Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 06, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | RAI | |
Entity Registrant Name | REYNOLDS AMERICAN INC | |
Entity Central Index Key | 1275283 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 532,013,134 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Income Statement [Abstract] | ||||
Net sales | $1,975 | [1] | $1,849 | [1] |
Net sales, related party | 82 | 86 | ||
Net sales | 2,057 | 1,935 | ||
Costs and expenses: | ||||
Cost of products sold | 850 | [1] | 930 | [1] |
Selling, general and administrative expenses | 511 | 413 | ||
Amortization expense | 3 | 2 | ||
Operating income | 693 | [2] | 590 | [2] |
Interest and debt expense | 91 | 59 | ||
Interest income | -1 | -1 | ||
Other (income) expense, net | -17 | 1 | ||
Income from continuing operations before income taxes | 620 | 531 | ||
Provision for income taxes | 231 | 193 | ||
Income from continuing operations | 389 | 338 | ||
Income from discontinued operations, net of tax | 25 | |||
Net income | $389 | $363 | ||
Basic income per share: | ||||
Income from continuing operations | $0.73 | $0.63 | ||
Income from discontinued operations | $0.05 | |||
Net income | $0.73 | $0.68 | ||
Diluted income per share: | ||||
Income from continuing operations | $0.73 | $0.63 | ||
Income from discontinued operations | $0.04 | |||
Net income | $0.73 | $0.67 | ||
Dividends declared per share | $0.67 | $0.67 | ||
[1] | Excludes excise taxes of $840 million and $846 million for the three months ended March 31, 2015 and 2014, respectively. | |||
[2] | The three months ended March 31, 2015, includes a $70 million reduction in cost of goods sold associated with the 2003 NPM Adjustment claim, see “— Cost of Products Sold†in note 1. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Excise taxes | $840 | $846 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $389 | $363 |
Other comprehensive income (loss), net of tax: | ||
Retirement benefits, net of tax (benefit) expense (2015 — $(4); 2014 — $(4)) | -6 | -6 |
Unrealized gain on long-term investments, net of tax (benefit) expense (2014 — $1 ) | 1 | |
Cumulative translation adjustment and other, net of tax (benefit) expense (2015 — $(12)) | -27 | 1 |
Comprehensive income | $356 | $359 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement Of Income And Comprehensive Income [Abstract] | ||
Tax expense (benefit), retirement benefits | $4 | $4 |
Tax expense (benefit), unrealized gain on long-term investments | 1 | |
Tax expense (benefit), cumulative translation adjustment and other | $12 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from (used in) operating activities: | ||
Net income | $389 | $363 |
Income from discontinued operations, net of tax | -25 | |
Adjustments to reconcile to net cash flows from (used in) continuing operating activities: | ||
Depreciation and amortization | 28 | 25 |
Restructuring charge, net of cash payments | -13 | -3 |
Deferred income tax expense (benefit) | 26 | -7 |
Pension and postretirement | -35 | -32 |
Tobacco settlement | 397 | 459 |
Other, net | 288 | 132 |
Net cash flows from operating activities | 1,080 | 912 |
Cash flows from (used in) investing activities: | ||
Capital expenditures | -26 | -55 |
Other, net | 1 | -30 |
Net cash flows used in investing activities | -25 | -85 |
Cash flows from (used in) financing activities: | ||
Dividends paid on common stock | -356 | -339 |
Repurchase of common stock | -32 | -173 |
Principal borrowings under revolving credit facility | 300 | |
Repayments under revolving credit facility | -300 | |
Excess tax benefit on stock-based compensation plans | 14 | 10 |
Net cash flows used in financing activities | -374 | -502 |
Effect of exchange rate changes on cash and cash equivalents | -32 | 1 |
Net change in cash and cash equivalents | 649 | 326 |
Cash and cash equivalents at beginning of period | 966 | 1,500 |
Cash and cash equivalents at end of period | 1,615 | 1,826 |
Income taxes paid, net of refunds | 9 | 13 |
Interest paid | $31 | $30 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,615 | $966 |
Accounts receivable | 118 | 116 |
Accounts receivable, related party | 56 | 41 |
Other receivables | 12 | 12 |
Inventories | 1,268 | 1,281 |
Deferred income taxes, net | 704 | 703 |
Other current assets | 216 | 204 |
Total current assets | 3,989 | 3,323 |
Property, plant and equipment, net of accumulated depreciation (2015 — $1,648; 2014 — $1,627) | 1,202 | 1,203 |
Trademarks and other intangible assets, net of accumulated amortization | 2,418 | 2,421 |
Goodwill | 8,015 | 8,016 |
Other assets and deferred charges | 226 | 233 |
Total assets | 15,850 | 15,196 |
Current liabilities: | ||
Accounts payable | 126 | 142 |
Tobacco settlement accruals | 2,216 | 1,819 |
Due to related party | 1 | 1 |
Deferred revenue, related party | 23 | 32 |
Current maturities of long-term debt | 450 | 450 |
Dividends payable on common stock | 356 | 356 |
Other current liabilities | 1,053 | 744 |
Total current liabilities | 4,225 | 3,544 |
Long-term debt (less current maturities) | 4,629 | 4,633 |
Deferred income taxes, net | 397 | 383 |
Long-term retirement benefits (less current portion) | 1,973 | 1,997 |
Other noncurrent liabilities | 107 | 117 |
Commitments and contingencies: | ||
Shareholders’ equity: | ||
Common stock (shares issued: 2015 — 532,013,134; 2014 — 531,283,513) | 0 | 0 |
Paid-in capital | 6,200 | 6,200 |
Accumulated deficit | -1,284 | -1,314 |
Accumulated other comprehensive loss | -397 | -364 |
Total shareholders’ equity | 4,519 | 4,522 |
Total liabilities and shareholders' equity | $15,850 | $15,196 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $1,648 | $1,627 |
Common stock, shares issued | 532,013,134 | 531,283,513 |
Business_and_Summary_of_Signif
Business and Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Business and Summary of Significant Accounting Policies | Note 1 — Business and Summary of Significant Accounting Policies | ||||||||||||||||
Overview | |||||||||||||||||
The condensed consolidated financial statements (unaudited) 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; R. J. Reynolds Vapor Company, referred to as RJR Vapor; Niconovum USA, Inc; Niconovum AB; SFR Tobacco International GmbH, referred to as SFRTI, and various foreign subsidiaries affiliated with SFRTI. | |||||||||||||||||
RAI was incorporated as a holding company in the State of North Carolina in 2004, and its common stock is listed on the New York Stock Exchange, referred to as NYSE, under the symbol “RAI.” RAI was created to facilitate the business combination of the U.S. business of 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, with R. J. Reynolds Tobacco Company on July 30, 2004, with such combination 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 R.J. Reynolds Tobacco Holdings, Inc., referred to as 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 principally of the primary operations of R. J. Reynolds Tobacco Company. The American Snuff segment consists of the primary operations of American Snuff Co. The Santa Fe segment consists of the domestic operations of SFNTC. Included in All Other, among other RAI subsidiaries, are RJR Vapor, Niconovum USA, Inc., Niconovum AB, SFRTI and various foreign subsidiaries affiliated with SFRTI. 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 operating subsidiaries primarily conduct their businesses in the United States. | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
The accompanying interim condensed consolidated financial statements (unaudited) have been prepared in accordance with accounting principles generally accepted in the United States of America, referred to as GAAP, for interim financial information and, in management’s opinion, contain all adjustments, consisting only of normal recurring items, necessary for a fair presentation of the results for the periods presented. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All material intercompany balances have been eliminated. For interim reporting purposes, certain costs and expenses are charged to operations in proportion to the estimated total annual amount expected to be incurred primarily based on sales volumes. The results for the interim period ended March 31, 2015, are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |||||||||||||||||
The condensed consolidated financial statements (unaudited) should be read in conjunction with the consolidated financial statements and related footnotes, which appear in RAI’s Annual Report on Form 10-K for the year ended December 31, 2014. Certain reclassifications were made to conform prior years’ financial statements to the current presentation. Certain amounts presented in note 10 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 10 and as otherwise noted. | |||||||||||||||||
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 user fees charged by the U.S. Food and Drug Administration, referred to as the FDA; and the federal tobacco quota assessment, that expired in 2014. These expenses were as follows: | |||||||||||||||||
For the Three Months | |||||||||||||||||
Ended March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
State Settlement Agreements | $ | 394 | $ | 456 | |||||||||||||
FDA user fees | 35 | 34 | |||||||||||||||
Federal tobacco quota buyout | — | 55 | |||||||||||||||
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. 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. The Term Sheet is binding on all signatories. | |||||||||||||||||
Based on the jurisdictions bound by the Term Sheet through December 31, 2013, 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. | |||||||||||||||||
In June 2014, two additional states agreed to settle the NPM Adjustment disputes on similar terms as set forth in the Term Sheet, except for certain provisions related to the determination of credits to be received by the PMs. RJR Tobacco and SFNTC, collectively, will receive credits, currently estimated to total approximately $170 million, with respect to their NPM Adjustment claims from 2003 through 2012. The credits related to these two states will be applied against annual payments under the MSA over a five-year period, which effectively commenced with the April 2014 MSA payment. | |||||||||||||||||
As a result of meeting the performance requirements associated with the Term Sheet, RJR Tobacco and Santa Fe, collectively, recognized credits of $66 million and $63 million for the three months ended March 31, 2015 and 2014, respectively. RJR Tobacco expects to recognize additional credits through 2017, and Santa Fe expects to recognize additional credits through 2016. | |||||||||||||||||
On September 11, 2013, the Arbitration Panel ruled six states had not diligently enforced their qualifying statutes in 2003 related to the NPM Adjustment. Based on the status of the various challenges filed by the non-diligent states to certain rulings of the Arbitration Panel related to the 2003 NPM Adjustment claim, as of March 31, 2015, two of the non-diligent states are no longer challenging the findings of non-diligence entered against them by the Arbitration Panel. As a result, a certain portion of the NPM Adjustment claim for 2003 from these two states is now certain and can be estimated. Consequently, RJR Tobacco and Santa Fe, collectively, recognized $70 million as a reduction of cost of products sold for the three months ended March 31, 2015. | |||||||||||||||||
For additional information related to the NPM Adjustment settlement and the 2003 NPM Adjustment claim, see “—Litigation Affecting the Cigarette Industry —State Settlement Agreements—Enforcement and Validity; Adjustments” in note 10. | |||||||||||||||||
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 benefit obligations, referred to as the corridor. Actuarial gains and losses outside the corridor are generally recognized annually as of December 31, or when a plan is 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. | |||||||||||||||||
The components of the pension benefits and the postretirement benefits are set forth below: | |||||||||||||||||
For the Three Months | |||||||||||||||||
Ended March 31, | |||||||||||||||||
Postretirement | |||||||||||||||||
Pension Benefits | Benefits | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Service cost | $ | 6 | $ | 5 | $ | 1 | $ | 1 | |||||||||
Interest cost | 64 | 66 | 12 | 14 | |||||||||||||
Expected return on plan assets | (88 | ) | (90 | ) | (3 | ) | (3 | ) | |||||||||
Amortization of prior service cost (credit) | 1 | 1 | (11 | ) | (11 | ) | |||||||||||
Total benefit cost (credit) | $ | (17 | ) | $ | (18 | ) | $ | (1 | ) | $ | 1 | ||||||
RAI disclosed in its financial statements for the year ended December 31, 2014, that it expects to contribute $109 million to its pension plans in 2015, of which $2 million was contributed during the first three months of 2015. | |||||||||||||||||
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. | |||||||||||||||||
RAI evaluates its investments for possible impairment based on current economic conditions, credit loss experience and other criteria on a quarterly basis. The evaluation of investments for impairment requires significant judgments, including: | |||||||||||||||||
— | the identification of potentially impaired securities; | ||||||||||||||||
— | the determination of their estimated fair value; | ||||||||||||||||
— | the assessment of whether any decline in estimated fair value is other-than-temporary; and | ||||||||||||||||
— | the likelihood of selling before recovery. | ||||||||||||||||
If there is a decline in a security’s net realizable value that is other-than-temporary and it is not likely to be sold before recovery, the decline is separated into the amount of impairment related to credit loss and the amount of impairment related to all other factors. The decline related to the credit loss is recognized in earnings, while the decline related to all other factors is recognized in accumulated other comprehensive loss. | |||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||
In January 2015, the Financial Accounting Standards Board, referred to as the FASB, issued amended guidance which simplifies income statement presentation by eliminating the concept of extraordinary items. Previously, events or transactions that were both unusual in nature and infrequent in occurrence for a business entity were considered to be extraordinary items and required separate presentation, net of tax, after income from continuing operations. The guidance does not change the requirement to disclose items which are unusual in nature or infrequent in occurrence as a component of continuing operations or in the footnotes. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted if it is applied from the beginning of the fiscal year of adoption. The adoption of the amended guidance is not expected to have a material impact on RAI’s results of operations, cash flows or financial position. | |||||||||||||||||
In February 2015, the FASB issued amendments to the consolidation standard that reduce the number of consolidation models. The amended standard changes the way reporting entities examine partnerships and similar entities, evaluate service providers and decision makers as they relate to a variable interest entity, referred to as a VIE, and examine how related party interests in a VIE can affect the consolidation of that VIE. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. RAI is evaluating the effect that this guidance will have on its consolidated financial statements. | |||||||||||||||||
Proposed_Transactions
Proposed Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
Proposed Transactions | Note 2 – Proposed Transactions |
On July 15, 2014, RAI, a wholly owned subsidiary of RAI, referred to as Merger Sub, and Lorillard, Inc., referred to as Lorillard, entered into an agreement and plan of merger, referred to as the Merger Agreement, pursuant to which RAI agreed to acquire Lorillard in a cash and stock transaction, referred to as the Merger, valued at $27.4 billion (based on the closing price of RAI common stock on July 14, 2014), including the assumption of net debt. Upon completion of the Merger, each share of Lorillard common stock will be converted into the right to receive (1) 0.2909 of a share of RAI common stock plus (2) $50.50 in cash, collectively referred to as the Merger Consideration. | |
On July 15, 2014, RAI entered into an asset purchase agreement, referred to as the Asset Purchase Agreement, with Imperial Tobacco Group PLC, referred to as Imperial, and a wholly owned subsidiary of Imperial, referred to as Imperial Sub, pursuant to which Imperial Sub agreed to purchase the cigarette brands WINSTON, KOOL and SALEM (and, under certain circumstances, DORAL) owned by RAI subsidiaries, the cigarette brand Maverick and “e-vapor” brand blu (including SKYCIG) owned by Lorillard subsidiaries, and other assets, and agreed to assume certain liabilities for a total consideration of approximately $7.1 billion. The closing of the sale of these assets, referred to as the Divestiture, to Imperial Sub is conditioned upon, among other things, RAI’s completion of the Merger, and the approval of the Divestiture by Imperial’s shareholders, which occurred on January 28, 2015. The Merger is not conditioned upon the completion of the Divestiture. | |
In connection with these agreements, on July 15, 2014, BAT, RAI’s largest shareholder, and RAI entered into a subscription and support agreement, referred to as the Subscription Agreement, pursuant to which BAT, directly or indirectly through one or more of its wholly owned subsidiaries, will subscribe for and purchase, at a price of approximately $4.7 billion in the aggregate, shares of RAI common stock sufficient to maintain BAT’s approximately 42% beneficial ownership in RAI (the foregoing purchase is referred to as the Share Purchase). BAT also has agreed to vote and cause its applicable subsidiaries to vote (including by written consent) against any action or agreement that would reasonably be expected to materially impede, interfere with or prevent the issuance of the additional shares of RAI common stock as consideration to Lorillard shareholders in the Merger, referred to as the Lorillard Share Issuance, and to BAT in the Share Purchase, and any of the other transactions contemplated by the Merger Agreement, the Subscription Agreement or the Asset Purchase Agreement. The issuance of these additional shares of RAI common stock in the Lorillard Share Issuance and to BAT in the Share Purchase is collectively referred to as the Share Issuance. The Merger is not conditioned upon the completion of the Share Purchase. | |
The proposed transactions described above, referred to collectively as the Proposed Transactions, are subject to customary closing conditions, including shareholder and regulatory approvals. On January 28, 2015, RAI’s shareholders approved the Share Issuance, and Lorillard’s shareholders approved the Merger Agreement. As a result, all required shareholder approvals related to the Proposed Transactions have been obtained. The Merger Agreement contains certain other termination rights for each of RAI and Lorillard, including the right of each party to terminate the Merger Agreement if the Merger has not been completed by July 15, 2015, subject to an automatic six-month extension if, on July 15, 2015, the Merger has not yet received antitrust approval or certain specified legal restraints are in place but all other closing conditions have been satisfied. | |
In addition, on September 23, 2014, RAI entered into a bridge credit agreement, referred to as the Bridge Facility, with JPMorgan Chase Bank, N.A., Citibank, N.A., J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and various other lending institutions party thereto, collectively referred to as the Lenders, to provide a 364-day senior unsecured term loan bridge facility in an aggregate principal amount of up to $9 billion (subject to the satisfaction or waiver of the conditions stated therein) for the purpose of financing part of the cash portion of the Merger Consideration and related fees and expenses in connection with the transactions contemplated by the Merger Agreement. For additional information, see note 9. | |
There are a number of risks and uncertainties associated with the Proposed Transactions. For more information, see “— Cautionary Information Regarding Forward-Looking Statements” in Item 2 and the joint proxy statement/prospectus, referred to as the Joint Proxy Statement/Prospectus, contained in the Registration Statement on Form S-4 that was declared effective by the U.S. Securities and Exchange Commission, referred to as the SEC, on December 22, 2014. |
Fair_Value
Fair Value | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Fair Value | Note 3 — Fair Value | ||||||||||||||||||||||||||||||||
Fair Value of Financial Assets | |||||||||||||||||||||||||||||||||
Financial assets carried at fair value were as follows: | |||||||||||||||||||||||||||||||||
31-Mar-15 | December 31. 2104 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||
Cash equivalents | $ | 1,521 | $ | — | $ | — | $ | 1,521 | $ | 883 | $ | — | $ | — | $ | 883 | |||||||||||||||||
Other assets and deferred charges: | |||||||||||||||||||||||||||||||||
Auction rate securities | — | — | 78 | 78 | — | — | 79 | 79 | |||||||||||||||||||||||||
Mortgage-backed security | — | — | 12 | 12 | — | — | 12 | 12 | |||||||||||||||||||||||||
Marketable equity security | 2 | — | — | 2 | 2 | — | — | 2 | |||||||||||||||||||||||||
There were no transfers between the levels for the three months ended March 31, 2015, or in the year ended December 31, 2014. | |||||||||||||||||||||||||||||||||
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 condensed consolidated balance sheet (unaudited) as of March 31, 2015, and consolidated balance sheet as of December 31, 2014. 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 the London interbank offered rate, referred to as 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 2016, 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 March 31, 2015. | |||||||||||||||||||||||||||||||||
Financial assets classified as Level 3 investments were as follows: | |||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Cost | Gross | Estimated | Cost | Gross | Estimated | ||||||||||||||||||||||||||||
Unrealized | Fair Value | Unrealized | Fair Value | ||||||||||||||||||||||||||||||
Loss (1) | Loss(1) | ||||||||||||||||||||||||||||||||
Auction rate securities | $ | 99 | $ | (21 | ) | $ | 78 | $ | 99 | $ | (20 | ) | $ | 79 | |||||||||||||||||||
Mortgage-backed security | 17 | (5 | ) | 12 | 18 | (6 | ) | 12 | |||||||||||||||||||||||||
$ | 116 | $ | (26 | ) | $ | 90 | $ | 117 | $ | (26 | ) | $ | 91 | ||||||||||||||||||||
-1 | Unrealized losses, net of tax, are reported in accumulated other comprehensive loss in RAI’s condensed consolidated balance sheet (unaudited) as of March 31, 2015, and consolidated balance sheet as of December 31, 2014. | ||||||||||||||||||||||||||||||||
The changes in the Level 3 investments during the three months ended March 31, 2015, were as follows: | |||||||||||||||||||||||||||||||||
Auction Rate Securities | |||||||||||||||||||||||||||||||||
Cost | Gross | Estimated | |||||||||||||||||||||||||||||||
Unrealized | Fair Value | ||||||||||||||||||||||||||||||||
Gain (Loss) | |||||||||||||||||||||||||||||||||
Balance as of January 1, 2015 | $ | 99 | $ | (20 | ) | $ | 79 | ||||||||||||||||||||||||||
Unrealized loss | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 99 | $ | (21 | ) | $ | 78 | ||||||||||||||||||||||||||
Mortgage-Backed Security | |||||||||||||||||||||||||||||||||
Cost | Gross | Estimated | |||||||||||||||||||||||||||||||
Unrealized | Fair Value | ||||||||||||||||||||||||||||||||
Gain (Loss) | |||||||||||||||||||||||||||||||||
Balance as of January 1, 2015 | $ | 18 | $ | (6 | ) | $ | 12 | ||||||||||||||||||||||||||
Redemptions | (1 | ) | — | (1 | ) | ||||||||||||||||||||||||||||
Unrealized gain | — | 1 | 1 | ||||||||||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 17 | $ | (5 | ) | $ | 12 | ||||||||||||||||||||||||||
Fair Value of Debt | |||||||||||||||||||||||||||||||||
The estimated fair value of RAI’s outstanding debt, in the aggregate, was $5.5 billion and $5.4 billion, with an effective average annual interest rate of approximately 4.5%, as of March 31, 2015, and December 31, 2014, 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. | |||||||||||||||||||||||||||||||||
In September 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. As a result of this action and the maturity of debt in June 2012, RAI had $700 million of previously swapped outstanding fixed rate debt with an effective rate of interest of approximately 3.8%, as of March 31, 2015, and December 31, 2014. | |||||||||||||||||||||||||||||||||
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 RAI’s condensed consolidated balance sheet (unaudited) as of March 31, 2015, and consolidated balance sheet as of December 31, 2014, and will be amortized over the life of the related debt. | |||||||||||||||||||||||||||||||||
The amortization of derivative instruments impacted the condensed consolidated statements of income (unaudited) as follows: | |||||||||||||||||||||||||||||||||
For the Three Months | |||||||||||||||||||||||||||||||||
Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Interest and debt expense | $ | (4 | ) | $ | (4 | ) | |||||||||||||||||||||||||||
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Intangible Assets | Note 4 — 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 | $ | 44 | $ | 11,807 | |||||||||||||||||||
Accumulated impairment charges | (3,763 | ) | (28 | ) | — | — | (3,791 | ) | |||||||||||||||||||||
Net goodwill balance as of December 31, 2014 | 5,302 | 2,473 | 197 | 44 | $ | 8,016 | |||||||||||||||||||||||
2015 Activity | |||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||||
Net goodwill balance as of March 31, 2015 | $ | 5,302 | $ | 2,473 | $ | 197 | $ | 43 | $ | 8,015 | |||||||||||||||||||
The carrying amounts and changes therein of trademarks and other intangible assets by segment were as follows: | |||||||||||||||||||||||||||||
RJR Tobacco | American | Santa Fe | All Other | Consolidated | |||||||||||||||||||||||||
Snuff | |||||||||||||||||||||||||||||
Trademarks | Other | Trademarks | Trademarks | Other | Trademarks | Other | |||||||||||||||||||||||
Finite-lived: | |||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 12 | $ | 31 | $ | 7 | $ | — | $ | — | $ | 19 | $ | 31 | |||||||||||||||
Amortization | (1 | ) | (2 | ) | — | — | — | (1 | ) | (2 | ) | ||||||||||||||||||
Balance as of March 31, 2015 | $ | 11 | $ | 29 | $ | 7 | $ | — | $ | — | $ | 18 | $ | 29 | |||||||||||||||
Indefinite-lived: | |||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 977 | $ | 99 | $ | 1,136 | $ | 155 | $ | 4 | $ | 2,268 | $ | 103 | |||||||||||||||
Balance as of March 31, 2015 | $ | 977 | $ | 99 | $ | 1,136 | $ | 155 | $ | 4 | $ | 2,268 | $ | 103 | |||||||||||||||
Details of finite-lived intangible assets were as follows: | |||||||||||||||||||||||||||||
March 31, 2015 | 31-Dec-14 | ||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||||||
Contract manufacturing agreements | $ | 151 | $ | (137 | ) | $ | 14 | $ | 151 | $ | (135 | ) | $ | 16 | |||||||||||||||
Trademarks | 114 | (96 | ) | 18 | 114 | (95 | ) | 19 | |||||||||||||||||||||
Other intangibles | 15 | — | 15 | 15 | — | 15 | |||||||||||||||||||||||
$ | 280 | $ | (233 | ) | $ | 47 | $ | 280 | $ | (230 | ) | $ | 50 | ||||||||||||||||
The estimated remaining amortization associated with finite-lived intangible assets is expected to be expensed as follows: | |||||||||||||||||||||||||||||
Year | Amount | ||||||||||||||||||||||||||||
Remainder of 2015 | $ | 7 | |||||||||||||||||||||||||||
2016 | 9 | ||||||||||||||||||||||||||||
2017 | 9 | ||||||||||||||||||||||||||||
2018 | 8 | ||||||||||||||||||||||||||||
2019 | 2 | ||||||||||||||||||||||||||||
Thereafter | 12 | ||||||||||||||||||||||||||||
$ | 47 | ||||||||||||||||||||||||||||
Restructuring_Charges
Restructuring Charges | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Restructuring And Related Activities [Abstract] | |||||
Restructuring Charges | Note 5 — Restructuring | ||||
In 2012, RAI announced that it and its subsidiaries, RJR Tobacco and RAI Services Company, 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. All cash payments related to the restructuring will be complete by the end of 2016. | |||||
As of March 31, 2015, $122 million had been utilized to date. Accordingly, in the condensed consolidated balance sheet (unaudited) as of March 31, 2015, $23 million was included in other current liabilities and $4 million was included in other noncurrent liabilities. | |||||
The changes in the restructuring liability were as follows: | |||||
Employee | |||||
Severance and | |||||
Benefits | |||||
Balance as of December 31, 2013 | $ | 57 | |||
Utilized in 2014 | (17 | ) | |||
Balance as of December 31, 2014 | 40 | ||||
Utilized in 2015 | (13 | ) | |||
Balance as of March 31, 2015 | $ | 27 | |||
Income_Per_Share
Income Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Income Per Share | Note 6 — Income Per Share | ||||||||
The components of the calculation of income per share were as follows: | |||||||||
For the Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Income from continuing operations | $ | 389 | $ | 338 | |||||
Income from discontinued operations | — | 25 | |||||||
Net income | $ | 389 | $ | 363 | |||||
Basic weighted average shares, in thousands | 531,527 | 536,763 | |||||||
Effect of dilutive potential shares: | |||||||||
Restricted stock units | 1,970 | 2,120 | |||||||
Diluted weighted average shares, in thousands | 533,497 | 538,883 | |||||||
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Note 7 — Inventories | ||||||||
The major components of inventories were as follows: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Leaf tobacco | $ | 1,084 | $ | 1,125 | |||||
Other raw materials | 95 | 90 | |||||||
Work in process | 63 | 72 | |||||||
Finished products | 203 | 171 | |||||||
Other | 29 | 27 | |||||||
Total | 1,474 | 1,485 | |||||||
LIFO allowance | (206 | ) | (204 | ) | |||||
$ | 1,268 | $ | 1,281 | ||||||
RJR Tobacco performs its annual LIFO inventory valuation at December 31. Interim periods represent an estimate of the expected annual valuation. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | Note 8 — Income Taxes | ||||||||
The provision for income taxes from continuing operations was as follows: | |||||||||
For the Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Provision for income taxes from continuing operations | $ | 231 | $ | 193 | |||||
Effective tax rate | 37.3 | % | 36.3 | % | |||||
The effective tax rate for the three months ended March 31, 2015, as compared with the same prior-year period, was unfavorably impacted by an increase in tax attributable to nondeductible costs related to the Proposed Transactions, partially offset by a decrease in tax attributable to a reduction in state income tax rates. The effective tax rate for the three months ended March 31, 2014, was favorably impacted by a decrease in uncertain tax positions related to a federal audit settlement. | |||||||||
The effective tax rate for each period differed from the federal statutory rate of 35% due to the domestic manufacturing deduction of the American Jobs Creation Act of 2004, state income taxes and certain nondeductible items. | |||||||||
The audit of the 2010 and 2011 tax years by the Internal Revenue Service was closed on February 27, 2014. A tax benefit of $25 million attributable to a decrease in uncertain tax positions was recorded in discontinued operations for the three months ended March 31, 2014. |
Borrowing_Arrangements
Borrowing Arrangements | 3 Months Ended | |
Mar. 31, 2015 | ||
Debt Disclosure [Abstract] | ||
Borrowing Arrangements | Note 9 — Borrowing Arrangements | |
RAI Notes | ||
As of March 31, 2015, there were $450 million of current maturities of long-term debt. | ||
Credit Agreement | ||
In December 2014, RAI entered into a credit agreement, referred to as the Credit Agreement, with a syndicate of lenders, providing for a five-year, $2 billion senior unsecured revolving credit facility, which may be increased to $2.35 billion at the discretion of the lenders upon the request of RAI. The Credit Agreement replaced RAI’s four-year, $1.35 billion senior unsecured revolving credit facility dated October 8, 2013. | ||
Subject to certain conditions, RAI is able to use the revolving credit facility under the 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. Subject to certain conditions, RAI can also use borrowings under the revolving credit facility to finance part of the cash portion of the Merger Consideration and related fees and expenses in connection with the Proposed Transactions. | ||
The Credit Agreement contains restrictive covenants that, among other things: | ||
· | 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 Credit Agreement; | |
· | limit the ability of RAI and its Material Subsidiaries, as defined in the Credit Agreement, to sell or dispose of all or substantially all of their assets and engage in specified mergers or consolidations; and | |
· | limit the amount of debt that may be incurred by non-guarantor subsidiaries. | |
The Credit Agreement contains two financial covenants – a consolidated leverage ratio covenant and a consolidated interest coverage ratio covenant. Under the Credit Agreement, the consolidated leverage ratio may not exceed: | ||
· | 3.00 to 1.00 as of the last day of any period of four consecutive fiscal quarters, referred to as a Reference Period, ending prior to the closing of the Merger; | |
· | 4.50 to 1.00 for the Reference Periods ending on the last day of the fiscal quarter in which the Merger closes and on the last day of the next two succeeding fiscal quarters; | |
· | 4.25 to 1.00 for the Reference Periods ending on the last day of the next three succeeding quarters; | |
· | 3.75 to 1.00 for the Reference Periods ending on the last day of the next three succeeding quarters; and | |
· | 3.50 to 1.00 thereafter. | |
The Credit Agreement provides that the consolidated interest coverage ratio for any Reference Period ending on the last day of a fiscal quarter may not be less than 4.00 to 1.00. | ||
The maturity date of the Credit Agreement is December 18, 2019 (which date may be extended, subject to certain terms and conditions, with the agreement of the requisite lenders, in two separate one-year increments). The Credit Agreement contains customary events of default, including upon a change in control (as defined therein), which could result in the acceleration of all amounts and cancellation of all commitments outstanding under the Credit Agreement. | ||
The lenders’ obligations under the Credit Agreement to fund borrowings are subject to the accuracy of RAI’s representations and warranties and the absence of any default, provided, however, that the accuracy of RAI’s representation as to the absence of any material adverse effect (as defined in the Credit Agreement) is not a condition to borrowing for the purpose of refinancing maturing commercial paper or similar obligations or the borrowing of up to $500 million to finance part of the cash portion of the Merger Consideration and related fees and expenses. Instead, in the case of borrowings of up to $500 million to help fund the Merger, the lenders’ obligations are subject to the absence of a “Lorillard Material Adverse Effect” (as defined in the Credit Agreement) and certain other conditions, including the accuracy of Lorillard’s representations and warranties in the Merger Agreement that are material to the interests of the lenders, but only to the extent RAI has the right to terminate its obligations under the Merger Agreement because of such inaccuracy. | ||
Under the terms of the Credit Agreement, RAI is required to pay a facility fee of between 0.100% and 0.275%, based generally on the ratings of RAI’s senior, unsecured, long-term indebtedness, per annum on the lender commitments in respect of the revolving credit facility thereunder. | ||
Borrowings under the Credit Agreement bear interest, at the option of RAI, at a rate equal to an applicable margin 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 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. | ||
Certain of RAI’s subsidiaries, including its Material Subsidiaries, have guaranteed, on an unsecured basis, RAI’s obligations under the Credit Agreement. | ||
In the first three months of 2015, RAI borrowed and repaid $300 million under the Credit Agreement at an interest rate of 1.37%. As of March 31, 2015, there were no borrowings, and $7 million of letters of credit outstanding under the Credit Agreement. | ||
Bridge Facility | ||
In September 2014, RAI entered into the Bridge Facility with JPMorgan Chase Bank, N.A., as Administrative Agent and a lender, Citibank, N.A., as Syndication Agent and a lender, J.P. Morgan Securities LLC and Citigroup Global Markets Inc., as Joint Lead Arrangers and Joint Bookrunners, and various other lending institutions party thereto as lenders, collectively referred to as the Lenders, pursuant to which the Lenders have agreed, subject to the terms and conditions set forth in the Bridge Facility, to provide a term loan in an aggregate principal amount of up to $9 billion for the purpose of financing part of the cash portion of the Merger Consideration and related fees and expenses in connection with the transactions contemplated by the Merger Agreement. The Bridge Facility may be drawn only in a single drawing upon the closing of the Merger, matures 364 days after such date and may be prepaid (but not reborrowed) without premium or penalty. The obligations of RAI under the Bridge Facility are unsecured. The Bridge Facility contains restrictive covenants that are substantially similar to those contained in the Credit Agreement. In addition, under the Bridge Facility, the consolidated leverage ratio may not exceed 4.50 to 1.00 for the Reference Periods ending on the last day of the fiscal quarter in which the Merger closes and on the last day of the next two succeeding fiscal quarters, and 4.25 to 1.00 thereafter; and the consolidated interest coverage ratio for any Reference Period ending on the last day of a fiscal quarter may not be less than 3.00 to 1.00. | ||
The amount of the Bridge Facility available at closing is subject to reduction in accordance with its terms, including, but not limited to, reduction upon the issuance of debt and/or equity securities used to finance the Merger and related fees and expenses (subject to certain exceptions, including equity securities issued in the Share Issuance). | ||
Borrowings under the Bridge Facility bear interest at a rate per annum equal to, at RAI’s election: | ||
· | adjusted LIBOR for a one, two, three or six-month period; or | |
· | the greatest of the (1) prime rate, (2) federal funds effective rate plus 50 basis points or (3) one-month adjusted LIBOR plus 100 basis points, | |
plus, in each case, an applicable margin ranging from 50 to 275 basis points that depends upon RAI’s index debt rating established by rating services and the length of time that elapses from initial funding of the Bridge Facility until repayment thereof. | ||
Borrowings under the Bridge Facility are subject to certain conditions, including: | ||
· | the completion of the Merger, the Share Purchase and the Divestiture; | |
· | the absence of a “Company Material Adverse Effect”, as defined in the Merger Agreement, where “Company” refers to Lorillard; | |
· | RAI’s delivery to the Bridge Facility agents or filing with the SEC of certain financial statements; | |
· | RAI’s performance of certain activities in connection with the contemplated issuance of debt securities to finance the Merger and related fees and expenses; | |
· | the loans under the Credit Agreement used to finance the Merger not exceeding $500 million; and | |
· | the accuracy at the funding of the Bridge Facility of certain representations and warranties, including the accuracy of such of Lorillard’s representations and warranties as are material to the interests of the Lenders, but only to the extent RAI or Merger Sub have the right to terminate their obligations under the Merger Agreement because of such inaccuracy. | |
Under the terms of the Bridge Facility, RAI is required to pay certain customary fees to the Lenders as provided therein and in certain fee letters. | ||
Certain of RAI’s subsidiaries, including its Material Subsidiaries, as such term is defined in the Bridge Facility, have guaranteed, on an unsecured basis, RAI’s obligations under the Bridge Facility. For additional information on the Proposed Transactions, see note 2. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Shareholders' Equity | Note 11 — Shareholders’ Equity | ||||||||||||||||||||
Common Stock | Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||
Balance as of December 31, 2014 | $ | — | $ | 6,200 | $ | (1,314 | ) | $ | (364 | ) | $ | 4,522 | |||||||||
Net income | — | — | 389 | — | 389 | ||||||||||||||||
Retirement benefits, net of $4 million tax benefit | — | — | — | (6 | ) | (6 | ) | ||||||||||||||
Cumulative translation adjustment and other, | — | — | — | (27 | ) | (27 | ) | ||||||||||||||
net of $12 million tax benefit | |||||||||||||||||||||
Dividends - $0.67 per share | — | — | (359 | ) | — | (359 | ) | ||||||||||||||
Common stock repurchased | — | (32 | ) | — | — | (32 | ) | ||||||||||||||
Equity incentive award plan and stock-based | — | 18 | — | — | 18 | ||||||||||||||||
compensation | |||||||||||||||||||||
Excess tax benefit on stock-based compensation | — | 14 | — | — | 14 | ||||||||||||||||
plans | |||||||||||||||||||||
Balance as of March 31, 2015 | $ | — | $ | 6,200 | $ | (1,284 | ) | $ | (397 | ) | $ | 4,519 | |||||||||
Common Stock | Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||
Balance as of December 31, 2013 | $ | — | $ | 6,571 | $ | (1,348 | ) | $ | (56 | ) | $ | 5,167 | |||||||||
Net income | — | — | 363 | — | 363 | ||||||||||||||||
Retirement benefits, net of $4 million tax benefit | — | — | — | (6 | ) | (6 | ) | ||||||||||||||
Unrealized gain on long-term investments, net of | — | — | — | 1 | 1 | ||||||||||||||||
$1 million tax expense | |||||||||||||||||||||
Cumulative translation adjustment and other, | — | — | — | 1 | 1 | ||||||||||||||||
net of tax | |||||||||||||||||||||
Dividends - $0.67 per share | — | — | (362 | ) | — | (362 | ) | ||||||||||||||
Common stock repurchased | — | (173 | ) | — | — | (173 | ) | ||||||||||||||
Equity incentive award plan and stock-based | — | 12 | — | — | 12 | ||||||||||||||||
compensation | |||||||||||||||||||||
Excess tax benefit on stock-based compensation | — | 10 | — | — | 10 | ||||||||||||||||
plans | |||||||||||||||||||||
Balance as of March 31, 2014 | $ | — | $ | 6,420 | $ | (1,347 | ) | $ | (60 | ) | $ | 5,013 | |||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
The components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2015, were as follows: | |||||||||||||||||||||
Retirement Benefits | Unrealized Gain (Loss) on Long-Term Investments | Realized Loss on Hedging Instruments | Cumulative Translation Adjustment and Other | Total | |||||||||||||||||
Balance as of December 31, 2014 | $ | (294 | ) | $ | (14 | ) | $ | (12 | ) | $ | (44 | ) | $ | (364 | ) | ||||||
Other comprehensive income (loss) before | — | — | — | (27 | ) | (27 | ) | ||||||||||||||
reclassifications | |||||||||||||||||||||
Amounts reclassified from accumulated other | (6 | ) | — | — | — | (6 | ) | ||||||||||||||
comprehensive income (loss) | |||||||||||||||||||||
Net current-period other comprehensive income (loss) | (6 | ) | — | — | (27 | ) | (33 | ) | |||||||||||||
Balance as of March 31, 2015 | $ | (300 | ) | $ | (14 | ) | $ | (12 | ) | $ | (71 | ) | $ | (397 | ) | ||||||
The components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2014, were as follows: | |||||||||||||||||||||
Retirement Benefits | Unrealized Gain (Loss) on Long-Term Investments | Realized Loss on Hedging Instruments | Cumulative Translation Adjustment and Other | Total | |||||||||||||||||
Balance as of December 31, 2013 | $ | (17 | ) | $ | (16 | ) | $ | (13 | ) | $ | (10 | ) | $ | (56 | ) | ||||||
Other comprehensive income (loss) before | — | 1 | — | 1 | 2 | ||||||||||||||||
reclassifications | |||||||||||||||||||||
Amounts reclassified from accumulated other | (6 | ) | — | — | — | (6 | ) | ||||||||||||||
comprehensive income (loss) | |||||||||||||||||||||
Net current-period other comprehensive income (loss) | (6 | ) | 1 | — | 1 | (4 | ) | ||||||||||||||
Balance as of March 31, 2014 | $ | (23 | ) | $ | (15 | ) | $ | (13 | ) | $ | (9 | ) | $ | (60 | ) | ||||||
Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the condensed consolidated statement of income (unaudited) for the three months ended March 31, were as follows: | |||||||||||||||||||||
Components | Amounts Reclassified | Affected Line Item | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Defined benefit pension and postretirement plans: | |||||||||||||||||||||
Amortization of prior service costs | $ | (5 | ) | $ | (5 | ) | Cost of products sold | ||||||||||||||
Amortization of prior service costs | (5 | ) | (5 | ) | Selling, general and administrative expenses | ||||||||||||||||
(10 | ) | (10 | ) | ||||||||||||||||||
Deferred taxes | 4 | 4 | Provision for income taxes | ||||||||||||||||||
Total reclassifications | $ | (6 | ) | $ | (6 | ) | Net income | ||||||||||||||
Share Repurchases and Other | |||||||||||||||||||||
Restricted stock units granted in March 2012 under the 2009 Omnibus Incentive Compensation Plan, referred to as the Omnibus Plan, vested in March 2015 and were settled with the issuance of 1,153,766 shares of RAI common stock. In addition, during the first three months of 2015, at a cost of $32 million, RAI purchased 424,145 shares that were forfeited and cancelled with respect to tax liabilities associated with restricted stock units vesting under the Omnibus Plan. | |||||||||||||||||||||
On February 5, 2015, RAI’s board of directors declared a quarterly cash dividend of $0.67 per common share, or $2.68 on an annualized basis, to shareholders of record as of March 10, 2015. |
Stock_Plans
Stock Plans | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Plans | Note 12 — Stock Plans |
In February 2015, the board of directors of RAI approved a grant to key employees of RAI and its subsidiaries, effective March 2, 2015, of 693,090 nonvested restricted stock units under the Omnibus Plan. The restricted stock units generally will vest on March 2, 2018. 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 December 31, 2017. | |
As an equity-based grant, compensation expense relating to the 2015 grant under the Omnibus Plan will take into account the vesting period lapsed and will be calculated based on the per share closing price of RAI common stock on the date of grant, or $75.88. Following the vesting date, each grantee will receive a cash dividend equivalent payment equal to the aggregate amount of dividends per share paid on shares of RAI common stock during the performance period multiplied by the actual number of restricted stock units earned by the grantee. If RAI fails to pay its shareholders cumulative dividends of at least $8.04 per share for the three-year performance period ending December 31, 2017, 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%. | |
In April 2014, the board of directors of RAI approved a grant to a key employee of RAI, effective May 1, 2014, of 149,192 nonvested restricted stock units under the Omnibus Plan. The restricted stock units generally will vest on May 1, 2015. Upon settlement, the 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 overall performance of RAI and its subsidiaries during the one-year performance period beginning May 1, 2014, and ending April 30, 2015, against RAI’s 2014 annual incentive award program metrics and other performance factors. | |
As an equity-based grant, compensation expense relating to this 2014 grant under the Omnibus Plan will take into account the vesting period lapsed and will be calculated based on the per share closing price of RAI common stock as of the end of each quarter, which was $68.91 as of March 31, 2015. Following the vesting date, the grantee will receive a cash dividend equivalent payment equal to the aggregate amount of dividends per share paid on shares of RAI common stock during the performance period multiplied by the actual number of restricted stock units earned by the grantee. If RAI fails to pay its shareholders cumulative dividends of at least $2.68 per share for the one-year performance period ending April 30, 2015, then the award will be reduced by an amount equal to three times the percentage of the dividend underpayment, up to a maximum reduction of 50%. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information | Note 13 — Segment Information | ||||||||
RAI’s reportable operating segments are RJR Tobacco, American Snuff and Santa Fe. The RJR Tobacco segment consists principally of the primary operations of R. J. Reynolds Tobacco Company, the second largest tobacco company in the United States. The American Snuff segment consists of the primary operations of American Snuff Co. The Santa Fe segment consists of the domestic operations of SFNTC. Included in All Other, among other RAI subsidiaries, are RJR Vapor, Niconovum USA, Inc., Niconovum AB, SFRTI and various foreign subsidiaries affiliated with SFRTI. 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. | |||||||||
RJR Tobacco is RAI’s largest reportable operating segment, and its 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 offers a smoke-free tobacco product, CAMEL SNUS, and REVO, a cigarette which utilizes heat-not-burn technology. 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 also manages the super-premium cigarette brands, 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 super-premium cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand in the United States. | |||||||||
RJR Vapor is a manufacturer and marketer of digital vapor cigarettes under the VUSE brand name in the United States. Niconovum USA, Inc. and Niconovum AB are marketers of nicotine replacement therapy products in the United States and Sweden, respectively, under the ZONNIC brand name. SFRTI and various foreign subsidiaries affiliated with SFRTI distribute the NATURAL AMERICAN SPIRIT brand outside of the United States. | |||||||||
Intersegment revenues and items below the operating income line of the condensed consolidated statements of income (unaudited) 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: | |||||||||
For the Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net sales: | |||||||||
RJR Tobacco | $ | 1,608 | $ | 1,563 | |||||
American Snuff | 201 | 184 | |||||||
Santa Fe | 171 | 135 | |||||||
All Other | 77 | 53 | |||||||
Consolidated net sales | $ | 2,057 | $ | 1,935 | |||||
Operating income (loss): | |||||||||
RJR Tobacco(1) | $ | 588 | $ | 482 | |||||
American Snuff | 118 | 102 | |||||||
Santa Fe | 92 | 65 | |||||||
All Other | (61 | ) | (39 | ) | |||||
Corporate expense | (44 | ) | (20 | ) | |||||
Consolidated operating income | $ | 693 | $ | 590 | |||||
Reconciliation to income from continuing operations before | |||||||||
income taxes: | |||||||||
Consolidated operating income(1) | $ | 693 | $ | 590 | |||||
Interest and debt expense | 91 | 59 | |||||||
Interest income | (1 | ) | (1 | ) | |||||
Other (income) expense, net | (17 | ) | 1 | ||||||
Income from continuing operations before income taxes | $ | 620 | $ | 531 | |||||
(1) | The three months ended March 31, 2015, includes a $70 million reduction in cost of goods sold associated with the 2003 NPM Adjustment claim, see “— Cost of Products Sold” in note 1. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Related Party Transactions | Note 14 — 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. A summary of balances and transactions with such BAT affiliates is as follows: | |||||||||
Balances: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accounts receivable, related party | $ | 56 | $ | 41 | |||||
Due to related party | 1 | 1 | |||||||
Deferred revenue, related party | 23 | 32 | |||||||
Significant transactions: | |||||||||
For the Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net sales | $ | 82 | $ | 86 | |||||
Purchases | 2 | 9 | |||||||
RAI common stock purchases from B&W | — | 41 | |||||||
Capsule royalty income | — | 3 | |||||||
RJR Tobacco sells 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 during the three months ended March 31, 2015 and 2014. | |||||||||
RJR Tobacco recorded deferred sales revenue relating to leaf sold to BAT affiliates that had not been delivered as of the end of the respective quarter, 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 which ended in 2014. | |||||||||
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. | |||||||||
On July 15, 2014, RAI and BAT entered into a Subscription Agreement as part of the Proposed Transactions. For additional information, see note 2. | |||||||||
RAI_Guaranteed_Unsecured_Notes
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements | Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued) | ||||||||||||||||||||||
Note 15 — 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. 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 Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Net sales | $ | — | $ | 1,999 | $ | 68 | $ | (92 | ) | $ | 1,975 | ||||||||||||
Net sales, related party | — | 82 | — | — | 82 | ||||||||||||||||||
Net sales | — | 2,081 | 68 | (92 | ) | 2,057 | |||||||||||||||||
Cost of products sold | — | 869 | 70 | (89 | ) | 850 | |||||||||||||||||
Selling, general and administrative expenses | 19 | 425 | 67 | — | 511 | ||||||||||||||||||
Amortization expense | — | 3 | — | — | 3 | ||||||||||||||||||
Operating income (loss) | (19 | ) | 784 | (69 | ) | (3 | ) | 693 | |||||||||||||||
Interest and debt expense | 91 | 17 | 2 | (19 | ) | 91 | |||||||||||||||||
Interest income | (19 | ) | (1 | ) | — | 19 | (1 | ) | |||||||||||||||
Other (income) expense, net | 1 | (10 | ) | (19 | ) | 11 | (17 | ) | |||||||||||||||
Income (loss) before income taxes | (92 | ) | 778 | (52 | ) | (14 | ) | 620 | |||||||||||||||
Provision for (benefit from) income taxes | (27 | ) | 281 | (23 | ) | — | 231 | ||||||||||||||||
Equity income (loss) from subsidiaries | 454 | 20 | — | (474 | ) | — | |||||||||||||||||
Net income (loss) | $ | 389 | $ | 517 | $ | (29 | ) | $ | (488 | ) | $ | 389 | |||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Net sales | $ | — | $ | 1,814 | $ | 43 | $ | (8 | ) | $ | 1,849 | ||||||||||||
Net sales, related party | — | 86 | — | — | 86 | ||||||||||||||||||
Net sales | — | 1,900 | 43 | (8 | ) | 1,935 | |||||||||||||||||
Cost of products sold | — | 905 | 33 | (8 | ) | 930 | |||||||||||||||||
Selling, general and administrative expenses | 3 | 357 | 53 | — | 413 | ||||||||||||||||||
Amortization expense | — | 2 | — | — | 2 | ||||||||||||||||||
Operating income (loss) | (3 | ) | 636 | (43 | ) | — | 590 | ||||||||||||||||
Interest and debt expense | 59 | 23 | 1 | (24 | ) | 59 | |||||||||||||||||
Interest income | (24 | ) | (1 | ) | — | 24 | (1 | ) | |||||||||||||||
Other (income) expense, net | 2 | (11 | ) | (1 | ) | 11 | 1 | ||||||||||||||||
Income (loss) from continuing operations before | (40 | ) | 625 | (43 | ) | (11 | ) | 531 | |||||||||||||||
income taxes | |||||||||||||||||||||||
Provision for (benefit from) income taxes | (14 | ) | 223 | (16 | ) | — | 193 | ||||||||||||||||
Equity income (loss) from subsidiaries | 389 | 6 | — | (395 | ) | — | |||||||||||||||||
Income (loss) from continuing operations | 363 | 408 | (27 | ) | (406 | ) | 338 | ||||||||||||||||
Income from discontinued operations | — | 25 | — | — | 25 | ||||||||||||||||||
Net income (loss) | $ | 363 | $ | 433 | $ | (27 | ) | $ | (406 | ) | $ | 363 | |||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Net income (loss) | $ | 389 | $ | 517 | $ | (29 | ) | $ | (488 | ) | $ | 389 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Retirement benefits | (6 | ) | (6 | ) | — | 6 | (6 | ) | |||||||||||||||
Cumulative translation adjustment and other | (27 | ) | (27 | ) | (40 | ) | 67 | (27 | ) | ||||||||||||||
Comprehensive income (loss) | $ | 356 | $ | 484 | $ | (69 | ) | $ | (415 | ) | $ | 356 | |||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Net income (loss) | $ | 363 | $ | 433 | $ | (27 | ) | $ | (406 | ) | $ | 363 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Retirement benefits | (6 | ) | (6 | ) | — | 6 | (6 | ) | |||||||||||||||
Unrealized gain on long-term investments | 1 | 1 | — | (1 | ) | 1 | |||||||||||||||||
Cumulative translation adjustment and other | 1 | 1 | — | (1 | ) | 1 | |||||||||||||||||
Comprehensive income (loss) | $ | 359 | $ | 429 | $ | (27 | ) | $ | (402 | ) | $ | 359 | |||||||||||
Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the condensed consolidating statements of income (unaudited) for the three months ended March 31, 2015, were as follows: | |||||||||||||||||||||||
Components | Amounts Reclassified | Affected Line Item | |||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||||
Issuer | |||||||||||||||||||||||
Defined benefit pension and postretirement | |||||||||||||||||||||||
plans: | |||||||||||||||||||||||
Amortization of prior service costs | $ | — | $ | (5 | ) | $ | — | $ | — | $ | (5 | ) | Cost of products sold | ||||||||||
Amortization of prior service costs | — | (5 | ) | — | — | (5 | ) | Selling, general and administrative expenses | |||||||||||||||
— | (10 | ) | — | — | (10 | ) | |||||||||||||||||
Deferred taxes | — | 4 | — | — | 4 | Provision for income taxes | |||||||||||||||||
Defined benefit pension and postretirement plans | (6 | ) | — | — | 6 | — | Equity income (loss) from subsidiaries | ||||||||||||||||
Total reclassifications | $ | (6 | ) | $ | (6 | ) | $ | — | $ | 6 | $ | (6 | ) | Net income (loss) | |||||||||
Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the condensed consolidating statements of income (unaudited) for the three months ended March 31, 2014, were as follows: | |||||||||||||||||||||||
Components | Amounts Reclassified | Affected Line Item | |||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||||
Issuer | |||||||||||||||||||||||
Defined benefit pension and postretirement | |||||||||||||||||||||||
plans: | |||||||||||||||||||||||
Amortization of prior service costs | $ | — | $ | (5 | ) | $ | — | $ | — | $ | (5 | ) | Cost of products sold | ||||||||||
Amortization of prior service costs | — | (5 | ) | — | — | (5 | ) | Selling, general and administrative expenses | |||||||||||||||
— | (10 | ) | — | — | (10 | ) | |||||||||||||||||
Deferred taxes | — | 4 | — | — | 4 | Provision for income taxes | |||||||||||||||||
Defined benefit pension and postretirement plans | (6 | ) | — | — | 6 | — | Equity income (loss) from subsidiaries | ||||||||||||||||
Total reclassifications | $ | (6 | ) | $ | (6 | ) | $ | — | $ | 6 | $ | (6 | ) | Net income (loss) | |||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Cash flows from (used in) operating activities | $ | 480 | $ | 1,091 | $ | 2 | $ | (493 | ) | $ | 1,080 | ||||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (28 | ) | (1 | ) | 3 | (26 | ) | |||||||||||||||
Return of intercompany investments | 185 | — | — | (185 | ) | — | |||||||||||||||||
Other, net | — | 12 | — | (11 | ) | 1 | |||||||||||||||||
Net cash flows from (used in) investing activities | 185 | (16 | ) | (1 | ) | (193 | ) | (25 | ) | ||||||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||||||
Dividends paid on common stock | (356 | ) | (479 | ) | — | 479 | (356 | ) | |||||||||||||||
Repurchase of common stock | (32 | ) | — | — | — | (32 | ) | ||||||||||||||||
Principal borrowings under revolving credit facility | 300 | — | — | — | 300 | ||||||||||||||||||
Repayments under revolving credit facility | (300 | ) | — | — | — | (300 | ) | ||||||||||||||||
Excess tax benefit on stock-based compensation plans | 14 | — | — | — | 14 | ||||||||||||||||||
Dividends paid on preferred stock | (11 | ) | — | — | 11 | — | |||||||||||||||||
Other, net | (11 | ) | (205 | ) | 20 | 196 | — | ||||||||||||||||
Net cash flows from (used in) financing activities | (396 | ) | (684 | ) | 20 | 686 | (374 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash | — | — | (32 | ) | — | (32 | ) | ||||||||||||||||
equivalents | |||||||||||||||||||||||
Net change in cash and cash equivalents | 269 | 391 | (11 | ) | — | 649 | |||||||||||||||||
Cash and cash equivalents at beginning of period | 102 | 469 | 395 | — | 966 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 371 | $ | 860 | $ | 384 | $ | — | $ | 1,615 | |||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Cash flows from (used in) operating activities | $ | 474 | $ | 893 | $ | (17 | ) | $ | (438 | ) | $ | 912 | |||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (20 | ) | (38 | ) | 3 | (55 | ) | |||||||||||||||
Contributions to intercompany investments | (32 | ) | — | — | 32 | — | |||||||||||||||||
Other, net | (7 | ) | 12 | (31 | ) | (4 | ) | (30 | ) | ||||||||||||||
Net cash flows from (used in) investing activities | (39 | ) | (8 | ) | (69 | ) | 31 | (85 | ) | ||||||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||||||
Dividends paid on common stock | (339 | ) | (424 | ) | — | 424 | (339 | ) | |||||||||||||||
Repurchase of common stock | (173 | ) | — | — | — | (173 | ) | ||||||||||||||||
Excess tax benefit on stock-based compensation | 10 | — | — | — | 10 | ||||||||||||||||||
Dividends paid on preferred stock | (11 | ) | — | — | 11 | — | |||||||||||||||||
Receipt of equity | — | — | 32 | (32 | ) | — | |||||||||||||||||
Other, net | (11 | ) | (100 | ) | 107 | 4 | — | ||||||||||||||||
Net cash flows from (used in) financing activities | (524 | ) | (524 | ) | 139 | 407 | (502 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash | — | — | 1 | — | 1 | ||||||||||||||||||
equivalents | |||||||||||||||||||||||
Net change in cash and cash equivalents | (89 | ) | 361 | 54 | — | 326 | |||||||||||||||||
Cash and cash equivalents at beginning of period | 444 | 696 | 360 | — | 1,500 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 355 | $ | 1,057 | $ | 414 | $ | — | $ | 1,826 | |||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 371 | $ | 860 | $ | 384 | $ | — | $ | 1,615 | |||||||||||||
Accounts receivable | — | 71 | 47 | — | 118 | ||||||||||||||||||
Accounts receivable, related party | — | 56 | — | — | 56 | ||||||||||||||||||
Other receivables | 105 | 53 | 4 | (150 | ) | 12 | |||||||||||||||||
Inventories | — | 1,160 | 113 | (5 | ) | 1,268 | |||||||||||||||||
Deferred income taxes, net | 14 | 681 | 9 | — | 704 | ||||||||||||||||||
Other current assets | 21 | 191 | 4 | — | 216 | ||||||||||||||||||
Total current assets | 511 | 3,072 | 561 | (155 | ) | 3,989 | |||||||||||||||||
Property, plant and equipment, net | 3 | 1,169 | 30 | — | 1,202 | ||||||||||||||||||
Trademarks and other intangible assets, net | — | 2,414 | 4 | — | 2,418 | ||||||||||||||||||
Goodwill | — | 7,999 | 16 | — | 8,015 | ||||||||||||||||||
Long-term intercompany notes receivable | 1,593 | 180 | — | (1,773 | ) | — | |||||||||||||||||
Investment in subsidiaries | 8,305 | 431 | — | (8,736 | ) | — | |||||||||||||||||
Other assets and deferred charges | 102 | 174 | 22 | (72 | ) | 226 | |||||||||||||||||
Total assets | $ | 10,514 | $ | 15,439 | $ | 633 | $ | (10,736 | ) | $ | 15,850 | ||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||||
Accounts payable | $ | 2 | $ | 105 | $ | 19 | $ | — | $ | 126 | |||||||||||||
Tobacco settlement accruals | — | 2,216 | — | — | 2,216 | ||||||||||||||||||
Due to related party | — | 1 | — | — | 1 | ||||||||||||||||||
Deferred revenue, related party | — | 23 | — | — | 23 | ||||||||||||||||||
Current maturities of long-term debt | 450 | — | — | — | 450 | ||||||||||||||||||
Dividends payable on common stock | 356 | — | — | — | 356 | ||||||||||||||||||
Other current liabilities | 292 | 805 | 109 | (153 | ) | 1,053 | |||||||||||||||||
Total current liabilities | 1,100 | 3,150 | 128 | (153 | ) | 4,225 | |||||||||||||||||
Long-term intercompany notes payable | 180 | 1,280 | 313 | (1,773 | ) | — | |||||||||||||||||
Long-term debt (less current maturities) | 4,629 | — | — | — | 4,629 | ||||||||||||||||||
Deferred income taxes, net | — | 465 | — | (68 | ) | 397 | |||||||||||||||||
Long-term retirement benefits (less current portion) | 57 | 1,905 | 11 | — | 1,973 | ||||||||||||||||||
Other noncurrent liabilities | 29 | 78 | — | — | 107 | ||||||||||||||||||
Shareholders’ equity | 4,519 | 8,561 | 181 | (8,742 | ) | 4,519 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 10,514 | $ | 15,439 | $ | 633 | $ | (10,736 | ) | $ | 15,850 | ||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 102 | $ | 469 | $ | 395 | $ | — | $ | 966 | |||||||||||||
Accounts receivable | — | 74 | 42 | — | 116 | ||||||||||||||||||
Accounts receivable, related party | — | 41 | — | — | 41 | ||||||||||||||||||
Other receivables | 70 | 1,199 | 10 | (1,267 | ) | 12 | |||||||||||||||||
Inventories | — | 1,198 | 85 | (2 | ) | 1,281 | |||||||||||||||||
Deferred income taxes, net | 5 | 688 | 10 | — | 703 | ||||||||||||||||||
Other current assets | 50 | 151 | 1 | 2 | 204 | ||||||||||||||||||
Total current assets | 227 | 3,820 | 543 | (1,267 | ) | 3,323 | |||||||||||||||||
Property, plant and equipment, net | 3 | 1,170 | 30 | — | 1,203 | ||||||||||||||||||
Trademarks and other intangible assets, net | — | 2,417 | 4 | — | 2,421 | ||||||||||||||||||
Goodwill | — | 7,999 | 17 | — | 8,016 | ||||||||||||||||||
Long-term intercompany notes receivable | 1,593 | 190 | — | (1,783 | ) | — | |||||||||||||||||
Investment in subsidiaries | 9,598 | 450 | — | (10,048 | ) | — | |||||||||||||||||
Other assets and deferred charges | 101 | 180 | 23 | (71 | ) | 233 | |||||||||||||||||
Total assets | $ | 11,522 | $ | 16,226 | $ | 617 | $ | (13,169 | ) | $ | 15,196 | ||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||||
Accounts payable | $ | 1 | $ | 128 | $ | 13 | $ | — | $ | 142 | |||||||||||||
Tobacco settlement accruals | — | 1,819 | — | — | 1,819 | ||||||||||||||||||
Due to related party | — | 1 | — | — | 1 | ||||||||||||||||||
Deferred revenue, related party | — | 32 | — | — | 32 | ||||||||||||||||||
Current maturities of long-term debt | 450 | — | — | — | 450 | ||||||||||||||||||
Dividends payable on common stock | 356 | — | — | — | 356 | ||||||||||||||||||
Other current liabilities | 1,280 | 682 | 51 | (1,269 | ) | 744 | |||||||||||||||||
Total current liabilities | 2,087 | 2,662 | 64 | (1,269 | ) | 3,544 | |||||||||||||||||
Long-term intercompany notes payable | 190 | 1,300 | 293 | (1,783 | ) | — | |||||||||||||||||
Long-term debt (less current maturities) | 4,633 | — | — | — | 4,633 | ||||||||||||||||||
Deferred income taxes, net | — | 450 | — | (67 | ) | 383 | |||||||||||||||||
Long-term retirement benefits (less current portion) | 57 | 1,930 | 10 | — | 1,997 | ||||||||||||||||||
Other noncurrent liabilities | 33 | 83 | 1 | — | 117 | ||||||||||||||||||
Shareholders’ equity | 4,522 | 9,801 | 249 | (10,050 | ) | 4,522 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 11,522 | $ | 16,226 | $ | 617 | $ | (13,169 | ) | $ | 15,196 | ||||||||||||
Business_and_Summary_of_Signif1
Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Overview | Overview | ||||||||||||||||
The condensed consolidated financial statements (unaudited) 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; R. J. Reynolds Vapor Company, referred to as RJR Vapor; Niconovum USA, Inc; Niconovum AB; SFR Tobacco International GmbH, referred to as SFRTI, and various foreign subsidiaries affiliated with SFRTI. | |||||||||||||||||
RAI was incorporated as a holding company in the State of North Carolina in 2004, and its common stock is listed on the New York Stock Exchange, referred to as NYSE, under the symbol “RAI.” RAI was created to facilitate the business combination of the U.S. business of 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, with R. J. Reynolds Tobacco Company on July 30, 2004, with such combination 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 R.J. Reynolds Tobacco Holdings, Inc., referred to as 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 principally of the primary operations of R. J. Reynolds Tobacco Company. The American Snuff segment consists of the primary operations of American Snuff Co. The Santa Fe segment consists of the domestic operations of SFNTC. Included in All Other, among other RAI subsidiaries, are RJR Vapor, Niconovum USA, Inc., Niconovum AB, SFRTI and various foreign subsidiaries affiliated with SFRTI. 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 operating subsidiaries primarily conduct their businesses in the United States. | |||||||||||||||||
Basis of Presentation | Basis of Presentation | ||||||||||||||||
The accompanying interim condensed consolidated financial statements (unaudited) have been prepared in accordance with accounting principles generally accepted in the United States of America, referred to as GAAP, for interim financial information and, in management’s opinion, contain all adjustments, consisting only of normal recurring items, necessary for a fair presentation of the results for the periods presented. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All material intercompany balances have been eliminated. For interim reporting purposes, certain costs and expenses are charged to operations in proportion to the estimated total annual amount expected to be incurred primarily based on sales volumes. The results for the interim period ended March 31, 2015, are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |||||||||||||||||
The condensed consolidated financial statements (unaudited) should be read in conjunction with the consolidated financial statements and related footnotes, which appear in RAI’s Annual Report on Form 10-K for the year ended December 31, 2014. Certain reclassifications were made to conform prior years’ financial statements to the current presentation. Certain amounts presented in note 10 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 10 and as otherwise noted. | |||||||||||||||||
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 user fees charged by the U.S. Food and Drug Administration, referred to as the FDA; and the federal tobacco quota assessment, that expired in 2014. These expenses were as follows: | |||||||||||||||||
For the Three Months | |||||||||||||||||
Ended March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
State Settlement Agreements | $ | 394 | $ | 456 | |||||||||||||
FDA user fees | 35 | 34 | |||||||||||||||
Federal tobacco quota buyout | — | 55 | |||||||||||||||
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. 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. The Term Sheet is binding on all signatories. | |||||||||||||||||
Based on the jurisdictions bound by the Term Sheet through December 31, 2013, 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. | |||||||||||||||||
In June 2014, two additional states agreed to settle the NPM Adjustment disputes on similar terms as set forth in the Term Sheet, except for certain provisions related to the determination of credits to be received by the PMs. RJR Tobacco and SFNTC, collectively, will receive credits, currently estimated to total approximately $170 million, with respect to their NPM Adjustment claims from 2003 through 2012. The credits related to these two states will be applied against annual payments under the MSA over a five-year period, which effectively commenced with the April 2014 MSA payment. | |||||||||||||||||
As a result of meeting the performance requirements associated with the Term Sheet, RJR Tobacco and Santa Fe, collectively, recognized credits of $66 million and $63 million for the three months ended March 31, 2015 and 2014, respectively. RJR Tobacco expects to recognize additional credits through 2017, and Santa Fe expects to recognize additional credits through 2016. | |||||||||||||||||
On September 11, 2013, the Arbitration Panel ruled six states had not diligently enforced their qualifying statutes in 2003 related to the NPM Adjustment. Based on the status of the various challenges filed by the non-diligent states to certain rulings of the Arbitration Panel related to the 2003 NPM Adjustment claim, as of March 31, 2015, two of the non-diligent states are no longer challenging the findings of non-diligence entered against them by the Arbitration Panel. As a result, a certain portion of the NPM Adjustment claim for 2003 from these two states is now certain and can be estimated. Consequently, RJR Tobacco and Santa Fe, collectively, recognized $70 million as a reduction of cost of products sold for the three months ended March 31, 2015. | |||||||||||||||||
For additional information related to the NPM Adjustment settlement and the 2003 NPM Adjustment claim, see “—Litigation Affecting the Cigarette Industry —State Settlement Agreements—Enforcement and Validity; Adjustments” in note 10. | |||||||||||||||||
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 benefit obligations, referred to as the corridor. Actuarial gains and losses outside the corridor are generally recognized annually as of December 31, or when a plan is 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. | |||||||||||||||||
The components of the pension benefits and the postretirement benefits are set forth below: | |||||||||||||||||
For the Three Months | |||||||||||||||||
Ended March 31, | |||||||||||||||||
Postretirement | |||||||||||||||||
Pension Benefits | Benefits | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Service cost | $ | 6 | $ | 5 | $ | 1 | $ | 1 | |||||||||
Interest cost | 64 | 66 | 12 | 14 | |||||||||||||
Expected return on plan assets | (88 | ) | (90 | ) | (3 | ) | (3 | ) | |||||||||
Amortization of prior service cost (credit) | 1 | 1 | (11 | ) | (11 | ) | |||||||||||
Total benefit cost (credit) | $ | (17 | ) | $ | (18 | ) | $ | (1 | ) | $ | 1 | ||||||
RAI disclosed in its financial statements for the year ended December 31, 2014, that it expects to contribute $109 million to its pension plans in 2015, of which $2 million was contributed during the first three months of 2015. | |||||||||||||||||
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. | |||||||||||||||||
RAI evaluates its investments for possible impairment based on current economic conditions, credit loss experience and other criteria on a quarterly basis. The evaluation of investments for impairment requires significant judgments, including: | |||||||||||||||||
— | the identification of potentially impaired securities; | ||||||||||||||||
— | the determination of their estimated fair value; | ||||||||||||||||
— | the assessment of whether any decline in estimated fair value is other-than-temporary; and | ||||||||||||||||
— | the likelihood of selling before recovery. | ||||||||||||||||
If there is a decline in a security’s net realizable value that is other-than-temporary and it is not likely to be sold before recovery, the decline is separated into the amount of impairment related to credit loss and the amount of impairment related to all other factors. The decline related to the credit loss is recognized in earnings, while the decline related to all other factors is recognized in accumulated other comprehensive loss. | |||||||||||||||||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements | ||||||||||||||||
In January 2015, the Financial Accounting Standards Board, referred to as the FASB, issued amended guidance which simplifies income statement presentation by eliminating the concept of extraordinary items. Previously, events or transactions that were both unusual in nature and infrequent in occurrence for a business entity were considered to be extraordinary items and required separate presentation, net of tax, after income from continuing operations. The guidance does not change the requirement to disclose items which are unusual in nature or infrequent in occurrence as a component of continuing operations or in the footnotes. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted if it is applied from the beginning of the fiscal year of adoption. The adoption of the amended guidance is not expected to have a material impact on RAI’s results of operations, cash flows or financial position. | |||||||||||||||||
In February 2015, the FASB issued amendments to the consolidation standard that reduce the number of consolidation models. The amended standard changes the way reporting entities examine partnerships and similar entities, evaluate service providers and decision makers as they relate to a variable interest entity, referred to as a VIE, and examine how related party interests in a VIE can affect the consolidation of that VIE. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. RAI is evaluating the effect that this guidance will have on its consolidated financial statements. |
Business_and_Summary_of_Signif2
Business and Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
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 user fees charged by the U.S. Food and Drug Administration, referred to as the FDA; and the federal tobacco quota assessment, that expired in 2014. These expenses were as follows: | ||||||||||||||||
For the Three Months | |||||||||||||||||
Ended March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
State Settlement Agreements | $ | 394 | $ | 456 | |||||||||||||
FDA user fees | 35 | 34 | |||||||||||||||
Federal tobacco quota buyout | — | 55 | |||||||||||||||
Components of Pension Benefits and Postretirement Benefits | The components of the pension benefits and the postretirement benefits are set forth below: | ||||||||||||||||
For the Three Months | |||||||||||||||||
Ended March 31, | |||||||||||||||||
Postretirement | |||||||||||||||||
Pension Benefits | Benefits | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Service cost | $ | 6 | $ | 5 | $ | 1 | $ | 1 | |||||||||
Interest cost | 64 | 66 | 12 | 14 | |||||||||||||
Expected return on plan assets | (88 | ) | (90 | ) | (3 | ) | (3 | ) | |||||||||
Amortization of prior service cost (credit) | 1 | 1 | (11 | ) | (11 | ) | |||||||||||
Total benefit cost (credit) | $ | (17 | ) | $ | (18 | ) | $ | (1 | ) | $ | 1 | ||||||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities | Financial assets carried at fair value were as follows: | ||||||||||||||||||||||||||||||||
31-Mar-15 | December 31. 2104 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||||||||||
Cash equivalents | $ | 1,521 | $ | — | $ | — | $ | 1,521 | $ | 883 | $ | — | $ | — | $ | 883 | |||||||||||||||||
Other assets and deferred charges: | |||||||||||||||||||||||||||||||||
Auction rate securities | — | — | 78 | 78 | — | — | 79 | 79 | |||||||||||||||||||||||||
Mortgage-backed security | — | — | 12 | 12 | — | — | 12 | 12 | |||||||||||||||||||||||||
Marketable equity security | 2 | — | — | 2 | 2 | — | — | 2 | |||||||||||||||||||||||||
Financial Assets Classified as Level 3 Investments | Financial assets classified as Level 3 investments were as follows: | ||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||||||||
Cost | Gross | Estimated | Cost | Gross | Estimated | ||||||||||||||||||||||||||||
Unrealized | Fair Value | Unrealized | Fair Value | ||||||||||||||||||||||||||||||
Loss (1) | Loss(1) | ||||||||||||||||||||||||||||||||
Auction rate securities | $ | 99 | $ | (21 | ) | $ | 78 | $ | 99 | $ | (20 | ) | $ | 79 | |||||||||||||||||||
Mortgage-backed security | 17 | (5 | ) | 12 | 18 | (6 | ) | 12 | |||||||||||||||||||||||||
$ | 116 | $ | (26 | ) | $ | 90 | $ | 117 | $ | (26 | ) | $ | 91 | ||||||||||||||||||||
-1 | Unrealized losses, net of tax, are reported in accumulated other comprehensive loss in RAI’s condensed consolidated balance sheet (unaudited) as of March 31, 2015, and consolidated balance sheet as of December 31, 2014. | ||||||||||||||||||||||||||||||||
Changes in Level 3 Investments | The changes in the Level 3 investments during the three months ended March 31, 2015, were as follows: | ||||||||||||||||||||||||||||||||
Auction Rate Securities | |||||||||||||||||||||||||||||||||
Cost | Gross | Estimated | |||||||||||||||||||||||||||||||
Unrealized | Fair Value | ||||||||||||||||||||||||||||||||
Gain (Loss) | |||||||||||||||||||||||||||||||||
Balance as of January 1, 2015 | $ | 99 | $ | (20 | ) | $ | 79 | ||||||||||||||||||||||||||
Unrealized loss | — | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 99 | $ | (21 | ) | $ | 78 | ||||||||||||||||||||||||||
Mortgage-Backed Security | |||||||||||||||||||||||||||||||||
Cost | Gross | Estimated | |||||||||||||||||||||||||||||||
Unrealized | Fair Value | ||||||||||||||||||||||||||||||||
Gain (Loss) | |||||||||||||||||||||||||||||||||
Balance as of January 1, 2015 | $ | 18 | $ | (6 | ) | $ | 12 | ||||||||||||||||||||||||||
Redemptions | (1 | ) | — | (1 | ) | ||||||||||||||||||||||||||||
Unrealized gain | — | 1 | 1 | ||||||||||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 17 | $ | (5 | ) | $ | 12 | ||||||||||||||||||||||||||
Amortization of Net Gain Loss upon Termination of Derivative Instruments Impacted Income Statement | The amortization of derivative instruments impacted the condensed consolidated statements of income (unaudited) as follows: | ||||||||||||||||||||||||||||||||
For the Three Months | |||||||||||||||||||||||||||||||||
Ended March 31, | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Interest and debt expense | $ | (4 | ) | $ | (4 | ) | |||||||||||||||||||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
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 | $ | 44 | $ | 11,807 | |||||||||||||||||||
Accumulated impairment charges | (3,763 | ) | (28 | ) | — | — | (3,791 | ) | |||||||||||||||||||||
Net goodwill balance as of December 31, 2014 | 5,302 | 2,473 | 197 | 44 | $ | 8,016 | |||||||||||||||||||||||
2015 Activity | |||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||||
Net goodwill balance as of March 31, 2015 | $ | 5,302 | $ | 2,473 | $ | 197 | $ | 43 | $ | 8,015 | |||||||||||||||||||
Carrying Amounts and Changes of Trademarks and Other Intangible Assets by Segment | The carrying amounts and changes therein of trademarks and other intangible assets by segment were as follows: | ||||||||||||||||||||||||||||
RJR Tobacco | American | Santa Fe | All Other | Consolidated | |||||||||||||||||||||||||
Snuff | |||||||||||||||||||||||||||||
Trademarks | Other | Trademarks | Trademarks | Other | Trademarks | Other | |||||||||||||||||||||||
Finite-lived: | |||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 12 | $ | 31 | $ | 7 | $ | — | $ | — | $ | 19 | $ | 31 | |||||||||||||||
Amortization | (1 | ) | (2 | ) | — | — | — | (1 | ) | (2 | ) | ||||||||||||||||||
Balance as of March 31, 2015 | $ | 11 | $ | 29 | $ | 7 | $ | — | $ | — | $ | 18 | $ | 29 | |||||||||||||||
Indefinite-lived: | |||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 977 | $ | 99 | $ | 1,136 | $ | 155 | $ | 4 | $ | 2,268 | $ | 103 | |||||||||||||||
Balance as of March 31, 2015 | $ | 977 | $ | 99 | $ | 1,136 | $ | 155 | $ | 4 | $ | 2,268 | $ | 103 | |||||||||||||||
Details of Finite-Lived Intangible Assets | Details of finite-lived intangible assets were as follows: | ||||||||||||||||||||||||||||
March 31, 2015 | 31-Dec-14 | ||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||||||
Contract manufacturing agreements | $ | 151 | $ | (137 | ) | $ | 14 | $ | 151 | $ | (135 | ) | $ | 16 | |||||||||||||||
Trademarks | 114 | (96 | ) | 18 | 114 | (95 | ) | 19 | |||||||||||||||||||||
Other intangibles | 15 | — | 15 | 15 | — | 15 | |||||||||||||||||||||||
$ | 280 | $ | (233 | ) | $ | 47 | $ | 280 | $ | (230 | ) | $ | 50 | ||||||||||||||||
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 | ||||||||||||||||||||||||||||
Remainder of 2015 | $ | 7 | |||||||||||||||||||||||||||
2016 | 9 | ||||||||||||||||||||||||||||
2017 | 9 | ||||||||||||||||||||||||||||
2018 | 8 | ||||||||||||||||||||||||||||
2019 | 2 | ||||||||||||||||||||||||||||
Thereafter | 12 | ||||||||||||||||||||||||||||
$ | 47 | ||||||||||||||||||||||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Restructuring And Related Activities [Abstract] | |||||
Components of Restructuring Charge Accrued and Utilized | The changes in the restructuring liability were as follows: | ||||
Employee | |||||
Severance and | |||||
Benefits | |||||
Balance as of December 31, 2013 | $ | 57 | |||
Utilized in 2014 | (17 | ) | |||
Balance as of December 31, 2014 | 40 | ||||
Utilized in 2015 | (13 | ) | |||
Balance as of March 31, 2015 | $ | 27 | |||
Income_Per_Share_Tables
Income Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Components of Calculation of Income Per Share | The components of the calculation of income per share were as follows: | ||||||||
For the Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Income from continuing operations | $ | 389 | $ | 338 | |||||
Income from discontinued operations | — | 25 | |||||||
Net income | $ | 389 | $ | 363 | |||||
Basic weighted average shares, in thousands | 531,527 | 536,763 | |||||||
Effect of dilutive potential shares: | |||||||||
Restricted stock units | 1,970 | 2,120 | |||||||
Diluted weighted average shares, in thousands | 533,497 | 538,883 | |||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Components of Inventories | The major components of inventories were as follows: | ||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Leaf tobacco | $ | 1,084 | $ | 1,125 | |||||
Other raw materials | 95 | 90 | |||||||
Work in process | 63 | 72 | |||||||
Finished products | 203 | 171 | |||||||
Other | 29 | 27 | |||||||
Total | 1,474 | 1,485 | |||||||
LIFO allowance | (206 | ) | (204 | ) | |||||
$ | 1,268 | $ | 1,281 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Provision for income Taxes from Continuing Operations | The provision for income taxes from continuing operations was as follows: | ||||||||
For the Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Provision for income taxes from continuing operations | $ | 231 | $ | 193 | |||||
Effective tax rate | 37.3 | % | 36.3 | % | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
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 March 31, 2015, compared with the number of cases pending against RJR Tobacco, its affiliates or indemnitees as of December 31, 2014, as reported in RAI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the SEC on February 10, 2015, and a cross-reference to the discussion of each case type. | ||||||||||||||||||||||||||||||||||||
Case Type | RJR Tobacco’s | Change in | Page | ||||||||||||||||||||||||||||||||||
U.S. Case Numbers as | Number of | Reference | |||||||||||||||||||||||||||||||||||
of March 31, 2015 | Cases Since | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Increase/(Decrease) | |||||||||||||||||||||||||||||||||||||
Individual Smoking and Health | 100 | 4 | 28 | ||||||||||||||||||||||||||||||||||
West Virginia IPIC (Number of Plaintiffs)* | 1 (approx. 564) | No change | 29 | ||||||||||||||||||||||||||||||||||
Engle Progeny (Number of Plaintiffs)** | 3,638 (approx. 4,681) | (247) (278) | 29 | ||||||||||||||||||||||||||||||||||
Broin II | 2,555 | -3 | 41 | ||||||||||||||||||||||||||||||||||
Class Action | 20 | No change | 42 | ||||||||||||||||||||||||||||||||||
Health-Care Cost Recovery | 2 | No change | 44 | ||||||||||||||||||||||||||||||||||
State Settlement Agreements—Enforcement and Validity; | 28 | -1 | 50 | ||||||||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||||||||||
Antitrust | 1 | No change | 54 | ||||||||||||||||||||||||||||||||||
Other Litigation and Developments | 11 | -1 | 54 | ||||||||||||||||||||||||||||||||||
* | 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 does not reflect the impact of the proposed federal Engle Progeny settlement. | ||||||||||||||||||||||||||||||||||||
Verdicts in Individual Engle Progeny Cases that have been Tried and Remain Pending | The following chart reflects the details related to Hiott, Starr-Blundell, Clayton, Cohen, Buonomo, Hallgren, Sikes, and Thibault: | ||||||||||||||||||||||||||||||||||||
Plaintiff Case | RJR | Compensatory | Punitive | Appeal Status | |||||||||||||||||||||||||||||||||
Name | Tobacco | Damages | Damages | ||||||||||||||||||||||||||||||||||
Allocation of | (as adjusted)(1) | ||||||||||||||||||||||||||||||||||||
Fault | |||||||||||||||||||||||||||||||||||||
Hiott | 40% | $ | 730,000 | $ | — | Notice to invoke jurisdiction | |||||||||||||||||||||||||||||||
of Florida Supreme Court | |||||||||||||||||||||||||||||||||||||
pending | |||||||||||||||||||||||||||||||||||||
Starr-Blundell | 10% | 50,000 | — | Pending – First DCA | |||||||||||||||||||||||||||||||||
Clayton | 10% | 60,000 | — | Pending – First DCA | |||||||||||||||||||||||||||||||||
Cohen | 33.30% | 3,330,000 | 10,000,000 | Remanded for partial new trial; notice to invoke jurisdiction of Florida Supreme Court pending | |||||||||||||||||||||||||||||||||
Buonomo | 77.50% | 4,060,000 | 25,000,000 | Remanded for new trial; | |||||||||||||||||||||||||||||||||
notice to invoke jurisdiction of Florida Supreme Court pending | |||||||||||||||||||||||||||||||||||||
Hallgren | 25% | 500,000 | 750,000 | Notice to invoke jurisdiction of Florida Supreme Court pending; stayed pending resolution of Soffer v. R. J. Reynolds Tobacco Co. | |||||||||||||||||||||||||||||||||
Sikes | 51% | 3,520,000 | 2,000,000 | Notice to invoke jurisdiction of Florida Supreme Court pending | |||||||||||||||||||||||||||||||||
Thibault | 70% | 1,750,000 | 1,275,000 | First DCA affirmed the judgment, per curiam; notice to invoke the discretionary jurisdiction of Florida Supreme Court pending | |||||||||||||||||||||||||||||||||
Totals | $ | 14,000,000 | $ | 39,025,000 | |||||||||||||||||||||||||||||||||
-1 | Compensatory damages are adjusted to reflect the reduction that may be 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. | ||||||||||||||||||||||||||||||||||||
The following chart reflects verdicts in all other individual Engle Progeny cases, pending as of March 31, 2015, 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 condensed consolidated balance sheet (unaudited) as of March 31, 2015. This chart does not include the mistrials or verdicts returned in favor of RJR Tobacco or B&W, or both. | |||||||||||||||||||||||||||||||||||||
Plaintiff Case Name | RJR Tobacco | Compensatory | Punitive | Appeal Status | |||||||||||||||||||||||||||||||||
Allocation of | Damages | Damages | |||||||||||||||||||||||||||||||||||
Fault | (as adjusted)(1) | ||||||||||||||||||||||||||||||||||||
Putney | 30% | — | — | Reversed and remanded for further | |||||||||||||||||||||||||||||||||
proceedings; notice to invoke | |||||||||||||||||||||||||||||||||||||
jurisdiction of Florida Supreme | |||||||||||||||||||||||||||||||||||||
Court pending | |||||||||||||||||||||||||||||||||||||
Andy Allen | 24% | 2,475,000 | 7,756,000 | Reversed and remanded for new trial; new trial completed on November 26, 2014; final judgment has not been entered | |||||||||||||||||||||||||||||||||
Jewett | 20% | — | — | Reversed and remanded for new | |||||||||||||||||||||||||||||||||
trial; new trial has not been | |||||||||||||||||||||||||||||||||||||
scheduled | |||||||||||||||||||||||||||||||||||||
Soffer | 40% | 2,000,000 | — | Pending – Florida Supreme Court | |||||||||||||||||||||||||||||||||
Ciccone | 30% | 1,000,000 | — | Pending – Florida Supreme Court | |||||||||||||||||||||||||||||||||
Calloway | 27% | 16,100,000 | -2 | 17,250,000 | Pending – Fourth DCA | ||||||||||||||||||||||||||||||||
Hancock | 5% | 700 | — | Fourth DCA affirmed, per curiam | |||||||||||||||||||||||||||||||||
James Smith | 55% | 600,000 | -2 | 20,000 | Pending – Eleventh Circuit | ||||||||||||||||||||||||||||||||
Ballard | 55% | 5,000,000 | — | Motion for rehearing pending | |||||||||||||||||||||||||||||||||
Evers | 60% | 1,938,000 | — | Punitive damages of $12.4 million | |||||||||||||||||||||||||||||||||
set aside by trial court; 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 | -2 | 1,670,000 | Pending – Eleventh Circuit | ||||||||||||||||||||||||||||||||
Earl Graham | 20% | 550,000 | — | Eleventh Circuit held that federal law impliedly preempts claims for strict liability and negligence based on the defect and negligence findings from Engle | |||||||||||||||||||||||||||||||||
Skolnick | 30% | 767,000 | — | Pending – Fourth DCA | |||||||||||||||||||||||||||||||||
Grossman | 75% | 15,350,000 | -2 | 22,500,000 | Pending – Fourth DCA | ||||||||||||||||||||||||||||||||
Gafney | 33% | 1,914,000 | — | Pending – Fourth DCA | |||||||||||||||||||||||||||||||||
Cheeley | 50% | 1,500,000 | 2,000,000 | Pending – Fourth DCA | |||||||||||||||||||||||||||||||||
Goveia | 35% | 297,500 | 2,250,000 | Pending – Fifth DCA | |||||||||||||||||||||||||||||||||
Bowden | 30% | 1,500,000 | — | Pending – First DCA | |||||||||||||||||||||||||||||||||
Burkhart | 25% | 2,500,000 | -2 | 1,250,000 | Pending – Eleventh Circuit | ||||||||||||||||||||||||||||||||
Bakst | 75% | 4,504,000 | 14,000,000 | Pending – Fourth DCA | |||||||||||||||||||||||||||||||||
Robinson | 70.50% | 16,900,000 | 16,900,000 | Pending – First DCA | |||||||||||||||||||||||||||||||||
Harris | 15% | 647,500 | -2 | — | Post-trial motions are pending(3) | ||||||||||||||||||||||||||||||||
Wilcox | 70% | 4,900,000 | 8,500,000 | Pending – Third DCA | |||||||||||||||||||||||||||||||||
Irimi | 14.50% | — | — | Defendants' motion for new trial granted; pending - Fourth DCA | |||||||||||||||||||||||||||||||||
Hubbird | 50% | 3,000,000 | -2 | 25,000,000 | Pending – Third DCA | ||||||||||||||||||||||||||||||||
Lourie | 3% | 41,000 | — | Pending – Second DCA | |||||||||||||||||||||||||||||||||
Kerrivan | 31% | 6,046,660 | -2 | 9,600,000 | Post-trial motions are pending(3) | ||||||||||||||||||||||||||||||||
Taylor | 58% | 4,116,000 | -2 | 521,000 | Pending – First DCA | ||||||||||||||||||||||||||||||||
Schleider | 70% | 14,700,000 | -2 | — | Post-trial motions are pending(3) | ||||||||||||||||||||||||||||||||
Perotto | 20% | 818,000 | — | Post-trial motions are pending(3) | |||||||||||||||||||||||||||||||||
Ellen Gray | 50% | 3,000,000 | — | Post-trial motions are pending(3) | |||||||||||||||||||||||||||||||||
Sowers | 50% | 2,130,000 | — | Post-trial motions are pending(3) | |||||||||||||||||||||||||||||||||
Zamboni | 30% | 102,000 | — | Final judgment has not been entered | |||||||||||||||||||||||||||||||||
Pollari | 42.50% | 5,000,000 | -2 | 1,500,000 | Final judgment has not been entered; post-trial motions are pending(3) | ||||||||||||||||||||||||||||||||
Gore | 23% | 1,000,000 | — | Final judgment has not been entered | |||||||||||||||||||||||||||||||||
Totals | $ | 132,752,360 | $ | 160,717,000 | |||||||||||||||||||||||||||||||||
-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 | Should the pending post-trial motions be denied, RJR Tobacco will likely file a notice of appeal with the appropriate appellate court. | ||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Related to Settlements | Set forth below is the unadjusted tobacco industry settlement payment schedule for 2013 and beyond: | ||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2015 and thereafter | |||||||||||||||||||||||||||||||||||
First Four States’ Settlements:(1) | |||||||||||||||||||||||||||||||||||||
Mississippi Annual Payment | $ | 136 | $ | 136 | $ | 136 | |||||||||||||||||||||||||||||||
Florida Annual Payment | 440 | 440 | 440 | ||||||||||||||||||||||||||||||||||
Texas Annual Payment | 580 | 580 | 580 | ||||||||||||||||||||||||||||||||||
Minnesota Annual Payment | 204 | 204 | 204 | ||||||||||||||||||||||||||||||||||
Remaining Jurisdictions’ Settlement: | |||||||||||||||||||||||||||||||||||||
Annual Payments(1) | 8,004 | 8,004 | 8,004 | ||||||||||||||||||||||||||||||||||
Total | $ | 9,364 | $ | 9,364 | $ | 9,364 | |||||||||||||||||||||||||||||||
-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. | ||||||||||||||||||||||||||||||||||||
RAI’s operating subsidiaries expenses and payments under the State Settlement Agreements for 2013 and 2014, and the projected expenses and payments for 2015 and beyond are set forth below (2). | |||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2015 and thereafter | |||||||||||||||||||||||||||||||||||
Settlement expenses | $ | 1,819 | $ | 1,917 | — | ||||||||||||||||||||||||||||||||
Settlement cash payments | $ | 2,582 | $ | 1,985 | — | ||||||||||||||||||||||||||||||||
Projected settlement expenses | $>1,800 | ||||||||||||||||||||||||||||||||||||
Projected settlement cash payments | $>1,900 | ||||||||||||||||||||||||||||||||||||
-2 | Amounts beginning in 2013 reflect the impact of the Term Sheet described below under “— State Settlement Agreements – Enforcement and Validity; Adjustments – Partial Settlement of Certain NPM Adjustment Claims.” | ||||||||||||||||||||||||||||||||||||
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 2012, 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 | 2011 | 2012 | ||||||||||||||||||||||||||||
Year in which deduction for NPM Adjustment | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||||||||||||||
was taken | |||||||||||||||||||||||||||||||||||||
RJR Tobacco’s approximate share of disputed | $ | 562 | $ | 445 | $ | 419 | $ | 435 | $ | 468 | $ | 472 | $ | 470 | $ | 422 | $ | 429 | |||||||||||||||||||
NPM Adjustment (millions) | |||||||||||||||||||||||||||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Shareholders' Equity | |||||||||||||||||||||
Common Stock | Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||
Balance as of December 31, 2014 | $ | — | $ | 6,200 | $ | (1,314 | ) | $ | (364 | ) | $ | 4,522 | |||||||||
Net income | — | — | 389 | — | 389 | ||||||||||||||||
Retirement benefits, net of $4 million tax benefit | — | — | — | (6 | ) | (6 | ) | ||||||||||||||
Cumulative translation adjustment and other, | — | — | — | (27 | ) | (27 | ) | ||||||||||||||
net of $12 million tax benefit | |||||||||||||||||||||
Dividends - $0.67 per share | — | — | (359 | ) | — | (359 | ) | ||||||||||||||
Common stock repurchased | — | (32 | ) | — | — | (32 | ) | ||||||||||||||
Equity incentive award plan and stock-based | — | 18 | — | — | 18 | ||||||||||||||||
compensation | |||||||||||||||||||||
Excess tax benefit on stock-based compensation | — | 14 | — | — | 14 | ||||||||||||||||
plans | |||||||||||||||||||||
Balance as of March 31, 2015 | $ | — | $ | 6,200 | $ | (1,284 | ) | $ | (397 | ) | $ | 4,519 | |||||||||
Common Stock | Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||
Balance as of December 31, 2013 | $ | — | $ | 6,571 | $ | (1,348 | ) | $ | (56 | ) | $ | 5,167 | |||||||||
Net income | — | — | 363 | — | 363 | ||||||||||||||||
Retirement benefits, net of $4 million tax benefit | — | — | — | (6 | ) | (6 | ) | ||||||||||||||
Unrealized gain on long-term investments, net of | — | — | — | 1 | 1 | ||||||||||||||||
$1 million tax expense | |||||||||||||||||||||
Cumulative translation adjustment and other, | — | — | — | 1 | 1 | ||||||||||||||||
net of tax | |||||||||||||||||||||
Dividends - $0.67 per share | — | — | (362 | ) | — | (362 | ) | ||||||||||||||
Common stock repurchased | — | (173 | ) | — | — | (173 | ) | ||||||||||||||
Equity incentive award plan and stock-based | — | 12 | — | — | 12 | ||||||||||||||||
compensation | |||||||||||||||||||||
Excess tax benefit on stock-based compensation | — | 10 | — | — | 10 | ||||||||||||||||
plans | |||||||||||||||||||||
Balance as of March 31, 2014 | $ | — | $ | 6,420 | $ | (1,347 | ) | $ | (60 | ) | $ | 5,013 | |||||||||
Components of Accumulated Other Comprehensive Loss Net of Tax | The components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2015, were as follows: | ||||||||||||||||||||
Retirement Benefits | Unrealized Gain (Loss) on Long-Term Investments | Realized Loss on Hedging Instruments | Cumulative Translation Adjustment and Other | Total | |||||||||||||||||
Balance as of December 31, 2014 | $ | (294 | ) | $ | (14 | ) | $ | (12 | ) | $ | (44 | ) | $ | (364 | ) | ||||||
Other comprehensive income (loss) before | — | — | — | (27 | ) | (27 | ) | ||||||||||||||
reclassifications | |||||||||||||||||||||
Amounts reclassified from accumulated other | (6 | ) | — | — | — | (6 | ) | ||||||||||||||
comprehensive income (loss) | |||||||||||||||||||||
Net current-period other comprehensive income (loss) | (6 | ) | — | — | (27 | ) | (33 | ) | |||||||||||||
Balance as of March 31, 2015 | $ | (300 | ) | $ | (14 | ) | $ | (12 | ) | $ | (71 | ) | $ | (397 | ) | ||||||
The components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2014, were as follows: | |||||||||||||||||||||
Retirement Benefits | Unrealized Gain (Loss) on Long-Term Investments | Realized Loss on Hedging Instruments | Cumulative Translation Adjustment and Other | Total | |||||||||||||||||
Balance as of December 31, 2013 | $ | (17 | ) | $ | (16 | ) | $ | (13 | ) | $ | (10 | ) | $ | (56 | ) | ||||||
Other comprehensive income (loss) before | — | 1 | — | 1 | 2 | ||||||||||||||||
reclassifications | |||||||||||||||||||||
Amounts reclassified from accumulated other | (6 | ) | — | — | — | (6 | ) | ||||||||||||||
comprehensive income (loss) | |||||||||||||||||||||
Net current-period other comprehensive income (loss) | (6 | ) | 1 | — | 1 | (4 | ) | ||||||||||||||
Balance as of March 31, 2014 | $ | (23 | ) | $ | (15 | ) | $ | (13 | ) | $ | (9 | ) | $ | (60 | ) | ||||||
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 condensed consolidated statement of income (unaudited) for the three months ended March 31, were as follows: | ||||||||||||||||||||
Components | Amounts Reclassified | Affected Line Item | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Defined benefit pension and postretirement plans: | |||||||||||||||||||||
Amortization of prior service costs | $ | (5 | ) | $ | (5 | ) | Cost of products sold | ||||||||||||||
Amortization of prior service costs | (5 | ) | (5 | ) | Selling, general and administrative expenses | ||||||||||||||||
(10 | ) | (10 | ) | ||||||||||||||||||
Deferred taxes | 4 | 4 | Provision for income taxes | ||||||||||||||||||
Total reclassifications | $ | (6 | ) | $ | (6 | ) | Net income | ||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information Related to Sales, Income, and Assets | Segment Data: | ||||||||
For the Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net sales: | |||||||||
RJR Tobacco | $ | 1,608 | $ | 1,563 | |||||
American Snuff | 201 | 184 | |||||||
Santa Fe | 171 | 135 | |||||||
All Other | 77 | 53 | |||||||
Consolidated net sales | $ | 2,057 | $ | 1,935 | |||||
Operating income (loss): | |||||||||
RJR Tobacco(1) | $ | 588 | $ | 482 | |||||
American Snuff | 118 | 102 | |||||||
Santa Fe | 92 | 65 | |||||||
All Other | (61 | ) | (39 | ) | |||||
Corporate expense | (44 | ) | (20 | ) | |||||
Consolidated operating income | $ | 693 | $ | 590 | |||||
Reconciliation to income from continuing operations before | |||||||||
income taxes: | |||||||||
Consolidated operating income(1) | $ | 693 | $ | 590 | |||||
Interest and debt expense | 91 | 59 | |||||||
Interest income | (1 | ) | (1 | ) | |||||
Other (income) expense, net | (17 | ) | 1 | ||||||
Income from continuing operations before income taxes | $ | 620 | $ | 531 | |||||
(1) | The three months ended March 31, 2015, includes a $70 million reduction in cost of goods sold associated with the 2003 NPM Adjustment claim, see “— Cost of Products Sold” in note 1. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Summary of Balances and Transactions | A summary of balances and transactions with such BAT affiliates is as follows: | ||||||||
Balances: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accounts receivable, related party | $ | 56 | $ | 41 | |||||
Due to related party | 1 | 1 | |||||||
Deferred revenue, related party | 23 | 32 | |||||||
Significant transactions: | |||||||||
For the Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net sales | $ | 82 | $ | 86 | |||||
Purchases | 2 | 9 | |||||||
RAI common stock purchases from B&W | — | 41 | |||||||
Capsule royalty income | — | 3 | |||||||
RAI_Guaranteed_Unsecured_Notes1
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||
Condensed Consolidating Statements of Income | Condensed Consolidating Statements of Income | ||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Net sales | $ | — | $ | 1,999 | $ | 68 | $ | (92 | ) | $ | 1,975 | ||||||||||||
Net sales, related party | — | 82 | — | — | 82 | ||||||||||||||||||
Net sales | — | 2,081 | 68 | (92 | ) | 2,057 | |||||||||||||||||
Cost of products sold | — | 869 | 70 | (89 | ) | 850 | |||||||||||||||||
Selling, general and administrative expenses | 19 | 425 | 67 | — | 511 | ||||||||||||||||||
Amortization expense | — | 3 | — | — | 3 | ||||||||||||||||||
Operating income (loss) | (19 | ) | 784 | (69 | ) | (3 | ) | 693 | |||||||||||||||
Interest and debt expense | 91 | 17 | 2 | (19 | ) | 91 | |||||||||||||||||
Interest income | (19 | ) | (1 | ) | — | 19 | (1 | ) | |||||||||||||||
Other (income) expense, net | 1 | (10 | ) | (19 | ) | 11 | (17 | ) | |||||||||||||||
Income (loss) before income taxes | (92 | ) | 778 | (52 | ) | (14 | ) | 620 | |||||||||||||||
Provision for (benefit from) income taxes | (27 | ) | 281 | (23 | ) | — | 231 | ||||||||||||||||
Equity income (loss) from subsidiaries | 454 | 20 | — | (474 | ) | — | |||||||||||||||||
Net income (loss) | $ | 389 | $ | 517 | $ | (29 | ) | $ | (488 | ) | $ | 389 | |||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Net sales | $ | — | $ | 1,814 | $ | 43 | $ | (8 | ) | $ | 1,849 | ||||||||||||
Net sales, related party | — | 86 | — | — | 86 | ||||||||||||||||||
Net sales | — | 1,900 | 43 | (8 | ) | 1,935 | |||||||||||||||||
Cost of products sold | — | 905 | 33 | (8 | ) | 930 | |||||||||||||||||
Selling, general and administrative expenses | 3 | 357 | 53 | — | 413 | ||||||||||||||||||
Amortization expense | — | 2 | — | — | 2 | ||||||||||||||||||
Operating income (loss) | (3 | ) | 636 | (43 | ) | — | 590 | ||||||||||||||||
Interest and debt expense | 59 | 23 | 1 | (24 | ) | 59 | |||||||||||||||||
Interest income | (24 | ) | (1 | ) | — | 24 | (1 | ) | |||||||||||||||
Other (income) expense, net | 2 | (11 | ) | (1 | ) | 11 | 1 | ||||||||||||||||
Income (loss) from continuing operations before | (40 | ) | 625 | (43 | ) | (11 | ) | 531 | |||||||||||||||
income taxes | |||||||||||||||||||||||
Provision for (benefit from) income taxes | (14 | ) | 223 | (16 | ) | — | 193 | ||||||||||||||||
Equity income (loss) from subsidiaries | 389 | 6 | — | (395 | ) | — | |||||||||||||||||
Income (loss) from continuing operations | 363 | 408 | (27 | ) | (406 | ) | 338 | ||||||||||||||||
Income from discontinued operations | — | 25 | — | — | 25 | ||||||||||||||||||
Net income (loss) | $ | 363 | $ | 433 | $ | (27 | ) | $ | (406 | ) | $ | 363 | |||||||||||
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income | ||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Net income (loss) | $ | 389 | $ | 517 | $ | (29 | ) | $ | (488 | ) | $ | 389 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Retirement benefits | (6 | ) | (6 | ) | — | 6 | (6 | ) | |||||||||||||||
Cumulative translation adjustment and other | (27 | ) | (27 | ) | (40 | ) | 67 | (27 | ) | ||||||||||||||
Comprehensive income (loss) | $ | 356 | $ | 484 | $ | (69 | ) | $ | (415 | ) | $ | 356 | |||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Net income (loss) | $ | 363 | $ | 433 | $ | (27 | ) | $ | (406 | ) | $ | 363 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Retirement benefits | (6 | ) | (6 | ) | — | 6 | (6 | ) | |||||||||||||||
Unrealized gain on long-term investments | 1 | 1 | — | (1 | ) | 1 | |||||||||||||||||
Cumulative translation adjustment and other | 1 | 1 | — | (1 | ) | 1 | |||||||||||||||||
Comprehensive income (loss) | $ | 359 | $ | 429 | $ | (27 | ) | $ | (402 | ) | $ | 359 | |||||||||||
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 condensed consolidating statements of income (unaudited) for the three months ended March 31, 2015, were as follows: | ||||||||||||||||||||||
Components | Amounts Reclassified | Affected Line Item | |||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||||
Issuer | |||||||||||||||||||||||
Defined benefit pension and postretirement | |||||||||||||||||||||||
plans: | |||||||||||||||||||||||
Amortization of prior service costs | $ | — | $ | (5 | ) | $ | — | $ | — | $ | (5 | ) | Cost of products sold | ||||||||||
Amortization of prior service costs | — | (5 | ) | — | — | (5 | ) | Selling, general and administrative expenses | |||||||||||||||
— | (10 | ) | — | — | (10 | ) | |||||||||||||||||
Deferred taxes | — | 4 | — | — | 4 | Provision for income taxes | |||||||||||||||||
Defined benefit pension and postretirement plans | (6 | ) | — | — | 6 | — | Equity income (loss) from subsidiaries | ||||||||||||||||
Total reclassifications | $ | (6 | ) | $ | (6 | ) | $ | — | $ | 6 | $ | (6 | ) | Net income (loss) | |||||||||
Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the condensed consolidating statements of income (unaudited) for the three months ended March 31, 2014, were as follows: | |||||||||||||||||||||||
Components | Amounts Reclassified | Affected Line Item | |||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||||
Issuer | |||||||||||||||||||||||
Defined benefit pension and postretirement | |||||||||||||||||||||||
plans: | |||||||||||||||||||||||
Amortization of prior service costs | $ | — | $ | (5 | ) | $ | — | $ | — | $ | (5 | ) | Cost of products sold | ||||||||||
Amortization of prior service costs | — | (5 | ) | — | — | (5 | ) | Selling, general and administrative expenses | |||||||||||||||
— | (10 | ) | — | — | (10 | ) | |||||||||||||||||
Deferred taxes | — | 4 | — | — | 4 | Provision for income taxes | |||||||||||||||||
Defined benefit pension and postretirement plans | (6 | ) | — | — | 6 | — | Equity income (loss) from subsidiaries | ||||||||||||||||
Total reclassifications | $ | (6 | ) | $ | (6 | ) | $ | — | $ | 6 | $ | (6 | ) | Net income (loss) | |||||||||
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||||
Cash flows from (used in) operating activities | $ | 480 | $ | 1,091 | $ | 2 | $ | (493 | ) | $ | 1,080 | ||||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (28 | ) | (1 | ) | 3 | (26 | ) | |||||||||||||||
Return of intercompany investments | 185 | — | — | (185 | ) | — | |||||||||||||||||
Other, net | — | 12 | — | (11 | ) | 1 | |||||||||||||||||
Net cash flows from (used in) investing activities | 185 | (16 | ) | (1 | ) | (193 | ) | (25 | ) | ||||||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||||||
Dividends paid on common stock | (356 | ) | (479 | ) | — | 479 | (356 | ) | |||||||||||||||
Repurchase of common stock | (32 | ) | — | — | — | (32 | ) | ||||||||||||||||
Principal borrowings under revolving credit facility | 300 | — | — | — | 300 | ||||||||||||||||||
Repayments under revolving credit facility | (300 | ) | — | — | — | (300 | ) | ||||||||||||||||
Excess tax benefit on stock-based compensation plans | 14 | — | — | — | 14 | ||||||||||||||||||
Dividends paid on preferred stock | (11 | ) | — | — | 11 | — | |||||||||||||||||
Other, net | (11 | ) | (205 | ) | 20 | 196 | — | ||||||||||||||||
Net cash flows from (used in) financing activities | (396 | ) | (684 | ) | 20 | 686 | (374 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash | — | — | (32 | ) | — | (32 | ) | ||||||||||||||||
equivalents | |||||||||||||||||||||||
Net change in cash and cash equivalents | 269 | 391 | (11 | ) | — | 649 | |||||||||||||||||
Cash and cash equivalents at beginning of period | 102 | 469 | 395 | — | 966 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 371 | $ | 860 | $ | 384 | $ | — | $ | 1,615 | |||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Cash flows from (used in) operating activities | $ | 474 | $ | 893 | $ | (17 | ) | $ | (438 | ) | $ | 912 | |||||||||||
Cash flows from (used in) investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (20 | ) | (38 | ) | 3 | (55 | ) | |||||||||||||||
Contributions to intercompany investments | (32 | ) | — | — | 32 | — | |||||||||||||||||
Other, net | (7 | ) | 12 | (31 | ) | (4 | ) | (30 | ) | ||||||||||||||
Net cash flows from (used in) investing activities | (39 | ) | (8 | ) | (69 | ) | 31 | (85 | ) | ||||||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||||||
Dividends paid on common stock | (339 | ) | (424 | ) | — | 424 | (339 | ) | |||||||||||||||
Repurchase of common stock | (173 | ) | — | — | — | (173 | ) | ||||||||||||||||
Excess tax benefit on stock-based compensation | 10 | — | — | — | 10 | ||||||||||||||||||
Dividends paid on preferred stock | (11 | ) | — | — | 11 | — | |||||||||||||||||
Receipt of equity | — | — | 32 | (32 | ) | — | |||||||||||||||||
Other, net | (11 | ) | (100 | ) | 107 | 4 | — | ||||||||||||||||
Net cash flows from (used in) financing activities | (524 | ) | (524 | ) | 139 | 407 | (502 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash | — | — | 1 | — | 1 | ||||||||||||||||||
equivalents | |||||||||||||||||||||||
Net change in cash and cash equivalents | (89 | ) | 361 | 54 | — | 326 | |||||||||||||||||
Cash and cash equivalents at beginning of period | 444 | 696 | 360 | — | 1,500 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 355 | $ | 1,057 | $ | 414 | $ | — | $ | 1,826 | |||||||||||||
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets | ||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 371 | $ | 860 | $ | 384 | $ | — | $ | 1,615 | |||||||||||||
Accounts receivable | — | 71 | 47 | — | 118 | ||||||||||||||||||
Accounts receivable, related party | — | 56 | — | — | 56 | ||||||||||||||||||
Other receivables | 105 | 53 | 4 | (150 | ) | 12 | |||||||||||||||||
Inventories | — | 1,160 | 113 | (5 | ) | 1,268 | |||||||||||||||||
Deferred income taxes, net | 14 | 681 | 9 | — | 704 | ||||||||||||||||||
Other current assets | 21 | 191 | 4 | — | 216 | ||||||||||||||||||
Total current assets | 511 | 3,072 | 561 | (155 | ) | 3,989 | |||||||||||||||||
Property, plant and equipment, net | 3 | 1,169 | 30 | — | 1,202 | ||||||||||||||||||
Trademarks and other intangible assets, net | — | 2,414 | 4 | — | 2,418 | ||||||||||||||||||
Goodwill | — | 7,999 | 16 | — | 8,015 | ||||||||||||||||||
Long-term intercompany notes receivable | 1,593 | 180 | — | (1,773 | ) | — | |||||||||||||||||
Investment in subsidiaries | 8,305 | 431 | — | (8,736 | ) | — | |||||||||||||||||
Other assets and deferred charges | 102 | 174 | 22 | (72 | ) | 226 | |||||||||||||||||
Total assets | $ | 10,514 | $ | 15,439 | $ | 633 | $ | (10,736 | ) | $ | 15,850 | ||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||||
Accounts payable | $ | 2 | $ | 105 | $ | 19 | $ | — | $ | 126 | |||||||||||||
Tobacco settlement accruals | — | 2,216 | — | — | 2,216 | ||||||||||||||||||
Due to related party | — | 1 | — | — | 1 | ||||||||||||||||||
Deferred revenue, related party | — | 23 | — | — | 23 | ||||||||||||||||||
Current maturities of long-term debt | 450 | — | — | — | 450 | ||||||||||||||||||
Dividends payable on common stock | 356 | — | — | — | 356 | ||||||||||||||||||
Other current liabilities | 292 | 805 | 109 | (153 | ) | 1,053 | |||||||||||||||||
Total current liabilities | 1,100 | 3,150 | 128 | (153 | ) | 4,225 | |||||||||||||||||
Long-term intercompany notes payable | 180 | 1,280 | 313 | (1,773 | ) | — | |||||||||||||||||
Long-term debt (less current maturities) | 4,629 | — | — | — | 4,629 | ||||||||||||||||||
Deferred income taxes, net | — | 465 | — | (68 | ) | 397 | |||||||||||||||||
Long-term retirement benefits (less current portion) | 57 | 1,905 | 11 | — | 1,973 | ||||||||||||||||||
Other noncurrent liabilities | 29 | 78 | — | — | 107 | ||||||||||||||||||
Shareholders’ equity | 4,519 | 8,561 | 181 | (8,742 | ) | 4,519 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 10,514 | $ | 15,439 | $ | 633 | $ | (10,736 | ) | $ | 15,850 | ||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 102 | $ | 469 | $ | 395 | $ | — | $ | 966 | |||||||||||||
Accounts receivable | — | 74 | 42 | — | 116 | ||||||||||||||||||
Accounts receivable, related party | — | 41 | — | — | 41 | ||||||||||||||||||
Other receivables | 70 | 1,199 | 10 | (1,267 | ) | 12 | |||||||||||||||||
Inventories | — | 1,198 | 85 | (2 | ) | 1,281 | |||||||||||||||||
Deferred income taxes, net | 5 | 688 | 10 | — | 703 | ||||||||||||||||||
Other current assets | 50 | 151 | 1 | 2 | 204 | ||||||||||||||||||
Total current assets | 227 | 3,820 | 543 | (1,267 | ) | 3,323 | |||||||||||||||||
Property, plant and equipment, net | 3 | 1,170 | 30 | — | 1,203 | ||||||||||||||||||
Trademarks and other intangible assets, net | — | 2,417 | 4 | — | 2,421 | ||||||||||||||||||
Goodwill | — | 7,999 | 17 | — | 8,016 | ||||||||||||||||||
Long-term intercompany notes receivable | 1,593 | 190 | — | (1,783 | ) | — | |||||||||||||||||
Investment in subsidiaries | 9,598 | 450 | — | (10,048 | ) | — | |||||||||||||||||
Other assets and deferred charges | 101 | 180 | 23 | (71 | ) | 233 | |||||||||||||||||
Total assets | $ | 11,522 | $ | 16,226 | $ | 617 | $ | (13,169 | ) | $ | 15,196 | ||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||||
Accounts payable | $ | 1 | $ | 128 | $ | 13 | $ | — | $ | 142 | |||||||||||||
Tobacco settlement accruals | — | 1,819 | — | — | 1,819 | ||||||||||||||||||
Due to related party | — | 1 | — | — | 1 | ||||||||||||||||||
Deferred revenue, related party | — | 32 | — | — | 32 | ||||||||||||||||||
Current maturities of long-term debt | 450 | — | — | — | 450 | ||||||||||||||||||
Dividends payable on common stock | 356 | — | — | — | 356 | ||||||||||||||||||
Other current liabilities | 1,280 | 682 | 51 | (1,269 | ) | 744 | |||||||||||||||||
Total current liabilities | 2,087 | 2,662 | 64 | (1,269 | ) | 3,544 | |||||||||||||||||
Long-term intercompany notes payable | 190 | 1,300 | 293 | (1,783 | ) | — | |||||||||||||||||
Long-term debt (less current maturities) | 4,633 | — | — | — | 4,633 | ||||||||||||||||||
Deferred income taxes, net | — | 450 | — | (67 | ) | 383 | |||||||||||||||||
Long-term retirement benefits (less current portion) | 57 | 1,930 | 10 | — | 1,997 | ||||||||||||||||||
Other noncurrent liabilities | 33 | 83 | 1 | — | 117 | ||||||||||||||||||
Shareholders’ equity | 4,522 | 9,801 | 249 | (10,050 | ) | 4,522 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 11,522 | $ | 16,226 | $ | 617 | $ | (13,169 | ) | $ | 15,196 | ||||||||||||
Certain_Component_of_Cost_of_P
Certain Component of Cost of Products Sold (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accounting Policies [Abstract] | ||
State Settlement Agreements | $394 | $456 |
FDA user fees | 35 | 34 |
Federal tobacco quota buyout | $55 |
Business_and_Summary_of_Signif3
Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
NPM Adjustment credits | $170 | $1,100 | ||
Agreement period | 5 years | 5 years | ||
NPM performance adjustment | 66 | 63 | ||
Defined benefit plan corridor percentage | 10.00% | |||
Expected pension contributions, next fiscal year | 109 | |||
Pension contributions | 2 | |||
RJR Tobacco and Santa Fe [Member] | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
NPM Adjustment credits | $70 |
Components_of_Pension_Benefits
Components of Pension Benefits and Postretirement Benefits (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $6 | $5 |
Interest cost | 64 | 66 |
Expected return on plan assets | -88 | -90 |
Amortization of prior service cost (credit) | 1 | 1 |
Total benefit cost (credit) | -17 | -18 |
Postretirement Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 12 | 14 |
Expected return on plan assets | -3 | -3 |
Amortization of prior service cost (credit) | -11 | -11 |
Total benefit cost (credit) | ($1) | $1 |
Proposed_Transactions_Addition
Proposed Transactions - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | |
Jul. 15, 2014 | Sep. 23, 2014 | Mar. 31, 2015 | |
Summary Of Significant Transactions [Line Items] | |||
Asset sale | $7,100,000,000 | ||
BAT ownership | 42.00% | 42.00% | |
BAT investment | 4,700,000,000 | ||
Automatic Extension of Contract Terms | 6 months | ||
Bridge Facility | |||
Summary Of Significant Transactions [Line Items] | |||
Period of senior unsecured term loan | 364 days | 364 days | |
Credit facility under maximum borrowing capacity | 9,000,000,000 | ||
Lorillard, Inc. | |||
Summary Of Significant Transactions [Line Items] | |||
Acquisition | $27,400,000,000 | ||
Conversion ratio of Lorillard common stock to RAI common stock | 0.2909 | ||
Cash consideration per share | $50.50 |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Cash and cash equivalents: | ||
Cash equivalents | $1,521 | $883 |
Other assets and deferred charges: | ||
Auction rate securities | 78 | 79 |
Mortgage-backed security | 12 | 12 |
Marketable equity security | 2 | 2 |
Level 1 | ||
Cash and cash equivalents: | ||
Cash equivalents | 1,521 | 883 |
Other assets and deferred charges: | ||
Marketable equity security | 2 | 2 |
Level 3 | ||
Other assets and deferred charges: | ||
Auction rate securities | 78 | 79 |
Mortgage-backed security | $12 | $12 |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||
Sep. 30, 2011 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2012 | Dec. 31, 2009 | 1-May-12 | |
Derivative [Line Items] | |||||||
Fair value transfers between levels | $0 | $0 | |||||
Estimated fair value of RAI's and RJR's outstanding debt | 5,500,000,000 | 5,400,000,000 | |||||
Debt weighted average interest rate | 4.50% | 4.50% | |||||
Notional amount, interest rate contracts | 1,000,000,000 | ||||||
Proceeds from termination of interest rate swaps | 186,000,000 | ||||||
Debt instrument interest rate | 1.37% | ||||||
Total RAI debt | 2,550,000,000 | ||||||
Associated losses settled with cash payments | -23,000,000 | -23,000,000 | |||||
7.625% guaranteed, notes due 2016 | |||||||
Derivative [Line Items] | |||||||
Outstanding principle amount of debt redeemed | 775,000,000 | ||||||
Debt instrument interest rate | 7.63% | ||||||
Debt Covered by Interest Rate Swap Agreement | |||||||
Derivative [Line Items] | |||||||
Outstanding principle amount of debt redeemed | 450,000,000 | ||||||
Debt covered by fixed interest rate | 700,000,000 | 700,000,000 | |||||
Derivative fixed rate of interest | 3.80% | 3.80% | |||||
1.05% guaranteed, notes due 2015 | |||||||
Derivative [Line Items] | |||||||
Debt instrument maturity date | 30-Oct-15 | ||||||
Debt instrument interest rate | 1.05% | 1.05% | |||||
Total RAI debt | 450,000,000 | ||||||
3.25% guaranteed, notes due 2022 | |||||||
Derivative [Line Items] | |||||||
Debt instrument maturity date | 1-Nov-22 | ||||||
Debt instrument interest rate | 3.25% | 3.25% | |||||
Total RAI debt | 1,100,000,000 | ||||||
4.75% guaranteed, notes due 2042 | |||||||
Derivative [Line Items] | |||||||
Debt instrument maturity date | 1-Nov-42 | ||||||
Debt instrument interest rate | 4.75% | 4.75% | |||||
Total RAI debt | 1,000,000,000 | ||||||
Floating to Fixed | |||||||
Derivative [Line Items] | |||||||
Notional amount, interest rate contracts | 1,500,000,000 | ||||||
Floating to Fixed | Minimum | |||||||
Derivative [Line Items] | |||||||
Debt instrument maturity date | 1-Jun-12 | ||||||
Floating to Fixed | Maximum | |||||||
Derivative [Line Items] | |||||||
Debt instrument maturity date | 15-Jun-17 | ||||||
Fixed to Floating | |||||||
Derivative [Line Items] | |||||||
Notional amount, interest rate contracts | 1,500,000,000 |
Financial_Assets_Classified_as
Financial Assets Classified as Level 3 Investments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | $116 | $117 | ||
Gross Unrealized Loss | -26 | [1] | -26 | [1] |
Estimated Fair Value | 90 | 91 | ||
Auction Rate Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 99 | 99 | ||
Gross Unrealized Loss | -21 | [1] | -20 | [1] |
Estimated Fair Value | 78 | 79 | ||
Mortgage Backed Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost | 17 | 18 | ||
Gross Unrealized Loss | -5 | [1] | -6 | [1] |
Estimated Fair Value | $12 | $12 | ||
[1] | Unrealized losses, net of tax, are reported in accumulated other comprehensive loss in RAI’s condensed consolidated balance sheet (unaudited) as of March 31, 2015, and consolidated balance sheet as of December 31, 2014. |
Changes_in_Level_3_Investments
Changes in Level 3 Investments (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost, Beginning Balance | $117 | |
Cost, Ending Balance | 116 | 117 |
Estimated Fair Value, Beginning Balance | 91 | |
Estimated Fair Value, Ending Balance | 90 | 91 |
Auction Rate Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost, Beginning Balance | 99 | |
Cost, Ending Balance | 99 | |
Gross Unrealized Gain (Loss), Beginning Balance | -20 | |
Unrealized gain (loss) | -1 | |
Gross Unrealized Gain (Loss), Ending Balance | -21 | |
Estimated Fair Value, Beginning Balance | 79 | |
Unrealized gain (loss) | -1 | |
Estimated Fair Value, Ending Balance | 78 | |
Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost, Beginning Balance | 18 | |
Redemptions | -1 | |
Cost, Ending Balance | 17 | |
Gross Unrealized Gain (Loss), Beginning Balance | -6 | |
Unrealized gain (loss) | 1 | |
Gross Unrealized Gain (Loss), Ending Balance | -5 | |
Estimated Fair Value, Beginning Balance | 12 | |
Redemptions | -1 | |
Unrealized gain (loss) | 1 | |
Estimated Fair Value, Ending Balance | $12 |
Amortization_of_Derivative_Ins
Amortization of Derivative Instruments Impacted Income Statement (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Interest and debt expense | ($4) | ($4) |
Changes_in_Carrying_Amounts_of
Changes in Carrying Amounts of Goodwill by Segment (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||
Goodwill | $11,807 | |
Accumulated impairment charges | -3,791 | |
Foreign currency translation | -1 | |
Net goodwill balance | 8,015 | 8,016 |
RJR Tobacco | ||
Goodwill [Line Items] | ||
Goodwill | 9,065 | |
Accumulated impairment charges | -3,763 | |
Net goodwill balance | 5,302 | 5,302 |
American Snuff | ||
Goodwill [Line Items] | ||
Goodwill | 2,501 | |
Accumulated impairment charges | -28 | |
Net goodwill balance | 2,473 | 2,473 |
Santa Fe | ||
Goodwill [Line Items] | ||
Goodwill | 197 | |
Net goodwill balance | 197 | 197 |
All Other | ||
Goodwill [Line Items] | ||
Goodwill | 44 | |
Foreign currency translation | -1 | |
Net goodwill balance | $43 | $44 |
Carrying_Amount_and_Changes_of
Carrying Amount and Changes of Trademarks and Other Assets (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | $50 | ||
Amortization | -3 | -2 | |
Ending Balance | 47 | ||
Trademarks | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 19 | ||
Amortization | -1 | ||
Ending Balance | 18 | ||
Other | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 15 | ||
Ending Balance | 15 | 15 | |
RJR Tobacco | Trademarks | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 12 | ||
Amortization | -1 | ||
Ending Balance | 11 | ||
RJR Tobacco | Other | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 31 | ||
Amortization | -2 | ||
Ending Balance | 29 | ||
American Snuff | Trademarks | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 7 | ||
Ending Balance | 7 | 7 | |
Consolidated | Other | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 31 | ||
Amortization | -2 | ||
Ending Balance | $29 |
Carrying_Amount_and_Changes_of1
Carrying Amount and Changes of Trademarks and Other Indefinite Lived Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Trademarks | ||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Beginning Balance | $2,268 | $2,268 |
Ending Balance | 2,268 | 2,268 |
Other | ||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Beginning Balance | 103 | 103 |
Ending Balance | 103 | 103 |
RJR Tobacco | Trademarks | ||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Beginning Balance | 977 | 977 |
Ending Balance | 977 | 977 |
RJR Tobacco | Other | ||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Beginning Balance | 99 | 99 |
Ending Balance | 99 | 99 |
American Snuff | Trademarks | ||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Beginning Balance | 1,136 | 1,136 |
Ending Balance | 1,136 | 1,136 |
Santa Fe | Trademarks | ||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Beginning Balance | 155 | 155 |
Ending Balance | 155 | 155 |
All Other | Other | ||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Beginning Balance | 4 | 4 |
Ending Balance | $4 | $4 |
Details_of_FiniteLived_Intangi
Details of Finite-Lived Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | $280 | $280 |
Accumulated Amortization | -233 | -230 |
Net | 47 | 50 |
Contract manufacturing agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 151 | 151 |
Accumulated Amortization | -137 | -135 |
Net | 14 | 16 |
Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 114 | 114 |
Accumulated Amortization | -96 | -95 |
Net | 18 | 19 |
Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 15 | 15 |
Net | $15 | $15 |
Finite_Lived_Intangible_Assets
Finite Lived Intangible Assets Future Amortization Expense (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2015 | $7 | |
2016 | 9 | |
2017 | 9 | |
2018 | 8 | |
2019 | 2 | |
Thereafter | 12 | |
Net | $47 | $50 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Restructuring And Related Activities [Abstract] | |
Percentage of workforce declination | 10.00% |
Completion date of all cash payments related to restructuring | 31-Dec-16 |
Restructuring charge, amount utilized | $122 |
Other current liabilities | 23 |
Other noncurrent liabilities | $4 |
Components_of_Restructuring_Ch
Components of Restructuring Charge Accrued and Utilized (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Restructuring And Related Activities [Abstract] | ||
Beginning Balance | $40 | $57 |
Utilized | -13 | -17 |
Ending Balance | $27 | $40 |
Components_of_Calculation_of_I
Components of Calculation of Income Per Share (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Income from continuing operations | $389 | $338 |
Income from discontinued operations | 25 | |
Net income | $389 | $363 |
Basic weighted average shares, in thousands | 531,527 | 536,763 |
Effect of dilutive potential shares: | ||
Restricted stock units | 1,970 | 2,120 |
Diluted weighted average shares, in thousands | 533,497 | 538,883 |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Leaf tobacco | $1,084 | $1,125 |
Other raw materials | 95 | 90 |
Work in process | 63 | 72 |
Finished products | 203 | 171 |
Other | 29 | 27 |
Total | 1,474 | 1,485 |
LIFO allowance | -206 | -204 |
Inventory Net | $1,268 | $1,281 |
Provision_for_income_Taxes_fro
Provision for income Taxes from Continuing Operations (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes from continuing operations | $231 | $193 |
Effective tax rate | 37.30% | 36.30% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 35.00% | |
Income from discontinued operations, net of tax | $25 |
Borrowing_Arrangements_Additio
Borrowing Arrangements - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended |
Mar. 31, 2015 | Sep. 23, 2014 | Dec. 31, 2014 | Oct. 08, 2013 | |
Line Of Credit Facility [Line Items] | ||||
Current maturities of long-term debt | $450,000,000 | $450,000,000 | ||
Principal borrowings under revolving credit facility | 300,000,000 | |||
Repayments of Lines of Credit | 300,000,000 | |||
Debt instrument interest rate | 1.37% | |||
Borrowings outstanding under the Credit Agreement | 0 | |||
Letters of credit outstanding amount | 7,000,000 | |||
Bridge Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Credit facility under maximum borrowing capacity | 9,000,000,000 | |||
Period of senior unsecured term loan | 364 days | 364 days | ||
Credit facility interest rate description | Borrowings under the Bridge Facility bear interest at a rate per annum equal to, at RAI’s election: adjusted LIBOR for a one, two, three or six-month period; or the greatest of the (1) prime rate, (2) federal funds effective rate plus 50 basis points or (3) one-month adjusted LIBOR plus 100 basis points, plus, in each case, an applicable margin ranging from 50 to 275 basis points that depends upon RAI’s index debt rating established by rating services and the length of time that elapses from initial funding of the Bridge Facility until repayment thereof. | |||
Federal Funds Effective Swap Rate | Bridge Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
London Interbank Offered Rate (LIBOR) | Bridge Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Maximum | Bridge Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.75% | |||
Maximum | For the Reference Periods ending on the last day of the fiscal quarter in which the Merger closes and on the last day of the next two succeeding fiscal quarters | Bridge Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Ratio of debt to EBITDA | 4.50 to 1.00 | |||
Maximum | Thereafter | Bridge Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Ratio of debt to EBITDA | 4.25 to 1.00 | |||
Minimum | Bridge Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Minimum | For any Reference Period ending on the last day of a fiscal quarter | Bridge Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Ratio of EBITDA to interest expense | 3.00 to 1.00 | |||
New Credit Agreement | ||||
Line Of Credit Facility [Line Items] | ||||
Period of senior unsecured revolving credit facility | 5 years | |||
Credit facility under current borrowing capacity | 2,000,000,000 | |||
Credit facility under maximum borrowing capacity | 2,350,000,000 | |||
Credit facility maturity date | 18-Dec-19 | |||
New Credit Agreement | Maximum | As of the last day of any period of four consecutive fiscal quarters, referred to as a Reference Period, ending prior to the closing of the Merger | ||||
Line Of Credit Facility [Line Items] | ||||
Ratio of debt to EBITDA | 3.00 to 1.00 | |||
New Credit Agreement | Maximum | For the Reference Periods ending on the last day of the fiscal quarter in which the Merger closes and on the last day of the next two succeeding fiscal quarters | ||||
Line Of Credit Facility [Line Items] | ||||
Ratio of debt to EBITDA | 4.50 to 1.00 | |||
New Credit Agreement | Maximum | For the Reference Periods ending on the last day of the next three succeeding quarters | ||||
Line Of Credit Facility [Line Items] | ||||
Ratio of debt to EBITDA | 4.25 to 1.00 | |||
New Credit Agreement | Maximum | For the Reference Periods ending on the last day of the next three succeeding quarters | ||||
Line Of Credit Facility [Line Items] | ||||
Ratio of debt to EBITDA | 3.75 to 1.00 | |||
New Credit Agreement | Maximum | There After | ||||
Line Of Credit Facility [Line Items] | ||||
Ratio of debt to EBITDA | 3.50 to 1.00 | |||
New Credit Agreement | Minimum | For any Reference Period ending on the last day of a fiscal quarter | ||||
Line Of Credit Facility [Line Items] | ||||
Ratio of EBITDA to interest expense | 4.00 to 1.00 | |||
Credit Agreement | ||||
Line Of Credit Facility [Line Items] | ||||
Period of senior unsecured revolving credit facility | 4 years | |||
Credit facility under current borrowing capacity | 1,350,000,000 | |||
Sublimit on the aggregate amount of letters of credit | 300,000,000 | |||
Credit facility maturity date | 8-Oct-17 | |||
Line of credit facility, maximum borrowing capacity for acquisition | $500,000,000 | $500,000,000 | ||
Interest Rate | 2.00% | |||
Credit Agreement | Federal Funds Effective Swap Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Credit Agreement | Eurodollar | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Credit Agreement | Maximum | ||||
Line Of Credit Facility [Line Items] | ||||
Pay rate of commitment fee per annum | 0.28% | |||
Credit Agreement | Minimum | ||||
Line Of Credit Facility [Line Items] | ||||
Pay rate of commitment fee per annum | 0.10% |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Mar. 31, 2015 | Feb. 09, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Nov. 12, 2014 | Nov. 15, 2010 | ||
LegalMatter | LegalMatter | LegalMatter | |||||
Loss Contingencies [Line Items] | |||||||
Amount accrued | $139,700,000 | $139,700,000 | |||||
Accrued estimated cost for corrective communication | 10,000,000 | ||||||
Payment for litigation settlement into escrow account | 42,500,000 | ||||||
Payment for litigation settlement | 214,710,000 | ||||||
Payment for attorney fees and interest | 51,350,000 | ||||||
Growers trust fund | 5,200,000,000 | 5,200,000,000 | |||||
Number of cases filed | 11 | ||||||
Number of cases pending | 180 | 180 | 167 | ||||
Number of cases pending in federal court | 13 | 13 | |||||
Number of cases pending in state court | 149 | 149 | |||||
Rjr Tobacco Indemnitee or Both | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases pending | 100 | 100 | |||||
Mississippi | |||||||
Loss Contingencies [Line Items] | |||||||
Amount accrued for compensatory damages | 19,000,000 | 19,000,000 | |||||
UNITED STATES | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases pending | 163 | 163 | |||||
Canada | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases pending | 17 | 17 | |||||
Maryland | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases pending in state court | 33 | 33 | |||||
Florida | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases pending in state court | 27 | 27 | |||||
Missouri | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases pending in state court | 18 | 18 | |||||
New York | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases pending in state court | 13 | 13 | |||||
Hiott, Starr-Blundell, and Clayton, and Ward, Hallgren, Cohen, Sikes, Thibault, and Buonomo | |||||||
Loss Contingencies [Line Items] | |||||||
Amount accrued for compensatory damages | 53,000,000 | 53,000,000 | |||||
Amount accrued for attorneys' fees and statutory interest | 15,200,000 | 15,200,000 | |||||
Hiott, Starr-Blundell, and Clayton, and Ward, Hallgren, Cohen, Sikes, Thibault, and Buonomo | RJR Tobacco | |||||||
Loss Contingencies [Line Items] | |||||||
Amount accrued for compensatory damages | 53,000,000 | 53,000,000 | |||||
Amount accrued for attorneys' fees and statutory interest | 15,200,000 | 15,200,000 | |||||
Engle | |||||||
Loss Contingencies [Line Items] | |||||||
Payment for litigation settlement into escrow account | 1,300,000 | ||||||
Payment for litigation settlement | 1,270,000 | ||||||
Payment for compensatory damages | 1,260,000 | ||||||
Payment for attorney fees and interest | 11,000 | ||||||
Punitive damages | 450,000 | 72,000,000 | |||||
Engle | |||||||
Loss Contingencies [Line Items] | |||||||
Payment for litigation settlement into escrow account | 42,500,000 | ||||||
Number of cases pending in federal court | 4,000 | ||||||
Number of cases after initial docket in federal court | 400 | ||||||
Number of cases pending | 3,638 | 3,638 | |||||
Number of plaintiffs | 4,681 | [1] | |||||
Number of cases pending in federal court | 481 | 481 | |||||
Number of plaintiffs | 4,681 | 4,681 | |||||
Number of cases pending in state court | 3,157 | 3,157 | |||||
Punitive damages | 145,000,000,000 | 145,000,000,000 | |||||
Number of cases filed but not served | 15 | 15 | |||||
Number of cases tried | 109 | 109 | |||||
Litigation settlement, amount | 100,000,000 | ||||||
Engle | Lorillard, Inc. | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation settlement, amount | 15,000,000 | ||||||
Engle | RJR Tobacco | |||||||
Loss Contingencies [Line Items] | |||||||
Payment for litigation settlement into escrow account | 42,500,000 | ||||||
Percentage of pending cases settled after initial docket | 90.00% | ||||||
Number of cases tried | 12 | 12 | |||||
Litigation settlement, amount | 42,500,000 | ||||||
Engle | Rjr Tobacco Indemnitee or Both | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases filed | 1 | ||||||
Engle | Philip Morris | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation settlement, amount | 42,500,000 | ||||||
West Virginia Ipic | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases pending | 564 | 564 | |||||
Number of plaintiffs | 30 | ||||||
Number of plaintiffs | 564 | 564 | |||||
Broin II | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases pending | 2,555 | 2,555 | |||||
Tribal Court | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases pending | 1 | 1 | |||||
Liggett | |||||||
Loss Contingencies [Line Items] | |||||||
Punitive damages | $145,000,000,000 | $145,000,000,000 | |||||
Federal | |||||||
Loss Contingencies [Line Items] | |||||||
Number of cases pending in federal court | 26 | 26 | |||||
Number of federal cases settled | 400 | ||||||
Number of federal cases tried | 16 | ||||||
Number of cases filed by different lawyers | 2 | ||||||
[1] | The Engle Progeny cases have been separated from the Individual Smoking and Health cases for reporting purposes. The number of cases does not reflect the impact of the proposed federal Engle Progeny settlement. |
Categories_of_US_TobaccoRelate
Categories of U.S. Tobacco-Related Cases Pending against RJR Tobacco (Detail) | 3 Months Ended | |
Mar. 31, 2015 | ||
LegalMatter | ||
Individual Smoking And Health Cases | ||
Contingent Liabilities [Line Items] | ||
RJR Tobacco’s U.S. Case Numbers as of March 31, 2015 | 100 | |
Change in Number of Cases Since December 31, 2014 Increase/(Decrease) | 4 | |
West Virginia Ipic | ||
Contingent Liabilities [Line Items] | ||
RJR Tobacco’s U.S. Case Numbers as of March 31, 2015 | 1 | [1] |
Number of plaintiffs | 30 | |
December 31, 2014 Increase/(Decrease) | No change | [1] |
Engle | ||
Contingent Liabilities [Line Items] | ||
RJR Tobacco’s U.S. Case Numbers as of March 31, 2015 | 3,638 | [2] |
Number of plaintiffs | 4,681 | [2] |
Increase/ (Decrease) in Number of Plaintiffs | -247 | [2] |
December 31, 2014 Increase/(Decrease) | -278 | [2] |
Broin II | ||
Contingent Liabilities [Line Items] | ||
RJR Tobacco’s U.S. Case Numbers as of March 31, 2015 | 2,555 | |
December 31, 2014 Increase/(Decrease) | -3 | |
Class Action | ||
Contingent Liabilities [Line Items] | ||
RJR Tobacco’s U.S. Case Numbers as of March 31, 2015 | 20 | |
December 31, 2014 Increase/(Decrease) | No change | |
Healthcare Cost Recovery Cases | ||
Contingent Liabilities [Line Items] | ||
RJR Tobacco’s U.S. Case Numbers as of March 31, 2015 | 2 | |
December 31, 2014 Increase/(Decrease) | No change | |
State Settlement Agreements Enforcement And Validity Adjustments | ||
Contingent Liabilities [Line Items] | ||
RJR Tobacco’s U.S. Case Numbers as of March 31, 2015 | 28 | |
December 31, 2014 Increase/(Decrease) | -1 | |
Antitrust | ||
Contingent Liabilities [Line Items] | ||
RJR Tobacco’s U.S. Case Numbers as of March 31, 2015 | 1 | |
December 31, 2014 Increase/(Decrease) | No change | |
Other Litigation And Developments | ||
Contingent Liabilities [Line Items] | ||
RJR Tobacco’s U.S. Case Numbers as of March 31, 2015 | 11 | |
December 31, 2014 Increase/(Decrease) | -1 | |
[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 does not reflect the impact of the proposed federal Engle Progeny settlement. |
Categories_of_US_TobaccoRelate1
Categories of U.S. Tobacco-Related Cases Pending against RJR Tobacco (Parenthetical) (Detail) | Mar. 31, 2015 | Mar. 31, 2014 |
LegalMatter | LegalMatter | |
Contingent Liabilities [Line Items] | ||
Number of cases pending | 180 | 167 |
West Virginia Ipic | ||
Contingent Liabilities [Line Items] | ||
Number of cases pending | 564 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information 1 (Detail) (USD $) | 1 Months Ended | 3 Months Ended | |
Nov. 30, 1998 | Mar. 31, 2015 | ||
LegalMatter | LegalMatter | ||
State | |||
Loss Contingencies [Line Items] | |||
Payment for litigation settlement | $214,710,000 | ||
Payment for attorney fees and interest | 51,350,000 | ||
Payment for compensatory and punitive damages | 163,360,000 | ||
Compensatory damages | 132,752,360 | [1] | |
Punitive Damages - Adjusted | 160,717,000 | ||
Engle outstanding judgments | 293,469,360 | ||
Number of states involved in MSA | 46 | ||
Previously settled cases | 4 | ||
Cases scheduled for trial | 6 | ||
Engle | |||
Loss Contingencies [Line Items] | |||
Number of cases became final | 29 | ||
Cases scheduled for trial | 58 | ||
Number of cases tried | 109 | ||
Engle | |||
Loss Contingencies [Line Items] | |||
Payment for litigation settlement | 1,270,000 | ||
Payment for attorney fees and interest | 11,000 | ||
Payment for compensatory damages | 1,260,000 | ||
Hiott, Starr-Blundell, and Clayton, and Ward, Hallgren, Cohen, Sikes, Thibault, and Buonomo | |||
Loss Contingencies [Line Items] | |||
Amount accrued for compensatory damages | 53,000,000 | ||
Amount accrued for attorneys' fees and statutory interest | 15,200,000 | ||
Nonsmoking And Health Cases | |||
Loss Contingencies [Line Items] | |||
Cases scheduled for trial | 1 | ||
Individual Smoking And Health Cases | |||
Loss Contingencies [Line Items] | |||
Cases scheduled for trial | 4 | ||
Class Action | |||
Loss Contingencies [Line Items] | |||
Cases scheduled for trial | 1 | ||
Smoking And Health Engle Progeny And Healthcare Cost Recovery Cases | |||
Loss Contingencies [Line Items] | |||
Number of cases tried | 112 | ||
Number of mistrials declared | 6 | ||
Verdicts returned for tobacco companies | 54 | ||
Number of verdicts returned for tobacco companies by mistrial | 15 | ||
Smoking And Health Engle Progeny And Healthcare Cost Recovery Cases | Florida | |||
Loss Contingencies [Line Items] | |||
Number of cases tried | 53 | ||
Verdicts returned for plaintiff | 52 | ||
Number of cases dismissed | 3 | ||
Number of cases under retrial on amount of damages | 1 | ||
Smoking And Health Engle Progeny And Healthcare Cost Recovery Cases | West Virginia | |||
Loss Contingencies [Line Items] | |||
Number of cases tried | 1 | ||
Smoking And Health Engle Progeny And Healthcare Cost Recovery Cases | New York | |||
Loss Contingencies [Line Items] | |||
Verdicts returned for plaintiff | 1 | ||
RJR Tobacco | Engle | |||
Loss Contingencies [Line Items] | |||
Number of cases tried | 12 | ||
RJR Tobacco | Hiott, Starr-Blundell, and Clayton, and Ward, Hallgren, Cohen, Sikes, Thibault, and Buonomo | |||
Loss Contingencies [Line Items] | |||
Accrual | 68,200,000 | ||
Amount accrued for compensatory damages | 53,000,000 | ||
Amount accrued for attorneys' fees and statutory interest | $15,200,000 | ||
[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. |
Verdicts_in_Individual_Engle_P
Verdicts in Individual Engle Progeny Cases have been Tried and Remain Pending (Detail) (USD $) | Mar. 31, 2015 | Jul. 31, 2010 | Mar. 24, 2010 | Aug. 31, 2010 | 20-May-10 | Mar. 31, 2012 | Jan. 24, 2012 | Apr. 01, 2013 | 31-May-13 | Jul. 31, 2013 | Apr. 30, 2010 | Feb. 18, 2014 | Mar. 31, 2014 | Jun. 23, 2014 | Jul. 17, 2014 | Sep. 30, 2014 | Aug. 28, 2014 | Aug. 29, 2014 | Oct. 10, 2014 | Oct. 22, 2014 | Nov. 07, 2014 | Nov. 18, 2014 | Nov. 21, 2014 | Jan. 29, 2015 | Feb. 12, 2015 | Feb. 11, 2015 | Feb. 26, 2015 | Mar. 25, 2015 | Mar. 26, 2015 | |
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | $132,752,360 | [1] | ||||||||||||||||||||||||||||
Punitive Damages | 160,717,000 | |||||||||||||||||||||||||||||
Verdicts In Individual Cases Pending | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 14,000,000 | [2] | ||||||||||||||||||||||||||||
Punitive Damages | 39,025,000 | |||||||||||||||||||||||||||||
Hiott | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 40.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 730,000 | [2] | ||||||||||||||||||||||||||||
Starr Blundell | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 10.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 50,000 | [2] | ||||||||||||||||||||||||||||
Clayton | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 10.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 60,000 | [2] | ||||||||||||||||||||||||||||
Cohen | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 3,330,000 | [2] | 3,330,000 | 10,000,000 | ||||||||||||||||||||||||||
Punitive Damages | 10,000,000 | 10,000,000 | ||||||||||||||||||||||||||||
Cohen | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 33.30% | |||||||||||||||||||||||||||||
Buonomo | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 4,060,000 | [2] | 4,060,000 | |||||||||||||||||||||||||||
Punitive Damages | 25,000,000 | 15,700,000 | ||||||||||||||||||||||||||||
Buonomo | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 77.50% | |||||||||||||||||||||||||||||
Hallgren | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 500,000 | [2] | 1,000,000 | |||||||||||||||||||||||||||
Punitive Damages | 750,000 | 750,000 | ||||||||||||||||||||||||||||
Hallgren | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 25.00% | |||||||||||||||||||||||||||||
Sikes | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 3,520,000 | [2] | ||||||||||||||||||||||||||||
Punitive Damages | 2,000,000 | |||||||||||||||||||||||||||||
Sikes | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 51.00% | |||||||||||||||||||||||||||||
Thibault | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 1,750,000 | [2] | ||||||||||||||||||||||||||||
Punitive Damages | 1,275,000 | |||||||||||||||||||||||||||||
Thibault | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 70.00% | |||||||||||||||||||||||||||||
Putney | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 4,500,000 | |||||||||||||||||||||||||||||
Punitive Damages | 2,500,000 | |||||||||||||||||||||||||||||
Putney | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||||||||||||||||||||||
Allen | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 2,475,000 | [1] | ||||||||||||||||||||||||||||
Punitive Damages | 7,756,000 | |||||||||||||||||||||||||||||
Allen | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 24.00% | |||||||||||||||||||||||||||||
Jewett | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 20.00% | |||||||||||||||||||||||||||||
Soffer | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 2,000,000 | [1] | ||||||||||||||||||||||||||||
Soffer | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 40.00% | |||||||||||||||||||||||||||||
Ciccone | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 1,000,000 | [1] | ||||||||||||||||||||||||||||
Ciccone | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||||||||||||||||||||||
Calloway | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 16,100,000 | [1],[3] | ||||||||||||||||||||||||||||
Punitive Damages | 17,250,000 | |||||||||||||||||||||||||||||
Calloway | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 27.00% | |||||||||||||||||||||||||||||
Hancock | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 700 | [1] | ||||||||||||||||||||||||||||
Hancock | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 5.00% | |||||||||||||||||||||||||||||
James Smith | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 600,000 | [1],[3] | ||||||||||||||||||||||||||||
Punitive Damages | 20,000 | |||||||||||||||||||||||||||||
James Smith | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 55.00% | |||||||||||||||||||||||||||||
Ballard | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 5,000,000 | [1] | ||||||||||||||||||||||||||||
Ballard | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 55.00% | |||||||||||||||||||||||||||||
Evers | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 1,938,000 | [1] | ||||||||||||||||||||||||||||
Evers | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 60.00% | |||||||||||||||||||||||||||||
Schoeff | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 7,875,000 | [1] | ||||||||||||||||||||||||||||
Punitive Damages | 30,000,000 | |||||||||||||||||||||||||||||
Schoeff | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 75.00% | |||||||||||||||||||||||||||||
Marotta | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 3,480,000 | [1] | ||||||||||||||||||||||||||||
Marotta | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 58.00% | |||||||||||||||||||||||||||||
Searcy | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 1,000,000 | [1],[3] | 6,000,000 | |||||||||||||||||||||||||||
Punitive Damages | 1,670,000 | 10,000,000 | ||||||||||||||||||||||||||||
Searcy | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||||||||||||||||||||||
Earl Graham | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 550,000 | [1] | 550,000 | |||||||||||||||||||||||||||
Earl Graham | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 20.00% | |||||||||||||||||||||||||||||
Skolnick | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 767,000 | [1] | 767,000 | |||||||||||||||||||||||||||
Skolnick | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||||||||||||||||||||||
Grossman | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 15,350,000 | [1],[3] | 483,682 | |||||||||||||||||||||||||||
Punitive Damages | 22,500,000 | |||||||||||||||||||||||||||||
Grossman | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 75.00% | |||||||||||||||||||||||||||||
Gafney | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 1,914,000 | [1] | ||||||||||||||||||||||||||||
Gafney | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 33.00% | |||||||||||||||||||||||||||||
Cheeley | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 1,500,000 | [1] | ||||||||||||||||||||||||||||
Punitive Damages | 2,000,000 | |||||||||||||||||||||||||||||
Cheeley | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | |||||||||||||||||||||||||||||
Goveia | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 35.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 297,500 | [1] | ||||||||||||||||||||||||||||
Punitive Damages | 2,250,000 | |||||||||||||||||||||||||||||
Goveia | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 35.00% | |||||||||||||||||||||||||||||
Bowden | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 1,500,000 | [1] | 1,500,000 | |||||||||||||||||||||||||||
Bowden | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||||||||||||||||||||||
Burkhart | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 2,500,000 | [1],[3] | ||||||||||||||||||||||||||||
Punitive Damages | 1,250,000 | |||||||||||||||||||||||||||||
Burkhart | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 25.00% | |||||||||||||||||||||||||||||
Bakst | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 4,504,000 | [1] | 4,500,000 | |||||||||||||||||||||||||||
Punitive Damages | 14,000,000 | |||||||||||||||||||||||||||||
Bakst | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 75.00% | |||||||||||||||||||||||||||||
Robinson | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 70.50% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 16,900,000 | [1] | ||||||||||||||||||||||||||||
Punitive Damages | 16,900,000 | |||||||||||||||||||||||||||||
Robinson | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 70.50% | |||||||||||||||||||||||||||||
Harris | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 647,500 | [1],[3],[4] | ||||||||||||||||||||||||||||
Harris | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 15.00% | [4] | ||||||||||||||||||||||||||||
Wilcox | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 70.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 4,900,000 | [1] | 4,900,000 | |||||||||||||||||||||||||||
Punitive Damages | 8,500,000 | |||||||||||||||||||||||||||||
Wilcox | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 70.00% | |||||||||||||||||||||||||||||
Irimi | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 14.50% | |||||||||||||||||||||||||||||
Irimi | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 14.50% | |||||||||||||||||||||||||||||
Hubbird | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 3,000,000 | [1],[3] | ||||||||||||||||||||||||||||
Punitive Damages | 25,000,000 | |||||||||||||||||||||||||||||
Hubbird | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | |||||||||||||||||||||||||||||
Lourie | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 3.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 41,000 | [1] | ||||||||||||||||||||||||||||
Lourie | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 3.00% | |||||||||||||||||||||||||||||
Kerrivan | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 31.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 6,046,660 | [1],[3],[4] | ||||||||||||||||||||||||||||
Punitive Damages | 9,600,000 | [4] | ||||||||||||||||||||||||||||
Kerrivan | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 31.00% | [4] | ||||||||||||||||||||||||||||
Taylor | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 58.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 4,116,000 | [1],[3] | ||||||||||||||||||||||||||||
Punitive Damages | 521,000 | |||||||||||||||||||||||||||||
Taylor | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 58.00% | |||||||||||||||||||||||||||||
Schleider | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 70.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 14,700,000 | [1],[3],[4] | ||||||||||||||||||||||||||||
Schleider | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 70.00% | [4] | ||||||||||||||||||||||||||||
Perrotto | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 20.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 818,000 | [1],[4] | ||||||||||||||||||||||||||||
Perrotto | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 20.00% | [4] | ||||||||||||||||||||||||||||
Ellen Gray | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 3,000,000 | [1],[4] | ||||||||||||||||||||||||||||
Ellen Gray | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | [4] | ||||||||||||||||||||||||||||
Sowers | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | 50.00% | ||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 2,130,000 | [1],[4] | ||||||||||||||||||||||||||||
Sowers | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | [4] | ||||||||||||||||||||||||||||
Zamboni | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 102,000 | [1] | ||||||||||||||||||||||||||||
Zamboni | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||||||||||||||||||||||
Pollari | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 42.50% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | 5,000,000 | [1],[3],[4] | ||||||||||||||||||||||||||||
Punitive Damages | 1,500,000 | [4] | ||||||||||||||||||||||||||||
Pollari | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 42.50% | [4] | ||||||||||||||||||||||||||||
Gore | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 23.00% | |||||||||||||||||||||||||||||
Compensatory Damages (as adjusted) | $1,000,000 | [1] | ||||||||||||||||||||||||||||
Gore | RJR Tobacco | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||||
RJR Tobacco Allocation of Fault | 23.00% | |||||||||||||||||||||||||||||
[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] | Compensatory damages are adjusted to reflect the reduction that may be 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. | |||||||||||||||||||||||||||||
[3] | The court did not apply comparative fault in the final judgment. | |||||||||||||||||||||||||||||
[4] | Should the pending post-trial motions be denied, RJR Tobacco will likely file a notice of appeal with the appropriate appellate court. |
Commitments_and_Contingencies_3
Commitments and Contingencies - Additional Information 2 (Detail) (USD $) | 3 Months Ended | 1 Months Ended | |||||||||||||
Mar. 31, 2015 | Mar. 31, 2015 | Apr. 30, 2013 | Aug. 27, 2014 | Mar. 31, 2014 | Feb. 28, 2015 | Jan. 29, 2015 | Feb. 12, 2015 | Feb. 11, 2015 | Feb. 19, 2015 | Feb. 26, 2015 | Mar. 25, 2015 | Mar. 26, 2015 | |||
LegalMatter | LegalMatter | LegalMatter | LegalMatter | ||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Compensatory damages | $0 | ||||||||||||||
Number of cases pending | 180 | 180 | 167 | ||||||||||||
Number of cases pending in federal court | 13 | 13 | |||||||||||||
Payment for litigation settlement into escrow account | 42,500,000 | ||||||||||||||
Rjr Tobacco Indemnitee or Both | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of cases pending | 100 | 100 | |||||||||||||
Engle | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of cases tried | 109 | 109 | |||||||||||||
Punitive damages | 145,000,000,000 | 145,000,000,000 | |||||||||||||
Number of cases pending | 3,638 | 3,638 | |||||||||||||
Number of plaintiffs | 4,681 | [1] | |||||||||||||
Punitive Damages 2 | 36,300,000,000 | 36,300,000,000 | |||||||||||||
Punitive Damages 3 | 17,600,000,000 | 17,600,000,000 | |||||||||||||
Number of plaintiffs | 4,681 | 4,681 | |||||||||||||
Litigation settlement, amount | 100,000,000 | ||||||||||||||
Number of cases pending in federal court | 481 | 481 | |||||||||||||
Payment for litigation settlement into escrow account | 42,500,000 | ||||||||||||||
Engle | Lorillard, Inc. | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Litigation settlement, amount | 15,000,000 | ||||||||||||||
Engle | RJR Tobacco | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of cases tried | 12 | 12 | |||||||||||||
Litigation settlement, amount | 42,500,000 | ||||||||||||||
Payment for litigation settlement into escrow account | 42,500,000 | ||||||||||||||
Engle | Philip Morris | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Litigation settlement, amount | 42,500,000 | ||||||||||||||
Ellen Gray | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Allocation of fault to plaintiff | 50.00% | ||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | ||||||||||||||
Compensatory damages | 6,000,000 | ||||||||||||||
Punitive damages | 0 | ||||||||||||||
Total damages | 3,000,000 | ||||||||||||||
Ellen Gray | RJR Tobacco | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | [2] | 50.00% | [2] | |||||||||||
Sowers | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Allocation of fault to plaintiff | 50.00% | 50.00% | |||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | 50.00% | |||||||||||||
Compensatory damages | 4,250,000 | 4,250,000 | |||||||||||||
Punitive damages | 0 | 0 | |||||||||||||
Total damages | 2,130,000 | ||||||||||||||
Sowers | RJR Tobacco | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | [2] | 50.00% | [2] | |||||||||||
Landau | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Allocation of fault to plaintiff | 75.00% | ||||||||||||||
Compensatory damages | 0 | ||||||||||||||
Punitive damages | 0 | ||||||||||||||
Landau | Other Defendant | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
RJR Tobacco Allocation of Fault | 25.00% | ||||||||||||||
Compensatory damages | 100,000 | ||||||||||||||
Zamboni | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Allocation of fault to plaintiff | 60.00% | ||||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | ||||||||||||||
Compensatory damages | 340,000 | ||||||||||||||
Punitive damages | 0 | ||||||||||||||
Zamboni | Other Defendant | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
RJR Tobacco Allocation of Fault | 10.00% | ||||||||||||||
Zamboni | RJR Tobacco | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | 30.00% | |||||||||||||
Pollari | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Allocation of fault to plaintiff | 15.00% | ||||||||||||||
RJR Tobacco Allocation of Fault | 42.50% | ||||||||||||||
Compensatory damages | 10,000,000 | ||||||||||||||
Punitive damages | 1,500,000 | ||||||||||||||
Pollari | Other Defendant | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
RJR Tobacco Allocation of Fault | 42.50% | ||||||||||||||
Pollari | RJR Tobacco | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
RJR Tobacco Allocation of Fault | 42.50% | [2] | 42.50% | [2] | |||||||||||
Gore | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Allocation of fault to plaintiff | 54.00% | ||||||||||||||
RJR Tobacco Allocation of Fault | 23.00% | ||||||||||||||
Compensatory damages | 2,000,000 | ||||||||||||||
Gore | Other Defendant | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
RJR Tobacco Allocation of Fault | 23.00% | ||||||||||||||
Gore | RJR Tobacco | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
RJR Tobacco Allocation of Fault | 23.00% | 23.00% | |||||||||||||
Individual Smoking And Health Cases | Rjr Tobacco Indemnitee or Both | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of cases pending | 98 | 98 | |||||||||||||
Environmental Tobacco Smoke | Rjr Tobacco Indemnitee or Both | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of cases pending | 2 | 2 | |||||||||||||
Izzarelli | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Allocation of fault to plaintiff | 42.00% | 42.00% | |||||||||||||
RJR Tobacco Allocation of Fault | 58.00% | 58.00% | |||||||||||||
Compensatory damages | 13,900,000 | 13,900,000 | |||||||||||||
Punitive damages | 3,970,000 | 3,970,000 | |||||||||||||
Total damages | 11,950,000 | 11,950,000 | |||||||||||||
Judgment interest awarded | 15,800,000 | 15,800,000 | |||||||||||||
Judgment Interest Per Day Awarded | 4,000 | 4,000 | |||||||||||||
Amended Final Judgment | $28,100,000 | $28,100,000 | |||||||||||||
West Virginia Ipic | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of cases pending | 564 | 564 | |||||||||||||
Number of plaintiff claims dismissed | 600 | ||||||||||||||
Lawsuits pending | 564 | ||||||||||||||
Number of plaintiffs | 564 | [3] | |||||||||||||
Claim on number of eligible plaintiffs by plaintiffs | 300 | ||||||||||||||
Number of plaintiffs | 564 | 564 | |||||||||||||
Various Smokeless Manufacturers | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of plaintiffs | 6 | ||||||||||||||
Federal | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of federal cases settled | 400 | ||||||||||||||
Number of federal cases tried | 16 | ||||||||||||||
Number of cases pending in federal court | 26 | 26 | |||||||||||||
Number of cases filed by different lawyers | 2 | ||||||||||||||
[1] | The Engle Progeny cases have been separated from the Individual Smoking and Health cases for reporting purposes. The number of cases does not reflect the impact of the proposed federal Engle Progeny settlement. | ||||||||||||||
[2] | Should the pending post-trial motions be denied, RJR Tobacco will likely file a notice of appeal with the appropriate appellate court. | ||||||||||||||
[3] | 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. |
Commitments_and_Contingencies_4
Commitments and Contingencies - Additional Information 3 (Detail) (USD $) | Mar. 31, 2015 | Aug. 27, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2010 | Feb. 25, 2010 | Jul. 31, 2010 | Mar. 24, 2010 | Mar. 10, 2010 | Dec. 31, 2010 | Aug. 31, 2010 | Apr. 26, 2010 | |
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages | $0 | ||||||||||||
Compensatory damages | 132,752,360 | [1] | |||||||||||
Punitive Damages - Adjusted | 160,717,000 | ||||||||||||
Grossman | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||||||||
Compensatory damages | 15,350,000 | 1,900,000 | |||||||||||
Punitive damages | 22,500,000 | 0 | |||||||||||
Allocation of fault to plaintiff | 25.00% | 70.00% | |||||||||||
Compensatory damages | 15,350,000 | [1],[2] | 483,682 | ||||||||||
Bond | 5,000,000 | 484,000 | |||||||||||
Punitive Damages - Adjusted | 22,500,000 | ||||||||||||
Grossman | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 75.00% | 25.00% | |||||||||||
Grossman | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 5.00% | ||||||||||||
Cohen | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||||||||
Punitive damages | 20,000,000 | ||||||||||||
Allocation of fault to plaintiff | 33.30% | ||||||||||||
Compensatory damages | 3,330,000 | [3] | 3,330,000 | 10,000,000 | |||||||||
Bond | 2,500,000 | ||||||||||||
Punitive Damages - Adjusted | 10,000,000 | 10,000,000 | |||||||||||
Cohen | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 33.30% | ||||||||||||
Cohen | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 33.30% | ||||||||||||
Putney | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages | 15,100,000 | ||||||||||||
Punitive damages | 2,500,000 | ||||||||||||
Allocation of fault to plaintiff | 35.00% | ||||||||||||
Compensatory damages | 4,500,000 | ||||||||||||
Bond | 2,400,000 | ||||||||||||
Punitive Damages - Adjusted | 2,500,000 | ||||||||||||
Putney | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | ||||||||||||
Putney | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 35.00% | ||||||||||||
Florida | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Florida Bond Cap Total | 200,000,000 | ||||||||||||
Florida Bond Cap Per Case | $5,000,000 | ||||||||||||
[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] | Compensatory damages are adjusted to reflect the reduction that may be 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. |
Commitments_and_Contingencies_5
Commitments and Contingencies - Additional Information 4 (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |||||||||||
Mar. 31, 2015 | Feb. 09, 2015 | Aug. 27, 2014 | Aug. 31, 2010 | 20-May-10 | Oct. 15, 2010 | Nov. 12, 2014 | Nov. 15, 2010 | Nov. 26, 2014 | Oct. 31, 2011 | 31-May-11 | Apr. 26, 2011 | ||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages | $132,752,360 | [1] | |||||||||||
Punitive Damages - Adjusted | 160,717,000 | ||||||||||||
Compensatory damages | 0 | ||||||||||||
Remittance for legal settlements | 42,500,000 | ||||||||||||
Buonomo | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Punitive damages | 25,000,000 | ||||||||||||
Compensatory damages | 4,060,000 | [2] | 4,060,000 | ||||||||||
Punitive Damages - Adjusted | 25,000,000 | 15,700,000 | |||||||||||
Allocation of fault to plaintiff | 22.50% | ||||||||||||
Compensatory damages | 5,200,000 | ||||||||||||
Bond | 5,000,000 | ||||||||||||
Buonomo | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 77.50% | ||||||||||||
Frazier | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||||||||
Engle | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Punitive damages | 450,000 | 72,000,000 | |||||||||||
Allocation of fault to plaintiff | 10.00% | ||||||||||||
Compensatory damages | 900,000 | 8,000,000 | |||||||||||
Bond | 5,000,000 | ||||||||||||
RJR Tobacco Allocation of Fault | 90.00% | ||||||||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||||||||
Total damages | 1,260,000 | ||||||||||||
Remitted compensatory damages | 4,000,000 | ||||||||||||
Remitted punitive damages | 25,000,000 | ||||||||||||
Remittance for legal settlements | 1,300,000 | ||||||||||||
Engle | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 90.00% | ||||||||||||
Andy Allen | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Punitive damages | 7,800,000 | 17,000,000 | |||||||||||
Punitive Damages - Adjusted | 8,100,000 | ||||||||||||
Allocation of fault to plaintiff | 70.00% | 40.00% | |||||||||||
Compensatory damages | 3,100,000 | 6,000,000 | |||||||||||
Bond | 3,750,000 | ||||||||||||
RJR Tobacco Allocation of Fault | 24.00% | ||||||||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||||||||
Total damages | $19,700,000 | ||||||||||||
Andy Allen | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 45.00% | ||||||||||||
Andy Allen | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 6.00% | 15.00% | |||||||||||
[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] | Compensatory damages are adjusted to reflect the reduction that may be 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. |
Commitments_and_Contingencies_6
Commitments and Contingencies - Additional Information 5 (Detail) (USD $) | Mar. 31, 2015 | Aug. 27, 2014 | 20-May-11 | Jun. 16, 2011 | Oct. 17, 2011 | Jul. 15, 2011 | 31-May-12 | Mar. 31, 2012 | Jan. 24, 2012 | |
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages | $0 | |||||||||
Compensatory damages | 132,752,360 | [1] | ||||||||
Punitive Damages - Adjusted | 160,717,000 | |||||||||
Jewett | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages | 0 | |||||||||
Allocation of fault to plaintiff | 70.00% | |||||||||
Compensatory damages | 1,100,000 | |||||||||
Bond | 218,600 | |||||||||
Judgment Sought Against Each Defendant | 15,000 | |||||||||
Jewett | RJR Tobacco 2012 | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
RJR Tobacco Allocation of Fault | 20.00% | |||||||||
Jewett | Other Defendant | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
RJR Tobacco Allocation of Fault | 10.00% | |||||||||
Soffer | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Allocation of fault to plaintiff | 60.00% | |||||||||
Compensatory damages | 5,000,000 | |||||||||
Bond | 2,000,000 | |||||||||
Judgment Sought Against Each Defendant | 15,000 | |||||||||
Total damages | 2,000,000 | |||||||||
Compensatory damages | 2,000,000 | [1] | ||||||||
Soffer | RJR Tobacco 2012 | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
RJR Tobacco Allocation of Fault | 40.00% | |||||||||
Ciccone | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages | 50,000 | |||||||||
Allocation of fault to plaintiff | 70.00% | |||||||||
Compensatory damages | 3,200,000 | |||||||||
Bond | 1,000,000 | |||||||||
Compensatory damages | 1,000,000 | [1] | ||||||||
Ciccone | RJR Tobacco 2012 | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||
Hallgren | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Punitive damages | 750,000 | |||||||||
Allocation of fault to plaintiff | 50.00% | |||||||||
Compensatory damages | 2,000,000 | |||||||||
Bond | 1,300,000 | |||||||||
Judgment Sought Against Each Defendant | 15,000 | |||||||||
Compensatory damages | 500,000 | [2] | 1,000,000 | |||||||
Punitive Damages - Adjusted | $750,000 | $750,000 | ||||||||
Hallgren | RJR Tobacco 2012 | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
RJR Tobacco Allocation of Fault | 25.00% | |||||||||
Hallgren | Other Defendant | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
RJR Tobacco Allocation of Fault | 25.00% | |||||||||
[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] | Compensatory damages are adjusted to reflect the reduction that may be 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. |
Commitments_and_Contingencies_7
Commitments and Contingencies - Additional Information 6 (Detail) (USD $) | Aug. 27, 2014 | Apr. 30, 2013 | Mar. 20, 2013 | Feb. 29, 2012 | Sep. 30, 2012 | 17-May-12 | Mar. 31, 2015 | Aug. 01, 2012 | Oct. 31, 2012 | Aug. 10, 2012 | Sep. 19, 2012 |
Loss Contingencies [Line Items] | |||||||||||
Compensatory damages | $0 | ||||||||||
Marotta | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Allocation of fault to plaintiff | 42.00% | ||||||||||
Compensatory damages | 3,480,000 | 6,000,000 | |||||||||
Punitive damages | 0 | ||||||||||
Judgment Sought Against Each Defendant | 75,000 | ||||||||||
Marotta | RJR Tobacco 2012 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
RJR Tobacco Allocation of Fault | 58.00% | ||||||||||
Calloway | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Allocation of fault to plaintiff | 20.50% | ||||||||||
Compensatory damages | 20,500,000 | ||||||||||
Punitive damages | 17,250,000 | ||||||||||
Bond | 1,500,000 | ||||||||||
Share of damages | 37,600,000 | ||||||||||
Calloway | RJR Tobacco 2012 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
RJR Tobacco Allocation of Fault | 27.00% | ||||||||||
Calloway | Other Defendant | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
RJR Tobacco Allocation of Fault | 52.50% | ||||||||||
Hiott | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Allocation of fault to plaintiff | 60.00% | ||||||||||
Compensatory damages | 1,830,000 | ||||||||||
Punitive damages | 0 | ||||||||||
RJR Tobacco Allocation of Fault | 40.00% | ||||||||||
Bond | 730,000 | ||||||||||
Total damages | 730,000 | ||||||||||
Hiott | RJR Tobacco 2012 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
RJR Tobacco Allocation of Fault | 40.00% | ||||||||||
Hancock | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Allocation of fault to plaintiff | 90.00% | ||||||||||
Compensatory damages | 110,200 | ||||||||||
Punitive damages | 0 | ||||||||||
Total damages | 705 | ||||||||||
Hancock | RJR Tobacco 2012 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
RJR Tobacco Allocation of Fault | 5.00% | ||||||||||
Hancock | Other Defendant | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
RJR Tobacco Allocation of Fault | 5.00% | ||||||||||
Baker | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Judgment Sought Against Each Defendant | $15,000 |
Commitments_and_Contingencies_8
Commitments and Contingencies - Additional Information 7 (Detail) (USD $) | Aug. 27, 2014 | Jul. 31, 2013 | Jun. 25, 2013 | Jun. 03, 2013 | Sep. 20, 2012 | Sep. 30, 2013 | Oct. 17, 2012 | Oct. 31, 2013 | Aug. 31, 2013 | Oct. 31, 2012 | Oct. 19, 2012 |
Loss Contingencies [Line Items] | |||||||||||
Compensatory damages | $0 | ||||||||||
Sikes | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Punitive damages | 2,000,000 | ||||||||||
Allocation of fault to plaintiff | 49.00% | ||||||||||
Compensatory damages | 4,100,000 | ||||||||||
Amended Final Judgment | 5,500,000 | 6,100,000 | |||||||||
Bond | 5,000,000 | ||||||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||||||
Sikes | RJR Tobacco 2012 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
RJR Tobacco Allocation of Fault | 51.00% | ||||||||||
James Smith | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Punitive damages | 20,000 | ||||||||||
Allocation of fault to plaintiff | 45.00% | ||||||||||
Compensatory damages | 600,000 | ||||||||||
Bond | 620,000 | ||||||||||
Total damages | 620,000 | ||||||||||
James Smith | RJR Tobacco 2012 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
RJR Tobacco Allocation of Fault | 55.00% | ||||||||||
Ballard | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Allocation of fault to plaintiff | 45.00% | ||||||||||
Compensatory damages | 8,550,000 | ||||||||||
Amended Final Judgment | 5,000,000 | ||||||||||
Bond | 5,000,000 | ||||||||||
Amount of final judgment | $4,700,000 | ||||||||||
Ballard | RJR Tobacco 2012 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
RJR Tobacco Allocation of Fault | 55.00% |
Commitments_and_Contingencies_9
Commitments and Contingencies - Additional Information 8 (Detail) (USD $) | Mar. 31, 2015 | Aug. 27, 2014 | 31-May-13 | Feb. 11, 2013 | Apr. 30, 2013 | Feb. 13, 2013 | Nov. 30, 2013 | Sep. 30, 2013 | Apr. 01, 2013 | |
Loss Contingencies [Line Items] | ||||||||||
Compensatory damages | $0 | |||||||||
Compensatory damages | 132,752,360 | [1] | ||||||||
Punitive Damages - Adjusted | 160,717,000 | |||||||||
Evers | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Allocation of fault to plaintiff | 31.00% | |||||||||
Compensatory damages | 3,230,000 | |||||||||
Punitive damages | 12,360,000 | |||||||||
Bond | 1,770,000 | |||||||||
Compensatory damages | 1,938,000 | [1] | ||||||||
Evers | RJR Tobacco 2012 | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
RJR Tobacco Allocation of Fault | 60.00% | |||||||||
Evers | Other Defendant | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
RJR Tobacco Allocation of Fault | 9.00% | |||||||||
Schoeff | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Allocation of fault to plaintiff | 25.00% | |||||||||
Compensatory damages | 10,500,000 | |||||||||
Punitive damages | 30,000,000 | 30,000,000 | ||||||||
Judgment Sought Against Each Defendant | 15,000 | |||||||||
Total damages | 7,880,000 | |||||||||
Compensatory damages | 7,875,000 | [1] | ||||||||
Punitive Damages - Adjusted | 30,000,000 | |||||||||
Schoeff | RJR Tobacco 2012 | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
RJR Tobacco Allocation of Fault | 75.00% | |||||||||
Searcy | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Allocation of fault to plaintiff | 40.00% | |||||||||
Compensatory damages | 6,000,000 | |||||||||
Punitive damages | 10,000,000 | |||||||||
Bond | 2,200,000 | |||||||||
Compensatory damages | 1,000,000 | [1],[2] | 6,000,000 | |||||||
Punitive Damages - Adjusted | 1,670,000 | 10,000,000 | ||||||||
Remitted compensatory damages | 1,000,000 | |||||||||
Remitted punitive damages | $1,670,000 | |||||||||
Searcy | RJR Tobacco 2012 | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||
Searcy | Other Defendant | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||
[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. |
Recovered_Sheet1
Commitments and Contingencies - Additional Information 9 (Detail) (USD $) | 3 Months Ended | 1 Months Ended | |||||||||||
Mar. 31, 2015 | 31-May-13 | Dec. 31, 2013 | Aug. 27, 2014 | 2-May-13 | Oct. 31, 2013 | 23-May-13 | Nov. 30, 2013 | Jun. 04, 2013 | Mar. 31, 2014 | Jul. 31, 2013 | Jun. 14, 2013 | ||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages | $132,752,360 | [1] | |||||||||||
Payment for compensatory and punitive damages | 163,360,000 | ||||||||||||
Compensatory damages | 0 | ||||||||||||
David Cohen | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 40.00% | ||||||||||||
Compensatory damages | 617,000 | ||||||||||||
Payment for compensatory and punitive damages | 15,000 | ||||||||||||
Compensatory damages | 2,060,000 | ||||||||||||
David Cohen | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | ||||||||||||
David Cohen | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | ||||||||||||
Earl Graham | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 70.00% | ||||||||||||
Compensatory damages | 550,000 | [1] | 550,000 | ||||||||||
Compensatory damages | 2,750,000 | ||||||||||||
Bond | 556,000 | ||||||||||||
Earl Graham | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 20.00% | ||||||||||||
Earl Graham | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 10.00% | ||||||||||||
Starr Blundell | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 80.00% | ||||||||||||
RJR Tobacco Allocation of Fault | 10.00% | ||||||||||||
Compensatory damages | 50,000 | [2] | |||||||||||
Compensatory damages | 500,000 | ||||||||||||
Bond | 50,000 | ||||||||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||||||||
Final Judgment | 50,000 | ||||||||||||
Starr Blundell | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 10.00% | ||||||||||||
Starr Blundell | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 10.00% | ||||||||||||
Skolnick | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 40.00% | ||||||||||||
Compensatory damages | 767,000 | [1] | 767,000 | ||||||||||
Compensatory damages | 2,560,000 | ||||||||||||
Bond | 767,000 | ||||||||||||
Judgment Sought Against Each Defendant | $15,000 | ||||||||||||
Skolnick | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | ||||||||||||
Skolnick | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | ||||||||||||
[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] | Compensatory damages are adjusted to reflect the reduction that may be 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. |
Recovered_Sheet2
Commitments and Contingencies - Additional Information 10 (Detail) (USD $) | 1 Months Ended | ||||||||
Nov. 30, 2013 | Aug. 27, 2014 | Sep. 30, 2013 | Jun. 19, 2013 | Sep. 20, 2013 | Jan. 27, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Jan. 31, 2014 | |
Loss Contingencies [Line Items] | |||||||||
Compensatory damages | $0 | ||||||||
Thibault | |||||||||
Loss Contingencies [Line Items] | |||||||||
Allocation of fault to plaintiff | 30.00% | ||||||||
Compensatory damages | 1,750,000 | ||||||||
Punitive damages | 1,280,000 | ||||||||
Total damages | 3,030,000 | ||||||||
Bond | 3,030,000 | ||||||||
Thibault | RJR Tobacco 2012 | |||||||||
Loss Contingencies [Line Items] | |||||||||
RJR Tobacco Allocation of Fault | 70.00% | ||||||||
Gafney | |||||||||
Loss Contingencies [Line Items] | |||||||||
Allocation of fault to plaintiff | 34.00% | ||||||||
Compensatory damages | 5,800,000 | ||||||||
Total damages | 1,900,000 | ||||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||||
Final Judgment | 1,900,000 | ||||||||
Gafney | RJR Tobacco 2012 | |||||||||
Loss Contingencies [Line Items] | |||||||||
RJR Tobacco Allocation of Fault | 33.00% | ||||||||
Gafney | Other Defendant | |||||||||
Loss Contingencies [Line Items] | |||||||||
RJR Tobacco Allocation of Fault | 33.00% | ||||||||
Harford | |||||||||
Loss Contingencies [Line Items] | |||||||||
Allocation of fault to plaintiff | 82.00% | ||||||||
Compensatory damages | 330,000 | ||||||||
Harford | RJR Tobacco 2012 | |||||||||
Loss Contingencies [Line Items] | |||||||||
RJR Tobacco Allocation of Fault | 18.00% | ||||||||
Cheeley | |||||||||
Loss Contingencies [Line Items] | |||||||||
Allocation of fault to plaintiff | 50.00% | ||||||||
Compensatory damages | 1,500,000 | 3,000,000 | |||||||
Punitive damages | 2,000,000 | 2,000,000 | |||||||
Bond | 3,500,000 | ||||||||
Judgment Sought Against Each Defendant | $15,000 | ||||||||
Cheeley | RJR Tobacco 2012 | |||||||||
Loss Contingencies [Line Items] | |||||||||
RJR Tobacco Allocation of Fault | 50.00% |
Recovered_Sheet3
Commitments and Contingencies - Additional Information 11 (Detail) (USD $) | 1 Months Ended | ||||||||||||
Jul. 31, 2014 | Mar. 31, 2015 | Aug. 27, 2014 | Apr. 30, 2014 | Feb. 18, 2014 | Feb. 27, 2014 | Sep. 30, 2014 | Mar. 17, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 26, 2014 | 16-May-14 | ||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages | $0 | ||||||||||||
Compensatory damages | 132,752,360 | [1] | |||||||||||
Goveia | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 30.00% | ||||||||||||
RJR Tobacco Allocation of Fault | 35.00% | ||||||||||||
Compensatory damages | 297,500 | 850,000 | |||||||||||
Punitive damages | 2,250,000 | 2,250,000 | |||||||||||
Bond | 2,500,000 | ||||||||||||
Compensatory damages | 297,500 | [1] | |||||||||||
Goveia | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 35.00% | ||||||||||||
Banks | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||||||||
Clayton | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 90.00% | ||||||||||||
RJR Tobacco Allocation of Fault | 10.00% | ||||||||||||
Compensatory damages | 60,000 | 600,000 | |||||||||||
Punitive damages | 0 | ||||||||||||
Bond | 223,000 | ||||||||||||
Taxable costs | 163,469 | ||||||||||||
Amount of final judgment | 223,469 | ||||||||||||
Compensatory damages | 60,000 | [2] | |||||||||||
Clayton | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 10.00% | ||||||||||||
Bowden | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 40.00% | ||||||||||||
Compensatory damages | 5,000,000 | ||||||||||||
Punitive damages | 0 | ||||||||||||
Bond | 1,500,000 | ||||||||||||
Compensatory damages | 1,500,000 | [1] | 1,500,000 | ||||||||||
Bowden | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | ||||||||||||
Bowden | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | ||||||||||||
Burkhart | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 50.00% | ||||||||||||
Compensatory damages | 5,000,000 | ||||||||||||
Compensatory damages | 2,500,000 | [1],[3] | |||||||||||
Burkhart | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 25.00% | ||||||||||||
Punitive damages | 1,250,000 | ||||||||||||
Burkhart | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 25.00% | ||||||||||||
Punitive damages | $1,250,000 | ||||||||||||
[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] | Compensatory damages are adjusted to reflect the reduction that may be 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. | ||||||||||||
[3] | The court did not apply comparative fault in the final judgment. |
Recovered_Sheet4
Commitments and Contingencies - Additional Information 12 (Detail) (USD $) | 0 Months Ended | ||||||||||||
Jun. 23, 2014 | Mar. 31, 2015 | Aug. 27, 2014 | Oct. 31, 2014 | Feb. 28, 2015 | Jan. 27, 2015 | Jul. 31, 2014 | Jul. 18, 2014 | Jul. 17, 2014 | Mar. 26, 2015 | Sep. 30, 2014 | Aug. 28, 2014 | ||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages | $0 | ||||||||||||
Compensatory damages | 132,752,360 | [1] | |||||||||||
Bakst | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 25.00% | ||||||||||||
Compensatory damages | 6,000,000 | ||||||||||||
Funeral Expenses | 4,209 | ||||||||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||||||||
Compensatory damages | 4,500,000 | 4,504,000 | [1] | ||||||||||
Punitive damages | 14,000,000 | ||||||||||||
Bond | 5,000,000 | ||||||||||||
Bakst | RJR Tobacco 2012 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 75.00% | ||||||||||||
Robinson | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 29.50% | ||||||||||||
RJR Tobacco Allocation of Fault | 70.50% | ||||||||||||
Compensatory damages | 16,900,000 | 16,900,000 | |||||||||||
Compensatory damages | 16,900,000 | [1] | |||||||||||
Punitive damages | 23,600,000,000 | ||||||||||||
Bond | 5,000,000 | ||||||||||||
Remitted punitive damages | 16,900,000 | ||||||||||||
Harris | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Compensatory damages | 647,500 | [1],[2],[3] | |||||||||||
Harris | Survival claim | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 60.00% | ||||||||||||
RJR Tobacco Allocation of Fault | 15.00% | ||||||||||||
Compensatory damages | 1,300,000 | ||||||||||||
Harris | Wrongful death claim | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 70.00% | ||||||||||||
RJR Tobacco Allocation of Fault | 10.00% | ||||||||||||
Compensatory damages | 400,000 | ||||||||||||
Harris | Other Defendant | Survival claim | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 25.00% | ||||||||||||
Harris | Other Defendant | Wrongful death claim | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 20.00% | ||||||||||||
Gore | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 54.00% | ||||||||||||
RJR Tobacco Allocation of Fault | 23.00% | ||||||||||||
Compensatory damages | 2,000,000 | ||||||||||||
Compensatory damages | 1,000,000 | [1] | |||||||||||
Gore | Other Defendant | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
RJR Tobacco Allocation of Fault | 23.00% | ||||||||||||
Wilcox | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Allocation of fault to plaintiff | 30.00% | ||||||||||||
RJR Tobacco Allocation of Fault | 70.00% | ||||||||||||
Compensatory damages | 7,000,000 | ||||||||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||||||||
Compensatory damages | 4,900,000 | [1] | 4,900,000 | ||||||||||
Punitive damages | 8,500,000 | ||||||||||||
Bond | 5,000,000 | ||||||||||||
Punitive damages | $8,500,000 | ||||||||||||
[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] | Should the pending post-trial motions be denied, RJR Tobacco will likely file a notice of appeal with the appropriate appellate court. | ||||||||||||
[3] | The court did not apply comparative fault in the final judgment. |
Recovered_Sheet5
Commitments and Contingencies - Additional Information 13 (Detail) (USD $) | Aug. 27, 2014 | Aug. 28, 2014 | Dec. 31, 2014 | Aug. 29, 2014 | Nov. 30, 2014 | Oct. 10, 2014 | Oct. 22, 2014 | Nov. 07, 2014 |
Loss Contingencies [Line Items] | ||||||||
Compensatory damages | $0 | |||||||
Irimi | ||||||||
Loss Contingencies [Line Items] | ||||||||
Allocation of fault to plaintiff | 70.00% | |||||||
RJR Tobacco Allocation of Fault | 14.50% | |||||||
Compensatory damages | 3,100,000 | |||||||
Total damages | 453,000 | |||||||
Irimi | Other Defendant | ||||||||
Loss Contingencies [Line Items] | ||||||||
RJR Tobacco Allocation of Fault | 15.50% | |||||||
Total damages | 484,000 | |||||||
Hubbird | ||||||||
Loss Contingencies [Line Items] | ||||||||
Allocation of fault to plaintiff | 50.00% | |||||||
RJR Tobacco Allocation of Fault | 50.00% | |||||||
Compensatory damages | 3,000,000 | |||||||
Total damages | 28,000,000 | |||||||
Punitive damages | 25,000,000 | |||||||
Bond | 5,000,000 | |||||||
Lourie | ||||||||
Loss Contingencies [Line Items] | ||||||||
Allocation of fault to plaintiff | 63.00% | |||||||
RJR Tobacco Allocation of Fault | 3.00% | |||||||
Compensatory damages | 1,370,000 | |||||||
Bond | 41,000 | |||||||
Lourie | Other Defendant | ||||||||
Loss Contingencies [Line Items] | ||||||||
RJR Tobacco Allocation of Fault | 34.00% | |||||||
Kerrivan | ||||||||
Loss Contingencies [Line Items] | ||||||||
Allocation of fault to plaintiff | 19.00% | |||||||
RJR Tobacco Allocation of Fault | 31.00% | |||||||
Compensatory damages | 15,800,000 | |||||||
Punitive damages | 9,600,000 | |||||||
Kerrivan | Other Defendant | ||||||||
Loss Contingencies [Line Items] | ||||||||
RJR Tobacco Allocation of Fault | 50.00% | |||||||
Punitive damages | 15,700,000 | |||||||
Taylor | ||||||||
Loss Contingencies [Line Items] | ||||||||
Allocation of fault to plaintiff | 42.00% | |||||||
RJR Tobacco Allocation of Fault | 58.00% | |||||||
Compensatory damages | 4,500,000 | |||||||
Total damages | 4,640,000 | |||||||
Punitive damages | 521,000 | |||||||
Bond | 4,640,000 | |||||||
Judgment Sought Against Each Defendant | $15,000 |
Recovered_Sheet6
Commitments and Contingencies - Additional Information 14 (Detail) (USD $) | 0 Months Ended | |||||||||||||
Oct. 31, 1997 | Aug. 27, 2014 | Nov. 18, 2014 | Mar. 31, 2015 | Nov. 21, 2014 | Feb. 28, 2015 | Jan. 29, 2015 | Feb. 12, 2015 | Feb. 11, 2015 | Feb. 19, 2015 | Feb. 26, 2015 | Mar. 18, 2015 | Mar. 25, 2015 | ||
Loss Contingencies [Line Items] | ||||||||||||||
Compensatory damages | $0 | |||||||||||||
Schleider | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Allocation of fault to plaintiff | 30.00% | |||||||||||||
RJR Tobacco Allocation of Fault | 70.00% | |||||||||||||
Compensatory damages | 21,000,000 | |||||||||||||
Judgment Sought Against Each Defendant | 15,000 | |||||||||||||
Schleider | RJR Tobacco | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
RJR Tobacco Allocation of Fault | 70.00% | [1] | ||||||||||||
Perrotto | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Allocation of fault to plaintiff | 49.00% | |||||||||||||
RJR Tobacco Allocation of Fault | 20.00% | |||||||||||||
Compensatory damages | 4,100,000 | |||||||||||||
Judgment Sought Against Each Defendant | 15,000 | |||||||||||||
Perrotto | RJR Tobacco | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
RJR Tobacco Allocation of Fault | 20.00% | [1] | ||||||||||||
Perrotto | Other Defendant | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
RJR Tobacco Allocation of Fault | 31.00% | |||||||||||||
Ellen Gray | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Allocation of fault to plaintiff | 50.00% | |||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | |||||||||||||
Compensatory damages | 6,000,000 | |||||||||||||
Punitive damages | 0 | |||||||||||||
Total damages | 3,000,000 | |||||||||||||
Ellen Gray | RJR Tobacco | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | [1] | ||||||||||||
Sowers | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Allocation of fault to plaintiff | 50.00% | 50.00% | ||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | 50.00% | ||||||||||||
Compensatory damages | 4,250,000 | 4,250,000 | ||||||||||||
Punitive damages | 0 | 0 | ||||||||||||
Total damages | 2,130,000 | |||||||||||||
Sowers | RJR Tobacco | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
RJR Tobacco Allocation of Fault | 50.00% | [1] | ||||||||||||
Landau | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Allocation of fault to plaintiff | 75.00% | |||||||||||||
Compensatory damages | 0 | |||||||||||||
Punitive damages | 0 | |||||||||||||
Landau | Other Defendant | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
RJR Tobacco Allocation of Fault | 25.00% | |||||||||||||
Compensatory damages | 100,000 | |||||||||||||
Zamboni | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Allocation of fault to plaintiff | 60.00% | |||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||||||
Compensatory damages | 340,000 | |||||||||||||
Punitive damages | 0 | |||||||||||||
Zamboni | RJR Tobacco | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
RJR Tobacco Allocation of Fault | 30.00% | |||||||||||||
Zamboni | Other Defendant | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
RJR Tobacco Allocation of Fault | 10.00% | |||||||||||||
Dion | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Judgment Sought Against Each Defendant | 15,000 | |||||||||||||
Pollari | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Allocation of fault to plaintiff | 15.00% | |||||||||||||
RJR Tobacco Allocation of Fault | 42.50% | |||||||||||||
Compensatory damages | 10,000,000 | |||||||||||||
Punitive damages | 1,500,000 | |||||||||||||
Pollari | RJR Tobacco | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
RJR Tobacco Allocation of Fault | 42.50% | [1] | ||||||||||||
Pollari | Other Defendant | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
RJR Tobacco Allocation of Fault | 42.50% | |||||||||||||
Broin | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Litigation settlement, amount | 300,000,000 | |||||||||||||
Annual installment of settlement | 100,000,000 | |||||||||||||
Fees and expenses | 49,000,000 | |||||||||||||
Broin | RJR Tobacco | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Litigation settlement, amount | 86,000,000 | |||||||||||||
Broin | Brown And Williamson Holdings Inc | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Litigation settlement, amount | 57,000,000 | |||||||||||||
Broin II | Florida | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Lawsuits pending | 2,555 | |||||||||||||
Light Case | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Lower range of damages | 50,000 | |||||||||||||
Upper range of damages | 75,000 | |||||||||||||
[1] | Should the pending post-trial motions be denied, RJR Tobacco will likely file a notice of appeal with the appropriate appellate court. |
Recovered_Sheet7
Commitments and Contingencies - Additional Information 15 (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |||||||
Mar. 31, 2015 | Sep. 24, 2014 | Aug. 27, 2014 | Nov. 19, 2013 | Jun. 19, 2012 | 15-May-12 | Aug. 24, 2011 | Aug. 31, 2005 | Apr. 30, 2005 | |
LegalMatter | |||||||||
Loss Contingencies [Line Items] | |||||||||
Compensatory damages | $0 | ||||||||
Accrued estimated cost for corrective communication | 10,000,000 | ||||||||
Number of cases pending in state court | 149 | ||||||||
Mississippi | |||||||||
Loss Contingencies [Line Items] | |||||||||
Payment Sought Under State Settlement Agreement | 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 | 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 | 4,900,000 | ||||||||
Amount accrued for compensatory damages | 19,000,000 | ||||||||
RJR Tobacco | Mississippi | |||||||||
Loss Contingencies [Line Items] | |||||||||
Compensatory damages | 8,000,000 | ||||||||
Light Case | Philip Morris | |||||||||
Loss Contingencies [Line Items] | |||||||||
Compensatory damages | 7,100,000,000 | ||||||||
Punitive damages | 3,000,000,000 | ||||||||
Bond | 12,000,000,000 | ||||||||
Parsons | |||||||||
Loss Contingencies [Line Items] | |||||||||
Judgment Sought Against Each Defendant | 1,000,000 | ||||||||
DOJ | |||||||||
Loss Contingencies [Line Items] | |||||||||
Deposit Into Court Registry Regarding Public Website | 3,125,000 | ||||||||
Accrued estimated cost for corrective communication | 10,000,000 | ||||||||
State Settlement Agreements | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of cases pending in state court | 28 | ||||||||
Brown and Williamson Tobacco Corp | Mississippi | |||||||||
Loss Contingencies [Line Items] | |||||||||
Compensatory damages | $10,800,000 |
Recovered_Sheet8
Commitments and Contingencies Related to Settlements (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | |
2013 | ||
Remaining Jurisdictions' Settlement: | ||
Annual Payments | $8,004 | [1] |
Total | 9,364 | |
Settlement expenses | 1,819 | |
Settlement cash payments | 2,582 | |
2014 | ||
Remaining Jurisdictions' Settlement: | ||
Annual Payments | 8,004 | [1] |
Total | 9,364 | |
Settlement expenses | 1,917 | |
Settlement cash payments | 1,985 | |
2015 and thereafter | ||
Remaining Jurisdictions' Settlement: | ||
Annual Payments | 8,004 | [1] |
Total | 9,364 | |
2015 and thereafter | Minimum | ||
Remaining Jurisdictions' Settlement: | ||
Projected settlement expenses | 1,800 | |
Projected settlement cash payments | 1,900 | |
Mississippi | 2013 | ||
First Four States' Settlements: | ||
Annual Settlement Payment | 136 | [1] |
Mississippi | 2014 | ||
First Four States' Settlements: | ||
Annual Settlement Payment | 136 | [1] |
Mississippi | 2015 and thereafter | ||
First Four States' Settlements: | ||
Annual Settlement Payment | 136 | [1] |
Florida | 2013 | ||
First Four States' Settlements: | ||
Annual Settlement Payment | 440 | [1] |
Florida | 2014 | ||
First Four States' Settlements: | ||
Annual Settlement Payment | 440 | [1] |
Florida | 2015 and thereafter | ||
First Four States' Settlements: | ||
Annual Settlement Payment | 440 | [1] |
Texas | 2013 | ||
First Four States' Settlements: | ||
Annual Settlement Payment | 580 | [1] |
Texas | 2014 | ||
First Four States' Settlements: | ||
Annual Settlement Payment | 580 | [1] |
Texas | 2015 and thereafter | ||
First Four States' Settlements: | ||
Annual Settlement Payment | 580 | [1] |
Minnesota | 2013 | ||
First Four States' Settlements: | ||
Annual Settlement Payment | 204 | [1] |
Minnesota | 2014 | ||
First Four States' Settlements: | ||
Annual Settlement Payment | 204 | [1] |
Minnesota | 2015 and thereafter | ||
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. |
Recovered_Sheet9
Commitments and Contingencies - Additional Information 16 (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
Mar. 31, 2015 | Sep. 11, 2013 | Nov. 03, 2011 | Jan. 31, 2009 | Nov. 30, 1998 | Apr. 30, 2007 | Mar. 31, 2007 | Dec. 31, 2006 | Apr. 30, 2006 | 31-May-06 | |
State | State | State | ||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of states involved in MSA | 46 | |||||||||
Arbitration Panel ruling | $0 | |||||||||
Npm Adjustment Claim For 2003 | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
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 | |||||||||
Percentage of Allocable shares | 90.00% | |||||||||
Percentage of Reduction in Ultimate Liability | 20.00% | |||||||||
Number of states involved in MSA | 45 | |||||||||
Combined allocable shares percentage maximum | 14.00% | |||||||||
Combined allocable shares percentage | 14.68% | |||||||||
Arbitration Panel ruling | 197,000,000 | 266,000,000 | ||||||||
Reduction in recovery from claims due to modification of judgment reduction method | 75,000,000 | |||||||||
Npm Adjustment Claim For 2003 | Maximum | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Courts deciding whether dispute is arbitrable | 48 | |||||||||
Florida | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Payment Sought Under State Settlement Agreement | 12,400,000 | |||||||||
Interest Payment Sought Under State Settlement Agreement | $17,000,000 |
Recovered_Sheet10
Commitments and Contingencies - Additional Information 17 (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | 24-May-13 | Apr. 12, 2013 | Mar. 31, 2014 | Jun. 26, 2014 | |
State | |||||||
Loss Contingencies [Line Items] | |||||||
NPM Adjustment credits | $170,000,000 | $1,100,000,000 | |||||
Arbitration Panel ruling | 0 | ||||||
Number of jurisdictions that have joined the settlement | 24 | ||||||
Total Cost of FETRA buyout | 9,900,000,000 | ||||||
17 States Plus District of Columbia and Puerto Rico | |||||||
Loss Contingencies [Line Items] | |||||||
Allocable share of settlement percentage | 42.00% | ||||||
Npm Adjustment Claim For 2009 | |||||||
Loss Contingencies [Line Items] | |||||||
Antitrust/CPTEF | 5,000,000 | ||||||
Percentage of amount to Fund States' Antitrust/Consumer Protection Tobacco | 47.00% | ||||||
Npm Adjustment Claim For 2011 And 2012 | |||||||
Loss Contingencies [Line Items] | |||||||
Disputed Notices | 888,000,000 | ||||||
Settlement Agreement | |||||||
Loss Contingencies [Line Items] | |||||||
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 | 6 | ||||||
Settlement Agreement | 20 Jurisdictions Including Oklahoma | |||||||
Loss Contingencies [Line Items] | |||||||
Percentage of Allocable shares | 46.00% | 43.00% | |||||
Settlement Agreement | Kentucky And Indiana | |||||||
Loss Contingencies [Line Items] | |||||||
Percentage of Allocable shares | 49.87% | ||||||
JTI Judgment | |||||||
Loss Contingencies [Line Items] | |||||||
Judgment Entered Against JTI in Brazil That JTI Believes RJR and RJR Tobacco Liable For | 1,850,000 | ||||||
West Virginia Ipic | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency period of inaction | 15 years | ||||||
Vassallo | |||||||
Loss Contingencies [Line Items] | |||||||
Punitive damages | 0 | ||||||
Vassallo | Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Judgment Sought Against Each Defendant | 15,000 | ||||||
FETRA Buyout | |||||||
Loss Contingencies [Line Items] | |||||||
FETRA payable to Quota tobacco holders | 9,600,000,000 | ||||||
Liquidation of Quota tobacco stock | 290,000,000 | ||||||
Assessment expiry date | 30-Sep-14 | ||||||
Share of Fetra buyout | 2,500,000,000 | ||||||
Annual expense under FETRA for 2014 | 55,000,000 | ||||||
RJR Tobacco and Santa Fe [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
NPM Adjustment credits | $70,000,000 |
Recovered_Sheet11
Commitments and Contingencies (Details 1) (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Accounting Changes And Error Corrections [Abstract] | |
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 for which NPM Adjustment calculated year eight | 2011 |
Year for which NPM Adjustment calculated year nine | 2012 |
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 |
Year in which deduction for NPM Adjustment was taken year eight | 2014 |
Year in which deduction for NPM Adjustment was taken year nine | 2015 |
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 | 472 |
RJR Tobacco's approximate share of disputed NPM adjustment amount year seven | 470 |
RJR Tobacco's approximate share of disputed NPM adjustment amount year eight | 422 |
RJR Tobacco's approximate share of disputed NPM adjustment amount year nine | $429 |
Shareholders_Equity_Detail
Shareholders Equity (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stockholders Equity Note Disclosure [Line Items] | ||
Beginning Balance | $4,522 | $5,167 |
Net income | 389 | 363 |
Retirement benefits, net of tax benefit | -6 | -6 |
Unrealized gain on long-term investments, net of tax expense | 1 | |
Cumulative translation adjustment and other, net of tax | -27 | 1 |
Dividends | -359 | -362 |
Common stock repurchased | -32 | -173 |
Equity incentive award plan and stock-based compensation | 18 | 12 |
Excess tax benefit on stock-based compensation plans | 14 | 10 |
Ending Balance | 4,519 | 5,013 |
Paid-in Capital | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Beginning Balance | 6,200 | 6,571 |
Common stock repurchased | -32 | -173 |
Equity incentive award plan and stock-based compensation | 18 | 12 |
Excess tax benefit on stock-based compensation plans | 14 | 10 |
Ending Balance | 6,200 | 6,420 |
Accumulated Deficit | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Beginning Balance | -1,314 | -1,348 |
Net income | 389 | 363 |
Dividends | -359 | -362 |
Ending Balance | -1,284 | -1,347 |
Accumulated Other Comprehensive Loss | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Beginning Balance | -364 | -56 |
Retirement benefits, net of tax benefit | -6 | -6 |
Unrealized gain on long-term investments, net of tax expense | 1 | |
Cumulative translation adjustment and other, net of tax | -27 | 1 |
Ending Balance | ($397) | ($60) |
Shareholders_Equity_Parentheti
Shareholders Equity (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Equity [Abstract] | ||
Tax benefit, retirement benefits | $4 | $4 |
Tax expense, cumulative translation adjustment and other | 12 | |
Dividends, per share | $0.67 | $0.67 |
Tax expense, unrealized gain on long-term investments | $1 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Loss Net of Tax (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | ($364) | ($56) | ||
Other comprehensive income (loss) before reclassifications | -27 | 2 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | -6 | -6 | ||
Net current-period other comprehensive income (loss) | -33 | -4 | ||
Ending balance | -397 | -60 | ||
Accumulated Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | -294 | -17 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | -6 | -6 | ||
Net current-period other comprehensive income (loss) | -6 | -6 | ||
Ending balance | -300 | -23 | ||
Accumulated Net Unrealized Investment Gain (Loss) | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | -16 | -14 | ||
Other comprehensive income (loss) before reclassifications | 1 | |||
Net current-period other comprehensive income (loss) | 1 | |||
Ending balance | -14 | -15 | -14 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | -12 | -13 | ||
Ending balance | -12 | -13 | -12 | -13 |
Accumulated Translation Adjustment and Other | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | -44 | -10 | ||
Other comprehensive income (loss) before reclassifications | -27 | 1 | ||
Net current-period other comprehensive income (loss) | -27 | 1 | ||
Ending balance | ($71) | ($9) |
Reclassification_Out_of_Accumu
Reclassification Out of Accumulated Other Comprehensive Loss and Affected Line Items in Condensed Consolidated Statement of Income (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | ($850) | [1] | ($930) | [1] |
Selling, general and administrative expenses | -511 | -413 | ||
Income from continuing operations before income taxes | 620 | 531 | ||
Provision for income taxes | -231 | -193 | ||
Net income | 389 | 363 | ||
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 | -5 | -5 | ||
Selling, general and administrative expenses | -5 | -5 | ||
Income from continuing operations before income taxes | -10 | -10 | ||
Provision for income taxes | 4 | 4 | ||
Net income | ($6) | ($6) | ||
[1] | Excludes excise taxes of $840 million and $846 million for the three months ended March 31, 2015 and 2014, respectively. |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 05, 2015 | Mar. 10, 2015 |
Shareholders Equity [Line Items] | ||||
Issuance of shares of RAI common stock on settlement | 1,153,766 | |||
Cost of shares purchased that forfeited with respect to tax liabilities associated with restricted stock vesting | $32 | |||
Number of shares purchased that forfeited with respect to tax liabilities associated with restricted stock vesting under its LTIP | 424,145 | |||
Cash dividend per share, declared | $0.67 | $0.67 | ||
Quarterly Dividend | ||||
Shareholders Equity [Line Items] | ||||
Cash dividend per share, declared | $0.67 | |||
Annualized Dividend | ||||
Shareholders Equity [Line Items] | ||||
Cash dividend per share, declared | $2.68 |
Stock_Plans_Additional_Informa
Stock Plans - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended |
Mar. 02, 2015 | Mar. 31, 2015 | 1-May-14 | Apr. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares available for grant under the Omnibus Plan | 693,090 | |||
Restricted stock unit award adjustment upper end of range | 150.00% | |||
Weighted average grant date fair value outstanding | $75.88 | |||
Cumulative dividend threshold | $8.04 | |||
One-year grant | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock unit award adjustment upper end of range | 150.00% | |||
Number of shares granted | 149,192 | |||
One-year grant | May 1, 2014 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Ending date of performance period | 30-Apr-15 | |||
Equity Incentive Award Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average grant date fair value outstanding | $68.91 | |||
Cumulative dividend threshold | $2.68 | |||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock unit award adjustment | 50.00% | |||
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting date | 2-Mar-18 | |||
Restricted Stock Units | One-year grant | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting date | 1-May-15 |
Segment_Information_Detail
Segment Information (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Net sales | $2,057 | $1,935 | ||
Operating income (loss) | 693 | [1] | 590 | [1] |
Interest and debt expense | 91 | 59 | ||
Interest income | -1 | -1 | ||
Other (income) expense, net | -17 | 1 | ||
Income from continuing operations before income taxes | 620 | 531 | ||
Operating Segments | RJR Tobacco | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,608 | 1,563 | ||
Operating income (loss) | 588 | [1] | 482 | [1] |
Operating Segments | American Snuff | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 201 | 184 | ||
Operating income (loss) | 118 | 102 | ||
Operating Segments | Santa Fe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 171 | 135 | ||
Operating income (loss) | 92 | 65 | ||
Operating Segments | All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 77 | 53 | ||
Operating income (loss) | -61 | -39 | ||
Corporate, Non-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | ($44) | ($20) | ||
[1] | The three months ended March 31, 2015, includes a $70 million reduction in cost of goods sold associated with the 2003 NPM Adjustment claim, see “— Cost of Products Sold†in note 1. |
Segment_Information_Parentheti
Segment Information (Parenthetical) (Detail) (USD $) | 12 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 |
Segment Reporting Information [Line Items] | |||
NPM Adjustment credits | $170 | $1,100 | |
RJR Tobacco | |||
Segment Reporting Information [Line Items] | |||
NPM Adjustment credits | $70 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jul. 15, 2014 | |
Related Party Transactions [Abstract] | |||
Percentage of RAI's outstanding common stock | 42.00% | 42.00% | |
Revenue percentage from related parties | 4.00% | 4.00% | |
Percentage of maximum purchase price | 10.00% |
Summary_of_Balances_and_Transa
Summary of Balances and Transactions (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Related Party Transactions [Abstract] | |||
Accounts receivable, related party | $56 | $41 | |
Due to related party | 1 | 1 | |
Deferred revenue, related party | 23 | 32 | |
Net sales | 82 | 86 | |
Purchases | 2 | 9 | |
RAI common stock purchases from B&W | 41 | ||
Capsule royalty income | $3 |
RAI_Guaranteed_Unsecured_Notes2
RAI Guaranteed Unsecured Notes - Condensed Consolidating Financial Statements (Detail) (RAI, USD $) | Mar. 31, 2015 |
In Billions, unless otherwise specified | |
RAI | |
Condensed Financial Statements Captions [Line Items] | |
RAI's unsecured notes | $5.10 |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Income (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Condensed Financial Statements Captions [Line Items] | ||||
Net sales | $1,975 | [1] | $1,849 | [1] |
Net sales, related party | 82 | 86 | ||
Net sales | 2,057 | 1,935 | ||
Cost of products sold | 850 | [1] | 930 | [1] |
Selling, general and administrative expenses | 511 | 413 | ||
Amortization expense | 3 | 2 | ||
Operating income (loss) | 693 | [2] | 590 | [2] |
Interest and debt expense | 91 | 59 | ||
Interest income | -1 | -1 | ||
Other (income) expense, net | -17 | 1 | ||
Income from continuing operations before income taxes | 620 | 531 | ||
Provision for income taxes from continuing operations | 231 | 193 | ||
Income from continuing operations | 389 | 338 | ||
Income from discontinued operations | 25 | |||
Net income | 389 | 363 | ||
RAI | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Selling, general and administrative expenses | 19 | 3 | ||
Operating income (loss) | -19 | -3 | ||
Interest and debt expense | 91 | 59 | ||
Interest income | -19 | -24 | ||
Other (income) expense, net | 1 | 2 | ||
Income from continuing operations before income taxes | -92 | -40 | ||
Provision for income taxes from continuing operations | -27 | -14 | ||
Equity income (loss) from subsidiaries | 454 | 389 | ||
Income from continuing operations | 363 | |||
Net income | 389 | 363 | ||
Guarantors | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Net sales | 1,999 | 1,814 | ||
Net sales, related party | 82 | 86 | ||
Net sales | 2,081 | 1,900 | ||
Cost of products sold | 869 | 905 | ||
Selling, general and administrative expenses | 425 | 357 | ||
Amortization expense | 3 | 2 | ||
Operating income (loss) | 784 | 636 | ||
Interest and debt expense | 17 | 23 | ||
Interest income | -1 | -1 | ||
Other (income) expense, net | -10 | -11 | ||
Income from continuing operations before income taxes | 778 | 625 | ||
Provision for income taxes from continuing operations | 281 | 223 | ||
Equity income (loss) from subsidiaries | 20 | 6 | ||
Income from continuing operations | 408 | |||
Income from discontinued operations | 25 | |||
Net income | 517 | 433 | ||
Non-Guarantors | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Net sales | 68 | 43 | ||
Net sales | 68 | 43 | ||
Cost of products sold | 70 | 33 | ||
Selling, general and administrative expenses | 67 | 53 | ||
Operating income (loss) | -69 | -43 | ||
Interest and debt expense | 2 | 1 | ||
Other (income) expense, net | -19 | -1 | ||
Income from continuing operations before income taxes | -52 | -43 | ||
Provision for income taxes from continuing operations | -23 | -16 | ||
Income from continuing operations | -27 | |||
Net income | -29 | -27 | ||
Eliminations | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Net sales | -92 | -8 | ||
Net sales | -92 | -8 | ||
Cost of products sold | -89 | -8 | ||
Operating income (loss) | -3 | |||
Interest and debt expense | -19 | -24 | ||
Interest income | 19 | 24 | ||
Other (income) expense, net | 11 | 11 | ||
Income from continuing operations before income taxes | -14 | -11 | ||
Equity income (loss) from subsidiaries | -474 | -395 | ||
Income from continuing operations | -406 | |||
Net income | ($488) | ($406) | ||
[1] | Excludes excise taxes of $840 million and $846 million for the three months ended March 31, 2015 and 2014, respectively. | |||
[2] | The three months ended March 31, 2015, includes a $70 million reduction in cost of goods sold associated with the 2003 NPM Adjustment claim, see “— Cost of Products Sold†in note 1. |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Statements Captions [Line Items] | ||
Net income (loss) | $389 | $363 |
Other comprehensive income (loss), net of tax: | ||
Retirement benefits, net of tax benefit | -6 | -6 |
Cumulative translation adjustment and other | -27 | 1 |
Unrealized gain on long-term investments, net of tax expense | 1 | |
Comprehensive income (loss) | 356 | 359 |
RAI | ||
Condensed Financial Statements Captions [Line Items] | ||
Net income (loss) | 389 | 363 |
Other comprehensive income (loss), net of tax: | ||
Retirement benefits, net of tax benefit | -6 | -6 |
Cumulative translation adjustment and other | -27 | 1 |
Unrealized gain on long-term investments, net of tax expense | 1 | |
Comprehensive income (loss) | 356 | 359 |
Guarantors | ||
Condensed Financial Statements Captions [Line Items] | ||
Net income (loss) | 517 | 433 |
Other comprehensive income (loss), net of tax: | ||
Retirement benefits, net of tax benefit | -6 | -6 |
Cumulative translation adjustment and other | -27 | 1 |
Unrealized gain on long-term investments, net of tax expense | 1 | |
Comprehensive income (loss) | 484 | 429 |
Non-Guarantors | ||
Condensed Financial Statements Captions [Line Items] | ||
Net income (loss) | -29 | -27 |
Other comprehensive income (loss), net of tax: | ||
Cumulative translation adjustment and other | -40 | |
Comprehensive income (loss) | -69 | -27 |
Eliminations | ||
Condensed Financial Statements Captions [Line Items] | ||
Net income (loss) | -488 | -406 |
Other comprehensive income (loss), net of tax: | ||
Retirement benefits, net of tax benefit | 6 | 6 |
Cumulative translation adjustment and other | 67 | -1 |
Unrealized gain on long-term investments, net of tax expense | -1 | |
Comprehensive income (loss) | ($415) | ($402) |
Reclassification_Out_of_Accumu1
Reclassification Out of Accumulated Other Comprehensive Loss and Affected Line Items in Condensed Consolidating Statements of Income (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | ($850) | [1] | ($930) | [1] |
Selling, general and administrative expenses | -511 | -413 | ||
Income from continuing operations before income taxes | 620 | 531 | ||
Provision for income taxes | -231 | -193 | ||
Net income | 389 | 363 | ||
RAI | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general and administrative expenses | -19 | -3 | ||
Income from continuing operations before income taxes | -92 | -40 | ||
Provision for income taxes | 27 | 14 | ||
Equity income from subsidiaries | 454 | 389 | ||
Net income | 389 | 363 | ||
Guarantors | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | -869 | -905 | ||
Selling, general and administrative expenses | -425 | -357 | ||
Income from continuing operations before income taxes | 778 | 625 | ||
Provision for income taxes | -281 | -223 | ||
Equity income from subsidiaries | 20 | 6 | ||
Net income | 517 | 433 | ||
Non-Guarantors | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | -70 | -33 | ||
Selling, general and administrative expenses | -67 | -53 | ||
Income from continuing operations before income taxes | -52 | -43 | ||
Provision for income taxes | 23 | 16 | ||
Net income | -29 | -27 | ||
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 | -5 | -5 | ||
Selling, general and administrative expenses | -5 | -5 | ||
Income from continuing operations before income taxes | -10 | -10 | ||
Provision for income taxes | 4 | 4 | ||
Net income | -6 | -6 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | RAI | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Equity income from subsidiaries | -6 | -6 | ||
Net income | -6 | -6 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | Guarantors | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | -5 | -5 | ||
Selling, general and administrative expenses | -5 | -5 | ||
Income from continuing operations before income taxes | -10 | -10 | ||
Provision for income taxes | 4 | 4 | ||
Net income | -6 | -6 | ||
Eliminations | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | 89 | 8 | ||
Income from continuing operations before income taxes | -14 | -11 | ||
Equity income from subsidiaries | -474 | -395 | ||
Net income | -488 | -406 | ||
Eliminations | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Equity income from subsidiaries | 6 | 6 | ||
Net income | $6 | $6 | ||
[1] | Excludes excise taxes of $840 million and $846 million for the three months ended March 31, 2015 and 2014, respectively. |
Condensed_Consolidating_Statem2
Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Statements Captions [Line Items] | ||
Net cash flows from operating activities | $1,080 | $912 |
Cash flows from (used in) investing activities: | ||
Capital expenditures | -26 | -55 |
Other, net | 1 | -30 |
Net cash flows used in investing activities | -25 | -85 |
Cash flows from (used in) financing activities: | ||
Dividends paid on common stock | -356 | -339 |
Repurchase of common stock | -32 | -173 |
Principal borrowings under revolving credit facility | 300 | |
Repayments under revolving credit facility | -300 | |
Excess tax benefit on stock-based compensation plans | 14 | 10 |
Net cash flows used in financing activities | -374 | -502 |
Effect of exchange rate changes on cash and cash equivalents | -32 | 1 |
Net change in cash and cash equivalents | 649 | 326 |
Cash and cash equivalents at beginning of period | 966 | 1,500 |
Cash and cash equivalents at end of period | 1,615 | 1,826 |
RAI | ||
Condensed Financial Statements Captions [Line Items] | ||
Net cash flows from operating activities | 480 | 474 |
Cash flows from (used in) investing activities: | ||
Return of intercompany investments | 185 | |
Contributions to intercompany investments | -32 | |
Other, net | -7 | |
Net cash flows used in investing activities | 185 | -39 |
Cash flows from (used in) financing activities: | ||
Dividends paid on common stock | -356 | -339 |
Repurchase of common stock | -32 | -173 |
Principal borrowings under revolving credit facility | 300 | |
Repayments under revolving credit facility | -300 | |
Excess tax benefit on stock-based compensation plans | 14 | 10 |
Dividends paid on preferred stock | -11 | -11 |
Other, net | -11 | -11 |
Net cash flows used in financing activities | -396 | -524 |
Net change in cash and cash equivalents | 269 | -89 |
Cash and cash equivalents at beginning of period | 102 | 444 |
Cash and cash equivalents at end of period | 371 | 355 |
Guarantors | ||
Condensed Financial Statements Captions [Line Items] | ||
Net cash flows from operating activities | 1,091 | 893 |
Cash flows from (used in) investing activities: | ||
Capital expenditures | -28 | -20 |
Other, net | 12 | 12 |
Net cash flows used in investing activities | -16 | -8 |
Cash flows from (used in) financing activities: | ||
Dividends paid on common stock | -479 | -424 |
Other, net | -205 | -100 |
Net cash flows used in financing activities | -684 | -524 |
Net change in cash and cash equivalents | 391 | 361 |
Cash and cash equivalents at beginning of period | 469 | 696 |
Cash and cash equivalents at end of period | 860 | 1,057 |
Non-Guarantors | ||
Condensed Financial Statements Captions [Line Items] | ||
Net cash flows from operating activities | 2 | -17 |
Cash flows from (used in) investing activities: | ||
Capital expenditures | -1 | -38 |
Other, net | -31 | |
Net cash flows used in investing activities | -1 | -69 |
Cash flows from (used in) financing activities: | ||
Receipt of equity | 32 | |
Other, net | 20 | 107 |
Net cash flows used in financing activities | 20 | 139 |
Effect of exchange rate changes on cash and cash equivalents | -32 | 1 |
Net change in cash and cash equivalents | -11 | 54 |
Cash and cash equivalents at beginning of period | 395 | 360 |
Cash and cash equivalents at end of period | 384 | 414 |
Eliminations | ||
Condensed Financial Statements Captions [Line Items] | ||
Net cash flows from operating activities | -493 | -438 |
Cash flows from (used in) investing activities: | ||
Capital expenditures | 3 | 3 |
Return of intercompany investments | -185 | |
Contributions to intercompany investments | 32 | |
Other, net | -11 | -4 |
Net cash flows used in investing activities | -193 | 31 |
Cash flows from (used in) financing activities: | ||
Dividends paid on common stock | 479 | 424 |
Dividends paid on preferred stock | 11 | 11 |
Receipt of equity | -32 | |
Other, net | 196 | 4 |
Net cash flows used in financing activities | $686 | $407 |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $1,615 | $966 | $1,826 | $1,500 |
Accounts receivable | 118 | 116 | ||
Accounts receivable, related party | 56 | 41 | ||
Other receivables | 12 | 12 | ||
Inventories | 1,268 | 1,281 | ||
Deferred income taxes, net | 704 | 703 | ||
Other current assets | 216 | 204 | ||
Total current assets | 3,989 | 3,323 | ||
Property, plant and equipment, net | 1,202 | 1,203 | ||
Trademarks and other intangible assets, net | 2,418 | 2,421 | ||
Goodwill | 8,015 | 8,016 | ||
Other assets and deferred charges | 226 | 233 | ||
Total assets | 15,850 | 15,196 | ||
Liabilities and shareholders’ equity | ||||
Accounts payable | 126 | 142 | ||
Tobacco settlement accruals | 2,216 | 1,819 | ||
Due to related party | 1 | 1 | ||
Deferred revenue, related party | 23 | 32 | ||
Current maturities of long-term debt | 450 | 450 | ||
Dividends payable on common stock | 356 | 356 | ||
Other current liabilities | 1,053 | 744 | ||
Total current liabilities | 4,225 | 3,544 | ||
Long-term debt (less current maturities) | 4,629 | 4,633 | ||
Deferred income taxes, net | 397 | 383 | ||
Long-term retirement benefits (less current portion) | 1,973 | 1,997 | ||
Other noncurrent liabilities | 107 | 117 | ||
Shareholders’ equity | 4,519 | 4,522 | 5,013 | 5,167 |
Total liabilities and shareholders' equity | 15,850 | 15,196 | ||
RAI | ||||
Assets | ||||
Cash and cash equivalents | 371 | 102 | 355 | 444 |
Other receivables | 105 | 70 | ||
Deferred income taxes, net | 14 | 5 | ||
Other current assets | 21 | 50 | ||
Total current assets | 511 | 227 | ||
Property, plant and equipment, net | 3 | 3 | ||
Long-term intercompany notes receivable | 1,593 | 1,593 | ||
Investment in subsidiaries | 8,305 | 9,598 | ||
Other assets and deferred charges | 102 | 101 | ||
Total assets | 10,514 | 11,522 | ||
Liabilities and shareholders’ equity | ||||
Accounts payable | 2 | 1 | ||
Current maturities of long-term debt | 450 | 450 | ||
Dividends payable on common stock | 356 | 356 | ||
Other current liabilities | 292 | 1,280 | ||
Total current liabilities | 1,100 | 2,087 | ||
Long-term intercompany notes payable | 180 | 190 | ||
Long-term debt (less current maturities) | 4,629 | 4,633 | ||
Long-term retirement benefits (less current portion) | 57 | 57 | ||
Other noncurrent liabilities | 29 | 33 | ||
Shareholders’ equity | 4,519 | 4,522 | ||
Total liabilities and shareholders' equity | 10,514 | 11,522 | ||
Guarantors | ||||
Assets | ||||
Cash and cash equivalents | 860 | 469 | 1,057 | 696 |
Accounts receivable | 71 | 74 | ||
Accounts receivable, related party | 56 | 41 | ||
Other receivables | 53 | 1,199 | ||
Inventories | 1,160 | 1,198 | ||
Deferred income taxes, net | 681 | 688 | ||
Other current assets | 191 | 151 | ||
Total current assets | 3,072 | 3,820 | ||
Property, plant and equipment, net | 1,169 | 1,170 | ||
Trademarks and other intangible assets, net | 2,414 | 2,417 | ||
Goodwill | 7,999 | 7,999 | ||
Long-term intercompany notes receivable | 180 | 190 | ||
Investment in subsidiaries | 431 | 450 | ||
Other assets and deferred charges | 174 | 180 | ||
Total assets | 15,439 | 16,226 | ||
Liabilities and shareholders’ equity | ||||
Accounts payable | 105 | 128 | ||
Tobacco settlement accruals | 2,216 | 1,819 | ||
Due to related party | 1 | 1 | ||
Deferred revenue, related party | 23 | 32 | ||
Other current liabilities | 805 | 682 | ||
Total current liabilities | 3,150 | 2,662 | ||
Long-term intercompany notes payable | 1,280 | 1,300 | ||
Deferred income taxes, net | 465 | 450 | ||
Long-term retirement benefits (less current portion) | 1,905 | 1,930 | ||
Other noncurrent liabilities | 78 | 83 | ||
Shareholders’ equity | 8,561 | 9,801 | ||
Total liabilities and shareholders' equity | 15,439 | 16,226 | ||
Non-Guarantors | ||||
Assets | ||||
Cash and cash equivalents | 384 | 395 | 414 | 360 |
Accounts receivable | 47 | 42 | ||
Other receivables | 4 | 10 | ||
Inventories | 113 | 85 | ||
Deferred income taxes, net | 9 | 10 | ||
Other current assets | 4 | 1 | ||
Total current assets | 561 | 543 | ||
Property, plant and equipment, net | 30 | 30 | ||
Trademarks and other intangible assets, net | 4 | 4 | ||
Goodwill | 16 | 17 | ||
Other assets and deferred charges | 22 | 23 | ||
Total assets | 633 | 617 | ||
Liabilities and shareholders’ equity | ||||
Accounts payable | 19 | 13 | ||
Other current liabilities | 109 | 51 | ||
Total current liabilities | 128 | 64 | ||
Long-term intercompany notes payable | 313 | 293 | ||
Long-term retirement benefits (less current portion) | 11 | 10 | ||
Other noncurrent liabilities | 1 | |||
Shareholders’ equity | 181 | 249 | ||
Total liabilities and shareholders' equity | 633 | 617 | ||
Eliminations | ||||
Assets | ||||
Other receivables | -150 | -1,267 | ||
Inventories | -5 | -2 | ||
Other current assets | 2 | |||
Total current assets | -155 | -1,267 | ||
Long-term intercompany notes receivable | -1,773 | -1,783 | ||
Investment in subsidiaries | -8,736 | -10,048 | ||
Other assets and deferred charges | -72 | -71 | ||
Total assets | -10,736 | -13,169 | ||
Liabilities and shareholders’ equity | ||||
Other current liabilities | -153 | -1,269 | ||
Total current liabilities | -153 | -1,269 | ||
Long-term intercompany notes payable | -1,773 | -1,783 | ||
Deferred income taxes, net | -68 | -67 | ||
Shareholders’ equity | -8,742 | -10,050 | ||
Total liabilities and shareholders' equity | ($10,736) | ($13,169) |