Reynolds American (RAI) 10-Q 26 Apr 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 04, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	RAI
Entity Registrant Name	REYNOLDS AMERICAN INC
Entity Central Index Key	1,275,283
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,427,341,241

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Net sales	[1]	$ 2,862	$ 1,975
Net sales, related party		55	82
Net sales		2,917	2,057
Costs and expenses:
Cost of products sold	[1]	1,165	850
Selling, general and administrative expenses		465	511
Gain on divestiture		(4,861)
Amortization expense		6	3
Operating income		6,142	693
Interest and debt expense		174	91
Interest income		(3)	(1)
Other (income) expense, net		252	(17)
Income before income taxes		5,719	620
Provision for income taxes		2,154	231
Net income		$ 3,565	$ 389
Basic income per share:
Net income		$ 2.50	$ 0.36
Diluted income per share:
Net income		2.49	0.36
Dividends declared per share		$ 0.42	$ 0.335
[1]	Excludes excise taxes of $1,030 million and $840 million for the three months ended March 31, 2016 and 2015, respectively.

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Excise taxes	$ 1,030	$ 840

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 3,565	$ 389
Other comprehensive income (loss), net of tax:
Retirement benefits, net of tax benefit (2016 — $4; 2015 — $4)	(6)	(6)
Unrealized gain on long-term investments, net of tax	1
Realized gain on long-term investments, net of tax expense (2016 — $1)	(2)
Realized loss on hedging instruments, net of tax expense (2016 — $6)	11
Cumulative translation adjustment and other, net of tax (benefit) expense (2016 — $11; 2015 — $(12))	22	(27)
Comprehensive income	$ 3,591	$ 356

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Tax benefit, retirement benefits	$ 4	$ 4
Tax expense, realized gain on long-term investments	1
Tax expense, realized loss on hedging instruments	6
Tax expense (benefit), cumulative translation adjustment and other	$ 11	$ (12)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from (used in) operating activities:
Net income	$ 3,565	$ 389
Adjustments to reconcile to net cash flows from (used in) operating activities:
Gain on divestiture	(4,861)
Loss on early extinguishment of debt and related expenses	239
Depreciation and amortization expense	30	28
Deferred income tax expense	75	26
Pension and postretirement	(357)	(35)
Tobacco settlement	630	397
Income taxes payable	2,002	182
Other, net	(190)	93
Net cash flows from operating activities	1,133	1,080
Cash flows from (used in) investing activities:
Capital expenditures	(43)	(26)
Proceeds from settlement of short-term investments	159
Proceeds from divestiture	5,014
Other, net	1	1
Net cash flows from (used in) investing activities	5,131	(25)
Cash flows from (used in) financing activities:
Dividends paid on common stock	(514)	(356)
Repurchase of common stock	(125)	(32)
Early extinguishment of debt	(3,642)
Redemption premium for tender offer	(118)
Make-whole premium for early extinguishment of debt	(88)
Proceeds from termination of interest rate swaps	66
Debt financing fees	(7)
Excess tax benefit on stock-based compensation plans	26	14
Borrowings under revolving credit facility		300
Repayments of borrowings under revolving credit facility		(300)
Net cash flows used in financing activities	(4,402)	(374)
Effect of exchange rate changes on cash and cash equivalents	12	(32)
Net change in cash and cash equivalents	1,874	649
Cash and cash equivalents at beginning of period	2,567	966
Cash and cash equivalents at end of period	4,441	1,615
Income taxes paid, net of refunds	25	9
Interest paid	$ 185	$ 31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 4,441	$ 2,567
Short-term investments	14	149
Accounts receivable	80	68
Accounts receivable, related party	31	38
Other receivables	30	35
Inventories	1,658	1,734
Deferred income taxes, net	992	1,032
Other current assets	283	564
Total current assets	7,529	6,187
Property, plant and equipment, net of accumulated depreciation (2016 — $1,657; 2015 — $1,643)	1,269	1,255
Trademarks and other intangible assets, net of accumulated amortization	29,461	29,467
Goodwill	15,993	15,993
Other assets and deferred charges	156	230
Total assets	54,408	53,132
Current liabilities:
Accounts payable	138	179
Tobacco settlement accruals	3,446	2,816
Due to related party	2	9
Deferred revenue, related party	25	33
Current maturities of long-term debt	503	506
Dividends payable on common stock	599	514
Income taxes payable	1,860
Other current liabilities	1,031	1,234
Total current liabilities	7,604	5,291
Long-term debt (less current maturities)	13,213	16,849
Deferred income taxes, net	10,285	10,236
Long-term retirement benefits (less current portion)	1,917	2,265
Other noncurrent liabilities	$ 226	$ 239
Commitments and contingencies:
Shareholders’ equity:
Common stock (shares issued: 2016 — 1,427,341,241; 2015 — 1,427,341,341)	$ 0	$ 0
Paid-in capital	18,324	18,402
Retained earnings	3,151	188
Accumulated other comprehensive loss	(312)	(338)
Total shareholders’ equity	21,163	18,252
Total liabilities and shareholders' equity	$ 54,408	$ 53,132

CONDENSED CONSOLIDATED BALANCE8

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Property, plant and equipment, accumulated depreciation	$ 1,657	$ 1,643
Common stock, shares issued	1,427,341,241	1,427,341,341

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
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; Santa Fe Natural Tobacco Company, Inc., referred to as SFNTC; American Snuff Company, LLC, referred to as American Snuff Co.; R. J. Reynolds Vapor Company, referred to as RJR Vapor; Niconovum USA, Inc.; Niconovum AB; and until their sale on January 13, 2016, as described below, 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. Recent Transactions On June 12, 2015, RAI acquired Lorillard Inc., n/k/a Lorillard, LLC, referred to as Lorillard, in a cash and stock transaction, valued at $25.8 billion, referred to as the Merger. Also on June 12, 2015, a wholly owned subsidiary, referred to as Imperial Sub, of Imperial Brands, PLC, f/k/a Imperial Tobacco Group PLC, acquired for approximately $7.1 billion, in a transaction referred to as the Divestiture, certain assets (1) owned by RAI subsidiaries or affiliates relating to the cigarette brands WINSTON, KOOL and SALEM, and (2) owned by Lorillard subsidiaries or affiliates related to the cigarette brand MAVERICK and the “e-vapor” brand blu (including SKYCIG), as well as Lorillard’s owned and leased real property, and certain transferred employees, together with associated liabilities. Additionally on June 12, 2015, shortly after completion of the Merger, Lorillard Tobacco Company, LLC, a wholly owned subsidiary of Lorillard, referred to as Lorillard Tobacco, merged with and into RJR Tobacco, with RJR Tobacco continuing as the surviving entity, referred to as the Lorillard Tobacco Merger. On June 12, 2015, concurrently with the completion of the Merger and Divestiture, BAT indirectly (through a wholly owned subsidiary) purchased 77,680,259 shares of RAI common stock, prior to giving effect to RAI’s 2015 two-for-one stock split, for approximately $4.7 billion, which was sufficient for BAT and its subsidiaries collectively to maintain their approximately 42% beneficial ownership in RAI. On January 13, 2016, RAI, through various subsidiaries, referred to as the Sellers, completed the sale of the international rights to the NATURAL AMERICAN SPIRIT brand name and associated trademarks, along with SFRTI and other international companies that distributed and marketed the brand outside the United States to JT International Holding BV, referred to as JTI Holding, a subsidiary of Japan Tobacco Inc., referred to as JTI, in an all-cash transaction of approximately $5 billion. The transaction did not include the rights to the NATURAL AMERICAN SPIRIT brand name and associated trademarks in the U.S. market, U.S duty-free locations and U.S. territories or in U.S. military outlets, all of which were retained by SFNTC. See note 2 for additional information on this transaction. Operating Segments RAI’s reportable operating segments are RJR Tobacco, Santa Fe and American Snuff. The RJR Tobacco segment consists principally of the primary operations of R. J. Reynolds Tobacco Company. The Santa Fe segment consists of the domestic operations of SFNTC. The American Snuff segment consists of the primary operations of American Snuff Co. Included in All Other, among other RAI subsidiaries, are RJR Vapor, Niconovum USA, Inc., Niconovum AB, and until their sale on January 13, 2016, as described above, 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, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015. 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. All share and per share amounts reflect the two-for-one split of RAI’s common stock on August 31, 2015, unless otherwise noted. Cost of Products Sold Cost of products sold includes, among other expenses, 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, and the user fees charged by the U.S. Food and Drug Administration, referred to as the FDA. These expenses were as follows: For the Three Months Ended March 31, 2016 2015 State Settlement Agreements $ 630 $ 394 FDA user fees 50 35 In 2012, RJR Tobacco, Lorillard Tobacco, SFNTC and certain other participating manufacturers, referred to as the PMs, 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 resolved claims related to volume years from 2003 through 2012 and put in place a revised method to determine future adjustments from 2013 forward as to jurisdictions that join the agreement. Subsequently, five additional states joined the Term Sheet, including two states that were found to have not diligently enforced their qualifying statutes, some on terms that were marginally more favorable to the PMs than those of the original signatories. The parties to the Term Sheet represent an allocable share of 49.87%. As a result of meeting the performance requirements associated with the Term Sheet, RJR Tobacco and Santa Fe, collectively, recognized credits of $69 million and $66 million for the three months ended March 31, 2016 and 2015, respectively. Credits recognized in the three months ended March 31, 2016 include the benefit of the additional credits received as a result of the Lorillard Tobacco Merger. In September 2013, an arbitration panel ruled six states had not diligently enforced their qualifying statutes in 2003 related to the NPM Adjustment. Certain findings by the arbitration panel against four of these states are currently in litigation and as such, the full amount of recovery from these states is uncertain. For the amounts that were certain and estimable, RJR Tobacco and Santa Fe, collectively, recognized $70 million as a reduction of cost of products sold in the quarter ended March 31, 2015. No comparable amounts were recognized in the quarter ended March 31, 2016. In October 2015, RJR Tobacco, SFNTC and certain other PMs entered into a settlement agreement, referred to as the NY Settlement Agreement, with the State of New York to settle certain claims related to the NPM Adjustment. The NY Settlement Agreement resolved NPM Adjustment claims related to payment years from 2004 through 2014, providing RJR Tobacco and SFNTC, collectively, with credits, of approximately $290 million, plus interest, that will be recognized through 2018 subject to meeting various performance obligations. These credits will be applied against annual payments under the MSA over a four-year period, commencing with the annual MSA payment due in April 2016. In addition, the NY Settlement Agreement put in place a new method to determine future adjustments from 2015 forward as to New York. RJR Tobacco and Santa Fe, collectively, recognized credits of $22 million as a reduction to costs of products sold for the three months ended March 31, 2016. 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 as a mark-to-market adjustment, referred to as an MTM adjustment, to the extent such net gains and losses exceed 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 2016 2015 2016 2015 Service cost $ 4 $ 6 $ 1 $ 1 Interest cost 74 64 13 12 Expected return on plan assets (93 ) (88 ) (3 ) (3 ) Amortization of prior service cost (credit) 1 1 (11 ) (11 ) Total benefit income $ (14 ) $ (17 ) $ — $ (1 ) RAI disclosed in its financial statements for the year ended December 31, 2015, that it expects to contribute $335 million to its pension plans in 2016, of which $327 million was contributed during the first three months of 2016. Fair Value Measurement RAI determines the fair value of assets and liabilities 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 Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board, referred to as FASB, issued an Accounting Standards Update, referred to as ASU, 2015-03 Simplifying the Presentation of Debt Issuance Costs. In April 2015, the FASB issued ASU 2015-05 Internal Use Software Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers, In November 2015, the FASB issued ASU 2015-17 Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU 2016-01 Recognition and Measurement of Financial Assets and Liabilities, In February 2016, the FASB issued ASU 2016-02 Leases Revenue from Contracts with Customers. In March 2016, the FASB issued ASU 2016-09 Improvements to Employee Share-Based Payment Accounting,

Sale of International Rights to

Sale of International Rights to the Natural American Spirit Brand	3 Months Ended
	Mar. 31, 2016
Sale Of International Brand Rights [Abstract]
Sale of International Rights to the Natural American Spirit Brand	Note 2 — Sale of International Rights to the NATURAL AMERICAN SPIRIT Brand On January 13, 2016, RAI, through the Sellers, completed the sale of the international rights to the NATURAL AMERICAN SPIRIT brand name and associated trademarks, along with the international companies that distributed and marketed the brand outside the United States to JTI Holding in an all-cash transaction of approximately $5 billion. The purchase agreement, dated as of September 28, 2015, between the Sellers and JTI Holding, referred to as the 2015 Purchase Agreement, contains customary representations, warranties and covenants made by the Sellers and JTI Holding, and, for certain provisions, RAI and JTI, and contains indemnification provisions, subject to customary limitations, with respect to these and other matters, including potential litigation relating to specified claims. The 2015 Purchase Agreement also contains a guarantee of Sellers’ obligations by RAI, and a guarantee of JTI Holding’s obligations by JTI. Further, in the 2015 Purchase Agreement, RAI has agreed not to, and agreed to cause its controlled affiliates not to, engage in the business of producing, selling, distributing and developing natural, organic and additive-free combustible tobacco cigarettes and roll-your-own or make-your-own tobacco products outside of the United States, and JTI has agreed not to, and agreed to cause its controlled affiliates not to, engage in the conduct of such business in the United States, in each case, for five years following the closing of the transaction. The transaction did not include the rights to the NATURAL AMERICAN SPIRIT brand name and associated trademarks in the U.S. market, U.S. duty-free locations, and U.S. territories or in U.S. military outlets, all of which have been retained by SFNTC. With this transaction completed, the international rights to nearly all of RAI’s operating companies’ cigarette trademarks are now owned by international tobacco companies. The components of the pre-tax gain, which was recorded in the first quarter of 2016, were as follows: Purchase price $ 5,015 Net assets and liabilities divested (154 ) Gain on divestiture $ 4,861

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value	Note 3 — Fair Value Fair Value of Financial Assets Financial assets carried at fair value were as follows: March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash equivalents $ 4,394 $ — $ — $ 4,394 $ 2,454 $ — $ — $ 2,454 Short-term investments: Corporate debt securities — — — — — 96 — 96 U.S. Governmental agency obligations — — — — — 43 — 43 Commercial paper — — — — — 10 — 10 Auction rate securities — — 14 14 — — — — Other assets and deferred charges: Auction rate securities — — 59 59 — — 79 79 Mortgage-backed security — — 10 10 — — 10 10 Marketable equity security — — — — 1 — — 1 Interest rate swaps — — — — — 53 — 53 There were no transfers between the levels during the three months ended March 31, 2016, or during the year ended December 31, 2015. As of December 31, 2015, RAI’s short-term investments included corporate debt securities, U.S. Government agency obligations and commercial paper. The fair value of these investments, classified as Level 2, utilized quoted prices for identical assets in less active markets or quoted prices for similar assets in active markets. All investments classified as short-term investments as of December 31, 2015, were sold or matured during the first quarter of 2016. As of December 31, 2015, RAI had 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. During the first quarter of 2016, the auction rate securities related to financial insurance companies, and substantially all of the marketable equity security were sold, and one of the auction rate securities linked to corporate credit risk was reclassified to short-term as its maturity is within one year as of March 31, 2016. Any 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, 2016, and consolidated balance sheet as of December 31, 2015. 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 at each of March 31, 2016 and December 31, 2015, 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. No other-than-temporary losses were recognized in the three months ended March 31, 2016 and 2015 related to these investments. 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, corporations in the 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 remaining auction rate securities are 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 2017, 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 at each of March 31, 2016, and December 31, 2015. At December 31, 2015, the fair value of the interest rate swaps, classified as Level 2, utilized a market approach model using the notional amount of the interest rate swaps and observable inputs of time to maturity and market interest rates. These interest rate swaps were terminated during the first quarter of 2016, as described below. Financial assets classified as Level 3 investments were as follows: March 31, 2016 December 31, 2015 Cost Gross Unrealized Loss Estimated Fair Value Cost Gross Unrealized Loss Estimated Fair Value Auction rate securities $ 95 $ (22 ) $ 73 $ 99 $ (20 ) $ 79 Mortgage-backed security 15 (5 ) 10 16 (6 ) 10 $ 110 $ (27 ) $ 83 $ 115 $ (26 ) $ 89 Fair Value of Debt The estimated fair value of RAI’s outstanding consolidated debt, in the aggregate, was $15.2 billion and $18.2 billion, with an effective average annual interest rate of approximately 4.9% and 4.6% as of March 31, 2016 and December 31, 2015, 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. As part of the Lorillard Tobacco Merger, RJR Tobacco assumed fixed to floating interest rate swap agreements that Lorillard Tobacco designated as fair value hedges of its 8.125% notes due in 2019. Under the swap agreements, RJR Tobacco received interest based on a fixed rate of 8.125% and paid interest based on a floating one-month LIBOR rate plus a spread of 4.625%. The net settlement reduced interest expense by approximately $3 million for the three months ended March 31, 2016. In the first quarter of 2016, RJR Tobacco terminated these interest rate swap agreements and received $66 million in cash. The fair value adjustment of the notes designated as the hedging instrument is being amortized as a reduction of interest expense over the expected remaining life of the notes. As of March 31, 2016, RAI and RJR Tobacco had no outstanding interest rate swaps. See note 9 for additional information relating to the interest rate swap agreements.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2016
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 Tobacco Santa Fe American Snuff All Other Consolidated Balance as of December 31, 2015 Goodwill $ 17,069 $ 197 $ 2,501 $ 17 $ 19,784 Less: accumulated impairment charges (3,763 ) — (28 ) — (3,791 ) $ 13,306 $ 197 $ 2,473 $ 17 $ 15,993 Balance as of March 31, 2016 Goodwill $ 17,069 $ 197 $ 2,501 $ 17 $ 19,784 Less: accumulated impairment charges (3,763 ) — (28 ) — (3,791 ) $ 13,306 $ 197 $ 2,473 $ 17 $ 15,993 The carrying amounts and changes therein of trademarks and other intangible assets by segment were as follows: RJR Tobacco Santa Fe American Snuff Consolidated Trademarks Other Trademarks Trademarks Trademarks Other Indefinite-lived: Balance as of December 31, 2015 $ 27,826 $ 87 $ 136 $ 1,136 $ 29,098 $ 87 Balance as of March 31, 2016 $ 27,826 $ 87 $ 136 $ 1,136 $ 29,098 $ 87 Finite-lived: Balance as of December 31, 2015 $ 17 $ 259 $ — $ 6 $ 23 $ 259 Amortization (2 ) (4 ) — — (2 ) (4 ) Balance as of March 31, 2016 $ 15 $ 255 $ — $ 6 $ 21 $ 255 Details of finite-lived intangible assets were as follows: March 31, 2016 December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer lists $ 240 $ (10 ) $ 230 $ 240 $ (7 ) $ 233 Contract manufacturing agreements 151 (140 ) 11 151 (139 ) 12 Trademarks 124 (103 ) 21 124 (101 ) 23 Other intangibles 15 (1 ) 14 15 (1 ) 14 $ 530 $ (254 ) $ 276 $ 530 $ (248 ) $ 282 The estimated remaining amortization expense associated with finite-lived intangible assets is expected to be as follows: Year Amount Remainder of 2016 $ 17 2017 23 2018 22 2019 16 2020 15 Thereafter 183 $ 276

Income Per Share

Income Per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Income Per Share	Note 5 — Income Per Share The components of the calculation of income per share were as follows: For the Three Months Ended March 31, 2016 2015 Net income $ 3,565 $ 389 Basic weighted average shares, in thousands 1,427,448 1,063,053 Effect of dilutive potential shares: Restricted stock units 3,621 3,941 Diluted weighted average shares, in thousands 1,431,069 1,066,994

Inventories

Inventories	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Note 6 — Inventories The major components of inventories were as follows: March 31, 2016 December 31, 2015 Leaf tobacco $ 1,417 $ 1,495 Other raw materials 100 110 Work in process 79 88 Finished products 195 173 Other 23 22 Total 1,814 1,888 LIFO allowance (156 ) (154 ) $ 1,658 $ 1,734 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, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Note 7 — Income Taxes The provision for income taxes was as follows: For the Three Months Ended March 31, 2016 2015 Provision for income taxes $ 2,154 $ 231 Effective tax rate 37.7 % 37.3 % The effective tax rate for the three months ended March 31, 2016, was primarily impacted by an increase in tax attributable to the sale of the international rights to the NATURAL AMERICAN SPIRIT brand name and associated trademarks, along with the international companies that distributed and marketed the brand outside the United States. The effective tax rate for the three months ended March 31, 2015, was unfavorably impacted by an increase in tax attributable to nondeductible costs related to the Merger, partially offset by a decrease in tax attributable to a reduction in state income taxes. 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.

Credit Agreement

Credit Agreement	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Credit Agreement	Note 8 — 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. In October 2015, the requisite lenders agreed, at RAI’s request, to extend the maturity date of the Credit Agreement by 12 months to December 18, 2020. Subject to the terms and conditions stated therein, the maturity date of the Credit Agreement may be extended further, upon the request of RAI and with the consent of the requisite lenders, an additional 12 months to December 18, 2021. 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. The Credit Agreement contains certain customary restrictive covenants, and two financial covenants – a consolidated leverage ratio covenant and a consolidated interest coverage ratio covenant. 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 any maturing commercial paper. 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, as defined in the Credit Agreement, have guaranteed, on an unsecured basis, RAI’s obligations under the Credit Agreement. Under the Credit Agreement, any new Material Subsidiary of RAI must be added as a guarantor of the Credit Agreement. As of March 31, 2016, there were no outstanding borrowings and $8 million of letters of credit outstanding under the Credit Agreement.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Long-Term Debt	Note 9 — Long-Term Debt Tender Offer and Redemption RAI’s previously announced cash tender offer for up to $2.81 billion aggregate purchase price (excluding accrued and unpaid interest to, but not including, the settlement date of February 22, 2016, and excluding related fees and expenses), referred to as the Tender Cap, for certain of its outstanding notes listed in the table below, collectively referred to as the Tender Notes, expired as of 11:59 p.m., New York City time on March 3, 2016. RAI accepted for purchase $2.69 billion in aggregate principal amount of Tender Notes validly tendered and not validly withdrawn on or prior to 5 p.m., New York City time, on February 18, 2016, referred to as the Early Tender Date. On February 22, 2016, RAI paid, with cash on hand, aggregate total consideration of $2.81 billion (including the early tender premium of $30 per $1,000 principal amount of Tender Notes of approximately $118 million, but excluding accrued and unpaid interest) for such Tender Notes accepted for purchase. In addition, RAI recognized $22 million of unamortized discount and unamortized debt issuance costs related to the Tender Notes as a loss on early extinguishment of debt. As described in the Offer to Purchase, dated February 4, 2016, and the related Letter of Transmittal, as amended, collectively referred to as the Tender Offer Documents, RAI accepted for purchase 100% of the Tender Notes validly tendered and not validly withdrawn for the series listed in the table below in acceptance priority levels 1 through 3. Due to oversubscription, RAI accepted for purchase Tender Notes validly tendered and not validly withdrawn for the series listed in the table below in acceptance priority level 4 on a pro rata basis in accordance with the proration procedures described in the Tender Offer Documents. RAI did not accept for purchase any of the Tender Notes for the series listed in the table below in acceptance priority levels 5 through 7. Title of Security Acceptance Priority Level Principal Tendered at Expiration Principal Amount of Tender Notes Accepted for Purchase Percentage of Outstanding Tender Notes Purchased 4.750% Senior Notes due 2042 1 $ 827 $ 827 82.71% 3.250% Senior Notes due 2022 2 942 942 85.59% 3.750% Senior Notes due 2023 3 444 444 93.76% 3.250% Senior Notes due 2020 (1) 4 1,039 479 38.34% 4.000% Senior Notes due 2022 5 766 — 0.00% 4.450% Senior Notes due 2025 6 1,773 — 0.00% 4.850% Senior Notes due 2023 7 416 — 0.00% (1) Series prorated Since holders of Tender Notes validly tendered and did not validly withdraw Tender Notes for which the aggregate consideration payable exceeded the Tender Cap on or prior to the Early Tender Date, RAI did not accept for purchase any additional tenders of Tender Notes made after the Early Tender Date. 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. In October 2012, RAI completed the sale of notes that had been forecasted and the 3.250% Tender Notes due 2022 and the 4.750% Tender Notes due 2042 were designated as the hedged instruments under these derivative contracts. The forward starting interest rate contracts were immediately terminated and the effective portion of the loss incurred was recorded in accumulated other comprehensive loss in the consolidated balance sheets and was being amortized over the life of the related debt. The amount of 3.250% Tender Notes due 2022 and the 4.750% Tender Notes due 2042 repurchased in the tender offer exceeded the original notional amount of the forward starting interest rate contracts and, accordingly, the remaining unamortized loss related to the forward starting interest rate contracts of $16 million was recognized. The 3.750% Tender Notes due 2023 had a carrying value that exceeded face value as this debt was assumed in the Lorillard Tobacco Merger and recorded at fair value in purchase accounting. Approximately 94% of this fair value adjustment, or $11 million, which represents the proportional amount of Tender Notes repurchased in this series, was recognized as part of the loss on early extinguishment of debt. Pursuant to its previously announced redemption call, on March 5, 2016, RAI redeemed all $700 million outstanding aggregate principal amount of its 6.750% Senior Notes due 2017 and all $250 million outstanding aggregate principal amount of its 7.750% Senior Notes due 2018. In connection with the redemption, RAI recorded a loss on early extinguishment of debt of $90 million which consisted of $88 million in make-whole premiums paid to noteholders as part of the redemption, and $2 million for unamortized discount and unamortized debt issuance costs related to the redeemed notes. In 2009, RAI and RJR entered into offsetting floating to fixed interest rate swap agreements with the same financial institution that held certain fixed to floating interest rate swaps for the same notional amount. The swaps were designated as fair value hedges. In September 2011, the original and offsetting interest rate swap agreements were terminated with the carrying value of the hedged debt reflecting a fair value adjustment treated as a premium, at the date of termination. At that point, RAI began amortizing the fair value adjustment. As of December 31, 2015, the $700 million of 6.750% notes due 2017 represented the remaining debt that had been hedged with these interest rate swap agreements. Upon the redemption of these notes, the remaining unamortized fair value adjustment for the terminated swaps of $25 million was recognized, and accordingly reduced the loss on early extinguishment of debt. In the aggregate, expenses related to the cash tender offer and redemption of approximately $239 million, which included legal and bank fees of approximately $7 million, were recognized in other (income) expense, net in the condensed consolidated statements of income (unaudited) for the three months ended March 31, 2016. RAI and RJR Tobacco Total Long-Term Debt RAI’s and RJR Tobacco’s long-term debt is as follows: March 31, 2016 December 31, 2015 RAI 2.300% notes due 2017 $ 447 $ 447 2.300% notes due 2018 1,250 1,250 3.250% notes due 2020 771 1,250 3.250% notes due 2022 158 1,100 3.500% notes due 2016 415 415 3.750% notes due 2023 30 474 4.000% notes due 2022 1,000 1,000 4.450% notes due 2025 2,500 2,500 4.750% notes due 2042 173 1,000 4.850% notes due 2023 550 550 5.700% notes due 2035 750 750 5.850% notes due 2045 2,250 2,250 6.150% notes due 2043 550 550 6.750% notes due 2017 — 700 6.875% notes due 2020 641 641 7.000% notes due 2041 240 240 7.250% notes due 2037 450 450 7.750% notes due 2018 — 250 8.125% notes due 2019 * 669 669 8.125% notes due 2040 237 237 Total principal 13,081 16,723 Fair value adjustments 325 348 Unamortized discounts (29 ) (37 ) Unamortized debt issuance costs (74 ) (92 ) Total RAI long-term debt at carrying value $ 13,303 $ 16,942 RJR Tobacco 2.300% notes due 2017 $ 53 $ 53 3.500% notes due 2016 85 85 3.750% notes due 2023 26 26 6.875% notes due 2020 109 109 7.000% notes due 2041 10 10 8.125% notes due 2019* 81 81 8.125% notes due 2040 13 13 Total principal 377 377 Fair value adjustments 36 36 Total RJR Tobacco long-term debt at carrying value $ 413 $ 413 Total long-term debt at carrying value $ 13,716 $ 17,355 Less current maturities of long-term debt at carrying value 503 506 Total long-term debt (less current maturities) at carrying value $ 13,213 $ 16,849 * The interest rate payable on these notes generally is subject to adjustment from time to time (as detailed in the form of these notes) based upon the credit rating assigned to these notes, provided that in no event will (1) the interest rate for these notes be reduced below 8.125% or (2) the total increase in the interest rate on these notes exceed 2.0% above 8.125%. As of March 31, 2016, the maturities of RAI’s and RJR Tobacco’s notes, excluding fair value adjustments and unamortized discounts and debt issuance costs, were as follows: Year RAI RJR Tobacco Total 2016 $ 415 $ 85 $ 500 2017 447 53 500 2018 1,250 — 1,250 2019 669 81 750 2020 1,412 109 1,521 2022 and thereafter 8,888 49 8,937 Total principal maturities $ 13,081 $ 377 $ 13,458 Interest Rate Swap Agreements Termination In the first quarter of 2016, RJR Tobacco terminated the interest rate swap agreements assumed in the Lorillard Tobacco Merger. A fair value adjustment of $7 million for the 8.125% notes due 2019 at the date of termination is being amortized as a reduction of interest expense over the expected remaining life of the notes. See note 3 for additional information on interest rate management.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 10 — Commitments and Contingencies Tobacco Litigation — General Introduction Litigation, claims, and other legal proceedings relating to the use of, exposure to, or purchase of tobacco products are pending or may be instituted in the future against RJR Tobacco (including as successor by merger to Lorillard Tobacco), American Snuff Co., SFNTC, RJR Vapor, RAI, Lorillard, other RAI affiliates, and indemnitees (including B&W), sometimes referred to collectively as Reynolds Defendants. These pending legal proceedings include claims relating to cigarette products manufactured by RJR Tobacco, Lorillard Tobacco or certain of their affiliates or indemnitees, smokeless tobacco products manufactured by American Snuff Co., and e-cigarette products manufactured on behalf of and marketed by RJR Vapor. A discussion of the legal proceedings relating to cigarette products (and e-cigarettes) is set forth below under the heading “— Litigation Affecting the Cigarette Industry.” All of the references under that heading relate to tobacco-related litigation, smoking and health litigation and other similar references are references to legal proceedings relating to cigarette products or e-cigarettes, as the case may be, and are not references to legal proceedings involving smokeless tobacco products, and case numbers under that heading include only cases involving cigarette products and e-cigarettes. The legal proceedings relating to the smokeless tobacco products manufactured by American Snuff Co. are discussed separately under the heading “— Smokeless Tobacco Litigation” below. In connection with the B&W business combination, RJR Tobacco undertook certain indemnification obligations with respect to B&W and its affiliates, including its indirect parent, BAT. See “— Litigation Affecting the Cigarette Industry – Overview – Introduction” below. In connection with the Merger and Divestiture, as applicable, RAI and RJR Tobacco undertook certain indemnification obligations. See “— Litigation Affecting the Cigarette Industry – Overview – Introduction,” “— Other Contingencies – Imperial Sub Indemnity,” and “— Other Contingencies – Loews Indemnity” below. In addition, in connection with the sale of the non-U.S. operations and business of the NATURAL AMERICAN SPIRIT brand, the Sellers have agreed to indemnify the buyer for certain claims. See “— Other Contingencies – JTI Indemnities” below. Certain Terms and Phrases Certain terms and phrases used in this disclosure may require some explanation. The term “judgment” or “final judgment” refers to the final decision of the court resolving the dispute and determining the rights and obligations of the parties. At the trial court level, for example, a final judgment generally is entered by the court after a jury verdict and after post-verdict motions have been decided. In most cases, the losing party can appeal a verdict only after a final judgment has been entered by the trial court. The term “damages” refers to the amount of money sought by a plaintiff in a complaint, or awarded to a party by a jury or, in some cases, by a judge. “Compensatory damages” are awarded to compensate the prevailing party for actual losses suffered, if liability is proved. In cases in which there is a finding that a defendant has acted willfully, maliciously or fraudulently, generally based on a higher burden of proof than is required for a finding of liability for compensatory damages, a plaintiff also may be awarded “punitive damages.” Although damages may be awarded at the trial court stage, a losing party generally may be protected from paying any damages until all appellate avenues have been exhausted by posting a supersedeas bond. The amount of such a bond is governed by the law of the relevant jurisdiction and generally is set at the amount of damages plus some measure of statutory interest, modified at the discretion of the appropriate court or subject to limits set by court or statute. The term “per curiam” refers to a decision entered by an appellate court that is not signed by an individual judge. In most cases, it is used to indicate that the opinion entered is a brief announcement of the court’s decision and is not accompanied by an opinion explaining the court’s reasoning. The term “settlement” refers to certain types of cases in which cigarette manufacturers, including RJR Tobacco, B&W and Lorillard Tobacco, have agreed to resolve disputes with certain plaintiffs without resolving the cases through trial. The principal terms of certain settlements entered into by RJR Tobacco, B&W and Lorillard Tobacco are explained below under “— Accounting for Tobacco-Related Litigation Contingencies.” Theories of Recovery The plaintiffs seek recovery on a variety of legal theories, including negligence, strict liability in tort, design defect, failure to warn, fraud, misrepresentation, violations of unfair and deceptive trade practices statutes, conspiracy, medical monitoring and violations of state and federal antitrust laws. In certain of these cases, the plaintiffs claim that cigarette smoking exacerbated injuries caused by exposure to asbestos or, in the case of certain claims asserted against Lorillard Tobacco, that they were injured by exposure to filters containing asbestos used in one cigarette brand for roughly four years before 1957, the latter cases referred to as Filter Cases. The plaintiffs seek various forms of relief, including compensatory and, where available, punitive damages, treble or multiple damages and statutory damages and penalties, creation of medical monitoring and smoking cessation funds, disgorgement of profits, and injunctive and other equitable relief. Although alleged damages often are not determinable from a complaint, and the law governing the pleading and calculation of damages varies from jurisdiction to jurisdiction, compensatory and punitive damages have been specifically pleaded in a number of cases, sometimes in amounts ranging into the hundreds of millions and even billions of dollars. Defenses The defenses raised by Reynolds Defendants include, where applicable and otherwise appropriate, preemption by the Federal Cigarette Labeling and Advertising Act of some or all claims arising after 1969, or by the Comprehensive Smokeless Tobacco Health Education Act for claims arising after 1986, the lack of any defect in the product, assumption of the risk, contributory or comparative fault, lack of proximate cause, remoteness, lack of standing, statutes of limitations or repose and others. RAI, RJR and Lorillard have asserted additional defenses, including jurisdictional defenses, in many of the cases in which they are named. Accounting for Tobacco-Related Litigation Contingencies In accordance with GAAP, RAI and its subsidiaries record any loss concerning litigation at such time as an unfavorable outcome becomes probable and the amount can be reasonably estimated on an individual case-by-case basis. For the reasons set forth below, RAI’s management continues to conclude that the loss of any particular pending smoking and health tobacco litigation claim against RJR Tobacco, Lorillard Tobacco or their affiliates or indemnitees, or the loss of any particular claim concerning the use of smokeless tobacco products against American Snuff Co., when viewed on an individual basis, is not probable, except for certain Engle Reynolds Defendants believe that they have valid defenses to the smoking and health tobacco litigation claims against them, as well as valid bases for appeal of adverse verdicts against them. Reynolds Defendants have, through their counsel, filed pleadings and memoranda in pending smoking and health tobacco litigation that set forth and discuss a number of grounds and defenses that they and their counsel believe have a valid basis in law and fact. With the exception of the Engle Engle RAI’s condensed consolidated balance sheet (unaudited) as of March 31, 2016, contains accruals for the following Engle Hiott Starr-Blundell Clayton Ward Hallgren Cohen Sikes Thibault Buonomo, Cheeley Ciccone. Ballard U.S. Department of Justice Sateriale Sateriale Feinman It is the policy of RJR Tobacco and its affiliates to defend tobacco-related litigation claims vigorously; generally, RJR Tobacco and its affiliates and indemnitees do not settle such claims. However, RJR Tobacco and its affiliates may enter into settlement discussions in some cases, if they believe it is in their best interests to do so. Exceptions to this general approach include actions taken pursuant to “offer of judgment” statutes, as described below in “ — Litigation Affecting the Cigarette Industry—Overview,” and Filter Cases, as described below in “— Litigation Affecting the Cigarette Industry—Filter Cases,” as well as other historical examples discussed below. With respect to smoking and health tobacco litigation claims, the only significant settlements reached by RJR Tobacco, Lorillard Tobacco and B&W involved: · the State Settlement Agreements and the funding by various tobacco companies of a $5.2 billion trust fund contemplated by the MSA to benefit tobacco growers; · the original Broin Broin II · most of the Engle The circumstances surrounding the State Settlement Agreements and the funding of a trust fund to benefit the tobacco growers are readily distinguishable from the current categories of smoking and health cases involving Reynolds Defendants. The claims underlying the State Settlement Agreements were brought on behalf of the states, a unique set of plaintiffs not involved in smoking and health cases now pending against RJR Tobacco, Lorillard Tobacco, or their affiliates and indemnitees. The states sought to recover funds paid for health care and medical and other assistance to state citizens suffering from diseases and conditions allegedly related to tobacco use. The State Settlement Agreements settled all the health-care cost recovery actions brought by, or on behalf of, the settling jurisdictions and contain releases of various additional present and future claims. In accordance with the MSA, various tobacco companies agreed to fund a $5.2 billion trust fund to be used to address the possible adverse economic impact of the MSA on tobacco growers. A discussion of the State Settlement Agreements, and a table depicting the related payment schedule, is set forth below under “— Litigation Affecting the Cigarette Industry — Health-Care Cost Recovery Cases.” As with claims that were resolved by the State Settlement Agreements, the other cases settled by RJR Tobacco can be distinguished from existing cases pending against RJR Tobacco, Lorillard Tobacco and their affiliates and indemnitees. The original Broin Broin II The federal Engle Engle Engle Engle Engle Engle Engle Engle In 2010, RJR Tobacco entered into a comprehensive agreement with the Canadian federal, provincial and territorial governments, which resolved all civil claims related to the movement of contraband tobacco products in Canada during the period 1985 through 1999 that the Canadian governments could assert against RJR Tobacco and its affiliates. These claims were separate from any smoking and health tobacco litigation. Also, in 2004, RJR Tobacco and B&W separately settled the antitrust case DeLoach v. Philip Morris Cos., Inc., DeLoach Finally, as discussed under “— Litigation Affecting the Cigarette Industry — State Settlement Agreements—Enforcement and Validity; Adjustments,” RJR Tobacco, B&W and Lorillard Tobacco each has settled certain cases brought by states concerning the enforcement of State Settlement Agreements. Despite legal defenses believed to be valid, these cases were settled to avoid further contentious litigation with the states involved. These enforcement actions involve alleged breaches of State Settlement Agreements based on specific actions taken by particular defendants. Accordingly, any future enforcement actions involving State Settlement Agreements will be reviewed by RJR Tobacco on the merits and should not be affected by the settlement of prior enforcement cases. American Snuff Co. also believes that it has valid defenses to the smokeless tobacco products litigation against it. American Snuff Co. asserted and will continue to assert some or all of these defenses in each case at the time and in the manner deemed appropriate by American Snuff Co. and its counsel. No verdict or judgment has been returned or entered against American Snuff Co. on any claim for personal injuries allegedly resulting from the use of smokeless tobacco products. American Snuff Co. intends to defend vigorously all smokeless tobacco litigation claims asserted against it. No liability for pending smokeless tobacco litigation was recorded in RAI’s condensed consolidated balance sheet (unaudited) as of March 31, 2016. Cautionary Statement Even though RAI’s management continues to believe that the loss of particular pending smoking and health tobacco litigation claims against Reynolds Defendants, or the loss of any particular case concerning the use of smokeless tobacco against American Snuff Co., when viewed on an individual case-by-case basis, is not probable or estimable (except for certain Engle Although RAI and its subsidiaries believe that they have valid bases for appeals of adverse verdicts in their pending cases and valid defenses to all actions and intend to defend them vigorously as described above, it is possible that there could be further adverse developments in pending cases, and that additional cases could be decided unfavorably against Reynolds Defendants. Determinations of liability or adverse rulings in such cases or in similar cases involving other cigarette manufacturers as defendants, even if such judgments are not final, could have a material adverse effect on the litigation against Reynolds Defendants and could encourage the commencement of additional tobacco-related litigation. Reynolds Defendants also may enter into settlement discussions in some cases, if they believe it is in their best interests to do so. In addition, a number of political, legislative, regulatory and other developments relating to the tobacco industry and cigarette smoking have received wide media attention. These developments may negatively affect the outcomes of tobacco-related legal actions and encourage the commencement of additional similar litigation. Although it is impossible to predict the outcome of such events on pending litigation and the rate new lawsuits may be filed against Reynolds Defendants, a significant increase in litigation or in adverse outcomes for tobacco defendants, or difficulties in obtaining the bonding required to stay execution of judgments on appeal, could have a material adverse effect on any or all of these entities. Moreover, notwithstanding the quality of defenses available to Reynolds Defendants in litigation matters, it is possible that RAI’s results of operations, cash flows or financial position could be materially adversely affected by the ultimate outcome of certain pending litigation or future claims against Reynolds Defendants. Similarly, smokeless tobacco litigation is subject to many uncertainties. Notwithstanding the quality of defenses available to American Snuff Co., it is possible that RAI’s results of operations, cash flows or financial position could be materially adversely affected by the ultimate outcome of certain pending litigation or future claims against American Snuff Co. Litigation Affecting the Cigarette Industry Table of Contents Page Overview 23 Individual Smoking and Health 25 West Virginia IPIC 26 Engle and Engle Progeny Cases 27 Broin II 43 Class Actions 43 Filter Cases 47 Health-Care Cost Recovery 48 State Settlement Agreements – Enforcement and Validity; Adjustments 52 Other Litigation and Developments 57 Overview Introduction. In connection with the B&W business combination, RJR Tobacco agreed to indemnify B&W and its affiliates against, among other things, certain litigation liabilities, costs and expenses incurred by B&W or its affiliates arising out of the U.S. cigarette and tobacco business of B&W. Also, as a result of the Lorillard Tobacco Merger, Lorillard Tobacco was merged into RJR Tobacco with RJR Tobacco being the surviving entity, Lorillard Tobacco ceasing to exist, and RJR Tobacco succeeding to Lorillard Tobacco’s liabilities, including Lorillard Tobacco’s litigation liabilities, costs and expenses. Although Lorillard Tobacco no longer exists as a result of the Lorillard Tobacco Merger, it will remain as a named party in cases pending on the date of the Lorillard Tobacco Merger until courts grant motions to substitute RJR Tobacco for Lorillard Tobacco or the claims are dismissed. The cases discussed below include cases brought against RJR Tobacco, Lorillard Tobacco and their affiliates and indemnitees, including RAI, RJR, B&W and Lorillard. Cases brought against SFNTC and RJR Vapor also are discussed. During the first quarter of 2016, 21 tobacco-related cases were served against Reynolds Defendants. On March 31, 2016, there were, subject to the exclusions described immediately below, 275 cases pending against Reynolds Defendants: 258 in the United States and 17 in Canada, as compared with 180 total cases on March 31, 2015. Of the U.S. cases pending on March 31, 2016, 29 are pending in federal court, 228 in state court and one in tribal court, primarily in the following states: Maryland (44 cases); Illinois (36 cases); Florida (32 cases); New York (20 cases); Missouri (19 cases); Delaware (14 cases); and California (13 cases). The U.S. case number excludes the approximately 564 individual smoker cases pending in West Virginia state court as a consolidated action, 2,963 Engle Broin II The following table lists the categories of the U.S. tobacco-related cases pending against Reynolds Defendants as of March 31, 2016, compared with the number of cases pending against Reynolds Defendants as of December 31, 2015, as reported in RAI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on February 11, 2016, and a cross-reference to the discussion of each case type. Case Type U.S. Case Numbers as of March 31, 2016 Change in Number of Cases Since December 31, 2015 Increase/(Decrease) Individual Smoking and Health 119 1 West Virginia IPIC (Number of Plaintiffs)* 1 (approx. 564) No change Engle Progeny (Number of Plaintiffs)** 2,963 (approx. 3,851) (148) (195) Broin 2,488 (11) Class Action 33 5 Filter Cases 61 (3) Health-Care Cost Recovery 2 No change State Settlement Agreements—Enforcement and Validity; Adjustments 28 1 Other Litigation and Developments 14 3 * Includes as one case the approximately 564 cases pending as a consolidated action In Re: Tobacco Litigation Individual Personal Injury Cases West Virginia IPIC West Virginia IPIC ** The Engle The Florida state court class-action case, Engle v. R. J. Reynolds Tobacco Co. Engle Engle Engle Engle Engle Scheduled Trials Trial Results Engle Engle Engle Engle Engle In November 1998, the major U.S. cigarette manufacturers, including RJR Tobacco, B&W and Lorillard Tobacco, entered into the MSA with 46 U.S. states, Washington, D.C. and certain U.S. territories and possessions. These cigarette manufacturers previously settled four other cases, brought on behalf of Mississippi, Florida, Texas and Minnesota, by separate agreements with each state. These State Settlement Agreements: · settled all health-care cost recovery actions brought by, or on behalf of, the settling jurisdictions; · released the major U.S. cigarette manufacturers from various additional present and potential future claims; · imposed future payment obligations in perpetuity on RJR Tobacco, B&W, Lorillard Tobacco and other major U.S. cigarette manufacturers; and · placed significant restrictions on their ability to market and sell cigarettes and smokeless tobacco products. Payments under the State Settlement Agreements are subject to various adjustments for, among other things, the volume of cigarettes sold, relative market share, operating profit and inflation. See “— Health-Care Cost Recovery Cases — State Settlement Agreements” below for a detailed discussion of the State Settlement Agreements, including RAI’s operating subsidiaries’ monetary obligations under these agreements. RJR Tobacco records the allocation of settlement charges as products are shipped. Scheduled Trials. Trial schedules are subject to change, and many cases are dismissed before trial. There are 36 cases, exclusive of Progeny cases, scheduled for trial as of March 31, 2016 through March 31, 2017 , for RJR Tobacco, B&W, Lorillard Tobacco or their affiliates and indemnitees: two non-smoking and health cases, three individual smoking and health cases, 24 Filter Cases and seven cases. There are approximately 105 Progeny cases against RJR Tobacco, B&W and/or Lorillard Tobacco set for trial through March 31, 2017, but it is not known how many of these cases will actually be tried. Trial Results. From January 1, 2013 through March 31, 2016, 122 smoking and health, Progeny and health-care cost recovery cases in which RJR Tobacco, B&W and/or Lorillard Tobacco were defendants were tried, including seven trials for cases where mistrials were declared in the original proceedings. Verdicts in favor of RJR Tobacco, B&W and Lorillard Tobacco and, in some cases, RJR Tobacco, B&W, Lorillard Tobacco and/or other defendants, were returned in 60 cases, including 15 mistrials, tried in Florida (58), West Virginia (1), and California (1). Verdicts in favor of the plaintiffs were returned in 55 cases tried in Florida, and one in California. Four cases in Florida were dismissed during trial. One case in Florida was a retrial only as to the amount of damages. In another case in Florida, the jury entered a partial verdict that did not include compensatory or punitive damages, and post-trial motions are pending. In the first quarter of 2016, nine Engle · In Howles v. R. J. Reynolds Tobacco Co. · In Rounds v. R. J. Reynolds Tobacco Co. · In Ewing v. R. J. Reynolds Tobacco Co · In McCall v. Philip Morris USA Inc. · In Ahrens v. R. J. Reynolds Tobacco Co. · In Elizabeth Smith v. R. J. Reynolds Tobacco Co. · In Gamble v. R. J. Reynolds Tobacco Co. · In Redburn v. R. J. Reynolds Tobacco Co. Ciccone · In Snow v. R. J. Reynolds Tobacco Co. In addition, since the end of the first quarter of 2016, two other Engle · In Davis v. R. J. Reynolds Tobacco Co. · In Dupre v. R. J. Reynolds Tobacco Co. For a detailed description of the above-described cases, see “— Engle Engle In the first quarter of 2016, one non- Engle · In Pooshs v. R. J. Reynolds Tobacco Co. For information on the verdicts in the Engle Engle Engle Engle Engle Date of Verdict Case Name/Type Jurisdiction Verdict August 17, 2006 United States v. Philip Morris USA, Inc. [Governmental Health-Care Cost Recovery] U.S. District Court, District of Columbia (Washington, DC) RJR Tobacco, B&W and Lorillard Tobacco were found liable for civil RICO claims; were enjoined from using certain brand descriptors and from making certain misrepresentations; and were ordered to make corrective communications on five subjects, including smoking and health and addiction, to reimburse the U.S. Department of Justice appropriate costs associated with the lawsuit, and to maintain document web sites. May 26, 2010 Izzarelli v. R. J. Reynolds Tobacco Co. [Individual] U.S. District Court, District of Connecticut, (Bridgeport, CT) $13.76 million in compensatory damages; 58% of fault assigned to RJR Tobacco, which reduced the award to $8.08 million against RJR Tobacco; $3.97 million in punitive damages. September 13, 2013 DeLisle v. A. W. Chesterton Co. [Filter] Circuit Court, Broward County, (Ft. Lauderdale, FL) $8 million in compensatory damages; 44% of fault assigned to Lorillard Tobacco, which reduced the award to $3.52 million against Lorillard Tobacco. July 30, 2014 Major v. Lorillard Tobacco Co. [Individual] Superior Court, Los Angeles County, (Los Angeles, CA) $17.74 million in compensatory damages; 17% of fault assigned to Lorillard Tobacco. July 8, 2015 Larkin v. R. J. Reynolds Tobacco Co. [Individual] Circuit Court, Miami-Dade County, (Miami, FL) $4.96 million in compensatory damages; 62% of fault assigned to RJR Tobacco; $8.5 million in punitive damages. For information on the post-trial status of individual smoking and health cases, the governmental health-care cost recovery case and the Filter Cases, see “— Individual Smoking and Health Cases,” “—Health-Care Cost Recovery Cases – U.S. Department of Justice Case,” and “— Filter Cases,” respectively, below. Individual Smoking and Health Cases As of March 31, 2016, 119 individual cases were pending in the United States against RJR Tobacco, B&W (as RJR Tobacco’s indemnitee), Lorillard Tobacco or all three. This category of cases includes smoking and health cases alleging personal injuries caused by tobacco use or exposure brought by or on behalf of individual plaintiffs based on theories of negligence, strict liability, breach of express or implied warranty, and violations of state deceptive trade practices or consumer protection statutes. The plaintiffs seek to recover compensatory damages, attorneys’ fees and costs, and punitive damages. The category does not include the Broin II, Engle West Virginia IPIC Below is a description of the non- Engle On May 26, 2010, in Izzarelli v. R. J. Reynolds Tobacco Co On July 30, 2014, in Major v. Lorillard Tobacco Co. On July 8, 2015, in Larkin v. R. J. Reynolds Tobacco Co. On February 8, 2016, in Pooshs v. Philip Morris USA, Inc. West Virginia IPIC In re: Tobacco Litigation Individual Personal Injury Cases (Cir. Ct. Ohio County, W. Va., filed beginning in 1999), is a series of roughly 1,200 individual cases asserting claims against Philip Morris USA Inc., Lorillard Tobacco, RJR Tobacco, B&W and The American Tobacco Company based on alleged personal injuries The cases were consolidated for a Phase I trial on various defense conduct issues, to be followed in Phase II by individual trials of remaining claims. On May 15, 2013, the Phase I jury found that defendants’ cigarettes were not defectively designed; defendants’ cigarettes were not defective due to a failure to warn before July 1, 1969; defendants were not negligent, did not breach warranties, and did not engage in conduct warranting punitive damages; and defendants’ ventilated filter cigarettes manufactured and sold between 1964 and July 1, 1969 were defective for a failure to instruct. In November 2014, the West Virginia Supreme Court affirmed the verdict. On June 8, 2015, the U.S. Supreme Court denied the plaintiffs’ petition for writ of certiorari. On the same date, the trial court issued an order finding that only 30 plaintiffs are alleged to have smoked ventilated filter cigarettes in the relevant period. On October 9, 2015, the trial court outlined the procedures it will follow for resolving the claims of the 30 Phase II plaintiffs, which claims will focus on whether plaintiffs blocked cigarette vents and, if so, whether blocking proximately caused their alleged injuries. Five cases have been selected to be the first claims tried, and they are scheduled to be tried beginning on May 1, 2017 . In addition to the foregoing claims, various plaintiffs in 1999 and 2000 asserted claims against retailers and distributors. Those claims were severed and stayed pending the outcome of Phase I. Also, 41 plaintiffs asserted smokeless tobacco claims against various smokeless manufacturers including American Snuff Co. Those claims were severed from IPIC in 2001, and the plaintiffs took no action to prosecute the claims. They have recently sought to activate those claims. The defendants will assert various defenses to all of these claims, including that all of the additional claims were either covered by the Phase I verdict or abandoned. Engle and Engle Progeny Cases In July 1998, trial began in Engle v. R. J. Reynolds Tobacco Co., , On July 14, 2000, the jury in Phase II awarded the class a total of approximately $145 billion in punitive damages, which were apportioned $36.3 billion to RJR Tobacco, $17.6 billion to B&W, and $16.3 billion to Lorillard Tobacco. The defendants appealed. On December 21, 2006, the Florida Supreme Court prospectively decertified the class and set aside the jury’s Phase II punitive damages award. But the court preserved certain of the jury’s Phase I findings, including that cigarettes can cause certain diseases, nicotine is addictive, and defendants placed defective cigarettes on the market, breached duties of care, concealed health-related information, and conspired. The court also authorized former class members to file individual lawsuits within one year, and it stated that the preserved findings would have res judicata In the year after the Florida Supreme Court’s Engle Engle Engle Engle Engle Engle At the beginning of the Engle Engle Engle Engle Hess v. Philip Morris USA Inc. Russo v. Philip Morris USA Inc. Engle Graham v. R. J. Reynolds Tobacco Co. Engle en banc Marotta v. R. J. Reynolds Tobacco Co. Graham Engle Marotta, In June 2009, Florida amended its existing bond cap statute by adding a $200 million bond cap that applied to all Engle Engle During the first quarter of 2015, RJR Tobacco and Lorillard Tobacco, together with Philip Morris USA Inc., tentatively settled virtually all of the Engle pro se Engle One hundred seventeen Engle Engle Hiott Starr-Blundell Clayton Ward Hallgren Cohen Sikes Thibault, Buonomo, Cheeley, Ciccone Hiott Starr-Blundell Clayton Cohen Buonomo Hallgren Sikes, Thibault, Cheeley, Ciccone Plaintiff Case Name RJR Tobacco Allocation of Fault Lorillard Tobacco Allocation of Fault Compensatory Damages (as adjusted) (1) Punitive Damages Appeal Status Hiott 40% — $ 730,000 $ — Florida Supreme Court declined to accept jurisdiction of the case; the deadline to file a petition for writ of certiorari with the U.S. Supreme Court is May 2, 2016 Starr-Blundell 10% — 50,000 — Notice to invoke jurisdiction of Florida Supreme Court pending; stayed pending resolution of Soffer; Soffer Clayton 10% — 60,000 — First DCA affirmed the judgment of the trial court, per curiam; Florida Supreme Court issued order to show cause why it should not accept jurisdiction, quash and remand for reconsideration in light of Soffer Cohen 33.3% — 3,330,000 10,000,000 Florida Supreme Court accepted jurisdiction of the case, quashed the decision being reviewed, and reinstated the jury verdict; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is June 27, 2016 Buonomo 77.5% — 4,060,000 25,000,000 Florida Supreme Court accepted jurisdiction of the case, quashed the decision being reviewed, and reinstated the jury verdict; appeal of the reinstated punitive damages award pending in Fourth DCA; oral argument scheduled for July 19, 2016 Hallgren 25% — 500,000 750,000 Florida Supreme Court declined to accept jurisdiction; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is June 10, 2016 Sikes 51% — 3,520,000 2,000,000 Florida Supreme Court declined to accept jurisdiction of the case; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is May 2, 2016 Thibault 70% — 1,750,000 1,275,000 First DCA affirmed the judgment, per curiam; Florida Supreme Court declined to accept jurisdiction of the case; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is May 2, 2016 Cheeley 50% — 1,500,000 2,000,000 Fourth DCA affirmed judgment of trial court, per curiam; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is April 27, 2016 Ciccone 30% — 960,000 50,000 Remanded to Fifth DCA for further proceedings consistent with Florida Supreme Court's March 24, 2016 opinion; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is June 22, 2016 Totals $ 16,460,000 $ 41,075,000 (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 of $26.9 million. The following chart lists judgments in all other individual Engle Plaintiff Case Name RJR Tobacco Allocation of Fault Lorillard Tobacco Allocation of Fault Compensatory Damages (as adjusted) (1) Punitive Damages Appeal Status Putney 30% — $ — $ — Reversed and remanded for further proceedings; Florida Supreme Court accepted jurisdiction; quashed the decision being reviewed and reinstated the verdict; defenda

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Shareholders' Equity	Note 11 — Shareholders’ Equity Common Stock Paid-In Retained Earnings Accumulated Total Shareholders’ Equity Balance as of December 31, 2015 $ — $ 18,402 $ 188 $ (338 ) $ 18,252 Net income — — 3,565 — 3,565 Retirement benefits, net of $4 million tax benefit — — — (6 ) (6 ) Unrealized gain on long-term investments, net of tax — — — 1 1 Realized gain on long-term investments, net of $1 million tax expense — — — (2 ) (2 ) Realized loss on hedging instruments, net of $6 million tax expense — — — 11 11 Cumulative translation adjustment and other, net of $11 million tax expense — — — 22 22 Dividends - $0.42 per share — — (602 ) — (602 ) Common stock repurchased — (125 ) — — (125 ) Equity incentive award plan and stock-based compensation — 21 — — 21 Excess tax benefit on stock-based compensation plans — 26 — — 26 Balance as of March 31, 2016 $ — $ 18,324 $ 3,151 $ (312 ) $ 21,163 Common Paid-In Capital Accumulated Deficit Accumulated 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, net of $12 million tax benefit — — — (27 ) (27 ) Dividends - $0.335 per share — — (359 ) — (359 ) Common stock repurchased — (32 ) — — (32 ) Equity incentive award plan and stock-based compensation — 18 — — 18 Excess tax benefit on stock-based compensation plans — 14 — — 14 Balance as of March 31, 2015 $ — $ 6,200 $ (1,284 ) $ (397 ) $ 4,519 Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2016 were as follows: Retirement Benefits Unrealized Loss on Long-Term Investments Realized Loss on Hedging Instruments Cumulative Translation Adjustment and Other Total Balance as of December 31, 2015 $ (244 ) $ (14 ) $ (11 ) $ (69 ) $ (338 ) Other comprehensive loss before reclassifications — 1 — (5 ) $ (4 ) Amounts reclassified from accumulated other comprehensive loss (6 ) (2 ) 11 27 30 Net current-period other comprehensive loss (6 ) (1 ) 11 22 26 Balance as of March 31, 2016 $ (250 ) $ (15 ) $ — $ (47 ) $ (312 ) The components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2015, were as follows: Retirement Benefits Unrealized 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 loss before reclassifications — — — (27 ) (27 ) Amounts reclassified from accumulated other comprehensive loss (6 ) — — — (6 ) Net current-period other comprehensive loss (6 ) — — (27 ) (33 ) Balance as of March 31, 2015 $ (300 ) $ (14 ) $ (12 ) $ (71 ) $ (397 ) 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 2016 2015 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 ) Operating income Deferred taxes 4 4 Provision for income taxes Net of tax (6 ) (6 ) Net income Long-term investments: Realized gain on long-term investments (3 ) — Other (income) expense, net Deferred taxes 1 — Provision for income taxes Net of tax (2 ) — Net income Realized loss on hedging instruments: Forward starting interest rate contracts 17 — Other (income) expense, net Deferred taxes (6 ) — Provision for income taxes Net of tax 11 — Net income Cumulative translation adjustment: Derecognition of cumulative translation adjustment 27 — Gain on divestiture Total reclassifications $ 30 $ (6 ) Net income Share Repurchases and Other Restricted stock units granted in March 2013 under the Amended and Restated 2009 Omnibus Incentive Compensation Plan, referred to as the Omnibus Plan, vested in March 2016 and were settled with the issuance of 2,462,016 shares of RAI common stock. In addition, during the first three months of 2016, at a cost of $47 million, RAI purchased 927,803 shares of RAI common stock that were forfeited and cancelled with respect to tax liabilities associated with restricted stock units vesting under the Omnibus Plan. In November 2011, RAI, B&W and BAT entered into Amendment No. 3 to the governance agreement, referred to as the Governance Agreement, pursuant to which RAI has agreed that, so long as the beneficial ownership interest of BAT and its subsidiaries in RAI has not dropped below 25%, if RAI issues shares of its common stock or any other RAI equity security to certain designated persons, including its directors, officers or employees, then RAI will repurchase a number of shares of outstanding RAI common stock so that the number of outstanding shares of RAI common stock are not increased, and the beneficial ownership interest of BAT and its subsidiaries in RAI is not decreased, by such issuance after taking into account such repurchase. During the first three months of 2016, RAI repurchased 1,534,313 shares of RAI common stock for $78 million in accordance with the governance agreement. Due to RAI’s incorporation in North Carolina, which does not recognize treasury shares, the shares repurchased were cancelled at time of purchase. On February 10, 2016, RAI’s board of directors declared a quarterly cash dividend of $0.42 per common share, or $1.68 on an annualized basis, payable to shareholders of record as of March 10, 2016.

Stock Plans

Stock Plans	3 Months Ended
	Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Plans	Note 12 — Stock Plans Three-Year Grant In February 2016, the board of directors of RAI approved a grant to key employees of RAI and its subsidiaries, effective March 1, 2016, of 1,071,544 nonvested restricted stock units under the Omnibus Plan. The restricted stock units generally will vest on March 1, 2019. 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, 2018. As an equity-based grant, compensation expense relating to the 2016 grant 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 $50.49. 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. One-Year Grant In May 2015, the board of directors of RAI approved a grant to a key employee of RAI, effective May 7, 2015, of 217,304 nonvested restricted stock units under the Omnibus Plan. The restricted stock units generally will vest on May 7, 2016. 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 200% based on the overall performance of RAI and its subsidiaries during the one-year performance period beginning May 1, 2015, and ending April 30, 2016, against RAI’s 2015 annual incentive award program metrics and other performance factors. As an equity-based grant, compensation expense relating to this one-year grant 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 $50.31 as of March 31, 2016. 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 $1.34 per share for the one-year performance period ending April 30, 2016, 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%. Other Grants In January 2016, RAI approved two grants to a key employee, effective January 19, 2016: · a retention grant of 16,094 nonvested restricted stock units, which will vest 100% on December 15, 2018; and · a make-whole grant of 47,210 nonvested restricted stock units, of which 50% will vest on each of December 15, 2016 and December 15, 2017. As equity-based grants, compensation expense relating to these grants will take into account the vesting period lapsed and will be calculated on the per share closing price of RAI common stock on the date of grant, or $46.93. These grants do not contain a performance measure.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Information	Note 13 — Segment Information RAI’s reportable operating segments are RJR Tobacco, Santa Fe and American Snuff. The RJR Tobacco segment consists principally of the primary operations of R. J. Reynolds Tobacco Company. The Santa Fe segment consists of the domestic operations of SFNTC. The American Snuff segment consists of the primary operations of American Snuff Co. Included in All Other, among other RAI subsidiaries, are RJR Vapor, Niconovum USA, Inc., Niconovum AB, and until their sale on January 13, 2016, 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 is the second largest tobacco company in the United States. Its brands include three of the best-selling cigarettes in the United States: NEWPORT, CAMEL and PALL MALL. These brands, and its other brands, including DORAL, MISTY and CAPRI, are manufactured in a variety of styles and marketed in the United States. As part of its total tobacco strategy, RJR Tobacco also offers a smoke-free tobacco product, CAMEL Snus. RJR Tobacco manages contract manufacturing of cigarette and tobacco products through arrangements with BAT affiliates, and manages the export of tobacco products to U.S. territories, U.S. duty-free shops and U.S. overseas military bases. RJR Tobacco manages the super-premium cigarette brands, DUNHILL and STATE EXPRESS 555, which are licensed from BAT. Santa Fe manufactures and markets super-premium cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand in the United States. 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. RJR Vapor is a marketer of digital vapor cigarettes, manufactured on its behalf by RJR Tobacco, 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 distributed the NATURAL AMERICAN SPIRIT brand outside of the United States. On January 13, 2016, RAI, through the Sellers, completed the sale of the international rights to the NATURAL AMERICAN SPIRIT brand name and associated trademarks, along with the international companies that distributed and marketed the brand outside the United States to JTI Holding, in an all-cash transaction of approximately $5 billion. See note 2 for additional information. 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, 2016 2015 Net sales: RJR Tobacco $ 2,411 $ 1,608 Santa Fe 218 171 American Snuff 216 201 All Other 72 77 Consolidated net sales $ 2,917 $ 2,057 Operating income (loss): RJR Tobacco $ 1,107 $ 588 Santa Fe 123 92 American Snuff 133 118 All Other (34 ) (61 ) Gain on divestiture 4,861 — Corporate expense (48 ) (44 ) Consolidated operating income $ 6,142 $ 693 Reconciliation to income from operations before income taxes: Consolidated operating income $ 6,142 $ 693 Interest and debt expense 174 91 Interest income (3 ) (1 ) Other (income) expense, net 252 (17 ) Income from operations before income taxes $ 5,719 $ 620

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2016
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. BAT, through its subsidiaries, beneficially 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, 2016 December 31, 2015 Accounts receivable, related party $ 31 $ 38 Due to related party 2 9 Deferred revenue, related party 25 33 Other current liabilities — 2 Significant transactions: For the Three Months Ended March 31, 2016 2015 Net sales $ 55 $ 82 Purchases 8 2 Contract manufacturing amendment fee 6 — 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 (relating to the production of cigarettes to be sold in Japan) 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. On January 4, 2016, RJR Tobacco received written notice from a BAT affiliate terminating that contract manufacturing agreement effective January 5, 2019. Net sales to BAT affiliates, primarily cigarettes, represented approximately 2% and 4% of RAI’s total net sales during the three months ended March 31, 2016 and 2015, respectively. 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. RAI’s operating subsidiaries also purchase unprocessed leaf at market prices, and import cigarettes at prices not to exceed manufacturing costs plus 10%, from BAT affiliates. In January 2016, SFRTI paid $6 million to a BAT affiliate pursuant to a contract amendment, whereby the BAT affiliate agreed to contract manufacture certain tobacco products for SFRTI. The $6 million fee paid to amend the contract was recognized within selling, general and administrative expenses. In December 2015, RJR Tobacco and Nicoventures Holdings Limited, a subsidiary of BAT, signed a definitive vapor technology-sharing and licensing agreement, pursuant to which the companies will collaborate on the development of next generation vapor products.

RAI Guaranteed, Unsecured Notes

RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements	3 Months Ended
	Mar. 31, 2016
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 $13.1 billion aggregate principal amount of unsecured notes. See note 9 for additional information relating to these notes. Certain of RAI’s direct, wholly owned subsidiaries and certain of its indirectly owned subsidiaries have fully and unconditionally, and jointly and severally, guaranteed these notes. The following condensed consolidating financial statements include: the accounts and activities of RAI, the parent issuer; RJR, RJR Tobacco, American Snuff Co., SFNTC and certain of RAI’s other subsidiaries, the Guarantors; other direct and indirect subsidiaries of RAI that are not Guarantors; and elimination adjustments. Condensed Consolidating Statements of Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net sales $ — $ 2,839 $ 49 $ (26 ) $ 2,862 Net sales, related party — 55 — — 55 Net sales — 2,894 49 (26 ) 2,917 Cost of products sold — 1,149 43 (27 ) 1,165 Selling, general and administrative expenses 16 401 48 — 465 Gain on divestiture — (4,843 ) (16 ) (2 ) (4,861 ) Amortization expense — 6 — — 6 Operating income (loss) (16 ) 6,181 (26 ) 3 6,142 Interest and debt expense 174 23 2 (25 ) 174 Interest income (26 ) (2 ) — 25 (3 ) Other (income) expense, net 240 (6 ) 7 11 252 Income (loss) from before income taxes (404 ) 6,166 (35 ) (8 ) 5,719 Provision for (benefit from) income taxes (142 ) 2,308 (12 ) — 2,154 Equity income from subsidiaries 3,827 — — (3,827 ) — Net income (loss) $ 3,565 $ 3,858 $ (23 ) $ (3,835 ) $ 3,565 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 from subsidiaries 454 20 — (474 ) — Net income (loss) $ 389 $ 517 $ (29 ) $ (488 ) $ 389 Condensed Consolidating Statements of Comprehensive Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net income (loss) $ 3,565 $ 3,858 $ (23 ) $ (3,835 ) $ 3,565 Other comprehensive income (loss), net of tax: Retirement benefits (6 ) (6 ) — 6 (6 ) Unrealized gain on long-term investments 1 1 — (1 ) 1 Realized gain on long-term investments (2 ) (2 ) — 2 (2 ) Realized loss on hedging instruments 11 — — — 11 Cumulative translation adjustment and other 22 22 33 (55 ) 22 Comprehensive income $ 3,591 $ 3,873 $ 10 $ (3,883 ) $ 3,591 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 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, 2016, were as follows: Components Amounts Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Defined benefit pension and postretirement plans: Amortization of prior service costs $ — $ (5 ) $ — $ — $ (5 ) Cost Amortization of prior service costs — (5 ) — — (5 ) Selling, general and administrative expenses — (10 ) — — (10 ) Operating income (loss) Deferred taxes — 4 — — 4 Provision for income taxes Net of tax — (6 ) — — (6 ) Net income (loss) Long-term investments: Realized gain on long-term investments — (3 ) — — (3 ) Other (income) expense, net Deferred taxes — 1 — — 1 Provision for income taxes Net of tax — (2 ) — — (2 ) Net income (loss) Realized loss on hedging instruments: Forward starting interest rate contracts 17 — — — 17 Other (income) expense, net Deferred taxes (6 ) — — — (6 ) Provision for income taxes Net of tax 11 — — — 11 Net income (loss) Cumulative translation adjustment: Derecognition of cumulative translation adjustment — — 27 — 27 Gain on divestiture Equity income (loss) from subsidiaries 19 27 — (46 ) — Equity income (loss) from subsidiaries Total reclassifications $ 30 $ 19 $ 27 $ (46 ) $ 30 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, 2015, were as follows: Components Amounts Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated 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 ) Operating income (loss) 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 Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Cash flows from (used in) operating activities $ (563 ) $ 2,009 $ (30 ) $ (283 ) $ 1,133 Cash flows from (used in) investing activities: Capital expenditures — (39 ) (4 ) — (43 ) Proceeds from settlement of short-term investments — 159 — — 159 Proceeds from divestiture 5,014 — — — 5,014 Return of intercompany investments 412 26 — (438 ) — Other, net 20 12 — (31 ) 1 Net cash flows from (used in) investing activities 5,446 158 (4 ) (469 ) 5,131 Cash flows from (used in) financing activities: Dividends paid on common stock (514 ) (247 ) (25 ) 272 (514 ) Repurchase of common stock (125 ) — — — (125 ) Early extinguishment of debt (3,642 ) — — — (3,642 ) Redemption premium for tender offer (118 ) — — — (118 ) Make-whole premium for early extinguishment of debt (88 ) — — — (88 ) Proceeds from termination of interest rate swaps — 66 — — 66 Debt financing fees (7 ) — — — (7 ) Excess tax benefit on stock-based compensation plans 26 — — — 26 Dividends paid on preferred stock (11 ) — — 11 — Distribution of equity — (412 ) (26 ) 438 — Other, net (11 ) (20 ) — 31 — Net cash flows used in financing activities (4,490 ) (613 ) (51 ) 752 (4,402 ) Effect of exchange rate changes on cash and cash equivalents — — 12 — 12 Net change in cash and cash equivalents 393 1,554 (73 ) — 1,874 Cash and cash equivalents at beginning of period 575 1,544 448 — 2,567 Cash and cash equivalents at end of period $ 968 $ 3,098 $ 375 $ — $ 4,441 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2015 Cash flows from 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 ) Excess tax benefit on stock-based compensation plans 14 — — — 14 Borrowings under revolving credit facility 300 — — — 300 Repayments of borrowings under revolving credit facility (300 ) — — — (300 ) Dividends paid on preferred stock (11 ) — — 11 — Distribution of equity — (185 ) — 185 — Other, net (11 ) (20 ) 20 11 — Net cash flows from (used in) financing activities (396 ) (684 ) 20 686 (374 ) Effect of exchange rate changes on cash and cash equivalents — — (32 ) — (32 ) 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 Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated March 31, 2016 Assets Cash and cash equivalents $ 968 $ 3,098 $ 375 $ — $ 4,441 Short-term investments — 14 — — 14 Accounts receivable — 72 8 — 80 Accounts receivable, related party — 31 — — 31 Other receivables 72 2,681 20 (2,743 ) 30 Inventories — 1,625 35 (2 ) 1,658 Deferred income taxes, net 7 979 6 — 992 Other current assets 11 272 75 (75 ) 283 Total current assets 1,058 8,772 519 (2,820 ) 7,529 Property, plant and equipment, net 3 1,234 32 — 1,269 Trademarks and other intangible assets, net — 29,461 — — 29,461 Goodwill — 15,977 16 — 15,993 Long-term intercompany notes receivable 1,562 159 — (1,721 ) — Investment in subsidiaries 37,154 532 — (37,686 ) — Other assets and deferred charges 165 134 35 (178 ) 156 Total assets $ 39,942 $ 56,269 $ 602 $ (42,405 ) $ 54,408 Liabilities and shareholders’ equity Accounts payable $ 3 $ 130 $ 5 $ — $ 138 Tobacco settlement accruals — 3,446 — — 3,446 Due to related party — 2 — — 2 Deferred revenue, related party — 25 — — 25 Current maturities of long-term debt 417 86 — — 503 Dividends payable on common stock 599 — — — 599 Income taxes payable 1,766 172 — (78 ) 1,860 Other current liabilities 2,858 882 34 (2,743 ) 1,031 Total current liabilities 5,643 4,743 39 (2,821 ) 7,604 Long-term intercompany notes payable 159 1,240 322 (1,721 ) — Long-term debt (less current maturities) 12,886 327 — — 13,213 Deferred income taxes, net — 10,460 — (175 ) 10,285 Long-term retirement benefits (less current portion) 52 1,812 53 — 1,917 Other noncurrent liabilities 39 187 — — 226 Shareholders’ equity 21,163 37,500 188 (37,688 ) 21,163 Total liabilities and shareholders’ equity $ 39,942 $ 56,269 $ 602 $ (42,405 ) $ 54,408 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated December 31, 2015 Assets Cash and cash equivalents $ 575 $ 1,544 $ 448 $ — $ 2,567 Short-term investments — 149 — — 149 Accounts receivable — 62 6 — 68 Accounts receivable, related party — 38 — — 38 Other receivables 70 3,459 91 (3,585 ) 35 Inventories — 1,694 44 (4 ) 1,734 Deferred income taxes, net 14 1,011 7 — 1,032 Other current assets 116 323 129 (4 ) 564 Total current assets 775 8,280 725 (3,593 ) 6,187 Property, plant and equipment, net 3 1,223 29 — 1,255 Trademarks and other intangible assets, net — 29,467 — — 29,467 Goodwill — 15,976 17 — 15,993 Long-term intercompany notes receivable 1,583 169 — (1,752 ) — Investment in subsidiaries 37,151 662 — (37,813 ) — Other assets and deferred charges 175 212 31 (188 ) 230 Total assets $ 39,687 $ 55,989 $ 802 $ (43,346 ) $ 53,132 Liabilities and shareholders’ equity Accounts payable $ 2 $ 173 $ 4 $ — $ 179 Tobacco settlement accruals — 2,816 — — 2,816 Due to related party — 9 — — 9 Deferred revenue, related party — 33 — — 33 Current maturities of long-term debt 420 86 — — 506 Dividends payable on common stock 514 — — — 514 Other current liabilities 3,707 1,039 79 (3,591 ) 1,234 Total current liabilities 4,643 4,156 83 (3,591 ) 5,291 Long-term intercompany notes payable 169 1,260 323 (1,752 ) — Long-term debt (less current maturities) 16,522 327 — — 16,849 Deferred income taxes, net — 10,421 — (185 ) 10,236 Long-term retirement benefits (less current portion) 57 2,153 55 — 2,265 Other noncurrent liabilities 44 195 — — 239 Shareholders’ equity 18,252 37,477 341 (37,818 ) 18,252 Total liabilities and shareholders’ equity $ 39,687 $ 55,989 $ 802 $ (43,346 ) $ 53,132

RJR Tobacco Guaranteed, Unsecur

RJR Tobacco Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements	3 Months Ended
	Mar. 31, 2016
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 $13.1 billion aggregate principal amount of unsecured notes. See note 9 for additional information relating to these notes. Certain of RAI’s direct, wholly owned subsidiaries and certain of its indirectly owned subsidiaries have fully and unconditionally, and jointly and severally, guaranteed these notes. The following condensed consolidating financial statements include: the accounts and activities of RAI, the parent issuer; RJR, RJR Tobacco, American Snuff Co., SFNTC and certain of RAI’s other subsidiaries, the Guarantors; other direct and indirect subsidiaries of RAI that are not Guarantors; and elimination adjustments. Condensed Consolidating Statements of Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net sales $ — $ 2,839 $ 49 $ (26 ) $ 2,862 Net sales, related party — 55 — — 55 Net sales — 2,894 49 (26 ) 2,917 Cost of products sold — 1,149 43 (27 ) 1,165 Selling, general and administrative expenses 16 401 48 — 465 Gain on divestiture — (4,843 ) (16 ) (2 ) (4,861 ) Amortization expense — 6 — — 6 Operating income (loss) (16 ) 6,181 (26 ) 3 6,142 Interest and debt expense 174 23 2 (25 ) 174 Interest income (26 ) (2 ) — 25 (3 ) Other (income) expense, net 240 (6 ) 7 11 252 Income (loss) from before income taxes (404 ) 6,166 (35 ) (8 ) 5,719 Provision for (benefit from) income taxes (142 ) 2,308 (12 ) — 2,154 Equity income from subsidiaries 3,827 — — (3,827 ) — Net income (loss) $ 3,565 $ 3,858 $ (23 ) $ (3,835 ) $ 3,565 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 from subsidiaries 454 20 — (474 ) — Net income (loss) $ 389 $ 517 $ (29 ) $ (488 ) $ 389 Condensed Consolidating Statements of Comprehensive Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net income (loss) $ 3,565 $ 3,858 $ (23 ) $ (3,835 ) $ 3,565 Other comprehensive income (loss), net of tax: Retirement benefits (6 ) (6 ) — 6 (6 ) Unrealized gain on long-term investments 1 1 — (1 ) 1 Realized gain on long-term investments (2 ) (2 ) — 2 (2 ) Realized loss on hedging instruments 11 — — — 11 Cumulative translation adjustment and other 22 22 33 (55 ) 22 Comprehensive income $ 3,591 $ 3,873 $ 10 $ (3,883 ) $ 3,591 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 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, 2016, were as follows: Components Amounts Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Defined benefit pension and postretirement plans: Amortization of prior service costs $ — $ (5 ) $ — $ — $ (5 ) Cost Amortization of prior service costs — (5 ) — — (5 ) Selling, general and administrative expenses — (10 ) — — (10 ) Operating income (loss) Deferred taxes — 4 — — 4 Provision for income taxes Net of tax — (6 ) — — (6 ) Net income (loss) Long-term investments: Realized gain on long-term investments — (3 ) — — (3 ) Other (income) expense, net Deferred taxes — 1 — — 1 Provision for income taxes Net of tax — (2 ) — — (2 ) Net income (loss) Realized loss on hedging instruments: Forward starting interest rate contracts 17 — — — 17 Other (income) expense, net Deferred taxes (6 ) — — — (6 ) Provision for income taxes Net of tax 11 — — — 11 Net income (loss) Cumulative translation adjustment: Derecognition of cumulative translation adjustment — — 27 — 27 Gain on divestiture Equity income (loss) from subsidiaries 19 27 — (46 ) — Equity income (loss) from subsidiaries Total reclassifications $ 30 $ 19 $ 27 $ (46 ) $ 30 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, 2015, were as follows: Components Amounts Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated 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 ) Operating income (loss) 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 Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Cash flows from (used in) operating activities $ (563 ) $ 2,009 $ (30 ) $ (283 ) $ 1,133 Cash flows from (used in) investing activities: Capital expenditures — (39 ) (4 ) — (43 ) Proceeds from settlement of short-term investments — 159 — — 159 Proceeds from divestiture 5,014 — — — 5,014 Return of intercompany investments 412 26 — (438 ) — Other, net 20 12 — (31 ) 1 Net cash flows from (used in) investing activities 5,446 158 (4 ) (469 ) 5,131 Cash flows from (used in) financing activities: Dividends paid on common stock (514 ) (247 ) (25 ) 272 (514 ) Repurchase of common stock (125 ) — — — (125 ) Early extinguishment of debt (3,642 ) — — — (3,642 ) Redemption premium for tender offer (118 ) — — — (118 ) Make-whole premium for early extinguishment of debt (88 ) — — — (88 ) Proceeds from termination of interest rate swaps — 66 — — 66 Debt financing fees (7 ) — — — (7 ) Excess tax benefit on stock-based compensation plans 26 — — — 26 Dividends paid on preferred stock (11 ) — — 11 — Distribution of equity — (412 ) (26 ) 438 — Other, net (11 ) (20 ) — 31 — Net cash flows used in financing activities (4,490 ) (613 ) (51 ) 752 (4,402 ) Effect of exchange rate changes on cash and cash equivalents — — 12 — 12 Net change in cash and cash equivalents 393 1,554 (73 ) — 1,874 Cash and cash equivalents at beginning of period 575 1,544 448 — 2,567 Cash and cash equivalents at end of period $ 968 $ 3,098 $ 375 $ — $ 4,441 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2015 Cash flows from 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 ) Excess tax benefit on stock-based compensation plans 14 — — — 14 Borrowings under revolving credit facility 300 — — — 300 Repayments of borrowings under revolving credit facility (300 ) — — — (300 ) Dividends paid on preferred stock (11 ) — — 11 — Distribution of equity — (185 ) — 185 — Other, net (11 ) (20 ) 20 11 — Net cash flows from (used in) financing activities (396 ) (684 ) 20 686 (374 ) Effect of exchange rate changes on cash and cash equivalents — — (32 ) — (32 ) 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 Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated March 31, 2016 Assets Cash and cash equivalents $ 968 $ 3,098 $ 375 $ — $ 4,441 Short-term investments — 14 — — 14 Accounts receivable — 72 8 — 80 Accounts receivable, related party — 31 — — 31 Other receivables 72 2,681 20 (2,743 ) 30 Inventories — 1,625 35 (2 ) 1,658 Deferred income taxes, net 7 979 6 — 992 Other current assets 11 272 75 (75 ) 283 Total current assets 1,058 8,772 519 (2,820 ) 7,529 Property, plant and equipment, net 3 1,234 32 — 1,269 Trademarks and other intangible assets, net — 29,461 — — 29,461 Goodwill — 15,977 16 — 15,993 Long-term intercompany notes receivable 1,562 159 — (1,721 ) — Investment in subsidiaries 37,154 532 — (37,686 ) — Other assets and deferred charges 165 134 35 (178 ) 156 Total assets $ 39,942 $ 56,269 $ 602 $ (42,405 ) $ 54,408 Liabilities and shareholders’ equity Accounts payable $ 3 $ 130 $ 5 $ — $ 138 Tobacco settlement accruals — 3,446 — — 3,446 Due to related party — 2 — — 2 Deferred revenue, related party — 25 — — 25 Current maturities of long-term debt 417 86 — — 503 Dividends payable on common stock 599 — — — 599 Income taxes payable 1,766 172 — (78 ) 1,860 Other current liabilities 2,858 882 34 (2,743 ) 1,031 Total current liabilities 5,643 4,743 39 (2,821 ) 7,604 Long-term intercompany notes payable 159 1,240 322 (1,721 ) — Long-term debt (less current maturities) 12,886 327 — — 13,213 Deferred income taxes, net — 10,460 — (175 ) 10,285 Long-term retirement benefits (less current portion) 52 1,812 53 — 1,917 Other noncurrent liabilities 39 187 — — 226 Shareholders’ equity 21,163 37,500 188 (37,688 ) 21,163 Total liabilities and shareholders’ equity $ 39,942 $ 56,269 $ 602 $ (42,405 ) $ 54,408 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated December 31, 2015 Assets Cash and cash equivalents $ 575 $ 1,544 $ 448 $ — $ 2,567 Short-term investments — 149 — — 149 Accounts receivable — 62 6 — 68 Accounts receivable, related party — 38 — — 38 Other receivables 70 3,459 91 (3,585 ) 35 Inventories — 1,694 44 (4 ) 1,734 Deferred income taxes, net 14 1,011 7 — 1,032 Other current assets 116 323 129 (4 ) 564 Total current assets 775 8,280 725 (3,593 ) 6,187 Property, plant and equipment, net 3 1,223 29 — 1,255 Trademarks and other intangible assets, net — 29,467 — — 29,467 Goodwill — 15,976 17 — 15,993 Long-term intercompany notes receivable 1,583 169 — (1,752 ) — Investment in subsidiaries 37,151 662 — (37,813 ) — Other assets and deferred charges 175 212 31 (188 ) 230 Total assets $ 39,687 $ 55,989 $ 802 $ (43,346 ) $ 53,132 Liabilities and shareholders’ equity Accounts payable $ 2 $ 173 $ 4 $ — $ 179 Tobacco settlement accruals — 2,816 — — 2,816 Due to related party — 9 — — 9 Deferred revenue, related party — 33 — — 33 Current maturities of long-term debt 420 86 — — 506 Dividends payable on common stock 514 — — — 514 Other current liabilities 3,707 1,039 79 (3,591 ) 1,234 Total current liabilities 4,643 4,156 83 (3,591 ) 5,291 Long-term intercompany notes payable 169 1,260 323 (1,752 ) — Long-term debt (less current maturities) 16,522 327 — — 16,849 Deferred income taxes, net — 10,421 — (185 ) 10,236 Long-term retirement benefits (less current portion) 57 2,153 55 — 2,265 Other noncurrent liabilities 44 195 — — 239 Shareholders’ equity 18,252 37,477 341 (37,818 ) 18,252 Total liabilities and shareholders’ equity $ 39,687 $ 55,989 $ 802 $ (43,346 ) $ 53,132
RJR Tobacco
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements	Note 16 — RJR Tobacco Guaranteed, Unsecured Notes — Condensed Consolidating Financial Statements The following condensed consolidating financial statements relate to the guaranties of RJR Tobacco’s $377 million aggregate principal amount of unsecured notes. See note 9 for additional information related to these notes. RAI and RJR 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 Guarantor; RJR Tobacco, the Issuer; RJR, a Guarantor; other direct and indirect subsidiaries of RAI that are not Guarantors; and elimination adjustments. Condensed Consolidating Statements of Income (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net sales $ — $ 2,383 $ — $ 524 $ (45 ) $ 2,862 Net sales, related party — 55 — — — 55 Net sales — 2,438 — 524 (45 ) 2,917 Cost of products sold — 1,017 — 194 (46 ) 1,165 Selling, general and administrative expenses, net 16 635 — (186 ) — 465 Gain on divestiture — — — (4,861 ) — (4,861 ) Amortization expense — 4 — 2 — 6 Operating income (loss) (16 ) 782 — 5,375 1 6,142 Interest and debt expense 174 — — 26 (26 ) 174 Interest income (26 ) (2 ) (1 ) — 26 (3 ) Other (income) expense, net 240 4 (10 ) 7 11 252 Income (loss) before income taxes (404 ) 780 11 5,342 (10 ) 5,719 Provision for (benefit from) income taxes (142 ) 327 — 1,969 — 2,154 Equity income from subsidiaries 3,827 184 656 — (4,667 ) — Net income $ 3,565 $ 637 $ 667 $ 3,373 $ (4,677 ) $ 3,565 For the Three Months Ended March 31, 2015 Net sales $ — $ 1,621 $ — $ 434 $ (80 ) $ 1,975 Net sales, related party — 82 — — — 82 Net sales — 1,703 — 434 (80 ) 2,057 Cost of products sold — 758 — 169 (77 ) 850 Selling, general and administrative expenses 19 452 — 40 — 511 Amortization expense — 1 — 2 — 3 Operating income (loss) (19 ) 492 — 223 (3 ) 693 Interest and debt expense 91 5 — 15 (20 ) 91 Interest income (19 ) (1 ) (1 ) — 20 (1 ) Other (income) expense, net 1 — (10 ) (18 ) 10 (17 ) Income (loss) before income taxes (92 ) 488 11 226 (13 ) 620 Provision for (benefit from) income taxes (27 ) 176 — 82 — 231 Equity income from subsidiaries 454 78 388 — (920 ) — Net income $ 389 $ 390 $ 399 $ 144 $ (933 ) $ 389 Condensed Consolidating Statements of Comprehensive Income (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net income $ 3,565 $ 637 $ 667 $ 3,373 $ (4,677 ) $ 3,565 Other comprehensive income (loss), net of tax: Retirement benefits (6 ) (6 ) (6 ) — 12 (6 ) Unrealized gain on long-term investments 1 1 1 — (2 ) 1 Realized gain on long-term investments (2 ) (2 ) (2 ) 4 (2 ) Realized loss on hedging instruments 11 — — — — 11 Cumulative translation adjustment and other 22 21 22 22 (65 ) 22 Comprehensive income $ 3,591 $ 651 $ 682 $ 3,395 $ (4,728 ) $ 3,591 For the Three Months Ended March 31, 2015 Net income $ 389 $ 390 $ 399 $ 144 $ (933 ) $ 389 Other comprehensive income (loss), net of tax: Retirement benefits (6 ) (5 ) (5 ) — 10 (6 ) Cumulative translation adjustment and other (27 ) (27 ) (26 ) (27 ) 80 (27 ) Comprehensive income $ 356 $ 358 $ 368 $ 117 $ (843 ) $ 356 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, 2016, were as follows: Components Amounts Reclassified Affected Line Item Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated Defined benefit pension and postretirement plans: Amortization of prior service costs $ — $ (5 ) $ — $ — $ — $ (5 ) Cost Amortization of prior service costs — (5 ) — — — (5 ) Selling, general and administrative expenses, net — (10 ) — — — (10 ) Operating income (loss) Deferred taxes — 4 — — — 4 Provision for income taxes Net of tax — (6 ) — — — (6 ) Net income (loss) Long-term investments: Realized gain on long-term investments — (3 ) — — — (3 ) Other (income) expense, net Deferred taxes — 1 — — — 1 Provision for income taxes Net of tax — (2 ) — — — (2 ) Net income (loss) Realized loss on hedging instruments: Forward starting interest rate contracts 17 — — — — 17 Other (income) expense, net Deferred taxes (6 ) — — — — (6 ) Provision for income taxes Net of tax 11 — — — — 11 Net income (loss) Cumulative translation adjustment: Derecognition of cumulative translation adjustment — — — 27 — 27 Gain on divestiture Equity income (loss) from subsidiaries 19 27 19 — (65 ) — Equity income (loss) from subsidiaries Total reclassifications $ 30 $ 19 $ 19 $ 27 $ (65 ) $ 30 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, 2015, were as follows: Components Amounts Reclassified Affected Line Item Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated Defined benefit pension and postretirement plans: Amortization of prior service costs $ — $ (5 ) $ — $ — $ — $ (5 ) Cost Amortization of prior service costs — (5 ) — — — (5 ) Selling, general and administrative expenses — (10 ) — — — (10 ) Operating income (loss) Deferred taxes — 4 — — — 4 Provision for income taxes Equity income (loss) from subsidiaries (6 ) — (6 ) — 12 — Equity income (loss) from subsidiaries Total reclassifications $ (6 ) $ (6 ) $ (6 ) $ — $ 12 $ (6 ) Net income (loss) Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Cash flows from (used in) operating activities $ (563 ) $ 1,762 $ 37 $ 315 $ (418 ) $ 1,133 Cash flows from (used in) investing activities: Capital expenditures — (29 ) — (14 ) — (43 ) Proceeds from settlement of short-term investments — 159 — — — 159 Proceeds from divestiture 5,014 — — — — 5,014 Return of intercompany investments 412 495 598 — (1,505 ) — Other, net 20 1 8 11 (39 ) 1 Net cash flows from (used in) investing activities 5,446 626 606 (3 ) (1,544 ) 5,131 Cash flows from (used in) financing activities: Dividends paid on common stock (514 ) — (247 ) (160 ) 407 (514 ) Repurchase of common stock (125 ) — — — — (125 ) Early extinguishment of debt (3,642 ) — — — — (3,642 ) Redemption premium for tender offer (118 ) — — — — (118 ) Make-whole premium for early extinguishment of debt (88 ) — — — — (88 ) Proceeds from termination of interest rate swaps — 66 — — — 66 Debt financing fees (7 ) — — — — (7 ) Excess tax benefit on stock-based compensation plans 26 — — — — 26 Dividends paid on preferred stock (11 ) — — — 11 — Distribution of equity — (580 ) (412 ) (513 ) 1,505 — Other, net (11 ) — — (28 ) 39 — Net cash flows used in financing activities (4,490 ) (514 ) (659 ) (701 ) 1,962 (4,402 ) Effect of exchange rate changes on cash and cash equivalents — — — 12 — 12 Net change in cash and cash equivalents 393 1,874 (16 ) (377 ) — 1,874 Cash and cash equivalents at beginning of period 575 809 19 1,164 — 2,567 Cash and cash equivalents at end of period $ 968 $ 2,683 $ 3 $ 787 $ — $ 4,441 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2015 Cash flows from operating activities $ 480 $ 975 $ 473 $ 171 $ (1,019 ) $ 1,080 Cash flows from (used in) investing activities: Capital expenditures — (17 ) — (12 ) 3 (26 ) Return of intercompany investments 185 10 184 — (379 ) — Other, net — 1 8 11 (19 ) 1 Net cash flows from (used in) investing activities 185 (6 ) 192 (1 ) (395 ) (25 ) Cash flows (used in) from financing activities: Dividends paid on common stock (356 ) (461 ) (479 ) (65 ) 1,005 (356 ) Repurchase of common stock (32 ) — — — — (32 ) Borrowings under revolving credit facility 300 — — — — 300 Repayments of borrowings under revolving credit facility (300 ) — — — — (300 ) Excess tax benefit on stock-based compensation 14 — — — — 14 Dividends paid on preferred stock (11 ) — — — 11 — Distribution of equity — (184 ) (185 ) (10 ) 379 — Other, net (11 ) — — (8 ) 19 — Net cash flows used in financing activities (396 ) (645 ) (664 ) (83 ) 1,414 (374 ) Effect of exchange rate changes on cash and cash equivalents — — — (32 ) — (32 ) Net change in cash and cash equivalents 269 324 1 55 — 649 Cash and cash equivalents at beginning of period 102 327 3 534 — 966 Cash and cash equivalents at end of period $ 371 $ 651 $ 4 $ 589 $ — $ 1,615 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated March 31, 2016 Assets Cash and cash equivalents $ 968 $ 2,683 $ 3 $ 787 $ — $ 4,441 Short-term investments — 14 — — — 14 Accounts receivable — 38 — 42 — 80 Accounts receivable, related party — 31 — — — 31 Other receivables 72 26 17 4,994 (5,079 ) 30 Inventories — 912 — 748 (2 ) 1,658 Deferred income taxes, net 7 884 1 100 — 992 Other current assets 11 229 — 43 283 Total current assets 1,058 4,817 21 6,714 (5,081 ) 7,529 Property, plant and equipment, net 3 805 — 461 — 1,269 Trademarks and other intangible assets, net — 342 — 29,119 — 29,461 Goodwill — 3,453 9,853 2,687 — 15,993 Long-term intercompany notes receivable 1,562 — 82 159 (1,803 ) — Investment in subsidiaries 37,154 22,724 24,244 — (84,122 ) — Other assets and deferred charges 165 650 12 13 (684 ) 156 Total assets $ 39,942 $ 32,791 $ 34,212 $ 39,153 $ (91,690 ) $ 54,408 Liabilities and shareholders’ equity Accounts payable $ 3 $ 116 $ — $ 19 $ — $ 138 Tobacco settlement accruals — 3,268 — 178 — 3,446 Due to related party — 2 — — — 2 Deferred revenue, related party — 25 — — — 25 Current maturities of long-term debt 417 86 — — — 503 Dividends payable on common stock 599 — — — — 599 Income taxes payable 1,766 46 — 51 (3 ) 1,860 Other current liabilities 2,858 2,978 52 222 (5,079 ) 1,031 Total current liabilities 5,643 6,521 52 470 (5,082 ) 7,604 Long-term intercompany notes payable 159 — — 1,644 (1,803 ) — Long-term debt (less current maturities) 12,886 327 — — — 13,213 Deferred income taxes, net — 1 — 10,965 (681 ) 10,285 Long-term retirement benefits (less current portion) 52 1,707 29 129 — 1,917 Other noncurrent liabilities 39 164 — 23 — 226 Shareholders’ equity 21,163 24,071 34,131 25,922 (84,124 ) 21,163 Total liabilities and shareholders’ equity $ 39,942 $ 32,791 $ 34,212 $ 39,153 $ (91,690 ) $ 54,408 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated December 31, 2015 Assets Cash and cash equivalents $ 575 $ 809 $ 19 $ 1,164 $ — $ 2,567 Short-term investments — 149 — — — 149 Accounts receivable — 48 — 20 — 68 Accounts receivable, related party — 38 — — — 38 Other receivables 70 30 17 4,890 (4,972 ) 35 Inventories — 941 — 797 (4 ) 1,734 Deferred income taxes, net 14 928 1 89 — 1,032 Other current assets 116 236 — 212 — 564 Total current assets 775 3,179 37 7,172 (4,976 ) 6,187 Property, plant and equipment, net 3 792 — 460 — 1,255 Trademarks and other intangible assets, net — 346 — 29,121 — 29,467 Goodwill — 3,453 9,853 2,687 — 15,993 Long-term intercompany notes receivable 1,583 — 90 169 (1,842 ) — Investment in subsidiaries 37,151 23,199 24,276 — (84,626 ) — Other assets and deferred charges 175 783 13 9 (750 ) 230 Total assets $ 39,687 $ 31,752 $ 34,269 $ 39,618 $ (92,194 ) $ 53,132 Liabilities and shareholders’ equity Accounts payable $ 2 $ 146 $ — $ 31 $ — $ 179 Tobacco settlement accruals — 2,673 — 143 — 2,816 Due to related party — 9 — — — 9 Deferred revenue, related party — 33 — — — 33 Current maturities of long-term debt 420 86 — — — 506 Dividends payable on common stock 514 — — — — 514 Other current liabilities 3,707 2,189 31 284 (4,977 ) 1,234 Total current liabilities 4,643 5,136 31 458 (4,977 ) 5,291 Long-term intercompany notes payable 169 — — 1,673 (1,842 ) — Long-term debt (less current maturities) 16,522 327 — — — 16,849 Deferred income taxes, net — 1 — 10,981 (746 ) 10,236 Long-term retirement benefits (less current portion) 57 2,036 30 142 — 2,265 Other noncurrent liabilities 44 182 — 13 — 239 Shareholders’ equity 18,252 24,070 34,208 26,351 (84,629 ) 18,252 Total liabilities and shareholders’ equity $ 39,687 $ 31,752 $ 34,269 $ 39,618 $ (92,194 ) $ 53,132

Business and Summary of Signi25

Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Operating Segments	Operating Segments RAI’s reportable operating segments are RJR Tobacco, Santa Fe and American Snuff. The RJR Tobacco segment consists principally of the primary operations of R. J. Reynolds Tobacco Company. The Santa Fe segment consists of the domestic operations of SFNTC. The American Snuff segment consists of the primary operations of American Snuff Co. Included in All Other, among other RAI subsidiaries, are RJR Vapor, Niconovum USA, Inc., Niconovum AB, and until their sale on January 13, 2016, as described above, 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, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015. 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. All share and per share amounts reflect the two-for-one split of RAI’s common stock on August 31, 2015, unless otherwise noted.
Cost of Products Sold	Cost of Products Sold Cost of products sold includes, among other expenses, 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, and the user fees charged by the U.S. Food and Drug Administration, referred to as the FDA. These expenses were as follows: For the Three Months Ended March 31, 2016 2015 State Settlement Agreements $ 630 $ 394 FDA user fees 50 35 In 2012, RJR Tobacco, Lorillard Tobacco, SFNTC and certain other participating manufacturers, referred to as the PMs, 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 resolved claims related to volume years from 2003 through 2012 and put in place a revised method to determine future adjustments from 2013 forward as to jurisdictions that join the agreement. Subsequently, five additional states joined the Term Sheet, including two states that were found to have not diligently enforced their qualifying statutes, some on terms that were marginally more favorable to the PMs than those of the original signatories. The parties to the Term Sheet represent an allocable share of 49.87%. As a result of meeting the performance requirements associated with the Term Sheet, RJR Tobacco and Santa Fe, collectively, recognized credits of $69 million and $66 million for the three months ended March 31, 2016 and 2015, respectively. Credits recognized in the three months ended March 31, 2016 include the benefit of the additional credits received as a result of the Lorillard Tobacco Merger. In September 2013, an arbitration panel ruled six states had not diligently enforced their qualifying statutes in 2003 related to the NPM Adjustment. Certain findings by the arbitration panel against four of these states are currently in litigation and as such, the full amount of recovery from these states is uncertain. For the amounts that were certain and estimable, RJR Tobacco and Santa Fe, collectively, recognized $70 million as a reduction of cost of products sold in the quarter ended March 31, 2015. No comparable amounts were recognized in the quarter ended March 31, 2016. In October 2015, RJR Tobacco, SFNTC and certain other PMs entered into a settlement agreement, referred to as the NY Settlement Agreement, with the State of New York to settle certain claims related to the NPM Adjustment. The NY Settlement Agreement resolved NPM Adjustment claims related to payment years from 2004 through 2014, providing RJR Tobacco and SFNTC, collectively, with credits, of approximately $290 million, plus interest, that will be recognized through 2018 subject to meeting various performance obligations. These credits will be applied against annual payments under the MSA over a four-year period, commencing with the annual MSA payment due in April 2016. In addition, the NY Settlement Agreement put in place a new method to determine future adjustments from 2015 forward as to New York. RJR Tobacco and Santa Fe, collectively, recognized credits of $22 million as a reduction to costs of products sold for the three months ended March 31, 2016. 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 as a mark-to-market adjustment, referred to as an MTM adjustment, to the extent such net gains and losses exceed 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 2016 2015 2016 2015 Service cost $ 4 $ 6 $ 1 $ 1 Interest cost 74 64 13 12 Expected return on plan assets (93 ) (88 ) (3 ) (3 ) Amortization of prior service cost (credit) 1 1 (11 ) (11 ) Total benefit income $ (14 ) $ (17 ) $ — $ (1 ) RAI disclosed in its financial statements for the year ended December 31, 2015, that it expects to contribute $335 million to its pension plans in 2016, of which $327 million was contributed during the first three months of 2016.
Fair Value Measurement	Fair Value Measurement RAI determines the fair value of assets and liabilities 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 Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board, referred to as FASB, issued an Accounting Standards Update, referred to as ASU, 2015-03 Simplifying the Presentation of Debt Issuance Costs. In April 2015, the FASB issued ASU 2015-05 Internal Use Software
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers, In November 2015, the FASB issued ASU 2015-17 Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU 2016-01 Recognition and Measurement of Financial Assets and Liabilities, In February 2016, the FASB issued ASU 2016-02 Leases Revenue from Contracts with Customers. In March 2016, the FASB issued ASU 2016-09 Improvements to Employee Share-Based Payment Accounting,

Business and Summary of Signi26

Business and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Certain Component Of Cost Of Products Sold	Cost of products sold includes, among other expenses, 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, and the user fees charged by the U.S. Food and Drug Administration, referred to as the FDA. These expenses were as follows: For the Three Months Ended March 31, 2016 2015 State Settlement Agreements $ 630 $ 394 FDA user fees 50 35
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 2016 2015 2016 2015 Service cost $ 4 $ 6 $ 1 $ 1 Interest cost 74 64 13 12 Expected return on plan assets (93 ) (88 ) (3 ) (3 ) Amortization of prior service cost (credit) 1 1 (11 ) (11 ) Total benefit income $ (14 ) $ (17 ) $ — $ (1 )

Sale of International Rights 27

Sale of International Rights to the Natural American Spirit Brand (Tables)	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Summary of Pre-tax Gain	The components of the pre-tax gain, which was recorded in the first quarter of 2016, were as follows: Purchase price $ 5,015 Net assets and liabilities divested (154 ) Gain on divestiture $ 4,861

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Assets	Financial assets carried at fair value were as follows: March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash equivalents $ 4,394 $ — $ — $ 4,394 $ 2,454 $ — $ — $ 2,454 Short-term investments: Corporate debt securities — — — — — 96 — 96 U.S. Governmental agency obligations — — — — — 43 — 43 Commercial paper — — — — — 10 — 10 Auction rate securities — — 14 14 — — — — Other assets and deferred charges: Auction rate securities — — 59 59 — — 79 79 Mortgage-backed security — — 10 10 — — 10 10 Marketable equity security — — — — 1 — — 1 Interest rate swaps — — — — — 53 — 53
Financial Assets Classified as Level 3 Investments	Financial assets classified as Level 3 investments were as follows: March 31, 2016 December 31, 2015 Cost Gross Unrealized Loss Estimated Fair Value Cost Gross Unrealized Loss Estimated Fair Value Auction rate securities $ 95 $ (22 ) $ 73 $ 99 $ (20 ) $ 79 Mortgage-backed security 15 (5 ) 10 16 (6 ) 10 $ 110 $ (27 ) $ 83 $ 115 $ (26 ) $ 89

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
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 Tobacco Santa Fe American Snuff All Other Consolidated Balance as of December 31, 2015 Goodwill $ 17,069 $ 197 $ 2,501 $ 17 $ 19,784 Less: accumulated impairment charges (3,763 ) — (28 ) — (3,791 ) $ 13,306 $ 197 $ 2,473 $ 17 $ 15,993 Balance as of March 31, 2016 Goodwill $ 17,069 $ 197 $ 2,501 $ 17 $ 19,784 Less: accumulated impairment charges (3,763 ) — (28 ) — (3,791 ) $ 13,306 $ 197 $ 2,473 $ 17 $ 15,993
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 Santa Fe American Snuff Consolidated Trademarks Other Trademarks Trademarks Trademarks Other Indefinite-lived: Balance as of December 31, 2015 $ 27,826 $ 87 $ 136 $ 1,136 $ 29,098 $ 87 Balance as of March 31, 2016 $ 27,826 $ 87 $ 136 $ 1,136 $ 29,098 $ 87 Finite-lived: Balance as of December 31, 2015 $ 17 $ 259 $ — $ 6 $ 23 $ 259 Amortization (2 ) (4 ) — — (2 ) (4 ) Balance as of March 31, 2016 $ 15 $ 255 $ — $ 6 $ 21 $ 255
Details of Finite-Lived Intangible Assets	Details of finite-lived intangible assets were as follows: March 31, 2016 December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer lists $ 240 $ (10 ) $ 230 $ 240 $ (7 ) $ 233 Contract manufacturing agreements 151 (140 ) 11 151 (139 ) 12 Trademarks 124 (103 ) 21 124 (101 ) 23 Other intangibles 15 (1 ) 14 15 (1 ) 14 $ 530 $ (254 ) $ 276 $ 530 $ (248 ) $ 282
Finite-Lived Intangible Assets Estimated Future Amortization Expense	The estimated remaining amortization expense associated with finite-lived intangible assets is expected to be as follows: Year Amount Remainder of 2016 $ 17 2017 23 2018 22 2019 16 2020 15 Thereafter 183 $ 276

Income Per Share (Tables)

Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
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, 2016 2015 Net income $ 3,565 $ 389 Basic weighted average shares, in thousands 1,427,448 1,063,053 Effect of dilutive potential shares: Restricted stock units 3,621 3,941 Diluted weighted average shares, in thousands 1,431,069 1,066,994

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Components of Inventories	The major components of inventories were as follows: March 31, 2016 December 31, 2015 Leaf tobacco $ 1,417 $ 1,495 Other raw materials 100 110 Work in process 79 88 Finished products 195 173 Other 23 22 Total 1,814 1,888 LIFO allowance (156 ) (154 ) $ 1,658 $ 1,734

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Provision for Income Taxes	The provision for income taxes was as follows: For the Three Months Ended March 31, 2016 2015 Provision for income taxes $ 2,154 $ 231 Effective tax rate 37.7 % 37.3 %

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Securities and Tender Offer	As described in the Offer to Purchase, dated February 4, 2016, and the related Letter of Transmittal, as amended, collectively referred to as the Tender Offer Documents, RAI accepted for purchase 100% of the Tender Notes validly tendered and not validly withdrawn for the series listed in the table below in acceptance priority levels 1 through 3. Due to oversubscription, RAI accepted for purchase Tender Notes validly tendered and not validly withdrawn for the series listed in the table below in acceptance priority level 4 on a pro rata basis in accordance with the proration procedures described in the Tender Offer Documents. RAI did not accept for purchase any of the Tender Notes for the series listed in the table below in acceptance priority levels 5 through 7. Title of Security Acceptance Priority Level Principal Tendered at Expiration Principal Amount of Tender Notes Accepted for Purchase Percentage of Outstanding Tender Notes Purchased 4.750% Senior Notes due 2042 1 $ 827 $ 827 82.71% 3.250% Senior Notes due 2022 2 942 942 85.59% 3.750% Senior Notes due 2023 3 444 444 93.76% 3.250% Senior Notes due 2020 (1) 4 1,039 479 38.34% 4.000% Senior Notes due 2022 5 766 — 0.00% 4.450% Senior Notes due 2025 6 1,773 — 0.00% 4.850% Senior Notes due 2023 7 416 — 0.00% (1) Series prorated
Long-Term Debt, Net of Discounts	RAI and RJR Tobacco Total Long-Term Debt RAI’s and RJR Tobacco’s long-term debt is as follows: March 31, 2016 December 31, 2015 RAI 2.300% notes due 2017 $ 447 $ 447 2.300% notes due 2018 1,250 1,250 3.250% notes due 2020 771 1,250 3.250% notes due 2022 158 1,100 3.500% notes due 2016 415 415 3.750% notes due 2023 30 474 4.000% notes due 2022 1,000 1,000 4.450% notes due 2025 2,500 2,500 4.750% notes due 2042 173 1,000 4.850% notes due 2023 550 550 5.700% notes due 2035 750 750 5.850% notes due 2045 2,250 2,250 6.150% notes due 2043 550 550 6.750% notes due 2017 — 700 6.875% notes due 2020 641 641 7.000% notes due 2041 240 240 7.250% notes due 2037 450 450 7.750% notes due 2018 — 250 8.125% notes due 2019 * 669 669 8.125% notes due 2040 237 237 Total principal 13,081 16,723 Fair value adjustments 325 348 Unamortized discounts (29 ) (37 ) Unamortized debt issuance costs (74 ) (92 ) Total RAI long-term debt at carrying value $ 13,303 $ 16,942 RJR Tobacco 2.300% notes due 2017 $ 53 $ 53 3.500% notes due 2016 85 85 3.750% notes due 2023 26 26 6.875% notes due 2020 109 109 7.000% notes due 2041 10 10 8.125% notes due 2019* 81 81 8.125% notes due 2040 13 13 Total principal 377 377 Fair value adjustments 36 36 Total RJR Tobacco long-term debt at carrying value $ 413 $ 413 Total long-term debt at carrying value $ 13,716 $ 17,355 Less current maturities of long-term debt at carrying value 503 506 Total long-term debt (less current maturities) at carrying value $ 13,213 $ 16,849 * The interest rate payable on these notes generally is subject to adjustment from time to time (as detailed in the form of these notes) based upon the credit rating assigned to these notes, provided that in no event will (1) the interest rate for these notes be reduced below 8.125% or (2) the total increase in the interest rate on these notes exceed 2.0% above 8.125%.
Maturities of RAI 's and RJR Tobacco's Notes, Excluding Fair Value Adjustments and Unamortized Discounts and Debt Issuance Costs	As of March 31, 2016, the maturities of RAI’s and RJR Tobacco’s notes, excluding fair value adjustments and unamortized discounts and debt issuance costs, were as follows: Year RAI RJR Tobacco Total 2016 $ 415 $ 85 $ 500 2017 447 53 500 2018 1,250 — 1,250 2019 669 81 750 2020 1,412 109 1,521 2022 and thereafter 8,888 49 8,937 Total principal maturities $ 13,081 $ 377 $ 13,458

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
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 Reynolds Defendants as of March 31, 2016, compared with the number of cases pending against Reynolds Defendants as of December 31, 2015, as reported in RAI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on February 11, 2016, and a cross-reference to the discussion of each case type. Case Type U.S. Case Numbers as of March 31, 2016 Change in Number of Cases Since December 31, 2015 Increase/(Decrease) Individual Smoking and Health 119 1 West Virginia IPIC (Number of Plaintiffs)* 1 (approx. 564) No change Engle Progeny (Number of Plaintiffs)** 2,963 (approx. 3,851) (148) (195) Broin 2,488 (11) Class Action 33 5 Filter Cases 61 (3) Health-Care Cost Recovery 2 No change State Settlement Agreements—Enforcement and Validity; Adjustments 28 1 Other Litigation and Developments 14 3 * Includes as one case the approximately 564 cases pending as a consolidated action In Re: Tobacco Litigation Individual Personal Injury Cases West Virginia IPIC West Virginia IPIC ** The Engle
Verdicts In Individual Cases That Have Been Tried And Remain Pending	Plaintiff Case Name RJR Tobacco Allocation of Fault Lorillard Tobacco Allocation of Fault Compensatory Damages (as adjusted) (1) Punitive Damages Appeal Status Hiott 40% — $ 730,000 $ — Florida Supreme Court declined to accept jurisdiction of the case; the deadline to file a petition for writ of certiorari with the U.S. Supreme Court is May 2, 2016 Starr-Blundell 10% — 50,000 — Notice to invoke jurisdiction of Florida Supreme Court pending; stayed pending resolution of Soffer; Soffer Clayton 10% — 60,000 — First DCA affirmed the judgment of the trial court, per curiam; Florida Supreme Court issued order to show cause why it should not accept jurisdiction, quash and remand for reconsideration in light of Soffer Cohen 33.3% — 3,330,000 10,000,000 Florida Supreme Court accepted jurisdiction of the case, quashed the decision being reviewed, and reinstated the jury verdict; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is June 27, 2016 Buonomo 77.5% — 4,060,000 25,000,000 Florida Supreme Court accepted jurisdiction of the case, quashed the decision being reviewed, and reinstated the jury verdict; appeal of the reinstated punitive damages award pending in Fourth DCA; oral argument scheduled for July 19, 2016 Hallgren 25% — 500,000 750,000 Florida Supreme Court declined to accept jurisdiction; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is June 10, 2016 Sikes 51% — 3,520,000 2,000,000 Florida Supreme Court declined to accept jurisdiction of the case; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is May 2, 2016 Thibault 70% — 1,750,000 1,275,000 First DCA affirmed the judgment, per curiam; Florida Supreme Court declined to accept jurisdiction of the case; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is May 2, 2016 Cheeley 50% — 1,500,000 2,000,000 Fourth DCA affirmed judgment of trial court, per curiam; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is April 27, 2016 Ciccone 30% — 960,000 50,000 Remanded to Fifth DCA for further proceedings consistent with Florida Supreme Court's March 24, 2016 opinion; deadline to file a petition for writ of certiorari with the U.S. Supreme Court is June 22, 2016 Totals $ 16,460,000 $ 41,075,000 (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 of $26.9 million. The following chart lists judgments in all other individual Engle Plaintiff Case Name RJR Tobacco Allocation of Fault Lorillard Tobacco Allocation of Fault Compensatory Damages (as adjusted) (1) Punitive Damages Appeal Status Putney 30% — $ — $ — Reversed and remanded for further proceedings; Florida Supreme Court accepted jurisdiction; quashed the decision being reviewed and reinstated the verdict; defendants' motion for clarification granted on March 15, 2016, with an order stating that the remand was for reconsideration only on the issue of the statute of repose; deadline to file petition for writ of certiorari with the U.S. Supreme Court is June 13, 2016 Andy Allen 24% — 2,475,000 7,756,000 Reversed and remanded for new trial; new trial completed on November 26, 2014; pending - First DCA Soffer 40% — 2,000,000 — Remanded to First DCA for further proceedings consistent with Florida Supreme Court's March 17, 2016 opinion; deadline to file petition for writ of certiorari with the U.S. Supreme Court is June 15, 2016 Calloway 27% 18% 16,100,000 (2) — Fourth DCA affirmed compensatory award (with instructions to reduce to reflect the smoker's fault if plaintiff does not agree to new trial), set aside punitive damages, and remanded for partial new trial; motions for rehearing are pending Hancock 5% — 700 — Fourth DCA affirmed, per curiam; plaintiff did not seek further review James Smith 55% — 600,000 (2) 20,000 Pending – Eleventh Circuit Evers 60% 9% 2,950,000 12,360,000 Second DCA reinstated punitive damage award of $12.36 million the trial court had set aside; the verdict was reinstated on remand; deadline to file a notice to invoke the discretionary jurisdiction of the Florida Supreme Court is April 28, 2016 Schoeff 75% — 7,875,000 — Fourth DCA affirmed compensatory award, set aside punitive award, and remanded for further proceedings; notice to invoke the discretionary jurisdiction of Florida Supreme Court pending Marotta 58% — 3,480,000 — Pending - Florida Supreme Court Searcy 30% — 500,000 (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 en banc Skolnick 30% — — — Fourth DCA set aside judgment and ordered a partial new trial Grossman 75% — 15,350,000 (2) 22,500,000 Pending – Fourth DCA Gafney 33% 33% — — Fourth DCA reversed the judgment and remanded for a new trial; new trial has not been scheduled Bowden 30% — 1,500,000 — First DCA affirmed judgment of trial court, per curiam; plaintiff has indicated that she may move to have the mandate lifted in light of Soffer Burkhart 25% 10% 3,500,000 (2) 1,750,000 Pending – Eleventh Circuit Bakst (Odom) 75% — 4,504,000 14,000,000 Pending – Fourth DCA Robinson 71% — 16,900,000 16,900,000 Pending – First DCA Harris 15% 10% 1,100,000 (2) — Post-trial motions are pending (3) Wilcox 70% — 4,900,000 8,500,000 Pending – Third DCA Irimi 15% 15% — — Defendants' motion for new trial granted; pending - Fourth DCA Hubbird 50% — 3,000,000 (2) 25,000,000 Pending – Third DCA Lourie 3% 7% 137,000 — Pending – Second DCA Kerrivan 31% — 6,046,660 (2) 9,600,000 Post-trial motions are pending (3) Schleider 70% — 14,700,000 (2) — Pending – Third DCA Perrotto 20% 6% 1,063,000 — Post-trial motions are pending (3) Ellen Gray 50% — 3,000,000 — Post-trial motions are pending (3) Sowers 50% — 2,125,000 — Post-trial motions are pending (3) Caprio 20% 10% 167,700 — Pending - Fourth DCA Zamboni 30% — 102,000 — Final judgment has not been entered Pollari 43% — 4,250,000 1,500,000 Pending - Fourth DCA Gore 23% — 460,000 — Pending - Fourth DCA Ryan 65% — 21,500,000 25,000,000 Post-trial motions are pending (3) Hardin 13% — 100,880 — Pending - Third DCA McCoy 25% 20% 675,000 6,000,000 Pending - Fourth DCA Block 50% — 463,000 800,000 Pending - Fourth DCA Lewis 25% — 187,500 — Pending - Fifth DCA Cooper 40% — 1,200,000 — Pending - Fourth DCA Duignan 30% — 2,690,000 2,500,000 Pending - Second DCA O'Hara 85% — 14,700,000 20,000,000 Pending - First DCA Marchese 22.5% — 500,000 (2) 250,000 Post-trial motions are pending (3) Gordon 2% — 100 — Plaintiff did not seek further review Barbose 42.5% — 5,000,000 500,000 Pending - Second DCA Monroe 58% — 6,380,000 — Post-trial motions were denied; the deadline to file a notice of appeal is April 29, 2016 Ledoux 47% — 5,000,000 12,500,000 Pending - Third DCA Ewing 2% — 4,800 — Post-trial motions denied; final judgment has not been entered Ahrens 44% — 5,800,000 2,500,000 Pending - Second DCA Totals $ 183,537,340 $ 191,606,000 (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 and such fees and interest may be material. (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 (in millions) for 2014 and beyond: 2014 2015 2016 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 Master Settlement Agreement: Annual Payments (1) 8,004 8,004 8,004 Total $ 9,364 $ 9,364 $ 9,364 (1) RAI’s operating subsidiaries expenses and payments under the State Settlement Agreements for 2014 and 2015 and the projected expenses and payments for 2016 and beyond (in millions) are set forth below (2) 2014 2015 2016 2017 2018 2019 and thereafter Settlement expenses $ 1,917 $ 2,403 — — Settlement cash payments $ 1,985 $ 2,166 — — Projected settlement expenses $>2,800 $>3,100 $>3,300 $>3,300 Projected settlement cash payments $>3,100 $>2,800 $>3,100 $>3,300
Disputed Portion of MSA Payment Obligation	The approximate maximum principal amounts of RJR Tobacco’s and Lorillard Tobacco’s shares of the disputed NPM Adjustments for the years 2004 through 2014 (in millions), as currently calculated by the Independent Auditor, and the remaining amounts after the settlements of certain NPM Adjustments claims (see below), are as follows (1) RJR Tobacco Lorillard Tobacco Volume Year Disputed Remaining after settlements Disputed Remaining after settlements 2004 $ 562 $ 210 $ 111 $ 41 2005 445 166 76 29 2006 419 156 73 27 2007 435 166 83 32 2008 468 179 104 40 2009 472 180 107 41 2010 470 179 119 46 2011 422 161 88 34 2012 428 163 96 37 2013 455 173 91 35 2014 430 164 92 36

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Shareholders' Equity	Common Stock Paid-In Retained Earnings Accumulated Total Shareholders’ Equity Balance as of December 31, 2015 $ — $ 18,402 $ 188 $ (338 ) $ 18,252 Net income — — 3,565 — 3,565 Retirement benefits, net of $4 million tax benefit — — — (6 ) (6 ) Unrealized gain on long-term investments, net of tax — — — 1 1 Realized gain on long-term investments, net of $1 million tax expense — — — (2 ) (2 ) Realized loss on hedging instruments, net of $6 million tax expense — — — 11 11 Cumulative translation adjustment and other, net of $11 million tax expense — — — 22 22 Dividends - $0.42 per share — — (602 ) — (602 ) Common stock repurchased — (125 ) — — (125 ) Equity incentive award plan and stock-based compensation — 21 — — 21 Excess tax benefit on stock-based compensation plans — 26 — — 26 Balance as of March 31, 2016 $ — $ 18,324 $ 3,151 $ (312 ) $ 21,163 Common Paid-In Capital Accumulated Deficit Accumulated 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, net of $12 million tax benefit — — — (27 ) (27 ) Dividends - $0.335 per share — — (359 ) — (359 ) Common stock repurchased — (32 ) — — (32 ) Equity incentive award plan and stock-based compensation — 18 — — 18 Excess tax benefit on stock-based compensation plans — 14 — — 14 Balance as of March 31, 2015 $ — $ 6,200 $ (1,284 ) $ (397 ) $ 4,519
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, 2016 were as follows: Retirement Benefits Unrealized Loss on Long-Term Investments Realized Loss on Hedging Instruments Cumulative Translation Adjustment and Other Total Balance as of December 31, 2015 $ (244 ) $ (14 ) $ (11 ) $ (69 ) $ (338 ) Other comprehensive loss before reclassifications — 1 — (5 ) $ (4 ) Amounts reclassified from accumulated other comprehensive loss (6 ) (2 ) 11 27 30 Net current-period other comprehensive loss (6 ) (1 ) 11 22 26 Balance as of March 31, 2016 $ (250 ) $ (15 ) $ — $ (47 ) $ (312 ) The components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2015, were as follows: Retirement Benefits Unrealized 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 loss before reclassifications — — — (27 ) (27 ) Amounts reclassified from accumulated other comprehensive loss (6 ) — — — (6 ) Net current-period other comprehensive loss (6 ) — — (27 ) (33 ) Balance as of March 31, 2015 $ (300 ) $ (14 ) $ (12 ) $ (71 ) $ (397 )
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 2016 2015 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 ) Operating income Deferred taxes 4 4 Provision for income taxes Net of tax (6 ) (6 ) Net income Long-term investments: Realized gain on long-term investments (3 ) — Other (income) expense, net Deferred taxes 1 — Provision for income taxes Net of tax (2 ) — Net income Realized loss on hedging instruments: Forward starting interest rate contracts 17 — Other (income) expense, net Deferred taxes (6 ) — Provision for income taxes Net of tax 11 — Net income Cumulative translation adjustment: Derecognition of cumulative translation adjustment 27 — Gain on divestiture Total reclassifications $ 30 $ (6 ) Net income

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Information Related to Sales, Income, and Assets	Segment Data: For the Three Months Ended March 31, 2016 2015 Net sales: RJR Tobacco $ 2,411 $ 1,608 Santa Fe 218 171 American Snuff 216 201 All Other 72 77 Consolidated net sales $ 2,917 $ 2,057 Operating income (loss): RJR Tobacco $ 1,107 $ 588 Santa Fe 123 92 American Snuff 133 118 All Other (34 ) (61 ) Gain on divestiture 4,861 — Corporate expense (48 ) (44 ) Consolidated operating income $ 6,142 $ 693 Reconciliation to income from operations before income taxes: Consolidated operating income $ 6,142 $ 693 Interest and debt expense 174 91 Interest income (3 ) (1 ) Other (income) expense, net 252 (17 ) Income from operations before income taxes $ 5,719 $ 620

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2016
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, 2016 December 31, 2015 Accounts receivable, related party $ 31 $ 38 Due to related party 2 9 Deferred revenue, related party 25 33 Other current liabilities — 2 Significant transactions: For the Three Months Ended March 31, 2016 2015 Net sales $ 55 $ 82 Purchases 8 2 Contract manufacturing amendment fee 6 —

RAI Guaranteed, Unsecured Not38

RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements (Tables)	3 Months Ended
	Mar. 31, 2016
Guarantees [Abstract]
Condensed Consolidating Statements of Income	Condensed Consolidating Statements of Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net sales $ — $ 2,839 $ 49 $ (26 ) $ 2,862 Net sales, related party — 55 — — 55 Net sales — 2,894 49 (26 ) 2,917 Cost of products sold — 1,149 43 (27 ) 1,165 Selling, general and administrative expenses 16 401 48 — 465 Gain on divestiture — (4,843 ) (16 ) (2 ) (4,861 ) Amortization expense — 6 — — 6 Operating income (loss) (16 ) 6,181 (26 ) 3 6,142 Interest and debt expense 174 23 2 (25 ) 174 Interest income (26 ) (2 ) — 25 (3 ) Other (income) expense, net 240 (6 ) 7 11 252 Income (loss) from before income taxes (404 ) 6,166 (35 ) (8 ) 5,719 Provision for (benefit from) income taxes (142 ) 2,308 (12 ) — 2,154 Equity income from subsidiaries 3,827 — — (3,827 ) — Net income (loss) $ 3,565 $ 3,858 $ (23 ) $ (3,835 ) $ 3,565 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 from subsidiaries 454 20 — (474 ) — Net income (loss) $ 389 $ 517 $ (29 ) $ (488 ) $ 389
Condensed Consolidating Statements of Comprehensive Income	Condensed Consolidating Statements of Comprehensive Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net income (loss) $ 3,565 $ 3,858 $ (23 ) $ (3,835 ) $ 3,565 Other comprehensive income (loss), net of tax: Retirement benefits (6 ) (6 ) — 6 (6 ) Unrealized gain on long-term investments 1 1 — (1 ) 1 Realized gain on long-term investments (2 ) (2 ) — 2 (2 ) Realized loss on hedging instruments 11 — — — 11 Cumulative translation adjustment and other 22 22 33 (55 ) 22 Comprehensive income $ 3,591 $ 3,873 $ 10 $ (3,883 ) $ 3,591 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
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, 2016, were as follows: Components Amounts Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Defined benefit pension and postretirement plans: Amortization of prior service costs $ — $ (5 ) $ — $ — $ (5 ) Cost Amortization of prior service costs — (5 ) — — (5 ) Selling, general and administrative expenses — (10 ) — — (10 ) Operating income (loss) Deferred taxes — 4 — — 4 Provision for income taxes Net of tax — (6 ) — — (6 ) Net income (loss) Long-term investments: Realized gain on long-term investments — (3 ) — — (3 ) Other (income) expense, net Deferred taxes — 1 — — 1 Provision for income taxes Net of tax — (2 ) — — (2 ) Net income (loss) Realized loss on hedging instruments: Forward starting interest rate contracts 17 — — — 17 Other (income) expense, net Deferred taxes (6 ) — — — (6 ) Provision for income taxes Net of tax 11 — — — 11 Net income (loss) Cumulative translation adjustment: Derecognition of cumulative translation adjustment — — 27 — 27 Gain on divestiture Equity income (loss) from subsidiaries 19 27 — (46 ) — Equity income (loss) from subsidiaries Total reclassifications $ 30 $ 19 $ 27 $ (46 ) $ 30 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, 2015, were as follows: Components Amounts Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated 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 ) Operating income (loss) 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 Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Cash flows from (used in) operating activities $ (563 ) $ 2,009 $ (30 ) $ (283 ) $ 1,133 Cash flows from (used in) investing activities: Capital expenditures — (39 ) (4 ) — (43 ) Proceeds from settlement of short-term investments — 159 — — 159 Proceeds from divestiture 5,014 — — — 5,014 Return of intercompany investments 412 26 — (438 ) — Other, net 20 12 — (31 ) 1 Net cash flows from (used in) investing activities 5,446 158 (4 ) (469 ) 5,131 Cash flows from (used in) financing activities: Dividends paid on common stock (514 ) (247 ) (25 ) 272 (514 ) Repurchase of common stock (125 ) — — — (125 ) Early extinguishment of debt (3,642 ) — — — (3,642 ) Redemption premium for tender offer (118 ) — — — (118 ) Make-whole premium for early extinguishment of debt (88 ) — — — (88 ) Proceeds from termination of interest rate swaps — 66 — — 66 Debt financing fees (7 ) — — — (7 ) Excess tax benefit on stock-based compensation plans 26 — — — 26 Dividends paid on preferred stock (11 ) — — 11 — Distribution of equity — (412 ) (26 ) 438 — Other, net (11 ) (20 ) — 31 — Net cash flows used in financing activities (4,490 ) (613 ) (51 ) 752 (4,402 ) Effect of exchange rate changes on cash and cash equivalents — — 12 — 12 Net change in cash and cash equivalents 393 1,554 (73 ) — 1,874 Cash and cash equivalents at beginning of period 575 1,544 448 — 2,567 Cash and cash equivalents at end of period $ 968 $ 3,098 $ 375 $ — $ 4,441 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2015 Cash flows from 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 ) Excess tax benefit on stock-based compensation plans 14 — — — 14 Borrowings under revolving credit facility 300 — — — 300 Repayments of borrowings under revolving credit facility (300 ) — — — (300 ) Dividends paid on preferred stock (11 ) — — 11 — Distribution of equity — (185 ) — 185 — Other, net (11 ) (20 ) 20 11 — Net cash flows from (used in) financing activities (396 ) (684 ) 20 686 (374 ) Effect of exchange rate changes on cash and cash equivalents — — (32 ) — (32 ) 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 Balance Sheets	Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated March 31, 2016 Assets Cash and cash equivalents $ 968 $ 3,098 $ 375 $ — $ 4,441 Short-term investments — 14 — — 14 Accounts receivable — 72 8 — 80 Accounts receivable, related party — 31 — — 31 Other receivables 72 2,681 20 (2,743 ) 30 Inventories — 1,625 35 (2 ) 1,658 Deferred income taxes, net 7 979 6 — 992 Other current assets 11 272 75 (75 ) 283 Total current assets 1,058 8,772 519 (2,820 ) 7,529 Property, plant and equipment, net 3 1,234 32 — 1,269 Trademarks and other intangible assets, net — 29,461 — — 29,461 Goodwill — 15,977 16 — 15,993 Long-term intercompany notes receivable 1,562 159 — (1,721 ) — Investment in subsidiaries 37,154 532 — (37,686 ) — Other assets and deferred charges 165 134 35 (178 ) 156 Total assets $ 39,942 $ 56,269 $ 602 $ (42,405 ) $ 54,408 Liabilities and shareholders’ equity Accounts payable $ 3 $ 130 $ 5 $ — $ 138 Tobacco settlement accruals — 3,446 — — 3,446 Due to related party — 2 — — 2 Deferred revenue, related party — 25 — — 25 Current maturities of long-term debt 417 86 — — 503 Dividends payable on common stock 599 — — — 599 Income taxes payable 1,766 172 — (78 ) 1,860 Other current liabilities 2,858 882 34 (2,743 ) 1,031 Total current liabilities 5,643 4,743 39 (2,821 ) 7,604 Long-term intercompany notes payable 159 1,240 322 (1,721 ) — Long-term debt (less current maturities) 12,886 327 — — 13,213 Deferred income taxes, net — 10,460 — (175 ) 10,285 Long-term retirement benefits (less current portion) 52 1,812 53 — 1,917 Other noncurrent liabilities 39 187 — — 226 Shareholders’ equity 21,163 37,500 188 (37,688 ) 21,163 Total liabilities and shareholders’ equity $ 39,942 $ 56,269 $ 602 $ (42,405 ) $ 54,408 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated December 31, 2015 Assets Cash and cash equivalents $ 575 $ 1,544 $ 448 $ — $ 2,567 Short-term investments — 149 — — 149 Accounts receivable — 62 6 — 68 Accounts receivable, related party — 38 — — 38 Other receivables 70 3,459 91 (3,585 ) 35 Inventories — 1,694 44 (4 ) 1,734 Deferred income taxes, net 14 1,011 7 — 1,032 Other current assets 116 323 129 (4 ) 564 Total current assets 775 8,280 725 (3,593 ) 6,187 Property, plant and equipment, net 3 1,223 29 — 1,255 Trademarks and other intangible assets, net — 29,467 — — 29,467 Goodwill — 15,976 17 — 15,993 Long-term intercompany notes receivable 1,583 169 — (1,752 ) — Investment in subsidiaries 37,151 662 — (37,813 ) — Other assets and deferred charges 175 212 31 (188 ) 230 Total assets $ 39,687 $ 55,989 $ 802 $ (43,346 ) $ 53,132 Liabilities and shareholders’ equity Accounts payable $ 2 $ 173 $ 4 $ — $ 179 Tobacco settlement accruals — 2,816 — — 2,816 Due to related party — 9 — — 9 Deferred revenue, related party — 33 — — 33 Current maturities of long-term debt 420 86 — — 506 Dividends payable on common stock 514 — — — 514 Other current liabilities 3,707 1,039 79 (3,591 ) 1,234 Total current liabilities 4,643 4,156 83 (3,591 ) 5,291 Long-term intercompany notes payable 169 1,260 323 (1,752 ) — Long-term debt (less current maturities) 16,522 327 — — 16,849 Deferred income taxes, net — 10,421 — (185 ) 10,236 Long-term retirement benefits (less current portion) 57 2,153 55 — 2,265 Other noncurrent liabilities 44 195 — — 239 Shareholders’ equity 18,252 37,477 341 (37,818 ) 18,252 Total liabilities and shareholders’ equity $ 39,687 $ 55,989 $ 802 $ (43,346 ) $ 53,132

RJR Tobacco Guaranteed, Unsec39

RJR Tobacco Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements (Tables)	3 Months Ended
	Mar. 31, 2016
Condensed Consolidating Statements of Income	Condensed Consolidating Statements of Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net sales $ — $ 2,839 $ 49 $ (26 ) $ 2,862 Net sales, related party — 55 — — 55 Net sales — 2,894 49 (26 ) 2,917 Cost of products sold — 1,149 43 (27 ) 1,165 Selling, general and administrative expenses 16 401 48 — 465 Gain on divestiture — (4,843 ) (16 ) (2 ) (4,861 ) Amortization expense — 6 — — 6 Operating income (loss) (16 ) 6,181 (26 ) 3 6,142 Interest and debt expense 174 23 2 (25 ) 174 Interest income (26 ) (2 ) — 25 (3 ) Other (income) expense, net 240 (6 ) 7 11 252 Income (loss) from before income taxes (404 ) 6,166 (35 ) (8 ) 5,719 Provision for (benefit from) income taxes (142 ) 2,308 (12 ) — 2,154 Equity income from subsidiaries 3,827 — — (3,827 ) — Net income (loss) $ 3,565 $ 3,858 $ (23 ) $ (3,835 ) $ 3,565 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 from subsidiaries 454 20 — (474 ) — Net income (loss) $ 389 $ 517 $ (29 ) $ (488 ) $ 389
Condensed Consolidating Statements of Comprehensive Income	Condensed Consolidating Statements of Comprehensive Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net income (loss) $ 3,565 $ 3,858 $ (23 ) $ (3,835 ) $ 3,565 Other comprehensive income (loss), net of tax: Retirement benefits (6 ) (6 ) — 6 (6 ) Unrealized gain on long-term investments 1 1 — (1 ) 1 Realized gain on long-term investments (2 ) (2 ) — 2 (2 ) Realized loss on hedging instruments 11 — — — 11 Cumulative translation adjustment and other 22 22 33 (55 ) 22 Comprehensive income $ 3,591 $ 3,873 $ 10 $ (3,883 ) $ 3,591 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
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, 2016, were as follows: Components Amounts Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Defined benefit pension and postretirement plans: Amortization of prior service costs $ — $ (5 ) $ — $ — $ (5 ) Cost Amortization of prior service costs — (5 ) — — (5 ) Selling, general and administrative expenses — (10 ) — — (10 ) Operating income (loss) Deferred taxes — 4 — — 4 Provision for income taxes Net of tax — (6 ) — — (6 ) Net income (loss) Long-term investments: Realized gain on long-term investments — (3 ) — — (3 ) Other (income) expense, net Deferred taxes — 1 — — 1 Provision for income taxes Net of tax — (2 ) — — (2 ) Net income (loss) Realized loss on hedging instruments: Forward starting interest rate contracts 17 — — — 17 Other (income) expense, net Deferred taxes (6 ) — — — (6 ) Provision for income taxes Net of tax 11 — — — 11 Net income (loss) Cumulative translation adjustment: Derecognition of cumulative translation adjustment — — 27 — 27 Gain on divestiture Equity income (loss) from subsidiaries 19 27 — (46 ) — Equity income (loss) from subsidiaries Total reclassifications $ 30 $ 19 $ 27 $ (46 ) $ 30 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, 2015, were as follows: Components Amounts Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated 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 ) Operating income (loss) 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 Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Cash flows from (used in) operating activities $ (563 ) $ 2,009 $ (30 ) $ (283 ) $ 1,133 Cash flows from (used in) investing activities: Capital expenditures — (39 ) (4 ) — (43 ) Proceeds from settlement of short-term investments — 159 — — 159 Proceeds from divestiture 5,014 — — — 5,014 Return of intercompany investments 412 26 — (438 ) — Other, net 20 12 — (31 ) 1 Net cash flows from (used in) investing activities 5,446 158 (4 ) (469 ) 5,131 Cash flows from (used in) financing activities: Dividends paid on common stock (514 ) (247 ) (25 ) 272 (514 ) Repurchase of common stock (125 ) — — — (125 ) Early extinguishment of debt (3,642 ) — — — (3,642 ) Redemption premium for tender offer (118 ) — — — (118 ) Make-whole premium for early extinguishment of debt (88 ) — — — (88 ) Proceeds from termination of interest rate swaps — 66 — — 66 Debt financing fees (7 ) — — — (7 ) Excess tax benefit on stock-based compensation plans 26 — — — 26 Dividends paid on preferred stock (11 ) — — 11 — Distribution of equity — (412 ) (26 ) 438 — Other, net (11 ) (20 ) — 31 — Net cash flows used in financing activities (4,490 ) (613 ) (51 ) 752 (4,402 ) Effect of exchange rate changes on cash and cash equivalents — — 12 — 12 Net change in cash and cash equivalents 393 1,554 (73 ) — 1,874 Cash and cash equivalents at beginning of period 575 1,544 448 — 2,567 Cash and cash equivalents at end of period $ 968 $ 3,098 $ 375 $ — $ 4,441 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2015 Cash flows from 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 ) Excess tax benefit on stock-based compensation plans 14 — — — 14 Borrowings under revolving credit facility 300 — — — 300 Repayments of borrowings under revolving credit facility (300 ) — — — (300 ) Dividends paid on preferred stock (11 ) — — 11 — Distribution of equity — (185 ) — 185 — Other, net (11 ) (20 ) 20 11 — Net cash flows from (used in) financing activities (396 ) (684 ) 20 686 (374 ) Effect of exchange rate changes on cash and cash equivalents — — (32 ) — (32 ) 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 Balance Sheets	Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated March 31, 2016 Assets Cash and cash equivalents $ 968 $ 3,098 $ 375 $ — $ 4,441 Short-term investments — 14 — — 14 Accounts receivable — 72 8 — 80 Accounts receivable, related party — 31 — — 31 Other receivables 72 2,681 20 (2,743 ) 30 Inventories — 1,625 35 (2 ) 1,658 Deferred income taxes, net 7 979 6 — 992 Other current assets 11 272 75 (75 ) 283 Total current assets 1,058 8,772 519 (2,820 ) 7,529 Property, plant and equipment, net 3 1,234 32 — 1,269 Trademarks and other intangible assets, net — 29,461 — — 29,461 Goodwill — 15,977 16 — 15,993 Long-term intercompany notes receivable 1,562 159 — (1,721 ) — Investment in subsidiaries 37,154 532 — (37,686 ) — Other assets and deferred charges 165 134 35 (178 ) 156 Total assets $ 39,942 $ 56,269 $ 602 $ (42,405 ) $ 54,408 Liabilities and shareholders’ equity Accounts payable $ 3 $ 130 $ 5 $ — $ 138 Tobacco settlement accruals — 3,446 — — 3,446 Due to related party — 2 — — 2 Deferred revenue, related party — 25 — — 25 Current maturities of long-term debt 417 86 — — 503 Dividends payable on common stock 599 — — — 599 Income taxes payable 1,766 172 — (78 ) 1,860 Other current liabilities 2,858 882 34 (2,743 ) 1,031 Total current liabilities 5,643 4,743 39 (2,821 ) 7,604 Long-term intercompany notes payable 159 1,240 322 (1,721 ) — Long-term debt (less current maturities) 12,886 327 — — 13,213 Deferred income taxes, net — 10,460 — (175 ) 10,285 Long-term retirement benefits (less current portion) 52 1,812 53 — 1,917 Other noncurrent liabilities 39 187 — — 226 Shareholders’ equity 21,163 37,500 188 (37,688 ) 21,163 Total liabilities and shareholders’ equity $ 39,942 $ 56,269 $ 602 $ (42,405 ) $ 54,408 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated December 31, 2015 Assets Cash and cash equivalents $ 575 $ 1,544 $ 448 $ — $ 2,567 Short-term investments — 149 — — 149 Accounts receivable — 62 6 — 68 Accounts receivable, related party — 38 — — 38 Other receivables 70 3,459 91 (3,585 ) 35 Inventories — 1,694 44 (4 ) 1,734 Deferred income taxes, net 14 1,011 7 — 1,032 Other current assets 116 323 129 (4 ) 564 Total current assets 775 8,280 725 (3,593 ) 6,187 Property, plant and equipment, net 3 1,223 29 — 1,255 Trademarks and other intangible assets, net — 29,467 — — 29,467 Goodwill — 15,976 17 — 15,993 Long-term intercompany notes receivable 1,583 169 — (1,752 ) — Investment in subsidiaries 37,151 662 — (37,813 ) — Other assets and deferred charges 175 212 31 (188 ) 230 Total assets $ 39,687 $ 55,989 $ 802 $ (43,346 ) $ 53,132 Liabilities and shareholders’ equity Accounts payable $ 2 $ 173 $ 4 $ — $ 179 Tobacco settlement accruals — 2,816 — — 2,816 Due to related party — 9 — — 9 Deferred revenue, related party — 33 — — 33 Current maturities of long-term debt 420 86 — — 506 Dividends payable on common stock 514 — — — 514 Other current liabilities 3,707 1,039 79 (3,591 ) 1,234 Total current liabilities 4,643 4,156 83 (3,591 ) 5,291 Long-term intercompany notes payable 169 1,260 323 (1,752 ) — Long-term debt (less current maturities) 16,522 327 — — 16,849 Deferred income taxes, net — 10,421 — (185 ) 10,236 Long-term retirement benefits (less current portion) 57 2,153 55 — 2,265 Other noncurrent liabilities 44 195 — — 239 Shareholders’ equity 18,252 37,477 341 (37,818 ) 18,252 Total liabilities and shareholders’ equity $ 39,687 $ 55,989 $ 802 $ (43,346 ) $ 53,132
RJR Tobacco
Condensed Consolidating Statements of Income	Condensed Consolidating Statements of Income (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net sales $ — $ 2,383 $ — $ 524 $ (45 ) $ 2,862 Net sales, related party — 55 — — — 55 Net sales — 2,438 — 524 (45 ) 2,917 Cost of products sold — 1,017 — 194 (46 ) 1,165 Selling, general and administrative expenses, net 16 635 — (186 ) — 465 Gain on divestiture — — — (4,861 ) — (4,861 ) Amortization expense — 4 — 2 — 6 Operating income (loss) (16 ) 782 — 5,375 1 6,142 Interest and debt expense 174 — — 26 (26 ) 174 Interest income (26 ) (2 ) (1 ) — 26 (3 ) Other (income) expense, net 240 4 (10 ) 7 11 252 Income (loss) before income taxes (404 ) 780 11 5,342 (10 ) 5,719 Provision for (benefit from) income taxes (142 ) 327 — 1,969 — 2,154 Equity income from subsidiaries 3,827 184 656 — (4,667 ) — Net income $ 3,565 $ 637 $ 667 $ 3,373 $ (4,677 ) $ 3,565 For the Three Months Ended March 31, 2015 Net sales $ — $ 1,621 $ — $ 434 $ (80 ) $ 1,975 Net sales, related party — 82 — — — 82 Net sales — 1,703 — 434 (80 ) 2,057 Cost of products sold — 758 — 169 (77 ) 850 Selling, general and administrative expenses 19 452 — 40 — 511 Amortization expense — 1 — 2 — 3 Operating income (loss) (19 ) 492 — 223 (3 ) 693 Interest and debt expense 91 5 — 15 (20 ) 91 Interest income (19 ) (1 ) (1 ) — 20 (1 ) Other (income) expense, net 1 — (10 ) (18 ) 10 (17 ) Income (loss) before income taxes (92 ) 488 11 226 (13 ) 620 Provision for (benefit from) income taxes (27 ) 176 — 82 — 231 Equity income from subsidiaries 454 78 388 — (920 ) — Net income $ 389 $ 390 $ 399 $ 144 $ (933 ) $ 389
Condensed Consolidating Statements of Comprehensive Income	Condensed Consolidating Statements of Comprehensive Income (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Net income $ 3,565 $ 637 $ 667 $ 3,373 $ (4,677 ) $ 3,565 Other comprehensive income (loss), net of tax: Retirement benefits (6 ) (6 ) (6 ) — 12 (6 ) Unrealized gain on long-term investments 1 1 1 — (2 ) 1 Realized gain on long-term investments (2 ) (2 ) (2 ) 4 (2 ) Realized loss on hedging instruments 11 — — — — 11 Cumulative translation adjustment and other 22 21 22 22 (65 ) 22 Comprehensive income $ 3,591 $ 651 $ 682 $ 3,395 $ (4,728 ) $ 3,591 For the Three Months Ended March 31, 2015 Net income $ 389 $ 390 $ 399 $ 144 $ (933 ) $ 389 Other comprehensive income (loss), net of tax: Retirement benefits (6 ) (5 ) (5 ) — 10 (6 ) Cumulative translation adjustment and other (27 ) (27 ) (26 ) (27 ) 80 (27 ) Comprehensive income $ 356 $ 358 $ 368 $ 117 $ (843 ) $ 356
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, 2016, were as follows: Components Amounts Reclassified Affected Line Item Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated Defined benefit pension and postretirement plans: Amortization of prior service costs $ — $ (5 ) $ — $ — $ — $ (5 ) Cost Amortization of prior service costs — (5 ) — — — (5 ) Selling, general and administrative expenses, net — (10 ) — — — (10 ) Operating income (loss) Deferred taxes — 4 — — — 4 Provision for income taxes Net of tax — (6 ) — — — (6 ) Net income (loss) Long-term investments: Realized gain on long-term investments — (3 ) — — — (3 ) Other (income) expense, net Deferred taxes — 1 — — — 1 Provision for income taxes Net of tax — (2 ) — — — (2 ) Net income (loss) Realized loss on hedging instruments: Forward starting interest rate contracts 17 — — — — 17 Other (income) expense, net Deferred taxes (6 ) — — — — (6 ) Provision for income taxes Net of tax 11 — — — — 11 Net income (loss) Cumulative translation adjustment: Derecognition of cumulative translation adjustment — — — 27 — 27 Gain on divestiture Equity income (loss) from subsidiaries 19 27 19 — (65 ) — Equity income (loss) from subsidiaries Total reclassifications $ 30 $ 19 $ 19 $ 27 $ (65 ) $ 30 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, 2015, were as follows: Components Amounts Reclassified Affected Line Item Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated Defined benefit pension and postretirement plans: Amortization of prior service costs $ — $ (5 ) $ — $ — $ — $ (5 ) Cost Amortization of prior service costs — (5 ) — — — (5 ) Selling, general and administrative expenses — (10 ) — — — (10 ) Operating income (loss) Deferred taxes — 4 — — — 4 Provision for income taxes Equity income (loss) from subsidiaries (6 ) — (6 ) — 12 — Equity income (loss) from subsidiaries Total reclassifications $ (6 ) $ (6 ) $ (6 ) $ — $ 12 $ (6 ) Net income (loss)
Condensed Consolidating Statements of Cash Flows	Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2016 Cash flows from (used in) operating activities $ (563 ) $ 1,762 $ 37 $ 315 $ (418 ) $ 1,133 Cash flows from (used in) investing activities: Capital expenditures — (29 ) — (14 ) — (43 ) Proceeds from settlement of short-term investments — 159 — — — 159 Proceeds from divestiture 5,014 — — — — 5,014 Return of intercompany investments 412 495 598 — (1,505 ) — Other, net 20 1 8 11 (39 ) 1 Net cash flows from (used in) investing activities 5,446 626 606 (3 ) (1,544 ) 5,131 Cash flows from (used in) financing activities: Dividends paid on common stock (514 ) — (247 ) (160 ) 407 (514 ) Repurchase of common stock (125 ) — — — — (125 ) Early extinguishment of debt (3,642 ) — — — — (3,642 ) Redemption premium for tender offer (118 ) — — — — (118 ) Make-whole premium for early extinguishment of debt (88 ) — — — — (88 ) Proceeds from termination of interest rate swaps — 66 — — — 66 Debt financing fees (7 ) — — — — (7 ) Excess tax benefit on stock-based compensation plans 26 — — — — 26 Dividends paid on preferred stock (11 ) — — — 11 — Distribution of equity — (580 ) (412 ) (513 ) 1,505 — Other, net (11 ) — — (28 ) 39 — Net cash flows used in financing activities (4,490 ) (514 ) (659 ) (701 ) 1,962 (4,402 ) Effect of exchange rate changes on cash and cash equivalents — — — 12 — 12 Net change in cash and cash equivalents 393 1,874 (16 ) (377 ) — 1,874 Cash and cash equivalents at beginning of period 575 809 19 1,164 — 2,567 Cash and cash equivalents at end of period $ 968 $ 2,683 $ 3 $ 787 $ — $ 4,441 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Three Months Ended March 31, 2015 Cash flows from operating activities $ 480 $ 975 $ 473 $ 171 $ (1,019 ) $ 1,080 Cash flows from (used in) investing activities: Capital expenditures — (17 ) — (12 ) 3 (26 ) Return of intercompany investments 185 10 184 — (379 ) — Other, net — 1 8 11 (19 ) 1 Net cash flows from (used in) investing activities 185 (6 ) 192 (1 ) (395 ) (25 ) Cash flows (used in) from financing activities: Dividends paid on common stock (356 ) (461 ) (479 ) (65 ) 1,005 (356 ) Repurchase of common stock (32 ) — — — — (32 ) Borrowings under revolving credit facility 300 — — — — 300 Repayments of borrowings under revolving credit facility (300 ) — — — — (300 ) Excess tax benefit on stock-based compensation 14 — — — — 14 Dividends paid on preferred stock (11 ) — — — 11 — Distribution of equity — (184 ) (185 ) (10 ) 379 — Other, net (11 ) — — (8 ) 19 — Net cash flows used in financing activities (396 ) (645 ) (664 ) (83 ) 1,414 (374 ) Effect of exchange rate changes on cash and cash equivalents — — — (32 ) — (32 ) Net change in cash and cash equivalents 269 324 1 55 — 649 Cash and cash equivalents at beginning of period 102 327 3 534 — 966 Cash and cash equivalents at end of period $ 371 $ 651 $ 4 $ 589 $ — $ 1,615
Condensed Consolidating Balance Sheets	Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated March 31, 2016 Assets Cash and cash equivalents $ 968 $ 2,683 $ 3 $ 787 $ — $ 4,441 Short-term investments — 14 — — — 14 Accounts receivable — 38 — 42 — 80 Accounts receivable, related party — 31 — — — 31 Other receivables 72 26 17 4,994 (5,079 ) 30 Inventories — 912 — 748 (2 ) 1,658 Deferred income taxes, net 7 884 1 100 — 992 Other current assets 11 229 — 43 283 Total current assets 1,058 4,817 21 6,714 (5,081 ) 7,529 Property, plant and equipment, net 3 805 — 461 — 1,269 Trademarks and other intangible assets, net — 342 — 29,119 — 29,461 Goodwill — 3,453 9,853 2,687 — 15,993 Long-term intercompany notes receivable 1,562 — 82 159 (1,803 ) — Investment in subsidiaries 37,154 22,724 24,244 — (84,122 ) — Other assets and deferred charges 165 650 12 13 (684 ) 156 Total assets $ 39,942 $ 32,791 $ 34,212 $ 39,153 $ (91,690 ) $ 54,408 Liabilities and shareholders’ equity Accounts payable $ 3 $ 116 $ — $ 19 $ — $ 138 Tobacco settlement accruals — 3,268 — 178 — 3,446 Due to related party — 2 — — — 2 Deferred revenue, related party — 25 — — — 25 Current maturities of long-term debt 417 86 — — — 503 Dividends payable on common stock 599 — — — — 599 Income taxes payable 1,766 46 — 51 (3 ) 1,860 Other current liabilities 2,858 2,978 52 222 (5,079 ) 1,031 Total current liabilities 5,643 6,521 52 470 (5,082 ) 7,604 Long-term intercompany notes payable 159 — — 1,644 (1,803 ) — Long-term debt (less current maturities) 12,886 327 — — — 13,213 Deferred income taxes, net — 1 — 10,965 (681 ) 10,285 Long-term retirement benefits (less current portion) 52 1,707 29 129 — 1,917 Other noncurrent liabilities 39 164 — 23 — 226 Shareholders’ equity 21,163 24,071 34,131 25,922 (84,124 ) 21,163 Total liabilities and shareholders’ equity $ 39,942 $ 32,791 $ 34,212 $ 39,153 $ (91,690 ) $ 54,408 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated December 31, 2015 Assets Cash and cash equivalents $ 575 $ 809 $ 19 $ 1,164 $ — $ 2,567 Short-term investments — 149 — — — 149 Accounts receivable — 48 — 20 — 68 Accounts receivable, related party — 38 — — — 38 Other receivables 70 30 17 4,890 (4,972 ) 35 Inventories — 941 — 797 (4 ) 1,734 Deferred income taxes, net 14 928 1 89 — 1,032 Other current assets 116 236 — 212 — 564 Total current assets 775 3,179 37 7,172 (4,976 ) 6,187 Property, plant and equipment, net 3 792 — 460 — 1,255 Trademarks and other intangible assets, net — 346 — 29,121 — 29,467 Goodwill — 3,453 9,853 2,687 — 15,993 Long-term intercompany notes receivable 1,583 — 90 169 (1,842 ) — Investment in subsidiaries 37,151 23,199 24,276 — (84,626 ) — Other assets and deferred charges 175 783 13 9 (750 ) 230 Total assets $ 39,687 $ 31,752 $ 34,269 $ 39,618 $ (92,194 ) $ 53,132 Liabilities and shareholders’ equity Accounts payable $ 2 $ 146 $ — $ 31 $ — $ 179 Tobacco settlement accruals — 2,673 — 143 — 2,816 Due to related party — 9 — — — 9 Deferred revenue, related party — 33 — — — 33 Current maturities of long-term debt 420 86 — — — 506 Dividends payable on common stock 514 — — — — 514 Other current liabilities 3,707 2,189 31 284 (4,977 ) 1,234 Total current liabilities 4,643 5,136 31 458 (4,977 ) 5,291 Long-term intercompany notes payable 169 — — 1,673 (1,842 ) — Long-term debt (less current maturities) 16,522 327 — — — 16,849 Deferred income taxes, net — 1 — 10,981 (746 ) 10,236 Long-term retirement benefits (less current portion) 57 2,036 30 142 — 2,265 Other noncurrent liabilities 44 182 — 13 — 239 Shareholders’ equity 18,252 24,070 34,208 26,351 (84,629 ) 18,252 Total liabilities and shareholders’ equity $ 39,687 $ 31,752 $ 34,269 $ 39,618 $ (92,194 ) $ 53,132

Business and Summary of Signi40

Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	Jan. 13, 2016USD ($)	Oct. 31, 2015USD ($)	Aug. 31, 2015	Jun. 12, 2015USD ($)shares	Dec. 31, 2012	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Asset sale				$ 7,100		$ 5,014
BAT investment				$ 4,700
Stock split ratio			2	2
Common stock, stock split						two-for-one
Percentage of allocable shares					49.87%
NPM performance adjustment						$ 69	$ 66
NPM Adjustment credits		$ 290
Agreement period		4 years
NPM Additional adjustment credits recognized						$ 22
Defined benefit plan corridor percentage						10.00%
Expected pension contributions, current remaining fiscal year								$ 335
Pension contributions						$ 327
Debt issuance costs						74		92
RJR Tobacco and Santa Fe
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
NPM Adjustment credits						$ 0	$ 70	$ 93
JTI Holding
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Asset sale	$ 5,000
BAT
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Common stock shares issued | shares				77,680,259
BAT Affiliate
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Percentage of RAI's outstanding common stock				42.00%
Lorillard Inc.
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Cash paid to acquire business				$ 25,800

Certain Component of Cost of Pr

Certain Component of Cost of Products Sold (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accounting Policies [Abstract]
State Settlement Agreements	$ 630	$ 394
FDA user fees	$ 50	$ 35

Components of Pension Benefits

Components of Pension Benefits and Postretirement Benefits (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 4	$ 6
Interest cost	74	64
Expected return on plan assets	(93)	(88)
Amortization of prior service cost (credit)	1	1
Total benefit income	(14)	(17)
Postretirement Benefit
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	1
Interest cost	13	12
Expected return on plan assets	(3)	(3)
Amortization of prior service cost (credit)	$ (11)	(11)
Total benefit income		$ (1)

Sale of International Rights 43

Sale of International Rights to the Natural American Spirit Brand - Additional Information (Detail) - USD ($) $ in Millions	Jan. 13, 2016	Jun. 12, 2015	Mar. 31, 2016
Sale Of International Brand Rights [Line Items]
Proceeds from divestiture		$ 7,100	$ 5,014
JTI Holding
Sale Of International Brand Rights [Line Items]
Proceeds from divestiture	$ 5,000
NAS Brand | JTI Holding
Sale Of International Brand Rights [Line Items]
Proceeds from divestiture	$ 5,000
Transaction period	5 years

Summary of Pre-tax Gain (Detail

Summary of Pre-tax Gain (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Discontinued Operations And Disposal Groups [Abstract]
Purchase price	$ 5,015
Net assets and liabilities divested	(154)
Gain on divestiture	$ 4,861

Fair Value of Financial Assets

Fair Value of Financial Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Cash and cash equivalents:
Cash equivalents	$ 4,394	$ 2,454
Short-term investments:
Short-term investments	14	149
Other assets and deferred charges:
Mortgage-backed security	10	10
Marketable equity security		1
Interest rate swaps		53
Level 1
Cash and cash equivalents:
Cash equivalents	4,394	2,454
Other assets and deferred charges:
Marketable equity security		1
Level 2
Other assets and deferred charges:
Interest rate swaps		53
Level 3
Other assets and deferred charges:
Mortgage-backed security	10	10
Corporate debt securities
Short-term investments:
Short-term investments		96
Corporate debt securities | Level 2
Short-term investments:
Short-term investments		96
U.S. Governmental agency obligations
Short-term investments:
Short-term investments		43
U.S. Governmental agency obligations | Level 2
Short-term investments:
Short-term investments		43
Commercial paper
Short-term investments:
Short-term investments		10
Commercial paper | Level 2
Short-term investments:
Short-term investments		10
Auction Rate Securities
Short-term investments:
Short-term investments	14
Other assets and deferred charges:
Financial assets, fair value	59	79
Auction Rate Securities | Level 3
Short-term investments:
Short-term investments	14
Other assets and deferred charges:
Financial assets, fair value	$ 59	$ 79

Fair Value - Additional Informa

Fair Value - Additional Information (Detail)	Jun. 12, 2015	Mar. 31, 2016USD ($)Security	Dec. 31, 2015USD ($)
Derivative [Line Items]
Fair value transfers between levels		$ 0	$ 0
Number of auction rate securities linked to credit risk | Security		1
Estimated fair value of RAI’s outstanding debt		$ 15,200,000,000	$ 18,200,000,000
Debt weighted average interest rate		4.90%	4.60%
Proceeds from termination of interest rate swaps		$ 66,000,000
8.125% guaranteed, notes due 2019 | RJR Tobacco | Lorillard Tobacco
Derivative [Line Items]
Debt instrument, interest rate	8.125%
Debt instrument description of variable rate basis		one-month LIBOR
Decrease in interest expense		$ 3,000,000
Proceeds from termination of interest rate swaps		66,000,000
8.125% guaranteed, notes due 2019 | RJR Tobacco | Lorillard Tobacco | One-month LIBOR
Derivative [Line Items]
Debt instrument, marginal interest rate	4.625%
Interest Rate Swap | 8.125% guaranteed, notes due 2019 | RJR Tobacco | Lorillard Tobacco
Derivative [Line Items]
Debt covered by fixed interest rate		$ 0

Financial Assets Classified as

Financial Assets Classified as Level 3 Investments (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 110	$ 115
Gross Unrealized Loss	(27)	(26)
Estimated Fair Value	83	89
Auction Rate Securities
Schedule of Available-for-sale Securities [Line Items]
Cost	95	99
Gross Unrealized Loss	(22)	(20)
Estimated Fair Value	73	79
Mortgage Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Cost	15	16
Gross Unrealized Loss	(5)	(6)
Estimated Fair Value	$ 10	$ 10

Changes in Carrying Amounts of

Changes in Carrying Amounts of Goodwill by Segment (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Goodwill [Line Items]
Goodwill	$ 19,784	$ 19,784
Less: accumulated impairment charges	(3,791)	(3,791)
Net goodwill balance	15,993	15,993
RJR Tobacco
Goodwill [Line Items]
Goodwill	17,069	17,069
Less: accumulated impairment charges	(3,763)	(3,763)
Net goodwill balance	13,306	13,306
Santa Fe
Goodwill [Line Items]
Goodwill	197	197
Net goodwill balance	197	197
American Snuff
Goodwill [Line Items]
Goodwill	2,501	2,501
Less: accumulated impairment charges	(28)	(28)
Net goodwill balance	2,473	2,473
All Other
Goodwill [Line Items]
Goodwill	17	17
Net goodwill balance	$ 17	$ 17

Carrying Amount and Changes of

Carrying Amount and Changes of Trademarks and Other Indefinite-Lived Assets (Detail) $ in Millions	Mar. 31, 2016USD ($)
Trademarks
Indefinite Lived Intangible Assets By Major Class [Line Items]
Beginning Balance	$ 29,098
Ending Balance	29,098
Other
Indefinite Lived Intangible Assets By Major Class [Line Items]
Beginning Balance	87
Ending Balance	87
RJR Tobacco | Trademarks
Indefinite Lived Intangible Assets By Major Class [Line Items]
Beginning Balance	27,826
Ending Balance	27,826
RJR Tobacco | Other
Indefinite Lived Intangible Assets By Major Class [Line Items]
Beginning Balance	87
Ending Balance	87
Santa Fe | Trademarks
Indefinite Lived Intangible Assets By Major Class [Line Items]
Beginning Balance	136
Ending Balance	136
American Snuff | Trademarks
Indefinite Lived Intangible Assets By Major Class [Line Items]
Beginning Balance	1,136
Ending Balance	$ 1,136

Carrying Amount and Changes o50

Carrying Amount and Changes of Trademarks and Other Assets (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Finite Lived Intangible Assets [Line Items]
Beginning Balance	$ 282
Amortization	(6)	$ (3)
Ending Balance	276
Trademarks
Finite Lived Intangible Assets [Line Items]
Beginning Balance	23
Amortization	(2)
Ending Balance	21
Other
Finite Lived Intangible Assets [Line Items]
Beginning Balance	259
Amortization	(4)
Ending Balance	255
RJR Tobacco | Trademarks
Finite Lived Intangible Assets [Line Items]
Beginning Balance	17
Amortization	(2)
Ending Balance	15
RJR Tobacco | Other
Finite Lived Intangible Assets [Line Items]
Beginning Balance	259
Amortization	(4)
Ending Balance	255
American Snuff | Trademarks
Finite Lived Intangible Assets [Line Items]
Beginning Balance	6
Ending Balance	$ 6

Details of Finite-Lived Intangi

Details of Finite-Lived Intangible Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Finite Lived Intangible Assets [Line Items]
Gross	$ 530	$ 530
Accumulated Amortization	(254)	(248)
Net	276	282
Customer lists
Finite Lived Intangible Assets [Line Items]
Gross	240	240
Accumulated Amortization	(10)	(7)
Net	230	233
Contract manufacturing agreements
Finite Lived Intangible Assets [Line Items]
Gross	151	151
Accumulated Amortization	(140)	(139)
Net	11	12
Trademarks
Finite Lived Intangible Assets [Line Items]
Gross	124	124
Accumulated Amortization	(103)	(101)
Net	21	23
Other finite-lived intangibles
Finite Lived Intangible Assets [Line Items]
Gross	15	15
Accumulated Amortization	(1)	(1)
Net	$ 14	$ 14

Finite-Lived Intangible Assets

Finite-Lived Intangible Assets Estimated Future Amortization Expense (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Remainder of 2016	$ 17
2,017	23
2,018	22
2,019	16
2,020	15
Thereafter	183
Net	$ 276	$ 282

Components of Calculation of In

Components of Calculation of Income Per Share (Detail) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 3,565	$ 389
Basic weighted average shares, in thousands	1,427,448	1,063,053
Effect of dilutive potential shares:
Restricted stock units	3,621	3,941
Diluted weighted average shares, in thousands	1,431,069	1,066,994

Components of Inventories (Deta

Components of Inventories (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Leaf tobacco	$ 1,417	$ 1,495
Other raw materials	100	110
Work in process	79	88
Finished products	195	173
Other	23	22
Total	1,814	1,888
LIFO allowance	(156)	(154)
Inventory Net	$ 1,658	$ 1,734

Provision for Income Taxes (Det

Provision for Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 2,154	$ 231
Effective tax rate	37.70%	37.30%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Federal statutory rate	35.00%

Credit Agreement - Additional I

Credit Agreement - Additional Information (Detail) - USD ($)	1 Months Ended
	Oct. 31, 2015	Dec. 31, 2014	Mar. 31, 2016
Line Of Credit Facility [Line Items]
Borrowings outstanding under the Credit Agreement			$ 0
Letters of credit outstanding amount			$ 8,000,000
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
New Credit Agreement | Extended Maturity
Line Of Credit Facility [Line Items]
Period of senior unsecured revolving credit facility	12 months	12 months
Credit facility maturity date	Dec. 18, 2020	Dec. 18, 2021
Credit Agreement
Line Of Credit Facility [Line Items]
Sublimit on the aggregate amount of letters of credit		$ 300,000,000
Interest Rate		2.00%
Credit Agreement | Federal Funds Effective Swap Rate
Line Of Credit Facility [Line Items]
Debt instrument, marginal interest rate		0.50%
Credit Agreement | Eurodollar
Line Of Credit Facility [Line Items]
Debt instrument, marginal interest rate		1.00%
Credit Agreement | Minimum
Line Of Credit Facility [Line Items]
Pay rate of commitment fee per annum		0.10%
Credit Agreement | Maximum
Line Of Credit Facility [Line Items]
Pay rate of commitment fee per annum		0.275%

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail)	Mar. 05, 2016USD ($)	Feb. 22, 2016USD ($)$ / Note	Oct. 31, 2012USD ($)	Mar. 31, 2016USD ($)	Feb. 18, 2016USD ($)	Feb. 04, 2016	Dec. 31, 2015USD ($)	May. 31, 2012USD ($)
Debt Instrument [Line Items]
Maximum debt purchase amount in cash				$ 2,810,000,000
Tender offer settlement date				Feb. 22, 2016
Tender notes expired date				Mar. 3, 2016
Aggregate principal amount of Tender Notes accepted for purchase					$ 2,690,000,000
Payment to repurchase tender notes excluding accrued and unpaid interest		$ 2,810,000,000
Consideration premium per tender offer | $ / Note		30
Notes tendered principal amount		$ 1,000
Early tender premium		118,000,000
Unamortized discount and unamortized debt issuance costs	$ 2,000,000	$ 22,000,000
Percentage of tender notes accepted for purchase						100.00%
Notional amount, interest rate contracts								$ 1,000,000,000
Remaining unamortized loss of forward starting interest rate contracts			$ 16,000,000
Loss on early extinguishment of debt	90,000,000			$ (239,000,000)
Debt instrument redemption date				Mar. 5, 2016
Premiums paid to noteholders as part of redemption	$ 88,000,000
Debt hedged with interest rate swap agreements				$ 503,000,000			$ 506,000,000
Other (income) expense, net
Debt Instrument [Line Items]
Legal and bank fees				7,000,000
Expenses related to cash tender offer and redemption				$ 239,000,000
Interest Rate Swap | Lorillard Tobacco | 8.125% notes due 2019
Debt Instrument [Line Items]
Debt instrument, interest rate				8.125%
Fair value adjustment of notes				$ 7,000,000
3.250% guaranteed, notes due 2022
Debt Instrument [Line Items]
Debt instrument, interest rate			3.25%
Debt instrument maturity date			Nov. 1, 2022
4.750% guaranteed, notes due 2042
Debt Instrument [Line Items]
Debt instrument, interest rate			4.75%
Debt instrument maturity date			Nov. 1, 2042
3.750% Senior Notes due 2023
Debt Instrument [Line Items]
Debt instrument, interest rate				3.75%
Loss on early extinguishment of debt				$ 11,000,000
Fair value adjustment percentage				94.00%
6.750 % Senior Notes Due 2017
Debt Instrument [Line Items]
Debt instrument, interest rate	6.75%
Outstanding aggregate principle amount of debt redeemed	$ 700,000,000
6.750 % Senior Notes Due 2017 | Interest Rate Swap
Debt Instrument [Line Items]
Debt hedged with interest rate swap agreements							$ 700,000,000
Unamortized fair value adjustment recognized	$ 25,000,000
7.750% Senior Notes Due 2018
Debt Instrument [Line Items]
Debt instrument, interest rate	7.75%
Outstanding aggregate principle amount of debt redeemed	$ 250,000,000

Schedule of Securities and Tend

Schedule of Securities and Tender Offer (Detail) $ in Millions		Mar. 31, 2016USD ($)	Feb. 04, 2016USD ($)PriorityLevel
Debt Instrument [Line Items]
Principal Amount		$ 13,458
4.750% Senior Notes due 2042
Debt Instrument [Line Items]
Acceptance Priority Level | PriorityLevel			1
Percentage of Outstanding Tender Notes Purchased			82.71%
4.750% Senior Notes due 2042 | Tendered at Expiration
Debt Instrument [Line Items]
Principal Amount			$ 827
4.750% Senior Notes due 2042 | Accepted for Purchase
Debt Instrument [Line Items]
Principal Amount			$ 827
3.250% Senior Notes due 2022
Debt Instrument [Line Items]
Acceptance Priority Level | PriorityLevel			2
Percentage of Outstanding Tender Notes Purchased			85.59%
3.250% Senior Notes due 2022 | Tendered at Expiration
Debt Instrument [Line Items]
Principal Amount			$ 942
3.250% Senior Notes due 2022 | Accepted for Purchase
Debt Instrument [Line Items]
Principal Amount			$ 942
3.750% Senior Notes due 2023
Debt Instrument [Line Items]
Acceptance Priority Level | PriorityLevel			3
Percentage of Outstanding Tender Notes Purchased			93.76%
3.750% Senior Notes due 2023 | Tendered at Expiration
Debt Instrument [Line Items]
Principal Amount			$ 444
3.750% Senior Notes due 2023 | Accepted for Purchase
Debt Instrument [Line Items]
Principal Amount			$ 444
3.250% Senior Notes due 2020
Debt Instrument [Line Items]
Acceptance Priority Level | PriorityLevel	[1]		4
Percentage of Outstanding Tender Notes Purchased	[1]		38.34%
3.250% Senior Notes due 2020 | Tendered at Expiration
Debt Instrument [Line Items]
Principal Amount	[1]		$ 1,039
3.250% Senior Notes due 2020 | Accepted for Purchase
Debt Instrument [Line Items]
Principal Amount	[1]		$ 479
4.000% Senior Notes due 2022
Debt Instrument [Line Items]
Acceptance Priority Level | PriorityLevel			5
Percentage of Outstanding Tender Notes Purchased			0.00%
4.000% Senior Notes due 2022 | Tendered at Expiration
Debt Instrument [Line Items]
Principal Amount			$ 766
4.450% Senior Notes due 2025
Debt Instrument [Line Items]
Acceptance Priority Level | PriorityLevel			6
Percentage of Outstanding Tender Notes Purchased			0.00%
4.450% Senior Notes due 2025 | Tendered at Expiration
Debt Instrument [Line Items]
Principal Amount			$ 1,773
4.850% Senior Notes due 2023
Debt Instrument [Line Items]
Acceptance Priority Level | PriorityLevel			7
Percentage of Outstanding Tender Notes Purchased			0.00%
4.850% Senior Notes due 2023 | Tendered at Expiration
Debt Instrument [Line Items]
Principal Amount			$ 416
[1]	Series prorated

Long-Term Debt Net of Discounts

Long-Term Debt Net of Discounts (Detail) - USD ($) $ in Millions		3 Months Ended	12 Months Ended
		Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total long-term debt		$ 13,458
Unamortized debt issuance costs		(74)	$ (92)
Total long-term debt at carrying value		13,716	17,355
Less current maturities of long-term debt at carrying value		503	506
Total long-term debt (less current maturities) at carrying value		13,213	16,849
RAI
Debt Instrument [Line Items]
Total long-term debt		13,081	16,723
Fair market value adjustments		325	348
Unamortized discounts		(29)	(37)
Unamortized debt issuance costs		(74)	(92)
Total long-term debt at carrying value		13,303	16,942
Less current maturities of long-term debt at carrying value		417	420
Total long-term debt (less current maturities) at carrying value		12,886	16,522
RAI | 2.300% notes due 2017
Debt Instrument [Line Items]
Total long-term debt		447	447
RAI | 2.300% notes due 2018
Debt Instrument [Line Items]
Total long-term debt		1,250	1,250
RAI | 3.250% notes due 2020
Debt Instrument [Line Items]
Total long-term debt		771	1,250
RAI | 3.250% notes due 2022
Debt Instrument [Line Items]
Total long-term debt		158	1,100
RAI | 3.500% notes due 2016
Debt Instrument [Line Items]
Total long-term debt		415	415
RAI | 3.750% notes due 2023
Debt Instrument [Line Items]
Total long-term debt		30	474
RAI | 4.000% notes due 2022
Debt Instrument [Line Items]
Total long-term debt		1,000	1,000
RAI | 4.450% notes due 2025
Debt Instrument [Line Items]
Total long-term debt		2,500	2,500
RAI | 4.750% notes due 2042
Debt Instrument [Line Items]
Total long-term debt		173	1,000
RAI | 4.850% notes due 2023
Debt Instrument [Line Items]
Total long-term debt		550	550
RAI | 5.700% notes due 2035
Debt Instrument [Line Items]
Total long-term debt		750	750
RAI | 5.850% notes due 2045
Debt Instrument [Line Items]
Total long-term debt		2,250	2,250
RAI | 6.150% notes due 2043
Debt Instrument [Line Items]
Total long-term debt		550	550
RAI | 6.750% notes due 2017
Debt Instrument [Line Items]
Total long-term debt			700
RAI | 6.875% notes due 2020
Debt Instrument [Line Items]
Total long-term debt		641	641
RAI | 7.000% notes due 2041
Debt Instrument [Line Items]
Total long-term debt		240	240
RAI | 7.250% notes due 2037
Debt Instrument [Line Items]
Total long-term debt		450	450
RAI | 7.750% notes due 2018
Debt Instrument [Line Items]
Total long-term debt			250
RAI | 8.125% notes due 2019
Debt Instrument [Line Items]
Total long-term debt		669	669
RAI | 8.125% notes due 2040
Debt Instrument [Line Items]
Total long-term debt		237	237
RJR Tobacco
Debt Instrument [Line Items]
Total long-term debt		377	377
Fair market value adjustments		36	36
Total long-term debt at carrying value		413	413
RJR Tobacco | 2.300% notes due 2017
Debt Instrument [Line Items]
Total long-term debt		53	53
RJR Tobacco | 3.500% notes due 2016
Debt Instrument [Line Items]
Total long-term debt		85	85
RJR Tobacco | 3.750% notes due 2023
Debt Instrument [Line Items]
Total long-term debt		26	26
RJR Tobacco | 6.875% notes due 2020
Debt Instrument [Line Items]
Total long-term debt		109	109
RJR Tobacco | 7.000% notes due 2041
Debt Instrument [Line Items]
Total long-term debt		10	10
RJR Tobacco | 8.125% notes due 2019
Debt Instrument [Line Items]
Total long-term debt	[1]	81	81
RJR Tobacco | 8.125% notes due 2040
Debt Instrument [Line Items]
Total long-term debt		$ 13	$ 13
[1]	The interest rate payable on these notes generally is subject to adjustment from time to time (as detailed in the form of these notes) based upon the credit rating assigned to these notes, provided that in no event will (1) the interest rate for these notes be reduced below 8.125% or (2) the total increase in the interest rate on these notes exceed 2.0% above 8.125%.

Long-Term Debt Net of Discoun61

Long-Term Debt Net of Discounts (Parenthetical) (Detail) - 8.125% notes due 2019	3 Months Ended
	Mar. 31, 2016
Debt Instrument [Line Items]
Interest rate description	The interest rate payable on these notes generally is subject to adjustment from time to time (as detailed in the form of these notes) based upon the credit rating assigned to these notes, provided that in no event will (1) the interest rate for these notes be reduced below 8.125% or (2) the total increase in the interest rate on these notes exceed 2.0% above 8.125%.
Debt Instrument interest rate adjusted percentage, maximum	8.125%
Debt Instrument interest rate adjusted percentage	8.125%
Debt Instrument interest rate on adjusted percentage	2.00%

Maturities of RAI 's and RJR To

Maturities of RAI 's and RJR Tobacco's Notes, Excluding Fair Value Adjustments and Unamortized Discounts and Debt Issuance Costs (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
2,016	$ 500
2,017	500
2,018	1,250
2,019	750
2,020	1,521
2022 and thereafter	8,937
Total principal maturities	13,458
RAI
Debt Instrument [Line Items]
2,016	415
2,017	447
2,018	1,250
2,019	669
2,020	1,412
2022 and thereafter	8,888
Total principal maturities	13,081	$ 16,723
RJR Tobacco
Debt Instrument [Line Items]
2,016	85
2,017	53
2,019	81
2,020	109
2022 and thereafter	49
Total principal maturities	$ 377

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	Feb. 19, 2016USD ($)	Oct. 09, 2015Plaintiff	Mar. 31, 2016USD ($)LegalMatterPlaintiffTrial	Mar. 31, 2015LegalMatter
Loss Contingencies [Line Items]
Amount paid for verdicts | $			$ 291.6
Growers trust fund | $			$ 5,200
Number of cases filed			21
Number of cases pending			275	180
Number of cases pending in federal court			29
Number of cases pending in state court			228
UNITED STATES
Loss Contingencies [Line Items]
Number of cases pending			258
Canada
Loss Contingencies [Line Items]
Number of cases pending			17
Maryland
Loss Contingencies [Line Items]
Number of cases pending in state court			44
Illinois
Loss Contingencies [Line Items]
Number of cases pending in state court			36
Florida
Loss Contingencies [Line Items]
Number of cases pending in state court			32
New York
Loss Contingencies [Line Items]
Number of cases pending in state court			20
Missouri
Loss Contingencies [Line Items]
Number of cases pending in state court			19
Delaware
Loss Contingencies [Line Items]
Number of cases pending in state court			14
California
Loss Contingencies [Line Items]
Number of cases pending in state court			13
Ballard
Loss Contingencies [Line Items]
Amount paid for verdicts | $	$ 5
Engle
Loss Contingencies [Line Items]
Number of cases pending in federal court			4,000
Number of cases after initial docket in federal court			400
Number of cases pending			2,963
Number of plaintiffs | Plaintiff			3,851
Number of cases pending in federal court			20
Number of cases pending in state court			2,943
Engle | Florida
Loss Contingencies [Line Items]
Number of claims filed			10,000
Number of new claims filed			0
Number of trials | Trial			200
Engle | RJR Tobacco
Loss Contingencies [Line Items]
Percentage of pending cases settled			90.00%
West Virginia IPIC
Loss Contingencies [Line Items]
Number of cases pending			564
Number of plaintiffs | Plaintiff		30	564
Broin II
Loss Contingencies [Line Items]
Number of cases pending			2,488
Tribal Court
Loss Contingencies [Line Items]
Number of cases pending			1

Categories of U.S. Tobacco-Rela

Categories of U.S. Tobacco-Related Cases Pending against RJR Tobacco (Detail)		Oct. 09, 2015Plaintiff	Mar. 31, 2016LegalMatterPlaintiff
Individual Smoking And Health Cases
Loss Contingencies [Line Items]
U.S. Case Numbers as of March 31, 2016			119
Change in Number of Cases Since December 31, 2015 Increase/(Decrease)			1
West Virginia IPIC
Loss Contingencies [Line Items]
U.S. Case Numbers as of March 31, 2016	[1]		1
Change in Number of Cases Since December 31, 2015 Increase/(Decrease)	[1]		0
Number of plaintiffs | Plaintiff		30	564
Increase/ (Decrease) in Number of Plaintiffs | Plaintiff			1
Engle
Loss Contingencies [Line Items]
U.S. Case Numbers as of March 31, 2016	[2]		2,963
Change in Number of Cases Since December 31, 2015 Increase/(Decrease)	[2]		(148)
Number of plaintiffs | Plaintiff			3,851
Increase/ (Decrease) in Number of Plaintiffs | Plaintiff			(195)
Broin II
Loss Contingencies [Line Items]
U.S. Case Numbers as of March 31, 2016			2,488
Change in Number of Cases Since December 31, 2015 Increase/(Decrease)			(11)
Class Action
Loss Contingencies [Line Items]
U.S. Case Numbers as of March 31, 2016			33
Change in Number of Cases Since December 31, 2015 Increase/(Decrease)			5
Filter Cases
Loss Contingencies [Line Items]
U.S. Case Numbers as of March 31, 2016			61
Change in Number of Cases Since December 31, 2015 Increase/(Decrease)			(3)
Healthcare Cost Recovery Cases
Loss Contingencies [Line Items]
U.S. Case Numbers as of March 31, 2016			2
Change in Number of Cases Since December 31, 2015 Increase/(Decrease)			0
State Settlement Agreements Enforcement And Validity Adjustments
Loss Contingencies [Line Items]
U.S. Case Numbers as of March 31, 2016			28
Change in Number of Cases Since December 31, 2015 Increase/(Decrease)			1
Other Litigation And Developments
Loss Contingencies [Line Items]
U.S. Case Numbers as of March 31, 2016			14
Change in Number of Cases Since December 31, 2015 Increase/(Decrease)			3
[1]	Includes as one case the approximately 564 cases pending as a consolidated action In Re: Tobacco Litigation Individual Personal Injury Cases, sometimes referred to as West Virginia IPIC cases, described below. The West Virginia IPIC cases have been separated from the Individual Smoking and Health cases for reporting purposes.
[2]	The Engle Progeny cases have been separated from the Individual Smoking and Health cases for reporting purposes. The number of cases has decreased as the result of many of the federal and state court cases being dismissed or duplicate actions being consolidated.

Categories of U.S. Tobacco-Re65

Categories of U.S. Tobacco-Related Cases Pending against RJR Tobacco (Parenthetical) (Detail) - LegalMatter	Mar. 31, 2016	Mar. 31, 2015
Loss Contingencies [Line Items]
Number of cases pending	275	180
West Virginia IPIC
Loss Contingencies [Line Items]
Number of cases pending	564

Commitments and Contingencies66

Commitments and Contingencies - Additional Information 1 (Detail)	1 Months Ended
	Nov. 30, 1998LegalMatterState	Mar. 31, 2016LegalMatterCase
Loss Contingencies [Line Items]
Number of states involved in MSA | State	46
Previously settled cases	4
Cases scheduled for trial		36
Nonsmoking And Health Cases
Loss Contingencies [Line Items]
Cases scheduled for trial		2
Broin II Cases
Loss Contingencies [Line Items]
Cases scheduled for trial		7
Individual Smoking And Health Cases
Loss Contingencies [Line Items]
Cases scheduled for trial		3
Filter Cases
Loss Contingencies [Line Items]
Cases scheduled for trial		24
Engle
Loss Contingencies [Line Items]
Cases scheduled for trial		105
Number of cases tried | Case		117
Smoking And Health Engle Progeny And Healthcare Cost Recovery Cases
Loss Contingencies [Line Items]
Number of cases tried		122
Number of mistrials declared		7
Verdicts returned for tobacco companies		60
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		58
Verdicts returned for plaintiff		55
Number of cases dismissed		4
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 | California
Loss Contingencies [Line Items]
Number of cases tried		1
Verdicts returned for plaintiff		1

Commitments and Contingencies67

Commitments and Contingencies - Additional Information 2 (Detail)

Nov. 06, 2015LegalMatter

Oct. 09, 2015PlaintiffCase

Mar. 31, 2016USD ($)LegalMatterPlaintiffCase

Dec. 31, 2015USD ($)

Feb. 13, 2016USD ($)

Feb. 12, 2016USD ($)

Jan. 26, 2016USD ($)

Jul. 31, 2015USD ($)

Jul. 08, 2015USD ($)

Jul. 01, 2015USD ($)

Mar. 31, 2015LegalMatter

Aug. 31, 2014USD ($)

Jul. 30, 2014USD ($)

Dec. 05, 2010USD ($)

May. 26, 2010USD ($)

Loss Contingencies [Line Items]

Number of cases pending | LegalMatter

275

180

Number of cases pending in state court | LegalMatter

228

Number of cases pending in federal court | LegalMatter

29

Amount paid for verdicts

$ 291,600,000

Payment for compensatory and punitive damages

224,500,000

Payment for attorney fees and interest

$ 67,100,000

RJR Tobacco Indemnitee or Three

Loss Contingencies [Line Items]

Number of cases pending | LegalMatter

119

Engle

Loss Contingencies [Line Items]

Number of cases tried | Case

117

Punitive damages

$ 145,000,000,000

Number of cases pending | LegalMatter

2,963

Number of plaintiffs | Plaintiff

3,851

Punitive Damages 2

$ 36,300,000,000

Punitive Damages 3

17,600,000,000

Punitive Damages 4

$ 16,300,000,000

Number of cases pending in state court | LegalMatter

2,943

Number of cases pending in federal court | LegalMatter

20

Number of cases filed but not served | LegalMatter

23

Litigation settlement, amount

$ 100,000,000

Number of cases became final | LegalMatter

37

Engle | Lorillard Tobacco

Loss Contingencies [Line Items]

Litigation settlement, amount

15,000,000

Engle | RJR Tobacco or Lorillard Tobacco

Loss Contingencies [Line Items]

Number of cases tried | LegalMatter

9

Number of additional cases tried | LegalMatter

2

Engle | RJR Tobacco

Loss Contingencies [Line Items]

Litigation settlement, amount

42,500,000

Engle | Philip Morris

Loss Contingencies [Line Items]

Litigation settlement, amount

$ 42,500,000

Ewing

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

98.00%

98.00%

Allocation of fault

2.00%

Compensatory damages

$ 240,000

$ 240,000

Ewing | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

0.00%

0.00%

Ewing | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

2.00%

Ahrens

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

32.00%

32.00%

Compensatory damages

$ 9,000,000

$ 9,000,000

Punitive damages

$ 2,500,000

$ 2,500,000

Ahrens | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

24.00%

24.00%

Ahrens | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

44.00%

44.00%

Individual Smoking And Health Cases | RJR Tobacco Indemnitee or Three

Loss Contingencies [Line Items]

Number of cases pending | LegalMatter

118

Izzarelli

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

42.00%

Allocation of fault

58.00%

Compensatory damages

$ 13,760,000

Punitive damages

$ 3,970,000

Total damages

11,950,000

Judgment interest awarded

15,800,000

Judgment Interest Per Day Awarded

4,000

Amended Final Judgment

$ 28,100,000

Major

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

50.00%

Compensatory damages

$ 135,000

Amended Final Judgment

3,780,000

Major | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

17.00%

Total damages

$ 3,900,000

Major | Pre Judgment Interest

Loss Contingencies [Line Items]

Judgment interest awarded

1,900,000

Major | Post Judgment Interest

Loss Contingencies [Line Items]

Judgment Interest Per Day Awarded

$ 1,100

Major | RJR Tobacco and Other Manufacturer

Loss Contingencies [Line Items]

Allocation of fault

33.00%

Compensatory damages

$ 17,740,000

Larkin

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

38.00%

Allocation of fault

62.00%

Compensatory damages

$ 4,960,000

Punitive damages

$ 8,500,000

Amount of final judgment

$ 13,460,000

West Virginia IPIC

Loss Contingencies [Line Items]

Number of cases tried | Case

5

Number of cases pending | LegalMatter

564

Number of plaintiffs | Plaintiff

30

564

Various Smokeless Manufacturers

Loss Contingencies [Line Items]

Number of plaintiffs | Plaintiff

41

Federal

Loss Contingencies [Line Items]

Number of cases pending in federal court | LegalMatter

1

Number of federal cases settled | LegalMatter

400

Number of federal cases tried | LegalMatter

12

Number of cases filed by different lawyers | LegalMatter

2

Verdicts in Individual Engle Pr

Verdicts in Individual Engle Progeny Cases have been Tried and Remain Pending (Detail) - USD ($)

Mar. 31, 2016

Feb. 12, 2016

Jan. 26, 2016

Dec. 31, 2015

Dec. 22, 2015

Dec. 18, 2015

Dec. 09, 2015

Oct. 05, 2015

Oct. 02, 2015

Sep. 30, 2015

Sep. 11, 2015

Sep. 08, 2015

Sep. 01, 2015

Aug. 31, 2015

Aug. 06, 2015

Jul. 13, 2015

Jun. 30, 2015

Jun. 18, 2015

May. 31, 2015

Apr. 17, 2015

Mar. 26, 2015

Mar. 25, 2015

Mar. 23, 2015

Feb. 26, 2015

Feb. 24, 2015

Feb. 11, 2015

Jan. 29, 2015

Nov. 24, 2014

Nov. 21, 2014

Nov. 18, 2014

Oct. 20, 2014

Oct. 10, 2014

Sep. 30, 2014

Aug. 28, 2014

Aug. 27, 2014

Jul. 17, 2014

Jun. 23, 2014

May. 15, 2014

Mar. 31, 2014

Mar. 26, 2014

Mar. 17, 2014

Jan. 28, 2014

Sep. 20, 2013

Jul. 31, 2013

Jun. 19, 2013

Jun. 14, 2013

Jun. 04, 2013

May. 31, 2013

May. 23, 2013

Apr. 01, 2013

Mar. 20, 2013

Feb. 13, 2013

Feb. 11, 2013

Oct. 17, 2012

Sep. 20, 2012

Aug. 01, 2012

May. 17, 2012

Mar. 31, 2012

Jan. 26, 2012

Jan. 24, 2012

Oct. 31, 2011

Sep. 30, 2011

Jul. 15, 2011

Jun. 16, 2011

Apr. 26, 2011

Aug. 31, 2010

Jun. 30, 2010

May. 20, 2010

Apr. 29, 2010

Apr. 26, 2010

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 183,537,340

Punitive Damages

191,606,000

Hiott

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[2]

$ 730,000

Hiott | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

40.00%

40.00%

Starr Blundell

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[2]

$ 50,000

Starr Blundell | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

10.00%

10.00%

Clayton

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[2]

$ 60,000

Clayton | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

10.00%

10.00%

Cohen

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[2]

$ 3,330,000

Punitive Damages

$ 10,000,000

Cohen | RJR Tobacco

Loss Contingencies [Line Items]

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]

Allocation of fault

77.50%

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]

Allocation of fault

25.00%

25.00%

Sikes

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[2]

$ 3,520,000

Punitive Damages

$ 2,000,000

Sikes | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

51.00%

51.00%

Thibault

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[2]

$ 1,750,000

Punitive Damages

$ 1,275,000

Thibault | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

70.00%

70.00%

Cheeley

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[2]

$ 1,500,000

Punitive Damages

$ 2,000,000

Cheeley | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

50.00%

50.00%

Ciccone

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 960,000

[2]

$ 1,010,000

Punitive Damages

$ 50,000

Ciccone | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

30.00%

30.00%

Verdicts In Individual Cases Pending

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[2]

$ 16,460,000

Punitive Damages

$ 41,075,000

Putney

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

4,500,000

Punitive Damages

$ 2,500,000

Putney | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

30.00%

30.00%

Andy Allen

Loss Contingencies [Line Items]

Allocation of fault

24.00%

Compensatory damages (as adjusted)

[1]

$ 2,475,000

Punitive Damages

$ 7,756,000

$ 7,750,000

$ 8,100,000

Andy Allen | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

24.00%

45.00%

Soffer

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 2,000,000

Soffer | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

40.00%

40.00%

Calloway

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1],[3]

$ 16,100,000

Calloway | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

18.00%

18.00%

Calloway | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

27.00%

27.00%

Hancock

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 700

Hancock | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

5.00%

James Smith

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1],[3]

$ 600,000

Punitive Damages

$ 20,000

James Smith | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

55.00%

55.00%

Evers

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 2,950,000

Punitive Damages

$ 12,360,000

Evers | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

9.00%

9.00%

Evers | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

60.00%

60.00%

Schoeff

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 7,875,000

Schoeff | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

75.00%

75.00%

Marotta

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 3,480,000

[1]

$ 3,480,000

Marotta | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

58.00%

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]

Allocation of fault

30.00%

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]

Allocation of fault

20.00%

20.00%

Skolnick

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 766,500

Skolnick | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

30.00%

30.00%

Grossman

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 15,350,000

[1],[3]

$ 484,000

Punitive Damages

$ 22,500,000

Grossman | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

75.00%

75.00%

25.00%

Gafney | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

33.00%

33.00%

Gafney | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

33.00%

33.00%

Bowden

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 1,500,000

[1]

$ 1,500,000

Bowden | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

30.00%

30.00%

Burkhart

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1],[3]

$ 3,500,000

Punitive Damages

$ 1,750,000

Burkhart | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

10.00%

10.00%

Burkhart | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

25.00%

25.00%

Bakst (Odom)

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 4,504,000

[1]

$ 4,500,000

Punitive Damages

$ 14,000,000

Bakst (Odom) | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

75.00%

75.00%

Robinson

Loss Contingencies [Line Items]

Allocation of fault

70.50%

Compensatory damages (as adjusted)

[1]

$ 16,900,000

Punitive Damages

$ 16,900,000

Robinson | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

71.00%

Harris

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1],[3]

$ 1,100,000

Harris | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

10.00%

Harris | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

15.00%

Wilcox

Loss Contingencies [Line Items]

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]

Allocation of fault

70.00%

Irimi

Loss Contingencies [Line Items]

Allocation of fault

14.50%

Irimi | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

15.00%

14.50%

Irimi | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

15.00%

Hubbird

Loss Contingencies [Line Items]

Allocation of fault

50.00%

Compensatory damages (as adjusted)

[1],[3]

$ 3,000,000

Punitive Damages

$ 25,000,000

Hubbird | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

50.00%

Lourie

Loss Contingencies [Line Items]

Allocation of fault

3.00%

Compensatory damages (as adjusted)

[1]

$ 137,000

Lourie | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

7.00%

7.00%

Lourie | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

3.00%

Kerrivan

Loss Contingencies [Line Items]

Allocation of fault

31.00%

Compensatory damages (as adjusted)

[1],[3]

$ 6,046,660

Punitive Damages

$ 9,600,000

Kerrivan | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

31.00%

Schleider

Loss Contingencies [Line Items]

Allocation of fault

70.00%

Compensatory damages (as adjusted)

$ 14,700,000

[1],[3]

$ 14,700,000

Schleider | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

70.00%

Perrotto

Loss Contingencies [Line Items]

Allocation of fault

20.00%

Compensatory damages (as adjusted)

[1]

$ 1,063,000

Perrotto | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

6.00%

6.00%

Perrotto | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

20.00%

Ellen Gray

Loss Contingencies [Line Items]

Allocation of fault

50.00%

Compensatory damages (as adjusted)

[1]

$ 3,000,000

Ellen Gray | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

50.00%

Sowers

Loss Contingencies [Line Items]

Allocation of fault

50.00%

Compensatory damages (as adjusted)

[1]

$ 2,125,000

Sowers | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

50.00%

Caprio

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 167,700

Caprio | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

10.00%

10.00%

Caprio | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

20.00%

20.00%

Zamboni

Loss Contingencies [Line Items]

Allocation of fault

30.00%

Compensatory damages (as adjusted)

[1]

$ 102,000

Zamboni | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

30.00%

Pollari

Loss Contingencies [Line Items]

Allocation of fault

42.50%

Compensatory damages (as adjusted)

$ 4,250,000

[1]

$ 10,000,000

Punitive Damages

$ 1,500,000

$ 1,500,000

Pollari | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

43.00%

Gore

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 460,000

Gore | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

23.00%

23.00%

Ryan

Loss Contingencies [Line Items]

Allocation of fault

65.00%

Compensatory damages (as adjusted)

$ 21,500,000

[1]

$ 21,500,000

Punitive Damages

$ 25,000,000

$ 25,000,000

Ryan | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

65.00%

Hardin

Loss Contingencies [Line Items]

Allocation of fault

13.00%

Compensatory damages (as adjusted)

[1]

$ 100,880

Hardin | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

13.00%

Mc Coy

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 675,000

[1]

1,500,000

Punitive Damages

$ 6,000,000

$ 3,000,000

Mc Coy | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

20.00%

20.00%

Mc Coy | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

25.00%

25.00%

Block

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 463,000

[1]

$ 926,000

Punitive Damages

$ 800,000

800,000

Block | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

50.00%

50.00%

Lewis

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 187,500

Lewis | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

25.00%

25.00%

Cooper

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 1,200,000

Cooper | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

40.00%

40.00%

Duignan

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 2,690,000

[1]

$ 6,000,000

Punitive Damages

$ 2,500,000

Duignan | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

30.00%

30.00%

Punitive Damages

$ 2,500,000

Ohara

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 14,700,000

[1]

14,700,000

Punitive Damages

$ 20,000,000

$ 20,000,000

Ohara | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

85.00%

85.00%

Marchese

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1],[3]

$ 500,000

Punitive Damages

$ 250,000

Marchese | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

22.50%

22.50%

Gordon

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 100

[1]

$ 100

Gordon | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

2.00%

2.00%

Barbose

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 5,000,000

Punitive Damages

$ 500,000

Barbose | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

42.50%

Monroe

Loss Contingencies [Line Items]

Allocation of fault

58.00%

Compensatory damages (as adjusted)

[1]

$ 6,380,000

Monroe | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

58.00%

Ledoux

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

$ 5,000,000

[1]

$ 10,000,000

Punitive Damages

$ 12,500,000

$ 12,500,000

Ledoux | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

47.00%

47.00%

Ewing

Loss Contingencies [Line Items]

Allocation of fault

2.00%

Compensatory damages (as adjusted)

[1]

$ 4,800

Ewing | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

2.00%

Ahrens

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 5,800,000

Punitive Damages

$ 2,500,000

Ahrens | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

44.00%

44.00%

[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 and such fees and interest may be material.

[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 of $26.9 million.

[3]

The court did not apply comparative fault in the final judgment.

Verdicts in Individual Engle 69

Verdicts in Individual Engle Progeny Cases have been Tried and Remain Pending (Parenthetical) (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Loss Contingencies [Line Items]
Payment for attorney fees and interest	$ 67.1
Verdicts In Individual Cases Pending
Loss Contingencies [Line Items]
Payment for attorney fees and interest	$ 26.9

Commitments and Contingencies70

Commitments and Contingencies - Additional Information 3 (Detail) - USD ($)		Mar. 31, 2016		Aug. 31, 2013	Jul. 31, 2013	Aug. 31, 2010	Jul. 31, 2010	Jun. 30, 2010	Apr. 29, 2010	Apr. 26, 2010	Mar. 24, 2010
Loss Contingencies [Line Items]
Compensatory damages (as adjusted)	[1]	$ 183,537,340
Punitive damages - adjusted		191,606,000
Outstanding Judgments		$ 375,143,340
Robin Cohen
Loss Contingencies [Line Items]
Compensatory damages (as adjusted)							$ 3,330,000				$ 10,000,000
Punitive damages - adjusted							$ 10,000,000
Allocation of fault to plaintiff											33.30%
Punitive damages											$ 20,000,000
Robin Cohen | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault											33.30%
Robin Cohen | Other Defendant
Loss Contingencies [Line Items]
Allocation of fault											33.30%
Putney
Loss Contingencies [Line Items]
Compensatory damages (as adjusted)						$ 4,500,000
Punitive damages - adjusted						$ 2,500,000
Allocation of fault to plaintiff										35.00%
Punitive damages										$ 2,500,000
Compensatory damages										$ 15,100,000
Putney | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault		30.00%								30.00%
Putney | Other Defendant
Loss Contingencies [Line Items]
Allocation of fault										35.00%
Grossman
Loss Contingencies [Line Items]
Compensatory damages (as adjusted)		$ 15,350,000	[1],[2]					$ 484,000
Punitive damages - adjusted		$ 22,500,000
Allocation of fault to plaintiff					25.00%				70.00%
Punitive damages					$ 22,500,000
Compensatory damages					$ 15,350,000				$ 1,900,000
Bond				$ 5,000,000
Grossman | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault		75.00%			75.00%				25.00%
Grossman | Other Defendant
Loss Contingencies [Line Items]
Allocation of fault									5.00%
[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 and such fees and interest may be material.
[2]	The court did not apply comparative fault in the final judgment.

Commitments and Contingencies71

Commitments and Contingencies - Additional Information 4 (Detail) - USD ($)

Mar. 31, 2016

Sep. 30, 2015

Aug. 31, 2015

Apr. 30, 2015

Nov. 26, 2014

Nov. 24, 2014

Oct. 31, 2011

May. 31, 2011

Apr. 26, 2011

Aug. 31, 2010

May. 20, 2010

Loss Contingencies [Line Items]

Punitive damages - adjusted

$ 191,606,000

Compensatory damages (as adjusted)

[1]

183,537,340

Buonomo

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

22.50%

Compensatory damages

$ 5,200,000

Punitive damages

25,000,000

Punitive damages - adjusted

25,000,000

$ 15,700,000

Compensatory damages (as adjusted)

$ 4,060,000

[2]

$ 4,060,000

Amended Final Judgment

$ 29,100,000

Buonomo | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

77.50%

77.50%

Andy Allen

Loss Contingencies [Line Items]

Allocation of fault

24.00%

Allocation of fault to plaintiff

70.00%

40.00%

Compensatory damages

$ 3,100,000

$ 6,000,000

Punitive damages

$ 7,750,000

$ 17,000,000

Punitive damages - adjusted

$ 7,756,000

$ 7,750,000

$ 8,100,000

Compensatory damages (as adjusted)

[1]

$ 2,475,000

Total damages

$ 3,100,000

$ 19,700,000

Bond

$ 2,500,000

Andy Allen | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

6.00%

15.00%

Andy Allen | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

24.00%

45.00%

[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 and such fees and interest may be material.

[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 of $26.9 million.

Commitments and Contingencies72

Commitments and Contingencies - Additional Information 5 (Detail) - USD ($)		Mar. 31, 2016		Mar. 31, 2012	Jan. 26, 2012	Jan. 24, 2012	Sep. 30, 2011	Jul. 15, 2011	Jun. 16, 2011
Loss Contingencies [Line Items]
Compensatory damages (as adjusted)	[1]	$ 183,537,340
Punitive damages - adjusted		191,606,000
Soffer
Loss Contingencies [Line Items]
Allocation of fault to plaintiff									60.00%
Compensatory damages									$ 5,000,000
Total damages									$ 2,000,000
Compensatory damages (as adjusted)	[1]	$ 2,000,000
Soffer | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault		40.00%							40.00%
Ciccone
Loss Contingencies [Line Items]
Allocation of fault to plaintiff								70.00%
Compensatory damages								$ 3,200,000
Punitive damages								$ 50,000
Compensatory damages (as adjusted)		$ 960,000	[2]				$ 1,010,000
Punitive damages - adjusted		$ 50,000
Ciccone | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault		30.00%						30.00%
Hallgren
Loss Contingencies [Line Items]
Allocation of fault to plaintiff						50.00%
Compensatory damages						$ 2,000,000
Punitive damages				$ 750,000
Compensatory damages (as adjusted)		$ 500,000	[2]	1,000,000
Punitive damages - adjusted		$ 750,000			$ 750,000
Bond				$ 1,300,000
Hallgren | Other Defendant
Loss Contingencies [Line Items]
Allocation of fault						25.00%
Hallgren | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault		25.00%				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 and such fees and interest may be material.
[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 of $26.9 million.

Commitments and Contingencies73

Commitments and Contingencies - Additional Information 6 (Detail) - USD ($)	Mar. 31, 2016	Sep. 30, 2012	Aug. 02, 2012	Aug. 01, 2012	May. 31, 2012	May. 17, 2012
Calloway
Loss Contingencies [Line Items]
Allocation of fault to plaintiff						20.50%
Compensatory damages						$ 20,500,000
Bond		$ 1,500,000
Share of damages					$ 25,000,000
Calloway | Lorillard Tobacco
Loss Contingencies [Line Items]
Punitive damages					12,600,000
Bond		$ 1,250,000
Allocation of fault	18.00%					18.00%
Calloway | RJR Tobacco
Loss Contingencies [Line Items]
Punitive damages					$ 17,250,000
Allocation of fault	27.00%					27.00%
Calloway | Other Defendant
Loss Contingencies [Line Items]
Allocation of fault						34.50%
Hiott
Loss Contingencies [Line Items]
Punitive damages			$ 0
Allocation of fault to plaintiff				60.00%
Compensatory damages				$ 1,830,000
Bond				730,000
Total damages				$ 730,000
Hiott | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault	40.00%			40.00%

Commitments and Contingencies74

Commitments and Contingencies - Additional Information 7 (Detail) - USD ($) $ in Thousands

Feb. 19, 2016

Mar. 31, 2016

Aug. 31, 2013

Jul. 31, 2013

Jun. 25, 2013

Jun. 03, 2013

Oct. 31, 2012

Oct. 19, 2012

Oct. 18, 2012

Oct. 17, 2012

Sep. 21, 2012

Sep. 20, 2012

Loss Contingencies [Line Items]

Amount paid for verdicts

$ 291,600

Sikes

Loss Contingencies [Line Items]

Punitive damages

$ 2,000

Allocation of fault to plaintiff

49.00%

Compensatory damages

$ 4,100

Amended Final Judgment

$ 5,500

$ 6,100

Bond

$ 5,000

Sikes | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

51.00%

51.00%

James Smith

Loss Contingencies [Line Items]

Punitive damages

$ 20

Allocation of fault to plaintiff

45.00%

Compensatory damages

$ 600

Bond

620

Total damages

$ 620

James Smith | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

55.00%

55.00%

Ballard

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

45.00%

Compensatory damages

$ 8,550

Amended Final Judgment

$ 5,000

Bond

$ 5,000

Amount of final judgment

$ 4,700

Amount paid for verdicts

$ 5,000

Ballard | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

55.00%

Commitments and Contingencies75

Commitments and Contingencies - Additional Information 8 (Detail) - USD ($)

Mar. 31, 2016

Nov. 30, 2013

Sep. 30, 2013

Apr. 30, 2013

Apr. 01, 2013

Mar. 20, 2013

Feb. 14, 2013

Feb. 13, 2013

Feb. 12, 2013

Feb. 11, 2013

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 183,537,340

Punitive damages - adjusted

191,606,000

Evers

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

31.00%

Compensatory damages

$ 3,230,000

Punitive damages

$ 12,360,000

Compensatory damages (as adjusted)

[1]

2,950,000

Punitive damages - adjusted

$ 12,360,000

Evers | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

9.00%

9.00%

Total damages

$ 266,000

Bond

$ 266,000

Evers | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

60.00%

60.00%

Total damages

$ 1,770,000

Bond

$ 1,770,000

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

Total damages

$ 7,880,000

Compensatory damages (as adjusted)

[1]

$ 7,875,000

Schoeff | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

75.00%

75.00%

Marotta

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

42.00%

Compensatory damages

$ 6,000,000

Compensatory damages (as adjusted)

$ 3,480,000

[1]

$ 3,480,000

Marotta | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

58.00%

58.00%

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 (as adjusted)

$ 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 | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

30.00%

Searcy | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

30.00%

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 and such fees and interest may be material.

[2]

The court did not apply comparative fault in the final judgment.

Commitments and Contingencies76

Commitments and Contingencies - Additional Information 9 (Detail) - USD ($)

Mar. 31, 2016

Mar. 31, 2014

Dec. 31, 2013

Nov. 30, 2013

Jul. 31, 2013

Jun. 14, 2013

Jun. 04, 2013

May. 31, 2013

May. 23, 2013

May. 02, 2013

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 183,537,340

David Cohen

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

40.00%

Compensatory damages (as adjusted)

$ 617,000

Compensatory damages

$ 2,060,000

David Cohen | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

20.00%

Compensatory damages (as adjusted)

411,000

David Cohen | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

30.00%

David Cohen | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

10.00%

Earl Graham

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

70.00%

Compensatory damages (as adjusted)

$ 550,000

[1]

550,000

Compensatory damages

$ 2,750,000

Bond

$ 556,000

Earl Graham | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

20.00%

20.00%

Earl Graham | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

10.00%

Starr Blundell

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

80.00%

Compensatory damages (as adjusted)

[2]

$ 50,000

Compensatory damages

$ 500,000

Bond

$ 50,000

Amount of final judgment

$ 50,000

Starr Blundell | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

10.00%

10.00%

Starr Blundell | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

10.00%

Skolnick

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

40.00%

Compensatory damages (as adjusted)

$ 766,500

Compensatory damages

$ 2,560,000

Bond

$ 767,000

Skolnick | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

30.00%

30.00%

Skolnick | Other Defendant

Loss Contingencies [Line Items]

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 and such fees and interest may be material.

[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 of $26.9 million.

Commitments and Contingencies77

Commitments and Contingencies - Additional Information 10 (Detail) - USD ($)	Mar. 31, 2016	Feb. 27, 2014	Jan. 31, 2014	Jan. 28, 2014	Sep. 30, 2013	Sep. 20, 2013	Jun. 30, 2013	Jun. 21, 2013	Jun. 19, 2013
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
Loss Contingencies [Line Items]
Allocation of fault	70.00%								70.00%
Gafney
Loss Contingencies [Line Items]
Allocation of fault to plaintiff						34.00%
Compensatory damages						$ 5,800,000
Total damages					$ 1,900,000
Bond					1,900,000
Gafney | Lorillard Tobacco
Loss Contingencies [Line Items]
Allocation of fault	33.00%					33.00%
Total damages					1,900,000
Bond					$ 1,900,000
Gafney | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault	33.00%					33.00%
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
Cheeley | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault	50.00%			50.00%
Banks
Loss Contingencies [Line Items]
Allocation of fault to plaintiff		85.00%
Compensatory damages		$ 0
Banks | Other Defendant
Loss Contingencies [Line Items]
Allocation of fault		0.00%
Banks | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault		15.00%

Commitments and Contingencies78

Commitments and Contingencies - Additional Information 11 (Detail) - USD ($)		1 Months Ended
		Jul. 31, 2014	Mar. 31, 2016		May. 16, 2014	May. 15, 2014	Mar. 31, 2014	Mar. 26, 2014	Mar. 17, 2014
Loss Contingencies [Line Items]
Compensatory damages (as adjusted)	[1]		$ 183,537,340
Clayton
Loss Contingencies [Line Items]
Allocation of fault to plaintiff									90.00%
Compensatory damages		$ 60,000							$ 600,000
Punitive damages									$ 0
Taxable costs		163,469
Amount of final judgment		223,469
Bond		$ 223,000
Compensatory damages (as adjusted)	[2]		$ 60,000
Clayton | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault			10.00%						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 (as adjusted)			$ 1,500,000	[1]			$ 1,500,000
Bowden | Other Defendant
Loss Contingencies [Line Items]
Allocation of fault								30.00%
Bowden | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault			30.00%					30.00%
Burkhart
Loss Contingencies [Line Items]
Allocation of fault to plaintiff						50.00%
Compensatory damages						$ 5,000,000
Compensatory damages (as adjusted)	[1],[3]		$ 3,500,000
Burkhart | Lorillard Tobacco
Loss Contingencies [Line Items]
Allocation of fault			10.00%			10.00%
Punitive damages					$ 500,000
Burkhart | Other Defendant
Loss Contingencies [Line Items]
Allocation of fault						15.00%
Punitive damages					750,000
Burkhart | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault			25.00%			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 and such fees and interest may be material.
[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 of $26.9 million.
[3]	The court did not apply comparative fault in the final judgment.

Commitments and Contingencies79

Commitments and Contingencies - Additional Information 12 (Detail) - USD ($)		Mar. 31, 2016		Feb. 28, 2015	Jan. 27, 2015	Sep. 30, 2014	Aug. 27, 2014	Jul. 31, 2014	Jul. 18, 2014	Jul. 17, 2014	Jun. 23, 2014
Loss Contingencies [Line Items]
Compensatory damages (as adjusted)	[1]	$ 183,537,340
Bakst (Odom)
Loss Contingencies [Line Items]
Allocation of fault to plaintiff											25.00%
Compensatory damages											$ 6,000,000
Compensatory damages (as adjusted)		$ 4,504,000	[1]								4,500,000
Punitive damages											14,000,000
Bond											$ 5,000,000
Bakst (Odom) | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault		75.00%									75.00%
Robinson
Loss Contingencies [Line Items]
Allocation of fault to plaintiff										29.50%
Allocation of fault										70.50%
Compensatory damages								$ 16,900,000		$ 16,900,000
Compensatory damages (as adjusted)	[1]	$ 16,900,000
Punitive damages									$ 23,600,000,000
Bond				$ 5,000,000
Remitted punitive damages					$ 16,900,000
Robinson | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault		71.00%
Harris
Loss Contingencies [Line Items]
Compensatory damages (as adjusted)	[1],[2]	$ 1,100,000
Harris | Survival claim
Loss Contingencies [Line Items]
Allocation of fault to plaintiff								60.00%
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%
Allocation of fault								10.00%
Compensatory damages								$ 400,000
Harris | Lorillard Tobacco
Loss Contingencies [Line Items]
Allocation of fault		10.00%
Harris | Lorillard Tobacco | Survival claim
Loss Contingencies [Line Items]
Allocation of fault								10.00%
Harris | Lorillard Tobacco | Wrongful death claim
Loss Contingencies [Line Items]
Allocation of fault								10.00%
Harris | Other Defendant | Survival claim
Loss Contingencies [Line Items]
Allocation of fault								15.00%
Harris | Other Defendant | Wrongful death claim
Loss Contingencies [Line Items]
Allocation of fault								10.00%
Harris | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault		15.00%
Wilcox
Loss Contingencies [Line Items]
Allocation of fault to plaintiff							30.00%
Allocation of fault							70.00%
Compensatory damages							$ 7,000,000
Compensatory damages (as adjusted)		$ 4,900,000	[1]			$ 4,900,000
Punitive damages							$ 8,500,000
Bond						5,000,000
Projected settlement expenses						$ 8,500,000
Wilcox | RJR Tobacco
Loss Contingencies [Line Items]
Allocation of fault		70.00%
[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 and such fees and interest may be material.
[2]	The court did not apply comparative fault in the final judgment.

Commitments and Contingencies80

Commitments and Contingencies - Additional Information 13 (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2014	Nov. 30, 2014	Oct. 22, 2014	Oct. 20, 2014	Oct. 10, 2014	Aug. 29, 2014	Aug. 28, 2014	Aug. 27, 2014
Hubbird
Loss Contingencies [Line Items]
Allocation of fault to plaintiff									50.00%
Allocation of fault									50.00%
Compensatory damages									$ 3,000
Punitive damages							$ 25,000
Total damages		$ 28,000
Bond		$ 5,000
Irimi
Loss Contingencies [Line Items]
Allocation of fault to plaintiff								70.00%
Allocation of fault								14.50%
Compensatory damages								$ 3,100
Total damages								$ 453
Irimi | Lorillard Tobacco
Loss Contingencies [Line Items]
Allocation of fault	15.00%							14.50%
Total damages								$ 453
Irimi | Other Defendant
Loss Contingencies [Line Items]
Allocation of fault								1.00%
Total damages								$ 31
Lourie
Loss Contingencies [Line Items]
Allocation of fault to plaintiff						63.00%
Allocation of fault						3.00%
Compensatory damages						$ 1,370
Bond			$ 41
Lourie | Lorillard Tobacco
Loss Contingencies [Line Items]
Allocation of fault	7.00%					7.00%
Bond			$ 96
Lourie | Other Defendant
Loss Contingencies [Line Items]
Allocation of fault						27.00%
Kerrivan
Loss Contingencies [Line Items]
Allocation of fault to plaintiff					19.00%
Allocation of fault					31.00%
Compensatory damages					$ 15,800
Punitive damages				$ 9,600
Kerrivan | Other Defendant
Loss Contingencies [Line Items]
Allocation of fault					50.00%
Punitive damages				$ 15,700

Commitments and Contingencies81

Commitments and Contingencies - Additional Information 14 (Detail)

Oct. 31, 1997USD ($)

Mar. 31, 2016USD ($)LegalMatter

Feb. 29, 2016USD ($)

Feb. 13, 2016USD ($)

Feb. 12, 2016USD ($)

Jan. 26, 2016USD ($)

Jan. 12, 2016USD ($)

Jan. 04, 2016USD ($)

Dec. 31, 2015USD ($)

Dec. 22, 2015USD ($)

Dec. 18, 2015USD ($)

Dec. 09, 2015USD ($)

Nov. 18, 2015USD ($)

Nov. 17, 2015USD ($)

Oct. 06, 2015USD ($)

Oct. 05, 2015USD ($)

Oct. 02, 2015USD ($)

Sep. 30, 2015USD ($)

Sep. 11, 2015USD ($)

Sep. 08, 2015USD ($)

Sep. 01, 2015USD ($)

Aug. 31, 2015USD ($)

Aug. 07, 2015USD ($)

Aug. 06, 2015USD ($)

Jul. 17, 2015USD ($)

Jul. 16, 2015USD ($)

Jul. 13, 2015USD ($)

Jun. 30, 2015USD ($)

Jun. 18, 2015USD ($)

May. 31, 2015USD ($)

Apr. 21, 2015USD ($)

Apr. 17, 2015USD ($)

Mar. 26, 2015USD ($)

Mar. 25, 2015USD ($)

Mar. 23, 2015USD ($)

Feb. 28, 2015USD ($)

Feb. 26, 2015USD ($)

Feb. 24, 2015USD ($)

Feb. 12, 2015USD ($)

Feb. 11, 2015USD ($)

Jan. 29, 2015USD ($)

Dec. 31, 2014USD ($)

Nov. 21, 2014USD ($)

Nov. 18, 2014USD ($)

Loss Contingencies [Line Items]

Compensatory damages (as adjusted)

[1]

$ 183,537,340

Punitive damages - adjusted

191,606,000

Schleider

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

30.00%

Allocation of fault

70.00%

Compensatory damages

$ 21,000,000

Compensatory damages (as adjusted)

$ 14,700,000

[1],[2]

$ 14,700,000

Bond

$ 5,000,000

Schleider | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

70.00%

Perrotto

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

49.00%

Allocation of fault

20.00%

Compensatory damages

$ 4,100,000

Compensatory damages (as adjusted)

[1]

$ 1,063,000

Total damages

$ 818,000

Perrotto | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

20.00%

Perrotto | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

6.00%

6.00%

Total damages

$ 245,000

Perrotto | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

25.00%

Ellen Gray

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

50.00%

Allocation of fault

50.00%

Compensatory damages

$ 6,000,000

Compensatory damages (as adjusted)

[1]

$ 3,000,000

Total damages

$ 3,000,000

Punitive damages

$ 0

Ellen Gray | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

50.00%

Sowers

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

50.00%

Allocation of fault

50.00%

Compensatory damages

$ 4,250,000

Compensatory damages (as adjusted)

[1]

$ 2,125,000

Total damages

$ 2,130,000

Punitive damages

$ 0

Sowers | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

50.00%

Caprio

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

40.00%

Compensatory damages (as adjusted)

[1]

$ 167,700

Economic damages

$ 559,000

Caprio | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

20.00%

20.00%

Caprio | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

10.00%

10.00%

Caprio | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

30.00%

Zamboni

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

60.00%

Allocation of fault

30.00%

Compensatory damages

$ 340,000

Compensatory damages (as adjusted)

[1]

$ 102,000

Punitive damages

$ 0

Zamboni | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

30.00%

Zamboni | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

10.00%

Pollari

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

15.00%

Allocation of fault

42.50%

Compensatory damages

$ 4,250,000

$ 10,000,000

Compensatory damages (as adjusted)

$ 4,250,000

[1]

$ 10,000,000

Punitive damages

$ 1,500,000

1,500,000

Punitive damages - adjusted

$ 1,500,000

$ 1,500,000

Pollari | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

43.00%

Pollari | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

42.50%

Gore

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

54.00%

Compensatory damages

$ 2,000,000

Compensatory damages (as adjusted)

[1]

$ 460,000

Bond

$ 460,000

Total damages

460,000

Gore | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

23.00%

23.00%

Gore | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

23.00%

Ryan

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

35.00%

Allocation of fault

65.00%

Compensatory damages

$ 21,500,000

Compensatory damages (as adjusted)

$ 21,500,000

[1]

$ 21,500,000

Punitive damages

$ 25,000,000

Punitive damages - adjusted

$ 25,000,000

$ 25,000,000

Ryan | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

65.00%

Hardin

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

87.00%

Allocation of fault

13.00%

Compensatory damages

$ 776,000

Compensatory damages (as adjusted)

[1]

$ 100,880

Total damages

$ 100,880

Punitive damages

$ 0

Hardin | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

13.00%

Mc Coy

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

35.00%

Compensatory damages

$ 1,500,000

Compensatory damages (as adjusted)

$ 675,000

[1]

$ 1,500,000

Bond

$ 3,350,000

Punitive damages

$ 3,000,000

Punitive damages - adjusted

$ 6,000,000

$ 3,000,000

Mc Coy | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

25.00%

25.00%

Compensatory damages

370,000

Punitive damages

3,000,000

Mc Coy | Lorillard Tobacco

Loss Contingencies [Line Items]

Allocation of fault

20.00%

20.00%

Compensatory damages

300,000

Punitive damages

3,000,000

Mc Coy | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

20.00%

Compensatory damages

300,000

Punitive damages

$ 3,000,000

Block

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

50.00%

Compensatory damages

$ 463,000

$ 1,030,000

Compensatory damages (as adjusted)

$ 463,000

[1]

926,000

Bond

1,300,000

Punitive damages

$ 800,000

$ 800,000

Punitive damages - adjusted

$ 800,000

800,000

Block | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

50.00%

50.00%

Lewis

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

75.00%

Compensatory damages

$ 750,000

Compensatory damages (as adjusted)

[1]

$ 187,500

Bond

187,500

Total damages

$ 187,500

Lewis | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

25.00%

25.00%

Cooper

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

50.00%

Compensatory damages

$ 1,200,000

$ 4,500,000

Compensatory damages (as adjusted)

[1]

$ 1,200,000

Bond

1,200,000

Cooper | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

40.00%

40.00%

Cooper | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

10.00%

Duignan

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

33.00%

Compensatory damages

$ 6,000,000

Compensatory damages (as adjusted)

$ 2,690,000

[1]

6,000,000

Bond

$ 2,300,000

Punitive damages - adjusted

$ 2,500,000

Duignan | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

30.00%

30.00%

Punitive damages

$ 2,500,000

Punitive damages - adjusted

$ 2,500,000

Duignan | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

37.00%

Punitive damages

$ 3,500,000

Punitive damages - adjusted

$ 3,500,000

Ohara

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

15.00%

Compensatory damages

$ 14,700,000

Compensatory damages (as adjusted)

$ 14,700,000

[1]

14,700,000

Bond

5,000,000

Punitive damages

$ 20,000,000

Punitive damages - adjusted

$ 20,000,000

$ 20,000,000

Ohara | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

85.00%

85.00%

Marchese

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

55.00%

Compensatory damages

$ 1,000,000

Compensatory damages (as adjusted)

[1],[2]

$ 500,000

Punitive damages

$ 250,000

Punitive damages - adjusted

$ 250,000

Marchese | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

22.50%

22.50%

Marchese | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

22.50%

Gordon

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

98.00%

Compensatory damages

$ 5,000

Compensatory damages (as adjusted)

$ 100

[1]

$ 100

Gordon | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

2.00%

2.00%

Barbose

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

15.00%

Compensatory damages

$ 10,000,000

Compensatory damages (as adjusted)

[1]

$ 5,000,000

Bond

$ 2,500,000

Punitive damages

$ 500,000

Punitive damages - adjusted

$ 500,000

Barbose | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

42.50%

Barbose | R J R Tobacco Indemnitee Or Both

Loss Contingencies [Line Items]

Allocation of fault

42.50%

Barbose | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

42.50%

Monroe

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

42.00%

Allocation of fault

58.00%

Compensatory damages

$ 11,000,000

Compensatory damages (as adjusted)

[1]

$ 6,380,000

Monroe | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

58.00%

Monroe | R J R Tobacco Indemnitee Or Both

Loss Contingencies [Line Items]

Compensatory damages

$ 6,380,000

Ledoux

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

6.00%

Compensatory damages

$ 10,000,000

Compensatory damages (as adjusted)

$ 5,000,000

[1]

$ 10,000,000

Bond

$ 5,000,000

Punitive damages

12,500,000

Punitive damages - adjusted

$ 12,500,000

$ 12,500,000

Ledoux | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

47.00%

47.00%

Ledoux | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

47.00%

Ewing

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

98.00%

98.00%

Allocation of fault

2.00%

Compensatory damages

$ 240,000

$ 240,000

Compensatory damages (as adjusted)

[1]

$ 4,800

Ewing | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

2.00%

Ewing | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

0.00%

0.00%

Ahrens

Loss Contingencies [Line Items]

Allocation of fault to plaintiff

32.00%

32.00%

Compensatory damages

$ 9,000,000

$ 9,000,000

Compensatory damages (as adjusted)

[1]

5,800,000

Punitive damages

2,500,000

$ 2,500,000

Punitive damages - adjusted

$ 2,500,000

Ahrens | RJR Tobacco

Loss Contingencies [Line Items]

Allocation of fault

44.00%

44.00%

Ahrens | Other Defendant

Loss Contingencies [Line Items]

Allocation of fault

24.00%

24.00%

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

31,000,000

Broin | Lorillard Tobacco

Loss Contingencies [Line Items]

Litigation settlement, amount

$ 57,000,000

Broin II | Florida

Loss Contingencies [Line Items]

Lawsuits pending | LegalMatter

2,488

[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 and such fees and interest may be material.

[2]

The court did not apply comparative fault in the final judgment.

Commitments and Contingencies82

Commitments and Contingencies - Additional Information 15 (Detail) $ in Thousands	Oct. 01, 2006USD ($)	Nov. 30, 1998LegalMatter	Mar. 31, 2016USD ($)LegalMatterCase	Mar. 31, 2016USD ($)LegalMatterCase	Mar. 31, 2015LegalMatter	Nov. 06, 2013USD ($)	Sep. 13, 2013USD ($)	Mar. 31, 2003USD ($)	Dec. 31, 1999USD ($)
Loss Contingencies [Line Items]
Number of cases pending | LegalMatter			275	275	180
Claims resolved, Number | LegalMatter		4
Number of cases pending in state court | LegalMatter			228	228
Filter Cases | Lorillard Tobacco and Lorillard, Inc.
Loss Contingencies [Line Items]
Number of cases pending | Case			61	61
Filter Cases | Lorillard Tobacco
Loss Contingencies [Line Items]
Litigation settlement, amount				$ 42,400
Claims resolved, Number | LegalMatter				148
Light Case | Philip Morris
Loss Contingencies [Line Items]
Compensatory damages								$ 7,100,000
Punitive damages								$ 3,000,000
Sateriale | Camel Cash Cases
Loss Contingencies [Line Items]
Fees and expenses	$ 4,750
Parsons
Loss Contingencies [Line Items]
Judgment sought against each defendant			$ 1,000	$ 1,000
De Lisle | Filter Cases
Loss Contingencies [Line Items]
Compensatory damages							$ 8,000
De Lisle | Filter Cases | Hollingsworth & Vose
Loss Contingencies [Line Items]
Percentage of compensatory damages							22.00%
De Lisle | Filter Cases | Other Defendant
Loss Contingencies [Line Items]
Percentage of compensatory damages							56.00%
De Lisle | Filter Cases | Lorillard Tobacco
Loss Contingencies [Line Items]
Compensatory damages						$ 3,520
Percentage of compensatory damages							22.00%
United States v. Philip Morris USA Inc | U.S. Department of Justice Case
Loss Contingencies [Line Items]
Disgorgement charges sought									$ 280,000,000
DOJ
Loss Contingencies [Line Items]
Accrued estimated cost for corrective communication			$ 20,000
State Settlement Agreements
Loss Contingencies [Line Items]
Number of cases pending in state court | Case			28	28

Commitments and Contingencies R

Commitments and Contingencies Related to Settlements (Detail) - USD ($) $ in Millions		3 Months Ended	12 Months Ended
		Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
2,014
Master Settlement Agreement:
Annual Payments	[1]			$ 8,004
Total				9,364
Settlement expenses		$ 1,917
Settlement cash payments		1,985
2,015
Master Settlement Agreement:
Annual Payments	[1]		$ 8,004
Total			9,364
Settlement expenses		2,403
Settlement cash payments		2,166
2016 and thereafter
Master Settlement Agreement:
Annual Payments	[1]	8,004
Total		9,364
2016 | Minimum
Master Settlement Agreement:
Projected settlement expenses		2,800
Projected settlement cash payments		3,100
2017 | Minimum
Master Settlement Agreement:
Projected settlement expenses		3,100
Projected settlement cash payments		2,800
2018 | Minimum
Master Settlement Agreement:
Projected settlement expenses		3,300
Projected settlement cash payments		3,100
2019 and thereafter | Minimum
Master Settlement Agreement:
Projected settlement expenses		3,300
Projected settlement cash payments		3,300
Mississippi | 2014
First Four States' Settlements:
Annual Settlement Payment	[1]			136
Mississippi | 2015
First Four States' Settlements:
Annual Settlement Payment	[1]		136
Mississippi | 2016 and thereafter
First Four States' Settlements:
Annual Settlement Payment	[1]	136
Florida | 2014
First Four States' Settlements:
Annual Settlement Payment	[1]			440
Florida | 2015
First Four States' Settlements:
Annual Settlement Payment	[1]		440
Florida | 2016 and thereafter
First Four States' Settlements:
Annual Settlement Payment	[1]	440
Texas | 2014
First Four States' Settlements:
Annual Settlement Payment	[1]			580
Texas | 2015
First Four States' Settlements:
Annual Settlement Payment	[1]		580
Texas | 2016 and thereafter
First Four States' Settlements:
Annual Settlement Payment	[1]	580
Minnesota | 2014
First Four States' Settlements:
Annual Settlement Payment	[1]			$ 204
Minnesota | 2015
First Four States' Settlements:
Annual Settlement Payment	[1]		$ 204
Minnesota | 2016 and thereafter
First Four States' Settlements:
Annual Settlement Payment	[1]	$ 204
[1]	Subject to adjustments for changes in sales volume, inflation, operating profit and other factors. All payments are to be allocated among the companies on the basis of relative market share. For further information, see “— State Settlement Agreements — Enforcement and Validity; Adjustments” below.

Commitments and Contingencies84

Commitments and Contingencies - Additional Information 16 (Detail) $ in Millions	Nov. 03, 2011	Oct. 31, 2015USD ($)	Sep. 30, 2013USD ($)	Dec. 31, 2012	Jan. 31, 2009State	Mar. 31, 2016USD ($)Case	Dec. 31, 2006State	May. 31, 2006USD ($)	Nov. 30, 1998State
Loss Contingencies [Line Items]
Percentage of Allocable shares				49.87%
Number of states involved in MSA | State									46
NPM Adjustment Claim For 2003
Loss Contingencies [Line Items]
Number of states seeking declaratory orders for Qualifying Statuses | State							37
Number of states in arbitration for diligent enforcement | State							52
Courts deciding whether dispute is arbitrable | Case						47
Percentage of Allocable shares					90.00%
Percentage of Reduction in Ultimate Liability					20.00%
Number of states involved in MSA | State					45
Combined allocable shares percentage maximum	14.00%
Collectively allocable shares percentage			14.68%
NPM Adjustment Claim For 2003 | Maximum
Loss Contingencies [Line Items]
Courts deciding whether dispute is arbitrable | Case						48
NPM Adjustment Claim For 2003 | Lorillard Tobacco
Loss Contingencies [Line Items]
2006 MSA Disputed Payment						$ 109
NPM Adjustment Claim For 2003 | RJR Tobacco
Loss Contingencies [Line Items]
2006 MSA Disputed Payment						$ 615
Florida
Loss Contingencies [Line Items]
Payment Sought Under State Settlement Agreement								$ 12.4
Interest Payment Sought Under State Settlement Agreement								$ 17
Indiana And Kentucky | NPM Adjustment Claim For 2003
Loss Contingencies [Line Items]
Collectively allocable shares percentage			3.80%
PANAMA | Lorillard Tobacco
Loss Contingencies [Line Items]
Reduction in recovery from claims due to modification of judgment reduction method			$ 9.5
PANAMA | RJR Tobacco
Loss Contingencies [Line Items]
Reduction in recovery from claims due to modification of judgment reduction method			54
Missouri | NPM Adjustment Claim For 2003 | Lorillard Tobacco
Loss Contingencies [Line Items]
Reduction in recovery from claims due to modification of judgment reduction method			3.8
Missouri | NPM Adjustment Claim For 2003 | RJR Tobacco
Loss Contingencies [Line Items]
Reduction in recovery from claims due to modification of judgment reduction method			$ 21.4
Maryland | NPM Adjustment Claim For 2003 | Lorillard Tobacco
Loss Contingencies [Line Items]
Reduction in recovery from claims due to modification of judgment reduction method		$ 3.7
Maryland | NPM Adjustment Claim For 2003 | RJR Tobacco
Loss Contingencies [Line Items]
Reduction in recovery from claims due to modification of judgment reduction method		$ 21.2

Commitments and Contingencies85

Commitments and Contingencies - Additional Information 17 (Detail)	Oct. 31, 2015USD ($)	Oct. 20, 2015State	Dec. 31, 2012	Jan. 31, 2009	Mar. 31, 2016USD ($)Plaintiff	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Feb. 17, 2016USD ($)	Jun. 26, 2014State
Loss Contingencies [Line Items]
NPM Adjustment credits	$ 290,000,000
Arbitration Panel ruling					$ 0
NPM Adjustments remaining after settlements					$ 26,000,000
Percentage of Allocable shares			49.87%
Number of jurisdictions that have joined the settlement | State										24
Total Cost of FETRA buyout								$ 9,900,000,000
Puerto Rico subsidiaries
Loss Contingencies [Line Items]
Collectively allocable share of settlement percentage					42.00%
RJR Tobacco
Loss Contingencies [Line Items]
NPM Adjustments disputed, 2015							$ 481,000,000
RJR Tobacco and Santa Fe
Loss Contingencies [Line Items]
NPM Adjustment credits					$ 0	$ 70,000,000	93,000,000
Santa Fe
Loss Contingencies [Line Items]
NPM Adjustments disputed					67,000,000
NPM Adjustments disputed, 2015							18,000,000
NPM Adjustment Claim For 2003
Loss Contingencies [Line Items]
Arbitration Panel ruling					$ 108,000,000
Percentage of Allocable shares				90.00%
NPM Adjustment Claim For 2009 | RJR Tobacco
Loss Contingencies [Line Items]
Percentage of amount to Fund States' Antitrust/Consumer Protection Tobacco					47.00%
State Settlement Agreements | Kentucky And Indiana
Loss Contingencies [Line Items]
Percentage of Allocable shares					49.87%
State Settlement Agreements | New York
Loss Contingencies [Line Items]
Collectively allocable share of settlement percentage		12.76%
State Settlement Agreements | RJR Tobacco | New York
Loss Contingencies [Line Items]
Collectively allocable share of settlement percentage		62.63%
Number of jurisdictions that have joined the settlement | State		25
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]
Number of plaintiffs | Plaintiff					7
Loss contingency period of inaction					15 years
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								Sep. 30, 2014
Share of FETRA buyout					$ 2,500,000,000
Corwin
Loss Contingencies [Line Items]
Plaintiff request for attorney's fees and costs									$ 415,000
Lorillard Tobacco
Loss Contingencies [Line Items]
Arbitration Panel ruling					$ 19,000,000
NPM Adjustments disputed, 2015							$ 41,000,000
Lorillard Tobacco | NPM Adjustment Claim For 2009
Loss Contingencies [Line Items]
Percentage of amount to Fund States' Antitrust/Consumer Protection Tobacco					20.00%

Commitments and Contingencies86

Commitments and Contingencies (Details 1) (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
State Settlement Payment Expense [Line Items]
Year for which NPM Adjustment calculated year one	2,004
Year for which NPM Adjustment calculated year two	2,005
Year for which NPM Adjustment calculated year three	2,006
Year for which NPM Adjustment calculated year four	2,007
Year for which NPM Adjustment Calculated year five	2,008
Year for which NPM Adjustment calculated year six	2,009
Year for which NPM Adjustment calculated year seven	2,010
Year for which NPM Adjustment calculated year eight	2,011
Year for which NPM Adjustment calculated year nine	2,012
Year for which NPM Adjustment calculated year ten	2,013
Year for which NPM Adjustment calculated year eleven	2,014
Lorillard Tobacco
State Settlement Payment Expense [Line Items]
NPM Adjustments disputed, 2004	$ 111
NPM Adjustments disputed, 2005	76
NPM Adjustments disputed, 2006	73
NPM Adjustments disputed, 2007	83
NPM Adjustments disputed, 2008	104
NPM Adjustments disputed, 2009	107
NPM Adjustments disputed, 2010	119
NPM Adjustments disputed, 2011	88
NPM Adjustments disputed, 2012	96
NPM Adjustments disputed, 2013	91
NPM Adjustments disputed, 2014	92
NPM Adjustments remaining after settlements, 2004	41
NPM Adjustments remaining after settlements, 2005	29
NPM Adjustments remaining after settlements, 2006	27
NPM Adjustments remaining after settlements, 2007	32
NPM Adjustments remaining after settlements, 2008	40
NPM Adjustments remaining after settlements, 2009	41
NPM Adjustments remaining after settlements, 2010	46
NPM Adjustments remaining after settlements, 2011	34
NPM Adjustments remaining after settlements, 2012	37
NPM Adjustments remaining after settlements, 2013	35
NPM Adjustments remaining after settlements, 2014	36
RJR Tobacco
State Settlement Payment Expense [Line Items]
NPM Adjustments disputed, 2004	562
NPM Adjustments disputed, 2005	445
NPM Adjustments disputed, 2006	419
NPM Adjustments disputed, 2007	435
NPM Adjustments disputed, 2008	468
NPM Adjustments disputed, 2009	472
NPM Adjustments disputed, 2010	470
NPM Adjustments disputed, 2011	422
NPM Adjustments disputed, 2012	428
NPM Adjustments disputed, 2013	455
NPM Adjustments disputed, 2014	430
NPM Adjustments remaining after settlements, 2004	210
NPM Adjustments remaining after settlements, 2005	166
NPM Adjustments remaining after settlements, 2006	156
NPM Adjustments remaining after settlements, 2007	166
NPM Adjustments remaining after settlements, 2008	179
NPM Adjustments remaining after settlements, 2009	180
NPM Adjustments remaining after settlements, 2010	179
NPM Adjustments remaining after settlements, 2011	161
NPM Adjustments remaining after settlements, 2012	163
NPM Adjustments remaining after settlements, 2013	173
NPM Adjustments remaining after settlements, 2014	$ 164

Shareholders' Equity (Detail)

Shareholders' Equity (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stockholders Equity Note Disclosure [Line Items]
Beginning Balance	$ 18,252	$ 4,522
Net income	3,565	389
Retirement benefits, net of tax benefit	(6)	(6)
Unrealized gain on long-term investments, net of tax	1
Realized gain on long-term investments, net of tax expense (2016 — $1)	(2)
Realized loss on hedging instruments, net of tax expense (2016 — $6)	11
Cumulative translation adjustment and other, net of tax (benefit) expense (2016 — $11; 2015 — $(12))	22	(27)
Dividends	(602)	(359)
Common stock repurchased	(125)	(32)
Equity incentive award plan and stock-based compensation	21	18
Excess tax benefit on stock-based compensation plans	26	14
Ending Balance	21,163	4,519
Paid-in Capital
Stockholders Equity Note Disclosure [Line Items]
Beginning Balance	18,402	6,200
Common stock repurchased	(125)	(32)
Equity incentive award plan and stock-based compensation	21	18
Excess tax benefit on stock-based compensation plans	26	14
Ending Balance	18,324	6,200
Retained Earnings (Accumulated Deficit)
Stockholders Equity Note Disclosure [Line Items]
Beginning Balance	188	(1,314)
Net income	3,565	389
Dividends	(602)	(359)
Ending Balance	3,151	(1,284)
Accumulated Other Comprehensive Loss
Stockholders Equity Note Disclosure [Line Items]
Beginning Balance	(338)	(364)
Retirement benefits, net of tax benefit	(6)	(6)
Unrealized gain on long-term investments, net of tax	1
Realized gain on long-term investments, net of tax expense (2016 — $1)	(2)
Realized loss on hedging instruments, net of tax expense (2016 — $6)	11
Cumulative translation adjustment and other, net of tax (benefit) expense (2016 — $11; 2015 — $(12))	22	(27)
Ending Balance	$ (312)	$ (397)

Shareholders' Equity (Parenthet

Shareholders' Equity (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Equity [Abstract]
Tax benefit, retirement benefits	$ 4	$ 4
Tax expense, realized gain on long-term investments	1
Tax expense, realized loss on hedging instruments	6
Tax expense (benefit), cumulative translation adjustment and other	$ 11	$ (12)
Dividends, per share	$ 0.42	$ 0.335

Components of Accumulated Other

Components of Accumulated Other Comprehensive Loss Net of Tax (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	$ (338)	$ (364)
Other comprehensive loss before reclassifications	(4)	(27)
Amounts reclassified from accumulated other comprehensive loss	30	(6)
Net current-period other comprehensive loss	26	(33)
Ending balance	(312)	(397)
Accumulated Defined Benefit Plans Adjustment
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(244)	(294)
Amounts reclassified from accumulated other comprehensive loss	(6)	(6)
Net current-period other comprehensive loss	(6)	(6)
Ending balance	(250)	(300)
Accumulated Net Unrealized Investment Gain (Loss)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(14)	(14)
Other comprehensive loss before reclassifications	1
Amounts reclassified from accumulated other comprehensive loss	(2)
Net current-period other comprehensive loss	(1)
Ending balance	(15)	(14)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(11)	(12)
Amounts reclassified from accumulated other comprehensive loss	11
Net current-period other comprehensive loss	11
Ending balance		(12)
Accumulated Translation Adjustment and Other
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(69)	(44)
Other comprehensive loss before reclassifications	(5)	(27)
Amounts reclassified from accumulated other comprehensive loss	27
Net current-period other comprehensive loss	22	(27)
Ending balance	$ (47)	$ (71)

Reclassification Out of Accumul

Reclassification Out of Accumulated Other Comprehensive Loss and Affected Line Items in Condensed Consolidated Statement of Income (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of products sold	[1]	$ (1,165)	$ (850)
Selling, general and administrative expenses		(465)	(511)
Operating income		6,142	693
Other (income) expense, net		(252)	17
Provision for income taxes		(2,154)	(231)
Gain on divestiture		4,861
Net income		3,565	389
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net income		30	(6)
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)
Operating income		(10)	(10)
Provision for income taxes		4	4
Net income		(6)	$ (6)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss)
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Other (income) expense, net		(3)
Provision for income taxes		1
Net income		(2)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Other (income) expense, net		17
Provision for income taxes		(6)
Gain on divestiture		27
Net income		11
Reclassification out of Accumulated Other Comprehensive Income | Cumulative Translation Adjustment
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Gain on divestiture		$ 27
[1]	Excludes excise taxes of $1,030 million and $840 million for the three months ended March 31, 2016 and 2015, respectively.

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Feb. 10, 2016	Nov. 30, 2011	Mar. 31, 2016	Mar. 31, 2015
Shareholders Equity [Line Items]
Issuance of shares of RAI common stock on settlement			2,462,016
Cost of shares purchased that forfeited with respect to tax liabilities associated with restricted stock vesting			$ 47
Number of shares purchased that forfeited with respect to tax liabilities associated with restricted stock vesting under its LTIP			927,803
Cash dividend per share, declared			$ 0.42	$ 0.335
Dividends record date	Mar. 10, 2016
Decrease in ownership percentage of RAI's common stock		25.00%
Common stock repurchased			$ 125	$ 32
Stock Repurchase Program
Shareholders Equity [Line Items]
Shares repurchased			1,534,313
Common stock repurchased			$ 78
Quarterly Dividend
Shareholders Equity [Line Items]
Cash dividend per share, declared	$ 0.42
Annualized Dividend
Shareholders Equity [Line Items]
Cash dividend per share, declared	$ 1.68

Stock Plans - Additional Inform

Stock Plans - Additional Information (Detail)	Mar. 01, 2016shares	Jan. 19, 2016shares	May. 07, 2015shares	Jan. 31, 2016Grant$ / shares	May. 31, 2015	Mar. 31, 2016$ / shares
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value outstanding				$ 46.93
Number of grants | Grant				2
Restricted Stock Units | Retention Grant
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for grant | shares		16,094
Restricted Stock Units | Retention Grant | Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting date		Dec. 15, 2018
Grant vesting percentage		100.00%
Restricted Stock Units | Make-whole Grant
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for grant | shares		47,210
Restricted Stock Units | Make-whole Grant | Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting date		Dec. 15, 2016
Grant vesting percentage		50.00%
Restricted Stock Units | Make-whole Grant | Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting date		Dec. 15, 2017
Grant vesting percentage		50.00%
Three Year Grant | Omnibus Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for grant | shares	1,071,544
Restricted stock unit award adjustment upper end of range	150.00%
Weighted average grant date fair value outstanding						$ 50.49
Cumulative dividend threshold						$ 5.04
Three Year Grant | Omnibus Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock unit award adjustment						50.00%
Three Year Grant | Restricted Stock Units | Omnibus Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting date	Mar. 1, 2019
One Year Grant | Omnibus Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock unit award adjustment upper end of range					200.00%
Weighted average grant date fair value outstanding						$ 50.31
Cumulative dividend threshold						$ 1.34
Number of shares granted | shares			217,304
Ending date of performance period					Apr. 30, 2016	Apr. 30, 2016
One Year Grant | Omnibus Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock unit award adjustment						50.00%
One Year Grant | Restricted Stock Units | Omnibus Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting date					May 7, 2016

Segment Information - Additiona

Segment Information - Additional Information (Detail) $ in Billions	Jan. 13, 2016USD ($)
NAS Brand | JTI Holding
Segment Reporting Information [Line Items]
Transaction cost	$ 5

Segment Information (Detail)

Segment Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Net sales	$ 2,917	$ 2,057
Operating income (loss)	6,142	693
Gain on divestiture	4,861
Interest and debt expense	174	91
Interest income	(3)	(1)
Other (income) expense, net	252	(17)
Income from operations before income taxes	5,719	620
Operating Segments | RJR Tobacco
Segment Reporting Information [Line Items]
Net sales	2,411	1,608
Operating income (loss)	1,107	588
Operating Segments | Santa Fe
Segment Reporting Information [Line Items]
Net sales	218	171
Operating income (loss)	123	92
Operating Segments | American Snuff
Segment Reporting Information [Line Items]
Net sales	216	201
Operating income (loss)	133	118
Operating Segments | All Other
Segment Reporting Information [Line Items]
Net sales	72	77
Operating income (loss)	(34)	(61)
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Operating income (loss)	$ (48)	$ (44)

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - BAT Affiliate - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Jan. 31, 2016	Mar. 31, 2016	Mar. 31, 2015
Related Party Transaction [Line Items]
Percentage of RAI's outstanding common stock		42.00%
Revenue percentage from related parties		2.00%	4.00%
Percentage of maximum purchase price		10.00%
Contract manufacturing amendment fee	$ 6	$ 6

Summary of Balances and Transac

Summary of Balances and Transactions (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Jan. 31, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Accounts receivable, related party		$ 31		$ 38
Due to related party		2		9
Deferred revenue, related party		25		33
Other current liabilities		1,031		1,234
Net sales		55	$ 82
BAT Affiliate
Related Party Transaction [Line Items]
Accounts receivable, related party		31		38
Due to related party		2		9
Deferred revenue, related party		25		33
Other current liabilities				$ 2
Net sales		55	82
Purchases		8	$ 2
Contract manufacturing amendment fee	$ 6	$ 6

RAI Guaranteed Unsecured Notes

RAI Guaranteed Unsecured Notes - Condensed Consolidating Financial Statements (Detail) $ in Billions	Mar. 31, 2016USD ($)
RAI
Condensed Financial Statements Captions [Line Items]
Aggregate principal amount of unsecured notes	$ 13.1

Condensed Consolidating Stateme

Condensed Consolidating Statements of Income (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Condensed Financial Statements Captions [Line Items]
Net sales	[1]	$ 2,862	$ 1,975
Net sales, related party		55	82
Net sales		2,917	2,057
Cost of products sold	[1]	1,165	850
Selling, general and administrative expenses		465	511
Gain on divestiture		(4,861)
Amortization expense		6	3
Operating income		6,142	693
Interest and debt expense		174	91
Interest income		(3)	(1)
Other (income) expense, net		252	(17)
Income from operations before income taxes		5,719	620
Provision for income taxes		2,154	231
Net income		3,565	389
RAI
Condensed Financial Statements Captions [Line Items]
Selling, general and administrative expenses		16	19
Operating income		(16)	(19)
Interest and debt expense		174	91
Interest income		(26)	(19)
Other (income) expense, net		240	1
Income from operations before income taxes		(404)	(92)
Provision for income taxes		(142)	(27)
Equity income from subsidiaries		3,827	454
Net income		3,565	389
Guarantors
Condensed Financial Statements Captions [Line Items]
Net sales		2,839	1,999
Net sales, related party		55	82
Net sales		2,894	2,081
Cost of products sold		1,149	869
Selling, general and administrative expenses		401	425
Gain on divestiture		(4,843)
Amortization expense		6	3
Operating income		6,181	784
Interest and debt expense		23	17
Interest income		(2)	(1)
Other (income) expense, net		(6)	(10)
Income from operations before income taxes		6,166	778
Provision for income taxes		2,308	281
Equity income from subsidiaries			20
Net income		3,858	517
Guarantors | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Interest income		(1)	(1)
Other (income) expense, net		(10)	(10)
Income from operations before income taxes		11	11
Equity income from subsidiaries		656	388
Net income		667	399
Non-Guarantors
Condensed Financial Statements Captions [Line Items]
Net sales		49	68
Net sales		49	68
Cost of products sold		43	70
Selling, general and administrative expenses		48	67
Gain on divestiture		(16)
Operating income		(26)	(69)
Interest and debt expense		2	2
Other (income) expense, net		7	(19)
Income from operations before income taxes		(35)	(52)
Provision for income taxes		(12)	(23)
Net income		(23)	(29)
Non-Guarantors | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Net sales		524	434
Net sales		524	434
Cost of products sold		194	169
Selling, general and administrative expenses		(186)	40
Gain on divestiture		(4,861)
Amortization expense		2	2
Operating income		5,375	223
Interest and debt expense		26	15
Other (income) expense, net		7	(18)
Income from operations before income taxes		5,342	226
Provision for income taxes		1,969	82
Net income		3,373	144
RJR | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Net sales		2,383	1,621
Net sales, related party		55	82
Net sales		2,438	1,703
Cost of products sold		1,017	758
Selling, general and administrative expenses		635	452
Amortization expense		4	1
Operating income		782	492
Interest and debt expense			5
Interest income		(2)	(1)
Other (income) expense, net		4
Income from operations before income taxes		780	488
Provision for income taxes		327	176
Equity income from subsidiaries		184	78
Net income		637	390
Eliminations
Condensed Financial Statements Captions [Line Items]
Net sales		(26)	(92)
Net sales		(26)	(92)
Cost of products sold		(27)	(89)
Gain on divestiture		(2)
Operating income		3	(3)
Interest and debt expense		(25)	(19)
Interest income		25	19
Other (income) expense, net		11	11
Income from operations before income taxes		(8)	(14)
Equity income from subsidiaries		(3,827)	(474)
Net income		(3,835)	(488)
Eliminations | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Net sales		(45)	(80)
Net sales		(45)	(80)
Cost of products sold		(46)	(77)
Operating income		1	(3)
Interest and debt expense		(26)	(20)
Interest income		26	20
Other (income) expense, net		11	10
Income from operations before income taxes		(10)	(13)
Equity income from subsidiaries		(4,667)	(920)
Net income		$ (4,677)	$ (933)
[1]	Excludes excise taxes of $1,030 million and $840 million for the three months ended March 31, 2016 and 2015, respectively.

Condensed Consolidating State99

Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Financial Statements Captions [Line Items]
Net income (loss)	$ 3,565	$ 389
Other comprehensive income (loss), net of tax:
Retirement benefits, net of tax benefit	(6)	(6)
Unrealized gain on long-term investments, net of tax	1
Realized gain on long-term investments	(2)
Realized loss on hedging instruments	11
Cumulative translation adjustment and other	22	(27)
Comprehensive income	3,591	356
RAI
Condensed Financial Statements Captions [Line Items]
Net income (loss)	3,565	389
Other comprehensive income (loss), net of tax:
Retirement benefits, net of tax benefit	(6)	(6)
Unrealized gain on long-term investments, net of tax	1
Realized gain on long-term investments	(2)
Realized loss on hedging instruments	11
Cumulative translation adjustment and other	22	(27)
Comprehensive income	3,591	356
Guarantors
Condensed Financial Statements Captions [Line Items]
Net income (loss)	3,858	517
Other comprehensive income (loss), net of tax:
Retirement benefits, net of tax benefit	(6)	(6)
Unrealized gain on long-term investments, net of tax	1
Realized gain on long-term investments	(2)
Cumulative translation adjustment and other	22	(27)
Comprehensive income	3,873	484
Guarantors | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Net income (loss)	667	399
Other comprehensive income (loss), net of tax:
Retirement benefits, net of tax benefit	(6)	(5)
Unrealized gain on long-term investments, net of tax	1
Realized gain on long-term investments	(2)
Cumulative translation adjustment and other	22	(26)
Comprehensive income	682	368
Non-Guarantors
Condensed Financial Statements Captions [Line Items]
Net income (loss)	(23)	(29)
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment and other	33	(40)
Comprehensive income	10	(69)
Non-Guarantors | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Net income (loss)	3,373	144
Other comprehensive income (loss), net of tax:
Cumulative translation adjustment and other	22	(27)
Comprehensive income	3,395	117
RJR | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Net income (loss)	637	390
Other comprehensive income (loss), net of tax:
Retirement benefits, net of tax benefit	(6)	(5)
Unrealized gain on long-term investments, net of tax	1
Realized gain on long-term investments	(2)
Cumulative translation adjustment and other	21	(27)
Comprehensive income	651	358
Eliminations
Condensed Financial Statements Captions [Line Items]
Net income (loss)	(3,835)	(488)
Other comprehensive income (loss), net of tax:
Retirement benefits, net of tax benefit	6	6
Unrealized gain on long-term investments, net of tax	(1)
Realized gain on long-term investments	2
Cumulative translation adjustment and other	(55)	67
Comprehensive income	(3,883)	(415)
Eliminations | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Net income (loss)	(4,677)	(933)
Other comprehensive income (loss), net of tax:
Retirement benefits, net of tax benefit	12	10
Unrealized gain on long-term investments, net of tax	(2)
Realized gain on long-term investments	4
Cumulative translation adjustment and other	(65)	80
Comprehensive income	$ (4,728)	$ (843)

Reclassification Out of Accu100

Reclassification Out of Accumulated Other Comprehensive Loss and Affected Line Items in Condensed Consolidating Statements of Income (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of products sold	[1]	$ (1,165)	$ (850)
Selling, general and administrative expenses, net		(465)	(511)
Operating income		6,142	693
Other (income) expense, net		(252)	17
Provision for income taxes		(2,154)	(231)
Net income		3,565	389
Gain on divestiture		4,861
RAI
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Selling, general and administrative expenses, net		(16)	(19)
Operating income		(16)	(19)
Other (income) expense, net		(240)	(1)
Provision for income taxes		142	27
Equity income (loss) from subsidiaries		3,827	454
Net income		3,565	389
Guarantors
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of products sold		(1,149)	(869)
Selling, general and administrative expenses, net		(401)	(425)
Operating income		6,181	784
Other (income) expense, net		6	10
Provision for income taxes		(2,308)	(281)
Equity income (loss) from subsidiaries			20
Net income		3,858	517
Gain on divestiture		4,843
Guarantors | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Other (income) expense, net		10	10
Equity income (loss) from subsidiaries		656	388
Net income		667	399
Non-Guarantors
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of products sold		(43)	(70)
Selling, general and administrative expenses, net		(48)	(67)
Operating income		(26)	(69)
Other (income) expense, net		(7)	19
Provision for income taxes		12	23
Net income		(23)	(29)
Gain on divestiture		16
Non-Guarantors | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of products sold		(194)	(169)
Selling, general and administrative expenses, net		186	(40)
Operating income		5,375	223
Other (income) expense, net		(7)	18
Provision for income taxes		(1,969)	(82)
Net income		3,373	144
Gain on divestiture		4,861
RJR | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of products sold		(1,017)	(758)
Selling, general and administrative expenses, net		(635)	(452)
Operating income		782	492
Other (income) expense, net		(4)
Provision for income taxes		(327)	(176)
Equity income (loss) from subsidiaries		184	78
Net income		637	390
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net income		30	(6)
Reclassification out of Accumulated Other Comprehensive Income | RAI
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net income		30
Reclassification out of Accumulated Other Comprehensive Income | Guarantors
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net income		19
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net income		19
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net income		27
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net income		27
Reclassification out of Accumulated Other Comprehensive Income | RJR | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net income		19
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, net		(5)	(5)
Operating income		(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 (loss) from subsidiaries			(6)
Net income			(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, net		(5)	(5)
Operating income		(10)	(10)
Provision for income taxes		4	4
Net income		(6)	(6)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | Guarantors | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Equity income (loss) from subsidiaries			(6)
Net income			(6)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | RJR | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of products sold		(5)	(5)
Selling, general and administrative expenses, net		(5)	(5)
Operating income		(10)	(10)
Provision for income taxes		4	4
Net income		(6)	(6)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss)
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Other (income) expense, net		(3)
Provision for income taxes		1
Net income		(2)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss) | Guarantors
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Other (income) expense, net		(3)
Provision for income taxes		1
Net income		(2)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss) | RJR | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Other (income) expense, net		(3)
Provision for income taxes		1
Net income		(2)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Other (income) expense, net		17
Provision for income taxes		(6)
Net income		11
Gain on divestiture		27
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | RAI
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Other (income) expense, net		17
Provision for income taxes		(6)
Equity income (loss) from subsidiaries		19
Net income		11
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Guarantors | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Equity income (loss) from subsidiaries		19
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Non-Guarantors | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Gain on divestiture		27
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | RJR | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Equity income (loss) from subsidiaries		27
Reclassification out of Accumulated Other Comprehensive Income | Cumulative Translation Adjustment
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Gain on divestiture		27
Reclassification out of Accumulated Other Comprehensive Income | Cumulative Translation Adjustment | RAI
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Equity income (loss) from subsidiaries		19
Reclassification out of Accumulated Other Comprehensive Income | Cumulative Translation Adjustment | Guarantors
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Equity income (loss) from subsidiaries		27
Reclassification out of Accumulated Other Comprehensive Income | Cumulative Translation Adjustment | Non-Guarantors
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Gain on divestiture		27
Eliminations
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of products sold		27	89
Operating income		3	(3)
Other (income) expense, net		(11)	(11)
Equity income (loss) from subsidiaries		(3,827)	(474)
Net income		(3,835)	(488)
Gain on divestiture		2
Eliminations | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of products sold		46	77
Operating income		1	(3)
Other (income) expense, net		(11)	(10)
Equity income (loss) from subsidiaries		(4,667)	(920)
Net income		(4,677)	(933)
Eliminations | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net income		(46)
Eliminations | Reclassification out of Accumulated Other Comprehensive Income | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net income		(65)
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 (loss) from subsidiaries			6
Net income			6
Eliminations | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Equity income (loss) from subsidiaries			12
Net income			$ 12
Eliminations | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | RJR Tobacco
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Equity income (loss) from subsidiaries		(65)
Eliminations | Reclassification out of Accumulated Other Comprehensive Income | Cumulative Translation Adjustment
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Equity income (loss) from subsidiaries		$ (46)
[1]	Excludes excise taxes of $1,030 million and $840 million for the three months ended March 31, 2016 and 2015, respectively.

Condensed Consolidating Stat101

Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Millions	Jun. 12, 2015	Mar. 31, 2016	Mar. 31, 2015
Condensed Financial Statements Captions [Line Items]
Cash flows from (used in) operating activities		$ 1,133	$ 1,080
Cash flows from (used in) investing activities:
Capital expenditures		(43)	(26)
Proceeds from settlement of short-term investments		159
Proceeds from divestiture	$ 7,100	5,014
Other, net		1	1
Net cash flows from (used in) investing activities		5,131	(25)
Cash flows from (used in) financing activities:
Dividends paid on common stock		(514)	(356)
Repurchase of common stock		(125)	(32)
Early extinguishment of debt		(3,642)
Redemption premium for tender offer		(118)
Make-whole premium for early extinguishment of debt		(88)
Proceeds from termination of interest rate swaps		66
Debt financing fees		(7)
Excess tax benefit on stock-based compensation plans		26	14
Net cash flows used in financing activities		(4,402)	(374)
Borrowings under revolving credit facility			300
Repayments of borrowings under revolving credit facility			(300)
Effect of exchange rate changes on cash and cash equivalents		12	(32)
Net change in cash and cash equivalents		1,874	649
Cash and cash equivalents at beginning of period		2,567	966
Cash and cash equivalents at end of period		4,441	1,615
RAI
Condensed Financial Statements Captions [Line Items]
Cash flows from (used in) operating activities		(563)	480
Cash flows from (used in) investing activities:
Proceeds from divestiture		5,014
Return of intercompany investments		412	185
Other, net		20
Net cash flows from (used in) investing activities		5,446	185
Cash flows from (used in) financing activities:
Dividends paid on common stock		(514)	(356)
Repurchase of common stock		(125)	(32)
Early extinguishment of debt		(3,642)
Redemption premium for tender offer		(118)
Make-whole premium for early extinguishment of debt		(88)
Debt financing fees		(7)
Excess tax benefit on stock-based compensation plans		26	14
Dividends paid on preferred stock		(11)	(11)
Other, net		(11)	(11)
Net cash flows used in financing activities		(4,490)	(396)
Borrowings under revolving credit facility			300
Repayments of borrowings under revolving credit facility			(300)
Net change in cash and cash equivalents		393	269
Cash and cash equivalents at beginning of period		575	102
Cash and cash equivalents at end of period		968	371
Guarantors
Condensed Financial Statements Captions [Line Items]
Cash flows from (used in) operating activities		2,009	1,091
Cash flows from (used in) investing activities:
Capital expenditures		(39)	(28)
Proceeds from settlement of short-term investments		159
Return of intercompany investments		26
Other, net		12	12
Net cash flows from (used in) investing activities		158	(16)
Cash flows from (used in) financing activities:
Dividends paid on common stock		(247)	(479)
Proceeds from termination of interest rate swaps		66
Distribution of equity		(412)	(185)
Other, net		(20)	(20)
Net cash flows used in financing activities		(613)	(684)
Net change in cash and cash equivalents		1,554	391
Cash and cash equivalents at beginning of period		1,544	469
Cash and cash equivalents at end of period		3,098	860
Guarantors | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Cash flows from (used in) operating activities		37	473
Cash flows from (used in) investing activities:
Return of intercompany investments		598	184
Other, net		8	8
Net cash flows from (used in) investing activities		606	192
Cash flows from (used in) financing activities:
Dividends paid on common stock		(247)	(479)
Distribution of equity		(412)	(185)
Net cash flows used in financing activities		(659)	(664)
Net change in cash and cash equivalents		(16)	1
Cash and cash equivalents at beginning of period		19	3
Cash and cash equivalents at end of period		3	4
Non-Guarantors
Condensed Financial Statements Captions [Line Items]
Cash flows from (used in) operating activities		(30)	2
Cash flows from (used in) investing activities:
Capital expenditures		(4)	(1)
Net cash flows from (used in) investing activities		(4)	(1)
Cash flows from (used in) financing activities:
Dividends paid on common stock		(25)
Distribution of equity		(26)
Other, net			20
Net cash flows used in financing activities		(51)	20
Effect of exchange rate changes on cash and cash equivalents		12	(32)
Net change in cash and cash equivalents		(73)	(11)
Cash and cash equivalents at beginning of period		448	395
Cash and cash equivalents at end of period		375	384
Non-Guarantors | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Cash flows from (used in) operating activities		315	171
Cash flows from (used in) investing activities:
Capital expenditures		(14)	(12)
Other, net		11	11
Net cash flows from (used in) investing activities		(3)	(1)
Cash flows from (used in) financing activities:
Dividends paid on common stock		(160)	(65)
Distribution of equity		(513)	(10)
Other, net		(28)	(8)
Net cash flows used in financing activities		(701)	(83)
Effect of exchange rate changes on cash and cash equivalents		12	(32)
Net change in cash and cash equivalents		(377)	55
Cash and cash equivalents at beginning of period		1,164	534
Cash and cash equivalents at end of period		787	589
RJR | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Cash flows from (used in) operating activities		1,762	975
Cash flows from (used in) investing activities:
Capital expenditures		(29)	(17)
Proceeds from settlement of short-term investments		159
Return of intercompany investments		495	10
Other, net		1	1
Net cash flows from (used in) investing activities		626	(6)
Cash flows from (used in) financing activities:
Dividends paid on common stock			(461)
Proceeds from termination of interest rate swaps		66
Distribution of equity		(580)	(184)
Net cash flows used in financing activities		(514)	(645)
Net change in cash and cash equivalents		1,874	324
Cash and cash equivalents at beginning of period		809	327
Cash and cash equivalents at end of period		2,683	651
Eliminations
Condensed Financial Statements Captions [Line Items]
Cash flows from (used in) operating activities		(283)	(493)
Cash flows from (used in) investing activities:
Capital expenditures			3
Return of intercompany investments		(438)	(185)
Other, net		(31)	(11)
Net cash flows from (used in) investing activities		(469)	(193)
Cash flows from (used in) financing activities:
Dividends paid on common stock		272	479
Dividends paid on preferred stock		11	11
Distribution of equity		438	185
Other, net		31	11
Net cash flows used in financing activities		752	686
Eliminations | RJR Tobacco
Condensed Financial Statements Captions [Line Items]
Cash flows from (used in) operating activities		(418)	(1,019)
Cash flows from (used in) investing activities:
Capital expenditures			3
Return of intercompany investments		(1,505)	(379)
Other, net		(39)	(19)
Net cash flows from (used in) investing activities		(1,544)	(395)
Cash flows from (used in) financing activities:
Dividends paid on common stock		407	1,005
Dividends paid on preferred stock		11	11
Distribution of equity		1,505	379
Other, net		39	19
Net cash flows used in financing activities		$ 1,962	$ 1,414

Condensed Consolidating Balance

Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 4,441	$ 2,567	$ 1,615	$ 966
Short-term investments	14	149
Accounts receivable	80	68
Accounts receivable, related party	31	38
Other receivables	30	35
Inventories	1,658	1,734
Deferred income taxes, net	992	1,032
Other current assets	283	564
Total current assets	7,529	6,187
Property, plant and equipment, net	1,269	1,255
Trademarks and other intangible assets, net	29,461	29,467
Goodwill	15,993	15,993
Other assets and deferred charges	156	230
Total assets	54,408	53,132
Liabilities and shareholders’ equity
Accounts payable	138	179
Tobacco settlement accruals	3,446	2,816
Due to related party	2	9
Deferred revenue, related party	25	33
Current maturities of long-term debt	503	506
Dividends payable on common stock	599	514
Income taxes payable	1,860
Other current liabilities	1,031	1,234
Total current liabilities	7,604	5,291
Long-term debt (less current maturities)	13,213	16,849
Deferred income taxes, net	10,285	10,236
Long-term retirement benefits (less current portion)	1,917	2,265
Other noncurrent liabilities	226	239
Shareholders’ equity	21,163	18,252	4,519	4,522
Total liabilities and shareholders' equity	54,408	53,132
RJR Tobacco
Assets
Goodwill	13,306	13,306
RAI
Assets
Cash and cash equivalents	968	575	371	102
Other receivables	72	70
Deferred income taxes, net	7	14
Other current assets	11	116
Total current assets	1,058	775
Property, plant and equipment, net	3	3
Long-term intercompany notes receivable	1,562	1,583
Investment in subsidiaries	37,154	37,151
Other assets and deferred charges	165	175
Total assets	39,942	39,687
Liabilities and shareholders’ equity
Accounts payable	3	2
Current maturities of long-term debt	417	420
Dividends payable on common stock	599	514
Income taxes payable	1,766
Other current liabilities	2,858	3,707
Total current liabilities	5,643	4,643
Long-term intercompany notes payable	159	169
Long-term debt (less current maturities)	12,886	16,522
Long-term retirement benefits (less current portion)	52	57
Other noncurrent liabilities	39	44
Shareholders’ equity	21,163	18,252
Total liabilities and shareholders' equity	39,942	39,687
Guarantors
Assets
Cash and cash equivalents	3,098	1,544	860	469
Short-term investments	14	149
Accounts receivable	72	62
Accounts receivable, related party	31	38
Other receivables	2,681	3,459
Inventories	1,625	1,694
Deferred income taxes, net	979	1,011
Other current assets	272	323
Total current assets	8,772	8,280
Property, plant and equipment, net	1,234	1,223
Trademarks and other intangible assets, net	29,461	29,467
Goodwill	15,977	15,976
Long-term intercompany notes receivable	159	169
Investment in subsidiaries	532	662
Other assets and deferred charges	134	212
Total assets	56,269	55,989
Liabilities and shareholders’ equity
Accounts payable	130	173
Tobacco settlement accruals	3,446	2,816
Due to related party	2	9
Deferred revenue, related party	25	33
Current maturities of long-term debt	86	86
Income taxes payable	172
Other current liabilities	882	1,039
Total current liabilities	4,743	4,156
Long-term intercompany notes payable	1,240	1,260
Long-term debt (less current maturities)	327	327
Deferred income taxes, net	10,460	10,421
Long-term retirement benefits (less current portion)	1,812	2,153
Other noncurrent liabilities	187	195
Shareholders’ equity	37,500	37,477
Total liabilities and shareholders' equity	56,269	55,989
Guarantors | RJR Tobacco
Assets
Cash and cash equivalents	3	19	4	3
Other receivables	17	17
Deferred income taxes, net	1	1
Total current assets	21	37
Goodwill	9,853	9,853
Long-term intercompany notes receivable	82	90
Investment in subsidiaries	24,244	24,276
Other assets and deferred charges	12	13
Total assets	34,212	34,269
Liabilities and shareholders’ equity
Other current liabilities	52	31
Total current liabilities	52	31
Long-term retirement benefits (less current portion)	29	30
Shareholders’ equity	34,131	34,208
Total liabilities and shareholders' equity	34,212	34,269
Non-Guarantors
Assets
Cash and cash equivalents	375	448	384	395
Accounts receivable	8	6
Other receivables	20	91
Inventories	35	44
Deferred income taxes, net	6	7
Other current assets	75	129
Total current assets	519	725
Property, plant and equipment, net	32	29
Goodwill	16	17
Other assets and deferred charges	35	31
Total assets	602	802
Liabilities and shareholders’ equity
Accounts payable	5	4
Other current liabilities	34	79
Total current liabilities	39	83
Long-term intercompany notes payable	322	323
Long-term retirement benefits (less current portion)	53	55
Shareholders’ equity	188	341
Total liabilities and shareholders' equity	602	802
Non-Guarantors | RJR Tobacco
Assets
Cash and cash equivalents	787	1,164	589	534
Accounts receivable	42	20
Other receivables	4,994	4,890
Inventories	748	797
Deferred income taxes, net	100	89
Other current assets	43	212
Total current assets	6,714	7,172
Property, plant and equipment, net	461	460
Trademarks and other intangible assets, net	29,119	29,121
Goodwill	2,687	2,687
Long-term intercompany notes receivable	159	169
Other assets and deferred charges	13	9
Total assets	39,153	39,618
Liabilities and shareholders’ equity
Accounts payable	19	31
Tobacco settlement accruals	178	143
Income taxes payable	51
Other current liabilities	222	284
Total current liabilities	470	458
Long-term intercompany notes payable	1,644	1,673
Deferred income taxes, net	10,965	10,981
Long-term retirement benefits (less current portion)	129	142
Other noncurrent liabilities	23	13
Shareholders’ equity	25,922	26,351
Total liabilities and shareholders' equity	39,153	39,618
RJR | RJR Tobacco
Assets
Cash and cash equivalents	2,683	809	$ 651	$ 327
Short-term investments	14	149
Accounts receivable	38	48
Accounts receivable, related party	31	38
Other receivables	26	30
Inventories	912	941
Deferred income taxes, net	884	928
Other current assets	229	236
Total current assets	4,817	3,179
Property, plant and equipment, net	805	792
Trademarks and other intangible assets, net	342	346
Goodwill	3,453	3,453
Investment in subsidiaries	22,724	23,199
Other assets and deferred charges	650	783
Total assets	32,791	31,752
Liabilities and shareholders’ equity
Accounts payable	116	146
Tobacco settlement accruals	3,268	2,673
Due to related party	2	9
Deferred revenue, related party	25	33
Current maturities of long-term debt	86	86
Income taxes payable	46
Other current liabilities	2,978	2,189
Total current liabilities	6,521	5,136
Long-term debt (less current maturities)	327	327
Deferred income taxes, net	1	1
Long-term retirement benefits (less current portion)	1,707	2,036
Other noncurrent liabilities	164	182
Shareholders’ equity	24,071	24,070
Total liabilities and shareholders' equity	32,791	31,752
Eliminations
Assets
Other receivables	(2,743)	(3,585)
Inventories	(2)	(4)
Other current assets	(75)	(4)
Total current assets	(2,820)	(3,593)
Long-term intercompany notes receivable	(1,721)	(1,752)
Investment in subsidiaries	(37,686)	(37,813)
Other assets and deferred charges	(178)	(188)
Total assets	(42,405)	(43,346)
Liabilities and shareholders’ equity
Income taxes payable	(78)
Other current liabilities	(2,743)	(3,591)
Total current liabilities	(2,821)	(3,591)
Long-term intercompany notes payable	(1,721)	(1,752)
Deferred income taxes, net	(175)	(185)
Shareholders’ equity	(37,688)	(37,818)
Total liabilities and shareholders' equity	(42,405)	(43,346)
Eliminations | RJR Tobacco
Assets
Other receivables	(5,079)	(4,972)
Inventories	(2)	(4)
Total current assets	(5,081)	(4,976)
Long-term intercompany notes receivable	(1,803)	(1,842)
Investment in subsidiaries	(84,122)	(84,626)
Other assets and deferred charges	(684)	(750)
Total assets	(91,690)	(92,194)
Liabilities and shareholders’ equity
Income taxes payable	(3)
Other current liabilities	(5,079)	(4,977)
Total current liabilities	(5,082)	(4,977)
Long-term intercompany notes payable	(1,803)	(1,842)
Deferred income taxes, net	(681)	(746)
Shareholders’ equity	(84,124)	(84,629)
Total liabilities and shareholders' equity	$ (91,690)	$ (92,194)

RJR Tobacco Guaranteed Unsecure

RJR Tobacco Guaranteed Unsecured Notes - Condensed Consolidating Financial Statements - Additional Information (Detail) $ in Millions	Mar. 31, 2016USD ($)
RJR
Condensed Financial Statements Captions [Line Items]
Aggregate principal amount of unsecured notes	$ 377