | |||||||||||||
Net income(1)(2) | 508 | 461 | 457 | 292 | |||||||||||||
Per share data(3) : | |||||||||||||||||
Basic: | |||||||||||||||||
Net income | 0.92 | 0.84 | 0.84 | 0.54 | |||||||||||||
Diluted: | |||||||||||||||||
Net income | 0.92 | 0.84 | 0.84 | 0.54 | |||||||||||||
2012 | |||||||||||||||||
Net sales | $ | 1,933 | $ | 2,176 | $ | 2,117 | $ | 2,078 | |||||||||
Gross profit(4) | 939 | 1,064 | 1,035 | 945 | |||||||||||||
Net income(5) | 270 | 443 | 420 | 139 | |||||||||||||
Per share data(3) : | |||||||||||||||||
Basic: | |||||||||||||||||
Net income | 0.47 | 0.78 | 0.75 | 0.25 | |||||||||||||
Diluted: | |||||||||||||||||
Net income | 0.47 | 0.78 | 0.74 | 0.25 | |||||||||||||
-1 | Fourth quarter of 2013 net income includes a $32 million trademark impairment charge. | ||||||||||||||||
(2) | Includes NPM Adjustment credits of $261 million in the first quarter of 2013, $90 million in the second quarter of 2013, $69 million in the third quarter of 2013 and $63 million in the fourth quarter of 2013, see “— Cost of Products Sold” in note 1. | ||||||||||||||||
(3) | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the quarters may not equal the total for the year. | ||||||||||||||||
(4) | Third quarter of 2012 gross profit includes an MTM pension/postretirement adjustment of $16 million. Fourth quarter of 2012 gross profit includes an MTM pension/postretirement adjustment of $108 million. | ||||||||||||||||
(5) | First quarter of 2012 net income includes a $149 million restructuring charge. Third quarter of 2012 net income includes a $40 million MTM postretirement adjustment. Fourth quarter of 2012 net income includes a $129 million trademark and other intangible assets charge and an MTM pension adjustment of $289 million. |
Business_and_Summary_of_Signif3
Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Proceeds from divestiture of interest in subsidiaries | $202,000,000 | ' | ' | $202,000,000 |
Operating cycle period of inventories | ' | '12 months | ' | ' |
Capitalized computer software additions | ' | 13,000,000 | 12,000,000 | ' |
Capitalized computer software unamortized balance | ' | 51,000,000 | 55,000,000 | ' |
Software amortization expense | ' | 17,000,000 | 21,000,000 | 24,000,000 |
NPM Adjustment credits | ' | 1,100,000,000 | ' | ' |
NPM historical adjustment | ' | 219,000,000 | ' | ' |
NPM performance adjustment | ' | 264,000,000 | ' | ' |
Advertising costs incurred | ' | 110,000,000 | 72,000,000 | 65,000,000 |
Research and development costs | ' | 72,000,000 | 62,000,000 | 69,000,000 |
Recognized tax position realized upon ultimate settlement | ' | 50.00% | ' | ' |
Defined benefit plan corridor percentage | ' | 10.00% | ' | ' |
April Twenty Thirteen Master Settlement Agreement Payment | ' | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
NPM historical adjustment | ' | 204,000,000 | ' | ' |
Future Master Settlement Agreement Payment | ' | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
NPM historical adjustment | ' | $15,000,000 | ' | ' |
Buildings and improvements | Minimum | ' | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated useful lives (in years) | ' | '20 years | ' | ' |
Buildings and improvements | Maximum | ' | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated useful lives (in years) | ' | '50 years | ' | ' |
Machinery and equipment | Minimum | ' | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated useful lives (in years) | ' | '3 years | ' | ' |
Machinery and equipment | Maximum | ' | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated useful lives (in years) | ' | '30 years | ' | ' |
Computer Software, Intangible Asset | Maximum | ' | ' | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated useful lives (in years) | ' | '5 years | ' | ' |
Certain_Component_of_Cost_of_P
Certain Component of Cost of Products Sold (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' |
State Settlement Agreements | $1,819 | $2,370 | $2,435 |
Federal tobacco quota buyout | 209 | 218 | 229 |
FDA user fees | $127 | $122 | $120 |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Cash and cash equivalents: | ' | ' |
Cash equivalents | $1,443 | $2,100 |
Other assets and deferred charges: | ' | ' |
Auction rate securities | 76 | 70 |
Mortgage-backed security | 13 | 13 |
Marketable equity security | 4 | 4 |
Level 1 | ' | ' |
Cash and cash equivalents: | ' | ' |
Cash equivalents | 1,443 | 2,100 |
Other assets and deferred charges: | ' | ' |
Marketable equity security | 4 | 4 |
Level 3 | ' | ' |
Other assets and deferred charges: | ' | ' |
Auction rate securities | 76 | 70 |
Mortgage-backed security | $13 | $13 |
Financial_Assets_Classified_as
Financial Assets Classified as Level 3 Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | |||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Cost | $119 | $121 | ' | ||
Gross Unrealized Loss | -30 | [1] | -38 | [1] | ' |
Estimated Fair Value | 89 | 83 | ' | ||
Auction Rate Securities | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Cost | 99 | 99 | 99 | ||
Gross Unrealized Loss | -23 | [1] | -29 | [1] | ' |
Estimated Fair Value | 76 | 70 | 63 | ||
Mortgage Backed Securities | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ||
Cost | 20 | 22 | 25 | ||
Gross Unrealized Loss | -7 | [1] | -9 | [1] | ' |
Estimated Fair Value | $13 | $13 | $12 | ||
[1] | Unrealized losses, net of tax, are reported in accumulated other comprehensive loss in RAI's consolidated balance sheets as of December 31, 2013 and 2012. |
Changes_in_Level_3_Investments
Changes in Level 3 Investments (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost, Ending Balance | $119 | $121 |
Estimated Fair Value, Ending Balance | 89 | 83 |
Auction Rate Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost, Beginning Balance | 99 | 99 |
Unrealized gain | ' | ' |
Cost, Ending Balance | 99 | 99 |
Estimated Fair Value, Beginning Balance | 70 | 63 |
Unrealized gain | 6 | 7 |
Estimated Fair Value, Ending Balance | 76 | 70 |
Gross Gain (Loss), Beginning Balance | -29 | -36 |
Unrealized gain | 6 | 7 |
Gross Gain (Loss), Ending Balance | -23 | -29 |
Mortgage Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost, Beginning Balance | 22 | 25 |
Unrealized gain | ' | ' |
Redemptions | -2 | -3 |
Cost, Ending Balance | 20 | 22 |
Estimated Fair Value, Beginning Balance | 13 | 12 |
Unrealized gain | 2 | 4 |
Redemptions | -2 | -3 |
Estimated Fair Value, Ending Balance | 13 | 13 |
Gross Gain (Loss), Beginning Balance | -9 | -13 |
Unrealized gain | 2 | 4 |
Redemptions | ' | ' |
Gross Gain (Loss), Ending Balance | ($7) | ($9) |
Trademarks_Detail
Trademarks (Detail) (Trademarks, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Nov. 30, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Intangible assets excluding goodwill fair value disclosure | ' | $312 |
Impairment | -32 | ' |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Intangible assets excluding goodwill fair value disclosure | ' | $312 |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2012 | 1-May-12 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2009 | Dec. 31, 2009 | Dec. 31, 2009 | |
7.625% guaranteed, notes due 2016 | 7.625% guaranteed, notes due 2016 | Debt Covered by Interest Rate Swap Agreement | 1.05% guaranteed, notes due 2015 | 1.05% guaranteed, notes due 2015 | 3.25% guaranteed, notes due 2022 | 3.25% guaranteed, notes due 2022 | 4.75% guaranteed, notes due 2042 | 4.75% guaranteed, notes due 2042 | Floating to Fixed | Floating to Fixed | Floating to Fixed | Fixed to Floating | |||||||
Minimum | Maximum | ||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of RAI's and RJR's outstanding debt | ' | $5,200,000,000 | $5,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt weighted average interest rate | ' | 4.50% | 4.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount, interest rate contracts | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000,000 | ' | ' | 1,500,000,000 |
Debt instrument maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Oct-15 | ' | 1-Nov-22 | ' | 1-Nov-42 | ' | ' | 1-Jun-12 | 15-Jun-17 | ' |
Proceeds from termination of interest rate swaps | 186,000,000 | ' | ' | 186,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding principle amount of debt redeemed | ' | ' | ' | ' | ' | ' | 775,000,000 | ' | 450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument interest rate | ' | ' | ' | ' | ' | ' | 7.63% | 7.63% | ' | 1.05% | 1.05% | 3.25% | 3.25% | 4.75% | 4.75% | ' | ' | ' | ' |
Loss on extinguishment of debt | ' | -124,000,000 | -21,000,000 | ' | ' | ' | -124,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of debt, swap balance | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt covered by fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative fixed rate of interest | ' | ' | ' | ' | ' | ' | ' | ' | 3.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total RAI debt | ' | ' | ' | ' | 2,550,000,000 | ' | ' | ' | ' | ' | 450,000,000 | ' | 1,100,000,000 | ' | 1,000,000,000 | ' | ' | ' | ' |
Associated losses settled with cash payments | ' | $23,000,000 | $23,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization_of_Derivative_Ins
Amortization of Derivative Instruments Impacted Income Statement (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Interest and debt income | ($24) | ($32) | ($47) |
Other expense (income), net | ($35) | ' | $4 |
Changes_in_Carrying_Amounts_of
Changes in Carrying Amounts of Goodwill by Segment (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill | ' | ' | $11,801 | ' |
Foreign currency translation | 1 | ' | ' | ' |
Less: Accumulated impairment charges | ' | ' | -3,791 | ' |
Net goodwill balance | 8,011 | 8,011 | 8,010 | 8,010 |
RJR Tobacco | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill | ' | ' | 9,065 | ' |
Less: Accumulated impairment charges | ' | ' | -3,763 | ' |
Net goodwill balance | 5,302 | 5,302 | 5,302 | 5,302 |
American Snuff | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill | ' | ' | 2,501 | ' |
Less: Accumulated impairment charges | ' | ' | -28 | ' |
Net goodwill balance | 2,473 | 2,473 | 2,473 | 2,473 |
Santa Fe | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill | ' | ' | 197 | ' |
Net goodwill balance | 197 | 197 | 197 | 197 |
All Other | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill | ' | ' | 38 | ' |
Foreign currency translation | 1 | ' | ' | ' |
Net goodwill balance | $39 | $39 | $38 | $38 |
Carrying_Amounts_of_Indefinite
Carrying Amounts of Indefinite-Lived Intangible Assets by Segment not Subject to Amortization (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Trademarks | Trademarks | Trademarks | Trademarks | Trademarks | Trademarks | Trademarks | Trademarks | Trademarks | Trademarks | Trademarks | Trademarks | Trademarks | Trademarks | Other | Other | Other | Other | Other | Other | Other | Other | Other | Other | ||||||
RJR Tobacco | RJR Tobacco | RJR Tobacco | American Snuff | American Snuff | American Snuff | American Snuff | Santa Fe | Santa Fe | Santa Fe | Santa Fe | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | All Other | All Other | All Other | ||||||||||||
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' | ' | $2,318 | $2,400 | $2,443 | $1,027 | $1,109 | $1,152 | $1,136 | $1,136 | $1,136 | $1,136 | $155 | $155 | $155 | $155 | $104 | $148 | $149 | $99 | $99 | $99 | $99 | $5 | $49 | $50 |
Impairment charge | -32 | -129 | -32 | -129 | -48 | -32 | -82 | -43 | -32 | -82 | -43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -47 | ' | ' | ' | ' | ' | ' | -47 | ' |
Foreign currency translation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | 3 | -1 | ' | ' | ' | ' | -1 | 3 | -1 |
Reclassified to finite-lived | ' | ' | ' | ' | ' | -18 | ' | ' | -18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending Balance | ' | ' | ' | ' | ' | $2,268 | $2,318 | $2,400 | $977 | $1,027 | $1,109 | $1,136 | $1,136 | $1,136 | $1,136 | $155 | $155 | $155 | $155 | $103 | $104 | $148 | $99 | $99 | $99 | $99 | $4 | $5 | $49 |
Carrying_Amounts_of_FiniteLive
Carrying Amounts of Finite-Lived Intangible Assets by Segment Subject to Amortization (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | $33 | ' | ' |
Amortization | -5 | -21 | -24 |
Ending Balance | 46 | 33 | ' |
Trademarks | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | 9 | 15 | 29 |
Amortization | -1 | -6 | -9 |
Impairment charge | ' | ' | -5 |
Reclassified from indefinite-lived | 18 | ' | ' |
Ending Balance | 26 | 9 | 15 |
Other | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | 24 | 39 | 54 |
Amortization | -4 | -15 | -15 |
Ending Balance | 20 | 24 | 39 |
RJR Tobacco | Trademarks | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | ' | 4 | 11 |
Amortization | ' | -4 | -7 |
Reclassified from indefinite-lived | 18 | ' | ' |
Ending Balance | 18 | ' | 4 |
RJR Tobacco | Other | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | 24 | 39 | 54 |
Amortization | -4 | -15 | -15 |
Ending Balance | 20 | 24 | 39 |
American Snuff | Trademarks | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | 9 | 11 | 18 |
Amortization | -1 | -2 | -2 |
Impairment charge | ' | ' | -5 |
Ending Balance | $8 | $9 | $11 |
Details_of_FiniteLived_Intangi
Details of Finite-Lived Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross | $265 | $247 | ' | ' |
Accumulated Amortization | 219 | 214 | ' | ' |
Net | 46 | 33 | ' | ' |
Contract manufacturing agreements | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross | 151 | 151 | ' | ' |
Accumulated Amortization | 131 | 127 | ' | ' |
Net | 20 | 24 | ' | ' |
Trademarks | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Gross | 114 | 96 | ' | ' |
Accumulated Amortization | 88 | 87 | ' | ' |
Net | $26 | $9 | $15 | $29 |
Finite_Lived_Intangible_Assets
Finite Lived Intangible Assets Future Amortization Expense (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Expected Amortization Expense [Line Items] | ' | ' |
2014 | $11 | ' |
2015 | 9 | ' |
2016 | 8 | ' |
2017 | 7 | ' |
2018 | 6 | ' |
Thereafter | 5 | ' |
Net | $46 | $33 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' | ' |
Estimated future cash flows discount rate | ' | ' | 10.00% | 10.00% | 10.50% |
Impairment of other intangible assets | $32 | $129 | $32 | $129 | $48 |
All Other | ' | ' | ' | ' | ' |
Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' | ' |
Impairment of other intangible assets | ' | ' | ' | $47 | ' |
RJR Tobacco | ' | ' | ' | ' | ' |
Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' | ' |
Estimated future cash flows discount rate | ' | ' | 9.75% | ' | ' |
American Snuff | ' | ' | ' | ' | ' |
Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' | ' |
Estimated future cash flows discount rate | ' | ' | 9.75% | ' | ' |
Santa Fe | ' | ' | ' | ' | ' |
Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' | ' |
Estimated future cash flows discount rate | ' | ' | 10.25% | ' | ' |
Trademarks | Minimum | ' | ' | ' | ' | ' |
Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' | ' |
Trade brand of useful life | ' | ' | '1 year | ' | ' |
Trademarks | Maximum | ' | ' | ' | ' | ' |
Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' | ' |
Trade brand of useful life | ' | ' | '15 years | ' | ' |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 24 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Percentage of workforce declination | ' | 10.00% | ' | ' |
Restructuring charge | $149 | ' | $149 | ' |
Restructuring charge, amount utilized | ' | -14 | -78 | -92 |
Other current liabilities | ' | 19 | 16 | 19 |
Other noncurrent liabilities | ' | 38 | ' | 38 |
RJR Tobacco | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Restructuring charge | 138 | ' | ' | ' |
Employee Severance | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Restructuring reserve, cash portion | 111 | ' | ' | ' |
Pension Costs | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Restructuring reserve, cash portion | $38 | ' | ' | ' |
Components_of_Restructuring_Ch
Components of Restructuring Charge Accrued and Utilized (Detail) (USD $) | 12 Months Ended | 24 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Beginning Balance | $71 | $149 | $149 |
Utilized | -14 | -78 | -92 |
Ending Balance | $57 | $71 | $57 |
Components_of_Calculation_of_I
Components of Calculation of Income Per Share (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income Per Share [Line Items] | ' | ' | ' |
Net income | $1,718 | $1,272 | $1,406 |
Basic weighted average shares, in thousands | 544,925 | 565,570 | 582,320 |
Effect of dilutive potential shares: | ' | ' | ' |
Restricted stock units | 2,024 | 2,303 | 3,063 |
Diluted weighted average shares, in thousands | 546,949 | 567,873 | 585,383 |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Leaf tobacco | $1,049 | $919 |
Other raw materials | 66 | 51 |
Work in process | 70 | 63 |
Finished products | 130 | 125 |
Other | 18 | 18 |
Total | 1,333 | 1,176 |
Less LIFO allowance | 206 | 192 |
Inventory Net | $1,127 | $984 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Inventory [Line Items] | ' | ' | ' |
Inventories valued under LIFO | $519 | $443 | ' |
Effect of LIFO Inventory Liquidation on Income | ($14) | ($7) | $12 |
Other_Current_Liabilities_Deta
Other Current Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Liabilities [Line Items] | ' | ' |
Payroll and employee benefits | $179 | $129 |
Pension and other postretirement benefits | 79 | 74 |
Marketing and advertising | 117 | 106 |
Declared dividends | 339 | 326 |
Excise, franchise and property tax | 157 | 149 |
Restructuring | 19 | 16 |
Tobacco quota buyout | 52 | 55 |
Other | 174 | 135 |
Total | $1,116 | $990 |
Provision_for_Income_Taxes_fro
Provision for Income Taxes from Operations (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $563 | $647 | $572 |
State and other | 148 | 78 | 108 |
Subtotal | 711 | 725 | 680 |
Deferred: | ' | ' | ' |
Federal | 254 | -45 | 80 |
State and other | 58 | 1 | 20 |
Subtotal | 312 | -44 | 100 |
Provision for income taxes | $1,023 | $681 | $780 |
Significant_Components_of_Defe
Significant Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Deferred tax assets: | ' | ' | ' |
Pension and other postretirement liabilities | $522 | $726 | ' |
Tobacco settlement accruals | 677 | 990 | ' |
Other accrued liabilities | 71 | 62 | ' |
Other noncurrent liabilities | 150 | 153 | ' |
Subtotal | 1,420 | 1,931 | ' |
Less: valuation allowance | -36 | -33 | -33 |
Deferred tax asset | 1,384 | 1,898 | ' |
Deferred tax liabilities: | ' | ' | ' |
LIFO inventories | -156 | -158 | ' |
Property and equipment | -232 | -242 | ' |
Trademarks and other intangibles | -916 | -936 | ' |
Other | -120 | -115 | ' |
Total deferred tax liabilities | -1,424 | -1,451 | ' |
Net deferred tax asset (liability) | ($40) | $447 | ' |
Current_and_Non_Current_Compon
Current and Non Current Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current and noncurrent components of deferred tax assets and liabilities | ' | ' |
Current deferred tax assets | $606 | $908 |
Noncurrent deferred tax assets | 12 | ' |
Noncurrent deferred tax liabilities | -658 | -461 |
Net deferred tax asset (liability) | ($40) | $447 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Capital loss carryforward | $105 | $99 | ' |
Valuation allowance | 36 | 33 | 33 |
Increase in valuation allowance | 3 | ' | ' |
Federal statutory rate | 35.00% | ' | ' |
Undistributed foreign earnings | 464 | ' | ' |
Overseas investment of foreign earnings | 27 | ' | ' |
Planned overseas investment of foreign earnings | 54 | ' | ' |
Undistributed Foreign Earnings | 383 | ' | ' |
Retirement Deferred Tax Benefits in OCI | 63 | 223 | ' |
Unrealized losses on LT investments Deferred Tax Benefits in OCI | 11 | 14 | ' |
Realized losses on hedging Deferred Tax Benefits in OCI | 8 | 9 | ' |
Cumulative translation adjustments and other deferred Tax Benefits in AOCI | 4 | 16 | ' |
Gross unrecognized income tax benefits in liabilities | 70 | 77 | ' |
Unrecognized income tax benefit interest in liabilities | 7 | 9 | ' |
Unrecognized income tax benefit penalty in liabilities | 1 | 1 | ' |
Unrecognized Tax Benefits That Would Impact Effective Tax Rate | 50 | ' | ' |
Other deferred tax assets | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Valuation allowance | $0 | $0 | $0 |
Pre_Tax_Income_loss_for_Domest
Pre Tax Income (loss) for Domestic and Foreign Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pre-tax income for domestic and foreign operations | ' | ' | ' |
Domestic (includes U.S. exports) | $2,737 | $1,983 | $2,157 |
Foreign | 4 | -30 | 29 |
Income before income taxes | $2,741 | $1,953 | $2,186 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Differences between the provision for income taxes from continuing operations and income taxes | ' | ' | ' |
Income taxes computed at the statutory U.S. federal income tax rate | $959 | $684 | $765 |
State and local income taxes, net of federal tax benefits | 135 | 107 | 96 |
Domestic manufacturing deduction | -55 | -60 | -60 |
Other items, net | -16 | -50 | -21 |
Provision for income taxes | $1,023 | $681 | $780 |
Effective tax rate | 37.30% | 34.90% | 35.70% |
Reconciliation_of_Gross_Unreco
Reconciliation of Gross Unrecognized Income Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of the unrecognized gross tax benefits | ' | ' | ' |
Balance at beginning of year | $68 | $128 | $127 |
Gross increases related to current period tax positions | 4 | 4 | 6 |
Gross increases related to tax positions in prior periods | ' | 1 | 1 |
Gross decreases related to tax positions in prior periods | -3 | -7 | -1 |
Gross increases (decreases) related to audit settlements | -1 | -31 | 1 |
Gross decreases related to lapse of applicable statute of limitations | -6 | -27 | -6 |
Balance at end of year | $62 | $68 | $128 |
Borrowing_Arrangements_Additio
Borrowing Arrangements - Additional Information (Detail) (USD $) | 12 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 15, 2013 | Oct. 08, 2013 | Dec. 31, 2013 | Oct. 08, 2013 | Oct. 08, 2013 | Oct. 08, 2013 | Oct. 08, 2013 | Oct. 08, 2013 |
Term Loan Facility Twenty Thirteen | Term Loan Facility Twenty Thirteen | Term Loan Facility Twenty Thirteen | New Credit Agreement | New Credit Agreement | New Credit Agreement | New Credit Agreement | New Credit Agreement | New Credit Agreement | Credit Agreement | |||
Federal Funds | Eurodollar | Minimum | Maximum | |||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of senior unsecured revolving credit facility | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' |
Credit facility under current borrowing capacity | ' | ' | ' | ' | ' | $1,350 | ' | ' | ' | ' | ' | $750 |
Credit facility under maximum borrowing capacity | ' | ' | ' | ' | 500 | 1,600 | ' | ' | ' | ' | ' | ' |
Credit facility maturity date | ' | ' | 27-Dec-13 | ' | ' | 8-Oct-17 | ' | ' | ' | ' | ' | 29-Jul-15 |
Ratio of debt to EBITDA | ' | ' | ' | ' | ' | '3.00 to 1.00 | ' | ' | ' | ' | ' | ' |
Ratio of EBITDA to interest expense | ' | ' | ' | ' | ' | '4.00 to 1.00 | ' | ' | ' | ' | ' | ' |
Sublimit on the aggregate amount of letters of credit | ' | ' | ' | ' | ' | 300 | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding amount | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' |
Pay rate of commitment fee per annum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.13% | 0.30% | ' |
Debt instrument, basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% | ' | ' | ' |
Interest Rate | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' |
Term Loan, borrowed amount | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Other Short Term Debt | $500 | $750 | $500 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Net_of_Discounts
Long-Term Debt Net of Discounts (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | 1.05% guaranteed, notes due 2015 | 1.05% guaranteed, notes due 2015 | 1.05% guaranteed, notes due 2015 | 3.25% guaranteed, notes due 2022 | 3.25% guaranteed, notes due 2022 | 3.25% guaranteed, notes due 2022 | 4.75% guaranteed, notes due 2042 | 4.75% guaranteed, notes due 2042 | 4.75% guaranteed, notes due 2042 | 4.85% guaranteed, notes due 2023 | 4.85% guaranteed, notes due 2023 | 6.15% guaranteed, notes due 2043 | 6.15% guaranteed, notes due 2043 | 6.75% guaranteed, notes due 2017 | 6.75% guaranteed, notes due 2017 | 7.25% guaranteed, notes due 2037 | 7.25% guaranteed, notes due 2037 | 7.30% guaranteed, notes due 2015 | 7.30% guaranteed, notes due 2015 | 7.625% guaranteed, notes due 2016 | 7.625% guaranteed, notes due 2016 | 7.75% guaranteed, notes due 2018 | 7.75% guaranteed, notes due 2018 | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt (less current maturities) | ' | ' | $450 | $449 | $450 | $1,099 | $1,099 | $1,100 | $991 | $991 | $1,000 | $550 | $550 | $547 | $550 | $765 | $781 | $448 | $448 | ' | $200 | ' | $818 | $249 | $249 |
Long-term debt (less current maturities) | 5,099 | 5,035 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current maturities of long-term debt | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 | ' | 775 | ' | ' | ' |
Total debt | $5,099 | $5,095 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturities_of_RAIs_Notes_Detai
Maturities of RAI's Notes (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
2015 | $450 |
2017 | 700 |
2018 | 249 |
2022 and thereafter | 3,635 |
Long Term Debt Net Of Discounts, Total | $5,034 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
31-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Oct. 31, 2012 | Aug. 15, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
R.J. Reynolds Tobacco Holdings, Inc. | 1.05% guaranteed, notes due 2015 | 1.05% guaranteed, notes due 2015 | 1.05% guaranteed, notes due 2015 | 3.25% guaranteed, notes due 2022 | 3.25% guaranteed, notes due 2022 | 3.25% guaranteed, notes due 2022 | 4.75% guaranteed, notes due 2042 | 4.75% guaranteed, notes due 2042 | 4.75% guaranteed, notes due 2042 | 7.25% guaranteed, notes due 2013 | 7.25% guaranteed, notes due 2013 | 4.85% guaranteed, notes due 2023 | 4.85% guaranteed, notes due 2023 | 6.15% guaranteed, notes due 2043 | 6.15% guaranteed, notes due 2043 | 7.30% guaranteed, notes due 2015 | 7.30% guaranteed, notes due 2015 | 7.625% guaranteed, notes due 2016 | 7.625% guaranteed, notes due 2016 | 7.625% guaranteed, notes due 2016 | 7.625% guaranteed, notes due 2016 | |||||||
Interest Rate Swap | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of debt | $450,000,000 | $1,035,000,000 | $1,076,000,000 | $400,000,000 | ' | ' | $60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of senior debt | ' | ' | ' | ' | 1,100,000,000 | 2,550,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total RAI debt | ' | ' | ' | ' | ' | ' | ' | 450,000,000 | 450,000,000 | 449,000,000 | 1,100,000,000 | 1,099,000,000 | 1,099,000,000 | 1,000,000,000 | 991,000,000 | 991,000,000 | ' | ' | 550,000,000 | 550,000,000 | 550,000,000 | 547,000,000 | ' | 200,000,000 | ' | ' | 818,000,000 | ' |
Interest Rate of Debt | ' | ' | ' | ' | ' | ' | ' | 1.05% | 1.05% | ' | 3.25% | 3.25% | ' | 4.75% | 4.75% | ' | ' | 7.25% | 4.85% | ' | 6.15% | ' | 7.30% | ' | 7.63% | 7.63% | ' | ' |
Long term debt maturity date | ' | ' | ' | ' | ' | ' | ' | 30-Oct-15 | ' | ' | 1-Nov-22 | ' | ' | 1-Nov-42 | ' | ' | ' | ' | 15-Sep-23 | ' | 15-Sep-43 | ' | ' | ' | ' | ' | ' | ' |
Outstanding principle amount of debt redeemed | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 625,000,000 | ' | ' | ' | ' | 200,000,000 | ' | ' | 775,000,000 | ' | ' |
Long term debt maturity year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2013 | ' | ' | ' | ' | '2015 | ' | ' | '2016 | ' | ' |
Loss on early extinguishment of debt | ' | ($124,000,000) | ($21,000,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($21,000,000) | ' | ' | ' | ' | ' | ' | ' | ($124,000,000) | ' | ' | ($35,000,000) |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nov. 30, 1998 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 03, 2013 | Dec. 31, 2013 | Nov. 19, 2013 | Dec. 31, 2013 | Jun. 19, 2012 | 15-May-12 | Aug. 24, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 18, 2011 | Dec. 31, 2012 | Mar. 18, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Apr. 30, 2013 | Mar. 20, 2013 | Dec. 31, 2012 | Mar. 20, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | 31-May-12 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Nov. 30, 2013 | Oct. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Oct. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-13 | Feb. 11, 2013 | Feb. 11, 2013 | Feb. 11, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Feb. 13, 2013 | Feb. 13, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | Sep. 30, 2013 | Apr. 02, 2013 | Apr. 02, 2013 | Apr. 02, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Apr. 30, 2013 | Apr. 18, 2013 | Apr. 18, 2013 | 31-May-13 | 2-May-13 | 2-May-13 | 2-May-13 | Dec. 31, 2013 | Oct. 31, 2013 | 31-May-13 | 23-May-13 | 23-May-13 | 23-May-13 | Nov. 30, 2013 | Dec. 31, 2013 | Jun. 04, 2013 | Jun. 04, 2013 | Jun. 04, 2013 | Nov. 30, 2013 | Dec. 31, 2013 | Jun. 07, 2013 | Jun. 07, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 19, 2013 | Jun. 19, 2013 | Sep. 20, 2013 | Dec. 31, 2013 | Sep. 20, 2013 | Sep. 20, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2006 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Jul. 31, 2013 | Jun. 14, 2013 | Jun. 14, 2013 | Jun. 14, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 17, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Apr. 20, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | 31-May-12 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Jul. 31, 2013 | Jun. 03, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2013 | Mar. 20, 2013 | Mar. 20, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 24-May-13 | Apr. 12, 2013 | 24-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2014 | Jan. 27, 2014 | Jan. 27, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | ||||||||||||||||||||||||||||||||||
LegalMatter | LegalMatter | LegalMatter | LegalMatter | UNITED STATES | CANADA | Florida | Maryland | Missouri | New York | Louisiana | California | VERMONT | VERMONT | Mississippi | Mississippi | Mississippi | Mississippi | Mississippi | 17 States Plus District of Columbia and Puerto Rico | Rjr Tobacco Indemnitee or Both | Liggett | Engle | Engle | Engle | Engle | Engle | Engle | Engle | Individual Smoking And Health Cases | Individual Smoking And Health Cases | Environmental Tobacco Smoke | Smith v, Brown & Williamson | Smith v, Brown & Williamson | Smith v, Brown & Williamson | Izzarelli | Izzarelli | Sherman | Jimmie Lee Brown | Grossman | Grossman | Grossman | Grossman | Grossman | Cohen | Cohen | Cohen | Cohen | Putney | Putney | Putney | Koballa | Koballa | Mack | Mack | Mack | Mack | Mack | Tullo | Tullo | Andy Allen | Andy Allen | Andy Allen | Andy Allen | Jewett | Jewett | Jewett | Marotta | Marotta | Marotta | Marotta | Marotta | Calloway | Calloway | Calloway | Calloway | Calloway | Walker | Walker | Walker | Walker | Baker | James Smith | James Smith | James Smith | James Smith | Schlenther | Schlenther | Schlenther | Schlenther | Schlenther | Ballard | Ballard | Ballard | Ballard | Ballard | Ballard | Lock | Lock | Lock | Lock | Williams | Williams | Williams | Williams | Evers | Evers | Evers | Evers | Evers | Schoeff | Schoeff | Schoeff | Schoeff | Searcy | Searcy | Searcy | Searcy | Searcy | Searcy | Aycock | Aycock | Aycock | Aycock | Aycock | David Cohen | David Cohen | David Cohen | David Cohen | Earl Graham | Earl Graham | Earl Graham | Earl Graham | Earl Graham | Earl Graham | Starr-Blundell | Starr-Blundell | Starr-Blundell | Starr-Blundell | Starr-Blundell | Odum | Odum | Odum | Odum | Thibault | Thibault | Thibault | Thibault | Gafney | Gafney | Gafney | Gafney | Crawford | Crawford | Crawford | Broin | Light Case | Light Case | Parsons | Npm Adjustment Claim For 2003 | Npm Adjustment Claim For 2003 | Npm Adjustment Claim For 2003 | Npm Adjustment Claim For 2003 | Npm Adjustment Claim For 2009 | Npm Adjustment Claim For 2011 And 2012 | Vassallo | FETRA Buyout | West Virginia Ipic | West Virginia Ipic | Broin II | Tribal Court | Smoking And Health Engle Progeny And Healthcare Cost Recovery Cases | Smoking And Health Engle Progeny And Healthcare Cost Recovery Cases | Smoking And Health Engle Progeny And Healthcare Cost Recovery Cases | Smoking And Health Engle Progeny And Healthcare Cost Recovery Cases | Smoking And Health Engle Progeny And Healthcare Cost Recovery Cases | Douglas | Douglas | Douglas | Duke | Duke | Hiott | Hiott | Denton | Skolnick | Skolnick | Skolnick | Skolnick | Skolnick | JTI Judgment | Eclipse Advertising | Ward | Ward | Ward | Ward | Nonsmoking And Health Cases | Class Action | Townsend | Townsend | Townsend | Buonomo | Buonomo | Buonomo | Webb | Webb | Kirkland | Kirkland | Soffer | Soffer | Soffer | Ciccone | Ciccone | Ciccone | Ciccone | Sury | Sury | Sury | Sury | Hallgren | Hallgren | Hallgren | Hallgren | Hallgren | Hallgren | Emmon Smith | Emmon Smith | Emmon Smith | Hancock | Hancock | Hancock | Hancock | Sikes | Sikes | Sikes | Sikes | Sikes | Giddens | Giddens | Giddens | DOJ | Settlement Agreement | Settlement Agreement | Settlement Agreement | Settlement Agreement | Settlement Agreement | Harford | Cheeley | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |||||||||||||||||||||||||||||||||||
State | LegalMatter | LegalMatter | LegalMatter | LegalMatter | LegalMatter | LegalMatter | LegalMatter | LegalMatter | LegalMatter | Plaintiff | LegalMatter | Florida | RJR Tobacco | LegalMatter | Rjr Tobacco Indemnitee or Both | Rjr Tobacco Indemnitee or Both | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | Philip Morris | Case | State | Maximum | Minimum | LegalMatter | Plaintiff | LegalMatter | LegalMatter | LegalMatter | Florida | Missouri | New York | West Virginia | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | Other Defendant | LegalMatter | LegalMatter | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | RJR Tobacco 2012 | Other Defendant | RJR Tobacco 2012 | Other Defendant | State | State | State | 20 Jurisdictions Including Oklahoma | 20 Jurisdictions Including Oklahoma | Ward | Harford | Harford | Cheeley | Cheeley | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LegalMatter | Plaintiff | LegalMatter | LegalMatter | LegalMatter | Case | LegalMatter | LegalMatter | LegalMatter | LegalMatter | LegalMatter | RJR Tobacco 2012 | RJR Tobacco 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of cases filed | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Accrual | ' | $21,000,000 | $21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,400,000 | ' | $5,400,000 | ' | ' | ' | $11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Amount accrued for attorneys' fees and interest | ' | 5,600,000 | 5,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Accrued estimated cost for corrective communication | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Payment for litigation settlement | ' | ' | 109,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 305,000 | 6,200,000 | 6,500,000 | 34,000,000 | 66,500,000 | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Payment for compensatory damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | 1,500,000 | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Payment for attorney fees and interest | ' | ' | 26,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000 | 4,700,000 | 4,700,000 | 8,100,000 | 13,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Other liablities for pending smoking and health litigation | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Growers Trust Fund | ' | 5,200,000,000 | 5,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of cases pending | ' | 165 | 165 | 174 | ' | 149 | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94 | ' | 5,131 | ' | 5,131 | ' | ' | ' | ' | ' | 92 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 564 | 2,572 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of plaintiffs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,323 | ' | 6,323 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of cases pending in federal court | ' | 16 | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,925 | ' | 1,925 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of cases pending in state court | ' | 132 | 132 | ' | ' | ' | ' | 26 | 22 | 19 | 14 | 9 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,206 | ' | 3,206 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Punitive damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 145,000,000,000 | 145,000,000,000 | ' | 145,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | 3,970,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,250,000 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 20,000 | ' | 2,500,000 | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,360,000 | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,280,000 | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | 3,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | 80,000,000 | ' | ' | 25,000,000 | ' | 72,000,000 | ' | 250,000 | ' | ' | ' | ' | ' | 50,000 | ' | ' | 0 | ' | ' | ' | ' | 750,000 | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | 0 | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | |||||||||||||||||||||||||||||||||
Number of cases filed but not served | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 | ' | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of cases tried | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 2 | ' | ' | 80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85 | 38 | 1 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Payment for compensatory and punitive damages | ' | ' | 83,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,800,000 | 53,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Compensatory Damages - Adjusted | ' | 111,459,200 | [1] | 111,459,200 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 111,459,200 | ' | 111,459,200 | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | 8,080,000 | ' | 775,000 | 600,000 | 15,350,000 | [1],[2] | ' | 483,682 | ' | ' | 3,300,000 | [1] | 3,330,000 | ' | ' | 4,500,000 | ' | ' | ' | ' | 1,885,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,480,000 | [1] | ' | ' | ' | ' | 16,100,000 | [1],[3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | [1],[2] | ' | ' | ' | 5,030,000 | [1],[2] | ' | ' | ' | ' | 5,000,000 | [1] | ' | ' | ' | ' | ' | 103,500 | [1] | ' | ' | ' | 4,250,000 | [1] | ' | ' | ' | 1,938,000 | [1] | ' | ' | ' | ' | 7,875,000 | [1] | ' | ' | ' | 1,000,000 | [1],[4] | ' | ' | ' | ' | ' | 4,277,000 | [1] | ' | 4,280,000 | ' | ' | 617,000 | ' | ' | ' | 550,000 | [1] | ' | 550,000 | ' | ' | ' | ' | 50,000 | [1] | ' | ' | ' | ' | 100,000 | [1] | ' | ' | 1,750,000 | [1],[2] | ' | ' | ' | ' | 1,914,000 | [1] | ' | ' | 9,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | 767,000 | [1] | 766,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | [1] | 5,500,000 | ' | 4,060,000 | [1] | 4,060,000 | ' | ' | ' | ' | ' | 2,000,000 | [1] | ' | ' | 1,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | [1],[5] | 1,000,000 | ' | ' | ' | ' | 7,000,000 | [1] | ' | ' | 700 | [1] | ' | ' | ' | 3,520,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59,000 | [1] | 3,000,000 | [1] | ' | ' | ' | ' | ' |
Punitive Damages - Adjusted | ' | 120,965,000 | 120,965,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,965,000 | ' | 120,965,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | 22,500,000 | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | 1,670,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,275,000 | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | 40,800,000 | ' | ' | 15,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000 | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Engle Outstanding Judgments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 232,424,200 | ' | 232,424,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of states involved in MSA | 46 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Previously settled cases | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Cases scheduled for trial | ' | 9 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65 | ' | 65 | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of mistrials declared | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Verdicts returned for tobacco companies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of verdicts returned for tobacco companies by mistrial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Verdicts returned for plaintiff | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of cases dismissed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Compensatory damage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | 13,900,000 | ' | 1,550,000 | 1,200,000 | ' | ' | 1,900,000 | ' | ' | ' | 10,000,000 | ' | ' | 15,100,000 | ' | ' | 1,000,000 | ' | ' | 2,900,000 | 1,000,000 | ' | ' | 4,500,000 | ' | ' | 6,000,000 | ' | ' | 1,100,000 | ' | ' | ' | 3,480,000 | 6,000,000 | ' | ' | ' | 20,500,000 | ' | ' | ' | ' | 275,000 | ' | ' | ' | ' | ' | 600,000 | ' | 5,000,000 | ' | 5,030,000 | 5,000,000 | ' | ' | ' | ' | 8,550,000 | ' | ' | ' | 1,150,000 | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | 3,230,000 | ' | ' | ' | ' | 10,500,000 | ' | 1,000,000 | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | 5,900,000 | ' | ' | 2,060,000 | ' | ' | ' | ' | ' | 2,750,000 | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | 200,000 | ' | ' | ' | 1,750,000 | ' | 5,800,000 | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | 7,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | 30,705 | ' | 1,830,000 | ' | ' | ' | ' | 2,560,000 | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | 10,800,000 | ' | ' | 5,200,000 | ' | 8,000,000 | ' | 100,000 | ' | ' | 5,000,000 | ' | ' | 3,200,000 | ' | ' | 1,000,000 | ' | ' | ' | 1,000,000 | ' | 2,000,000 | ' | ' | ' | ' | 10,000,000 | ' | ' | 110,200 | ' | ' | ' | ' | ' | 4,100,000 | ' | ' | 80,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 330,000 | ' | 3,000,000 | ' | |||||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 58.00% | 58.00% | 50.00% | 50.00% | ' | ' | ' | 25.00% | 5.00% | ' | ' | 33.30% | 33.30% | ' | 30.00% | 35.00% | ' | 30.00% | ' | ' | ' | 65.00% | 51.00% | ' | 55.00% | ' | ' | 45.00% | 15.00% | ' | 20.00% | 10.00% | ' | ' | ' | ' | 58.00% | ' | ' | ' | 27.00% | 52.50% | ' | ' | ' | 10.00% | ' | ' | ' | ' | 55.00% | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | 55.00% | ' | ' | 9.00% | 9.00% | ' | ' | ' | 85.00% | ' | ' | ' | 60.00% | 9.00% | ' | ' | ' | 75.00% | ' | ' | ' | ' | 30.00% | 30.00% | ' | ' | ' | ' | 72.50% | ' | ' | 30.00% | 30.00% | ' | ' | ' | ' | 20.00% | 10.00% | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' | 50.00% | ' | ' | ' | 70.00% | ' | ' | 33.00% | 33.00% | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 45.00% | ' | 25.00% | ' | 40.00% | 100.00% | ' | ' | ' | 30.00% | 30.00% | ' | ' | ' | ' | 30.00% | 20.00% | ' | ' | ' | ' | 51.00% | ' | ' | 77.50% | ' | 90.00% | ' | 10.00% | ' | ' | 40.00% | ' | ' | ' | 30.00% | ' | ' | 20.00% | 20.00% | ' | ' | ' | ' | 25.00% | 25.00% | ' | ' | 70.00% | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' | 51.00% | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.00% | ' | 50.00% | |||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | 42.00% | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | 33.30% | ' | ' | 35.00% | ' | ' | 70.00% | ' | ' | 35.00% | 49.00% | ' | ' | 45.00% | ' | ' | 40.00% | ' | ' | 70.00% | ' | ' | ' | ' | 42.00% | ' | ' | ' | 20.50% | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | 45.00% | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | 45.00% | ' | ' | ' | 82.00% | ' | ' | ' | ' | 15.00% | ' | ' | ' | 31.00% | ' | ' | ' | ' | 25.00% | ' | 40.00% | ' | ' | 40.00% | ' | ' | ' | ' | ' | 27.50% | ' | ' | 40.00% | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | 50.00% | ' | ' | ' | 30.00% | ' | 34.00% | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | 75.00% | ' | 60.00% | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' | 22.50% | ' | 10.00% | ' | 90.00% | ' | ' | 60.00% | ' | ' | 70.00% | ' | ' | 60.00% | ' | ' | ' | 50.00% | ' | 50.00% | ' | ' | ' | ' | 30.00% | ' | ' | 90.00% | ' | ' | ' | ' | ' | 49.00% | ' | ' | 93.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82.00% | ' | 50.00% | ' | |||||||||||||||||||||||||||||||||
Payment of damages and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Payments made for satisfaction of the judgment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Total damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 620,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 103,500 | ' | ' | ' | 4,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | 7,880,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,030,000 | ' | 1,900,000 | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 730,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 487,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 705 | ' | ' | ' | ' | ' | ' | ' | 5,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Judgment interest awarded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Judgment Interest Per Day Awarded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Amended Final Judgment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of plaintiffs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of plaintiff claims dismissed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Lawsuits pending | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 564 | ' | 2,572 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Punitive Damages 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,300,000,000 | ' | 36,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Punitive Damages 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,600,000,000 | ' | 17,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Florida Bond Cap Total | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Florida Bond Cap Per Case | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Bond | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | 700,000 | ' | 5,000,000 | 484,000 | ' | ' | ' | 2,500,000 | ' | ' | 2,400,000 | ' | ' | 300,000 | ' | ' | 1,900,000 | ' | ' | ' | ' | ' | 3,750,000 | ' | ' | ' | 218,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | 27,775 | ' | ' | ' | 620,000 | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | 103,500 | ' | ' | ' | 4,250,000 | ' | ' | ' | 1,770,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | 4,320,000 | ' | ' | ' | ' | ' | ' | ' | ' | 556,000 | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | 264,000 | ' | ' | ' | 3,030,000 | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | 12,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | 7,800 | ' | 730,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,190,000 | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | 5,000,000 | ' | 260,000 | ' | ' | 2,000,000 | ' | ' | ' | 1,000,000 | ' | ' | 500,000 | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Judgment Sought Against Each Defendant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Remitted punitive damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,670,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Remitted compensatory damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Share of damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Replacement Case Bond | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Amount of final judgment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Relinquishment Period for plaintiff's motion, and jurisdiction granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '45 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Funeral Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,705 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Final Judgment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | 264,000 | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 767,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Annual installment of settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Fees and expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Fees And Expenses 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Fees And Expenses 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Lower range of damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Upper range of damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Deposit Into Court Registry Regarding Public Website | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Civil penalties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Payment for litigation settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Payment Sought Under State Settlement Agreement | ' | ' | ' | ' | ' | ' | ' | 12,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Damages state settlement agreement 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Damages State Settlement Agreement 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | 3,800,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Interest Payment Sought Under State Settlement Agreement | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | 2,700,000 | 4,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Attorneys' fees awarded as percentage of total amounts awarded to the State | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Attorneys' fees awarded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Accumulated interest awarded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
MSA Disputed Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 647,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Adjusted MSA Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 615,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Released MSA Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of states seeking declaratory orders for Qualifying Statuses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of states in arbitration for diligent enforcement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Courts deciding whether dispute is arbitrable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47 | ' | 48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Percentage of Allocable shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46.00% | 43.00% | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Percentage of Reduction in Ultimate Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Combined allocable shares percentage maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.68% | 14.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Maximum remaining amount, NPM Adjustment claim | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 266,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Antitrust/CPTEF | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Percentage of amount to Fund States' Antitrust/Consumer Protection Tobacco | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Disputed Notices | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 841,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of jurisdictions that have joined the settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22 | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Number of non-settling states that motions pending to vacate and/or modify the Award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Judgment Entered Against JTI in Brazil That JTI Believes RJR and RJR Tobacco Liable For | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Total Cost of FETRA buyout | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
FETRA payable to Quota tobacco holders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Liquidation of Quota tobacco stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 290,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Annual expense under FETRA for 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 165,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Share of Fetra buyout | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
Operating Leases, Rent Expense | ' | ' | $24,000,000 | $19,000,000 | $18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||
[1] | Unless otherwise noted, compensatory damages in these cases are adjusted to reflect the jury's allocation of comparative fault. Punitive damages are not so adjusted. The amounts listed above do not include attorneys' fees or statutory interest that may apply to the judgments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The court did not apply comparative fault in the final judgment. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | In its ruling on the post-trial motions, the court determined that the jury's apportionment of comparative fault did not apply to the compensatory damages award and found the defendants jointly and severally liable. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | The court held the defendants liable for the entire $1 million, even though the jury allocated 40% of fault to the plaintiff and 60% to the defendants. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | The trial court held the defendants liable for the entire $1 million, even though the jury allocated 50% of fault to the plaintiff and 50% to the defendants. |
Categories_of_US_TobaccoRelate
Categories of U.S. Tobacco-Related Cases Pending against RJR Tobacco (Detail) | 12 Months Ended | |
Dec. 31, 2013 | ||
LegalMatter | ||
Individual Smoking And Health Cases | ' | |
Contingent Liabilities [Line Items] | ' | |
RJR Tobacco's Case Numbers as of December 31, 2013 | 94 | |
Change in Number of Cases Since September 30, 2013 Increase/(Decrease) | -2 | |
West Virginia Ipic | ' | |
Contingent Liabilities [Line Items] | ' | |
RJR Tobacco's Case Numbers as of December 31, 2013 | 1 | [1] |
Number of Plaintiffs | 564 | [1] |
Change in Number of Cases Since September 30, 2013 Increase/(Decrease) | 534 | [1] |
Engle | ' | |
Contingent Liabilities [Line Items] | ' | |
RJR Tobacco's Case Numbers as of December 31, 2013 | 5,131 | [2] |
Number of Plaintiffs | 6,323 | [2] |
Change in Number of Cases Since September 30, 2013 Increase/(Decrease) | -56 | [2] |
Increase/ (Decrease) in Number of Plaintiffs | -21 | [2] |
Broin II | ' | |
Contingent Liabilities [Line Items] | ' | |
RJR Tobacco's Case Numbers as of December 31, 2013 | 2,572 | |
Change in Number of Cases Since September 30, 2013 Increase/(Decrease) | -2 | |
Class Action | ' | |
Contingent Liabilities [Line Items] | ' | |
RJR Tobacco's Case Numbers as of December 31, 2013 | 8 | |
September 30, 2013 Increase/(Decrease) | 'No change | |
Healthcare Cost Recovery Cases | ' | |
Contingent Liabilities [Line Items] | ' | |
RJR Tobacco's Case Numbers as of December 31, 2013 | 2 | |
September 30, 2013 Increase/(Decrease) | 'No change | |
State Settlement Agreements Enforcement And Validity Adjustments | ' | |
Contingent Liabilities [Line Items] | ' | |
RJR Tobacco's Case Numbers as of December 31, 2013 | 31 | |
September 30, 2013 Increase/(Decrease) | 'No change | |
Antitrust | ' | |
Contingent Liabilities [Line Items] | ' | |
RJR Tobacco's Case Numbers as of December 31, 2013 | 1 | |
September 30, 2013 Increase/(Decrease) | 'No change | |
Other Litigation And Developments | ' | |
Contingent Liabilities [Line Items] | ' | |
RJR Tobacco's Case Numbers as of December 31, 2013 | 12 | |
Change in Number of Cases Since September 30, 2013 Increase/(Decrease) | 2 | |
[1] | Includes as one case the approximately 564 cases pending as a consolidated action In Re: Tobacco Litigation Individual Personal Injury Cases, sometimes referred to as West Virginia IPIC cases, described below. The West Virginia IPIC cases have been separated from the Individual Smoking and Health cases for reporting purposes. | |
[2] | The Engle Progeny cases have been separated from the Individual Smoking and Health cases for reporting purposes. The number of cases has decreased as the result of many of the federal and state court cases being dismissed or duplicate actions being consolidated. |
Categories_of_US_TobaccoRelate1
Categories of U.S. Tobacco-Related Cases Pending against RJR Tobacco (Parenthetical) (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
LegalMatter | LegalMatter | |
Contingent Liabilities [Line Items] | ' | ' |
Number of cases pending | 165 | 174 |
West Virginia Ipic | ' | ' |
Contingent Liabilities [Line Items] | ' | ' |
Number of cases pending | 564 | ' |
Verdicts_in_Individual_Engle_P
Verdicts in Individual Engle Progeny Cases have been Tried and Remain Pending (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cohen | Cohen | Townsend | Townsend | Buonomo | Buonomo | Mack | Soffer | Ciccone | Hallgren | Hallgren | Emmon Smith | Calloway | Hancock | Sikes | James Smith | Schlenther | Ballard | Lock | Williams | Evers | Schoeff | Marotta | Searcy | Aycock | Aycock | Earl Graham | Earl Graham | Starr-Blundell | Odum | Skolnick | Skolnick | Thibault | Grossman | Grossman | Gafney | Crawford | Harford | Cheeley | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | RJR Tobacco | Earline Alexander | Huish | Piendle | Clay | Martin | Campbell | Gray | Hall | Bowman | Reese | Weingart | Douglas | Ward | Sherman | Jimmie Lee Brown | Koballa | Kirkland | Duke | Walker | Hiott | Sury | Verdicts In Individual Cases Pending | Verdicts In Individual Cases Pending | Verdicts in individual cases accrued | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cohen | Townsend | Buonomo | Webb | Mack | Soffer | Ciccone | Hallgren | Emmon Smith | Calloway | Hancock | Sikes | James Smith | Schlenther | Ballard | Lock | Williams | Evers | Schoeff | Marotta | Searcy | Aycock | Earl Graham | Starr-Blundell | Odum | Skolnick | Thibault | Grossman | Gafney | Crawford | Harford | Cheeley | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Claims and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.30% | 51.00% | 77.50% | 90.00% | 65.00% | 40.00% | 30.00% | 25.00% | 70.00% | 27.00% | 5.00% | 51.00% | 55.00% | 50.00% | 55.00% | 9.00% | 85.00% | 60.00% | 75.00% | 58.00% | 30.00% | 72.50% | 20.00% | 10.00% | 50.00% | 30.00% | 70.00% | 75.00% | 33.00% | 70.00% | 18.00% | 50.00% | 51.00% | 25.00% | 27.50% | 60.00% | 66.00% | 39.00% | 60.00% | 65.00% | 30.00% | 30.00% | 3.00% | 5.00% | 30.00% | 50.00% | 50.00% | 30.00% | 10.00% | 25.00% | 10.00% | 40.00% | 20.00% | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | $111,459,200 | [1] | $3,300,000 | [1] | $3,330,000 | $5,500,000 | [1] | $5,500,000 | $4,060,000 | [1] | $4,060,000 | $1,885,000 | [1] | $2,000,000 | [1] | $1,000,000 | [1] | $1,000,000 | [1],[2] | $1,000,000 | $7,000,000 | [1] | $16,100,000 | [1],[3] | $700 | [1] | $3,520,000 | [1] | $600,000 | [1],[4] | $5,030,000 | [1],[4] | $5,000,000 | [1] | $103,500 | [1] | $4,250,000 | [1] | $1,938,000 | [1] | $7,875,000 | [1] | $3,480,000 | [1] | $1,000,000 | [1],[5] | $4,277,000 | [1] | $4,280,000 | $550,000 | [1] | $550,000 | $50,000 | [1] | $100,000 | [1] | $767,000 | [1] | $766,500 | $1,750,000 | [1],[4] | $15,350,000 | [1],[4] | $483,682 | $1,914,000 | [1] | $9,000,000 | [1] | $59,000 | [1] | $3,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,275,000 | [6] | $188,000 | [6] | $1,100,000 | [6] | $2,100,000 | [6] | $3,300,000 | [6] | $3,040,000 | [6] | $4,200,000 | [6] | $3,250,000 | [6] | $450,000 | [6] | $1,065,000 | [6] | $4,500 | [6] | $250,000 | [6] | $487,000 | [6] | $775,000 | [6] | $600,000 | [6] | $300,000 | [6] | $260,000 | [6] | $7,676 | [6] | $27,500 | [6] | $730,000 | [6] | $500,000 | [6] | $5,456,676 | [6] | $4,663,000 | [6] | $13,790,000 | [6] |
Punitive Damages | $120,965,000 | ' | $10,000,000 | $20,000,000 | $40,800,000 | ' | $15,700,000 | ' | ' | ' | $750,000 | ' | $20,000,000 | $17,250,000 | ' | $2,000,000 | $20,000 | $2,500,000 | ' | ' | ' | ' | $30,000,000 | ' | $1,670,000 | ' | ' | ' | ' | ' | ' | ' | ' | $1,275,000 | $22,500,000 | ' | ' | $1,000,000 | ' | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,500,000 | $1,500,000 | $180,000 | $17,000,000 | $25,000,000 | ' | $2,000,000 | $12,500,000 | ' | ' | ' | ' | $1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | $1,700,000 | $21,180,000 | $39,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Unless otherwise noted, compensatory damages in these cases are adjusted to reflect the jury's allocation of comparative fault. Punitive damages are not so adjusted. The amounts listed above do not include attorneys' fees or statutory interest that may apply to the judgments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The trial court held the defendants liable for the entire $1 million, even though the jury allocated 50% of fault to the plaintiff and 50% to the defendants. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | In its ruling on the post-trial motions, the court determined that the jury's apportionment of comparative fault did not apply to the compensatory damages award and found the defendants jointly and severally liable. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | The court did not apply comparative fault in the final judgment. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | The court held the defendants liable for the entire $1 million, even though the jury allocated 40% of fault to the plaintiff and 60% to the defendants. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | Compensatory damages are adjusted to reflect the reduction required by the allocation of fault. Punitive damages are not adjusted and reflect the amount of the final judgment(s) signed by the trial court judge(s). The amounts listed above do not include attorneys' fees or statutory interest that apply to the judgments. |
Verdicts_in_Individual_Engle_P1
Verdicts in Individual Engle Progeny Cases have been Tried and Remain Pending (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Apr. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Hallgren | Hallgren | Searcy | Searcy | Co-Defendant | Co-Defendant | |
Hallgren | Searcy | |||||
Schedule of Claims and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Compensatory Damages | $1,000,000 | $2,000,000 | $1,000,000 | $6,000,000 | ' | ' |
Allocation of fault to plaintiff | 50.00% | 50.00% | 40.00% | 40.00% | ' | ' |
Allocation of fault to defendants | ' | ' | ' | ' | 50.00% | 60.00% |
Commitments_and_Contingencies_2
Commitments and Contingencies Related to Settlements (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | |
2011 | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Annual Payments | $8,004 | [1] |
Total | 9,364 | |
Settlement expenses | 2,435 | |
Settlement cash payments | 2,492 | |
2011 | Mississippi | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 136 | [1] |
2011 | Florida | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 440 | [1] |
2011 | Texas | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 580 | [1] |
2011 | Minnesota | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 204 | [1] |
2012 | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Annual Payments | 8,004 | [1] |
Total | 9,364 | |
Settlement expenses | 2,370 | |
Settlement cash payments | 2,414 | |
2012 | Mississippi | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 136 | [1] |
2012 | Florida | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 440 | [1] |
2012 | Texas | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 580 | [1] |
2012 | Minnesota | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 204 | [1] |
2013 | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Annual Payments | 8,004 | [1] |
Total | 9,364 | |
Settlement expenses | 1,819 | |
Settlement cash payments | 2,582 | |
2013 | Mississippi | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 136 | [1] |
2013 | Florida | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 440 | [1] |
2013 | Texas | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 580 | [1] |
2013 | Minnesota | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 204 | [1] |
2014 | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Annual Payments | 8,004 | [1] |
Total | 9,364 | |
2014 | Minimum | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Projected settlement expenses | 1,900 | |
Projected settlement cash payments | 2,000 | |
2014 | Mississippi | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 136 | [1] |
2014 | Florida | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 440 | [1] |
2014 | Texas | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 580 | [1] |
2014 | Minnesota | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 204 | [1] |
2015 | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Annual Payments | 8,004 | [1] |
Total | 9,364 | |
2015 | Minimum | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Projected settlement expenses | 1,900 | |
Projected settlement cash payments | 1,900 | |
2015 | Mississippi | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 136 | [1] |
2015 | Florida | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 440 | [1] |
2015 | Texas | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 580 | [1] |
2015 | Minnesota | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 204 | [1] |
2016 | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Annual Payments | 8,004 | [1] |
Total | 9,364 | |
2016 | Minimum | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Projected settlement expenses | 1,900 | |
Projected settlement cash payments | 1,900 | |
2016 | Mississippi | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 136 | [1] |
2016 | Florida | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 440 | [1] |
2016 | Texas | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 580 | [1] |
2016 | Minnesota | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 204 | [1] |
2017 | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Annual Payments | 8,004 | [1] |
Total | 9,364 | |
2017 | Minimum | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Projected settlement expenses | 2,000 | |
Projected settlement cash payments | 1,900 | |
2017 | Mississippi | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 136 | [1] |
2017 | Florida | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 440 | [1] |
2017 | Texas | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 580 | [1] |
2017 | Minnesota | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 204 | [1] |
Thereafter | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Annual Payments | 8,004 | [1] |
Total | 9,364 | |
Thereafter | Minimum | ' | |
Remaining Jurisdictions' Settlement: | ' | |
Projected settlement expenses | 2,000 | |
Projected settlement cash payments | 2,000 | |
Thereafter | Mississippi | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 136 | [1] |
Thereafter | Florida | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 440 | [1] |
Thereafter | Texas | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | 580 | [1] |
Thereafter | Minnesota | ' | |
First Four States' Settlements: | ' | |
Annual Settlement Payment | $204 | [1] |
[1] | Subject to adjustments for changes in sales volume, inflation and other factors. All payments are to be allocated among the companies on the basis of relative market share. For further information, see "- State Settlement Agreements - Enforcement and Validity; Adjustments" below. |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details 1) (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
State Settlement Payment Expense [Line Items] | ' |
Year for which NPM Adjustment calculated year one | '2004 |
Year for which NPM Adjustment calculated year two | '2005 |
Year for which NPM Adjustment calculated year three | '2006 |
Year for which NPM Adjustment calculated year four | '2007 |
Year for which NPM Adjustment Calculated year five | '2008 |
Year for which NPM Adjustment calculated year six | '2009 |
Year for which NPM Adjustment calculated year seven | '2010 |
Year in which deduction for NPM Adjustment was taken year one | '2007 |
Year in which deduction for NPM Adjustment was taken year two | '2008 |
Year in which deduction for NPM Adjustment was taken year three | '2009 |
Year in which deduction for NPM Adjustment was taken year four | '2010 |
Year in which deduction for NPM Adjustment was taken year five | '2011 |
Year in which deduction for NPM Adjustment was taken year six | '2012 |
Year in which deduction for NPM Adjustment was taken year seven | '2013 |
RJR Tobacco's approximate share of disputed NPM adjustment amount year one | $562 |
RJR Tobacco's approximate share of disputed NPM adjustment amount year two | 445 |
RJR Tobacco's approximate share of disputed NPM adjustment amount year three | 419 |
RJR Tobacco's approximate share of disputed NPM adjustment amount year four | 435 |
RJR Tobacco's approximate share of disputed NPM adjustment amount year five | 468 |
RJR Tobacco's approximate share of disputed NPM adjustment amount year six | 469 |
RJR Tobacco's approximate share of disputed NPM adjustment amount year seven | $461 |
Noncancellable_Operating_Lease
Noncancellable Operating Leases Future Minimum Lease Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Schedule of Operating Leases [Line Items] | ' |
2014 | $22 |
2015 | 17 |
2016 | 14 |
2017 | 9 |
2018 | 5 |
Thereafter | 1 |
Total | $68 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Right | Stock Repurchase Program | Stock Repurchase Program | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | |||
Shareholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized preferred stock, shares | 100,000,000 | 100,000,000 | ' | ' | ' | 4,000,000 | 1,000,000 | ' | ' |
Authorized preferred stock, par value | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' |
Authorized common stock, shares | 1,600,000,000 | 1,600,000,000 | ' | ' | ' | ' | ' | ' | ' |
Authorized common stock, par value | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, issued shares | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Preferred stock, outstanding shares | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Dividends declared with respect to Series B Preferred Stock | ' | ' | ' | ' | ' | ' | $43,000,000 | $43,000,000 | $43,000,000 |
Declaration of Dividend | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock split | 'Two-for-one stock split | ' | ' | ' | ' | ' | ' | ' | ' |
Number of rights associated with each share of common stock | 0.25 | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired minimum beneficial ownership of RAI common stock for rights exercisable | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Days after acquisition | '10 days | ' | ' | ' | ' | ' | ' | ' | ' |
Rights exercisable for RAI's series A Junior participating preferred stock at purchase price | 130 | ' | ' | ' | ' | ' | ' | ' | ' |
Share of RAIs Series A Junior rights exercisable | 0.01 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of times of exercise price right holder entitled to receive common stock | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding shares of RAI common stock | 2,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage of RAI's common stock | 42.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in ownership percentage of RAI's common stock | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Shares repurchased and cancelled | 15,917,174 | 24,944,233 | 6,776,637 | 47,638,044 | 15,917,174 | ' | ' | ' | ' |
Common stock repurchased | 775,000,000 | 1,101,000,000 | 282,000,000 | 2,100,000,000 | 750,000,000 | ' | ' | ' | ' |
Issuance of shares of RAI common stock on settlement | 1,572,389 | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of shares purchased that forfeited with respect to tax liabilities associated with restricted stock vesting | $25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares purchased that forfeited with respect to tax liabilities associated with restricted stock vesting under its LTIP | 574,383 | ' | ' | ' | ' | ' | ' | ' | ' |
Declared_Quarterly_Cash_Divide
Declared Quarterly Cash Dividends per Share of Common Stock (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Common Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared per share | $0.63 | $0.63 | $0.63 | $0.59 | $0.59 | $0.59 | $0.59 | $0.56 | $0.56 | $0.53 | $0.53 | $0.53 | $2.48 | $2.33 | $2.15 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Loss Net of Tax (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Balance at December 31, 2012 | ($311) |
Other comprehensive income before reclassifications | 277 |
Amounts reclassified from accumulated other comprehensive income (loss) | -22 |
Net current-period other comprehensive income | 255 |
Balance at December 31, 2013 | -56 |
Accumulated Defined Benefit Plans Adjustment | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Balance at December 31, 2012 | -265 |
Other comprehensive income before reclassifications | 271 |
Amounts reclassified from accumulated other comprehensive income (loss) | -23 |
Net current-period other comprehensive income | 248 |
Balance at December 31, 2013 | -17 |
Accumulated Net Unrealized Investment Gain (Loss) | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Balance at December 31, 2012 | -21 |
Other comprehensive income before reclassifications | 5 |
Net current-period other comprehensive income | 5 |
Balance at December 31, 2013 | -16 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Balance at December 31, 2012 | -14 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1 |
Net current-period other comprehensive income | 1 |
Balance at December 31, 2013 | -13 |
Accumulated Translation Adjustment and Other | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Balance at December 31, 2012 | -11 |
Other comprehensive income before reclassifications | 1 |
Net current-period other comprehensive income | 1 |
Balance at December 31, 2013 | ($10) |
Reclassification_Out_of_Accumu
Reclassification Out of Accumulated Other Comprehensive Loss and Affected Line Items in Condensed Consolidated Statement of Income (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Cost of products sold | ($3,678) | [1] | ($4,321) | [1] | ($4,464) | [1] |
Interest and debt expense | -259 | -234 | -221 | |||
Selling, general and administrative expenses | -1,389 | -1,470 | -1,606 | |||
Income before income taxes | 2,741 | 1,953 | 2,186 | |||
Provision for income taxes | -1,023 | -681 | -780 | |||
Net income | 1,718 | 1,272 | 1,406 | |||
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Net income | -22 | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Cost of products sold | -21 | ' | ' | |||
Selling, general and administrative expenses | -18 | ' | ' | |||
Income before income taxes | -39 | ' | ' | |||
Provision for income taxes | 16 | ' | ' | |||
Net income | -23 | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Interest and debt expense | 2 | ' | ' | |||
Provision for income taxes | -1 | ' | ' | |||
Net income | $1 | ' | ' | |||
[1] | Excludes excise taxes of $3,730 million, $3,923 million and $4,107 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Changes_in_Common_Stock_Outsta
Changes in Common Stock Outstanding (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of Common Stock Outstanding [Line Items] | ' | ' | ' |
Shares outstanding at beginning of year | 552,940,767 | 576,135,199 | 583,043,872 |
LTIP shares forfeited | ' | ' | -433 |
Tax shares repurchased and cancelled | -574,383 | ' | ' |
Shares repurchased and cancelled | -15,917,174 | -24,944,233 | -6,776,637 |
Equity incentive award plan shares issued | 31,425 | 31,039 | 30,654 |
Shares outstanding at end of year | 538,053,024 | 552,940,767 | 576,135,199 |
LTIP | ' | ' | ' |
Reconciliation of Common Stock Outstanding [Line Items] | ' | ' | ' |
Tax shares repurchased and cancelled | ' | -921,646 | -162,257 |
Shares issued from vesting of restricted stock units | ' | 2,640,408 | ' |
Omnibus Plan | ' | ' | ' |
Reconciliation of Common Stock Outstanding [Line Items] | ' | ' | ' |
Tax shares repurchased and cancelled | -574,383 | ' | ' |
Shares issued from vesting of restricted stock units | 1,572,389 | ' | ' |
Stock_Plans_Additional_Informa
Stock Plans - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 13, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred stock units granted | 3,500 | ' | ' | ' |
Issuable common stock under Equity Incentive Award Plan | ' | 2,000,000 | ' | ' |
Shares available for grant under Equity Incentive Award Plan | ' | 1,036,806 | ' | ' |
Compensation expense related to Equity Incentive Award Plan | ' | $55 | $42 | $38 |
Common shares issuable under Omnibus Plan | ' | 38,000,000 | ' | ' |
Restricted stock unit award adjustment upper end of range | ' | 150.00% | ' | ' |
Cumulative dividend threshold | ' | $7.08 | $6.72 | $6.36 |
Restricted stock unit award adjustment | ' | 50.00% | ' | ' |
Unrecognized compensation costs related to restricted stock units | ' | $55,000,000 | ' | ' |
Weighted-average period of unrecognized compensation costs | ' | '1 year 9 months 15 days | ' | ' |
Excess tax benefit on stock-based compensation plans | ' | 14 | 39 | 1 |
Intrinsic value of fully vested outstanding and exercisable options | ' | ' | ' | 1 |
Equity Incentive Award Plan | ' | ' | ' | ' |
Compensation expense related to Equity Incentive Award Plan | ' | $7 | $4 | $5 |
Information_Regarding_Restrict
Information Regarding Restricted Stock-based Awards Outstanding (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Grant Year 2011 | Grant Price $33.99 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares Granted | 1,561,331 |
Grant Price | $33.99 |
Number of Shares Cancelled | 174,074 |
Grant Year 2011 | Grant Price $33.59 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares Granted | 3,874 |
Grant Price | $39.59 |
Number of Shares Cancelled | 3,874 |
Grant Year 2012 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares Granted | 1,222,534 |
Grant Price | $42.16 |
Number of Shares Cancelled | 108,128 |
Grant Year 2013 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares Granted | 1,112,436 |
Grant Price | $43.36 |
Number of Shares Cancelled | 19,505 |
Changes_in_RAI_Restricted_Stoc
Changes in RAI Restricted Stock Units (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Stock Units | ' |
Outstanding at beginning of year | 4,131,852 |
Granted | 1,112,436 |
Forfeited | -45,417 |
Vested | -1,604,277 |
Outstanding at end of year | 3,594,594 |
Weighted Average Grant Date Fair Value | ' |
Weighted Average Grant Date Fair Value, Outstanding at beginning of year | $33.36 |
Weighted Average Grant Date Fair Value, Granted | $43.36 |
Weighted Average Grant Date Fair Value, Forfeited | $40.91 |
Weighted Average Grant Date Fair Value, Vested | $26.63 |
Weighted Average Grant Date Fair Value, Outstanding at end of year | $39.37 |
Compensation_Expense_Related_t
Compensation Expense Related to Stock Based Compensation and Related Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total compensation expense | $55 | $42 | $38 |
Total related tax benefits | 19 | 15 | 13 |
2008 restricted stock | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total compensation expense | ' | ' | 1 |
2009 restricted stock units | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total compensation expense | ' | 2 | 12 |
2010 restricted stock units | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total compensation expense | 2 | 13 | 12 |
2011 restricted stock units | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total compensation expense | 20 | 14 | 13 |
2012 restricted stock units | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total compensation expense | 18 | 13 | ' |
2013 restricted stock units | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total compensation expense | $15 | ' | ' |
Amounts_Related_to_Unvested_Om
Amounts Related to Unvested Omnibus Plan Restricted Stock Grants (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Other current liabilities | $10 | $10 |
Other noncurrent liabilities | 9 | 8 |
Paid-in capital | $94 | $80 |
Changes_in_RAIs_Stock_Options_
Changes in RAI's Stock Options (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Options | ' | ' |
Outstanding at beginning of year | 40,000 | 40,000 |
Expired | -40,000 | ' |
Exercised | ' | ' |
Outstanding at end of year | ' | 40,000 |
Exercisable at end of year | ' | 40,000 |
Weighted Average Exercise Price | ' | ' |
Outstanding at beginning of year | $17.45 | $17.45 |
Expired | $17.45 | ' |
Exercised | ' | ' |
Outstanding at end of year | ' | $17.45 |
Exercisable at end of year | ' | $17.45 |
Equity_Compensation_Plan_Infor
Equity Compensation Plan Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) | 5,391,891 | [1] |
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights (b) | ' | |
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) | 32,646,910 | |
Equity Compensation Plans Approved by Security Holders | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) | 5,391,891 | [1] |
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights (b) | ' | |
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) | 31,610,104 | |
Equity Compensation Plans Not Approved by Security Holders | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights (b) | ' | [2] |
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) | 1,036,806 | [2] |
[1] | Consists of restricted stock units. These restricted stock units represent the maximum number, 150%, of shares to be awarded under the best-case targets that may not be achieved, and accordingly, may overstate expected dilution. | |
[2] | The EIAP was approved by RJR's sole shareholder, NGH, prior to RJR's spin-off on June 15, 1999. |
Equity_Compensation_Plan_Infor1
Equity Compensation Plan Information (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Restricted stock unit award adjustment upper end of range | 150.00% |
Changes_in_Benefit_Obligations
Changes in Benefit Obligations (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in benefit obligations: | ' | ' | ' |
Plan amendments | $157 | ' | ' |
Change in plan assets: | ' | ' | ' |
Beginning balance | 444 | ' | ' |
Ending balance | 447 | ' | 494 |
Pension Benefits | ' | ' | ' |
Change in benefit obligations: | ' | ' | ' |
Obligations at beginning of year | 6,293 | 5,766 | ' |
Service cost | 23 | 23 | 26 |
Interest cost | 247 | 280 | 300 |
Actuarial (gain) loss | -540 | 612 | ' |
Benefits paid | -405 | -424 | ' |
Special termination benefits | ' | 34 | ' |
One-time cost | ' | 2 | ' |
Obligations at end of year | 5,618 | 6,293 | 5,766 |
Change in plan assets: | ' | ' | ' |
Beginning balance | 5,423 | 5,110 | ' |
Actual return on plan assets | 142 | 627 | ' |
Employer contributions | 60 | 110 | ' |
Benefits paid | -405 | -424 | ' |
Ending balance | 5,220 | 5,423 | 5,110 |
Funded status | -398 | -870 | ' |
Postretirement Benefit | ' | ' | ' |
Change in benefit obligations: | ' | ' | ' |
Obligations at beginning of year | 1,280 | 1,434 | ' |
Service cost | 3 | 3 | 3 |
Interest cost | 50 | 56 | 75 |
Actuarial (gain) loss | -95 | 27 | ' |
Plan amendments | ' | -157 | ' |
Benefits paid | -69 | -83 | ' |
Obligations at end of year | 1,169 | 1,280 | 1,434 |
Change in plan assets: | ' | ' | ' |
Beginning balance | 258 | 255 | ' |
Actual return on plan assets | 31 | 29 | ' |
Employer contributions | 48 | 57 | ' |
Benefits paid | -69 | -83 | ' |
Ending balance | 268 | 258 | 255 |
Funded status | ($901) | ($1,022) | ' |
Amounts_Recognized_in_Consolid
Amounts Recognized in Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Amounts recognized in the consolidated balance sheets consist of: | ' | ' |
Noncurrent assets - other assets and deferred charges | $245 | $242 |
Accrued benefit - other current liability | -79 | -74 |
Accrued benefit - long-term retirement benefits | -1,221 | -1,821 |
Pension Benefits | ' | ' |
Amounts recognized in the consolidated balance sheets consist of: | ' | ' |
Noncurrent assets - other assets and deferred charges | 1 | 3 |
Accrued benefit - other current liability | -9 | -9 |
Accrued benefit - long-term retirement benefits | -390 | -864 |
Net amount recognized | -398 | -870 |
Accumulated other comprehensive loss | 311 | 645 |
Net amounts recognized in the consolidated balance sheets | -87 | -225 |
Postretirement Benefit | ' | ' |
Amounts recognized in the consolidated balance sheets consist of: | ' | ' |
Accrued benefit - other current liability | -70 | -65 |
Accrued benefit - long-term retirement benefits | -831 | -957 |
Net amount recognized | -901 | -1,022 |
Accumulated other comprehensive loss | -231 | -157 |
Net amounts recognized in the consolidated balance sheets | ($1,132) | ($1,179) |
Amounts_Included_in_Accumulate
Amounts Included in Accumulated Other Comprehensive Loss (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Prior service cost (credit) | ($203) | ($242) |
Net actuarial (gain) loss | 283 | 730 |
Deferred income taxes | -63 | -223 |
Accumulated other comprehensive loss | 17 | 265 |
Pension Benefits | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Prior service cost (credit) | 17 | 20 |
Net actuarial (gain) loss | 294 | 625 |
Deferred income taxes | -134 | -265 |
Accumulated other comprehensive loss | 177 | 380 |
Postretirement Benefit | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Prior service cost (credit) | -220 | -262 |
Net actuarial (gain) loss | -11 | 105 |
Deferred income taxes | 71 | 42 |
Accumulated other comprehensive loss | ($160) | ($115) |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Loss (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Prior service credit | ' | ($157) | ' |
Net actuarial (gain) loss | -447 | 352 | ' |
Amortization of prior service cost (credit) | 39 | 26 | ' |
One-time cost | ' | -2 | ' |
MTM adjustment | ' | -329 | ' |
Deferred income tax expense (benefit), retirement benefits | 160 | 45 | -95 |
Change in accumulated other comprehensive loss | -248 | -65 | 144 |
Pension Benefits | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net actuarial (gain) loss | -331 | 344 | ' |
Amortization of prior service cost (credit) | -3 | -4 | ' |
One-time cost | ' | -2 | ' |
MTM adjustment | ' | -289 | ' |
Deferred income tax expense (benefit), retirement benefits | 131 | -20 | ' |
Change in accumulated other comprehensive loss | -203 | 29 | ' |
Postretirement Benefit | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Prior service credit | ' | -157 | ' |
Net actuarial (gain) loss | -116 | 8 | ' |
Amortization of prior service cost (credit) | 42 | 30 | ' |
MTM adjustment | ' | -40 | ' |
Deferred income tax expense (benefit), retirement benefits | 29 | 65 | ' |
Change in accumulated other comprehensive loss | ($45) | ($94) | ' |
Retirement_Benefits_Additional
Retirement Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan Amendments effect on obligation | $157 | ' | ' |
Accumulated Defined Beneift Obligation | 5,557 | 6,216 | ' |
Defined contribution plan expense | 34 | 34 | 37 |
Pension Benefits | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Accumulated benefit obligation for pension plans | 3 | ' | ' |
Pension expected contributions | 109 | ' | ' |
Postretirement Benefit | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan Amendments effect on obligation | ' | -157 | ' |
Accumulated benefit obligation for pension plans | 42 | ' | ' |
Post Retirement expected contributions | $70 | ' | ' |
Weighted_Average_Assumptions_U
Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits | ' | ' |
Weighted-average assumptions used to determine benefit obligations at December 31: | ' | ' |
Discount rate | 4.92% | 4.07% |
Rate of compensation increase | 4.00% | 4.00% |
Postretirement Benefit | ' | ' |
Weighted-average assumptions used to determine benefit obligations at December 31: | ' | ' |
Discount rate | 4.87% | 3.99% |
Accumulated_Benefit_Obligation
Accumulated Benefit Obligations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Pension Plans with Accumulated and Projected Benefit Obligations in Excess of Plan Assets [Line Items] | ' | ' |
Projected benefit obligation | $5,589 | $6,261 |
Accumulated benefit obligation | 5,529 | 6,185 |
Plan assets | $5,190 | $5,388 |
Components_of_Pension_Benefits
Components of Pension Benefits and Postretirement Benefits (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits | Pension Benefits | Pension Benefits | Postretirement Benefit | Postretirement Benefit | Postretirement Benefit | |||
Components of total benefit cost: | ' | ' | ' | ' | ' | ' | ' | ' |
Service cost | ' | ' | $23 | $23 | $26 | $3 | $3 | $3 |
Interest cost | ' | ' | 247 | 280 | 300 | 50 | 56 | 75 |
Expected return on plan assets | ' | ' | -350 | -359 | -373 | -11 | -10 | -18 |
Amortization of prior service cost (credit) | ' | ' | 3 | 4 | 4 | -42 | -30 | -29 |
MTM adjustment | 108 | 16 | ' | 289 | 110 | ' | 40 | 35 |
Curtailment | ' | ' | ' | 4 | ' | ' | ' | ' |
Special termination benefits | ' | ' | ' | 34 | ' | ' | ' | ' |
Total benefit (income) cost | ' | ' | ($77) | $275 | $67 | ' | $59 | $66 |
Weighted_Average_Assumptions_D
Weighted Average Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Benefits | ' | ' | ' |
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: | ' | ' | ' |
Discount rate | 4.07% | 5.00% | 5.66% |
Expected long-term return on plan assets | 6.67% | 6.97% | 7.73% |
Rate of compensation increase | 4.00% | 5.00% | 5.00% |
Defined Benefit Postretirement | ' | ' | ' |
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: | ' | ' | ' |
Discount rate | 3.99% | 4.84% | 5.52% |
Expected long-term return on plan assets | 4.35% | 4.35% | 7.00% |
Rate of compensation increase | ' | ' | 5.00% |
Pension_and_Post_Retirement_Pl
Pension and Post Retirement Plans Asset Allocations (Detail) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Postretirement Benefits | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 100.00% | [1] | 100.00% | [1] |
Actual Plan Asset Allocations | 100.00% | 100.00% | ||
Postretirement Benefits | Domestic equities | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 21.00% | [1] | 21.00% | [1] |
Actual Plan Asset Allocations | 22.00% | 20.00% | ||
Postretirement Benefits | International equities | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 21.00% | [1] | 21.00% | [1] |
Actual Plan Asset Allocations | 22.00% | 22.00% | ||
Postretirement Benefits | Fixed income | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 55.00% | [1] | 55.00% | [1] |
Actual Plan Asset Allocations | 51.00% | 52.00% | ||
Postretirement Benefits | Cash and other | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 3.00% | [1] | 3.00% | [1] |
Actual Plan Asset Allocations | 5.00% | 6.00% | ||
Pension Benefits | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 100.00% | [1] | 100.00% | [1] |
Actual Plan Asset Allocations | 100.00% | 100.00% | ||
Pension Benefits | Domestic equities | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 10.00% | [1] | 7.50% | [1] |
Actual Plan Asset Allocations | 10.00% | 8.00% | ||
Pension Benefits | International equities | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 8.00% | [1] | 7.50% | [1] |
Actual Plan Asset Allocations | 9.00% | 8.00% | ||
Pension Benefits | Fixed income | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 53.00% | [1] | 55.00% | [1] |
Actual Plan Asset Allocations | 55.00% | 56.00% | ||
Pension Benefits | Global equities | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 9.00% | [1] | 9.00% | [1] |
Actual Plan Asset Allocations | 11.00% | 9.00% | ||
Pension Benefits | Emerging market equities | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 3.00% | [1] | 3.00% | [1] |
Actual Plan Asset Allocations | 3.00% | 3.00% | ||
Pension Benefits | High yield fixed income | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | ' | 3.00% | [1] | |
Actual Plan Asset Allocations | ' | 3.00% | ||
Pension Benefits | Absolute Return | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 6.00% | [1] | 4.00% | [1] |
Actual Plan Asset Allocations | 3.00% | 3.00% | ||
Pension Benefits | Private equity | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 2.00% | [1] | 1.00% | [1] |
Actual Plan Asset Allocations | 1.00% | 1.00% | ||
Pension Benefits | Real estate | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 5.00% | [1] | 4.00% | [1] |
Actual Plan Asset Allocations | 4.00% | 4.00% | ||
Pension Benefits | Global tactical asset allocation | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | ' | 2.00% | [1] | |
Actual Plan Asset Allocations | ' | 1.00% | ||
Pension Benefits | Commodities | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Target Plan Asset Allocations | 4.00% | [1] | 4.00% | [1] |
Actual Plan Asset Allocations | 4.00% | 4.00% | ||
[1] | Allows for a rebalancing range of up to 5 percentage points around target asset allocations. |
Pension_and_Post_Retirement_Pl1
Pension and Post Retirement Plans Asset Allocations (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Benefits | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Maximum Range of rebalancing of assets around target asset allocations | 5.00% | 5.00% |
Postretirement Benefit | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Maximum Range of rebalancing of assets around target asset allocations | 5.00% | 5.00% |
Plan_Assets_Carried_at_Fair_Va
Plan Assets Carried at Fair Value (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | |||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | $447 | $444 | $494 | ||
Absolute Return | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 176 | 189 | 249 | ||
Private equity | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 53 | 47 | 46 | ||
Real estate | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 190 | 178 | 161 | ||
Asset backed securities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 3 | 5 | 2 | ||
Corporate bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 2 | 2 | 15 | ||
Mortgage backed securities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 21 | 21 | 19 | ||
Recurring | Postretirement Benefits | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 262 | [1] | 250 | [1] | ' |
Recurring | Postretirement Benefits | Domestic equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 60 | [1] | 52 | [1] | ' |
Recurring | Postretirement Benefits | International equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 59 | [1] | 56 | [1] | ' |
Recurring | Postretirement Benefits | Other | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 7 | [1] | 6 | [1] | ' |
Recurring | Postretirement Benefits | Short-term bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 9 | [1] | 6 | [1] | ' |
Recurring | Postretirement Benefits | Intermediate bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 127 | [1] | 130 | [1] | ' |
Recurring | Pension Benefits | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 4,881 | [1] | 5,187 | [1] | ' |
Recurring | Pension Benefits | Domestic equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 523 | [1] | 465 | [1] | ' |
Recurring | Pension Benefits | International equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 539 | [1] | 435 | [1] | ' |
Recurring | Pension Benefits | Global equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 535 | [1] | 455 | [1] | ' |
Recurring | Pension Benefits | High yield fixed income | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 18 | [1] | 187 | [1] | ' |
Recurring | Pension Benefits | Absolute Return | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 176 | [1] | 189 | [1] | ' |
Recurring | Pension Benefits | Private equity | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 53 | [1] | 47 | [1] | ' |
Recurring | Pension Benefits | Real estate | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 212 | [1] | 203 | [1] | ' |
Recurring | Pension Benefits | Commodities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 185 | [1] | 201 | [1] | ' |
Recurring | Pension Benefits | Agency Bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 17 | [1] | 18 | [1] | ' |
Recurring | Pension Benefits | Asset backed securities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 92 | [1] | 90 | [1] | ' |
Recurring | Pension Benefits | Corporate bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 1,570 | [1] | 1,723 | [1] | ' |
Recurring | Pension Benefits | Government Bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 152 | [1] | 159 | [1] | ' |
Recurring | Pension Benefits | Mortgage backed securities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 95 | [1] | 100 | [1] | ' |
Recurring | Pension Benefits | Municipal Bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 212 | [1] | 222 | [1] | ' |
Recurring | Pension Benefits | Treasuries | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 398 | [1] | 415 | [1] | ' |
Recurring | Pension Benefits | Other | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 104 | [1] | 152 | [1] | ' |
Recurring | Pension Benefits | Emerging market equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | ' | 71 | [1] | ' | |
Recurring | Pension Benefits | Global tactical asset allocation | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | ' | 55 | [1] | ' | |
Recurring | Level 1 | Postretirement Benefits | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 9 | [1] | 6 | [1] | ' |
Recurring | Level 1 | Postretirement Benefits | Short-term bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 9 | [1] | 6 | [1] | ' |
Recurring | Level 1 | Pension Benefits | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 1,245 | [1] | 1,093 | [1] | ' |
Recurring | Level 1 | Pension Benefits | Domestic equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 523 | [1] | 465 | [1] | ' |
Recurring | Level 1 | Pension Benefits | International equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 135 | [1] | 111 | [1] | ' |
Recurring | Level 1 | Pension Benefits | Global equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 535 | [1] | 455 | [1] | ' |
Recurring | Level 1 | Pension Benefits | Real estate | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 22 | [1] | 25 | [1] | ' |
Recurring | Level 1 | Pension Benefits | Other | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 30 | [1] | 37 | [1] | ' |
Recurring | Level 2 | Postretirement Benefits | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 253 | [1] | 244 | [1] | ' |
Recurring | Level 2 | Postretirement Benefits | Domestic equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 60 | [1] | 52 | [1] | ' |
Recurring | Level 2 | Postretirement Benefits | International equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 59 | [1] | 56 | [1] | ' |
Recurring | Level 2 | Postretirement Benefits | Other | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 7 | [1] | 6 | [1] | ' |
Recurring | Level 2 | Postretirement Benefits | Intermediate bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 127 | [1] | 130 | [1] | ' |
Recurring | Level 2 | Pension Benefits | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 3,189 | [1] | 3,650 | [1] | ' |
Recurring | Level 2 | Pension Benefits | International equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 404 | [1] | 324 | [1] | ' |
Recurring | Level 2 | Pension Benefits | High yield fixed income | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 18 | [1] | 187 | [1] | ' |
Recurring | Level 2 | Pension Benefits | Commodities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 185 | [1] | 201 | [1] | ' |
Recurring | Level 2 | Pension Benefits | Agency Bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 17 | [1] | 18 | [1] | ' |
Recurring | Level 2 | Pension Benefits | Asset backed securities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 89 | [1] | 85 | [1] | ' |
Recurring | Level 2 | Pension Benefits | Corporate bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 1,568 | [1] | 1,721 | [1] | ' |
Recurring | Level 2 | Pension Benefits | Government Bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 152 | [1] | 159 | [1] | ' |
Recurring | Level 2 | Pension Benefits | Mortgage backed securities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 74 | [1] | 79 | [1] | ' |
Recurring | Level 2 | Pension Benefits | Municipal Bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 212 | [1] | 222 | [1] | ' |
Recurring | Level 2 | Pension Benefits | Treasuries | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 398 | [1] | 415 | [1] | ' |
Recurring | Level 2 | Pension Benefits | Other | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 72 | [1] | 113 | [1] | ' |
Recurring | Level 2 | Pension Benefits | Emerging market equities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | ' | 71 | [1] | ' | |
Recurring | Level 2 | Pension Benefits | Global tactical asset allocation | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | ' | 55 | [1] | ' | |
Recurring | Level 3 | Pension Benefits | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 447 | [1] | 444 | [1] | ' |
Recurring | Level 3 | Pension Benefits | Absolute Return | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 176 | [1] | 189 | [1] | ' |
Recurring | Level 3 | Pension Benefits | Private equity | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 53 | [1] | 47 | [1] | ' |
Recurring | Level 3 | Pension Benefits | Real estate | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 190 | [1] | 178 | [1] | ' |
Recurring | Level 3 | Pension Benefits | Asset backed securities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 3 | [1] | 5 | [1] | ' |
Recurring | Level 3 | Pension Benefits | Corporate bonds | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 2 | [1] | 2 | [1] | ' |
Recurring | Level 3 | Pension Benefits | Mortgage backed securities | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | 21 | [1] | 21 | [1] | ' |
Recurring | Level 3 | Pension Benefits | Other | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Fair value of pension and postretirement plan assets | $2 | [1] | $2 | [1] | ' |
[1] | See note 1 for additional information on the fair value hierarchy. |
Transfer_of_Plan_Assets_by_Ass
Transfer of Plan Assets by Asset Category (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Absolute Return | Absolute Return | Private equity | Private equity | Real estate | Real estate | Asset backed securities | Asset backed securities | Corporate bonds | Corporate bonds | Mortgage backed securities | Mortgage backed securities | Other | Other | Other | ||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Beginning balance | $444 | $494 | $189 | $249 | $47 | $46 | $178 | $161 | $5 | $2 | $15 | $2 | $19 | $21 | $2 | $2 | $2 | |||
Purchases, Sales, Issuances and Settlements (net) | -44 | -85 | -32 | -71 | -1 | -3 | -9 | 2 | -2 | 1 | -14 | ' | ' | ' | ' | ' | ' | |||
Realized Gains (Losses) | 39 | 51 | 31 | 39 | 4 | 4 | 4 | 2 | ' | ' | 6 | ' | ' | ' | ' | ' | ' | |||
Unrealized Gains (Losses) | 8 | -19 | -12 | -28 | 3 | ' | 17 | 13 | ' | ' | -6 | ' | 2 | ' | ' | ' | ' | |||
Transferred From Other Levels | ' | 3 | [1] | ' | ' | ' | ' | ' | ' | ' | 2 | [1] | 1 | [1] | ' | ' | ' | ' | ' | ' |
Ending balance | $447 | $444 | $176 | $189 | $53 | $47 | $190 | $178 | $3 | $5 | $2 | $2 | $21 | $21 | $2 | $2 | $2 | |||
[1] | Transfers in and out of Level 3 occur using the fair value at the beginning of the period. |
Weighted_Average_Health_Care_C
Weighted Average Health Care Cost Trend (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Weighted-average health-care cost trend rate assumed for the following year | 7.50% | 8.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | '2020 | '2018 |
Assumed_Health_Care_Cost_Trend
Assumed Health Care Cost Trend (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' |
1-Percentage Point Increase | $2 |
1-Percentage Point Decrease | -2 |
1-Percentage Point Increase | 52 |
1-Percentage Point Decrease | ($44) |
Estimated_Future_Benefit_Payme
Estimated Future Benefit Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Estimated future benefits payments | ' |
2014 | $417 |
2015 | 432 |
2016 | 398 |
2017 | 398 |
2018 | 394 |
2019-2023 | 1,909 |
Gross Projected Benefit Payments Before Medicare Part D Subsidies | ' |
2014 | 103 |
2015 | 95 |
2016 | 96 |
2017 | 93 |
2018 | 91 |
2019-2023 | 418 |
Expected Medicare Part D Subsidies | ' |
2014 | -2 |
2015 | -2 |
2016 | -2 |
2017 | -2 |
2018 | -3 |
2019-2023 | -17 |
Net Projected Benefit Payments After Medicare Part D Subsidies | ' |
2014 | 101 |
2015 | 93 |
2016 | 94 |
2017 | 91 |
2018 | 88 |
2019-2023 | $401 |
Segment_Information_Detail
Segment Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | $2,039 | $2,135 | $2,179 | $1,883 | $2,078 | $2,117 | $2,176 | $1,933 | $8,236 | $8,304 | $8,541 | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 3,132 | [1],[2],[3] | 2,214 | [1],[2],[3] | 2,399 | [1],[2],[3] |
Cash capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 153 | 88 | 190 | |||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 103 | 131 | 138 | |||
Interest and debt expense | ' | ' | ' | ' | ' | ' | ' | ' | 259 | 234 | 221 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -7 | -11 | |||
Other expense, net | ' | ' | ' | ' | ' | ' | ' | ' | 137 | 34 | 3 | |||
Income from operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2,741 | 1,953 | 2,186 | |||
RJR Tobacco | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 6,728 | 6,960 | 7,317 | |||
Cash capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 55 | 36 | 55 | |||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 68 | 99 | 110 | |||
American Snuff | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 745 | 681 | 648 | |||
Cash capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 15 | 24 | 106 | |||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 18 | 19 | 17 | |||
Santa Fe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 572 | 486 | 416 | |||
Cash capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 4 | 7 | |||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 2 | 5 | |||
All Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 191 | 177 | 160 | |||
Cash capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 81 | 24 | 22 | |||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 11 | 6 | |||
Operating Segments | RJR Tobacco | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 2,587 | [1],[2],[3] | 1,735 | [1],[2],[3] | 1,958 | [1],[2],[3] |
Operating Segments | American Snuff | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 420 | [2] | 374 | [2] | 331 | [2] |
Operating Segments | Santa Fe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 280 | [3] | 237 | [3] | 186 | [3] |
Operating Segments | All Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -70 | [2] | -36 | [2] | 18 | [2] |
Corporate, Non-Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($85) | [1] | ($96) | [1] | ($94) | [1] |
[1] | Includes restructuring and/or asset impairment charges of $149 million for the year ended December 31, 2012, see "Restructuring Charges" in note 4. | |||||||||||||
[2] | Includes trademark, goodwill and/or other intangible asset impairment charges of $32 million, $129 million and $48 million for the years ended December 31, 2013, 2012 and 2011, respectively, see "Intangible Assets" in note 3. | |||||||||||||
[3] | Includes NPM Adjustment credits of $478 million for RJR Tobacco and $5 million for Santa Fe for the year ended December 31, 2013, see "- Cost of Products Sold" in note 1. |
Segment_Information_Parentheti
Segment Information (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charge | ' | ' | ' | ' | $149 | ' | $149 | ' |
Goodwill Impairment | ' | ' | ' | ' | ' | 32 | 129 | 48 |
NPM Adjustment credits | 63 | 69 | 90 | 261 | ' | ' | ' | ' |
RJR Tobacco | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charge | ' | ' | ' | ' | 138 | ' | ' | ' |
NPM Adjustment credits | ' | ' | ' | ' | ' | 478 | ' | ' |
Santa Fe | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
NPM Adjustment credits | ' | ' | ' | ' | ' | $5 | ' | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Information [Line Items] | ' | ' | ' |
Sales to non-major customers threshold | 10.00% | 10.00% | 10.00% |
Foreign sales | $497 | $494 | $613 |
McLane Company | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' |
Sales to major customers | 31.00% | 31.00% | 27.00% |
Core-Mark International, Inc | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' |
Sales to major customers | 11.00% | 10.00% | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
RAI | RAI | |||||
Transactions with Third Party [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of RTI's outstanding common stock | ' | 42.00% | ' | ' | ' | ' |
Revenue percentage from related parties | ' | 4.00% | 4.00% | 6.00% | ' | ' |
Percentage of maximum purchase price | 10.00% | ' | ' | ' | ' | ' |
Repurchased stock from B&W | ' | ' | ' | ' | 18,815,124 | 6,258,315 |
Summary_of_Balances_and_Transa
Summary of Balances and Transactions (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Transactions with Third Party [Line Items] | ' | ' | ' |
Accounts receivable, related party | $56 | $61 | ' |
Due to related party | ' | 1 | ' |
Deferred revenue, related party | 48 | 42 | ' |
Net sales | 337 | 342 | 479 |
Purchases | 27 | 16 | 11 |
RAI common stock purchases from B&W | 296 | 415 | 114 |
Capsule royalty income | 9 | 6 | 2 |
Research and development services billings | $4 | $3 | $5 |
RAI_Guaranteed_Unsecured_Notes2
RAI Guaranteed Unsecured Notes - Condensed Consolidating Financial Statements (Detail) (USD $) | Sep. 30, 2013 | Oct. 31, 2012 | Dec. 31, 2013 |
In Billions, unless otherwise specified | RAI | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
RAI's unsecured notes | $1.10 | $2.55 | $5.10 |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $7,899 | [1] | $7,962 | [1] | $8,062 | [1] |
Net sales, related party | ' | ' | ' | ' | ' | ' | ' | ' | 337 | 342 | 479 | |||
Net Sales | 2,039 | 2,135 | 2,179 | 1,883 | 2,078 | 2,117 | 2,176 | 1,933 | 8,236 | 8,304 | 8,541 | |||
Cost of products sold | ' | ' | ' | ' | ' | ' | ' | ' | 3,678 | [1] | 4,321 | [1] | 4,464 | [1] |
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,389 | 1,470 | 1,606 | |||
Amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 21 | 24 | |||
Restructuring charge | ' | ' | ' | ' | ' | ' | ' | 149 | ' | 149 | ' | |||
Trademark and other intangible asset impairment charges | 32 | ' | ' | ' | 129 | ' | ' | ' | 32 | 129 | 48 | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 3,132 | [2],[3],[4] | 2,214 | [2],[3],[4] | 2,399 | [2],[3],[4] |
Interest and debt expense | ' | ' | ' | ' | ' | ' | ' | ' | 259 | 234 | 221 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -7 | -11 | |||
Other expense (income), net | ' | ' | ' | ' | ' | ' | ' | ' | 137 | 34 | 3 | |||
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2,741 | 1,953 | 2,186 | |||
Provision for (benefit from) income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,023 | 681 | 780 | |||
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 1,718 | 1,272 | 1,406 | |||
RAI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 23 | 129 | |||
Restructuring charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -13 | -27 | -129 | |||
Interest and debt expense | ' | ' | ' | ' | ' | ' | ' | ' | 255 | 228 | 213 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -111 | -113 | -118 | |||
Other expense (income), net | ' | ' | ' | ' | ' | ' | ' | ' | 129 | 26 | 8 | |||
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -286 | -168 | -232 | |||
Provision for (benefit from) income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -95 | -59 | -89 | |||
Equity income (loss) from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 1,909 | 1,381 | 1,549 | |||
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 1,718 | 1,272 | 1,406 | |||
Guarantors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 7,785 | 7,857 | 7,971 | |||
Net sales, related party | ' | ' | ' | ' | ' | ' | ' | ' | 337 | 342 | 479 | |||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 8,122 | 8,199 | 8,450 | |||
Cost of products sold | ' | ' | ' | ' | ' | ' | ' | ' | 3,628 | 4,316 | 4,460 | |||
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,222 | 1,341 | 1,386 | |||
Amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 21 | 24 | |||
Restructuring charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 145 | ' | |||
Trademark and other intangible asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 32 | 82 | 48 | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 3,235 | 2,294 | 2,532 | |||
Interest and debt expense | ' | ' | ' | ' | ' | ' | ' | ' | 113 | 119 | 125 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -3 | -4 | |||
Other expense (income), net | ' | ' | ' | ' | ' | ' | ' | ' | -45 | -44 | -47 | |||
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 3,170 | 2,222 | 2,458 | |||
Provision for (benefit from) income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,154 | 762 | 875 | |||
Equity income (loss) from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 5 | -16 | 20 | |||
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 2,021 | 1,444 | 1,603 | |||
Non-Guarantors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 147 | 134 | 116 | |||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 147 | 134 | 116 | |||
Cost of products sold | ' | ' | ' | ' | ' | ' | ' | ' | 83 | 34 | 29 | |||
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 154 | 106 | 91 | |||
Trademark and other intangible asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47 | ' | |||
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -90 | -53 | -4 | |||
Interest and debt expense | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -4 | -6 | |||
Other expense (income), net | ' | ' | ' | ' | ' | ' | ' | ' | 10 | 9 | -1 | |||
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -100 | -58 | 3 | |||
Provision for (benefit from) income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -36 | -21 | -6 | |||
Net income | ' | ' | ' | ' | ' | ' | ' | ' | -64 | -37 | 9 | |||
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | -33 | -29 | -25 | |||
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | -33 | -29 | -25 | |||
Cost of products sold | ' | ' | ' | ' | ' | ' | ' | ' | -33 | -29 | -25 | |||
Interest and debt expense | ' | ' | ' | ' | ' | ' | ' | ' | -111 | -113 | -117 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 111 | 113 | 117 | |||
Other expense (income), net | ' | ' | ' | ' | ' | ' | ' | ' | 43 | 43 | 43 | |||
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -43 | -43 | -43 | |||
Provision for (benefit from) income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | |||
Equity income (loss) from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -1,914 | -1,365 | -1,569 | |||
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ($1,957) | ($1,407) | ($1,612) | |||
[1] | Excludes excise taxes of $3,730 million, $3,923 million and $4,107 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
[2] | Includes restructuring and/or asset impairment charges of $149 million for the year ended December 31, 2012, see "Restructuring Charges" in note 4. | |||||||||||||
[3] | Includes trademark, goodwill and/or other intangible asset impairment charges of $32 million, $129 million and $48 million for the years ended December 31, 2013, 2012 and 2011, respectively, see "Intangible Assets" in note 3. | |||||||||||||
[4] | Includes NPM Adjustment credits of $478 million for RJR Tobacco and $5 million for Santa Fe for the year ended December 31, 2013, see "- Cost of Products Sold" in note 1. |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income | $1,718 | $1,272 | $1,406 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Retirement benefits | 248 | 65 | -144 |
Unrealized gain on long-term investments | 5 | 7 | -12 |
Realized loss on hedging instruments | 1 | -14 | ' |
Cumulative translation adjustment and other | 1 | 13 | -8 |
Comprehensive income | 1,973 | 1,343 | 1,242 |
RAI | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income | 1,718 | 1,272 | 1,406 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Retirement benefits | 248 | 65 | -144 |
Unrealized gain on long-term investments | 5 | 7 | -12 |
Realized loss on hedging instruments | 1 | -14 | ' |
Cumulative translation adjustment and other | 1 | 13 | -8 |
Comprehensive income | 1,973 | 1,343 | 1,242 |
Guarantors | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income | 2,021 | 1,444 | 1,603 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Retirement benefits | 239 | 65 | -141 |
Unrealized gain on long-term investments | 5 | 7 | -12 |
Cumulative translation adjustment and other | 1 | 13 | -8 |
Comprehensive income | 2,266 | 1,529 | 1,442 |
Non-Guarantors | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income | -64 | -37 | 9 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Retirement benefits | -1 | ' | 6 |
Cumulative translation adjustment and other | 14 | 9 | -11 |
Comprehensive income | -51 | -28 | 4 |
Eliminations | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Net income | -1,957 | -1,407 | -1,612 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Retirement benefits | -238 | -65 | 135 |
Unrealized gain on long-term investments | -5 | -7 | 12 |
Cumulative translation adjustment and other | -15 | -22 | 19 |
Comprehensive income | ($2,215) | ($1,501) | ($1,446) |
Reclassification_Out_of_Accumu1
Reclassification Out of Accumulated Other Comprehensive Loss and Affected Line Items in Condensed Consolidating Statements of Income (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Cost of products sold | ($3,678) | [1] | ($4,321) | [1] | ($4,464) | [1] |
Interest and debt expense | -259 | -234 | -221 | |||
Selling, general and administrative expenses | -1,389 | -1,470 | -1,606 | |||
Income before income taxes | 2,741 | 1,953 | 2,186 | |||
Provision for income taxes | -1,023 | -681 | -780 | |||
Net income | 1,718 | 1,272 | 1,406 | |||
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Net income | -22 | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Cost of products sold | -21 | ' | ' | |||
Selling, general and administrative expenses | -18 | ' | ' | |||
Income before income taxes | -39 | ' | ' | |||
Provision for income taxes | 16 | ' | ' | |||
Net income | -23 | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Interest and debt expense | 2 | ' | ' | |||
Provision for income taxes | -1 | ' | ' | |||
Net income | 1 | ' | ' | |||
RAI | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Interest and debt expense | -255 | -228 | -213 | |||
Selling, general and administrative expenses | -13 | -23 | -129 | |||
Income before income taxes | -286 | -168 | -232 | |||
Provision for income taxes | 95 | 59 | 89 | |||
Net income | 1,718 | 1,272 | 1,406 | |||
RAI | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Net income | -22 | ' | ' | |||
RAI | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Cost of products sold | -21 | ' | ' | |||
Selling, general and administrative expenses | -18 | ' | ' | |||
Income before income taxes | -39 | ' | ' | |||
Provision for income taxes | 16 | ' | ' | |||
Net income | -23 | ' | ' | |||
RAI | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Interest and debt expense | 2 | ' | ' | |||
Provision for income taxes | -1 | ' | ' | |||
Net income | 1 | ' | ' | |||
Guarantors | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Cost of products sold | -3,628 | -4,316 | -4,460 | |||
Interest and debt expense | -113 | -119 | -125 | |||
Selling, general and administrative expenses | -1,222 | -1,341 | -1,386 | |||
Income before income taxes | 3,170 | 2,222 | 2,458 | |||
Provision for income taxes | -1,154 | -762 | -875 | |||
Net income | 2,021 | 1,444 | 1,603 | |||
Guarantors | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Net income | -23 | ' | ' | |||
Guarantors | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Cost of products sold | -21 | ' | ' | |||
Selling, general and administrative expenses | -18 | ' | ' | |||
Income before income taxes | -39 | ' | ' | |||
Provision for income taxes | 16 | ' | ' | |||
Net income | -23 | ' | ' | |||
Eliminations | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Cost of products sold | 33 | 29 | 25 | |||
Interest and debt expense | 111 | 113 | 117 | |||
Income before income taxes | -43 | -43 | -43 | |||
Provision for income taxes | ' | 1 | ' | |||
Net income | -1,957 | -1,407 | -1,612 | |||
Eliminations | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Net income | 23 | ' | ' | |||
Eliminations | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Cost of products sold | 21 | ' | ' | |||
Selling, general and administrative expenses | 18 | ' | ' | |||
Income before income taxes | 39 | ' | ' | |||
Provision for income taxes | -16 | ' | ' | |||
Net income | $23 | ' | ' | |||
[1] | Excludes excise taxes of $3,730 million, $3,923 million and $4,107 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Condensed_Consolidating_Statem2
Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Cash flows from (used in) operating activities | $1,308 | $1,568 | $1,420 |
Cash flows from (used in) investing activities: | ' | ' | ' |
Capital expenditures | -153 | -88 | -190 |
Net proceeds from sale of business | ' | ' | 202 |
Proceeds from termination of joint venture | 31 | 30 | 32 |
Other, net | 9 | 4 | 16 |
Net cash flows from (used in) investing activities | -113 | -54 | 60 |
Cash flows from (used in) financing activities: | ' | ' | ' |
Dividends paid on common stock | -1,335 | -1,307 | -1,212 |
Repurchase of common stock | -775 | -1,101 | -282 |
Excess tax benefit on stock-based compensation plans | 14 | 39 | 1 |
Principal borrowings under term loan credit facility | 500 | 750 | ' |
Repayment of term loan credit facility | -500 | -750 | ' |
Proceeds from issuance of long-term debt, net of discounts | 1,097 | 2,539 | ' |
Repayments of long-term debt | -1,035 | -1,076 | -400 |
Debt issuance costs and financing fees | -18 | -22 | -7 |
Proceeds from termination of interest rate swaps | ' | ' | 186 |
Payment to settle forward starting interest rate contracts | ' | -23 | ' |
Make-whole premium for early extinguishment of debt | -155 | -20 | ' |
Other, net | ' | -20 | ' |
Net cash flows from (used in) financing activities | -2,207 | -971 | -1,714 |
Effect of exchange rate changes on cash and cash equivalents | 10 | 3 | -5 |
Net change in cash and cash equivalents | -1,002 | 546 | -239 |
Cash and cash equivalents at beginning of year | 2,502 | 1,956 | 2,195 |
Cash and cash equivalents at end of year | 1,500 | 2,502 | 1,956 |
RAI | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Cash flows from (used in) operating activities | 1,519 | 454 | 641 |
Cash flows from (used in) investing activities: | ' | ' | ' |
Net proceeds from sale of business | ' | ' | 79 |
Return of intercompany investments | 300 | 898 | 1,040 |
Other, net | 81 | 40 | 40 |
Net cash flows from (used in) investing activities | 381 | 938 | 1,159 |
Cash flows from (used in) financing activities: | ' | ' | ' |
Dividends paid on common stock | -1,335 | -1,307 | -1,212 |
Repurchase of common stock | -775 | -1,101 | -282 |
Excess tax benefit on stock-based compensation plans | 14 | 39 | 1 |
Principal borrowings under term loan credit facility | 500 | 750 | ' |
Repayment of term loan credit facility | -500 | -750 | ' |
Proceeds from issuance of long-term debt, net of discounts | 1,097 | 2,539 | ' |
Repayments of long-term debt | -975 | -1,018 | -400 |
Debt issuance costs and financing fees | -18 | -22 | -7 |
Proceeds from termination of interest rate swaps | ' | ' | 185 |
Payment to settle forward starting interest rate contracts | ' | -23 | ' |
Dividends paid on preferred stock | -43 | -43 | -43 |
Make-whole premium for early extinguishment of debt | -155 | ' | ' |
Other, net | -21 | -29 | -41 |
Net cash flows from (used in) financing activities | -2,211 | -965 | -1,799 |
Net change in cash and cash equivalents | -311 | 427 | 1 |
Cash and cash equivalents at beginning of year | 755 | 328 | 327 |
Cash and cash equivalents at end of year | 444 | 755 | 328 |
Guarantors | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Cash flows from (used in) operating activities | 945 | 1,801 | 1,571 |
Cash flows from (used in) investing activities: | ' | ' | ' |
Capital expenditures | -80 | -79 | -190 |
Net proceeds from sale of business | ' | ' | 123 |
Other, net | 33 | 17 | 60 |
Net cash flows from (used in) investing activities | -47 | -62 | -7 |
Cash flows from (used in) financing activities: | ' | ' | ' |
Dividends paid on common stock | -1,042 | -684 | -740 |
Repayments of long-term debt | -60 | -58 | ' |
Proceeds from termination of interest rate swaps | ' | ' | 1 |
Distribution of equity | -300 | -898 | -1,040 |
Other, net | -220 | -40 | -40 |
Net cash flows from (used in) financing activities | -1,622 | -1,680 | -1,819 |
Net change in cash and cash equivalents | -724 | 59 | -255 |
Cash and cash equivalents at beginning of year | 1,420 | 1,361 | 1,616 |
Cash and cash equivalents at end of year | 696 | 1,420 | 1,361 |
Non-Guarantors | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Cash flows from (used in) operating activities | -70 | 29 | -3 |
Cash flows from (used in) investing activities: | ' | ' | ' |
Capital expenditures | -74 | -1 | ' |
Proceeds from termination of joint venture | 31 | 30 | 32 |
Other, net | -1 | 1 | ' |
Net cash flows from (used in) investing activities | -44 | 30 | 32 |
Cash flows from (used in) financing activities: | ' | ' | ' |
Dividends paid on common stock | ' | ' | -6 |
Other, net | 137 | -2 | -3 |
Net cash flows from (used in) financing activities | 137 | -2 | -9 |
Effect of exchange rate changes on cash and cash equivalents | 10 | 3 | -5 |
Net change in cash and cash equivalents | 33 | 60 | 15 |
Cash and cash equivalents at beginning of year | 327 | 267 | 252 |
Cash and cash equivalents at end of year | 360 | 327 | 267 |
Eliminations | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Cash flows from (used in) operating activities | -1,086 | -716 | -789 |
Cash flows from (used in) investing activities: | ' | ' | ' |
Capital expenditures | 1 | -8 | ' |
Return of intercompany investments | -300 | -898 | -1,040 |
Other, net | -104 | -54 | -84 |
Net cash flows from (used in) investing activities | -403 | -960 | -1,124 |
Cash flows from (used in) financing activities: | ' | ' | ' |
Dividends paid on common stock | 1,042 | 684 | 746 |
Dividends paid on preferred stock | 43 | 43 | 43 |
Distribution of equity | 300 | 898 | 1,040 |
Other, net | 104 | 51 | 84 |
Net cash flows from (used in) financing activities | $1,489 | $1,676 | $1,913 |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $1,500 | $2,502 | $1,956 | $2,195 |
Accounts receivable | 106 | 87 | ' | ' |
Accounts receivable, related party | 56 | 61 | ' | ' |
Notes receivable | 37 | 35 | ' | ' |
Other receivables | 16 | 16 | ' | ' |
Inventories | 1,127 | 984 | ' | ' |
Deferred income taxes, net | 606 | 908 | ' | ' |
Prepaid expenses and other | 207 | 219 | ' | ' |
Total current assets | 3,655 | 4,812 | ' | ' |
Property, plant and equipment, net | 1,074 | 1,037 | ' | ' |
Trademarks and other intangible assets, net | 2,417 | 2,455 | ' | ' |
Goodwill | 8,011 | 8,011 | 8,010 | 8,010 |
Other assets and deferred charges | 245 | 242 | ' | ' |
Total assets | 15,402 | 16,557 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Accounts payable | 185 | 187 | ' | ' |
Tobacco settlement accruals | 1,727 | 2,489 | ' | ' |
Due to related party | ' | 1 | ' | ' |
Deferred revenue, related party | 48 | 42 | ' | ' |
Current maturities of long-term debt | ' | 60 | ' | ' |
Other current liabilities | 1,116 | 990 | ' | ' |
Total current liabilities | 3,076 | 3,769 | ' | ' |
Long-term debt (less current maturities) | 5,099 | 5,035 | ' | ' |
Deferred income taxes, net | 658 | 461 | ' | ' |
Long-term retirement benefits (less current portion) | 1,221 | 1,821 | ' | ' |
Other noncurrent liabilities | 181 | 214 | ' | ' |
Shareholders' equity | 5,167 | 5,257 | 6,251 | 6,510 |
Total liabilities and shareholders' equity | 15,402 | 16,557 | ' | ' |
RAI | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 444 | 755 | 328 | 327 |
Other receivables | 76 | 369 | ' | ' |
Prepaid expenses and other | 29 | 25 | ' | ' |
Total current assets | 549 | 1,149 | ' | ' |
Property, plant and equipment, net | 5 | 5 | ' | ' |
Long-term intercompany notes | 1,842 | 1,920 | ' | ' |
Investment in subsidiaries | 9,736 | 8,956 | ' | ' |
Other assets and deferred charges | 94 | 88 | ' | ' |
Total assets | 12,226 | 12,118 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Accounts payable | 1 | 1 | ' | ' |
Other current liabilities | 601 | 425 | ' | ' |
Total current liabilities | 602 | 426 | ' | ' |
Intercompany notes and interest payable | 1,295 | 1,316 | ' | ' |
Long-term debt (less current maturities) | 5,099 | 5,035 | ' | ' |
Long-term retirement benefits (less current portion) | 38 | 58 | ' | ' |
Other noncurrent liabilities | 25 | 26 | ' | ' |
Shareholders' equity | 5,167 | 5,257 | ' | ' |
Total liabilities and shareholders' equity | 12,226 | 12,118 | ' | ' |
Guarantors | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 696 | 1,420 | 1,361 | 1,616 |
Accounts receivable | 74 | 63 | ' | ' |
Accounts receivable, related party | 56 | 61 | ' | ' |
Notes receivable | 1 | 1 | ' | ' |
Other receivables | 198 | 48 | ' | ' |
Inventories | 1,069 | 944 | ' | ' |
Deferred income taxes, net | 614 | 909 | ' | ' |
Prepaid expenses and other | 172 | 188 | ' | ' |
Total current assets | 2,880 | 3,634 | ' | ' |
Property, plant and equipment, net | 986 | 1,019 | ' | ' |
Trademarks and other intangible assets, net | 2,413 | 2,450 | ' | ' |
Goodwill | 7,999 | 7,999 | ' | ' |
Long-term intercompany notes | 1,295 | 1,316 | ' | ' |
Investment in subsidiaries | 473 | 456 | ' | ' |
Other assets and deferred charges | 187 | 165 | ' | ' |
Total assets | 16,233 | 17,039 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Accounts payable | 169 | 183 | ' | ' |
Tobacco settlement accruals | 1,727 | 2,489 | ' | ' |
Due to related party | ' | 1 | ' | ' |
Deferred revenue, related party | 48 | 42 | ' | ' |
Current maturities of long-term debt | ' | 60 | ' | ' |
Other current liabilities | 744 | 910 | ' | ' |
Total current liabilities | 2,688 | 3,685 | ' | ' |
Intercompany notes and interest payable | 1,700 | 1,920 | ' | ' |
Deferred income taxes, net | 710 | 523 | ' | ' |
Long-term retirement benefits (less current portion) | 1,172 | 1,752 | ' | ' |
Other noncurrent liabilities | 156 | 188 | ' | ' |
Shareholders' equity | 9,807 | 8,971 | ' | ' |
Total liabilities and shareholders' equity | 16,233 | 17,039 | ' | ' |
Non-Guarantors | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 360 | 327 | 267 | 252 |
Accounts receivable | 32 | 24 | ' | ' |
Notes receivable | 36 | 34 | ' | ' |
Other receivables | 6 | 4 | ' | ' |
Inventories | 59 | 41 | ' | ' |
Deferred income taxes, net | 1 | 1 | ' | ' |
Prepaid expenses and other | 7 | 8 | ' | ' |
Total current assets | 501 | 439 | ' | ' |
Property, plant and equipment, net | 83 | 12 | ' | ' |
Trademarks and other intangible assets, net | 4 | 5 | ' | ' |
Goodwill | 12 | 12 | ' | ' |
Other assets and deferred charges | 18 | 51 | ' | ' |
Total assets | 618 | 519 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Accounts payable | 15 | 3 | ' | ' |
Other current liabilities | 46 | 64 | ' | ' |
Total current liabilities | 61 | 67 | ' | ' |
Intercompany notes and interest payable | 142 | ' | ' | ' |
Deferred income taxes, net | 2 | ' | ' | ' |
Long-term retirement benefits (less current portion) | 11 | 11 | ' | ' |
Shareholders' equity | 402 | 441 | ' | ' |
Total liabilities and shareholders' equity | 618 | 519 | ' | ' |
Eliminations | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Other receivables | -264 | -405 | ' | ' |
Inventories | -1 | -1 | ' | ' |
Deferred income taxes, net | -9 | -2 | ' | ' |
Prepaid expenses and other | -1 | -2 | ' | ' |
Total current assets | -275 | -410 | ' | ' |
Property, plant and equipment, net | ' | 1 | ' | ' |
Long-term intercompany notes | -3,137 | -3,236 | ' | ' |
Investment in subsidiaries | -10,209 | -9,412 | ' | ' |
Other assets and deferred charges | -54 | -62 | ' | ' |
Total assets | -13,675 | -13,119 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Other current liabilities | -275 | -409 | ' | ' |
Total current liabilities | -275 | -409 | ' | ' |
Intercompany notes and interest payable | -3,137 | -3,236 | ' | ' |
Deferred income taxes, net | -54 | -62 | ' | ' |
Shareholders' equity | -10,209 | -9,412 | ' | ' |
Total liabilities and shareholders' equity | ($13,675) | ($13,119) | ' | ' |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Net Sales | $2,039 | $2,135 | $2,179 | $1,883 | $2,078 | $2,117 | $2,176 | $1,933 | $8,236 | $8,304 | $8,541 | ||||||||
Gross profit | 1,058 | 1,131 | 1,180 | 1,189 | 945 | [1] | 1,035 | [1] | 1,064 | [1] | 939 | [1] | ' | ' | ' | ||||
Net income | $292 | [2],[3] | $457 | [2],[3] | $461 | [2],[3] | $508 | [2],[3] | $139 | [4] | $420 | [4] | $443 | [4] | $270 | [4] | ' | ' | ' |
Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income | $0.54 | [5] | $0.84 | [5] | $0.84 | [5] | $0.92 | [5] | $0.25 | [5] | $0.75 | [5] | $0.78 | [5] | $0.47 | [5] | $3.15 | $2.25 | $2.41 |
Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income | $0.54 | [5] | $0.84 | [5] | $0.84 | [5] | $0.92 | [5] | $0.25 | [5] | $0.74 | [5] | $0.78 | [5] | $0.47 | [5] | $3.14 | $2.24 | $2.40 |
[1] | Third quarter of 2012 gross profit includes an MTM pension/postretirement adjustment of $16 million. Fourth quarter of 2012 gross profit includes an MTM pension/postretirement adjustment of $108 million. | ||||||||||||||||||
[2] | Fourth quarter of 2013 net income includes a $32 million trademark impairment charge. | ||||||||||||||||||
[3] | Includes NPM Adjustment credits of $261 million in the first quarter of 2013, $90 million in the second quarter of 2013, $69 million in the third quarter of 2013 and $63 million in the fourth quarter of 2013, see "- Cost of Products Sold" in note 1. | ||||||||||||||||||
[4] | First quarter of 2012 net income includes a $149 million restructuring charge. Third quarter of 2012 net income includes a $40 million MTM postretirement adjustment. Fourth quarter of 2012 net income includes a $129 million trademark and other intangible assets charge and an MTM pension adjustment of $289 million. | ||||||||||||||||||
[5] | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the quarters may not equal the total for the year. |
Quarterly_Results_of_Operation3
Quarterly Results of Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Trademark and other intangible assets | $32 | ' | ' | ' | $129 | ' | ' | $32 | $129 | $48 |
NPM Adjustment credits | 63 | 69 | 90 | 261 | ' | ' | ' | ' | ' | ' |
Mark-to-market Adjustment | ' | ' | ' | ' | 108 | 16 | ' | ' | ' | ' |
Restructuring charge | ' | ' | ' | ' | ' | ' | 149 | ' | 149 | ' |
Asset Management Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mark-to-market Adjustment | ' | ' | ' | ' | $289 | $40 | ' | ' | ' | ' |