Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 23, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RAI | ||
Entity Registrant Name | REYNOLDS AMERICAN INC | ||
Entity Central Index Key | 1,275,283 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 1,425,934,305 | ||
Entity Public Float | $ 44 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | Jun. 12, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||
Income Statement [Abstract] | |||||||||||||||||||||||||
Net sales | [1] | $ 12,277 | $ 10,416 | $ 8,160 | |||||||||||||||||||||
Net sales, related party | 226 | 259 | 311 | ||||||||||||||||||||||
Net sales | $ 3,186 | $ 3,205 | $ 3,195 | $ 2,917 | $ 3,054 | $ 3,161 | $ 2,403 | $ 2,057 | 12,503 | 10,675 | 8,471 | ||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Cost of products sold | [1] | 4,841 | 4,688 | 4,058 | |||||||||||||||||||||
Selling, general and administrative expenses | 1,931 | 2,098 | 1,871 | ||||||||||||||||||||||
Gain on divestitures | $ (3,181) | (4,861) | (3,181) | ||||||||||||||||||||||
Amortization expense | 23 | 18 | 11 | ||||||||||||||||||||||
Asset impairment and exit charges | 99 | ||||||||||||||||||||||||
Operating income | [2],[3],[4] | 10,569 | 6,953 | 2,531 | |||||||||||||||||||||
Interest and debt expense | 626 | 570 | 286 | ||||||||||||||||||||||
Interest income | (8) | (6) | (3) | ||||||||||||||||||||||
Other (income) expense, net | 260 | 5 | (14) | ||||||||||||||||||||||
Income from continuing operations before income taxes | 9,691 | 6,384 | 2,262 | ||||||||||||||||||||||
Provision for income taxes | 3,618 | 3,131 | 817 | ||||||||||||||||||||||
Income from continuing operations | 6,073 | 3,253 | 1,445 | ||||||||||||||||||||||
Income from discontinued operations, net of tax | 25 | ||||||||||||||||||||||||
Net income | $ 851 | [5],[6] | $ 861 | [5],[6] | $ 796 | [5],[6] | $ 3,565 | [5],[6] | $ 279 | [7],[8] | $ 657 | [7],[8] | $ 1,928 | [7],[8] | $ 389 | [7],[8] | $ 6,073 | $ 3,253 | $ 1,470 | ||||||
Basic income per share: | |||||||||||||||||||||||||
Income from continuing operations | $ 4.26 | $ 2.57 | $ 1.36 | ||||||||||||||||||||||
Income from discontinued operations | 0.02 | ||||||||||||||||||||||||
Net income | $ 0.60 | [9] | $ 0.60 | [9] | $ 0.56 | [9] | $ 2.50 | [9] | $ 0.20 | [9] | $ 0.46 | [9] | $ 1.70 | [9] | $ 0.36 | [9] | 4.26 | 2.57 | 1.38 | ||||||
Diluted income per share: | |||||||||||||||||||||||||
Income from continuing operations | 4.25 | 2.57 | 1.35 | ||||||||||||||||||||||
Income from discontinued operations | 0.02 | ||||||||||||||||||||||||
Net income | 0.60 | [9] | 0.60 | [9] | 0.56 | [9] | 2.49 | [9] | 0.19 | [9] | 0.46 | [9] | 1.69 | [9] | 0.36 | [9] | 4.25 | 2.57 | 1.37 | ||||||
Dividends declared per share | $ 0.46 | $ 0.46 | $ 0.42 | $ 0.42 | $ 0.360 | $ 0.360 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.335 | $ 1.76 | $ 1.39 | $ 1.34 | ||||||||||
[1] | Excludes excise taxes of $4,343 million, $4,209 million and $3,625 million for the years ended December 31, 2016, 2015 and 2014, respectively. | ||||||||||||||||||||||||
[2] | Includes $99 million of asset impairment and exit charges for the year ended December 31, 2015. See note 6. | ||||||||||||||||||||||||
[3] | Includes MTM adjustment expense of $42 million for RJR Tobacco and $3 million for Corporate Expense for the year ended December 31, 2016. Includes MTM adjustment expense of $229 million for RJR Tobacco, $1 million for American Snuff and $16 million for Corporate Expense and All Other for the year ended December 31, 2015. Includes MTM adjustment expense of $422 million for RJR Tobacco, $4 million for American Snuff and $26 million for Corporate Expense and All Other for the year ended December 31, 2014. | ||||||||||||||||||||||||
[4] | Includes NPM Adjustment credits of $388 million, $293 million and $341 million for RJR Tobacco for the years ended December 31, 2016, 2015 and 2014, respectively. | ||||||||||||||||||||||||
[5] | First quarter of 2016 reflects the impact of the sale of the international rights to the NATURAL AMERICAN SPIRIT brand. Fourth quarter of 2016 includes an additional MTM adjustment expense of $24 million for a total of $45 million. | ||||||||||||||||||||||||
[6] | Includes NPM Adjustment credits of $91 million in the first quarter of 2016, $98 million in the second quarter of 2016, $104 million in the third quarter of 2016 and $97 million in the fourth quarter of 2016, see “— Cost of Products Sold” in note 1. The fourth quarter of 2016 includes an MTM adjustment of $21 million. | ||||||||||||||||||||||||
[7] | Includes NPM Adjustment credits of $66 million in the first quarter of 2015, $69 million in the second quarter of 2015, $76 million in the third quarter of 2015 and $86 million in the fourth quarter of 2015, see “— Cost of Products Sold” in note 1. The fourth quarter of 2015 includes an MTM adjustment expense of $120 million. | ||||||||||||||||||||||||
[8] | Second quarter of 2015 reflects the impact of the Lorillard Merger and Divestiture. Fourth quarter of 2015 includes an additional MTM adjustment expense of $126 million for a total of $246 million. | ||||||||||||||||||||||||
[9] | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the quarters may not equal the total for the year. |
CONSOLIDATED STATEMENTS OF INC3
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Excise taxes | $ 4,343 | $ 4,209 | $ 3,625 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | [1],[2] | Sep. 30, 2016 | [1],[2] | Jun. 30, 2016 | [1],[2] | Mar. 31, 2016 | [1],[2] | Dec. 31, 2015 | [3],[4] | Sep. 30, 2015 | [3],[4] | Jun. 30, 2015 | [3],[4] | Mar. 31, 2015 | [3],[4] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||||||||||
Net income | $ 851 | $ 861 | $ 796 | $ 3,565 | $ 279 | $ 657 | $ 1,928 | $ 389 | $ 6,073 | $ 3,253 | $ 1,470 | ||||||||
Other comprehensive income (loss), net of tax (benefit) expense: | |||||||||||||||||||
Retirement benefits, net of tax | (11) | 50 | (277) | ||||||||||||||||
Long-term investments, net of tax | 14 | 2 | |||||||||||||||||
Hedging instruments, net of tax | 11 | 1 | 1 | ||||||||||||||||
Cumulative translation adjustment and other, net of tax | 10 | (25) | (34) | ||||||||||||||||
Comprehensive income | $ 6,097 | $ 3,279 | $ 1,162 | ||||||||||||||||
[1] | First quarter of 2016 reflects the impact of the sale of the international rights to the NATURAL AMERICAN SPIRIT brand. Fourth quarter of 2016 includes an additional MTM adjustment expense of $24 million for a total of $45 million. | ||||||||||||||||||
[2] | Includes NPM Adjustment credits of $91 million in the first quarter of 2016, $98 million in the second quarter of 2016, $104 million in the third quarter of 2016 and $97 million in the fourth quarter of 2016, see “— Cost of Products Sold” in note 1. The fourth quarter of 2016 includes an MTM adjustment of $21 million. | ||||||||||||||||||
[3] | Includes NPM Adjustment credits of $66 million in the first quarter of 2015, $69 million in the second quarter of 2015, $76 million in the third quarter of 2015 and $86 million in the fourth quarter of 2015, see “— Cost of Products Sold” in note 1. The fourth quarter of 2015 includes an MTM adjustment expense of $120 million. | ||||||||||||||||||
[4] | Second quarter of 2015 reflects the impact of the Lorillard Merger and Divestiture. Fourth quarter of 2015 includes an additional MTM adjustment expense of $126 million for a total of $246 million. |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Tax expense (benefit), retirement benefits | $ (6) | $ 32 | $ (178) |
Tax expense, on long-term investments | 10 | 1 | |
Tax expense, on hedging instruments | 6 | 1 | 1 |
Tax expense (benefit), cumulative translation adjustment and other | $ 6 | $ (12) | $ (15) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from (used in) operating activities: | |||
Net income | $ 6,073 | $ 3,253 | $ 1,470 |
Income from discontinued operations, net of tax | (25) | ||
Adjustments to reconcile to net cash flows from (used in) operating activities: | |||
Gain on divestitures | (4,861) | (3,181) | |
Loss on early extinguishment of debt and related expenses | 239 | ||
Asset impairment and exit charges, net of cash payments | 94 | ||
Depreciation and amortization expense | 123 | 122 | 106 |
Deferred income tax expense (benefit) | 387 | (659) | (180) |
Other changes that provided (used) cash: | |||
Accounts and other receivables | 24 | 86 | (3) |
Inventories | 89 | 31 | (154) |
Related party, net | (5) | 14 | |
Accounts payable | 42 | 32 | (43) |
Accrued liabilities, including other working capital | (160) | (242) | 30 |
Tobacco settlement accruals | (314) | 239 | 92 |
Pension and postretirement | (415) | 91 | 317 |
Other, net | 58 | 316 | 13 |
Net cash flows from operating activities | 1,280 | 196 | 1,623 |
Cash flows from (used in) investing activities: | |||
Capital expenditures | (206) | (174) | (204) |
Proceeds from settlement of investments | 266 | 332 | 4 |
Acquisition, net of cash acquired | (17,220) | ||
Proceeds from divestitures | 5,015 | 7,056 | |
Proceeds from termination of joint venture | 35 | ||
Other, net | 3 | 1 | (40) |
Net cash flows from (used in) investing activities | 5,078 | (10,005) | (205) |
Cash flows from (used in) financing activities: | |||
Dividends paid on common stock | (2,369) | (1,583) | (1,411) |
Repurchase of common stock | (226) | (124) | (440) |
Repayments of long-term debt | (500) | (450) | |
Early extinguishment of debt | (3,650) | ||
Premiums paid for early extinguishment of debt | (207) | ||
Proceeds from termination of interest rate swaps | 66 | ||
Proceeds from BAT Share Purchase | 4,673 | ||
Issuance of long-term debt | 9,000 | 8,975 | |
Debt issuance costs and financing fees | (8) | (70) | (79) |
Borrowings under revolving credit facility | 1,400 | 1,000 | |
Repayments of borrowings under revolving credit facility | (1,400) | (1,000) | |
Excess tax benefit on stock-based compensation plans | 28 | 17 | 12 |
Net cash flows from (used in) financing activities | (6,866) | 11,438 | (1,918) |
Effect of exchange rate changes on cash and cash equivalents | (8) | (28) | (34) |
Net change in cash and cash equivalents | (516) | 1,601 | (534) |
Cash and cash equivalents at beginning of year | 2,567 | 966 | 1,500 |
Cash and cash equivalents at end of year | 2,051 | 2,567 | 966 |
Income taxes paid, net of refunds | 3,179 | 3,744 | 974 |
Interest paid | $ 712 | 510 | $ 252 |
Fair value of equity consideration issued in the Lorillard Merger | $ 7,555 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 2,051 | $ 2,567 |
Short-term investments | 149 | |
Accounts receivable | 66 | 68 |
Accounts receivable, related party | 113 | 38 |
Other receivables | 10 | 35 |
Inventories | 1,645 | 1,734 |
Other current assets | 353 | 564 |
Total current assets | 4,238 | 5,155 |
Property, plant and equipment, at cost: | ||
Land and land improvements | 95 | 94 |
Buildings and leasehold improvements | 757 | 727 |
Machinery and equipment | 2,064 | 1,967 |
Construction-in-process | 94 | 110 |
Total property, plant and equipment | 3,010 | 2,898 |
Accumulated depreciation | (1,662) | (1,643) |
Property, plant and equipment, net | 1,348 | 1,255 |
Trademarks and other intangible assets, net of accumulated amortization | 29,444 | 29,467 |
Goodwill | 15,992 | 15,993 |
Other assets and deferred charges | 73 | 230 |
Total assets | 51,095 | 52,100 |
Current liabilities: | ||
Accounts payable | 221 | 179 |
Tobacco settlement accruals | 2,498 | 2,816 |
Due to related party | 7 | 9 |
Deferred revenue, related party | 66 | 33 |
Current maturities of long-term debt | 501 | 506 |
Dividends payable on common stock | 656 | 514 |
Other current liabilities | 1,036 | 1,234 |
Total current liabilities | 4,985 | 5,291 |
Long-term debt (less current maturities) | 12,664 | 16,849 |
Long-term deferred income taxes, net | 9,607 | 9,204 |
Long-term retirement benefits (less current portion) | 1,869 | 2,265 |
Long-term deferred revenue, related party | 39 | |
Other noncurrent liabilities | 220 | 239 |
Commitments and contingencies: | ||
Shareholders’ equity: | ||
Common stock (shares issued: 2016 — 1,425,824,955; 2015 — 1,427,341,341) | ||
Paid-in capital | 18,285 | 18,402 |
Retained earnings | 3,740 | 188 |
Accumulated other comprehensive loss | (314) | (338) |
Total shareholders’ equity | 21,711 | 18,252 |
Total liabilities and shareholders' equity | $ 51,095 | $ 52,100 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ||||
Common stock, shares issued | 1,425,824,955 | 1,427,341,341 | 1,062,567,026 | 1,076,106,048 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss |
Beginning Balance at Dec. 31, 2013 | $ 5,167 | $ 6,571 | $ (1,348) | $ (56) |
Net income | 1,470 | 1,470 | ||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | (277) | (277) | ||
Long-term investments, net of tax expense (2016 - $10; 2014 - $1) | 2 | 2 | ||
Hedging instruments, net of tax | 1 | 1 | ||
Cumulative translation adjustment and other, net of tax expense (benefit) (2016 - $6; 2015 - $(12); 2014 - $(15)) | (34) | (34) | ||
Dividends - per share (2016 - $1.76; 2015 - $1.39; 2014 - $1.34) | (1,436) | (1,436) | ||
Common stock repurchased | (440) | (440) | ||
Equity incentive award plan and stock-based compensation | 57 | 57 | ||
Excess tax benefit on stock-based compensation plans | 12 | 12 | ||
Ending Balance at Dec. 31, 2014 | 4,522 | 6,200 | (1,314) | (364) |
Net income | 3,253 | 3,253 | ||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | 50 | 50 | ||
Hedging instruments, net of tax | 1 | 1 | ||
Cumulative translation adjustment and other, net of tax expense (benefit) (2016 - $6; 2015 - $(12); 2014 - $(15)) | (25) | (25) | ||
Dividends - per share (2016 - $1.76; 2015 - $1.39; 2014 - $1.34) | (1,751) | (1,751) | ||
Issuance of additional shares as Lorillard Merger Consideration | 7,555 | 7,555 | ||
Issuance of additional shares for BAT Share Purchase | 4,673 | 4,673 | ||
Common stock repurchased | (124) | (124) | ||
Equity incentive award plan and stock-based compensation | 81 | 81 | ||
Excess tax benefit on stock-based compensation plans | 17 | 17 | ||
Ending Balance at Dec. 31, 2015 | 18,252 | 18,402 | 188 | (338) |
Net income | 6,073 | 6,073 | ||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | (11) | (11) | ||
Long-term investments, net of tax expense (2016 - $10; 2014 - $1) | 14 | 14 | ||
Hedging instruments, net of tax | 11 | 11 | ||
Cumulative translation adjustment and other, net of tax expense (benefit) (2016 - $6; 2015 - $(12); 2014 - $(15)) | 10 | 10 | ||
Dividends - per share (2016 - $1.76; 2015 - $1.39; 2014 - $1.34) | (2,521) | (2,521) | ||
Common stock repurchased | (226) | (226) | ||
Equity incentive award plan and stock-based compensation | 81 | 81 | ||
Excess tax benefit on stock-based compensation plans | 28 | 28 | ||
Ending Balance at Dec. 31, 2016 | $ 21,711 | $ 18,285 | $ 3,740 | $ (314) |
CONSOLIDATED STATEMENTS OF SH10
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Stockholders Equity [Abstract] | |||||||||||||||
Tax expense (benefit), retirement benefits | $ (6) | $ 32 | $ (178) | ||||||||||||
Tax expense, on long-term investments | 10 | 1 | |||||||||||||
Tax expense, hedging instruments | 6 | 1 | 1 | ||||||||||||
Tax expense (benefit), cumulative translation adjustment | $ 6 | $ (12) | $ (15) | ||||||||||||
Dividends, per share | $ 0.46 | $ 0.46 | $ 0.42 | $ 0.42 | $ 0.360 | $ 0.360 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.335 | $ 1.76 | $ 1.39 | $ 1.34 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | Note 1 — Business and Summary of Significant Accounting Policies Overview The consolidated financial statements include the accounts of Reynolds American Inc., referred to as RAI, and its wholly owned subsidiaries. RAI’s wholly owned operating subsidiaries include R. J. Reynolds Tobacco Company; 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 on January 2, 2004, and its common stock is listed on the New York Stock Exchange, referred to as the NYSE, under the symbol “RAI.” On July 30, 2004, the U.S. assets, liabilities and operations of Brown & Williamson Tobacco Corporation, now known as Brown & Williamson Holdings, Inc., referred to as B&W, an indirect, wholly owned subsidiary of British American Tobacco p.l.c., referred to as BAT, were combined with R. J. Reynolds Tobacco Company, a wholly owned operating subsidiary of R.J. Reynolds Tobacco Holdings, Inc., referred to as RJR. These July 30, 2004, transactions generally are referred to as the B&W business combination. References to RJR Tobacco prior to July 30, 2004, relate to R. J. Reynolds Tobacco Company, a New Jersey corporation. References to RJR Tobacco on and subsequent to July 30, 2004 and until June 12, 2015, relate to the combined U.S. assets, liabilities and operations of B&W and R. J. Reynolds Tobacco Company. Concurrent with the completion of the B&W business combination, RJR Tobacco became a North Carolina corporation. References to RJR Tobacco on and subsequent to June 12, 2015, relate to R. J. Reynolds Tobacco Company, a North Carolina corporation, and reflect the effects of the Lorillard Merger and Divestiture, described below. Proposed Merger with BAT On January 17, 2017, RAI announced that it had entered into an Agreement and Plan of Merger, referred to as the Merger Agreement, with BAT, BATUS Holdings Inc., a Delaware corporation and a wholly owned subsidiary of BAT, and Flight Acquisition Corporation, a North Carolina corporation and a wholly owned subsidiary of BAT, referred to as Merger Sub. For additional information, see note 22 to consolidated financial statements. 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 Lorillard Merger. Also on June 12, 2015, a wholly owned subsidiary, n/k/a ITG Brands, LLC, referred to as ITG, of Imperial Brands, PLC, f/k/a Imperial Tobacco Group, PLC, referred to as Imperial, 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. As a result of the Divestiture, RAI recognized a pre-tax gain of approximately $3.2 billion. Additionally on June 12, 2015, shortly after the completion of the Lorillard 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 Lorillard 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, referred to as the BAT Share Purchase, for approximately $4.7 billion, which was sufficient for BAT and its subsidiaries collectively to maintain their approximately 42% beneficial ownership of 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 and recognized a pre-tax gain of approximately $4.9 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. With this transaction completed, the international rights to nearly all of RAI’s operating companies’ cigarette trademarks are now owned by international tobacco companies. For additional information on the transaction, see note 3. Operating segments RAI’s reportable operating segments are RJR Tobacco, Santa Fe and American Snuff. The RJR Tobacco segment consists of the primary operations of R. J. Reynolds Tobacco Company. The Santa Fe segment consists of the primary 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 business in the United States. Basis of Presentation The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as GAAP, requires estimates and assumptions to be made that affect the reported amounts in the consolidated financial statements and accompanying notes. Volatile credit and equity markets, changes to regulatory and legal environments, and consumer spending may affect the uncertainty inherent in such estimates and assumptions. Actual results could materially differ from those estimates. All material intercompany balances have been eliminated. Certain reclassifications were made to conform prior years’ financial statements to the current presentation. Certain amounts presented in note 13 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 13 and as otherwise noted. Business Combination RAI accounts for business combination transactions in accordance with the Financial Accounting Standards Board, referred to as the FASB, Accounting Standards Codification 805, Business Combinations The fair value of acquired intangible assets measured on a nonrecurring basis, was determined based on inputs that are unobservable and significant to the overall fair value measurement. As such, acquired intangible assets are classified as Level 3. RAI engaged the services of a third party valuation expert to assist in determining the fair value of acquired trademarks and customer lists. The acquired trademarks and customer lists were valued utilizing the income approach and were based on a discounted cash flow valuation model. This approach utilized unobservable factors, such as royalty rate, projected revenues and a discount rate, applied to the estimated cash flows. The determination of the discount rate was based on a cost of equity model, using a risk-free rate, adjusted by a stock beta-adjusted risk premium and size premium. The fair value of acquired long-term debt was determined based on significant inputs that are observable either directly or indirectly, and are quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. As such, acquired long-term debt is classified as Level 2. RAI engaged the services of a financial institution in determining the fair value of acquired long-term debt. The acquired long-term debt was valued utilizing market quotes, credit spreads and discounted cash flows, as appropriate. RAI performed its own independent valuation to assess the reasonableness of that calculated by the financial institution. As a market participant, RAI determined the fair value of inventories and property, plant and equipment utilizing internal resources and external experts. The fair value of finished goods inventories was determined using selling price less estimated costs to dispose. The fair value of other inventories, primarily leaf tobacco acquired, was based on recent costs for similar inventory purchased by RAI and its subsidiaries or historical cost as appropriate. To fair value property, plant and equipment, which consisted primarily of machinery used in the manufacture of cigarettes, RAI utilized internal engineering resources and external vendor experts familiar with pricing for similar machinery on the secondary market. The fair value of long-term retirement benefits represents the funded status of the employee benefit plans assumed by RAI in the Lorillard Merger. RAI engaged its actuaries to determine the fair value of the projected benefit obligations at the date of the Lorillard Merger utilizing management’s assumptions and estimates relative to the benefit plans acquired. For the fair value of benefit plan assets, an independent valuation expert was engaged, in addition to internal treasury resources, to project the fair value of the benefit plan assets at the Lorillard Merger date. For further information related to accounting for the Lorillard Merger and Divestiture, see note 2. Cash and Cash Equivalents Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable. Cash equivalents may include money market funds, commercial paper and time deposits in major institutions to minimize investment risk. As short-term, highly liquid investments readily convertible to known amounts of cash, with remaining maturities of three months or less at the time of purchase, cash equivalents have carrying values that approximate fair values. Fair Value Measurement RAI determines the fair value of assets and liabilities 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 sponsors a number of non-contributory defined benefit pension plans covering certain employees of RAI and its subsidiaries, and holds investments in plan assets to support these obligations. For additional information regarding the fair value of these plan assets, see note 16. Inventories Inventories are stated at the lower of cost or market. The cost of RJR Tobacco’s leaf tobacco inventories is determined principally under the last-in, first-out, or LIFO, method and is calculated at the end of each year. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead and full absorption of fixed manufacturing overhead. Stocks of tobacco, which have an operating cycle that exceeds 12 months due to aging requirements, are classified as current assets, consistent with recognized industry practice. The remaining inventories not valued under LIFO are valued under the first-in, first-out method. Long-lived Assets Long-lived assets, such as property, plant and equipment, trademarks and other intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. Impairment of the carrying value of long-lived assets would be indicated if the best estimate of future undiscounted cash flows expected to be generated by the asset grouping is less than its carrying value. If an impairment is indicated, any loss is measured as the difference between estimated fair value and carrying value and is recognized in operating income. Property, Plant and Equipment Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Useful lives range from 20 to 50 years for buildings and improvements, and from 3 to 30 years for machinery and equipment. The cost and related accumulated depreciation of assets sold or retired are removed from the accounts and the gain or loss on disposition is recognized in operating income. Depreciation expense was $100 million, $104 million and $95 million for the years ended December 31, 2016, 2015 and 2014, respectively. Software Costs Computer software and software development costs incurred in connection with developing or obtaining computer software for internal use that has an extended useful life are capitalized. These costs are amortized over their estimated useful life, which is typically five years or less. The following is a summary of balances and expenses for software costs as of and for the years ended December 31: Balances: 2016 2015 Unamortized software costs balance $ 49 $ 37 Software costs — capitalized or included in construction-in-process 27 13 Expenses: 2016 2015 2014 Software amortization expense $ 14 $ 17 $ 15 Intangible Assets Intangible assets include goodwill, trademarks and other intangible assets and are capitalized when acquired. The determination of fair value involves considerable estimates and judgment. In particular, the fair value of a reporting unit involves, among other things, developing forecasts of future cash flows, determining an appropriate discount rate, and when goodwill impairment is implied, determining the fair value of individual assets and liabilities, including unrecorded intangibles. Although RAI believes it has based its impairment testing of its intangible assets on reasonable estimates and assumptions, the use of different estimates and assumptions could result in materially different results. If the current legal and regulatory environment, business or competitive climate worsens, or RAI’s operating companies’ strategic initiatives adversely affect their financial performance, the fair value of goodwill, trademarks and other intangible assets could be impaired in future periods. Goodwill, trademarks and other intangible assets with indefinite lives are not amortized, but are tested for impairment annually, in the fourth quarter, and more frequently if events and circumstances indicate that the asset might be impaired. Finite lived trademarks and acquired customer lists are amortized using the straight-line method over their remaining useful lives, of 2 to 19 years, consistent with the pattern of economic benefits estimated to be received. Revenue Recognition Revenue from product sales is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the seller’s price to the buyer is fixed or determinable, and collectability is reasonably assured. These criteria are generally met when title and risk of loss pass to the customer. Payments received in advance of shipments are deferred and recorded in other accrued liabilities until shipment occurs. Certain sales of leaf to a related party, considered as bill-and-hold for accounting purposes, are recorded as deferred revenue when all of the above revenue recognition criteria are met except delivery, postponed at the customer’s request. Revenue is subsequently recognized upon delivery. The revenues recorded are presented net of excise tax collected on behalf of government authorities. Shipping and handling costs are classified as cost of products sold. Net sales include certain sales incentives, including retail discounting, promotional allowances and coupons. Cost of Products Sold RJR Tobacco (itself, and as successor by merger to Lorillard Tobacco) and SFNTC are participants in the Master Settlement Agreement, referred to as the MSA, and RJR Tobacco (itself, and as successor by merger to Lorillard Tobacco) is a participant in the other state 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. RJR Tobacco’s and SFNTC’s obligations and the related expense charges under these agreements are subject to adjustments based upon, among other things, the volume of cigarettes sold by the operating subsidiaries, their relative market share, and their operating profit and inflation. Since relative market share is based on cigarette shipments, the best estimate of the allocation of charges to RJR Tobacco and SFNTC under these agreements is recorded in cost of products sold as the products are shipped. Included in these adjustments is the MSA non-participating manufacturer adjustment, referred to as the NPM Adjustment, that potentially reduces the annual payment obligation of RJR Tobacco, SFNTC and other participating manufacturers, referred to as the PMs. Adjustments to these estimates are recorded in the period that the change becomes probable and the amount can be reasonably estimated. American Snuff Co. is not a participant in the State Settlement Agreements. Cost of products sold includes, among other expenses, the expenses for the State Settlement Agreements; the user fees charged by the U.S. Food and Drug Administration, referred to as the FDA; and the federal tobacco quota buyout that expired in 2014. These expenses were as follows for the years ended December 31: 2016 2015 2014 State Settlement Agreements $ 2,727 $ 2,403 $ 1,917 FDA user fees 194 174 135 Federal tobacco quota buyout — — 163 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 NPM Adjustment. The Term Sheet resolved claims related to volume years from 2003 through 2012 and puts in place a revised method to determine future adjustments from 2013 forward. Subsequently, five additional states joined the Term Sheet, including two states that were found to not have diligently enforced their qualifying statutes in 2003. The parties to the Term Sheet represent an allocable share of 49.87%. In June 2014, two additional states agreed to settle the NPM Adjustment disputes on similar terms as set forth in the Term Sheet, except for certain provisions related to the determination of credits to be received by the PMs. RJR Tobacco and SFNTC, collectively, will receive credits, currently estimated to total approximately $170 million, with respect to their NPM Adjustment claims from 2003 through 2012. The credits related to these two states will be applied against annual payments under the MSA over a five-year period effectively beginning with the April 2014 MSA payment. As a result, expenses for the MSA were reduced by $34 million for the year ended December 31, 2014. As a result of the Lorillard Tobacco Merger, RJR Tobacco will receive approximately $5 million of additional credits, attributable to Lorillard Tobacco, which will be applied against annual MSA payments through 2018. As a result of meeting the performance requirements associated with the Term Sheet, RJR Tobacco and Santa Fe, collectively, recognized additional credits of $295 million, $282 million and $311 million for the years ended December 31, 2016, 2015 and 2014, respectively. Credits recognized in the years ended December 31, 2016 and 2015, include the benefit of the additional credits received as a result of the Lorillard Tobacco Merger. RJR Tobacco expects to recognize additional credits through 2017. In September 2013, the Arbitration Panel ruled six states had not diligently enforced their qualifying statutes in 2003 related to the NPM Adjustment. Two of the six states subsequently joined the Term Sheet in 2014. In 2015, three of the states dropped their challenge of the finding of non-diligence and in 2016, the remaining state dropped its challenge. As such, a portion of the potential recovery from those states was certain and estimable, and RJR Tobacco recognized $6 million and $93 million as a reduction of cost of products sold for the years ended December 31, 2016 and 2015, respectively. A final issue regarding the judgment reduction method adopted by the Arbitration Panel was being contested in these four states. In 2016, the U.S. Supreme Court denied RJR Tobacco’s petition for writ of certiorari against two states, thus eliminating RJR Tobacco’s remaining recovery from these states. The final outcome in the remaining two states is uncertain. 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 resolves 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, subject to meeting various performance obligations. These credits will be applied against annual payments under the MSA over a four-year period, which commenced with the April 2016 MSA payment. RJR Tobacco and Santa Fe, collectively, recognized credits of $95 million and $15 million as a reduction to costs of products sold for the years ended December 31, 2016 and 2015, respectively. In addition, the NY Settlement Agreement put in place a new method to determine future adjustments from 2015 forward as to New York. For additional information related to the NPM Adjustment settlement, see “— Litigation Affecting the Cigarette Industry — State Settlement Agreements — Enforcement and Validity; Adjustments” in note 13. Advertising Advertising costs, which are expensed as incurred, were $80 million, $140 million and $140 million for the years ended December 31, 2016, 2015 and 2014, respectively. Research and Development Research and development costs, which are expensed as incurred, were $101 million, $107 million and $88 million for the years ended December 31, 2016, 2015 and 2014, respectively. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Interest and penalties related to uncertain tax positions are accounted for as tax expense. Federal income taxes for RAI and its subsidiaries are calculated on a consolidated basis. State income taxes for RAI and its subsidiaries are primarily calculated on a separate return basis. RAI accounts for uncertain tax positions which require that a position taken or expected to be taken in a tax return be recognized in the financial statements when it is more likely than not (a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Stock-Based Compensation Stock-based compensation expense is recognized for all forms of share-based payment awards, including shares issued to employees under restricted stock units. Litigation RAI discloses information concerning litigation for which an unfavorable outcome is more than remote. RAI and its subsidiaries record their legal expenses and other litigation costs and related administrative costs as selling, general and administrative expenses as these costs are incurred. RAI and its subsidiaries will record any loss related to litigation at such time as an unfavorable outcome becomes probable and the amount can be reasonably estimated on an individual case-by-case basis. When the reasonable estimate is a range, the recorded loss will be the best estimate within the range. If no amount in the range is a better estimate than any other amount, the minimum amount of the range will be recorded. For additional information related to litigation, see note 13. 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 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) 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 accumulated net (gains) losses exceed 10% of the greater of the fair value of plan assets or benefit obligations, referred to as the corridor. Net (gains) 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 (credits) 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 (credits) of postretirement benefits, which are changes in benefit obligations due to plan amendments, are amortized on a straight-line basis over the expected service period to full eligibility age for active employees, or average remaining life expectancies for inactive employees if most of the plan obligations are due to inactive employees. Recently Adopted Accounting Pronouncements In April 2015, the FASB issued an Accounting Standards Update, referred to as ASU, 2015-03, Simplifying the Presentation of Debt Issuance Costs. Interest—Imputation of Interest (Subtopic 835-30), In April 2015, the FASB issued ASU 2015-05, Internal Use Software, In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement – Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, • ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), • ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, • ASU 2016-11, Revenue Recognition (Topic 605) and Derivative and Hedging (Topic 815) – Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting; • ASU 2016-12, Revenue Recognition from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, • ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers During 2016, RAI substantially completed its assessment of ASU 2014-09 to identify any potential changes in the amount and timing of revenue recognition for its current contracts and the expected impact on its business processes, systems and controls. may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective method). 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, In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows – Restricted Cash, |
Lorillard Merger, Divestiture a
Lorillard Merger, Divestiture and BAT Share Purchase | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Lorillard Merger, Divestiture and BAT Share Purchase | Note 2 — Lorillard Merger, Divestiture and BAT Share Purchase Lorillard Merger On June 12, 2015, the Lorillard Merger was completed, with Lorillard surviving as a wholly owned subsidiary of RAI. Each outstanding share of Lorillard common stock was converted into the right to receive (1) 0.2909 of a share of RAI common stock, prior to giving effect to RAI’s 2015 two-for-one stock split, referred to as the stock split, plus (2) $50.50 in cash (the foregoing collectively referred to as the Lorillard Merger Consideration). RAI issued 104,706,847 shares of RAI common stock at a price of $72.15 per share, prior to giving effect to the stock split, to Lorillard shareholders in the Lorillard Merger. After giving effect to the stock split, RAI issued 209,413,694 shares of RAI common stock to Lorillard shareholders in the Lorillard Merger. As a part of the Lorillard Merger, RAI acquired the premium cigarette brand, NEWPORT, which is the top-selling menthol and second largest selling cigarette brand overall in the United States. In addition to NEWPORT, RAI acquired three additional brand families marketed under the KENT, TRUE and OLD GOLD brand names. In accordance with ASC 805, the Lorillard Merger was accounted for using the acquisition method of accounting with RAI considered the acquirer of Lorillard. RAI recorded assets acquired, including identifiable intangible assets, and liabilities assumed, from Lorillard at their respective fair values at the date of completion of the Lorillard Merger. The excess of the purchase price over the net fair value of such assets and liabilities was recorded as goodwill. Purchase Price The purchase price of $25.8 billion consisted of the Lorillard Merger Consideration together with the payment of certain Lorillard equity awards and certain change of control payments as follows: Fair value of RAI common stock issued $ 7,555 Cash paid to Lorillard shareholders at $50.50 per share 18,205 Cash paid for Lorillard stock options and stock appreciation rights 73 Purchase price $ 25,833 Allocation of Purchase Price The purchase price as allocated to the assets acquired and liabilities assumed in the Lorillard Merger is set forth below: Final Allocation Assets Cash and cash equivalents $ 1,058 Short-term investments 347 Accounts and other receivables 47 Inventories 576 Income taxes receivable 135 Other current assets 1,673 Property, plant and equipment 82 Trademarks and other intangible assets 27,443 Goodwill 9,853 Other assets and deferred charges 207 Liabilities Tobacco settlement accruals 755 Other current liabilities 602 Long-term debt (less current maturities) 3,895 Deferred income taxes, net 9,998 Long-term retirement benefits (less current portion) 274 Other noncurrent liabilities 64 Allocation of purchase price $ 25,833 The allocation of the purchase price reflected in the accompanying financial statements was based upon estimates and assumptions. The $9,853 million allocated to goodwill, which was primarily attributable to the establishment of deferred tax liabilities associated with the trademarks acquired and the expected synergies from future growth, was allocated to the RJR Tobacco segment, and is non-deductible for tax purposes. The results of operations of the acquired Lorillard brands are included in RAI’s consolidated statements of income from the date of acquisition and include $2.7 billion of total net sales for the year ended December 31, 2015, and are included in the RJR Tobacco segment’s financial results. RAI does not maintain discrete financial information on a brand basis in order to determine the impact to net income for the periods presented. In addition, as a result of the acquisition, $9 billion of debt was issued and approximately $3.9 billion of Lorillard Tobacco debt, at fair value, was assumed. The interest expense related to the acquisition was approximately $282 million for the year ended December 31, 2015. Divestiture On June 12, 2015, the Divestiture was completed, and ITG acquired the cigarette brands WINSTON, KOOL and SALEM, previously owned by RAI subsidiaries and included in the RJR Tobacco segment, as well as the cigarette brand MAVERICK and the “e-vapor” brand blu (including SKYCIG), previously owned by Lorillard subsidiaries, and other assets and certain liabilities, including inventory, fixed assets and employee benefit plans, for an aggregate purchase price of approximately $7.1 billion. A summary of the pre-tax gain is as follows: Purchase price $ 7,056 Net assets and liabilities divested (2,026 ) Goodwill associated with divested RJR Tobacco brands (1,849 ) Gain on divestiture $ 3,181 BAT Share Purchase and Other In connection with the Lorillard Merger and Divestiture, on July 15, 2014, RAI, BAT, and for limited purposes only, B&W, entered into a subscription and support agreement, referred to as the Subscription Agreement, pursuant to which BAT agreed to subscribe for and purchase, directly or indirectly through one or more of its wholly owned subsidiaries, simultaneously with the completion of the Lorillard Merger and at a price of approximately $4.7 billion in the aggregate, shares of RAI common stock such that BAT, directly or indirectly through its affiliates, would maintain its approximately 42% beneficial ownership in RAI (the foregoing purchase is referred to as the BAT Share Purchase). On June 12, 2015, concurrently with the completion of the Lorillard Merger and Divestiture and pursuant to the Subscription Agreement, BAT indirectly (through a wholly owned subsidiary) purchased 77,680,259 shares of RAI common stock, prior to giving effect to the 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. Upon completion of the transactions on June 12, 2015, BAT and its subsidiaries collectively owned 301,014,278 shares, prior to giving effect to the stock split, or approximately 42%, of RAI’s outstanding common stock. After giving effect to the stock split, BAT indirectly purchased 155,360,518 shares of RAI common stock, and BAT and its subsidiaries collectively owned 602,028,556 shares of RAI common stock. RAI financed the cash portion of the Lorillard Merger Consideration and related fees and expenses with (1) the net proceeds from a public offering of $9 billion aggregate principal amount of newly issued RAI senior notes, (2) the proceeds from the Divestiture, (3) the proceeds from the BAT Share Purchase and (4) available cash. Transaction related costs of $54 million and $38 million, for the years ended December 31, 2015 and 2014, respectively, were expensed as incurred and included in selling, general and administrative expenses in RAI’s consolidated statements of income. |
Sale of International Rights to
Sale of International Rights to the Natural American Spirit Brand | 12 Months Ended |
Dec. 31, 2016 | |
Sale Of International Brand Rights [Abstract] | |
Sale of International Rights to the Natural American Spirit Brand | Note 3 — 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 and recognized a pre-tax gain of approximately $4.9 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 during the year ended December 31, 2016, were as follows: Purchase price $ 5,015 Net assets and liabilities divested (154 ) Gain on divestiture $ 4,861 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 4 — Fair Value Measurement Fair Value of Financial Assets Financial assets carried at fair value as of December 31, were as follows: 2016 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash equivalents $ 2,006 $ — $ — $ 2,006 $ 2,454 $ — $ — $ 2,454 Short-term investments: Corporate debt securities — — — — — 96 — 96 U.S. Government agency obligations — — — — — 43 — 43 Commercial paper — — — — — 10 — 10 Other assets and deferred charges: Auction rate securities — — — — — — 79 79 Mortgage-backed security — — — — — — 10 10 Marketable equity security — — — — 1 — — 1 Interest rate swaps — — — — — 53 — 53 There were no transfers between the levels during the years ended December 31, 2016 and 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. 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. All investments classified as short-term investments as of December 31, 2015, were sold or matured and an immaterial loss was recorded during the year ended December 31, 2016. As of December 31, 2015, RAI had investments in auction rate securities linked to corporate credit risk, in auction rate securities related to financial insurance companies, and in a mortgage-backed security. The fair value of these investments, each classified as Level 3, was determined with pricing models using inputs that were unobservable and assumptions made by RAI about the assumptions that market participants would use in pricing the assets. In addition, RAI had an investment in a marketable equity security classified as Level 1. During the year ended December 31, 2016, the auction rate securities related to financial insurance companies, the marketable equity security and mortgage-backed security were sold, and an immaterial loss was recognized. The auction rate securities linked to corporate credit risk were called by the issuers at their par value of $95 million. No other-than-temporary impairment losses were recognized for the years ended December 31, 2016 and 2015, respectively. Any unrealized gains and losses, net of tax, related to investments held at December 31, 2015, were included in accumulated other comprehensive loss in RAI’s consolidated balance sheet as of December 31, 2015. 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 and $13 million for the years ended December 31, 2016 and 2015 respectively. During 2016, RJR Tobacco terminated these interest rate swap agreements and received $66 million in cash. The remaining fair value adjustment of $7 million for 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 December 31, 2016, RAI, RJR and RJR Tobacco had no outstanding interest rate swaps. See notes 2 and 12 for additional information related to interest rate swap agreements. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 5 — 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, 2014 Goodwill $ 9,065 $ 197 $ 2,501 $ 44 $ 11,807 Less: accumulated impairment charges (3,763 ) — (28 ) — (3,791 ) Net goodwill balance as of December 31, 2014 5,302 197 2,473 44 8,016 2015 Activity Lorillard Merger goodwill 9,853 — — — 9,853 Divestiture goodwill (1,849 ) — — — (1,849 ) Reclassified to assets held for sale (1) — — — (27 ) (27 ) Balance as of December 31, 2015 Goodwill 17,069 197 2,501 17 19,784 Less: accumulated impairment charges (3,763 ) — (28 ) — (3,791 ) Net goodwill balance as of December 31, 2015 13,306 197 2,473 17 15,993 2016 Activity Foreign currency translation — — — (1 ) (1 ) Balance as of December 31, 2016 Goodwill 17,069 197 2,501 16 19,783 Less: accumulated impairment charges (3,763 ) — (28 ) — (3,791 ) Net goodwill balance as of December 31, 2016 $ 13,306 $ 197 $ 2,473 $ 16 $ 15,992 (1) Related to the sale of international rights to the NATURAL AMERICAN SPIRIT brand. See note 3. The changes in the carrying amounts of indefinite-lived intangible assets by segment not subject to amortization were as follows: RJR Tobacco Santa Fe American Snuff All Other Consolidated Trademarks Other Trademarks Trademarks Other Trademarks Other Balance as of December 31, 2014 $ 977 $ 99 $ 155 $ 1,136 $ 4 $ 2,268 $ 103 Trademarks acquired in Lorillard Merger 27,193 — — — — 27,193 — Trademarks divested (344 ) — — — — (344 ) — Other intangibles divested — (12 ) — — — — (12 ) Reclassified to assets held for sale (1) — — (19 ) — (4 ) (19 ) (4 ) Balance as of December 31, 2015 27,826 87 136 1,136 — 29,098 87 Balance as of December 31, 2016 $ 27,826 $ 87 $ 136 $ 1,136 $ — $ 29,098 $ 87 (1) Related to the sale of international rights to the NATURAL AMERICAN SPIRIT brand. See note 3. The changes in the carrying amounts of finite-lived intangible assets by segment subject to amortization were as follows: RJR Tobacco American Snuff All Other Consolidated Trademarks Other Trademarks Other Trademarks Other Balance as of December 31, 2013 $ 18 $ 20 $ 8 $ — $ 26 $ 20 Amortization (6 ) (4 ) (1 ) — (7 ) (4 ) Acquisition — 15 — — — 15 Balance as of December 31, 2014 12 31 7 — 19 31 Trademarks acquired in Lorillard Merger 10 — — — 10 — Customer lists acquired in Lorillard Merger — 240 — — — 240 Amortization (5 ) (12 ) (1 ) — (6 ) (12 ) Balance as of December 31, 2015 17 259 6 — 23 259 Intercompany transfer — (13 ) — 13 — — Amortization (5 ) (17 ) (1 ) — (6 ) (17 ) Balance as of December 31, 2016 $ 12 $ 229 $ 5 $ 13 $ 17 $ 242 Details of finite-lived intangible assets were as follows: December 31, 2016 December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer lists $ 240 $ (19 ) $ 221 $ 240 $ (7 ) $ 233 Contract manufacturing agreement 151 (143 ) 8 151 (139 ) 12 Trademarks 124 (107 ) 17 124 (101 ) 23 Other intangibles 15 (2 ) 13 15 (1 ) 14 $ 530 $ (271 ) $ 259 $ 530 $ (248 ) $ 282 The remaining amortization expense associated with finite-lived intangible assets is expected to be as follows: Year Amount 2017 $ 23 2018 22 2019 16 2020 15 2021 14 Thereafter 169 $ 259 The impairment testing of trademarks in the fourth quarters of 2016, 2015 and 2014 assumed a rate of decline in projected net sales of certain brands, comparable with that assumed in RAI’s strategic plan. The fair value of trademarks used in impairment testing was determined by an income approach using a discounted cash flow valuation model under a relief from royalty methodology. The relief-from-royalty model includes the estimates of the royalty rate that a market participant might assume, projected revenues and judgment regarding the discount rate applied to those estimated cash flows, with that discount rate being 10.0% during 2016, 2015 and 2014. The determination of the discount rate was based on a cost of equity model, using a risk-free rate, adjusted by a stock beta-adjusted risk premium and a size premium. As a result of these analyses, an impairment charge is recognized if the carrying value of a trademark exceeds its estimated fair value. No impairment charges were indicated for 2016, 2015 or 2014. For the annual impairment testing of the goodwill of RAI’s reporting units, each reporting unit’s estimated fair value was compared with its carrying value. A reporting unit is an operating segment or one level below an operating segment. The determination of estimated fair value of each reporting unit was calculated primarily utilizing an income approach model, based on the present value of the estimated future cash flows of the reporting unit assuming a discount rate during each of 2016, 2015 and 2014 of 9.75% for each of RJR Tobacco and American Snuff and 10.25% for Santa Fe. The determination of the discount rate was based on a weighted average cost of capital. Additionally, the aggregate estimated fair value of the reporting units, determined with the use of the income approach model, was compared with RAI’s market capitalization. The estimated fair value of each reporting unit was substantially greater than its respective carrying value. |
Asset Impairment and Exit Charg
Asset Impairment and Exit Charges | 12 Months Ended |
Dec. 31, 2016 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment and Exit Charges | Note 6 — Asset Impairment and Exit Charges In 2015, RAI announced that certain of its operating companies consolidated manufacturing operations for the VUSE Digital Vapor Cigarette. In addition to in-house production at RJR Tobacco’s manufacturing facility, certain production of VUSE Solo cartridges was previously performed for RJR Vapor at a contractor’s facility in Kansas. Since the fourth quarter of 2015, all production of VUSE Solo cartridges is performed at RJR Tobacco’s facility, pursuant to a services agreement between RJR Tobacco and RJR Vapor. As a result of this consolidation, pre-tax asset impairment and exit charges of $99 million, consisting primarily of equipment, were recorded in the consolidated statements of income for the year ended December 31, 2015, and were allocated to All Other. |
Income Per Share
Income Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Income Per Share | Note 7 — Income Per Share The components of the calculation of income per share were as follows: For the Years Ended December 31, 2016 2015 2014 Income from continuing operations $ 6,073 $ 3,253 $ 1,445 Income from discontinued operations — — 25 Net income $ 6,073 $ 3,253 $ 1,470 Basic weighted average shares, in thousands 1,426,987 1,264,182 1,066,320 Effect of dilutive potential shares: Restricted stock units 2,946 3,533 3,620 Diluted weighted average shares, in thousands 1,429,933 1,267,715 1,069,940 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 8 — Inventories The major components of inventories at December 31 were as follows: 2016 2015 Leaf tobacco $ 1,436 $ 1,495 Other raw materials 77 110 Work in process 81 88 Finished products 165 173 Other 25 22 Total 1,784 1,888 LIFO allowance (139 ) (154 ) $ 1,645 $ 1,734 Inventories valued under the LIFO method were $791 million and $922 million at December 31, 2016 and 2015, respectively, net of the LIFO allowance. The LIFO allowance reflects the excess of the current cost of LIFO inventories at December 31, 2016 and 2015, over the amount at which these inventories were carried on the consolidated balance sheets. RAI recognized income of $15 million, $50 million and $2 million from LIFO inventory changes during 2016, 2015, and 2014, respectively. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Current [Abstract] | |
Other Current Liabilities | Note 9 — Other Current Liabilities Other current liabilities at December 31 included the following: 2016 2015 Payroll and employee benefits $ 268 $ 210 Pension and postretirement benefits 89 91 Marketing and advertising 155 213 Excise, franchise and property tax 172 217 Other 352 503 $ 1,036 $ 1,234 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 — Income Taxes The components of the provision for income taxes from continuing operations for the years ended December 31 were as follows: 2016 2015 2014 Current: Federal $ 2,794 $ 3,313 $ 809 State and other 437 477 188 3,231 3,790 997 Deferred: Federal 350 (597 ) (151 ) State and other 37 (62 ) (29 ) 387 (659 ) (180 ) $ 3,618 $ 3,131 $ 817 Significant components of deferred tax assets and liabilities for the years ended December 31 included the following: 2016 2015 Deferred tax assets: Pension and postretirement liabilities $ 759 $ 916 Tobacco settlement accruals 955 1,088 Other accrued liabilities 169 175 Other noncurrent liabilities 210 283 Subtotal 2,093 2,462 Less: valuation allowance — (8 ) 2,093 2,454 Deferred tax liabilities: LIFO inventories (257 ) (266 ) Property and equipment (290 ) (259 ) Trademarks and other intangibles (10,972 ) (11,002 ) Other (181 ) (131 ) (11,700 ) (11,658 ) Net deferred tax asset (liability) $ (9,607 ) $ (9,204 ) RAI had no federal capital loss carryforwards at December 31, 2016 and 2015, respectively. As of December 31, 2016, no valuation allowance was established on deferred tax assets as RAI believes it is more likely than not that the deferred tax assets will be realized through the generation of future taxable income. At December 31, 2015, RAI had recorded a valuation allowance of $8 million to fully offset the deferred tax assets attributable to its Puerto Rico subsidiaries. In 2016, reorganization of the Puerto Rico business in connection with the Lorillard Merger and Divestiture resulted in the $8 million valuation allowance being reversed. Pre-tax income for domestic and foreign continuing operations for the years ended December 31 consisted of the following: 2016 2015 2014 Domestic (includes U.S. exports) $ 9,610 $ 6,342 $ 2,235 Foreign 81 42 27 $ 9,691 $ 6,384 $ 2,262 The differences between the provision for income taxes from continuing operations and income taxes computed at statutory U.S. federal income tax rates for the years ended December 31 were as follows: 2016 2015 2014 Income taxes computed at the statutory U.S. federal income tax rate $ 3,392 $ 2,233 $ 792 State and local income taxes, net of federal tax benefits 306 235 107 Domestic manufacturing deduction (114 ) (104 ) (80 ) Nondeductible goodwill 9 761 — Other items, net 25 6 (2 ) Provision for income taxes from continuing operations $ 3,618 $ 3,131 $ 817 Effective tax rate 37.3 % 49.0 % 36.1 % The effective tax rate for 2016 was impacted by 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 2015 was unfavorably impacted by an increase in tax attributable to nondeductible acquisition costs, nondeductible goodwill in the amount of $1,849 million associated with the Divestiture and an increase in uncertain tax positions, offset by a decrease in tax attributable to the release of a valuation allowance in the amount of $37 million and a reduction in state income taxes. The effective tax rate for 2014 was favorably impacted by a decrease in uncertain tax positions related to a federal audit settlement and an increase in the domestic manufacturing deduction, partially offset by an increase in tax attributable to nondeductible acquisition costs. The effective tax rate for each period differed from the federal statutory rate of 35% due to the domestic manufacturing deduction, state income taxes and certain nondeductible items. The audit of the 2010 and 2011 tax years by the Internal Revenue Service was closed in 2014. A tax benefit of $25 million attributable to a decrease in uncertain tax positions was recorded in discontinued operations. On December 19, 2014, the Tax Increase Prevention Act of 2014, referred to as the TIPA, was signed into law. The TIPA retroactively reinstated and extended the Federal Research and Development Tax Credit from January 1, 2014 to December 31, 2014. The impact of the TIPA did not significantly impact RAI’s annual effective income tax rate in 2014. On December 18, 2015, the Protecting Americans from Tax Hikes (PATH) Act, was signed into law. The PATH Act extends the research credit permanently, retroactive to January 1, 2015. The PATH Act did not significantly impact RAI’s annual effective income tax rate in 2015. At December 31, 2016, there were $393 million of accumulated and undistributed foreign earnings. Of this amount, RAI has invested $15 million and has plans to invest an additional $52 million overseas. RAI has recorded either current or deferred income taxes related to the $326 million of accumulated foreign earnings in excess of its historical and planned overseas investments. The components of deferred tax benefits included in accumulated other comprehensive loss for the years ended December 31 were as follows: 2016 2015 Retirement benefits $ 215 $ 209 Long-term investments — 10 Hedging instruments — 6 Cumulative translation adjustment and other 25 31 $ 240 $ 256 The accruals for gross unrecognized income tax benefits, including interest and penalties, reflected in other noncurrent liabilities for the years ended December 31 were as follows: 2016 2015 Unrecognized tax benefits $ 118 $ 97 Accrued interest 13 17 Accrued penalties 7 8 $ 138 $ 122 A reconciliation of the gross unrecognized income tax benefits is as follows: 2016 2015 2014 Balance at beginning of year $ 97 $ 27 $ 62 Gross increases related to current period tax positions 30 28 5 Gross increases related to tax positions in prior periods 3 46 — Gross decreases related to tax positions in prior periods (3 ) (1 ) (31 ) Gross decreases related to audit settlements (2 ) — (6 ) Gross decreases related to lapse of applicable statute of limitations (7 ) (3 ) (3 ) Balance at end of year $ 118 $ 97 $ 27 At December 31, 2016, $92 million of unrecognized income tax benefits including interest and penalties, if recognized, would decrease RAI’s effective tax rate. For the year ended December 31, 2016, the gross increases in unrecognized income tax benefits related to tax positions in the current period are primarily 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. RAI and its subsidiaries are subject to income taxes in the United States, certain foreign jurisdictions and multiple state jurisdictions. A number of years may elapse before a particular matter, for which RAI has established an accrual, is audited and finally resolved. The number of years with open tax audits varies depending on the tax jurisdiction. RAI and its subsidiaries file income tax returns in the U.S. federal and various state and foreign jurisdictions. The U.S. federal statute of limitations remains open for the year 2013 and forward. State and foreign jurisdictions have statutes of limitations generally ranging from three to five years. Certain of RAI’s state tax returns are currently under examination by various states as part of routine audits conducted in the ordinary course of business. |
Credit Agreement
Credit Agreement | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Note 11 — Credit Agreement Credit Agreement In December 2014, RAI entered into a credit agreement, referred to as the Credit Agreement, with a syndicate of lenders, providing for a five-year, $2 billion senior unsecured revolving credit facility, which may be increased to $2.35 billion at the discretion of the lenders upon the request of RAI. The Credit Agreement replaced RAI’s four-year, $1.35 billion senior unsecured revolving credit facility dated October 8, 2013. Subject to certain conditions, RAI is able to use the revolving credit facility under the Credit Agreement for borrowings and issuances of letters of credit at its option, subject to a $300 million sublimit on the aggregate amount of letters of credit. Issuances of letters of credit reduce availability under such revolving credit facility. The original maturity date of the Credit Agreement was December 18, 2019. Pursuant to the maturity date extension provision of the Credit Agreement, the requisite lenders have agreed on two separate occasions upon RAI’s request, to extend the maturity date of the Credit Agreement by 12 months. Pursuant to the Credit Agreement’s second and sole remaining maturity date extension provision, the lenders agreed, in November 2016 and at RAI’s request, to extend the maturity date of the Credit Agreement by 12 months, to December 18, 2021. In connection with the maturity date extension, RAI and its guarantor subsidiaries entered into a second amendment to the Credit Agreement, dated November 4, 2016, with additional provisions added to address new European economic area regulations that give European bank regulators powers to eliminate, convert to equity or otherwise modify failing European financial institutions’ unsecured liabilities, including loan commitments. 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 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 per annum of between 0.100% and 0.275%, based generally on the ratings of RAI’s senior, unsecured, long-term indebtedness, on the lender commitments in respect of the revolving credit facility thereunder. Borrowings under the 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 December 31, 2016, there were no outstanding borrowings and $6 million of letters of credit outstanding under the Credit Agreement. Bridge Facility In September 2014, RAI entered into a bridge credit agreement, referred to as the Bridge Facility, with a syndicate of lenders, for the purpose of financing a portion of the Lorillard Merger Consideration. RAI issued notes, in lieu of borrowing any funds under the Bridge Facility, to finance part of the cash portion of the Lorillard Merger Consideration. By its terms, the Bridge Facility terminated on June 12, 2015. All associated fees were fully amortized by June 30, 2015. Amortization and fees related to the Bridge Facility were $48 million and $39 million for the years ended December 31, 2015 and 2014, respectively, and were included in interest and debt expense. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 12 — Long-Term Debt Information, including a schedule of maturities, regarding RAI’s and RJR Tobacco’s long-term debt is provided below: RAI and RJR Tobacco Long-Term Debt For the years ended December 31, 2016 2015 RAI 3.500% notes due 08/04/2016 $ — $ 415 6.750% notes due 06/15/2017 — 700 2.300% notes due 08/21/2017 447 447 7.750% notes due 06/01/2018 — 250 2.300% notes due 06/12/2018 1,250 1,250 8.125% notes due 06/23/2019* 669 669 6.875% notes due 05/01/2020 641 641 3.250% notes due 06/12/2020 771 1,250 4.000% notes due 06/12/2022 1,000 1,000 3.250% notes due 11/01/2022 158 1,100 3.750% notes due 05/20/2023 30 474 4.850% notes due 09/15/2023 550 550 4.450% notes due 06/12/2025 2,500 2,500 5.700% notes due 08/15/2035 750 750 7.250% notes due 06/15/2037 450 450 8.125% notes due 05/01/2040 237 237 7.000% notes due 08/04/2041 240 240 4.750% notes due 11/01/2042 173 1,000 6.150% notes due 09/15/2043 550 550 5.850% notes due 08/15/2045 2,250 2,250 Total principal 12,666 16,723 Fair value adjustments 282 348 Unamortized discounts (28 ) (37 ) Unamortized debt issuance costs (68 ) (92 ) Total RAI long-term debt at carrying value $ 12,852 $ 16,942 RJR Tobacco 3.500% notes due 08/04/2016 $ — $ 85 2.300% notes due 08/21/2017 53 53 8.125% notes due 06/23/2019* 81 81 6.875% notes due 05/01/2020 109 109 3.750% notes due 05/20/2023 19 26 8.125% notes due 05/01/2040 13 13 7.000% notes due 08/04/2041 9 10 Total principal 284 377 Fair value adjustments 29 36 Total RJR Tobacco long-term debt at carrying value $ 313 $ 413 Total long-term debt at carrying value $ 13,165 $ 17,355 Less current maturities of long-term debt at carrying value 501 506 Total long-term debt (less current maturities) at carrying value $ 12,664 $ 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%. During the year ended December 31, 2016, RJR Tobacco repurchased $8 million of its outstanding notes. As of December 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 2017 $ 447 $ 53 $ 500 2018 1,250 — 1,250 2019 669 81 750 2020 1,412 109 1,521 2022 and thereafter 8,888 41 8,929 $ 12,666 $ 284 $ 12,950 Fair Value of Debt The estimated fair value of RAI’s outstanding consolidated debt, in the aggregate, was $14.3 billion and $18.2 billion as of December 31, 2016 and 2015, respectively, with an effective annual interest rate of approximately 5.0% and 4.6% for the years ended December 31, 2016 and 2015, respectively. The fair value is derived from a third party pricing source and is classified in Level 2 of the fair value hierarchy. Termination of Interest Rate Swap Agreements On June 12, 2015, RJR Tobacco assumed the interest rate swap agreements associated with the 8.125% Lorillard Tobacco Notes due June 23, 2019. The interest rate swap agreements qualified for hedge accounting and were designated as fair value hedges at the date of the Lorillard Merger. Under the swap agreements, RJR Tobacco received a fixed rate settlement and paid a variable rate settlement with the difference recorded in interest expense. During 2016, RJR Tobacco terminated these interest rate swap agreements. The remaining fair value adjustment of $7 million for the 8.125% notes due June 23, 2019, is being amortized as a reduction of interest expense over the expected remaining life of the notes. See note 2 for additional information on the Lorillard Merger and note 4 for additional information on interest rate management. Tender Offer and Redemption RAI completed a cash tender offer for an aggregate purchase price of $2.81 billion (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. 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 consideration of $2.81 billion (including a premium 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. 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 Amount 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 aggregate consideration payable to holders of Tender Notes validly tendered and not validly withdrawn 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 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 as expense upon completion of the tender offer. The 3.750% Tender Notes due 2023 have a carrying value that exceeds face value as these notes, which were assumed in the Lorillard Tobacco Merger, were 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 consolidated statements of income for the year ended December 31, 2016. New Notes On June 12, 2015, RAI completed an underwritten public offering of $9.0 billion aggregate principal amount of its senior notes. The proceeds from this offering were used to fund part of the cash portion of the Lorillard Merger Consideration, the unpaid fees and expenses incurred in connection with the Lorillard Merger and related transactions, and the payment of certain Lorillard equity awards and certain change of control payments, also in connection with the Lorillard Merger. The notes are unsecured, and are fully and unconditionally guaranteed on a senior unsecured basis by certain of RAI’s subsidiaries, including its material domestic subsidiaries, which are the same guarantors that guarantee its other outstanding senior notes and its Credit Agreement. RAI may redeem the notes in whole or in part at any time at the applicable redemption price. If RAI experiences specific kinds of changes of control, accompanied by a certain credit ratings downgrade of any series of the notes, RAI must offer to repurchase such series. Lorillard Tobacco Notes; Exchange Offers and Consent Solicitations Immediately prior to the Lorillard Merger, Lorillard Tobacco had outstanding an aggregate of $3.5 billion in principal amount of senior unsecured notes in seven series, referred to as the Lorillard Tobacco Notes, all of which were guaranteed by Lorillard. In connection with the Lorillard Tobacco Merger, RJR Tobacco assumed Lorillard Tobacco’s obligations under the Lorillard Tobacco Notes and the indenture governing the Lorillard Tobacco Notes, referred to as the Lorillard Tobacco Indenture, and RJR assumed Lorillard’s obligations as guarantor under the Lorillard Tobacco Notes and the Lorillard Tobacco Indenture. On June 11, 2015, RAI commenced (1) private offers to exchange, referred to as the Exchange Offers, any and all (to the extent held by eligible holders) of the Lorillard Tobacco Notes for a series of new RAI senior notes, referred to as the Exchange Notes, having the same interest payment and maturity dates and interest rate provisions as the corresponding series of Lorillard Tobacco Notes, and (2) related consent solicitations, referred to as the Consent Solicitations, of the eligible holders of each series of Lorillard Tobacco Notes to amend the Lorillard Tobacco Indenture, with such amendments referred to as the Indenture Amendments. Eligible holders who validly tendered, and did not validly withdraw, their Lorillard Tobacco Notes in the Exchange Offers (and thereby gave, and did not validly revoke, their consents to the Indenture Amendments) received, upon settlement of the Exchange Offers and Consent Solicitations on July 15, 2015, Exchange Notes in the same principal amount as the Lorillard Tobacco Notes tendered therefor plus a consent payment of $2.50 per $1,000 principal amount of Lorillard Tobacco Notes tendered. Lorillard Tobacco Notes in the aggregate principal amount of $3.1 billion were tendered in the Exchange Offers. RJR Tobacco is the principal obligor of the Lorillard Tobacco Notes that were not tendered in the Exchange Offers and that remain outstanding, and currently RAI and RJR are the guarantors of such notes. The Exchange Notes are the principal obligations of RAI and are guaranteed by the same guarantors as RAI’s other outstanding senior notes. Unlike RAI’s outstanding senior notes, the Lorillard Tobacco Notes (with a limited exception for the 3.75% Lorillard Tobacco Notes due 2023) are not redeemable at the option of the issuer prior to maturity. The Exchange Notes were issued in a private offering exempt from, or not subject to, the registration requirements of the Securities Act of 1933, referred to as the 1933 Act. Pursuant to a registration rights agreement it had entered into, RAI subsequently conducted, in 2015, registered offers to exchange any and all (to the extent held by eligible holders) of the Exchange Notes for its newly issued notes registered under the 1933 Act, referred to as the Registered Notes. Of the total aggregate principal amount of Exchange Notes outstanding, 99.7% were exchanged for Registered Notes in the registered exchange offers. Each series of Registered Notes is substantially identical to the Exchange Notes of the corresponding series, except that, among other things, certain additional interest provisions pertaining to the Exchange Notes do not apply to the Registered Notes. The Registered Notes are unsecured, and are fully and unconditionally guaranteed on a senior unsecured basis by the same RAI subsidiaries that guarantee RAI’s other outstanding senior notes and its Credit Agreement. Any guarantor that is released from its guarantee under the Credit Agreement, or any replacement or refinancing thereof, also will be released automatically from its guarantee of the Registered Notes and RAI’s other outstanding notes. RAI may redeem the Registered Notes, in whole or in part, at any time at the applicable redemption price. If RAI experiences specific kinds of change of control, accompanied by a certain credit rating downgrade of any series of Registered Notes, RAI must offer to repurchase such series. In addition, in connection with the Consent Solicitations, RAI received the requisite number of consents to adopt the Indenture Amendments, which became operative on the July 15, 2015, settlement date, with respect to each of the seven series of Lorillard Tobacco Notes. The Indenture Amendments: • eliminated substantially all of the restrictive covenants and a bankruptcy event of default for the issuer and the guarantor of the Lorillard Tobacco Notes under the Lorillard Tobacco Indenture; • eliminated the requirement under the Lorillard Tobacco Indenture that the guarantor of the Lorillard Tobacco Notes continue to provide holders of the Lorillard Tobacco Notes with financial statements and other financial information similar to that provided in periodic reports under the Securities Exchange Act of 1934 when it is not subject to such reporting requirements; and • relieved the issuer of the Lorillard Tobacco Notes of the requirement (if any) under the Lorillard Tobacco Indenture that the issuer offer to repurchase the Lorillard Tobacco Notes upon certain change of control events combined with certain credit ratings events to the extent such change of control events relate to, arise out of or are undertaken in connection with the Lorillard Merger or the Lorillard Tobacco Merger. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 — 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 but not limited to 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, SFNTC 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 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 Lorillard Merger and Divestiture, as applicable, RAI and RJR Tobacco undertook certain indemnification obligations. See “— Litigation Affecting the Cigarette Industry – Overview – Introduction,” “— Other Contingencies – ITG 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 footnote 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 a court or statute. The term “ per curiam 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 tobacco-related litigation claim against the Reynolds Defendants, when viewed on an individual basis, is not probable, except for certain Engle Reynolds Defendants believe that they have valid defenses to the tobacco-related 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 tobacco-related 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 consolidated balance sheet as of December 31, 2016, contains accruals for the following Engle Starr-Blundell Buonomo, Ward . Wilcox U.S. Department of Justice It is the policy of Reynolds Defendants to defend tobacco-related litigation claims vigorously; generally, Reynolds Defendants and indemnitees do not settle such claims. However, Reynolds Defendants 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, but are not limited to, 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 tobacco-related litigation claims involving Reynolds Defendants. In the claims underlying the State Settlement Agreements, 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 the Reynolds Defendants. 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 involved different theories of recovery than the other tobacco-related litigation claims pending against the Reynolds Defendants. 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 involved 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. Cautionary Statement Even though RAI’s management continues to believe that the loss of particular pending tobacco-related litigation claims against Reynolds Defendants, when viewed on an individual case-by-case basis, is not probable or estimable (except for certain Engle Although Reynolds Defendants 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. Litigation Affecting the Cigarette Industry Table of Contents Page Overview 99 Individual Smoking and Health 102 West Virginia IPIC 103 Engle and Engle Progeny Cases 104 Broin II 120 Class Actions 120 Filter Cases 124 Health-Care Cost Recovery 125 State Settlement Agreements—Enforcement and Validity; Adjustments 130 Other Litigation and Developments 134 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 fourth quarter of 2016, 23 tobacco-related cases were served against Reynolds Defendants. On December 31, 2016, there were, subject to the exclusions described immediately below, 304 cases pending against Reynolds Defendants: 287 in the United States and 17 in Canada, as compared with 268 total cases on December 31, 2015. Of the U.S. cases pending on December 31, 2016, 34 are pending in federal court, 252 in state court and one in tribal court, primarily in the following states: Illinois (52 cases); Maryland (52 cases); Florida (27 cases); New York (21 cases); Missouri (19 cases); Massachusetts (18 cases); New Mexico (14 cases); and California (12 cases). The U.S. case number excludes the approximately 564 individual smoker cases pending in West Virginia state court as a consolidated action, 2,822 Engle Broin II The following table lists the categories of the U.S. tobacco-related cases pending against Reynolds Defendants as of December 31, 2016, and the increase or decrease from the number of cases pending against Reynolds Defendants as of September 30, 2016, as reported in RAI’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016, filed with the U.S. Securities and Exchange Commission, referred to as the SEC, on October 19, 2016, and a cross-reference to the discussion of each case type. Case Type U.S. Case Numbers as of December 31, 2016 Change in Number of Cases Since September 30, 2016 Increase/(Decrease) Individual Smoking and Health 132 7 West Virginia IPIC (Number of Plaintiffs)* 1 (approx. 564) No change Engle Progeny (Number of Plaintiffs)** 2,822 (approx. 3,645) (66) (110) Broin 2,406 (15) Class Action 25 1 Filter Cases 78 4 Health-Care Cost Recovery 2 No change State Settlement Agreements—Enforcement and Validity; Adjustments 28 No change Other Litigation and Developments 21 No change * 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 49 cases, exclusive of Progeny cases, scheduled for trial as of December 31, 2016 through December 31, 2017 , for RJR Tobacco, B&W, Lorillard Tobacco or their affiliates and indemnitees: six individual smoking and health cases, 34 Filter Cases, five cases and four other non-smoking and health cases. There are also approximately 115 Progeny cases against RJR Tobacco, B&W and/or Lorillard Tobacco set for trial through December 31, 2017. It is not known how many of these cases will actually be tried. Trial Results. From January 1, 2014 through December 31, 2016, 124 individual smoking and health, Progeny, Filter and health-care cost recovery cases in which RJR Tobacco, B&W and/or Lorillard Tobacco were defendants were tried, including nine 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, other defendants, were returned in 60 cases, tried in Florida (39), California (1) and New Jersey (1). There were also 19 mistrials in Florida. Verdicts in favor of the plaintiffs were returned in 57 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 fourth quarter of 2016, 11 Engle • In Wallace v. R. J. Reynolds Tobacco Co. • In Konzelman v. R. J. Reynolds Tobacco Co. • In Maloney v. R. J. Reynolds Tobacco Co. • In Johnston v. R. J. Reynolds Tobacco Co. • In Ledo v. R. J. Reynolds Tobacco Co. • In Howles v. R. J. Reynolds Tobacco Co. • In Kloppenburg v. R. J. Reynolds Tobacco Co. • In Ford v. R. J. Reynolds Tobacco Co. • In Stanley Martin v. R. J. Reynolds Tobacco Co. • In Dubinsky v. R. J. Reynolds Tobacco Co. • In Pardue v. R. J. Reynolds Tobacco Co. For a detailed description of the above-described cases, see “— Engle Engle In the fourth quarter of 2016, no non- Engle In the fourth quarter of 2016, no Filter cases, in which RJR Tobacco and/or Lorillard Tobacco was a defendant, were tried. 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, D.C.) 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 $7.98 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, which reduced the award to $3.78 million against 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. Comparative fault did not apply to the final judgment. 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 December 31, 2016, 132 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 Izzarelli Bifolck v. Philip Morris, Inc Bifolck Izzarelli 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. Major 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 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 were selected to be the first claims tried, and they were tentatively scheduled to be tried beginning on May 1, 2017 . In June 2016, the court granted the defendants’ motion to compel and required the plaintiffs to file additional expert disclosures necessary to attempt to proceed with their claims. The court will set a revised discovery and trial schedule after the expert disclosures are tested for admissibility, and it pushed the tentative trial date to May 2018. 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 14 claims against certain Reynolds Defendants. Those claims were severed from IPIC 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 en banc 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 Engle During 2015, RJR Tobacco and Lorillard Tobacco, together with Philip Morris USA Inc., settled virtually all of the Engle Engle One hundred twenty Engle Engle Starr-Blundell Buonomo, Ward Starr-Blundell Buonomo. Plaintiff Case Name RJR Tobacco Allocation of Fault Lorillard Tobacco Allocation of Fault Compensatory Damages (as adjusted) (1) Punitive Damages Appeal Status Starr-Blundell 10% — $ 50,000 $ — First DCA, per curiam Soffer Buonomo 77.5% — 4,060,000 25,000,000 Fourth DCA affirmed the amended final judgment, per curiam Totals $ 4,110,000 $ 25,000,000 (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 approximately $13.3 million or approximately $1.6 million in attorneys’ fees and statutory interest in Ward 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% — $ — $ 2,500,000 Fourth DCA reinstated the punitive damages awards of $2.5 million each against RJR Tobacco and the remaining defendant; court's opinion that previously granted remittitur of the compensatory damages awards still stands; remanded to trial court for further proceedings Andy Allen 24% — 2,475,000 7,756,000 Pending – First DCA Calloway 27% 18% — — Fourth DCA granted rehearing en banc 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; a subsequent appeal is pending in the Second DCA Schoeff 75% — 7,875,000 — Pending – Florida Supreme Court 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% — 11,514,000 22,500,000 Fourth DCA ordered award of compensatory damages reduced to reflect comparative fault, but otherwise affirmed; RJR Tobacco filed a motion for rehearing on February 6, 2017; decision is pending Gafney 33% 33% — — Fourth DCA reversed the judgment and remanded for a new trial; Florida Supreme Court declined to accept jurisdiction; new trial has not been scheduled Burkhart 25% 10% 3,500,000 (2) 1,750,000 Pending – Eleventh Circuit Bakst (Odom) 75% — — — Fourth DCA reversed the judgment of the trial court and remanded the case for a new trial on damages only; motion for rehearing was filed on January 9, 2017 Robinson 71% — 16,900,000 16,900,000 Pending – First DCA Harris 15% 10% 1,100,000 (2) — Post-trial motions are pending (3) Irimi 15% 15% — — Pending – Fourth DCA Lourie 3% 7% 137,000 — Second DCA affirmed the final judgment; defendants filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court on September 8, 2016; Florida Supreme Court stayed proceedings pending disposition of Marotta Kerrivan 31% — 6,046,660 (2) 9,600,000 Post-trial motions are pending (3) Schleider 70% — 14,700,000 — Pending – Third DCA Perrotto 20% 6% 1,063,000 — Plaintiff's motion for a new trial granted as to punitive damages; new trial scheduled for June 5, 2017 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 — Appeal in the Fourth DCA dismissed; pending in trial court 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% — 13,975,000 25,000,000 Pending – Fourth DCA Hardin 13% — 100,880 — Third DCA remanded the case for a new trial on punitive damages for the non-intentional tort claims; new trial has not been scheduled McCoy 25% 20% 670,000 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) 2,500,000 Pending – Second DCA O'Hara 85% — 14,700,000 20,000,000 Pending – First DCA Marchese 22.5% — 225,000 250,000 Pending – Fourth DCA Barbose 42.5% — 5,000,000 (2) 500,000 Pending – Second DCA Monroe 58% — 6,380,000 — Pending – First DCA Ledoux 47% — 5,000,000 (2) 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) 2,500,000 Pending – Second DCA Turner |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | Note 14 — Shareholders’ Equity RAI’s authorized capital stock at December 31, 2016 and 2015, consisted of 100 million shares of preferred stock, par value $.01 per share, and 3.2 billion shares of common stock, par value $.0001 per share. Four million shares of the preferred stock are designated as Series A Junior Participating Preferred Stock, none of which is issued or outstanding. The Series A Junior Participating Preferred Stock will rank junior as to dividends and upon liquidation to all other series of RAI preferred stock, unless specified otherwise. Also, of the preferred stock, one million shares are designated as Series B Preferred Stock, all of which are issued and outstanding. The Series B Preferred Stock ranks senior upon liquidation, but not with respect to dividends, to all other series of RAI capital stock, unless specified otherwise. As a part of the B&W business combination, RJR is the holder of the outstanding Series B Preferred Stock. In each of 2016, 2015 and 2014, RAI declared $43 million in dividends to RJR with respect to the Series B Preferred Stock. RAI’s board of directors declared the following quarterly cash dividends per share of RAI common stock in 2016, 2015 and 2014: 2016 2015 2014 First $ 0.42 $ 0.335 $ 0.335 Second 0.42 0.335 0.335 Third 0.46 0.360 0.335 Fourth 0.46 0.360 0.335 Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive loss, net of tax, were as follows: Retirement Benefits Long-Term Investments Hedging Instruments Cumulative Translation Adjustment and Other Total Balance at December 31, 2014 $ (294 ) $ (14 ) $ (12 ) $ (44 ) $ (364 ) Other comprehensive income before reclassifications (78 ) — — (25 ) (103 ) Amounts reclassified from accumulated other comprehensive income (loss) 128 — 1 — 129 Net current-period other comprehensive income 50 — 1 (25 ) 26 Balance at December 31, 2015 (244 ) (14 ) (11 ) (69 ) (338 ) Other comprehensive income before reclassifications (18 ) — — (17 ) (35 ) Amounts reclassified from accumulated other comprehensive income (loss) 7 14 11 27 59 Net current-period other comprehensive income (11 ) 14 11 10 24 Balance at December 31, 2016 $ (255 ) $ — $ — $ (59 ) $ (314 ) Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidated statements of income for the years ended December 31, 2016, 2015 and 2014, were as follows: Amounts Reclassified Components 2016 2015 2014 Affected Line Item Retirement benefits: Amortization of prior service cost $ (20 ) $ (20 ) $ (21 ) Cost of products sold Amortization of prior service cost (19 ) (19 ) (18 ) Selling, general and administrative expenses Settlement cost 2 — — Selling, general and administrative expenses MTM adjustment 21 120 205 Cost of products sold MTM adjustment 24 126 247 Selling, general and administrative expenses 8 207 413 Operating income Deferred taxes (1 ) (79 ) (162 ) Provision for income taxes Net of tax 7 128 251 Net income Long-term investments: Realized loss, net on long-term investments 24 — — Other (income) expense, net Deferred taxes (10 ) — — Provision for income taxes Net of tax 14 — — Net income Hedging instruments: Forward starting interest rate contracts 16 — — Other (income) expense, net Amortization of realized loss 1 2 2 Interest and debt expense 17 2 2 Income from continuing operations before income taxes Deferred taxes (6 ) (1 ) (1 ) Provision for income taxes Net of tax 11 1 1 Net income Cumulative translation adjustment and other: Derecognition of cumulative translation adjustment 27 — — Gain on divestitures Total reclassifications $ 59 $ 129 $ 252 Net income Share Repurchases and Other In November 2011, RAI, B&W and BAT entered into Amendment No. 3 to the governance agreement dated as of July 30, 2004, as amended, 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 2016, RAI repurchased and cancelled 1,817,846 shares of RAI common stock for $93 million in accordance with the Governance Agreement. Restricted stock units granted in March 2013, May 2015, September 2014 and January 2016 under the Amended and Restated Omnibus Incentive Compensation Plan, referred to as the Omnibus Plan, vested in March 2016, May 2016, September 2016 and December 2016, respectively, and were settled with the issuance of 2,938,567 shares of RAI common stock. In addition, during the year ended December 31, 2016, at a cost of $58 million, RAI purchased 1,146,978 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. On July 25, 2016, the board of directors of RAI authorized the repurchase, from time to time, on or before December 31, 2018, of up to $2 billion of outstanding shares of RAI common stock in open-market or privately negotiated transactions, referred to as the Share Repurchase Program. The purchases are subject to prevailing market and business conditions, and the program may be terminated or suspended at any time. In connection with the Share Repurchase Program, B&W and Louisville Securities Limited, referred to as LSL, wholly owned subsidiaries of BAT, entered into an agreement, referred to as the Share Repurchase Agreement, with RAI, pursuant to which BAT and its subsidiaries will participate in the Share Repurchase Program on a basis approximately proportionate with BAT and its subsidiaries’ ownership of RAI’s common stock. During 2016, RAI repurchased 1,565,698 shares of RAI common stock for $75 million in accordance with the Share Repurchase Program. The Merger Agreement places restrictions on RAI’s ability to repurchase its common stock. As a result, RAI does not expect to make repurchases under the Share Repurchase Program while the Merger Agreement is in effect. Due to RAI’s incorporation in North Carolina, which does not recognize treasury shares, the shares repurchased were cancelled at the time of repurchase. Changes in RAI common stock outstanding were as follows: 2016 2015 2014 Shares outstanding at beginning of year 1,427,341,341 1,062,567,026 1,076,106,048 Omnibus Plan tax shares repurchased and cancelled (1,146,978 ) (1,111,835 ) (1,108,084 ) Omnibus Plan shares issued from vesting of restricted stock units 2,938,567 2,870,927 2,936,588 Issuance of additional shares as Lorillard Merger Consideration — 209,413,694 — Issuance of additional shares for BAT Share Purchase — 155,360,518 — Shares repurchased and cancelled (3,383,544 ) (1,822,197 ) (15,431,526 ) Equity incentive award plan shares issued 75,569 63,208 64,000 Shares outstanding at end of year 1,425,824,955 1,427,341,341 1,062,567,026 |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Plans | Note 15 — Stock Plans As of December 31, 2016, RAI had two stock plans, the Equity Incentive Award Plan for Directors of RAI, referred to as the EIAP, and the Omnibus Plan. Under the EIAP, RAI currently provides grants of deferred stock units to eligible directors on a quarterly and annual basis, with the annual grant being made generally on the date of RAI’s annual shareholders’ meeting. Prior to September 13, 2012, upon election to RAI’s board of directors, an eligible director received an initial grant of 3,500 deferred stock units under the EIAP. After September 13, 2012, grants are no longer made to directors upon their initial election to the board of directors, but eligible directors initially elected to RAI’s board of directors after such date on a date other than the annual meeting date, and who, therefore, are not eligible to receive the annual stock award for such year, now receive a pro rata portion of the annual award upon election. Directors may elect to receive shares of common stock in lieu of their initial and annual grants of deferred stock units. A maximum of 4,000,000 shares, subject to anti-dilution adjustments, of common stock may be issued under this plan, of which 1,904,424 shares were available for grant as of December 31, 2016. Deferred stock units granted under the EIAP have a value equal to, and bear dividend equivalents at the same rate as, one share of RAI common stock, and have no voting rights. The dividends are paid as additional units in an amount equal to the number of shares of RAI common stock that could be purchased with the dividends on the date of payment. Generally, distribution of a director’s deferred stock units will be made on January 2 following his or her last year of service on the board; however, for all grants made under the EIAP after December 31, 2007, a director may elect to receive his or her deferred stock units on the later of January 2 of a specified year or January 2 following his or her last year of service on the board. At the election of a director, distribution may be made in one lump sum or in up to ten annual installments. A director is paid in cash for the units granted quarterly and in common stock for the units granted initially and annually, unless the director elects to receive cash for the initial and annual grants. Cash payments are based on the average closing price of RAI common stock during December of the year preceding payment. Compensation expense related to the EIAP was $14 million, $15 million and $10 million during 2016, 2015 and 2014, respectively. Awards to key employees under the Omnibus Plan may be in the form of cash awards, incentive or non-incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units or other awards. Subject to adjustments as set forth in the Omnibus Plan, the number of shares of RAI common stock that may be issued with respect to awards under the Omnibus Plan will not exceed 76,000,000 shares in the aggregate. Upon retirement, a holder’s grant under the Omnibus Plan generally vests on a pro rata basis for the portion of the vesting service period that has elapsed, thereby maintaining an appropriate approximation of forfeitures related to retirement. Information regarding restricted stock unit awards outstanding as of December 31, 2016, under the Omnibus Plan was as follows: Grant Year Number of Shares Granted Grant Price Per Share Vesting Date Number of Shares Cancelled and Vested Cumulative Dividends Per Share Ending Date of Performance Period Three-year grants 2014 2,098,696 $ 26.645 March 3, 2017 504,776 $ 4.02 December 31, 2016 2014 51,814 $ 29.365 March 3, 2017 — $ 3.02 December 31, 2016 2015 1,386,180 $ 37.940 March 2, 2018 169,217 $ 4.02 December 31, 2017 2015 17,196 $ 36.300 March 2, 2018 — $ 4.02 December 31, 2017 2016 1,071,544 $ 50.490 March 1, 2019 83,454 $ 5.04 December 31, 2018 2016 4,898 $ 50.130 March 1, 2019 — $ 4.62 December 31, 2018 2016 1,727 $ 51.030 March 1, 2019 — $ 4.20 December 31, 2018 2016 4,581 $ 50.550 March 1, 2019 — $ 4.20 December 31, 2018 2016 21,249 $ 55.100 March 1, 2019 — $ 3.78 December 31, 2018 2016 1,366 $ 56.040 March 1, 2019 — $ 3.36 December 31, 2018 One-year grant 2016 164,841 $ 56.040 May 1, 2017 — $ 1.68 April 30, 2017 Other grants 2014 74,266 $ 29.365 September 30, 2018 — N/A N/A 2016 23,605 $ 46.930 December 15, 2017 — N/A N/A 2016 16,094 $ 46.930 December 15, 2018 — N/A N/A 2016 10,551 $ 55.100 December 15, 2017 — N/A N/A 2016 10,550 $ 55.100 December 15, 2018 — N/A N/A Three-Year Grants and Other Grants The grant date fair value was based on the per share closing price of RAI common stock on the date of grant. The actual number of shares granted is fixed. As an equity-based grant, compensation expense includes the vesting period lapsed. There were no shares issued during 2016 with respect to awards outstanding as of December 31, 2016. All outstanding grants will be settled exclusively in RAI common stock. Upon settlement, each grantee of the three-year grants will receive a number of shares of RAI’s common stock equal to the product of the number of vested units and a percentage up to 150% based on the average RAI annual incentive award plan score over the three-year period ending on December 31 of the year prior to the vesting date. The other grants do not contain a performance measure. One-Year Grant The actual number of shares granted is fixed. As an equity-based grant, compensation expense 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 $56.04 as of December 31, 2016. There were no shares issued during 2016 with respect to awards outstanding as of December 31, 2016. All outstanding grants will be settled exclusively in RAI common stock. 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, 2016, and ending April 30, 2017, against RAI’s 2016 annual incentive award program metrics and other performance factors. Restricted Stock Unit Dividends Dividends paid on shares of RAI common stock will accumulate on the restricted stock units and be paid to the grantee on the vesting date. If RAI fails to pay its shareholders cumulative dividends of at least the amounts shown above, then each award will be reduced by an amount equal to three times the percentage of the dividend underpayment, up to a maximum reduction of 50%. Dividends are accrued on the grants and included in other current liabilities, based on the vesting date of less than one year, and in other noncurrent liabilities, based on the vesting date of greater than one year, in the consolidated balance sheets as of December 31, 2016 and 2015. The changes in the number of RAI restricted stock units during 2016 were as follows: Number of Stock Units Weighted Average Grant Date Fair Value Per Share Outstanding at beginning of year 5,147,400 $ 28.42 Granted 1,354,611 51.15 Forfeited (224,490 ) 39.21 Vested (2,075,810 ) 25.11 Outstanding at end of year 4,201,711 36.81 Total compensation expense related to stock-based compensation and the related tax benefits recognized in selling, general and administrative expenses in the consolidated statements of income as of December 31, were as follows: Grant/Type 2016 2015 2014 2011 restricted stock units $ — $ — $ 3 2012 restricted stock units — 3 14 2013 restricted stock units 3 20 15 2014 restricted stock units 20 32 24 2015 restricted stock units 30 24 — 2016 restricted stock units 24 — — Total compensation expense $ 77 $ 79 $ 56 Total related tax benefits $ 27 $ 28 $ 20 The amounts related to the unvested Omnibus Plan restricted stock unit grants included in the consolidated balance sheets as of December 31, were as follows: 2016 2015 Other current liabilities $ 10 $ 10 Other noncurrent liabilities 7 8 Paid-in capital 111 110 As of December 31, 2016, there were $63 million of unrecognized compensation costs related to restricted stock units, calculated at the grant-date price, which are expected to be recognized over a weighted-average period of 1.7 years. The excess tax benefits related to stock-based compensation were $28 million, $17 million and $12 million in 2016, 2015 and 2014, respectively. There are no outstanding options under the EIAP or the Omnibus Plan, and as a result there was no share option activity during 2016 and 2015. Equity compensation plan information as of December 31, 2016, was as follows: Plan Category Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights Weighted Average Exercise Price of Outstanding Options, Warrants and Rights Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (a) (b) (c) Equity Compensation Plans Approved by Security Holders 6,317,451 (2) $ — 62,307,352 Equity Compensation Plans Not Approved by Security Holders (1) — — 1,904,424 Total 6,317,451 (2) — 64,211,776 (1) The EIAP was approved by RJR’s sole shareholder, Nabisco Group Holdings Corp., prior to RJR’s spin-off on June 15, 1999. (2) Consists of restricted stock units. These restricted stock units represent the maximum number of shares to be awarded under the best-case targets, and accordingly, may overstate expected dilution. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Benefits | Note 16 — Retirement Benefits Pension and Postretirement Benefit Plans RAI sponsors a number of non-contributory defined benefit pension plans covering certain employees of RAI and its subsidiaries. RAI and a subsidiary provide health and life insurance benefits for certain retired employees of RAI and its subsidiaries and their dependents. These benefits are generally no longer provided to employees hired on or after January 1, 2004. The changes in benefit obligations and plan assets, as well as the funded status of these plans at December 31 were as follows: Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Change in benefit obligations: Obligations at beginning of year $ 6,738 $ 6,389 $ 1,210 $ 1,251 Service cost 16 26 2 2 Interest cost 295 275 49 50 Actuarial (gain) loss 95 (270 ) (12 ) (120 ) Merger — 756 — 111 Benefits paid (434 ) (431 ) (87 ) (84 ) Settlements (36 ) (7 ) — — Obligations at end of year $ 6,674 $ 6,738 $ 1,162 $ 1,210 Change in plan assets: Fair value of plan assets at beginning of year $ 5,351 $ 5,309 $ 241 $ 259 Actual return on plan assets 432 (131 ) 10 (1 ) Employer contributions 335 18 66 67 Merger — 593 — — Benefits paid (434 ) (431 ) (87 ) (84 ) Settlements (36 ) (7 ) — — Fair value of plan assets at end of year $ 5,648 $ 5,351 $ 230 $ 241 Funded status $ (1,026 ) $ (1,387 ) $ (932 ) $ (969 ) For the pension benefit plans, the benefit obligation is the projected benefit obligation. For the postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. As of December 31, 2016, the improvement in pension benefits funded status is primarily due to employer contributions, updated mortality and other assumptions and higher return on plan assets partially offset by the decrease in the discount rate. As of December 31, 2016, the improvement in postretirement benefits funded status is primarily due to updated mortality and health-care claims assumptions offset by the decrease in the discount rate. As of December 31, 2015, the decline in pension benefits funded status is primarily a result of the acquired plans from the Lorillard Merger, lower return on plan assets, and updated assumptions offset by the increase in the discount rate. As of December 31, 2015, the improvement in postretirement benefits funded status is primarily a result of the increase in the discount rate and updated assumptions offset by the acquired plans from the Lorillard Merger. The changes in net actuarial (gain) loss impacted the funded status as follows: Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Net actuarial (gain) loss: Change in discount rate $ 266 $ (287 ) $ 38 $ (37 ) Change in mortality table (101 ) (128 ) (14 ) (21 ) Actual return on plan assets (432 ) 131 (10 ) 1 Expected return on plan assets 372 373 12 12 Other (69 ) 145 (37 ) (62 ) Net actuarial (gain) loss $ 36 $ 234 $ (11 ) $ (107 ) Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Amounts recognized in the consolidated balance sheets consist of: Accrued benefit — other current liabilities $ (11 ) $ (10 ) $ (78 ) $ (81 ) Accrued benefit — long-term retirement benefits (1,015 ) (1,377 ) (854 ) (888 ) Net amount recognized (1,026 ) (1,387 ) (932 ) (969 ) Accumulated other comprehensive loss 616 636 (146 ) (183 ) Net amounts recognized in the consolidated balance sheets $ (410 ) $ (751 ) $ (1,078 ) $ (1,152 ) Amounts included in accumulated other comprehensive loss were as follows as of December 31: 2016 2015 Pension Benefits Postretirement Benefits Total Pension Benefits Postretirement Benefits Total Prior service cost (credit) $ 7 $ (95 ) $ (88 ) $ 10 $ (137 ) $ (127 ) Net actuarial (gain) loss 609 (51 ) 558 626 (46 ) 580 Deferred income taxes (256 ) 41 (215 ) (262 ) 53 (209 ) Accumulated other comprehensive loss $ 360 $ (105 ) $ 255 $ 374 $ (130 ) $ 244 Changes in accumulated other comprehensive loss were as follows: 2016 2015 Pension Benefits Postretirement Benefits Total Pension Benefits Postretirement Benefits Total Net actuarial (gain) loss $ 36 $ (11 ) $ 25 $ 234 $ (107 ) $ 127 Amortization of prior service cost (credit) (3 ) 42 39 (3 ) 42 39 Prior service cost (credit) — — — — (1 ) (1 ) Settlement cost (2 ) — (2 ) (1 ) — (1 ) MTM adjustment (51 ) 6 (45 ) (246 ) — (246 ) Deferred income tax (benefit) expense 6 (12 ) (6 ) 6 26 32 Change in accumulated other comprehensive loss $ (14 ) $ 25 $ 11 $ (10 ) $ (40 ) $ (50 ) The pension MTM adjustment expense in 2016 is primarily a result of a decrease in the discount rate and was partially offset by pension asset return gains of $432 million versus an expected return of $372 million and updated mortality and other assumptions. The postretirement MTM adjustment gain in 2016 is primarily a result of updated mortality and health-care claims assumptions and was partially offset by a decrease in the discount rate. The MTM adjustment expense in 2015 is primarily a result of pension asset return losses of $131 million versus an expected return of $373 million and was partially offset by an increase in the discount rate. In March 2010, the Patient Protection Affordable Care Act, referred to as the PPACA, as amended by the Health Care and Reconciliation Act of 2010, was signed into law. The PPACA mandates health-care reforms with staggered effective dates from 2010 to 2018. The additional postretirement liability resulting from the material impacts of the PPACA have been included in the accumulated postretirement benefit obligation at December 31, 2016 and 2015. Given the complexity of the PPACA and the extended time period in which implementation is expected to occur, further adjustments to the accumulated postretirement benefit obligation may be necessary in the future. Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 4.16 % 4.54 % 4.12 % 4.47 % Rate of compensation increase 4.00 % 4.00 % — — The measurement date used for all plans was December 31. Pension plans experiencing accumulated benefit obligations, which represent benefits earned to date, in excess of plan assets are summarized below: December 31, 2016 2015 Projected benefit obligation $ 6,674 $ 6,738 Accumulated benefit obligation 6,625 6,684 Plan assets 5,648 5,351 The components of the total benefit cost (income) and assumptions are set forth below: Pension Benefits Postretirement Benefits 2016 2015 2014 2016 2015 2014 Service cost $ 16 $ 26 $ 21 2 2 $ 2 Interest cost 295 275 266 49 50 53 Expected return on plan assets (372 ) (373 ) (360 ) (12 ) (12 ) (12 ) Amortization of prior service cost (credit) 3 3 3 (42 ) (42 ) (42 ) Settlements 2 1 — — — — MTM adjustment 51 246 420 (6 ) — 32 Total benefit cost (income) $ (5 ) $ 178 $ 350 $ (9 ) $ (2 ) $ 33 The estimated amortization of prior service cost for the pension plans is expected to be $3 million during 2017. The estimated amortization of prior service credit for the postretirement plans is expected to be $36 million during 2017. Pension Benefits Postretirement Benefits 2016 2015 (1) 2014 2016 2015 (1) 2014 Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 4.54 % 4.14 % 4.92 % 4.47 % 4.12 % 4.87 % Expected long-term return on plan assets 6.82 % 6.83 % 7.13 % 4.60 % 4.85 % 4.85 % Rate of compensation increase 4.00 % 4.00 % 4.00 % — — — (1) Determined as of the beginning of year and adjusted for the Lorillard Merger in 2015. Additional information relating to RAI’s significant postretirement plans is as follows: 2016 2015 Weighted-average health-care cost trend rate assumed for the following year 7.00 % 7.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2025 2020 Assumed health-care cost trend rates have a significant effect on the amounts reported for the health-care plans. A one-percentage-point change in assumed health-care cost trend rates would have had the following effects at December 31, 2016: 1-Percentage Point Increase 1-Percentage Point Decrease Effect on total of service and interest cost components $ 2 $ (2 ) Effect on benefit obligation 58 (49 ) During 2017, RAI expects to contribute $111 million to its pension plans and $78 million to its postretirement plans. Estimated future benefit payments: Postretirement Benefits Year Pension Benefits Gross Benefit Before Medicare Part D Subsidies Expected Medicare Part D Subsidies Net Projected Benefit Payments After Medicare Part D Subsidies 2017 $ 447 $ 105 $ (2 ) $ 103 2018 443 90 (2 ) 88 2019 439 87 (2 ) 85 2020 436 85 (2 ) 83 2021 431 83 (2 ) 81 2022-2026 2,082 386 (11 ) 375 Pension and Postretirement Assets RAI generally uses a hypothetical bond matching analysis to determine the discount rate. The discount rate modeling process involves selecting a portfolio of high quality corporate bonds whose cash flows, via coupons and maturities, match the projected cash flows of the obligations. The overall expected long-term rate of return on asset assumptions for pension and postretirement assets are based on: (1) the target asset allocation for plan assets, (2) long-term capital markets forecasts for asset classes employed, and (3) excess return expectations of active management to the extent asset classes are actively managed. Plan assets are invested using active investment strategies and multiple investment management firms. Managers within each asset class cover a range of investment styles and approaches and are combined in a way that controls for capitalization, style bias, and interest rate exposures, while focusing primarily on security selection as a means to add value. Risk is controlled through diversification among asset classes, managers, investment styles and securities. Risk is further controlled both at the manager and asset class level by assigning excess return and tracking error targets against related benchmark indices. Investment manager performance is evaluated against these targets. RAI employs a risk mitigation strategy, which seeks to balance pension plan returns with a reasonable level of funded status volatility. Based on this framework, the asset allocation has two primary components. The first component is the “hedging portfolio,” which uses extended duration fixed income holdings and derivatives to match a portion of the interest rate risk associated with the benefit obligations, thereby reducing expected funded status volatility. The second component is the “return seeking portfolio,” which is designed to enhance portfolio returns. The return seeking portfolio is broadly diversified across asset classes. Allowable investment types include domestic equity, international equity, global equity, emerging market equity, fixed income, real assets, private equity, absolute return and commodities. The range of allowable investment types utilized for pension assets provides enhanced returns and more widely diversifies the plan. Domestic equities are composed of common stocks of large, medium and small companies. International equities include equity securities issued by companies domiciled outside the United States and in depository receipts, which represent ownership of securities of non-U.S. companies. Global equities include a combination of both domestic and international equities. Emerging market equities are comprised of stocks that are domiciled in less developed, fast growing countries. Fixed income includes corporate debt obligations, fixed income securities issued or guaranteed by the U.S. government, and to a lesser extent by non-U.S. governments, mortgage backed securities, high yield securities, asset backed securities, municipal bonds and dollar-denominated obligations issued in the United States by non-U.S. banks and corporations. Real assets consist of publicly traded real estate investment trust securities, private real estate investments and private energy investments. Private equity consists of the unregistered securities of private and public companies. Absolute return investments are diversified portfolios utilizing multiple strategies that invest primarily in public securities, including equities and fixed income. Commodities utilize futures contracts to invest in a variety of energy, metal and agricultural goods. For pension assets, futures and forward contracts are used for portfolio rebalancing and to approach fully invested portfolio positions. Otherwise, a small number of investment managers employ limited use of derivatives, including futures contracts, options on futures, forward contracts and interest rate swaps in place of direct investment in securities to gain efficient exposure to markets. RAI’s pension and postretirement plans asset allocations at December 31, 2016 and 2015, by asset category were as follows: Pension Plans 2016 (1) 2016 2015 (1) 2015 Asset Category: Domestic equities 10 % 12 % 10 % 10 % International equities 8 % 8 % 8 % 7 % Global equities 9 % 12 % 9 % 11 % Emerging market equities 3 % 2 % 3 % 2 % Fixed income 53 % 53 % 53 % 53 % Absolute return 6 % 7 % 6 % 8 % Private equity 2 % 2 % 2 % 2 % Real assets 5 % 4 % 5 % 5 % Commodities 4 % — 4 % 2 % Total 100 % 100 % 100 % 100 % Postretirement Plans 2016 Target (1) 2016 2015 Target (1) 2015 Asset Category: Domestic equities 21 % 22 % 21 % 20 % International equities 21 % 20 % 21 % 21 % Fixed income 55 % 51 % 55 % 54 % Cash and other 3 % 7 % 3 % 5 % Total 100 % 100 % 100 % 100 % (1) Allows for a rebalancing range of up to 5 percentage points around target asset allocations. RAI’s pension and postretirement plan assets, excluding uninvested cash and unsettled trades, carried at fair value on a recurring basis as of December 31, 2016 and 2015, were as follows ( 1) 2016 2015 Pension Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset Category: Domestic equities $ 457 $ — $ — $ 457 $ 410 $ — $ — $ 410 Global equities 635 — — 635 585 — — 585 International equities 137 — — 137 144 — — 144 Real assets 23 — — 23 21 — — 21 Agency bonds — 29 — 29 — 18 — 18 Asset backed securities — 52 1 53 — 90 3 93 Corporate bonds — 1,797 1 1,798 — 1,718 1 1,719 Government bonds — 78 — 78 — 91 — 91 High yield fixed income — 20 — 20 — 19 — 19 Mortgage backed securities — 75 — 75 — 41 — 41 Municipal bonds — 201 — 201 — 201 — 201 Treasuries — 554 — 554 — 550 — 550 Cash equivalents and other 28 332 2 362 33 90 2 125 Total investments in the fair value hierarchy $ 1,280 $ 3,138 $ 4 4,422 $ 1,193 $ 2,818 $ 6 4,017 Investments measured at net asset value (2) 1,250 1,282 Total $ 5,672 $ 5,299 2016 2015 Postretirement Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset Category: Short-term bonds $ 8 $ — $ — $ 8 $ 13 $ — $ — $ 13 Cash equivalents and other — 7 — 7 — 6 — 6 Total investments in the fair value hierarchy $ 8 $ 7 $ — 15 $ 13 $ 6 $ — 19 Investments measured at net asset value (2) 205 216 Total $ 220 $ 235 (1) See note 1 for additional information on the fair value hierarchy. (2) Prior-year amounts were reclassified in accordance with the adoption of ASU 2015-07. For the years ended December 31, 2016 and 2015, there were no transfers among the fair value hierarchy levels. At December 31, 2016 and 2015, the fair value of pension and postretirement assets classified as Level 1 was determined using a combination of third party pricing services for certain domestic equities, global equities, international equities, real assets and cash equivalents and other. At December 31, 2016 and 2015, the fair value of pension and postretirement assets classified as Level 2 was determined using a combination of third party pricing services for certain agency bonds, asset backed securities, corporate bonds, government bonds, high yield fixed income, mortgage backed securities, municipal bonds, treasuries and cash equivalents and other. The fair value of assets classified as asset backed securities, corporate bonds and other, classified as Level 3, was determined primarily using an income approach that utilized cash flow models and benchmarking strategies. This approach utilized inputs, including market-based interest rate curves, corporate credit spreads and corporate ratings. Additionally, unobservable factors incorporated into these models included default probability assumptions, potential recovery, discount rates and other entity specific factors. In instances where the plans have invested in commingled pools, the net asset value was used as the practical expedient and no adjustments were made to the provided fair value. This approach utilized the net asset value of the underlying investment fund adjusted by the investment manager for restrictions or illiquidity of the disposition of the interest, if any, valuations provided by the fund’s cash flows, and the rights and obligations of the ownership interest of the fund. Transfers of pension and postretirement plan assets in and out of Level 3 during 2016, by asset category were as follows (1) Balance January 1, 2016 Purchases, Issuances Settlements (net) Realized Gains (Losses) Unrealized Gains (Losses) Transferred From Other Levels Balance December 31, 2016 Asset backed securities $ 3 $ — $ — $ (2 ) $ — $ 1 Corporate bonds 1 — — — — 1 Other 2 — (28 ) 28 — 2 Total $ 6 $ — $ (28 ) $ 26 $ — $ 4 Transfers of pension and postretirement plan assets in and out of Level 3 during 2015, by asset category were as follows (1) Balance January 1, 2015 Purchases, Issuances Settlements (net) Realized Gains (Losses) Unrealized Gains (Losses) Transferred From Other Levels Balance December 31, 2015 Asset backed securities $ 3 $ — $ — $ — $ — $ 3 Corporate bonds 2 (1 ) — — — 1 Other 2 — — — — 2 Total $ 7 $ (1 ) $ — $ — $ — $ 6 (1) See note 1 for additional information on the fair value hierarchy. Defined Contribution Plans RAI sponsors qualified defined contribution plans. The expense related to these plans was $41 million in 2016, $40 million in 2015 and $37 million in 2014. Included in the plans is a non-leveraged employee stock ownership plan, which holds shares of the Reynolds Stock Fund. Participants can elect to contribute to the fund. Dividends paid on shares are reflected as a reduction of equity. All shares are considered outstanding for earnings per share computations. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Note 17 — Segment Information RAI’s reportable operating segments are RJR Tobacco, Santa Fe and American Snuff. The RJR Tobacco segment consists of the primary operations of R. J. Reynolds Tobacco Company. The Santa Fe segment consists of the primary 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. RAI’s largest reportable operating segment, RJR Tobacco, is the second largest tobacco company in the United States. Its brands include three of the top four 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 also manages the super-premium cigarettes, DUNHILL and STATE EXPRESS 555, which are licensed from BAT. For additional information regarding related parties, see note 18. 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 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 and recognized a pre-tax gain of approximately $4.9 billion. See note 3 for additional information. Intersegment revenues and items below the operating income line of the consolidated statements of income are not presented by segment, since they are excluded from the measure of segment profitability reviewed by RAI’s chief operating decision maker. Additionally, information about total assets by segment is not reviewed by RAI’s chief operating decision maker and therefore is not disclosed. Segment Data: 2016 2015 2014 Net sales: RJR Tobacco $ 10,314 $ 8,634 $ 6,767 Santa Fe 973 818 658 American Snuff 914 855 783 All Other 302 368 263 Consolidated net sales $ 12,503 $ 10,675 $ 8,471 Operating income (loss): RJR Tobacco (1)(2) $ 4,922 $ 3,359 $ 2,173 Santa Fe 546 449 337 American Snuff (2) 541 502 438 All Other (3) (145 ) (265 ) (234 ) Gain on divestitures 4,861 3,181 — Corporate Expense (2) (156 ) (273 ) (183 ) Consolidated operating income $ 10,569 $ 6,953 $ 2,531 Cash capital expenditures: RJR Tobacco $ 130 $ 84 $ 53 Santa Fe 12 16 7 American Snuff 22 10 12 All Other 42 64 132 Consolidated capital expenditures $ 206 $ 174 $ 204 Depreciation and amortization expense: RJR Tobacco $ 77 $ 71 $ 65 Santa Fe 4 3 3 American Snuff 16 17 17 All Other 26 31 21 Consolidated depreciation and amortization expense $ 123 $ 122 $ 106 Reconciliation to income from continuing operations before income taxes: Consolidated operating income (1)(2)(3) $ 10,569 $ 6,953 $ 2,531 Interest and debt expense 626 570 286 Interest income (8 ) (6 ) (3 ) Other (income) expense, net 260 5 (14 ) Income from continuing operations before income taxes $ 9,691 $ 6,384 $ 2,262 ( 1 ) Includes NPM Adjustment credits of $388 million, $293 million and $341 million for RJR Tobacco for the years ended December 31, 2016, 2015 and 2014, respectively. ( 2 ) Includes MTM adjustment expense of $42 million for RJR Tobacco and $3 million for Corporate Expense for the year ended December 31, 2016. Includes MTM adjustment expense of $229 million for RJR Tobacco, $1 million for American Snuff and $16 million for Corporate Expense and All Other for the year ended December 31, 2015. Includes MTM adjustment expense of $422 million for RJR Tobacco, $4 million for American Snuff and $26 million for Corporate Expense and All Other for the year ended December 31, 2014. (3 ) Includes $99 million of asset impairment and exit charges for the year ended December 31, 2015. See note 6. Sales to McLane Company, Inc., a distributor, constituted approximately 28% of RAI’s consolidated revenue in each of 2016 and 2015 and 31% in 2014. Sales to Core-Mark International, Inc., a distributor, represented approximately 14%, 10% and 11% of RAI’s consolidated revenue in 2016, 2015 and 2014, respectively. McLane Company, Inc. and Core-Mark International, Inc. are customers of RJR Tobacco, Santa Fe and American Snuff. No other customer accounted for 10% or more of RAI’s consolidated revenue during those periods. RAI’s operating subsidiaries’ sales to foreign countries, primarily to related parties, for the years ended December 31, 2016, 2015 and 2014 were $351 million, $482 million and $497 million, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 18 — Related Party Transactions RAI and RAI’s operating subsidiaries engage in transactions with affiliates of BAT. BAT, through wholly owned subsidiaries, beneficially owns approximately 42% of RAI’s outstanding common stock. The following is a summary of balances and transactions with such BAT affiliates as of and for the years ended December 31: 2016 2015 Current Balances: Accounts receivable, related party $ 113 $ 38 Due to related party 7 9 Deferred revenue, related party 66 33 Other current liabilities — 2 Long-term Balances: Long-term deferred revenue, related party $ 39 $ — 2016 2015 2014 Significant Transactions: Net sales $ 226 $ 259 $ 311 Purchases 21 38 28 BAT Share Purchase — 4,673 — Share repurchase agreements 32 — 155 Research and development services billings 1 3 4 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. In July 2016, RJR Tobacco further amended the contract manufacturing agreement with a BAT affiliate to permit an early transition of the cigarette production covered by the agreement to BAT facilities over several months beginning in the fourth quarter of 2016. The amendment provides for a BAT affiliate to make a payment to RJR Tobacco of $89.6 million, in exchange for RJR Tobacco’s commitment to provide contingent manufacturing capacity to a BAT affiliate through December 31, 2018. Of this amount, $40.2 million was recorded as current deferred revenue and $38.9 million was recorded as long-term deferred revenue in RAI’s consolidated balance sheet as of December 31, 2016. The first installment of $7.4 million was received in September 2016. The second installment of $82.2 million is due on or before March 31, 2017. RJR Tobacco will recognize the income ratably from the effective date of the amendment to December 31, 2018. Net sales to BAT affiliates, primarily cigarettes, represented approximately 2% of RAI’s total net sales in each of 2016 and 2015, and 4% in 2014. RJR Tobacco recorded deferred sales revenue relating to leaf sold to BAT affiliates that had not been delivered as of December 31, in each of 2016, 2015 and 2014, 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. RJR Tobacco performs certain research and development for BAT affiliates pursuant to a joint technology sharing agreement entered into as a part of the B&W business combination. These services were billed to BAT affiliates and were recorded in RJR Tobacco’s selling, general and administrative expenses, net of associated costs. In January 2016, prior to the sale of the international rights to the NATURAL AMERICAN SPIRIT brand to JTI, SFRTI paid $6 million to a BAT affiliate pursuant to a contract manufacturing agreement, 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 the consolidated statements of income. In connection with the Share Repurchase Program, B&W and LSL, wholly owned subsidiaries of BAT, entered into the Share Repurchase Agreement on July 25, 2016, with RAI, pursuant to which BAT and its subsidiaries will participate in the Share Repurchase Program on a basis approximately proportionate with BAT and its subsidiaries’ ownership of RAI common stock. Under the Share Repurchase Agreement, RAI repurchased 660,385 shares of RAI common stock for $32 million from BAT and its subsidiaries during the year ended December 31, 2016. The Merger Agreement places restrictions on RAI’s ability to repurchase its common stock. As a result, RAI does not expect to make repurchases under the Share Repurchase Program while the Merger Agreement is in effect. On June 12, 2015, RAI and BAT completed the BAT Share Purchase in connection with the Lorillard Merger and Divestiture. For additional information, see note 2. 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 collaborate on the development of next generation vapor products. For information regarding the BAT Merger, see note 22. |
RAI Guaranteed, Unsecured Notes
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements | Note 19 — RAI Guaranteed, Unsecured Notes — Condensed Consolidating Financial Statements The following condensed consolidating financial statements relate to the guaranties of RAI’s $12.7 billion aggregate principal amount of unsecured notes. See note 12 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, SFNTC, American Snuff Co. 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 Year Ended December 31, 2016 Net sales $ — $ 12,209 $ 198 $ (130 ) $ 12,277 Net sales, related party — 226 — — 226 Net sales — 12,435 198 (130 ) 12,503 Cost of products sold — 4,787 185 (131 ) 4,841 Selling, general and administrative expenses 41 1,721 167 2 1,931 Gain on divestitures — (4,843 ) (16 ) (2 ) (4,861 ) Amortization expense — 22 1 — 23 Operating income (loss) (41 ) 10,748 (139 ) 1 10,569 Interest and debt expense 619 81 9 (83 ) 626 Interest income (84 ) (6 ) (1 ) 83 (8 ) Other (income) expense, net 244 (30 ) 3 43 260 Income (loss) before income taxes (820 ) 10,703 (150 ) (42 ) 9,691 Provision for (benefit from) income taxes (171 ) 3,840 (51 ) — 3,618 Equity income from subsidiaries 6,722 4 — (6,726 ) — Net income (loss) $ 6,073 $ 6,867 $ (99 ) $ (6,768 ) $ 6,073 For the Year Ended December 31, 2015 Net sales $ — $ 10,319 $ 333 $ (236 ) $ 10,416 Net sales, related party — 259 — — 259 Net sales — 10,578 333 (236 ) 10,675 Cost of products sold — 4,673 248 (233 ) 4,688 Selling, general and administrative expenses 79 1,738 281 — 2,098 Gain on divestitures — (3,153 ) (28 ) — (3,181 ) Amortization expense — 18 — — 18 Asset impairment and exit charges — 99 — — 99 Operating income (loss) (79 ) 7,203 (168 ) (3 ) 6,953 Interest and debt expense 559 104 7 (100 ) 570 Interest income (100 ) (6 ) — 100 (6 ) Other (income) expense, net 20 (42 ) (16 ) 43 5 Income (loss) before income taxes (558 ) 7,147 (159 ) (46 ) 6,384 Provision for (benefit from) income taxes (224 ) 3,417 (62 ) — 3,131 Equity income from subsidiaries 3,587 46 — (3,633 ) — Net income (loss) $ 3,253 $ 3,776 $ (97 ) $ (3,679 ) $ 3,253 For the Year Ended December 31, 2014 Net sales $ — $ 8,109 $ 232 $ (181 ) $ 8,160 Net sales, related party — 311 — — 311 Net sales — 8,420 232 (181 ) 8,471 Cost of products sold — 4,002 235 (179 ) 4,058 Selling, general and administrative expenses 75 1,535 261 — 1,871 Amortization expense — 11 — — 11 Operating income (loss) (75 ) 2,872 (264 ) (2 ) 2,531 Interest and debt expense 286 79 6 (85 ) 286 Interest income (85 ) (3 ) — 85 (3 ) Other (income) expense, net 4 (44 ) (17 ) 43 (14 ) Income (loss) from continuing operations before income taxes (280 ) 2,840 (253 ) (45 ) 2,262 Provision for (benefit from) income taxes (89 ) 1,004 (98 ) — 817 Equity income from subsidiaries 1,661 26 — (1,687 ) — Income (loss) from continuing operations 1,470 1,862 (155 ) (1,732 ) 1,445 Income from discontinued operations, net of tax — 25 — — 25 Net income (loss) $ 1,470 $ 1,887 $ (155 ) $ (1,732 ) $ 1,470 Condensed Consolidating Statements of Comprehensive Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2016 Net income (loss) $ 6,073 $ 6,867 $ (99 ) $ (6,768 ) $ 6,073 Other comprehensive income (loss), net of tax: Retirement benefits (11 ) (12 ) (4 ) 16 (11 ) Long-term investments 14 14 — (14 ) 14 Hedging instruments 11 — — — 11 Cumulative translation adjustment and other 10 10 13 (23 ) 10 Comprehensive income (loss) $ 6,097 $ 6,879 $ (90 ) $ (6,789 ) $ 6,097 For the Year Ended December 31, 2015 Net income (loss) $ 3,253 $ 3,776 $ (97 ) $ (3,679 ) $ 3,253 Other comprehensive income (loss), net of tax: Retirement benefits 50 50 13 (63 ) 50 Hedging instruments 1 — — — 1 Cumulative translation adjustment and other (25 ) (27 ) (37 ) 64 (25 ) Comprehensive income (loss) $ 3,279 $ 3,799 $ (121 ) $ (3,678 ) $ 3,279 For the Year Ended December 31, 2014 Net income (loss) $ 1,470 $ 1,887 $ (155 ) $ (1,732 ) $ 1,470 Other comprehensive income (loss), net of tax: Retirement benefits (277 ) (271 ) (1 ) 272 (277 ) Long-term investments 2 2 — (2 ) 2 Hedging instruments 1 — — — 1 Cumulative translation adjustment and other (34 ) (34 ) (48 ) 82 (34 ) Comprehensive income (loss) $ 1,162 $ 1,584 $ (204 ) $ (1,380 ) $ 1,162 Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2016, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ — $ (20 ) Cost of products sold Amortization of prior service cost — (19 ) — — (19 ) Selling, general and administrative expenses Settlement cost — 2 — — 2 Selling, general and administrative expenses MTM adjustment — 21 — — 21 Cost of products sold MTM adjustment 4 26 (6 ) — 24 Selling, general and administrative expenses 4 10 (6 ) — 8 Operating income (loss) Deferred taxes — (1 ) — — (1 ) Provision for (benefit from) income taxes Net of tax 4 9 (6 ) — 7 Net income (loss) Long-term investments: Realized loss, net on long-term investments — 24 — — 24 Other (income) expense, net Deferred taxes — (10 ) — — (10 ) Provision for (benefit from) income taxes Net of tax — 14 — — 14 Net income (loss) Hedging instruments: Forward starting interest rate contracts 16 — — — 16 Other (income) expense, net Amortization of realized loss 1 — — — 1 Interest and debt expense Deferred taxes (6 ) — — — (6 ) Provision for (benefit from) income taxes Net of tax 11 — — — 11 Net income (loss) Cumulative translation adjustment and other: Derecognition of cumulative translation adjustment — — 27 — 27 Gain on divestitures Equity income from subsidiaries 44 21 — (65 ) — Equity income from subsidiaries Total reclassifications $ 59 $ 44 $ 21 $ (65 ) $ 59 Net income (loss) Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2015, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ — $ (20 ) Cost of products sold Amortization of prior service cost — (19 ) — — (19 ) Selling, general and administrative expenses MTM adjustment — 120 — — 120 Cost of products sold MTM adjustment 5 121 — — 126 Selling, general and administrative expenses 5 202 — — 207 Operating income (loss) Deferred taxes (1 ) (78 ) — — (79 ) Provision for (benefit from) income taxes Net of tax 4 124 — — 128 Net income (loss) Hedging instruments: Amortization of realized loss 2 — — — 2 Interest and debt expense Deferred taxes (1 ) — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — 1 Net income (loss) Equity income from subsidiaries 124 — — (124 ) — Equity income from subsidiaries Total reclassifications $ 129 $ 124 $ — $ (124 ) $ 129 Net income (loss) Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2014, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (21 ) $ — $ — $ (21 ) Cost of products sold Amortization of prior service cost — (18 ) — — (18 ) Selling, general and administrative expenses MTM adjustment — 205 — — 205 Cost of products sold MTM adjustment 10 236 1 — 247 Selling, general and administrative expenses 10 402 1 — 413 Operating income (loss) Deferred taxes (4 ) (158 ) — — (162 ) Provision for (benefit from) income taxes Net of tax 6 244 1 — 251 Net income (loss) Hedging instruments: Amortization of realized loss 2 — — — 2 Interest and debt expense Deferred taxes (1 ) — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — 1 Net income (loss) Equity income from subsidiaries 245 — — (245 ) — Equity income from subsidiaries Total reclassifications $ 252 $ 244 $ 1 $ (245 ) $ 252 Net income (loss) Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2016 Cash flows from (used in) operating activities $ (413 ) $ 3,162 $ (234 ) $ (1,235 ) $ 1,280 Cash flows from (used in) investing activities: Capital expenditures — (211 ) (7 ) 12 (206 ) Proceeds from settlement of investments — 266 — — 266 Proceeds from divestitures 5,015 — — — 5,015 Return of intercompany investments 2,274 26 — (2,300 ) — Contributions to intercompany investments (16 ) — — 16 — Other, net 193 24 — (214 ) 3 Net cash flows from (used in) investing activities 7,466 105 (7 ) (2,486 ) 5,078 Cash flows from (used in) financing activities: Dividends paid on common stock (2,369 ) (1,152 ) (28 ) 1,180 (2,369 ) Repurchase of common stock (226 ) — — — (226 ) Repayments of long-term debt (415 ) (85 ) — — (500 ) Early extinguishment of debt (3,642 ) (8 ) — — (3,650 ) Premiums paid for early extinguishment of debt (206 ) (1 ) — — (207 ) Proceeds from termination of interest rate swaps — 66 — — 66 Debt issuance costs and financing fees (8 ) — — — (8 ) Excess tax benefit on stock-based compensation plans 28 — — — 28 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (2,274 ) (26 ) 2,300 — Receipt of equity — — 16 (16 ) — Other, net (21 ) (360 ) 167 214 — Net cash flows from (used in) financing activities (6,902 ) (3,814 ) 129 3,721 (6,866 ) Effect of exchange rate changes on cash and cash equivalents — — (8 ) — (8 ) Net change in cash and cash equivalents 151 (547 ) (120 ) — (516 ) Cash and cash equivalents at beginning of year 575 1,544 448 — 2,567 Cash and cash equivalents at end of year $ 726 $ 997 $ 328 $ — $ 2,051 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2015 Cash flows from (used in) operating activities $ (2,279 ) $ 3,219 $ 6 $ (750 ) $ 196 Cash flows from (used in) investing activities: Capital expenditures — (160 ) (12 ) (2 ) (174 ) Proceeds from settlement of investments — 332 — — 332 Acquisition, net of cash acquired (18,278 ) 1,001 57 — (17,220 ) Proceeds from divestitures 7,056 — — — 7,056 Return of intercompany investments 185 — — (185 ) — Other, net 10 22 — (31 ) 1 Net cash flows from (used in) investing activities (11,027 ) 1,195 45 (218 ) (10,005 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,583 ) (709 ) — 709 (1,583 ) Repurchase of common stock (124 ) — — — (124 ) Proceeds from BAT Share Purchase 4,673 — — — 4,673 Issuance of long-term debt 8,975 — — — 8,975 Repayments of long-term debt (450 ) — — — (450 ) Debt issuance costs and financing fees (70 ) — — — (70 ) Borrowings under revolving credit facility 1,400 — — — 1,400 Repayments of borrowings under revolving credit facility (1,400 ) — — — (1,400 ) Excess tax benefit on stock-based compensation plans 17 — — — 17 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (185 ) — 185 — Other, net 2,384 (2,445 ) 30 31 — Net cash flows from (used in) financing activities 13,779 (3,339 ) 30 968 11,438 Effect of exchange rate changes on cash and cash equivalents — — (28 ) — (28 ) Net change in cash and cash equivalents 473 1,075 53 — 1,601 Cash and cash equivalents at beginning of year 102 469 395 — 966 Cash and cash equivalents at end of year $ 575 $ 1,544 $ 448 $ — $ 2,567 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Non- Issuer Guarantors Guarantors Eliminations Consolidated For the Year Ended December 31, 2014 Cash flows from (used in) operating activities $ 1,277 $ 1,865 $ (179 ) $ (1,340 ) $ 1,623 Cash flows from (used in) investing activities: Capital expenditures — (265 ) (94 ) 155 (204 ) Proceeds from termination of joint venture — — 35 — 35 Proceeds from settlement of investments — 4 — — 4 Return of intercompany investments 165 — — (165 ) — Contributions to intercompany investments (32 ) — — 32 — Other, net 250 35 126 (451 ) (40 ) Net cash flows from (used in) investing activities 383 (226 ) 67 (429 ) (205 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,411 ) (1,301 ) — 1,301 (1,411 ) Repurchase of common stock (440 ) — — — (440 ) Borrowings under revolving credit facility 1,000 — — — 1,000 Repayments of borrowings under revolving credit facility (1,000 ) — — — (1,000 ) Debt issuance costs and financing fees (79 ) — — — (79 ) Excess tax benefit on stock-based compensation plans 12 — — — 12 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (165 ) — 165 — Receipt of equity — — 32 (32 ) — Other, net (41 ) (400 ) 149 292 — Net cash flows from (used in) financing activities (2,002 ) (1,866 ) 181 1,769 (1,918 ) Effect of exchange rate changes on cash and cash equivalents — — (34 ) — (34 ) Net change in cash and cash equivalents (342 ) (227 ) 35 — (534 ) Cash and cash equivalents at beginning of year 444 696 360 — 1,500 Cash and cash equivalents at end of year $ 102 $ 469 $ 395 $ — $ 966 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated December 31, 2016 Assets Cash and cash equivalents $ 726 $ 997 $ 328 $ — $ 2,051 Accounts receivable — 62 4 — 66 Accounts receivable, related party — 113 — — 113 Other receivables 63 3,572 17 (3,642 ) 10 Inventories — 1,604 43 (2 ) 1,645 Other current assets 112 238 — 3 353 Total current assets 901 6,586 392 (3,641 ) 4,238 Property, plant and equipment, net 2 1,314 32 — 1,348 Trademarks and other intangible assets, net of accumulated amortization — 29,432 14 (2 ) 29,444 Goodwill — 15,976 16 — 15,992 Long-term intercompany notes receivable 1,390 148 — (1,538 ) — Investment in subsidiaries 36,865 333 — (37,198 ) — Other assets and deferred charges 80 52 37 (96 ) 73 Total assets $ 39,238 $ 53,841 $ 491 $ (42,475 ) $ 51,095 Liabilities and shareholders’ equity Accounts payable $ 1 $ 213 $ 7 $ — $ 221 Tobacco settlement accruals — 2,498 — — 2,498 Due to related party — 7 — — 7 Deferred revenue, related party — 66 — — 66 Current maturities of long-term debt 448 53 — — 501 Dividends payable on common stock 656 — — — 656 Other current liabilities 3,767 871 40 (3,642 ) 1,036 Total current liabilities 4,872 3,708 47 (3,642 ) 4,985 Long-term intercompany notes payable 148 900 490 (1,538 ) — Long-term debt (less current maturities) 12,404 260 — — 12,664 Long-term deferred income taxes, net — 9,700 — (93 ) 9,607 Long-term retirement benefits (less current portion) 59 1,767 43 — 1,869 Long-term deferred revenue, related party — 39 — — 39 Other noncurrent liabilities 44 176 — — 220 Shareholders’ equity 21,711 37,291 (89 ) (37,202 ) 21,711 Total liabilities and shareholders’ equity $ 39,238 $ 53,841 $ 491 $ (42,475 ) $ 51,095 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Non- Issuer Guarantors 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 Other current assets 116 323 129 (4 ) 564 Total current assets 761 7,269 718 (3,593 ) 5,155 Property, plant and equipment, net 3 1,223 29 — 1,255 Trademarks and other intangible assets, net of accumulated amortization — 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 189 212 38 (209 ) 230 Total assets $ 39,687 $ 54,978 $ 802 $ (43,367 ) $ 52,100 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 Long-term deferred income taxes, net — 9,410 — (206 ) 9,204 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 $ 54,978 $ 802 $ (43,367 ) $ 52,100 |
RJR Tobacco Guaranteed, Unsecur
RJR Tobacco Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements | Note 19 — RAI Guaranteed, Unsecured Notes — Condensed Consolidating Financial Statements The following condensed consolidating financial statements relate to the guaranties of RAI’s $12.7 billion aggregate principal amount of unsecured notes. See note 12 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, SFNTC, American Snuff Co. 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 Year Ended December 31, 2016 Net sales $ — $ 12,209 $ 198 $ (130 ) $ 12,277 Net sales, related party — 226 — — 226 Net sales — 12,435 198 (130 ) 12,503 Cost of products sold — 4,787 185 (131 ) 4,841 Selling, general and administrative expenses 41 1,721 167 2 1,931 Gain on divestitures — (4,843 ) (16 ) (2 ) (4,861 ) Amortization expense — 22 1 — 23 Operating income (loss) (41 ) 10,748 (139 ) 1 10,569 Interest and debt expense 619 81 9 (83 ) 626 Interest income (84 ) (6 ) (1 ) 83 (8 ) Other (income) expense, net 244 (30 ) 3 43 260 Income (loss) before income taxes (820 ) 10,703 (150 ) (42 ) 9,691 Provision for (benefit from) income taxes (171 ) 3,840 (51 ) — 3,618 Equity income from subsidiaries 6,722 4 — (6,726 ) — Net income (loss) $ 6,073 $ 6,867 $ (99 ) $ (6,768 ) $ 6,073 For the Year Ended December 31, 2015 Net sales $ — $ 10,319 $ 333 $ (236 ) $ 10,416 Net sales, related party — 259 — — 259 Net sales — 10,578 333 (236 ) 10,675 Cost of products sold — 4,673 248 (233 ) 4,688 Selling, general and administrative expenses 79 1,738 281 — 2,098 Gain on divestitures — (3,153 ) (28 ) — (3,181 ) Amortization expense — 18 — — 18 Asset impairment and exit charges — 99 — — 99 Operating income (loss) (79 ) 7,203 (168 ) (3 ) 6,953 Interest and debt expense 559 104 7 (100 ) 570 Interest income (100 ) (6 ) — 100 (6 ) Other (income) expense, net 20 (42 ) (16 ) 43 5 Income (loss) before income taxes (558 ) 7,147 (159 ) (46 ) 6,384 Provision for (benefit from) income taxes (224 ) 3,417 (62 ) — 3,131 Equity income from subsidiaries 3,587 46 — (3,633 ) — Net income (loss) $ 3,253 $ 3,776 $ (97 ) $ (3,679 ) $ 3,253 For the Year Ended December 31, 2014 Net sales $ — $ 8,109 $ 232 $ (181 ) $ 8,160 Net sales, related party — 311 — — 311 Net sales — 8,420 232 (181 ) 8,471 Cost of products sold — 4,002 235 (179 ) 4,058 Selling, general and administrative expenses 75 1,535 261 — 1,871 Amortization expense — 11 — — 11 Operating income (loss) (75 ) 2,872 (264 ) (2 ) 2,531 Interest and debt expense 286 79 6 (85 ) 286 Interest income (85 ) (3 ) — 85 (3 ) Other (income) expense, net 4 (44 ) (17 ) 43 (14 ) Income (loss) from continuing operations before income taxes (280 ) 2,840 (253 ) (45 ) 2,262 Provision for (benefit from) income taxes (89 ) 1,004 (98 ) — 817 Equity income from subsidiaries 1,661 26 — (1,687 ) — Income (loss) from continuing operations 1,470 1,862 (155 ) (1,732 ) 1,445 Income from discontinued operations, net of tax — 25 — — 25 Net income (loss) $ 1,470 $ 1,887 $ (155 ) $ (1,732 ) $ 1,470 Condensed Consolidating Statements of Comprehensive Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2016 Net income (loss) $ 6,073 $ 6,867 $ (99 ) $ (6,768 ) $ 6,073 Other comprehensive income (loss), net of tax: Retirement benefits (11 ) (12 ) (4 ) 16 (11 ) Long-term investments 14 14 — (14 ) 14 Hedging instruments 11 — — — 11 Cumulative translation adjustment and other 10 10 13 (23 ) 10 Comprehensive income (loss) $ 6,097 $ 6,879 $ (90 ) $ (6,789 ) $ 6,097 For the Year Ended December 31, 2015 Net income (loss) $ 3,253 $ 3,776 $ (97 ) $ (3,679 ) $ 3,253 Other comprehensive income (loss), net of tax: Retirement benefits 50 50 13 (63 ) 50 Hedging instruments 1 — — — 1 Cumulative translation adjustment and other (25 ) (27 ) (37 ) 64 (25 ) Comprehensive income (loss) $ 3,279 $ 3,799 $ (121 ) $ (3,678 ) $ 3,279 For the Year Ended December 31, 2014 Net income (loss) $ 1,470 $ 1,887 $ (155 ) $ (1,732 ) $ 1,470 Other comprehensive income (loss), net of tax: Retirement benefits (277 ) (271 ) (1 ) 272 (277 ) Long-term investments 2 2 — (2 ) 2 Hedging instruments 1 — — — 1 Cumulative translation adjustment and other (34 ) (34 ) (48 ) 82 (34 ) Comprehensive income (loss) $ 1,162 $ 1,584 $ (204 ) $ (1,380 ) $ 1,162 Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2016, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ — $ (20 ) Cost of products sold Amortization of prior service cost — (19 ) — — (19 ) Selling, general and administrative expenses Settlement cost — 2 — — 2 Selling, general and administrative expenses MTM adjustment — 21 — — 21 Cost of products sold MTM adjustment 4 26 (6 ) — 24 Selling, general and administrative expenses 4 10 (6 ) — 8 Operating income (loss) Deferred taxes — (1 ) — — (1 ) Provision for (benefit from) income taxes Net of tax 4 9 (6 ) — 7 Net income (loss) Long-term investments: Realized loss, net on long-term investments — 24 — — 24 Other (income) expense, net Deferred taxes — (10 ) — — (10 ) Provision for (benefit from) income taxes Net of tax — 14 — — 14 Net income (loss) Hedging instruments: Forward starting interest rate contracts 16 — — — 16 Other (income) expense, net Amortization of realized loss 1 — — — 1 Interest and debt expense Deferred taxes (6 ) — — — (6 ) Provision for (benefit from) income taxes Net of tax 11 — — — 11 Net income (loss) Cumulative translation adjustment and other: Derecognition of cumulative translation adjustment — — 27 — 27 Gain on divestitures Equity income from subsidiaries 44 21 — (65 ) — Equity income from subsidiaries Total reclassifications $ 59 $ 44 $ 21 $ (65 ) $ 59 Net income (loss) Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2015, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ — $ (20 ) Cost of products sold Amortization of prior service cost — (19 ) — — (19 ) Selling, general and administrative expenses MTM adjustment — 120 — — 120 Cost of products sold MTM adjustment 5 121 — — 126 Selling, general and administrative expenses 5 202 — — 207 Operating income (loss) Deferred taxes (1 ) (78 ) — — (79 ) Provision for (benefit from) income taxes Net of tax 4 124 — — 128 Net income (loss) Hedging instruments: Amortization of realized loss 2 — — — 2 Interest and debt expense Deferred taxes (1 ) — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — 1 Net income (loss) Equity income from subsidiaries 124 — — (124 ) — Equity income from subsidiaries Total reclassifications $ 129 $ 124 $ — $ (124 ) $ 129 Net income (loss) Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2014, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (21 ) $ — $ — $ (21 ) Cost of products sold Amortization of prior service cost — (18 ) — — (18 ) Selling, general and administrative expenses MTM adjustment — 205 — — 205 Cost of products sold MTM adjustment 10 236 1 — 247 Selling, general and administrative expenses 10 402 1 — 413 Operating income (loss) Deferred taxes (4 ) (158 ) — — (162 ) Provision for (benefit from) income taxes Net of tax 6 244 1 — 251 Net income (loss) Hedging instruments: Amortization of realized loss 2 — — — 2 Interest and debt expense Deferred taxes (1 ) — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — 1 Net income (loss) Equity income from subsidiaries 245 — — (245 ) — Equity income from subsidiaries Total reclassifications $ 252 $ 244 $ 1 $ (245 ) $ 252 Net income (loss) Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2016 Cash flows from (used in) operating activities $ (413 ) $ 3,162 $ (234 ) $ (1,235 ) $ 1,280 Cash flows from (used in) investing activities: Capital expenditures — (211 ) (7 ) 12 (206 ) Proceeds from settlement of investments — 266 — — 266 Proceeds from divestitures 5,015 — — — 5,015 Return of intercompany investments 2,274 26 — (2,300 ) — Contributions to intercompany investments (16 ) — — 16 — Other, net 193 24 — (214 ) 3 Net cash flows from (used in) investing activities 7,466 105 (7 ) (2,486 ) 5,078 Cash flows from (used in) financing activities: Dividends paid on common stock (2,369 ) (1,152 ) (28 ) 1,180 (2,369 ) Repurchase of common stock (226 ) — — — (226 ) Repayments of long-term debt (415 ) (85 ) — — (500 ) Early extinguishment of debt (3,642 ) (8 ) — — (3,650 ) Premiums paid for early extinguishment of debt (206 ) (1 ) — — (207 ) Proceeds from termination of interest rate swaps — 66 — — 66 Debt issuance costs and financing fees (8 ) — — — (8 ) Excess tax benefit on stock-based compensation plans 28 — — — 28 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (2,274 ) (26 ) 2,300 — Receipt of equity — — 16 (16 ) — Other, net (21 ) (360 ) 167 214 — Net cash flows from (used in) financing activities (6,902 ) (3,814 ) 129 3,721 (6,866 ) Effect of exchange rate changes on cash and cash equivalents — — (8 ) — (8 ) Net change in cash and cash equivalents 151 (547 ) (120 ) — (516 ) Cash and cash equivalents at beginning of year 575 1,544 448 — 2,567 Cash and cash equivalents at end of year $ 726 $ 997 $ 328 $ — $ 2,051 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2015 Cash flows from (used in) operating activities $ (2,279 ) $ 3,219 $ 6 $ (750 ) $ 196 Cash flows from (used in) investing activities: Capital expenditures — (160 ) (12 ) (2 ) (174 ) Proceeds from settlement of investments — 332 — — 332 Acquisition, net of cash acquired (18,278 ) 1,001 57 — (17,220 ) Proceeds from divestitures 7,056 — — — 7,056 Return of intercompany investments 185 — — (185 ) — Other, net 10 22 — (31 ) 1 Net cash flows from (used in) investing activities (11,027 ) 1,195 45 (218 ) (10,005 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,583 ) (709 ) — 709 (1,583 ) Repurchase of common stock (124 ) — — — (124 ) Proceeds from BAT Share Purchase 4,673 — — — 4,673 Issuance of long-term debt 8,975 — — — 8,975 Repayments of long-term debt (450 ) — — — (450 ) Debt issuance costs and financing fees (70 ) — — — (70 ) Borrowings under revolving credit facility 1,400 — — — 1,400 Repayments of borrowings under revolving credit facility (1,400 ) — — — (1,400 ) Excess tax benefit on stock-based compensation plans 17 — — — 17 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (185 ) — 185 — Other, net 2,384 (2,445 ) 30 31 — Net cash flows from (used in) financing activities 13,779 (3,339 ) 30 968 11,438 Effect of exchange rate changes on cash and cash equivalents — — (28 ) — (28 ) Net change in cash and cash equivalents 473 1,075 53 — 1,601 Cash and cash equivalents at beginning of year 102 469 395 — 966 Cash and cash equivalents at end of year $ 575 $ 1,544 $ 448 $ — $ 2,567 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Non- Issuer Guarantors Guarantors Eliminations Consolidated For the Year Ended December 31, 2014 Cash flows from (used in) operating activities $ 1,277 $ 1,865 $ (179 ) $ (1,340 ) $ 1,623 Cash flows from (used in) investing activities: Capital expenditures — (265 ) (94 ) 155 (204 ) Proceeds from termination of joint venture — — 35 — 35 Proceeds from settlement of investments — 4 — — 4 Return of intercompany investments 165 — — (165 ) — Contributions to intercompany investments (32 ) — — 32 — Other, net 250 35 126 (451 ) (40 ) Net cash flows from (used in) investing activities 383 (226 ) 67 (429 ) (205 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,411 ) (1,301 ) — 1,301 (1,411 ) Repurchase of common stock (440 ) — — — (440 ) Borrowings under revolving credit facility 1,000 — — — 1,000 Repayments of borrowings under revolving credit facility (1,000 ) — — — (1,000 ) Debt issuance costs and financing fees (79 ) — — — (79 ) Excess tax benefit on stock-based compensation plans 12 — — — 12 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (165 ) — 165 — Receipt of equity — — 32 (32 ) — Other, net (41 ) (400 ) 149 292 — Net cash flows from (used in) financing activities (2,002 ) (1,866 ) 181 1,769 (1,918 ) Effect of exchange rate changes on cash and cash equivalents — — (34 ) — (34 ) Net change in cash and cash equivalents (342 ) (227 ) 35 — (534 ) Cash and cash equivalents at beginning of year 444 696 360 — 1,500 Cash and cash equivalents at end of year $ 102 $ 469 $ 395 $ — $ 966 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated December 31, 2016 Assets Cash and cash equivalents $ 726 $ 997 $ 328 $ — $ 2,051 Accounts receivable — 62 4 — 66 Accounts receivable, related party — 113 — — 113 Other receivables 63 3,572 17 (3,642 ) 10 Inventories — 1,604 43 (2 ) 1,645 Other current assets 112 238 — 3 353 Total current assets 901 6,586 392 (3,641 ) 4,238 Property, plant and equipment, net 2 1,314 32 — 1,348 Trademarks and other intangible assets, net of accumulated amortization — 29,432 14 (2 ) 29,444 Goodwill — 15,976 16 — 15,992 Long-term intercompany notes receivable 1,390 148 — (1,538 ) — Investment in subsidiaries 36,865 333 — (37,198 ) — Other assets and deferred charges 80 52 37 (96 ) 73 Total assets $ 39,238 $ 53,841 $ 491 $ (42,475 ) $ 51,095 Liabilities and shareholders’ equity Accounts payable $ 1 $ 213 $ 7 $ — $ 221 Tobacco settlement accruals — 2,498 — — 2,498 Due to related party — 7 — — 7 Deferred revenue, related party — 66 — — 66 Current maturities of long-term debt 448 53 — — 501 Dividends payable on common stock 656 — — — 656 Other current liabilities 3,767 871 40 (3,642 ) 1,036 Total current liabilities 4,872 3,708 47 (3,642 ) 4,985 Long-term intercompany notes payable 148 900 490 (1,538 ) — Long-term debt (less current maturities) 12,404 260 — — 12,664 Long-term deferred income taxes, net — 9,700 — (93 ) 9,607 Long-term retirement benefits (less current portion) 59 1,767 43 — 1,869 Long-term deferred revenue, related party — 39 — — 39 Other noncurrent liabilities 44 176 — — 220 Shareholders’ equity 21,711 37,291 (89 ) (37,202 ) 21,711 Total liabilities and shareholders’ equity $ 39,238 $ 53,841 $ 491 $ (42,475 ) $ 51,095 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Non- Issuer Guarantors 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 Other current assets 116 323 129 (4 ) 564 Total current assets 761 7,269 718 (3,593 ) 5,155 Property, plant and equipment, net 3 1,223 29 — 1,255 Trademarks and other intangible assets, net of accumulated amortization — 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 189 212 38 (209 ) 230 Total assets $ 39,687 $ 54,978 $ 802 $ (43,367 ) $ 52,100 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 Long-term deferred income taxes, net — 9,410 — (206 ) 9,204 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 $ 54,978 $ 802 $ (43,367 ) $ 52,100 |
RJR Tobacco | |
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements | Note 20 — RJR Tobacco Guaranteed, Unsecured Notes — Condensed Consolidating Financial Statements The following condensed consolidating financial statements relate to the guaranties of RJR Tobacco’s $284 million aggregate principal amount of unsecured notes, representing the Lorillard Tobacco Notes assumed by RJR Tobacco in connection with the Lorillard Tobacco Merger. 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 Year Ended December 31, 2016 Net sales $ — $ 10,365 $ — $ 2,229 $ (317 ) $ 12,277 Net sales, related party — 226 — — — 226 Net sales — 10,591 — 2,229 (317 ) 12,503 Cost of products sold — 4,323 — 837 (319 ) 4,841 Selling, general and administrative expenses, net 41 2,719 2 (834 ) 3 1,931 Gain on divestitures — — — (4,861 ) — (4,861 ) Amortization expense — 16 — 7 — 23 Operating income (loss) (41 ) 3,533 (2 ) 7,080 (1 ) 10,569 Interest and debt expense 619 7 — 86 (86 ) 626 Interest income (84 ) (5 ) (3 ) (2 ) 86 (8 ) Other (income) expense, net 244 12 (42 ) 3 43 260 Income (loss) before income taxes (820 ) 3,519 43 6,993 (44 ) 9,691 Provision for (benefit from) income taxes (171 ) 1,247 (1 ) 2,543 — 3,618 Equity income from subsidiaries 6,722 850 3,142 — (10,714 ) — Net income $ 6,073 $ 3,122 $ 3,186 $ 4,450 $ (10,758 ) $ 6,073 For the Year Ended December 31, 2015 Net sales $ — $ 8,714 $ — $ 2,039 $ (337 ) $ 10,416 Net sales, related party — 259 — — — 259 Net sales — 8,973 — 2,039 (337 ) 10,675 Cost of products sold — 4,277 — 746 (335 ) 4,688 Selling, general and administrative expenses, net 79 2,318 3 (302 ) — 2,098 (Gain) loss on divestitures — 1,887 — (5,068 ) — (3,181 ) Amortization expense — 12 — 6 — 18 Asset impairment and exit charges — 99 — — — 99 Operating income (loss) (79 ) 380 (3 ) 6,657 (2 ) 6,953 Interest and debt expense 559 20 — 94 (103 ) 570 Interest income (100 ) (5 ) (4 ) — 103 (6 ) Other (income) expense, net 20 2 (43 ) (17 ) 43 5 Income (loss) before income taxes (558 ) 363 44 6,580 (45 ) 6,384 Provision for (benefit from) income taxes (224 ) 928 — 2,427 — 3,131 Equity income from subsidiaries 3,587 3,732 3,185 — (10,504 ) — Net income $ 3,253 $ 3,167 $ 3,229 $ 4,153 $ (10,549 ) $ 3,253 For the Year Ended December 31, 2014 Net sales $ — $ 6,728 $ — $ 1,701 $ (269 ) $ 8,160 Net sales, related party — 311 — — — 311 Net sales — 7,039 — 1,701 (269 ) 8,471 Cost of products sold — 3,641 — 686 (269 ) 4,058 Selling, general and administrative expenses 75 1,629 6 161 — 1,871 Amortization expense — 4 — 7 — 11 Operating income (loss) (75 ) 1,765 (6 ) 847 — 2,531 Interest and debt expense 286 21 — 67 (88 ) 286 Interest income (85 ) (2 ) (3 ) (1 ) 88 (3 ) Other (income) expense, net 4 1 (45 ) (17 ) 43 (14 ) Income (loss) from continuing operations before income taxes (280 ) 1,745 42 798 (43 ) 2,262 Provision for (benefit from) income taxes (89 ) 627 (1 ) 280 — 817 Equity income from subsidiaries 1,661 279 1,425 — (3,365 ) — Net income from continuing operations 1,470 1,397 1,468 518 (3,408 ) 1,445 Income from discontinued operations, net of tax — 25 — — — 25 Net income $ 1,470 $ 1,422 $ 1,468 $ 518 $ (3,408 ) $ 1,470 Condensed Consolidating Statements of Comprehensive Income (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2016 Net income $ 6,073 $ 3,122 $ 3,186 $ 4,450 $ (10,758 ) $ 6,073 Other comprehensive income (loss), net of tax: Retirement benefits (11 ) (6 ) (10 ) (5 ) 21 (11 ) Long-term investments 14 14 14 — (28 ) 14 Hedging instruments 11 — — — — 11 Cumulative translation adjustment and other 10 7 10 10 (27 ) 10 Comprehensive income $ 6,097 $ 3,137 $ 3,200 $ 4,455 $ (10,792 ) $ 6,097 For the Year Ended December 31, 2015 Net income $ 3,253 $ 3,167 $ 3,229 $ 4,153 $ (10,549 ) $ 3,253 Other comprehensive income (loss), net of tax: Retirement benefits 50 39 51 12 (102 ) 50 Hedging instruments 1 — — — — 1 Cumulative translation adjustment and other (25 ) (25 ) (25 ) (26 ) 76 (25 ) Comprehensive income $ 3,279 $ 3,181 $ 3,255 $ 4,139 $ (10,575 ) $ 3,279 For the Year Ended December 31, 2014 Net income $ 1,470 $ 1,422 $ 1,468 $ 518 $ (3,408 ) $ 1,470 Other comprehensive income (loss), net of tax: Retirement benefits (277 ) (259 ) (261 ) (11 ) 531 (277 ) Long-term investments 2 2 2 — (4 ) 2 Hedging instruments 1 — — — — 1 Cumulative translation adjustment and other (34 ) (32 ) (32 ) (33 ) 97 (34 ) Comprehensive income $ 1,162 $ 1,133 $ 1,177 $ 474 $ (2,784 ) $ 1,162 Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the condensed consolidating statement of income for the year ended December 31, 2016, were as follows: Components Amounts Reclassified Affected Line Item Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ — $ — $ (20 ) Cost of products sold Amortization of prior service cost — (19 ) — — — (19 ) Selling, general and administrative expenses, net Settlement cost — 2 — — — 2 Selling, general and administrative expenses, net MTM adjustment — 21 — — — 21 Cost of products sold MTM adjustment 4 21 2 (3 ) — 24 Selling, general and administrative expenses, net 4 5 2 (3 ) — 8 Operating income (loss) Deferred taxes — (1 ) — — — (1 ) Provision for (benefit from) income taxes Net of tax 4 4 2 (3 ) — 7 Net income Long-term investments: Realized loss, net on long-term investments — 24 — — — 24 Other (income) expense, net Deferred taxes — (10 ) — — — (10 ) Provision for (benefit from) income taxes Net of tax — 14 — — — 14 Net income Hedging instruments: Forward starting interest rate contracts 16 — — — — 16 Other (income) expense, net Amortization of realized loss 1 — — — — 1 Interest and debt expense Deferred taxes (6 ) — — — — (6 ) Provision for (benefit from) income taxes Net of tax 11 — — — — 11 Net income Cumulative translation adjustment and other: Derecognition of cumulative translation adjustment — — — 27 — 27 Gain on divestitures Equity income from subsidiaries 44 27 39 — (110 ) — Equity income from subsidiaries Total reclassifications $ 59 $ 45 $ 41 $ 24 $ (110 ) $ 59 Net income Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the condensed consolidating statement of income for the year ended December 31, 2015, were as follows: Components Amounts Reclassified Affected Line Item Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (19 ) $ — $ (1 ) $ — $ (20 ) Cost of products sold Amortization of prior service cost — (17 ) (1 ) (1 ) — (19 ) Selling, general and administrative expenses, net MTM adjustment — 119 — 1 — 120 Cost of products sold MTM adjustment 5 110 3 8 — 126 Selling, general and administrative expenses, net 5 193 2 7 — 207 Operating income (loss) Deferred taxes (1 ) (74 ) (1 ) (3 ) — (79 ) Provision for (benefit from) income taxes Net of tax 4 119 1 4 — 128 Net income Hedging instruments: Amortization of realized loss 2 — — — — 2 Interest and debt expense Deferred taxes (1 ) — — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — — 1 Net income Equity income from subsidiaries 124 — 118 — (242 ) — Equity income from subsidiaries Total reclassifications $ 129 $ 119 $ 119 $ 4 $ (242 ) $ 129 Net income Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the condensed consolidating statement of income for the year ended December 31, 2014, were as follows: Components Amounts Reclassified Affected Line Item Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ (1 ) $ — $ (21 ) Cost of products sold Amortization of prior service cost — (17 ) — (1 ) — (18 ) Selling, general and administrative expenses MTM adjustment — 195 — 10 — 205 Cost of products sold MTM adjustment 10 228 4 5 — 247 Selling, general and administrative expenses 10 386 4 13 — 413 Other (income) expense, net Deferred taxes (4 ) (152 ) (1 ) (5 ) — (162 ) Provision for (benefit from) income taxes Net of tax 6 234 3 8 — 251 Net income Hedging instruments: Amortization of realized loss 2 — — — — 2 Interest and debt expense Deferred taxes (1 ) — — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — — 1 Net income Equity income from subsidiaries 245 — 234 — (479 ) — Equity income from subsidiaries Total reclassifications $ 252 $ 234 $ 237 $ 8 $ (479 ) $ 252 Net income Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2016 Cash flows from (used in) operating activities $ (413 ) $ 2,462 $ 1,918 $ 827 $ (3,514 ) $ 1,280 Cash flows from (used in) investing activities: Capital expenditures — (143 ) — (75 ) 12 (206 ) Proceeds from settlement of investments — 266 — — — 266 Proceeds from divestitures 5,015 — — — — 5,015 Return of intercompany investments 2,274 508 1,473 — (4,255 ) — Contributions to intercompany investments (16 ) — — — 16 — Other, net 193 3 17 21 (231 ) 3 Net cash flows from (used in) from investing activities 7,466 634 1,490 (54 ) (4,458 ) 5,078 Cash flows from (used in) financing activities: Dividends paid on common stock (2,369 ) (1,752 ) (1,152 ) (555 ) 3,459 (2,369 ) Repurchase of common stock (226 ) — — — — (226 ) Repayments of long-term debt (415 ) (85 ) — — — (500 ) Early extinguishment of debt (3,642 ) (8 ) — — — (3,650 ) Premiums paid for early extinguishment of debt (206 ) (1 ) — — — (207 ) Proceeds from termination of interest rate swaps — 66 — — — 66 Debt issuance costs and financing fees (8 ) — — — — (8 ) Excess tax benefit on stock-based compensation plans 28 — — — — 28 Dividends paid on preferred stock (43 ) — — — 43 — Distribution of equity — (1,455 ) (2,274 ) (526 ) 4,255 — Receipt of equity — — — 16 (16 ) — Other, net (21 ) — — (210 ) 231 — Net cash flows used in financing activities (6,902 ) (3,235 ) (3,426 ) (1,275 ) 7,972 (6,866 ) Effect of exchange rate changes on cash and cash equivalents — — — (8 ) — (8 ) Net change in cash and cash equivalents 151 (139 ) (18 ) (510 ) — (516 ) Cash and cash equivalents at beginning of period 575 809 19 1,164 — 2,567 Cash and cash equivalents at end of period $ 726 $ 670 $ 1 $ 654 $ — $ 2,051 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2015 Cash flows from (used in) operating activities $ (2,279 ) $ 2,924 $ 549 $ 422 $ (1,420 ) $ 196 Cash flows from (used in) investing activities: Capital expenditures — (99 ) — (73 ) (2 ) (174 ) Proceeds from settlement of investments — 332 — — — 332 Acquisition, net of cash acquired (18,278 ) 523 — 535 — (17,220 ) Proceeds from divestitures 7,056 — — — — 7,056 Return of intercompany investments 185 11 344 — (540 ) — Other, net 10 1 17 21 (48 ) 1 Net cash flows from (used in) investing activities (11,027 ) 768 361 483 (590 ) (10,005 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,583 ) (461 ) (709 ) (209 ) 1,379 (1,583 ) Repurchase of common stock (124 ) — — — — (124 ) Proceeds from BAT Share Purchase 4,673 — — — — 4,673 Issuance of long-term debt 8,975 — — — — 8,975 Repayments of long-term debt (450 ) — — — — (450 ) Debt issuance costs and financing fees (70 ) — — — — (70 ) Borrowings under revolving credit facility 1,400 — — — — 1,400 Repayments of borrowings under revolving credit facility (1,400 ) — — — — (1,400 ) Excess tax benefit on stock-based compensation plans 17 — — — — 17 Dividends paid on preferred stock (43 ) — — — 43 — Distribution of equity — (344 ) (185 ) (11 ) 540 — Other, net 2,384 (2,405 ) — (27 ) 48 — Net cash flows from (used in) financing activities 13,779 (3,210 ) (894 ) (247 ) 2,010 11,438 Effect of exchange rate changes on cash and cash equivalents — — — (28 ) — (28 ) Net change in cash and cash equivalents 473 482 16 630 — 1,601 Cash and cash equivalents at beginning of period 102 327 3 534 — 966 Cash and cash equivalents at end of period $ 575 $ 809 $ 19 $ 1,164 $ — $ 2,567 For the Year Ended December 31, 2014 Cash flows from operating activities $ 1,277 $ 1,364 $ 1,424 $ 524 $ (2,966 ) $ 1,623 Cash flows from (used in) investing activities: Capital expenditures — (232 ) — (127 ) 155 (204 ) Proceeds from settlement of investments — 2 2 — — 4 Proceeds from termination of joint venture — — — 35 — 35 Return of intercompany investments 165 105 21 — (291 ) — Contribution to intercompany investments (32 ) — — — 32 — Other, net 250 (8 ) 19 187 (488 ) (40 ) Net cash flows from (used in) investing activities 383 (133 ) 42 95 (592 ) (205 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,411 ) (1,377 ) (1,301 ) (250 ) 2,928 (1,411 ) Repurchase of common stock (440 ) — — — — (440 ) Borrowings under revolving credit facility 1,000 — — — — 1,000 Repayments of borrowings under revolving credit facility (1,000 ) — — — — (1,000 ) Debt issuance costs and financing fees (79 ) — — — — (79 ) Excess tax benefit on stock-based compensation plans 12 — — — — 12 Dividends paid on preferred stock (43 ) — — — 43 — Distribution of equity — (21 ) (165 ) (105 ) 291 — Receipt of equity — — — 32 (32 ) — Other, net (41 ) (20 ) — (267 ) 328 — Net cash flows used in financing activities (2,002 ) (1,418 ) (1,466 ) (590 ) 3,558 (1,918 ) Effect of exchange rate changes on cash and cash equivalents — — — (34 ) — (34 ) Net change in cash and cash equivalents (342 ) (187 ) — (5 ) — (534 ) Cash and cash equivalents at beginning of period 444 514 3 539 — 1,500 Cash and cash equivalents at end of period $ 102 $ 327 $ 3 $ 534 $ — $ 966 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated December 31, 2016 Assets Cash and cash equivalents $ 726 $ 670 $ 1 $ 654 $ — $ 2,051 Accounts receivable — 27 — 39 — 66 Accounts receivable, related party — 113 — — — 113 Other receivables 63 5 38 4,828 (4,924 ) 10 Inventories — 812 — 835 (2 ) 1,645 Other current assets 112 195 — 43 3 353 Total current assets 901 1,822 39 6,399 (4,923 ) 4,238 Property, plant and equipment, net 2 855 — 491 — 1,348 Trademarks and other intangible assets, net of accumulated amortization — 317 — 29,129 (2 ) 29,444 Goodwill — 3,453 9,853 2,686 — 15,992 Long-term intercompany notes receivable 1,390 — 73 148 (1,611 ) — Investment in subsidiaries 36,865 22,954 23,938 — (83,757 ) — Other assets and deferred charges 80 1,204 11 13 (1,235 ) 73 Total assets $ 39,238 $ 30,605 $ 33,914 $ 38,866 $ (91,528 ) $ 51,095 Liabilities and shareholders’ equity Accounts payable $ 1 $ 190 $ — $ 30 $ — $ 221 Tobacco settlement accruals — 2,326 — 172 — 2,498 Due to related party — 7 — — — 7 Deferred revenue, related party — 66 — — — 66 Current maturities of long-term debt 448 53 — — — 501 Dividends payable on common stock 656 — — — — 656 Other current liabilities 3,767 1,923 2 268 (4,924 ) 1,036 Total current liabilities 4,872 4,565 2 470 (4,924 ) 4,985 Long-term intercompany notes payable 148 — — 1,463 (1,611 ) — Long-term debt (less current maturities) 12,404 260 — — — 12,664 Long-term deferred income taxes, net — — — 10,839 (1,232 ) 9,607 Long-term retirement benefits (less current portion) 59 1,651 28 131 — 1,869 Long-term deferred revenue, related party — 39 — — — 39 Other noncurrent liabilities 44 153 — 23 — 220 Shareholders’ equity 21,711 23,937 33,884 25,940 (83,761 ) 21,711 Total liabilities and shareholders’ equity $ 39,238 $ 30,605 $ 33,914 $ 38,866 $ (91,528 ) $ 51,095 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 Other current assets 116 236 — 212 — 564 Total current assets 761 2,251 36 7,083 (4,976 ) 5,155 Property, plant and equipment, net 3 792 — 460 — 1,255 Trademarks and other intangible assets, net of accumulated amortization — 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 189 1,711 14 9 (1,693 ) 230 Total assets $ 39,687 $ 31,752 $ 34,269 $ 39,529 $ (93,137 ) $ 52,100 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 Long-term deferred income taxes, net — 1 — 10,892 (1,689 ) 9,204 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 $ 39,529 $ (93,137 ) $ 52,100 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Note 21 — Quarterly Results of Operations (Unaudited) First Second Third Fourth 2016 Net sales $ 2,917 $ 3,195 $ 3,205 $ 3,186 Gross profit (1) 1,752 1,920 2,016 1,974 Net income (1)(2) 3,565 796 861 851 Per share data (3) Basic: Net income 2.50 0.56 0.60 0.60 Diluted: Net income 2.49 0.56 0.60 0.60 2015 Net sales $ 2,057 $ 2,403 $ 3,161 $ 3,054 Gross profit (4) 1,207 1,319 1,757 1,704 Net income (4)(5) 389 1,928 657 279 Per share data (3) Basic: Net income 0.36 1.70 0.46 0.20 Diluted: Net income 0.36 1.69 0.46 0.19 (1) Includes NPM Adjustment credits of $91 million in the first quarter of 2016, $98 million in the second quarter of 2016, $104 million in the third quarter of 2016 and $97 million in the fourth quarter of 2016, see “— Cost of Products Sold” in note 1. The fourth quarter of 2016 includes an MTM adjustment of $21 million. (2) First quarter of 2016 reflects the impact of the sale of the international rights to the NATURAL AMERICAN SPIRIT brand. Fourth quarter of 2016 includes an additional MTM adjustment expense of $24 million for a total of $45 million. (3) Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the quarters may not equal the total for the year. (4) Includes NPM Adjustment credits of $66 million in the first quarter of 2015, $69 million in the second quarter of 2015, $76 million in the third quarter of 2015 and $86 million in the fourth quarter of 2015, see “— Cost of Products Sold” in note 1. The fourth quarter of 2015 includes an MTM adjustment expense of $120 million. (5) Second quarter of 2015 reflects the impact of the Lorillard Merger and Divestiture. Fourth quarter of 2015 includes an additional MTM adjustment expense of $126 million for a total of $246 million. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 22 — Subsequent Event Proposed Merger with BAT On January 16, 2017, RAI, BAT, a subsidiary of BAT, and Merger Sub entered into the Merger Agreement pursuant to which, subject to the satisfaction or waiver of certain conditions, Merger Sub will merge with and into RAI, referred to as the BAT Merger, with RAI surviving as a wholly owned subsidiary of BAT. The BAT Merger has been approved by the independent directors of RAI who formed a transaction committee to negotiate with BAT, given BAT’s existing ownership stake in RAI and representation on RAI’s Board, and by the Boards of Directors of both companies. At the effective time of the BAT Merger, each share of RAI common stock (other than any shares of RAI common stock owned by BAT or any of its subsidiaries and by shareholders of RAI who have properly asserted and not lost or effectively withdrawn appraisal rights) will be converted into the right to receive 0.5260 of a BAT American Depositary Share and $29.44 in cash, without interest, and subject to adjustment to prevent dilution. The BAT Merger is subject to customary closing conditions, including RAI and BAT shareholder approvals, including the approval of the BAT Merger by a majority of the shares of RAI common stock not owned, directly or indirectly, by BAT or its subsidiaries or any of RAI’s subsidiaries, and regulatory approvals. The Merger Agreement contains certain other termination rights for each of RAI and BAT, including the right of each party to terminate the Merger Agreement if the BAT Merger has not been completed on or before December 31, 2017, subject to an extension of five business days if, on December 31, 2017, BAT has not completed all or any portion of the financing it needs to fund the BAT Merger and the transactions contemplated by the Merger Agreement. Financing, however, is not a condition to the closing of the BAT Merger. Under certain circumstances, if the Merger Agreement is terminated, the terminating party must pay the non-terminating party a termination fee of $1 billion. In the event that the Merger Agreement is terminated due to an inability to obtain unconditional approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, or any other antitrust laws, RAI will be entitled to receive a termination fee of $500 million from BAT. The BAT Merger is currently expected to close in the third quarter of 2017. Each of RAI and BAT has made representations and warranties in the Merger Agreement. RAI and BAT each also have agreed to various covenants and agreements, including, among other things, to conduct their respective businesses in the ordinary course in all material respects during the period between the execution of the Merger Agreement and completion of the BAT Merger and not to engage in certain transactions during this period. |
Business and Summary of Signi33
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 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 of the primary operations of R. J. Reynolds Tobacco Company. The Santa Fe segment consists of the primary 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 business in the United States. |
Basis of Presentation | Basis of Presentation The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as GAAP, requires estimates and assumptions to be made that affect the reported amounts in the consolidated financial statements and accompanying notes. Volatile credit and equity markets, changes to regulatory and legal environments, and consumer spending may affect the uncertainty inherent in such estimates and assumptions. Actual results could materially differ from those estimates. All material intercompany balances have been eliminated. Certain reclassifications were made to conform prior years’ financial statements to the current presentation. Certain amounts presented in note 13 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 13 and as otherwise noted. |
Business Combination | Business Combination RAI accounts for business combination transactions in accordance with the Financial Accounting Standards Board, referred to as the FASB, Accounting Standards Codification 805, Business Combinations The fair value of acquired intangible assets measured on a nonrecurring basis, was determined based on inputs that are unobservable and significant to the overall fair value measurement. As such, acquired intangible assets are classified as Level 3. RAI engaged the services of a third party valuation expert to assist in determining the fair value of acquired trademarks and customer lists. The acquired trademarks and customer lists were valued utilizing the income approach and were based on a discounted cash flow valuation model. This approach utilized unobservable factors, such as royalty rate, projected revenues and a discount rate, applied to the estimated cash flows. The determination of the discount rate was based on a cost of equity model, using a risk-free rate, adjusted by a stock beta-adjusted risk premium and size premium. The fair value of acquired long-term debt was determined based on significant inputs that are observable either directly or indirectly, and are quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. As such, acquired long-term debt is classified as Level 2. RAI engaged the services of a financial institution in determining the fair value of acquired long-term debt. The acquired long-term debt was valued utilizing market quotes, credit spreads and discounted cash flows, as appropriate. RAI performed its own independent valuation to assess the reasonableness of that calculated by the financial institution. As a market participant, RAI determined the fair value of inventories and property, plant and equipment utilizing internal resources and external experts. The fair value of finished goods inventories was determined using selling price less estimated costs to dispose. The fair value of other inventories, primarily leaf tobacco acquired, was based on recent costs for similar inventory purchased by RAI and its subsidiaries or historical cost as appropriate. To fair value property, plant and equipment, which consisted primarily of machinery used in the manufacture of cigarettes, RAI utilized internal engineering resources and external vendor experts familiar with pricing for similar machinery on the secondary market. The fair value of long-term retirement benefits represents the funded status of the employee benefit plans assumed by RAI in the Lorillard Merger. RAI engaged its actuaries to determine the fair value of the projected benefit obligations at the date of the Lorillard Merger utilizing management’s assumptions and estimates relative to the benefit plans acquired. For the fair value of benefit plan assets, an independent valuation expert was engaged, in addition to internal treasury resources, to project the fair value of the benefit plan assets at the Lorillard Merger date. For further information related to accounting for the Lorillard Merger and Divestiture, see note 2. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable. Cash equivalents may include money market funds, commercial paper and time deposits in major institutions to minimize investment risk. As short-term, highly liquid investments readily convertible to known amounts of cash, with remaining maturities of three months or less at the time of purchase, cash equivalents have carrying values that approximate fair values. |
Fair Value Measurement | Fair Value Measurement RAI determines the fair value of assets and liabilities 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 sponsors a number of non-contributory defined benefit pension plans covering certain employees of RAI and its subsidiaries, and holds investments in plan assets to support these obligations. For additional information regarding the fair value of these plan assets, see note 16. |
Inventories | Inventories Inventories are stated at the lower of cost or market. The cost of RJR Tobacco’s leaf tobacco inventories is determined principally under the last-in, first-out, or LIFO, method and is calculated at the end of each year. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead and full absorption of fixed manufacturing overhead. Stocks of tobacco, which have an operating cycle that exceeds 12 months due to aging requirements, are classified as current assets, consistent with recognized industry practice. The remaining inventories not valued under LIFO are valued under the first-in, first-out method. |
Long-lived Assets | Long-lived Assets Long-lived assets, such as property, plant and equipment, trademarks and other intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. Impairment of the carrying value of long-lived assets would be indicated if the best estimate of future undiscounted cash flows expected to be generated by the asset grouping is less than its carrying value. If an impairment is indicated, any loss is measured as the difference between estimated fair value and carrying value and is recognized in operating income. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Useful lives range from 20 to 50 years for buildings and improvements, and from 3 to 30 years for machinery and equipment. The cost and related accumulated depreciation of assets sold or retired are removed from the accounts and the gain or loss on disposition is recognized in operating income. Depreciation expense was $100 million, $104 million and $95 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Software Costs | Software Costs Computer software and software development costs incurred in connection with developing or obtaining computer software for internal use that has an extended useful life are capitalized. These costs are amortized over their estimated useful life, which is typically five years or less. The following is a summary of balances and expenses for software costs as of and for the years ended December 31: Balances: 2016 2015 Unamortized software costs balance $ 49 $ 37 Software costs — capitalized or included in construction-in-process 27 13 Expenses: 2016 2015 2014 Software amortization expense $ 14 $ 17 $ 15 |
Intangible Assets | Intangible Assets Intangible assets include goodwill, trademarks and other intangible assets and are capitalized when acquired. The determination of fair value involves considerable estimates and judgment. In particular, the fair value of a reporting unit involves, among other things, developing forecasts of future cash flows, determining an appropriate discount rate, and when goodwill impairment is implied, determining the fair value of individual assets and liabilities, including unrecorded intangibles. Although RAI believes it has based its impairment testing of its intangible assets on reasonable estimates and assumptions, the use of different estimates and assumptions could result in materially different results. If the current legal and regulatory environment, business or competitive climate worsens, or RAI’s operating companies’ strategic initiatives adversely affect their financial performance, the fair value of goodwill, trademarks and other intangible assets could be impaired in future periods. Goodwill, trademarks and other intangible assets with indefinite lives are not amortized, but are tested for impairment annually, in the fourth quarter, and more frequently if events and circumstances indicate that the asset might be impaired. Finite lived trademarks and acquired customer lists are amortized using the straight-line method over their remaining useful lives, of 2 to 19 years, consistent with the pattern of economic benefits estimated to be received. |
Revenue Recognition | Revenue Recognition Revenue from product sales is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the seller’s price to the buyer is fixed or determinable, and collectability is reasonably assured. These criteria are generally met when title and risk of loss pass to the customer. Payments received in advance of shipments are deferred and recorded in other accrued liabilities until shipment occurs. Certain sales of leaf to a related party, considered as bill-and-hold for accounting purposes, are recorded as deferred revenue when all of the above revenue recognition criteria are met except delivery, postponed at the customer’s request. Revenue is subsequently recognized upon delivery. The revenues recorded are presented net of excise tax collected on behalf of government authorities. Shipping and handling costs are classified as cost of products sold. Net sales include certain sales incentives, including retail discounting, promotional allowances and coupons. |
Cost of Products Sold | Cost of Products Sold RJR Tobacco (itself, and as successor by merger to Lorillard Tobacco) and SFNTC are participants in the Master Settlement Agreement, referred to as the MSA, and RJR Tobacco (itself, and as successor by merger to Lorillard Tobacco) is a participant in the other state 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. RJR Tobacco’s and SFNTC’s obligations and the related expense charges under these agreements are subject to adjustments based upon, among other things, the volume of cigarettes sold by the operating subsidiaries, their relative market share, and their operating profit and inflation. Since relative market share is based on cigarette shipments, the best estimate of the allocation of charges to RJR Tobacco and SFNTC under these agreements is recorded in cost of products sold as the products are shipped. Included in these adjustments is the MSA non-participating manufacturer adjustment, referred to as the NPM Adjustment, that potentially reduces the annual payment obligation of RJR Tobacco, SFNTC and other participating manufacturers, referred to as the PMs. Adjustments to these estimates are recorded in the period that the change becomes probable and the amount can be reasonably estimated. American Snuff Co. is not a participant in the State Settlement Agreements. Cost of products sold includes, among other expenses, the expenses for the State Settlement Agreements; the user fees charged by the U.S. Food and Drug Administration, referred to as the FDA; and the federal tobacco quota buyout that expired in 2014. These expenses were as follows for the years ended December 31: 2016 2015 2014 State Settlement Agreements $ 2,727 $ 2,403 $ 1,917 FDA user fees 194 174 135 Federal tobacco quota buyout — — 163 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 NPM Adjustment. The Term Sheet resolved claims related to volume years from 2003 through 2012 and puts in place a revised method to determine future adjustments from 2013 forward. Subsequently, five additional states joined the Term Sheet, including two states that were found to not have diligently enforced their qualifying statutes in 2003. The parties to the Term Sheet represent an allocable share of 49.87%. In June 2014, two additional states agreed to settle the NPM Adjustment disputes on similar terms as set forth in the Term Sheet, except for certain provisions related to the determination of credits to be received by the PMs. RJR Tobacco and SFNTC, collectively, will receive credits, currently estimated to total approximately $170 million, with respect to their NPM Adjustment claims from 2003 through 2012. The credits related to these two states will be applied against annual payments under the MSA over a five-year period effectively beginning with the April 2014 MSA payment. As a result, expenses for the MSA were reduced by $34 million for the year ended December 31, 2014. As a result of the Lorillard Tobacco Merger, RJR Tobacco will receive approximately $5 million of additional credits, attributable to Lorillard Tobacco, which will be applied against annual MSA payments through 2018. As a result of meeting the performance requirements associated with the Term Sheet, RJR Tobacco and Santa Fe, collectively, recognized additional credits of $295 million, $282 million and $311 million for the years ended December 31, 2016, 2015 and 2014, respectively. Credits recognized in the years ended December 31, 2016 and 2015, include the benefit of the additional credits received as a result of the Lorillard Tobacco Merger. RJR Tobacco expects to recognize additional credits through 2017. In September 2013, the Arbitration Panel ruled six states had not diligently enforced their qualifying statutes in 2003 related to the NPM Adjustment. Two of the six states subsequently joined the Term Sheet in 2014. In 2015, three of the states dropped their challenge of the finding of non-diligence and in 2016, the remaining state dropped its challenge. As such, a portion of the potential recovery from those states was certain and estimable, and RJR Tobacco recognized $6 million and $93 million as a reduction of cost of products sold for the years ended December 31, 2016 and 2015, respectively. A final issue regarding the judgment reduction method adopted by the Arbitration Panel was being contested in these four states. In 2016, the U.S. Supreme Court denied RJR Tobacco’s petition for writ of certiorari against two states, thus eliminating RJR Tobacco’s remaining recovery from these states. The final outcome in the remaining two states is uncertain. 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 resolves 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, subject to meeting various performance obligations. These credits will be applied against annual payments under the MSA over a four-year period, which commenced with the April 2016 MSA payment. RJR Tobacco and Santa Fe, collectively, recognized credits of $95 million and $15 million as a reduction to costs of products sold for the years ended December 31, 2016 and 2015, respectively. In addition, the NY Settlement Agreement put in place a new method to determine future adjustments from 2015 forward as to New York. For additional information related to the NPM Adjustment settlement, see “— Litigation Affecting the Cigarette Industry — State Settlement Agreements — Enforcement and Validity; Adjustments” in note 13. |
Advertising | Advertising Advertising costs, which are expensed as incurred, were $80 million, $140 million and $140 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Research and Development | Research and Development Research and development costs, which are expensed as incurred, were $101 million, $107 million and $88 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Interest and penalties related to uncertain tax positions are accounted for as tax expense. Federal income taxes for RAI and its subsidiaries are calculated on a consolidated basis. State income taxes for RAI and its subsidiaries are primarily calculated on a separate return basis. RAI accounts for uncertain tax positions which require that a position taken or expected to be taken in a tax return be recognized in the financial statements when it is more likely than not (a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is recognized for all forms of share-based payment awards, including shares issued to employees under restricted stock units. |
Litigation | Litigation RAI discloses information concerning litigation for which an unfavorable outcome is more than remote. RAI and its subsidiaries record their legal expenses and other litigation costs and related administrative costs as selling, general and administrative expenses as these costs are incurred. RAI and its subsidiaries will record any loss related to litigation at such time as an unfavorable outcome becomes probable and the amount can be reasonably estimated on an individual case-by-case basis. When the reasonable estimate is a range, the recorded loss will be the best estimate within the range. If no amount in the range is a better estimate than any other amount, the minimum amount of the range will be recorded. For additional information related to litigation, see note 13. |
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 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) 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 accumulated net (gains) losses exceed 10% of the greater of the fair value of plan assets or benefit obligations, referred to as the corridor. Net (gains) 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 (credits) 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 (credits) of postretirement benefits, which are changes in benefit obligations due to plan amendments, are amortized on a straight-line basis over the expected service period to full eligibility age for active employees, or average remaining life expectancies for inactive employees if most of the plan obligations are due to inactive employees. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In April 2015, the FASB issued an Accounting Standards Update, referred to as ASU, 2015-03, Simplifying the Presentation of Debt Issuance Costs. Interest—Imputation of Interest (Subtopic 835-30), In April 2015, the FASB issued ASU 2015-05, Internal Use Software, In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement – Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, • ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), • ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, • ASU 2016-11, Revenue Recognition (Topic 605) and Derivative and Hedging (Topic 815) – Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting; • ASU 2016-12, Revenue Recognition from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, • ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers During 2016, RAI substantially completed its assessment of ASU 2014-09 to identify any potential changes in the amount and timing of revenue recognition for its current contracts and the expected impact on its business processes, systems and controls. may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective method). 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, In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows – Restricted Cash, |
Business and Summary of Signi34
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Certain Component Of Cost Of Products Sold | Cost of products sold includes, among other expenses, the expenses for the State Settlement Agreements; the user fees charged by the U.S. Food and Drug Administration, referred to as the FDA; and the federal tobacco quota buyout that expired in 2014. These expenses were as follows for the years ended December 31: 2016 2015 2014 State Settlement Agreements $ 2,727 $ 2,403 $ 1,917 FDA user fees 194 174 135 Federal tobacco quota buyout — — 163 |
Computer software and software development | |
Summary Of Balances And Expenses For Software Costs | The following is a summary of balances and expenses for software costs as of and for the years ended December 31: Balances: 2016 2015 Unamortized software costs balance $ 49 $ 37 Software costs — capitalized or included in construction-in-process 27 13 Expenses: 2016 2015 2014 Software amortization expense $ 14 $ 17 $ 15 |
Lorillard Merger, Divestiture35
Lorillard Merger, Divestiture and BAT Share Purchase (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price | Purchase Price The purchase price of $25.8 billion consisted of the Lorillard Merger Consideration together with the payment of certain Lorillard equity awards and certain change of control payments as follows: Fair value of RAI common stock issued $ 7,555 Cash paid to Lorillard shareholders at $50.50 per share 18,205 Cash paid for Lorillard stock options and stock appreciation rights 73 Purchase price $ 25,833 |
Allocation of Purchase Price to Assets Acquired and Liabilities assumed | Allocation of Purchase Price The purchase price as allocated to the assets acquired and liabilities assumed in the Lorillard Merger is set forth below: Final Allocation Assets Cash and cash equivalents $ 1,058 Short-term investments 347 Accounts and other receivables 47 Inventories 576 Income taxes receivable 135 Other current assets 1,673 Property, plant and equipment 82 Trademarks and other intangible assets 27,443 Goodwill 9,853 Other assets and deferred charges 207 Liabilities Tobacco settlement accruals 755 Other current liabilities 602 Long-term debt (less current maturities) 3,895 Deferred income taxes, net 9,998 Long-term retirement benefits (less current portion) 274 Other noncurrent liabilities 64 Allocation of purchase price $ 25,833 |
Summary of Pre-tax Gain | A summary of the pre-tax gain is as follows: Purchase price $ 7,056 Net assets and liabilities divested (2,026 ) Goodwill associated with divested RJR Tobacco brands (1,849 ) Gain on divestiture $ 3,181 |
Sale of International Rights 36
Sale of International Rights to the Natural American Spirit Brand (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Sale Of International Brand Rights [Line Items] | |
Summary of Pre-tax Gain | A summary of the pre-tax gain is as follows: Purchase price $ 7,056 Net assets and liabilities divested (2,026 ) Goodwill associated with divested RJR Tobacco brands (1,849 ) Gain on divestiture $ 3,181 |
NAS Brand | |
Sale Of International Brand Rights [Line Items] | |
Summary of Pre-tax Gain | The components of the pre-tax gain, which was recorded during the year ended December 31, 2016, were as follows: Purchase price $ 5,015 Net assets and liabilities divested (154 ) Gain on divestiture $ 4,861 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets | Financial assets carried at fair value as of December 31, were as follows: 2016 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash equivalents $ 2,006 $ — $ — $ 2,006 $ 2,454 $ — $ — $ 2,454 Short-term investments: Corporate debt securities — — — — — 96 — 96 U.S. Government agency obligations — — — — — 43 — 43 Commercial paper — — — — — 10 — 10 Other assets and deferred charges: Auction rate securities — — — — — — 79 79 Mortgage-backed security — — — — — — 10 10 Marketable equity security — — — — 1 — — 1 Interest rate swaps — — — — — 53 — 53 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 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, 2014 Goodwill $ 9,065 $ 197 $ 2,501 $ 44 $ 11,807 Less: accumulated impairment charges (3,763 ) — (28 ) — (3,791 ) Net goodwill balance as of December 31, 2014 5,302 197 2,473 44 8,016 2015 Activity Lorillard Merger goodwill 9,853 — — — 9,853 Divestiture goodwill (1,849 ) — — — (1,849 ) Reclassified to assets held for sale (1) — — — (27 ) (27 ) Balance as of December 31, 2015 Goodwill 17,069 197 2,501 17 19,784 Less: accumulated impairment charges (3,763 ) — (28 ) — (3,791 ) Net goodwill balance as of December 31, 2015 13,306 197 2,473 17 15,993 2016 Activity Foreign currency translation — — — (1 ) (1 ) Balance as of December 31, 2016 Goodwill 17,069 197 2,501 16 19,783 Less: accumulated impairment charges (3,763 ) — (28 ) — (3,791 ) Net goodwill balance as of December 31, 2016 $ 13,306 $ 197 $ 2,473 $ 16 $ 15,992 (1) Related to the sale of international rights to the NATURAL AMERICAN SPIRIT brand. See note 3. |
Changes in Carrying Amounts of Indefinite-Lived Intangible Assets by Segment Not Subject to Amortization | The changes in the carrying amounts of indefinite-lived intangible assets by segment not subject to amortization were as follows: RJR Tobacco Santa Fe American Snuff All Other Consolidated Trademarks Other Trademarks Trademarks Other Trademarks Other Balance as of December 31, 2014 $ 977 $ 99 $ 155 $ 1,136 $ 4 $ 2,268 $ 103 Trademarks acquired in Lorillard Merger 27,193 — — — — 27,193 — Trademarks divested (344 ) — — — — (344 ) — Other intangibles divested — (12 ) — — — — (12 ) Reclassified to assets held for sale (1) — — (19 ) — (4 ) (19 ) (4 ) Balance as of December 31, 2015 27,826 87 136 1,136 — 29,098 87 Balance as of December 31, 2016 $ 27,826 $ 87 $ 136 $ 1,136 $ — $ 29,098 $ 87 (1) Related to the sale of international rights to the NATURAL AMERICAN SPIRIT brand. See note 3. |
Changes in Carrying Amounts of Finite-lived Intangible Assets by Segment Subject to Amortization | The changes in the carrying amounts of finite-lived intangible assets by segment subject to amortization were as follows: RJR Tobacco American Snuff All Other Consolidated Trademarks Other Trademarks Other Trademarks Other Balance as of December 31, 2013 $ 18 $ 20 $ 8 $ — $ 26 $ 20 Amortization (6 ) (4 ) (1 ) — (7 ) (4 ) Acquisition — 15 — — — 15 Balance as of December 31, 2014 12 31 7 — 19 31 Trademarks acquired in Lorillard Merger 10 — — — 10 — Customer lists acquired in Lorillard Merger — 240 — — — 240 Amortization (5 ) (12 ) (1 ) — (6 ) (12 ) Balance as of December 31, 2015 17 259 6 — 23 259 Intercompany transfer — (13 ) — 13 — — Amortization (5 ) (17 ) (1 ) — (6 ) (17 ) Balance as of December 31, 2016 $ 12 $ 229 $ 5 $ 13 $ 17 $ 242 |
Details of Finite-Lived Intangible Assets | Details of finite-lived intangible assets were as follows: December 31, 2016 December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer lists $ 240 $ (19 ) $ 221 $ 240 $ (7 ) $ 233 Contract manufacturing agreement 151 (143 ) 8 151 (139 ) 12 Trademarks 124 (107 ) 17 124 (101 ) 23 Other intangibles 15 (2 ) 13 15 (1 ) 14 $ 530 $ (271 ) $ 259 $ 530 $ (248 ) $ 282 |
Finite-Lived Intangible Assets Future Amortization Expense | The remaining amortization expense associated with finite-lived intangible assets is expected to be as follows: Year Amount 2017 $ 23 2018 22 2019 16 2020 15 2021 14 Thereafter 169 $ 259 |
Income Per Share (Tables)
Income Per Share (Tables) | 12 Months Ended |
Dec. 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 Years Ended December 31, 2016 2015 2014 Income from continuing operations $ 6,073 $ 3,253 $ 1,445 Income from discontinued operations — — 25 Net income $ 6,073 $ 3,253 $ 1,470 Basic weighted average shares, in thousands 1,426,987 1,264,182 1,066,320 Effect of dilutive potential shares: Restricted stock units 2,946 3,533 3,620 Diluted weighted average shares, in thousands 1,429,933 1,267,715 1,069,940 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The major components of inventories at December 31 were as follows: 2016 2015 Leaf tobacco $ 1,436 $ 1,495 Other raw materials 77 110 Work in process 81 88 Finished products 165 173 Other 25 22 Total 1,784 1,888 LIFO allowance (139 ) (154 ) $ 1,645 $ 1,734 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Current [Abstract] | |
Other Current Liabilities | Other current liabilities at December 31 included the following: 2016 2015 Payroll and employee benefits $ 268 $ 210 Pension and postretirement benefits 89 91 Marketing and advertising 155 213 Excise, franchise and property tax 172 217 Other 352 503 $ 1,036 $ 1,234 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes from Continuing Operations | The components of the provision for income taxes from continuing operations for the years ended December 31 were as follows: 2016 2015 2014 Current: Federal $ 2,794 $ 3,313 $ 809 State and other 437 477 188 3,231 3,790 997 Deferred: Federal 350 (597 ) (151 ) State and other 37 (62 ) (29 ) 387 (659 ) (180 ) $ 3,618 $ 3,131 $ 817 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities for the years ended December 31 included the following: 2016 2015 Deferred tax assets: Pension and postretirement liabilities $ 759 $ 916 Tobacco settlement accruals 955 1,088 Other accrued liabilities 169 175 Other noncurrent liabilities 210 283 Subtotal 2,093 2,462 Less: valuation allowance — (8 ) 2,093 2,454 Deferred tax liabilities: LIFO inventories (257 ) (266 ) Property and equipment (290 ) (259 ) Trademarks and other intangibles (10,972 ) (11,002 ) Other (181 ) (131 ) (11,700 ) (11,658 ) Net deferred tax asset (liability) $ (9,607 ) $ (9,204 ) |
Pre-Tax Income for Domestic and Foreign Continuing Operations | Pre-tax income for domestic and foreign continuing operations for the years ended December 31 consisted of the following: 2016 2015 2014 Domestic (includes U.S. exports) $ 9,610 $ 6,342 $ 2,235 Foreign 81 42 27 $ 9,691 $ 6,384 $ 2,262 |
Differences between Provision for Income Taxes from Continuing Operations and Income Taxes | The differences between the provision for income taxes from continuing operations and income taxes computed at statutory U.S. federal income tax rates for the years ended December 31 were as follows: 2016 2015 2014 Income taxes computed at the statutory U.S. federal income tax rate $ 3,392 $ 2,233 $ 792 State and local income taxes, net of federal tax benefits 306 235 107 Domestic manufacturing deduction (114 ) (104 ) (80 ) Nondeductible goodwill 9 761 — Other items, net 25 6 (2 ) Provision for income taxes from continuing operations $ 3,618 $ 3,131 $ 817 Effective tax rate 37.3 % 49.0 % 36.1 % |
Components of Deferred Tax Benefits Included in Accumulated Other Comprehensive Loss | The components of deferred tax benefits included in accumulated other comprehensive loss for the years ended December 31 were as follows: 2016 2015 Retirement benefits $ 215 $ 209 Long-term investments — 10 Hedging instruments — 6 Cumulative translation adjustment and other 25 31 $ 240 $ 256 |
Accruals for Gross Unrecognized Income Tax Benefits, Including Interest and Penalties | The accruals for gross unrecognized income tax benefits, including interest and penalties, reflected in other noncurrent liabilities for the years ended December 31 were as follows: 2016 2015 Unrecognized tax benefits $ 118 $ 97 Accrued interest 13 17 Accrued penalties 7 8 $ 138 $ 122 |
Reconciliation of Gross Unrecognized Income Tax Benefits | A reconciliation of the gross unrecognized income tax benefits is as follows: 2016 2015 2014 Balance at beginning of year $ 97 $ 27 $ 62 Gross increases related to current period tax positions 30 28 5 Gross increases related to tax positions in prior periods 3 46 — Gross decreases related to tax positions in prior periods (3 ) (1 ) (31 ) Gross decreases related to audit settlements (2 ) — (6 ) Gross decreases related to lapse of applicable statute of limitations (7 ) (3 ) (3 ) Balance at end of year $ 118 $ 97 $ 27 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net of Discounts | Information, including a schedule of maturities, regarding RAI’s and RJR Tobacco’s long-term debt is provided below: RAI and RJR Tobacco Long-Term Debt For the years ended December 31, 2016 2015 RAI 3.500% notes due 08/04/2016 $ — $ 415 6.750% notes due 06/15/2017 — 700 2.300% notes due 08/21/2017 447 447 7.750% notes due 06/01/2018 — 250 2.300% notes due 06/12/2018 1,250 1,250 8.125% notes due 06/23/2019* 669 669 6.875% notes due 05/01/2020 641 641 3.250% notes due 06/12/2020 771 1,250 4.000% notes due 06/12/2022 1,000 1,000 3.250% notes due 11/01/2022 158 1,100 3.750% notes due 05/20/2023 30 474 4.850% notes due 09/15/2023 550 550 4.450% notes due 06/12/2025 2,500 2,500 5.700% notes due 08/15/2035 750 750 7.250% notes due 06/15/2037 450 450 8.125% notes due 05/01/2040 237 237 7.000% notes due 08/04/2041 240 240 4.750% notes due 11/01/2042 173 1,000 6.150% notes due 09/15/2043 550 550 5.850% notes due 08/15/2045 2,250 2,250 Total principal 12,666 16,723 Fair value adjustments 282 348 Unamortized discounts (28 ) (37 ) Unamortized debt issuance costs (68 ) (92 ) Total RAI long-term debt at carrying value $ 12,852 $ 16,942 RJR Tobacco 3.500% notes due 08/04/2016 $ — $ 85 2.300% notes due 08/21/2017 53 53 8.125% notes due 06/23/2019* 81 81 6.875% notes due 05/01/2020 109 109 3.750% notes due 05/20/2023 19 26 8.125% notes due 05/01/2040 13 13 7.000% notes due 08/04/2041 9 10 Total principal 284 377 Fair value adjustments 29 36 Total RJR Tobacco long-term debt at carrying value $ 313 $ 413 Total long-term debt at carrying value $ 13,165 $ 17,355 Less current maturities of long-term debt at carrying value 501 506 Total long-term debt (less current maturities) at carrying value $ 12,664 $ 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 December 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 2017 $ 447 $ 53 $ 500 2018 1,250 — 1,250 2019 669 81 750 2020 1,412 109 1,521 2022 and thereafter 8,888 41 8,929 $ 12,666 $ 284 $ 12,950 |
Schedule of Securities and Tender Offer | 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 Amount 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 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 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 December 31, 2016, and the increase or decrease from the number of cases pending against Reynolds Defendants as of September 30, 2016, as reported in RAI’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016, filed with the U.S. Securities and Exchange Commission, referred to as the SEC, on October 19, 2016, and a cross-reference to the discussion of each case type. Case Type U.S. Case Numbers as of December 31, 2016 Change in Number of Cases Since September 30, 2016 Increase/(Decrease) Individual Smoking and Health 132 7 West Virginia IPIC (Number of Plaintiffs)* 1 (approx. 564) No change Engle Progeny (Number of Plaintiffs)** 2,822 (approx. 3,645) (66) (110) Broin 2,406 (15) Class Action 25 1 Filter Cases 78 4 Health-Care Cost Recovery 2 No change State Settlement Agreements—Enforcement and Validity; Adjustments 28 No change Other Litigation and Developments 21 No change * 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 Starr-Blundell 10% — $ 50,000 $ — First DCA, per curiam Soffer Buonomo 77.5% — 4,060,000 25,000,000 Fourth DCA affirmed the amended final judgment, per curiam Totals $ 4,110,000 $ 25,000,000 (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 approximately $13.3 million or approximately $1.6 million in attorneys’ fees and statutory interest in Ward 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% — $ — $ 2,500,000 Fourth DCA reinstated the punitive damages awards of $2.5 million each against RJR Tobacco and the remaining defendant; court's opinion that previously granted remittitur of the compensatory damages awards still stands; remanded to trial court for further proceedings Andy Allen 24% — 2,475,000 7,756,000 Pending – First DCA Calloway 27% 18% — — Fourth DCA granted rehearing en banc 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; a subsequent appeal is pending in the Second DCA Schoeff 75% — 7,875,000 — Pending – Florida Supreme Court 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% — 11,514,000 22,500,000 Fourth DCA ordered award of compensatory damages reduced to reflect comparative fault, but otherwise affirmed; RJR Tobacco filed a motion for rehearing on February 6, 2017; decision is pending Gafney 33% 33% — — Fourth DCA reversed the judgment and remanded for a new trial; Florida Supreme Court declined to accept jurisdiction; new trial has not been scheduled Burkhart 25% 10% 3,500,000 (2) 1,750,000 Pending – Eleventh Circuit Bakst (Odom) 75% — — — Fourth DCA reversed the judgment of the trial court and remanded the case for a new trial on damages only; motion for rehearing was filed on January 9, 2017 Robinson 71% — 16,900,000 16,900,000 Pending – First DCA Harris 15% 10% 1,100,000 (2) — Post-trial motions are pending (3) Irimi 15% 15% — — Pending – Fourth DCA Lourie 3% 7% 137,000 — Second DCA affirmed the final judgment; defendants filed a notice to invoke the discretionary jurisdiction of the Florida Supreme Court on September 8, 2016; Florida Supreme Court stayed proceedings pending disposition of Marotta Kerrivan 31% — 6,046,660 (2) 9,600,000 Post-trial motions are pending (3) Schleider 70% — 14,700,000 — Pending – Third DCA Perrotto 20% 6% 1,063,000 — Plaintiff's motion for a new trial granted as to punitive damages; new trial scheduled for June 5, 2017 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 — Appeal in the Fourth DCA dismissed; pending in trial court 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% — 13,975,000 25,000,000 Pending – Fourth DCA Hardin 13% — 100,880 — Third DCA remanded the case for a new trial on punitive damages for the non-intentional tort claims; new trial has not been scheduled McCoy 25% 20% 670,000 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) 2,500,000 Pending – Second DCA O'Hara 85% — 14,700,000 20,000,000 Pending – First DCA Marchese 22.5% — 225,000 250,000 Pending – Fourth DCA Barbose 42.5% — 5,000,000 (2) 500,000 Pending – Second DCA Monroe 58% — 6,380,000 — Pending – First DCA Ledoux 47% — 5,000,000 (2) 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) 2,500,000 Pending – Second DCA Turner 80% — 2,400,000 10,000,000 Pending – Fourth DCA Enochs 66% — 13,860,000 6,250,000 Pending – Fourth DCA Dion 75% — 12,000,000 (2) 30,000 Pending – Second DCA Nally 75% — 6,000,000 (2) 12,000,000 Pending – Second DCA McCabe 30% — 1,500,000 6,500,000 Post-trial motions are pending (3) Sermons 5% — 3,250 17,075 Post-trial motions are pending (3) Mathis 55% — 5,000,000 (2) — Pending – Third DCA Oshinsky-Blacker 25% — 1,539,000 2,000,000 Post-trial motions are pending (3) Sherry Smith 65% — 3,000,000 (2) — Pending – Fifth DCA Prentice 40% — 2,560,000 — Post-trial motions are pending (3) Konzelman 85% — 7,476,000 20,000,000 Pending – Fourth DCA Ledo 49% — 2,940,000 — Post-trial motions are pending (3) Johnston 90% — 6,750,000 14,000,000 Post-trial motions are pending (3) Howles 50% — 2,000,000 3,000,000 Pending – Fourth DCA Ford 15% — 153,430 — Post-trial motions are pending (3) Martin 22% — 1,190,400 200,000 Post-trial motions are pending (3) Pardue 50% — 3,923,000 (2) 6,750,000 Post-trial motions are pending (3) Totals $ 212,186,620 $ 227,353,075 (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 thereafter: 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 RAI’s operating subsidiaries expenses and payments under the State Settlement Agreements for 2014, 2015 and 2016 and the projected expenses and payments for 2017 and thereafter (in millions) are set forth below. (1)(2) 2014 2015 2016 2017 2018 and thereafter Settlement expenses $ 1,917 $ 2,403 $ 2,727 — — Settlement cash payments $ 1,985 $ 2,166 $ 3,042 — — Projected settlement expenses $>3,000 $>3,000 Projected settlement cash payments $>2,700 $>3,000 (1) (2) |
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 (1) The amounts shown above do not include the interest or earnings thereon to which RJR Tobacco and Lorillard Tobacco believe they would be entitled under the MSA. |
Noncancellable Operating Leases Future Minimum Lease Payments | Future minimum lease payments as of December 31, 2016 (in millions) were as follows: Noncancellable Operating Leases 2017 $ 20 2018 3 2019 2 2020 1 2021 1 Total $ 27 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Declared Quarterly Cash Dividends per Share of Common Stock | RAI’s board of directors declared the following quarterly cash dividends per share of RAI common stock in 2016, 2015 and 2014: 2016 2015 2014 First $ 0.42 $ 0.335 $ 0.335 Second 0.42 0.335 0.335 Third 0.46 0.360 0.335 Fourth 0.46 0.360 0.335 |
Components of Accumulated Other Comprehensive Loss Net of Tax | The components of accumulated other comprehensive loss, net of tax, were as follows: Retirement Benefits Long-Term Investments Hedging Instruments Cumulative Translation Adjustment and Other Total Balance at December 31, 2014 $ (294 ) $ (14 ) $ (12 ) $ (44 ) $ (364 ) Other comprehensive income before reclassifications (78 ) — — (25 ) (103 ) Amounts reclassified from accumulated other comprehensive income (loss) 128 — 1 — 129 Net current-period other comprehensive income 50 — 1 (25 ) 26 Balance at December 31, 2015 (244 ) (14 ) (11 ) (69 ) (338 ) Other comprehensive income before reclassifications (18 ) — — (17 ) (35 ) Amounts reclassified from accumulated other comprehensive income (loss) 7 14 11 27 59 Net current-period other comprehensive income (11 ) 14 11 10 24 Balance at December 31, 2016 $ (255 ) $ — $ — $ (59 ) $ (314 ) |
Reclassification Out of Accumulated Other Comprehensive Income Net of Tax | Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidated statements of income for the years ended December 31, 2016, 2015 and 2014, were as follows: Amounts Reclassified Components 2016 2015 2014 Affected Line Item Retirement benefits: Amortization of prior service cost $ (20 ) $ (20 ) $ (21 ) Cost of products sold Amortization of prior service cost (19 ) (19 ) (18 ) Selling, general and administrative expenses Settlement cost 2 — — Selling, general and administrative expenses MTM adjustment 21 120 205 Cost of products sold MTM adjustment 24 126 247 Selling, general and administrative expenses 8 207 413 Operating income Deferred taxes (1 ) (79 ) (162 ) Provision for income taxes Net of tax 7 128 251 Net income Long-term investments: Realized loss, net on long-term investments 24 — — Other (income) expense, net Deferred taxes (10 ) — — Provision for income taxes Net of tax 14 — — Net income Hedging instruments: Forward starting interest rate contracts 16 — — Other (income) expense, net Amortization of realized loss 1 2 2 Interest and debt expense 17 2 2 Income from continuing operations before income taxes Deferred taxes (6 ) (1 ) (1 ) Provision for income taxes Net of tax 11 1 1 Net income Cumulative translation adjustment and other: Derecognition of cumulative translation adjustment 27 — — Gain on divestitures Total reclassifications $ 59 $ 129 $ 252 Net income |
Changes In Common Stock Outstanding | Changes in RAI common stock outstanding were as follows: 2016 2015 2014 Shares outstanding at beginning of year 1,427,341,341 1,062,567,026 1,076,106,048 Omnibus Plan tax shares repurchased and cancelled (1,146,978 ) (1,111,835 ) (1,108,084 ) Omnibus Plan shares issued from vesting of restricted stock units 2,938,567 2,870,927 2,936,588 Issuance of additional shares as Lorillard Merger Consideration — 209,413,694 — Issuance of additional shares for BAT Share Purchase — 155,360,518 — Shares repurchased and cancelled (3,383,544 ) (1,822,197 ) (15,431,526 ) Equity incentive award plan shares issued 75,569 63,208 64,000 Shares outstanding at end of year 1,425,824,955 1,427,341,341 1,062,567,026 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Information Regarding Stock-based Awards Outstanding | Information regarding restricted stock unit awards outstanding as of December 31, 2016, under the Omnibus Plan was as follows: Grant Year Number of Shares Granted Grant Price Per Share Vesting Date Number of Shares Cancelled and Vested Cumulative Dividends Per Share Ending Date of Performance Period Three-year grants 2014 2,098,696 $ 26.645 March 3, 2017 504,776 $ 4.02 December 31, 2016 2014 51,814 $ 29.365 March 3, 2017 — $ 3.02 December 31, 2016 2015 1,386,180 $ 37.940 March 2, 2018 169,217 $ 4.02 December 31, 2017 2015 17,196 $ 36.300 March 2, 2018 — $ 4.02 December 31, 2017 2016 1,071,544 $ 50.490 March 1, 2019 83,454 $ 5.04 December 31, 2018 2016 4,898 $ 50.130 March 1, 2019 — $ 4.62 December 31, 2018 2016 1,727 $ 51.030 March 1, 2019 — $ 4.20 December 31, 2018 2016 4,581 $ 50.550 March 1, 2019 — $ 4.20 December 31, 2018 2016 21,249 $ 55.100 March 1, 2019 — $ 3.78 December 31, 2018 2016 1,366 $ 56.040 March 1, 2019 — $ 3.36 December 31, 2018 One-year grant 2016 164,841 $ 56.040 May 1, 2017 — $ 1.68 April 30, 2017 Other grants 2014 74,266 $ 29.365 September 30, 2018 — N/A N/A 2016 23,605 $ 46.930 December 15, 2017 — N/A N/A 2016 16,094 $ 46.930 December 15, 2018 — N/A N/A 2016 10,551 $ 55.100 December 15, 2017 — N/A N/A 2016 10,550 $ 55.100 December 15, 2018 — N/A N/A |
Changes in Restricted RAI Common Stock and Restricted Stock Units | The changes in the number of RAI restricted stock units during 2016 were as follows: Number of Stock Units Weighted Average Grant Date Fair Value Per Share Outstanding at beginning of year 5,147,400 $ 28.42 Granted 1,354,611 51.15 Forfeited (224,490 ) 39.21 Vested (2,075,810 ) 25.11 Outstanding at end of year 4,201,711 36.81 |
Compensation Expense Related to Stock Based Compensation and Related Tax Benefits | Total compensation expense related to stock-based compensation and the related tax benefits recognized in selling, general and administrative expenses in the consolidated statements of income as of December 31, were as follows: Grant/Type 2016 2015 2014 2011 restricted stock units $ — $ — $ 3 2012 restricted stock units — 3 14 2013 restricted stock units 3 20 15 2014 restricted stock units 20 32 24 2015 restricted stock units 30 24 — 2016 restricted stock units 24 — — Total compensation expense $ 77 $ 79 $ 56 Total related tax benefits $ 27 $ 28 $ 20 |
Amounts Related to Performance Share Grants, Restricted Stock Grants, Restricted Stock Units Grant | The amounts related to the unvested Omnibus Plan restricted stock unit grants included in the consolidated balance sheets as of December 31, were as follows: 2016 2015 Other current liabilities $ 10 $ 10 Other noncurrent liabilities 7 8 Paid-in capital 111 110 |
Equity Compensation Plan Information | Equity compensation plan information as of December 31, 2016, was as follows: Plan Category Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights Weighted Average Exercise Price of Outstanding Options, Warrants and Rights Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (a) (b) (c) Equity Compensation Plans Approved by Security Holders 6,317,451 (2) $ — 62,307,352 Equity Compensation Plans Not Approved by Security Holders (1) — — 1,904,424 Total 6,317,451 (2) — 64,211,776 (1) The EIAP was approved by RJR’s sole shareholder, Nabisco Group Holdings Corp., prior to RJR’s spin-off on June 15, 1999. (2) Consists of restricted stock units. These restricted stock units represent the maximum number of shares to be awarded under the best-case targets, and accordingly, may overstate expected dilution. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Changes in Benefit Obligations | The changes in benefit obligations and plan assets, as well as the funded status of these plans at December 31 were as follows: Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Change in benefit obligations: Obligations at beginning of year $ 6,738 $ 6,389 $ 1,210 $ 1,251 Service cost 16 26 2 2 Interest cost 295 275 49 50 Actuarial (gain) loss 95 (270 ) (12 ) (120 ) Merger — 756 — 111 Benefits paid (434 ) (431 ) (87 ) (84 ) Settlements (36 ) (7 ) — — Obligations at end of year $ 6,674 $ 6,738 $ 1,162 $ 1,210 Change in plan assets: Fair value of plan assets at beginning of year $ 5,351 $ 5,309 $ 241 $ 259 Actual return on plan assets 432 (131 ) 10 (1 ) Employer contributions 335 18 66 67 Merger — 593 — — Benefits paid (434 ) (431 ) (87 ) (84 ) Settlements (36 ) (7 ) — — Fair value of plan assets at end of year $ 5,648 $ 5,351 $ 230 $ 241 Funded status $ (1,026 ) $ (1,387 ) $ (932 ) $ (969 ) |
Net Actuarial (Gain) Loss on Pension and Postretirement Benefit Plans | The changes in net actuarial (gain) loss impacted the funded status as follows: Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Net actuarial (gain) loss: Change in discount rate $ 266 $ (287 ) $ 38 $ (37 ) Change in mortality table (101 ) (128 ) (14 ) (21 ) Actual return on plan assets (432 ) 131 (10 ) 1 Expected return on plan assets 372 373 12 12 Other (69 ) 145 (37 ) (62 ) Net actuarial (gain) loss $ 36 $ 234 $ (11 ) $ (107 ) |
Amounts Recognized in Consolidated Balance Sheets | Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Amounts recognized in the consolidated balance sheets consist of: Accrued benefit — other current liabilities $ (11 ) $ (10 ) $ (78 ) $ (81 ) Accrued benefit — long-term retirement benefits (1,015 ) (1,377 ) (854 ) (888 ) Net amount recognized (1,026 ) (1,387 ) (932 ) (969 ) Accumulated other comprehensive loss 616 636 (146 ) (183 ) Net amounts recognized in the consolidated balance sheets $ (410 ) $ (751 ) $ (1,078 ) $ (1,152 ) |
Amounts Included in Accumulated Other Comprehensive Loss | Amounts included in accumulated other comprehensive loss were as follows as of December 31: 2016 2015 Pension Benefits Postretirement Benefits Total Pension Benefits Postretirement Benefits Total Prior service cost (credit) $ 7 $ (95 ) $ (88 ) $ 10 $ (137 ) $ (127 ) Net actuarial (gain) loss 609 (51 ) 558 626 (46 ) 580 Deferred income taxes (256 ) 41 (215 ) (262 ) 53 (209 ) Accumulated other comprehensive loss $ 360 $ (105 ) $ 255 $ 374 $ (130 ) $ 244 |
Changes in Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss were as follows: 2016 2015 Pension Benefits Postretirement Benefits Total Pension Benefits Postretirement Benefits Total Net actuarial (gain) loss $ 36 $ (11 ) $ 25 $ 234 $ (107 ) $ 127 Amortization of prior service cost (credit) (3 ) 42 39 (3 ) 42 39 Prior service cost (credit) — — — — (1 ) (1 ) Settlement cost (2 ) — (2 ) (1 ) — (1 ) MTM adjustment (51 ) 6 (45 ) (246 ) — (246 ) Deferred income tax (benefit) expense 6 (12 ) (6 ) 6 26 32 Change in accumulated other comprehensive loss $ (14 ) $ 25 $ 11 $ (10 ) $ (40 ) $ (50 ) |
Weighted Average Assumptions Used to Determine Benefit Obligations | Pension Benefits Postretirement Benefits 2016 2015 2016 2015 Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 4.16 % 4.54 % 4.12 % 4.47 % Rate of compensation increase 4.00 % 4.00 % — — |
Accumulated Benefit Obligations | Pension plans experiencing accumulated benefit obligations, which represent benefits earned to date, in excess of plan assets are summarized below: December 31, 2016 2015 Projected benefit obligation $ 6,674 $ 6,738 Accumulated benefit obligation 6,625 6,684 Plan assets 5,648 5,351 |
Components of Pension Benefits (Income) and Postretirement Benefits | The components of the total benefit cost (income) and assumptions are set forth below: Pension Benefits Postretirement Benefits 2016 2015 2014 2016 2015 2014 Service cost $ 16 $ 26 $ 21 2 2 $ 2 Interest cost 295 275 266 49 50 53 Expected return on plan assets (372 ) (373 ) (360 ) (12 ) (12 ) (12 ) Amortization of prior service cost (credit) 3 3 3 (42 ) (42 ) (42 ) Settlements 2 1 — — — — MTM adjustment 51 246 420 (6 ) — 32 Total benefit cost (income) $ (5 ) $ 178 $ 350 $ (9 ) $ (2 ) $ 33 |
Weighted Average Assumptions | Pension Benefits Postretirement Benefits 2016 2015 (1) 2014 2016 2015 (1) 2014 Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 4.54 % 4.14 % 4.92 % 4.47 % 4.12 % 4.87 % Expected long-term return on plan assets 6.82 % 6.83 % 7.13 % 4.60 % 4.85 % 4.85 % Rate of compensation increase 4.00 % 4.00 % 4.00 % — — — (1) Determined as of the beginning of year and adjusted for the Lorillard Merger in 2015. |
Weighted Average Health Care Cost Trend | Additional information relating to RAI’s significant postretirement plans is as follows: 2016 2015 Weighted-average health-care cost trend rate assumed for the following year 7.00 % 7.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2025 2020 |
Assumed Health Care Cost Trend | A one-percentage-point change in assumed health-care cost trend rates would have had the following effects at December 31, 2016: 1-Percentage Point Increase 1-Percentage Point Decrease Effect on total of service and interest cost components $ 2 $ (2 ) Effect on benefit obligation 58 (49 ) |
Estimated Future Benefit Payments | Estimated future benefit payments: Postretirement Benefits Year Pension Benefits Gross Benefit Before Medicare Part D Subsidies Expected Medicare Part D Subsidies Net Projected Benefit Payments After Medicare Part D Subsidies 2017 $ 447 $ 105 $ (2 ) $ 103 2018 443 90 (2 ) 88 2019 439 87 (2 ) 85 2020 436 85 (2 ) 83 2021 431 83 (2 ) 81 2022-2026 2,082 386 (11 ) 375 |
Pension and Postretirement Plans Asset Allocations | RAI’s pension and postretirement plans asset allocations at December 31, 2016 and 2015, by asset category were as follows: Pension Plans 2016 (1) 2016 2015 (1) 2015 Asset Category: Domestic equities 10 % 12 % 10 % 10 % International equities 8 % 8 % 8 % 7 % Global equities 9 % 12 % 9 % 11 % Emerging market equities 3 % 2 % 3 % 2 % Fixed income 53 % 53 % 53 % 53 % Absolute return 6 % 7 % 6 % 8 % Private equity 2 % 2 % 2 % 2 % Real assets 5 % 4 % 5 % 5 % Commodities 4 % — 4 % 2 % Total 100 % 100 % 100 % 100 % Postretirement Plans 2016 Target (1) 2016 2015 Target (1) 2015 Asset Category: Domestic equities 21 % 22 % 21 % 20 % International equities 21 % 20 % 21 % 21 % Fixed income 55 % 51 % 55 % 54 % Cash and other 3 % 7 % 3 % 5 % Total 100 % 100 % 100 % 100 % (1) Allows for a rebalancing range of up to 5 percentage points around target asset allocations. |
Plan Assets Carried at Fair Value | RAI’s pension and postretirement plan assets, excluding uninvested cash and unsettled trades, carried at fair value on a recurring basis as of December 31, 2016 and 2015, were as follows ( 1) 2016 2015 Pension Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset Category: Domestic equities $ 457 $ — $ — $ 457 $ 410 $ — $ — $ 410 Global equities 635 — — 635 585 — — 585 International equities 137 — — 137 144 — — 144 Real assets 23 — — 23 21 — — 21 Agency bonds — 29 — 29 — 18 — 18 Asset backed securities — 52 1 53 — 90 3 93 Corporate bonds — 1,797 1 1,798 — 1,718 1 1,719 Government bonds — 78 — 78 — 91 — 91 High yield fixed income — 20 — 20 — 19 — 19 Mortgage backed securities — 75 — 75 — 41 — 41 Municipal bonds — 201 — 201 — 201 — 201 Treasuries — 554 — 554 — 550 — 550 Cash equivalents and other 28 332 2 362 33 90 2 125 Total investments in the fair value hierarchy $ 1,280 $ 3,138 $ 4 4,422 $ 1,193 $ 2,818 $ 6 4,017 Investments measured at net asset value (2) 1,250 1,282 Total $ 5,672 $ 5,299 2016 2015 Postretirement Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset Category: Short-term bonds $ 8 $ — $ — $ 8 $ 13 $ — $ — $ 13 Cash equivalents and other — 7 — 7 — 6 — 6 Total investments in the fair value hierarchy $ 8 $ 7 $ — 15 $ 13 $ 6 $ — 19 Investments measured at net asset value (2) 205 216 Total $ 220 $ 235 (1) See note 1 for additional information on the fair value hierarchy. (2) Prior-year amounts were reclassified in accordance with the adoption of ASU 2015-07. |
Transfers of Plan Assets by Asset Category | Transfers of pension and postretirement plan assets in and out of Level 3 during 2016, by asset category were as follows (1) Balance January 1, 2016 Purchases, Issuances Settlements (net) Realized Gains (Losses) Unrealized Gains (Losses) Transferred From Other Levels Balance December 31, 2016 Asset backed securities $ 3 $ — $ — $ (2 ) $ — $ 1 Corporate bonds 1 — — — — 1 Other 2 — (28 ) 28 — 2 Total $ 6 $ — $ (28 ) $ 26 $ — $ 4 Transfers of pension and postretirement plan assets in and out of Level 3 during 2015, by asset category were as follows (1) Balance January 1, 2015 Purchases, Issuances Settlements (net) Realized Gains (Losses) Unrealized Gains (Losses) Transferred From Other Levels Balance December 31, 2015 Asset backed securities $ 3 $ — $ — $ — $ — $ 3 Corporate bonds 2 (1 ) — — — 1 Other 2 — — — — 2 Total $ 7 $ (1 ) $ — $ — $ — $ 6 (1) See note 1 for additional information on the fair value hierarchy. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information Related to Sales, Income, and Assets | Segment Data: 2016 2015 2014 Net sales: RJR Tobacco $ 10,314 $ 8,634 $ 6,767 Santa Fe 973 818 658 American Snuff 914 855 783 All Other 302 368 263 Consolidated net sales $ 12,503 $ 10,675 $ 8,471 Operating income (loss): RJR Tobacco (1)(2) $ 4,922 $ 3,359 $ 2,173 Santa Fe 546 449 337 American Snuff (2) 541 502 438 All Other (3) (145 ) (265 ) (234 ) Gain on divestitures 4,861 3,181 — Corporate Expense (2) (156 ) (273 ) (183 ) Consolidated operating income $ 10,569 $ 6,953 $ 2,531 Cash capital expenditures: RJR Tobacco $ 130 $ 84 $ 53 Santa Fe 12 16 7 American Snuff 22 10 12 All Other 42 64 132 Consolidated capital expenditures $ 206 $ 174 $ 204 Depreciation and amortization expense: RJR Tobacco $ 77 $ 71 $ 65 Santa Fe 4 3 3 American Snuff 16 17 17 All Other 26 31 21 Consolidated depreciation and amortization expense $ 123 $ 122 $ 106 Reconciliation to income from continuing operations before income taxes: Consolidated operating income (1)(2)(3) $ 10,569 $ 6,953 $ 2,531 Interest and debt expense 626 570 286 Interest income (8 ) (6 ) (3 ) Other (income) expense, net 260 5 (14 ) Income from continuing operations before income taxes $ 9,691 $ 6,384 $ 2,262 ( 1 ) Includes NPM Adjustment credits of $388 million, $293 million and $341 million for RJR Tobacco for the years ended December 31, 2016, 2015 and 2014, respectively. ( 2 ) Includes MTM adjustment expense of $42 million for RJR Tobacco and $3 million for Corporate Expense for the year ended December 31, 2016. Includes MTM adjustment expense of $229 million for RJR Tobacco, $1 million for American Snuff and $16 million for Corporate Expense and All Other for the year ended December 31, 2015. Includes MTM adjustment expense of $422 million for RJR Tobacco, $4 million for American Snuff and $26 million for Corporate Expense and All Other for the year ended December 31, 2014. (3 ) Includes $99 million of asset impairment and exit charges for the year ended December 31, 2015. See note 6. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Summary of Balances and Transactions | The following is a summary of balances and transactions with such BAT affiliates as of and for the years ended December 31: 2016 2015 Current Balances: Accounts receivable, related party $ 113 $ 38 Due to related party 7 9 Deferred revenue, related party 66 33 Other current liabilities — 2 Long-term Balances: Long-term deferred revenue, related party $ 39 $ — 2016 2015 2014 Significant Transactions: Net sales $ 226 $ 259 $ 311 Purchases 21 38 28 BAT Share Purchase — 4,673 — Share repurchase agreements 32 — 155 Research and development services billings 1 3 4 |
RAI Guaranteed, Unsecured Not50
RAI Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 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 Year Ended December 31, 2016 Net sales $ — $ 12,209 $ 198 $ (130 ) $ 12,277 Net sales, related party — 226 — — 226 Net sales — 12,435 198 (130 ) 12,503 Cost of products sold — 4,787 185 (131 ) 4,841 Selling, general and administrative expenses 41 1,721 167 2 1,931 Gain on divestitures — (4,843 ) (16 ) (2 ) (4,861 ) Amortization expense — 22 1 — 23 Operating income (loss) (41 ) 10,748 (139 ) 1 10,569 Interest and debt expense 619 81 9 (83 ) 626 Interest income (84 ) (6 ) (1 ) 83 (8 ) Other (income) expense, net 244 (30 ) 3 43 260 Income (loss) before income taxes (820 ) 10,703 (150 ) (42 ) 9,691 Provision for (benefit from) income taxes (171 ) 3,840 (51 ) — 3,618 Equity income from subsidiaries 6,722 4 — (6,726 ) — Net income (loss) $ 6,073 $ 6,867 $ (99 ) $ (6,768 ) $ 6,073 For the Year Ended December 31, 2015 Net sales $ — $ 10,319 $ 333 $ (236 ) $ 10,416 Net sales, related party — 259 — — 259 Net sales — 10,578 333 (236 ) 10,675 Cost of products sold — 4,673 248 (233 ) 4,688 Selling, general and administrative expenses 79 1,738 281 — 2,098 Gain on divestitures — (3,153 ) (28 ) — (3,181 ) Amortization expense — 18 — — 18 Asset impairment and exit charges — 99 — — 99 Operating income (loss) (79 ) 7,203 (168 ) (3 ) 6,953 Interest and debt expense 559 104 7 (100 ) 570 Interest income (100 ) (6 ) — 100 (6 ) Other (income) expense, net 20 (42 ) (16 ) 43 5 Income (loss) before income taxes (558 ) 7,147 (159 ) (46 ) 6,384 Provision for (benefit from) income taxes (224 ) 3,417 (62 ) — 3,131 Equity income from subsidiaries 3,587 46 — (3,633 ) — Net income (loss) $ 3,253 $ 3,776 $ (97 ) $ (3,679 ) $ 3,253 For the Year Ended December 31, 2014 Net sales $ — $ 8,109 $ 232 $ (181 ) $ 8,160 Net sales, related party — 311 — — 311 Net sales — 8,420 232 (181 ) 8,471 Cost of products sold — 4,002 235 (179 ) 4,058 Selling, general and administrative expenses 75 1,535 261 — 1,871 Amortization expense — 11 — — 11 Operating income (loss) (75 ) 2,872 (264 ) (2 ) 2,531 Interest and debt expense 286 79 6 (85 ) 286 Interest income (85 ) (3 ) — 85 (3 ) Other (income) expense, net 4 (44 ) (17 ) 43 (14 ) Income (loss) from continuing operations before income taxes (280 ) 2,840 (253 ) (45 ) 2,262 Provision for (benefit from) income taxes (89 ) 1,004 (98 ) — 817 Equity income from subsidiaries 1,661 26 — (1,687 ) — Income (loss) from continuing operations 1,470 1,862 (155 ) (1,732 ) 1,445 Income from discontinued operations, net of tax — 25 — — 25 Net income (loss) $ 1,470 $ 1,887 $ (155 ) $ (1,732 ) $ 1,470 |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2016 Net income (loss) $ 6,073 $ 6,867 $ (99 ) $ (6,768 ) $ 6,073 Other comprehensive income (loss), net of tax: Retirement benefits (11 ) (12 ) (4 ) 16 (11 ) Long-term investments 14 14 — (14 ) 14 Hedging instruments 11 — — — 11 Cumulative translation adjustment and other 10 10 13 (23 ) 10 Comprehensive income (loss) $ 6,097 $ 6,879 $ (90 ) $ (6,789 ) $ 6,097 For the Year Ended December 31, 2015 Net income (loss) $ 3,253 $ 3,776 $ (97 ) $ (3,679 ) $ 3,253 Other comprehensive income (loss), net of tax: Retirement benefits 50 50 13 (63 ) 50 Hedging instruments 1 — — — 1 Cumulative translation adjustment and other (25 ) (27 ) (37 ) 64 (25 ) Comprehensive income (loss) $ 3,279 $ 3,799 $ (121 ) $ (3,678 ) $ 3,279 For the Year Ended December 31, 2014 Net income (loss) $ 1,470 $ 1,887 $ (155 ) $ (1,732 ) $ 1,470 Other comprehensive income (loss), net of tax: Retirement benefits (277 ) (271 ) (1 ) 272 (277 ) Long-term investments 2 2 — (2 ) 2 Hedging instruments 1 — — — 1 Cumulative translation adjustment and other (34 ) (34 ) (48 ) 82 (34 ) Comprehensive income (loss) $ 1,162 $ 1,584 $ (204 ) $ (1,380 ) $ 1,162 |
Reclassification Out of Accumulated Other Comprehensive Income Net of Tax | Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2016, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ — $ (20 ) Cost of products sold Amortization of prior service cost — (19 ) — — (19 ) Selling, general and administrative expenses Settlement cost — 2 — — 2 Selling, general and administrative expenses MTM adjustment — 21 — — 21 Cost of products sold MTM adjustment 4 26 (6 ) — 24 Selling, general and administrative expenses 4 10 (6 ) — 8 Operating income (loss) Deferred taxes — (1 ) — — (1 ) Provision for (benefit from) income taxes Net of tax 4 9 (6 ) — 7 Net income (loss) Long-term investments: Realized loss, net on long-term investments — 24 — — 24 Other (income) expense, net Deferred taxes — (10 ) — — (10 ) Provision for (benefit from) income taxes Net of tax — 14 — — 14 Net income (loss) Hedging instruments: Forward starting interest rate contracts 16 — — — 16 Other (income) expense, net Amortization of realized loss 1 — — — 1 Interest and debt expense Deferred taxes (6 ) — — — (6 ) Provision for (benefit from) income taxes Net of tax 11 — — — 11 Net income (loss) Cumulative translation adjustment and other: Derecognition of cumulative translation adjustment — — 27 — 27 Gain on divestitures Equity income from subsidiaries 44 21 — (65 ) — Equity income from subsidiaries Total reclassifications $ 59 $ 44 $ 21 $ (65 ) $ 59 Net income (loss) Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2015, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ — $ (20 ) Cost of products sold Amortization of prior service cost — (19 ) — — (19 ) Selling, general and administrative expenses MTM adjustment — 120 — — 120 Cost of products sold MTM adjustment 5 121 — — 126 Selling, general and administrative expenses 5 202 — — 207 Operating income (loss) Deferred taxes (1 ) (78 ) — — (79 ) Provision for (benefit from) income taxes Net of tax 4 124 — — 128 Net income (loss) Hedging instruments: Amortization of realized loss 2 — — — 2 Interest and debt expense Deferred taxes (1 ) — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — 1 Net income (loss) Equity income from subsidiaries 124 — — (124 ) — Equity income from subsidiaries Total reclassifications $ 129 $ 124 $ — $ (124 ) $ 129 Net income (loss) Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2014, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (21 ) $ — $ — $ (21 ) Cost of products sold Amortization of prior service cost — (18 ) — — (18 ) Selling, general and administrative expenses MTM adjustment — 205 — — 205 Cost of products sold MTM adjustment 10 236 1 — 247 Selling, general and administrative expenses 10 402 1 — 413 Operating income (loss) Deferred taxes (4 ) (158 ) — — (162 ) Provision for (benefit from) income taxes Net of tax 6 244 1 — 251 Net income (loss) Hedging instruments: Amortization of realized loss 2 — — — 2 Interest and debt expense Deferred taxes (1 ) — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — 1 Net income (loss) Equity income from subsidiaries 245 — — (245 ) — Equity income from subsidiaries Total reclassifications $ 252 $ 244 $ 1 $ (245 ) $ 252 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 Year Ended December 31, 2016 Cash flows from (used in) operating activities $ (413 ) $ 3,162 $ (234 ) $ (1,235 ) $ 1,280 Cash flows from (used in) investing activities: Capital expenditures — (211 ) (7 ) 12 (206 ) Proceeds from settlement of investments — 266 — — 266 Proceeds from divestitures 5,015 — — — 5,015 Return of intercompany investments 2,274 26 — (2,300 ) — Contributions to intercompany investments (16 ) — — 16 — Other, net 193 24 — (214 ) 3 Net cash flows from (used in) investing activities 7,466 105 (7 ) (2,486 ) 5,078 Cash flows from (used in) financing activities: Dividends paid on common stock (2,369 ) (1,152 ) (28 ) 1,180 (2,369 ) Repurchase of common stock (226 ) — — — (226 ) Repayments of long-term debt (415 ) (85 ) — — (500 ) Early extinguishment of debt (3,642 ) (8 ) — — (3,650 ) Premiums paid for early extinguishment of debt (206 ) (1 ) — — (207 ) Proceeds from termination of interest rate swaps — 66 — — 66 Debt issuance costs and financing fees (8 ) — — — (8 ) Excess tax benefit on stock-based compensation plans 28 — — — 28 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (2,274 ) (26 ) 2,300 — Receipt of equity — — 16 (16 ) — Other, net (21 ) (360 ) 167 214 — Net cash flows from (used in) financing activities (6,902 ) (3,814 ) 129 3,721 (6,866 ) Effect of exchange rate changes on cash and cash equivalents — — (8 ) — (8 ) Net change in cash and cash equivalents 151 (547 ) (120 ) — (516 ) Cash and cash equivalents at beginning of year 575 1,544 448 — 2,567 Cash and cash equivalents at end of year $ 726 $ 997 $ 328 $ — $ 2,051 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2015 Cash flows from (used in) operating activities $ (2,279 ) $ 3,219 $ 6 $ (750 ) $ 196 Cash flows from (used in) investing activities: Capital expenditures — (160 ) (12 ) (2 ) (174 ) Proceeds from settlement of investments — 332 — — 332 Acquisition, net of cash acquired (18,278 ) 1,001 57 — (17,220 ) Proceeds from divestitures 7,056 — — — 7,056 Return of intercompany investments 185 — — (185 ) — Other, net 10 22 — (31 ) 1 Net cash flows from (used in) investing activities (11,027 ) 1,195 45 (218 ) (10,005 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,583 ) (709 ) — 709 (1,583 ) Repurchase of common stock (124 ) — — — (124 ) Proceeds from BAT Share Purchase 4,673 — — — 4,673 Issuance of long-term debt 8,975 — — — 8,975 Repayments of long-term debt (450 ) — — — (450 ) Debt issuance costs and financing fees (70 ) — — — (70 ) Borrowings under revolving credit facility 1,400 — — — 1,400 Repayments of borrowings under revolving credit facility (1,400 ) — — — (1,400 ) Excess tax benefit on stock-based compensation plans 17 — — — 17 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (185 ) — 185 — Other, net 2,384 (2,445 ) 30 31 — Net cash flows from (used in) financing activities 13,779 (3,339 ) 30 968 11,438 Effect of exchange rate changes on cash and cash equivalents — — (28 ) — (28 ) Net change in cash and cash equivalents 473 1,075 53 — 1,601 Cash and cash equivalents at beginning of year 102 469 395 — 966 Cash and cash equivalents at end of year $ 575 $ 1,544 $ 448 $ — $ 2,567 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Non- Issuer Guarantors Guarantors Eliminations Consolidated For the Year Ended December 31, 2014 Cash flows from (used in) operating activities $ 1,277 $ 1,865 $ (179 ) $ (1,340 ) $ 1,623 Cash flows from (used in) investing activities: Capital expenditures — (265 ) (94 ) 155 (204 ) Proceeds from termination of joint venture — — 35 — 35 Proceeds from settlement of investments — 4 — — 4 Return of intercompany investments 165 — — (165 ) — Contributions to intercompany investments (32 ) — — 32 — Other, net 250 35 126 (451 ) (40 ) Net cash flows from (used in) investing activities 383 (226 ) 67 (429 ) (205 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,411 ) (1,301 ) — 1,301 (1,411 ) Repurchase of common stock (440 ) — — — (440 ) Borrowings under revolving credit facility 1,000 — — — 1,000 Repayments of borrowings under revolving credit facility (1,000 ) — — — (1,000 ) Debt issuance costs and financing fees (79 ) — — — (79 ) Excess tax benefit on stock-based compensation plans 12 — — — 12 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (165 ) — 165 — Receipt of equity — — 32 (32 ) — Other, net (41 ) (400 ) 149 292 — Net cash flows from (used in) financing activities (2,002 ) (1,866 ) 181 1,769 (1,918 ) Effect of exchange rate changes on cash and cash equivalents — — (34 ) — (34 ) Net change in cash and cash equivalents (342 ) (227 ) 35 — (534 ) Cash and cash equivalents at beginning of year 444 696 360 — 1,500 Cash and cash equivalents at end of year $ 102 $ 469 $ 395 $ — $ 966 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated December 31, 2016 Assets Cash and cash equivalents $ 726 $ 997 $ 328 $ — $ 2,051 Accounts receivable — 62 4 — 66 Accounts receivable, related party — 113 — — 113 Other receivables 63 3,572 17 (3,642 ) 10 Inventories — 1,604 43 (2 ) 1,645 Other current assets 112 238 — 3 353 Total current assets 901 6,586 392 (3,641 ) 4,238 Property, plant and equipment, net 2 1,314 32 — 1,348 Trademarks and other intangible assets, net of accumulated amortization — 29,432 14 (2 ) 29,444 Goodwill — 15,976 16 — 15,992 Long-term intercompany notes receivable 1,390 148 — (1,538 ) — Investment in subsidiaries 36,865 333 — (37,198 ) — Other assets and deferred charges 80 52 37 (96 ) 73 Total assets $ 39,238 $ 53,841 $ 491 $ (42,475 ) $ 51,095 Liabilities and shareholders’ equity Accounts payable $ 1 $ 213 $ 7 $ — $ 221 Tobacco settlement accruals — 2,498 — — 2,498 Due to related party — 7 — — 7 Deferred revenue, related party — 66 — — 66 Current maturities of long-term debt 448 53 — — 501 Dividends payable on common stock 656 — — — 656 Other current liabilities 3,767 871 40 (3,642 ) 1,036 Total current liabilities 4,872 3,708 47 (3,642 ) 4,985 Long-term intercompany notes payable 148 900 490 (1,538 ) — Long-term debt (less current maturities) 12,404 260 — — 12,664 Long-term deferred income taxes, net — 9,700 — (93 ) 9,607 Long-term retirement benefits (less current portion) 59 1,767 43 — 1,869 Long-term deferred revenue, related party — 39 — — 39 Other noncurrent liabilities 44 176 — — 220 Shareholders’ equity 21,711 37,291 (89 ) (37,202 ) 21,711 Total liabilities and shareholders’ equity $ 39,238 $ 53,841 $ 491 $ (42,475 ) $ 51,095 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Non- Issuer Guarantors 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 Other current assets 116 323 129 (4 ) 564 Total current assets 761 7,269 718 (3,593 ) 5,155 Property, plant and equipment, net 3 1,223 29 — 1,255 Trademarks and other intangible assets, net of accumulated amortization — 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 189 212 38 (209 ) 230 Total assets $ 39,687 $ 54,978 $ 802 $ (43,367 ) $ 52,100 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 Long-term deferred income taxes, net — 9,410 — (206 ) 9,204 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 $ 54,978 $ 802 $ (43,367 ) $ 52,100 |
RJR Tobacco Guaranteed, Unsec51
RJR Tobacco Guaranteed, Unsecured Notes - Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Consolidating Statements of Income | Condensed Consolidating Statements of Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2016 Net sales $ — $ 12,209 $ 198 $ (130 ) $ 12,277 Net sales, related party — 226 — — 226 Net sales — 12,435 198 (130 ) 12,503 Cost of products sold — 4,787 185 (131 ) 4,841 Selling, general and administrative expenses 41 1,721 167 2 1,931 Gain on divestitures — (4,843 ) (16 ) (2 ) (4,861 ) Amortization expense — 22 1 — 23 Operating income (loss) (41 ) 10,748 (139 ) 1 10,569 Interest and debt expense 619 81 9 (83 ) 626 Interest income (84 ) (6 ) (1 ) 83 (8 ) Other (income) expense, net 244 (30 ) 3 43 260 Income (loss) before income taxes (820 ) 10,703 (150 ) (42 ) 9,691 Provision for (benefit from) income taxes (171 ) 3,840 (51 ) — 3,618 Equity income from subsidiaries 6,722 4 — (6,726 ) — Net income (loss) $ 6,073 $ 6,867 $ (99 ) $ (6,768 ) $ 6,073 For the Year Ended December 31, 2015 Net sales $ — $ 10,319 $ 333 $ (236 ) $ 10,416 Net sales, related party — 259 — — 259 Net sales — 10,578 333 (236 ) 10,675 Cost of products sold — 4,673 248 (233 ) 4,688 Selling, general and administrative expenses 79 1,738 281 — 2,098 Gain on divestitures — (3,153 ) (28 ) — (3,181 ) Amortization expense — 18 — — 18 Asset impairment and exit charges — 99 — — 99 Operating income (loss) (79 ) 7,203 (168 ) (3 ) 6,953 Interest and debt expense 559 104 7 (100 ) 570 Interest income (100 ) (6 ) — 100 (6 ) Other (income) expense, net 20 (42 ) (16 ) 43 5 Income (loss) before income taxes (558 ) 7,147 (159 ) (46 ) 6,384 Provision for (benefit from) income taxes (224 ) 3,417 (62 ) — 3,131 Equity income from subsidiaries 3,587 46 — (3,633 ) — Net income (loss) $ 3,253 $ 3,776 $ (97 ) $ (3,679 ) $ 3,253 For the Year Ended December 31, 2014 Net sales $ — $ 8,109 $ 232 $ (181 ) $ 8,160 Net sales, related party — 311 — — 311 Net sales — 8,420 232 (181 ) 8,471 Cost of products sold — 4,002 235 (179 ) 4,058 Selling, general and administrative expenses 75 1,535 261 — 1,871 Amortization expense — 11 — — 11 Operating income (loss) (75 ) 2,872 (264 ) (2 ) 2,531 Interest and debt expense 286 79 6 (85 ) 286 Interest income (85 ) (3 ) — 85 (3 ) Other (income) expense, net 4 (44 ) (17 ) 43 (14 ) Income (loss) from continuing operations before income taxes (280 ) 2,840 (253 ) (45 ) 2,262 Provision for (benefit from) income taxes (89 ) 1,004 (98 ) — 817 Equity income from subsidiaries 1,661 26 — (1,687 ) — Income (loss) from continuing operations 1,470 1,862 (155 ) (1,732 ) 1,445 Income from discontinued operations, net of tax — 25 — — 25 Net income (loss) $ 1,470 $ 1,887 $ (155 ) $ (1,732 ) $ 1,470 |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2016 Net income (loss) $ 6,073 $ 6,867 $ (99 ) $ (6,768 ) $ 6,073 Other comprehensive income (loss), net of tax: Retirement benefits (11 ) (12 ) (4 ) 16 (11 ) Long-term investments 14 14 — (14 ) 14 Hedging instruments 11 — — — 11 Cumulative translation adjustment and other 10 10 13 (23 ) 10 Comprehensive income (loss) $ 6,097 $ 6,879 $ (90 ) $ (6,789 ) $ 6,097 For the Year Ended December 31, 2015 Net income (loss) $ 3,253 $ 3,776 $ (97 ) $ (3,679 ) $ 3,253 Other comprehensive income (loss), net of tax: Retirement benefits 50 50 13 (63 ) 50 Hedging instruments 1 — — — 1 Cumulative translation adjustment and other (25 ) (27 ) (37 ) 64 (25 ) Comprehensive income (loss) $ 3,279 $ 3,799 $ (121 ) $ (3,678 ) $ 3,279 For the Year Ended December 31, 2014 Net income (loss) $ 1,470 $ 1,887 $ (155 ) $ (1,732 ) $ 1,470 Other comprehensive income (loss), net of tax: Retirement benefits (277 ) (271 ) (1 ) 272 (277 ) Long-term investments 2 2 — (2 ) 2 Hedging instruments 1 — — — 1 Cumulative translation adjustment and other (34 ) (34 ) (48 ) 82 (34 ) Comprehensive income (loss) $ 1,162 $ 1,584 $ (204 ) $ (1,380 ) $ 1,162 |
Reclassification Out of Accumulated Other Comprehensive Income Net of Tax | Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2016, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ — $ (20 ) Cost of products sold Amortization of prior service cost — (19 ) — — (19 ) Selling, general and administrative expenses Settlement cost — 2 — — 2 Selling, general and administrative expenses MTM adjustment — 21 — — 21 Cost of products sold MTM adjustment 4 26 (6 ) — 24 Selling, general and administrative expenses 4 10 (6 ) — 8 Operating income (loss) Deferred taxes — (1 ) — — (1 ) Provision for (benefit from) income taxes Net of tax 4 9 (6 ) — 7 Net income (loss) Long-term investments: Realized loss, net on long-term investments — 24 — — 24 Other (income) expense, net Deferred taxes — (10 ) — — (10 ) Provision for (benefit from) income taxes Net of tax — 14 — — 14 Net income (loss) Hedging instruments: Forward starting interest rate contracts 16 — — — 16 Other (income) expense, net Amortization of realized loss 1 — — — 1 Interest and debt expense Deferred taxes (6 ) — — — (6 ) Provision for (benefit from) income taxes Net of tax 11 — — — 11 Net income (loss) Cumulative translation adjustment and other: Derecognition of cumulative translation adjustment — — 27 — 27 Gain on divestitures Equity income from subsidiaries 44 21 — (65 ) — Equity income from subsidiaries Total reclassifications $ 59 $ 44 $ 21 $ (65 ) $ 59 Net income (loss) Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2015, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ — $ (20 ) Cost of products sold Amortization of prior service cost — (19 ) — — (19 ) Selling, general and administrative expenses MTM adjustment — 120 — — 120 Cost of products sold MTM adjustment 5 121 — — 126 Selling, general and administrative expenses 5 202 — — 207 Operating income (loss) Deferred taxes (1 ) (78 ) — — (79 ) Provision for (benefit from) income taxes Net of tax 4 124 — — 128 Net income (loss) Hedging instruments: Amortization of realized loss 2 — — — 2 Interest and debt expense Deferred taxes (1 ) — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — 1 Net income (loss) Equity income from subsidiaries 124 — — (124 ) — Equity income from subsidiaries Total reclassifications $ 129 $ 124 $ — $ (124 ) $ 129 Net income (loss) Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the consolidating statement of income for the year ended December 31, 2014, were as follows: Components Amount Reclassified Affected Line Item Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (21 ) $ — $ — $ (21 ) Cost of products sold Amortization of prior service cost — (18 ) — — (18 ) Selling, general and administrative expenses MTM adjustment — 205 — — 205 Cost of products sold MTM adjustment 10 236 1 — 247 Selling, general and administrative expenses 10 402 1 — 413 Operating income (loss) Deferred taxes (4 ) (158 ) — — (162 ) Provision for (benefit from) income taxes Net of tax 6 244 1 — 251 Net income (loss) Hedging instruments: Amortization of realized loss 2 — — — 2 Interest and debt expense Deferred taxes (1 ) — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — 1 Net income (loss) Equity income from subsidiaries 245 — — (245 ) — Equity income from subsidiaries Total reclassifications $ 252 $ 244 $ 1 $ (245 ) $ 252 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 Year Ended December 31, 2016 Cash flows from (used in) operating activities $ (413 ) $ 3,162 $ (234 ) $ (1,235 ) $ 1,280 Cash flows from (used in) investing activities: Capital expenditures — (211 ) (7 ) 12 (206 ) Proceeds from settlement of investments — 266 — — 266 Proceeds from divestitures 5,015 — — — 5,015 Return of intercompany investments 2,274 26 — (2,300 ) — Contributions to intercompany investments (16 ) — — 16 — Other, net 193 24 — (214 ) 3 Net cash flows from (used in) investing activities 7,466 105 (7 ) (2,486 ) 5,078 Cash flows from (used in) financing activities: Dividends paid on common stock (2,369 ) (1,152 ) (28 ) 1,180 (2,369 ) Repurchase of common stock (226 ) — — — (226 ) Repayments of long-term debt (415 ) (85 ) — — (500 ) Early extinguishment of debt (3,642 ) (8 ) — — (3,650 ) Premiums paid for early extinguishment of debt (206 ) (1 ) — — (207 ) Proceeds from termination of interest rate swaps — 66 — — 66 Debt issuance costs and financing fees (8 ) — — — (8 ) Excess tax benefit on stock-based compensation plans 28 — — — 28 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (2,274 ) (26 ) 2,300 — Receipt of equity — — 16 (16 ) — Other, net (21 ) (360 ) 167 214 — Net cash flows from (used in) financing activities (6,902 ) (3,814 ) 129 3,721 (6,866 ) Effect of exchange rate changes on cash and cash equivalents — — (8 ) — (8 ) Net change in cash and cash equivalents 151 (547 ) (120 ) — (516 ) Cash and cash equivalents at beginning of year 575 1,544 448 — 2,567 Cash and cash equivalents at end of year $ 726 $ 997 $ 328 $ — $ 2,051 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2015 Cash flows from (used in) operating activities $ (2,279 ) $ 3,219 $ 6 $ (750 ) $ 196 Cash flows from (used in) investing activities: Capital expenditures — (160 ) (12 ) (2 ) (174 ) Proceeds from settlement of investments — 332 — — 332 Acquisition, net of cash acquired (18,278 ) 1,001 57 — (17,220 ) Proceeds from divestitures 7,056 — — — 7,056 Return of intercompany investments 185 — — (185 ) — Other, net 10 22 — (31 ) 1 Net cash flows from (used in) investing activities (11,027 ) 1,195 45 (218 ) (10,005 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,583 ) (709 ) — 709 (1,583 ) Repurchase of common stock (124 ) — — — (124 ) Proceeds from BAT Share Purchase 4,673 — — — 4,673 Issuance of long-term debt 8,975 — — — 8,975 Repayments of long-term debt (450 ) — — — (450 ) Debt issuance costs and financing fees (70 ) — — — (70 ) Borrowings under revolving credit facility 1,400 — — — 1,400 Repayments of borrowings under revolving credit facility (1,400 ) — — — (1,400 ) Excess tax benefit on stock-based compensation plans 17 — — — 17 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (185 ) — 185 — Other, net 2,384 (2,445 ) 30 31 — Net cash flows from (used in) financing activities 13,779 (3,339 ) 30 968 11,438 Effect of exchange rate changes on cash and cash equivalents — — (28 ) — (28 ) Net change in cash and cash equivalents 473 1,075 53 — 1,601 Cash and cash equivalents at beginning of year 102 469 395 — 966 Cash and cash equivalents at end of year $ 575 $ 1,544 $ 448 $ — $ 2,567 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Non- Issuer Guarantors Guarantors Eliminations Consolidated For the Year Ended December 31, 2014 Cash flows from (used in) operating activities $ 1,277 $ 1,865 $ (179 ) $ (1,340 ) $ 1,623 Cash flows from (used in) investing activities: Capital expenditures — (265 ) (94 ) 155 (204 ) Proceeds from termination of joint venture — — 35 — 35 Proceeds from settlement of investments — 4 — — 4 Return of intercompany investments 165 — — (165 ) — Contributions to intercompany investments (32 ) — — 32 — Other, net 250 35 126 (451 ) (40 ) Net cash flows from (used in) investing activities 383 (226 ) 67 (429 ) (205 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,411 ) (1,301 ) — 1,301 (1,411 ) Repurchase of common stock (440 ) — — — (440 ) Borrowings under revolving credit facility 1,000 — — — 1,000 Repayments of borrowings under revolving credit facility (1,000 ) — — — (1,000 ) Debt issuance costs and financing fees (79 ) — — — (79 ) Excess tax benefit on stock-based compensation plans 12 — — — 12 Dividends paid on preferred stock (43 ) — — 43 — Distribution of equity — (165 ) — 165 — Receipt of equity — — 32 (32 ) — Other, net (41 ) (400 ) 149 292 — Net cash flows from (used in) financing activities (2,002 ) (1,866 ) 181 1,769 (1,918 ) Effect of exchange rate changes on cash and cash equivalents — — (34 ) — (34 ) Net change in cash and cash equivalents (342 ) (227 ) 35 — (534 ) Cash and cash equivalents at beginning of year 444 696 360 — 1,500 Cash and cash equivalents at end of year $ 102 $ 469 $ 395 $ — $ 966 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Issuer Guarantors Non- Guarantors Eliminations Consolidated December 31, 2016 Assets Cash and cash equivalents $ 726 $ 997 $ 328 $ — $ 2,051 Accounts receivable — 62 4 — 66 Accounts receivable, related party — 113 — — 113 Other receivables 63 3,572 17 (3,642 ) 10 Inventories — 1,604 43 (2 ) 1,645 Other current assets 112 238 — 3 353 Total current assets 901 6,586 392 (3,641 ) 4,238 Property, plant and equipment, net 2 1,314 32 — 1,348 Trademarks and other intangible assets, net of accumulated amortization — 29,432 14 (2 ) 29,444 Goodwill — 15,976 16 — 15,992 Long-term intercompany notes receivable 1,390 148 — (1,538 ) — Investment in subsidiaries 36,865 333 — (37,198 ) — Other assets and deferred charges 80 52 37 (96 ) 73 Total assets $ 39,238 $ 53,841 $ 491 $ (42,475 ) $ 51,095 Liabilities and shareholders’ equity Accounts payable $ 1 $ 213 $ 7 $ — $ 221 Tobacco settlement accruals — 2,498 — — 2,498 Due to related party — 7 — — 7 Deferred revenue, related party — 66 — — 66 Current maturities of long-term debt 448 53 — — 501 Dividends payable on common stock 656 — — — 656 Other current liabilities 3,767 871 40 (3,642 ) 1,036 Total current liabilities 4,872 3,708 47 (3,642 ) 4,985 Long-term intercompany notes payable 148 900 490 (1,538 ) — Long-term debt (less current maturities) 12,404 260 — — 12,664 Long-term deferred income taxes, net — 9,700 — (93 ) 9,607 Long-term retirement benefits (less current portion) 59 1,767 43 — 1,869 Long-term deferred revenue, related party — 39 — — 39 Other noncurrent liabilities 44 176 — — 220 Shareholders’ equity 21,711 37,291 (89 ) (37,202 ) 21,711 Total liabilities and shareholders’ equity $ 39,238 $ 53,841 $ 491 $ (42,475 ) $ 51,095 Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Non- Issuer Guarantors 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 Other current assets 116 323 129 (4 ) 564 Total current assets 761 7,269 718 (3,593 ) 5,155 Property, plant and equipment, net 3 1,223 29 — 1,255 Trademarks and other intangible assets, net of accumulated amortization — 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 189 212 38 (209 ) 230 Total assets $ 39,687 $ 54,978 $ 802 $ (43,367 ) $ 52,100 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 Long-term deferred income taxes, net — 9,410 — (206 ) 9,204 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 $ 54,978 $ 802 $ (43,367 ) $ 52,100 |
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 Year Ended December 31, 2016 Net sales $ — $ 10,365 $ — $ 2,229 $ (317 ) $ 12,277 Net sales, related party — 226 — — — 226 Net sales — 10,591 — 2,229 (317 ) 12,503 Cost of products sold — 4,323 — 837 (319 ) 4,841 Selling, general and administrative expenses, net 41 2,719 2 (834 ) 3 1,931 Gain on divestitures — — — (4,861 ) — (4,861 ) Amortization expense — 16 — 7 — 23 Operating income (loss) (41 ) 3,533 (2 ) 7,080 (1 ) 10,569 Interest and debt expense 619 7 — 86 (86 ) 626 Interest income (84 ) (5 ) (3 ) (2 ) 86 (8 ) Other (income) expense, net 244 12 (42 ) 3 43 260 Income (loss) before income taxes (820 ) 3,519 43 6,993 (44 ) 9,691 Provision for (benefit from) income taxes (171 ) 1,247 (1 ) 2,543 — 3,618 Equity income from subsidiaries 6,722 850 3,142 — (10,714 ) — Net income $ 6,073 $ 3,122 $ 3,186 $ 4,450 $ (10,758 ) $ 6,073 For the Year Ended December 31, 2015 Net sales $ — $ 8,714 $ — $ 2,039 $ (337 ) $ 10,416 Net sales, related party — 259 — — — 259 Net sales — 8,973 — 2,039 (337 ) 10,675 Cost of products sold — 4,277 — 746 (335 ) 4,688 Selling, general and administrative expenses, net 79 2,318 3 (302 ) — 2,098 (Gain) loss on divestitures — 1,887 — (5,068 ) — (3,181 ) Amortization expense — 12 — 6 — 18 Asset impairment and exit charges — 99 — — — 99 Operating income (loss) (79 ) 380 (3 ) 6,657 (2 ) 6,953 Interest and debt expense 559 20 — 94 (103 ) 570 Interest income (100 ) (5 ) (4 ) — 103 (6 ) Other (income) expense, net 20 2 (43 ) (17 ) 43 5 Income (loss) before income taxes (558 ) 363 44 6,580 (45 ) 6,384 Provision for (benefit from) income taxes (224 ) 928 — 2,427 — 3,131 Equity income from subsidiaries 3,587 3,732 3,185 — (10,504 ) — Net income $ 3,253 $ 3,167 $ 3,229 $ 4,153 $ (10,549 ) $ 3,253 For the Year Ended December 31, 2014 Net sales $ — $ 6,728 $ — $ 1,701 $ (269 ) $ 8,160 Net sales, related party — 311 — — — 311 Net sales — 7,039 — 1,701 (269 ) 8,471 Cost of products sold — 3,641 — 686 (269 ) 4,058 Selling, general and administrative expenses 75 1,629 6 161 — 1,871 Amortization expense — 4 — 7 — 11 Operating income (loss) (75 ) 1,765 (6 ) 847 — 2,531 Interest and debt expense 286 21 — 67 (88 ) 286 Interest income (85 ) (2 ) (3 ) (1 ) 88 (3 ) Other (income) expense, net 4 1 (45 ) (17 ) 43 (14 ) Income (loss) from continuing operations before income taxes (280 ) 1,745 42 798 (43 ) 2,262 Provision for (benefit from) income taxes (89 ) 627 (1 ) 280 — 817 Equity income from subsidiaries 1,661 279 1,425 — (3,365 ) — Net income from continuing operations 1,470 1,397 1,468 518 (3,408 ) 1,445 Income from discontinued operations, net of tax — 25 — — — 25 Net income $ 1,470 $ 1,422 $ 1,468 $ 518 $ (3,408 ) $ 1,470 |
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 Year Ended December 31, 2016 Net income $ 6,073 $ 3,122 $ 3,186 $ 4,450 $ (10,758 ) $ 6,073 Other comprehensive income (loss), net of tax: Retirement benefits (11 ) (6 ) (10 ) (5 ) 21 (11 ) Long-term investments 14 14 14 — (28 ) 14 Hedging instruments 11 — — — — 11 Cumulative translation adjustment and other 10 7 10 10 (27 ) 10 Comprehensive income $ 6,097 $ 3,137 $ 3,200 $ 4,455 $ (10,792 ) $ 6,097 For the Year Ended December 31, 2015 Net income $ 3,253 $ 3,167 $ 3,229 $ 4,153 $ (10,549 ) $ 3,253 Other comprehensive income (loss), net of tax: Retirement benefits 50 39 51 12 (102 ) 50 Hedging instruments 1 — — — — 1 Cumulative translation adjustment and other (25 ) (25 ) (25 ) (26 ) 76 (25 ) Comprehensive income $ 3,279 $ 3,181 $ 3,255 $ 4,139 $ (10,575 ) $ 3,279 For the Year Ended December 31, 2014 Net income $ 1,470 $ 1,422 $ 1,468 $ 518 $ (3,408 ) $ 1,470 Other comprehensive income (loss), net of tax: Retirement benefits (277 ) (259 ) (261 ) (11 ) 531 (277 ) Long-term investments 2 2 2 — (4 ) 2 Hedging instruments 1 — — — — 1 Cumulative translation adjustment and other (34 ) (32 ) (32 ) (33 ) 97 (34 ) Comprehensive income $ 1,162 $ 1,133 $ 1,177 $ 474 $ (2,784 ) $ 1,162 |
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 statement of income for the year ended December 31, 2016, were as follows: Components Amounts Reclassified Affected Line Item Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ — $ — $ (20 ) Cost of products sold Amortization of prior service cost — (19 ) — — — (19 ) Selling, general and administrative expenses, net Settlement cost — 2 — — — 2 Selling, general and administrative expenses, net MTM adjustment — 21 — — — 21 Cost of products sold MTM adjustment 4 21 2 (3 ) — 24 Selling, general and administrative expenses, net 4 5 2 (3 ) — 8 Operating income (loss) Deferred taxes — (1 ) — — — (1 ) Provision for (benefit from) income taxes Net of tax 4 4 2 (3 ) — 7 Net income Long-term investments: Realized loss, net on long-term investments — 24 — — — 24 Other (income) expense, net Deferred taxes — (10 ) — — — (10 ) Provision for (benefit from) income taxes Net of tax — 14 — — — 14 Net income Hedging instruments: Forward starting interest rate contracts 16 — — — — 16 Other (income) expense, net Amortization of realized loss 1 — — — — 1 Interest and debt expense Deferred taxes (6 ) — — — — (6 ) Provision for (benefit from) income taxes Net of tax 11 — — — — 11 Net income Cumulative translation adjustment and other: Derecognition of cumulative translation adjustment — — — 27 — 27 Gain on divestitures Equity income from subsidiaries 44 27 39 — (110 ) — Equity income from subsidiaries Total reclassifications $ 59 $ 45 $ 41 $ 24 $ (110 ) $ 59 Net income Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the condensed consolidating statement of income for the year ended December 31, 2015, were as follows: Components Amounts Reclassified Affected Line Item Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (19 ) $ — $ (1 ) $ — $ (20 ) Cost of products sold Amortization of prior service cost — (17 ) (1 ) (1 ) — (19 ) Selling, general and administrative expenses, net MTM adjustment — 119 — 1 — 120 Cost of products sold MTM adjustment 5 110 3 8 — 126 Selling, general and administrative expenses, net 5 193 2 7 — 207 Operating income (loss) Deferred taxes (1 ) (74 ) (1 ) (3 ) — (79 ) Provision for (benefit from) income taxes Net of tax 4 119 1 4 — 128 Net income Hedging instruments: Amortization of realized loss 2 — — — — 2 Interest and debt expense Deferred taxes (1 ) — — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — — 1 Net income Equity income from subsidiaries 124 — 118 — (242 ) — Equity income from subsidiaries Total reclassifications $ 129 $ 119 $ 119 $ 4 $ (242 ) $ 129 Net income Details about the reclassifications out of accumulated other comprehensive loss and the affected line items in the condensed consolidating statement of income for the year ended December 31, 2014, were as follows: Components Amounts Reclassified Affected Line Item Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated Retirement benefits: Amortization of prior service cost $ — $ (20 ) $ — $ (1 ) $ — $ (21 ) Cost of products sold Amortization of prior service cost — (17 ) — (1 ) — (18 ) Selling, general and administrative expenses MTM adjustment — 195 — 10 — 205 Cost of products sold MTM adjustment 10 228 4 5 — 247 Selling, general and administrative expenses 10 386 4 13 — 413 Other (income) expense, net Deferred taxes (4 ) (152 ) (1 ) (5 ) — (162 ) Provision for (benefit from) income taxes Net of tax 6 234 3 8 — 251 Net income Hedging instruments: Amortization of realized loss 2 — — — — 2 Interest and debt expense Deferred taxes (1 ) — — — — (1 ) Provision for (benefit from) income taxes Net of tax 1 — — — — 1 Net income Equity income from subsidiaries 245 — 234 — (479 ) — Equity income from subsidiaries Total reclassifications $ 252 $ 234 $ 237 $ 8 $ (479 ) $ 252 Net income |
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 Year Ended December 31, 2016 Cash flows from (used in) operating activities $ (413 ) $ 2,462 $ 1,918 $ 827 $ (3,514 ) $ 1,280 Cash flows from (used in) investing activities: Capital expenditures — (143 ) — (75 ) 12 (206 ) Proceeds from settlement of investments — 266 — — — 266 Proceeds from divestitures 5,015 — — — — 5,015 Return of intercompany investments 2,274 508 1,473 — (4,255 ) — Contributions to intercompany investments (16 ) — — — 16 — Other, net 193 3 17 21 (231 ) 3 Net cash flows from (used in) from investing activities 7,466 634 1,490 (54 ) (4,458 ) 5,078 Cash flows from (used in) financing activities: Dividends paid on common stock (2,369 ) (1,752 ) (1,152 ) (555 ) 3,459 (2,369 ) Repurchase of common stock (226 ) — — — — (226 ) Repayments of long-term debt (415 ) (85 ) — — — (500 ) Early extinguishment of debt (3,642 ) (8 ) — — — (3,650 ) Premiums paid for early extinguishment of debt (206 ) (1 ) — — — (207 ) Proceeds from termination of interest rate swaps — 66 — — — 66 Debt issuance costs and financing fees (8 ) — — — — (8 ) Excess tax benefit on stock-based compensation plans 28 — — — — 28 Dividends paid on preferred stock (43 ) — — — 43 — Distribution of equity — (1,455 ) (2,274 ) (526 ) 4,255 — Receipt of equity — — — 16 (16 ) — Other, net (21 ) — — (210 ) 231 — Net cash flows used in financing activities (6,902 ) (3,235 ) (3,426 ) (1,275 ) 7,972 (6,866 ) Effect of exchange rate changes on cash and cash equivalents — — — (8 ) — (8 ) Net change in cash and cash equivalents 151 (139 ) (18 ) (510 ) — (516 ) Cash and cash equivalents at beginning of period 575 809 19 1,164 — 2,567 Cash and cash equivalents at end of period $ 726 $ 670 $ 1 $ 654 $ — $ 2,051 Condensed Consolidating Statements of Cash Flows (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated For the Year Ended December 31, 2015 Cash flows from (used in) operating activities $ (2,279 ) $ 2,924 $ 549 $ 422 $ (1,420 ) $ 196 Cash flows from (used in) investing activities: Capital expenditures — (99 ) — (73 ) (2 ) (174 ) Proceeds from settlement of investments — 332 — — — 332 Acquisition, net of cash acquired (18,278 ) 523 — 535 — (17,220 ) Proceeds from divestitures 7,056 — — — — 7,056 Return of intercompany investments 185 11 344 — (540 ) — Other, net 10 1 17 21 (48 ) 1 Net cash flows from (used in) investing activities (11,027 ) 768 361 483 (590 ) (10,005 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,583 ) (461 ) (709 ) (209 ) 1,379 (1,583 ) Repurchase of common stock (124 ) — — — — (124 ) Proceeds from BAT Share Purchase 4,673 — — — — 4,673 Issuance of long-term debt 8,975 — — — — 8,975 Repayments of long-term debt (450 ) — — — — (450 ) Debt issuance costs and financing fees (70 ) — — — — (70 ) Borrowings under revolving credit facility 1,400 — — — — 1,400 Repayments of borrowings under revolving credit facility (1,400 ) — — — — (1,400 ) Excess tax benefit on stock-based compensation plans 17 — — — — 17 Dividends paid on preferred stock (43 ) — — — 43 — Distribution of equity — (344 ) (185 ) (11 ) 540 — Other, net 2,384 (2,405 ) — (27 ) 48 — Net cash flows from (used in) financing activities 13,779 (3,210 ) (894 ) (247 ) 2,010 11,438 Effect of exchange rate changes on cash and cash equivalents — — — (28 ) — (28 ) Net change in cash and cash equivalents 473 482 16 630 — 1,601 Cash and cash equivalents at beginning of period 102 327 3 534 — 966 Cash and cash equivalents at end of period $ 575 $ 809 $ 19 $ 1,164 $ — $ 2,567 For the Year Ended December 31, 2014 Cash flows from operating activities $ 1,277 $ 1,364 $ 1,424 $ 524 $ (2,966 ) $ 1,623 Cash flows from (used in) investing activities: Capital expenditures — (232 ) — (127 ) 155 (204 ) Proceeds from settlement of investments — 2 2 — — 4 Proceeds from termination of joint venture — — — 35 — 35 Return of intercompany investments 165 105 21 — (291 ) — Contribution to intercompany investments (32 ) — — — 32 — Other, net 250 (8 ) 19 187 (488 ) (40 ) Net cash flows from (used in) investing activities 383 (133 ) 42 95 (592 ) (205 ) Cash flows from (used in) financing activities: Dividends paid on common stock (1,411 ) (1,377 ) (1,301 ) (250 ) 2,928 (1,411 ) Repurchase of common stock (440 ) — — — — (440 ) Borrowings under revolving credit facility 1,000 — — — — 1,000 Repayments of borrowings under revolving credit facility (1,000 ) — — — — (1,000 ) Debt issuance costs and financing fees (79 ) — — — — (79 ) Excess tax benefit on stock-based compensation plans 12 — — — — 12 Dividends paid on preferred stock (43 ) — — — 43 — Distribution of equity — (21 ) (165 ) (105 ) 291 — Receipt of equity — — — 32 (32 ) — Other, net (41 ) (20 ) — (267 ) 328 — Net cash flows used in financing activities (2,002 ) (1,418 ) (1,466 ) (590 ) 3,558 (1,918 ) Effect of exchange rate changes on cash and cash equivalents — — — (34 ) — (34 ) Net change in cash and cash equivalents (342 ) (187 ) — (5 ) — (534 ) Cash and cash equivalents at beginning of period 444 514 3 539 — 1,500 Cash and cash equivalents at end of period $ 102 $ 327 $ 3 $ 534 $ — $ 966 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets (Dollars in Millions) Parent Guarantor Issuer Guarantor Non- Guarantors Eliminations Consolidated December 31, 2016 Assets Cash and cash equivalents $ 726 $ 670 $ 1 $ 654 $ — $ 2,051 Accounts receivable — 27 — 39 — 66 Accounts receivable, related party — 113 — — — 113 Other receivables 63 5 38 4,828 (4,924 ) 10 Inventories — 812 — 835 (2 ) 1,645 Other current assets 112 195 — 43 3 353 Total current assets 901 1,822 39 6,399 (4,923 ) 4,238 Property, plant and equipment, net 2 855 — 491 — 1,348 Trademarks and other intangible assets, net of accumulated amortization — 317 — 29,129 (2 ) 29,444 Goodwill — 3,453 9,853 2,686 — 15,992 Long-term intercompany notes receivable 1,390 — 73 148 (1,611 ) — Investment in subsidiaries 36,865 22,954 23,938 — (83,757 ) — Other assets and deferred charges 80 1,204 11 13 (1,235 ) 73 Total assets $ 39,238 $ 30,605 $ 33,914 $ 38,866 $ (91,528 ) $ 51,095 Liabilities and shareholders’ equity Accounts payable $ 1 $ 190 $ — $ 30 $ — $ 221 Tobacco settlement accruals — 2,326 — 172 — 2,498 Due to related party — 7 — — — 7 Deferred revenue, related party — 66 — — — 66 Current maturities of long-term debt 448 53 — — — 501 Dividends payable on common stock 656 — — — — 656 Other current liabilities 3,767 1,923 2 268 (4,924 ) 1,036 Total current liabilities 4,872 4,565 2 470 (4,924 ) 4,985 Long-term intercompany notes payable 148 — — 1,463 (1,611 ) — Long-term debt (less current maturities) 12,404 260 — — — 12,664 Long-term deferred income taxes, net — — — 10,839 (1,232 ) 9,607 Long-term retirement benefits (less current portion) 59 1,651 28 131 — 1,869 Long-term deferred revenue, related party — 39 — — — 39 Other noncurrent liabilities 44 153 — 23 — 220 Shareholders’ equity 21,711 23,937 33,884 25,940 (83,761 ) 21,711 Total liabilities and shareholders’ equity $ 39,238 $ 30,605 $ 33,914 $ 38,866 $ (91,528 ) $ 51,095 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 Other current assets 116 236 — 212 — 564 Total current assets 761 2,251 36 7,083 (4,976 ) 5,155 Property, plant and equipment, net 3 792 — 460 — 1,255 Trademarks and other intangible assets, net of accumulated amortization — 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 189 1,711 14 9 (1,693 ) 230 Total assets $ 39,687 $ 31,752 $ 34,269 $ 39,529 $ (93,137 ) $ 52,100 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 Long-term deferred income taxes, net — 1 — 10,892 (1,689 ) 9,204 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 $ 39,529 $ (93,137 ) $ 52,100 |
Quarterly Results of Operatio52
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | First Second Third Fourth 2016 Net sales $ 2,917 $ 3,195 $ 3,205 $ 3,186 Gross profit (1) 1,752 1,920 2,016 1,974 Net income (1)(2) 3,565 796 861 851 Per share data (3) Basic: Net income 2.50 0.56 0.60 0.60 Diluted: Net income 2.49 0.56 0.60 0.60 2015 Net sales $ 2,057 $ 2,403 $ 3,161 $ 3,054 Gross profit (4) 1,207 1,319 1,757 1,704 Net income (4)(5) 389 1,928 657 279 Per share data (3) Basic: Net income 0.36 1.70 0.46 0.20 Diluted: Net income 0.36 1.69 0.46 0.19 (1) Includes NPM Adjustment credits of $91 million in the first quarter of 2016, $98 million in the second quarter of 2016, $104 million in the third quarter of 2016 and $97 million in the fourth quarter of 2016, see “— Cost of Products Sold” in note 1. The fourth quarter of 2016 includes an MTM adjustment of $21 million. (2) First quarter of 2016 reflects the impact of the sale of the international rights to the NATURAL AMERICAN SPIRIT brand. Fourth quarter of 2016 includes an additional MTM adjustment expense of $24 million for a total of $45 million. (3) Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the quarters may not equal the total for the year. (4) Includes NPM Adjustment credits of $66 million in the first quarter of 2015, $69 million in the second quarter of 2015, $76 million in the third quarter of 2015 and $86 million in the fourth quarter of 2015, see “— Cost of Products Sold” in note 1. The fourth quarter of 2015 includes an MTM adjustment expense of $120 million. (5) Second quarter of 2015 reflects the impact of the Lorillard Merger and Divestiture. Fourth quarter of 2015 includes an additional MTM adjustment expense of $126 million for a total of $246 million. |
Business and Summary of Signi53
Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | Jan. 13, 2016USD ($) | Oct. 31, 2015USD ($) | Jun. 12, 2015USD ($)shares | Jul. 15, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2012 |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Asset sale | $ 7,100 | $ 5,015 | $ 7,056 | ||||||||||||||
Pre-tax gain on divestiture | 3,181 | $ 4,861 | 3,181 | ||||||||||||||
Common stock, stock split | two-for-one | ||||||||||||||||
BAT investment | $ 4,700 | $ 4,700 | 4,673 | ||||||||||||||
Stock split ratio | 2 | ||||||||||||||||
Operating cycle period of inventories | 12 months | ||||||||||||||||
Depreciation expense | $ 100 | 104 | $ 95 | ||||||||||||||
Percentage of allocable shares | 49.87% | ||||||||||||||||
NPM Adjustment credits | $ 290 | $ 170 | $ 97 | $ 104 | $ 98 | $ 91 | $ 86 | $ 76 | $ 69 | $ 66 | |||||||
Agreement period | 4 years | 5 years | |||||||||||||||
NPM historical adjustment | (34) | ||||||||||||||||
NPM performance adjustment | 295 | 282 | 311 | ||||||||||||||
NPM Additional adjustment credits recognized | 95 | 15 | |||||||||||||||
Advertising costs incurred | 80 | 140 | 140 | ||||||||||||||
Research and development costs | $ 101 | 107 | 88 | ||||||||||||||
Recognized tax position realized upon ultimate settlement | 50.00% | ||||||||||||||||
Defined benefit plan corridor percentage | 10.00% | ||||||||||||||||
Debt issuance costs | 68 | 92 | $ 68 | 92 | |||||||||||||
Reduction of short-term investments | 149 | 149 | |||||||||||||||
Reduction of mortgage-backed security | 10 | 10 | |||||||||||||||
ASU 2015-17 | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Reclassification from deferred income tax current asset to net of deferred income tax in long term liabilities | 900 | 1,000 | 900 | 1,000 | |||||||||||||
Level 3 | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Reduction of mortgage-backed security | 10 | 10 | |||||||||||||||
ASU 2015-07 | Level 2 | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Reduction of short-term investments | (785) | (819) | (785) | (819) | |||||||||||||
ASU 2015-07 | Level 3 | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Reduction of mortgage-backed security | $ (670) | $ (679) | (670) | (679) | |||||||||||||
ASU 2016-09 | Results of Operations | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Reduction in provision for income taxes if adopted | 28 | 17 | $ 12 | ||||||||||||||
RJR Tobacco | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
NPM Adjustment credits | $ 6 | 93 | |||||||||||||||
Minimum | Trademarks | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Remaining useful lives | 2 years | ||||||||||||||||
Minimum | Customer Relationships | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Remaining useful lives | 2 years | ||||||||||||||||
Maximum | Trademarks | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Remaining useful lives | 19 years | ||||||||||||||||
Maximum | Customer Relationships | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Remaining useful lives | 19 years | ||||||||||||||||
Buildings and improvements | Minimum | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives (in years) | 20 years | ||||||||||||||||
Buildings and improvements | Maximum | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives (in years) | 50 years | ||||||||||||||||
Machinery and equipment | Minimum | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives (in years) | 3 years | ||||||||||||||||
Machinery and equipment | Maximum | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives (in years) | 30 years | ||||||||||||||||
Computer software and software development | Maximum | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Estimated useful lives (in years) | 5 years | ||||||||||||||||
JTI Holding | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Asset sale | $ 5,000 | ||||||||||||||||
Pre-tax gain on divestiture | $ 4,900 | ||||||||||||||||
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] | |||||||||||||||||
BAT investment | $ 4,673 | ||||||||||||||||
Percentage of RAI's outstanding common stock | 42.00% | 42.00% | 42.00% | 42.00% | |||||||||||||
Lorillard Inc. | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Cash paid to acquire business | $ 25,800 | $ 18,205 | |||||||||||||||
Common stock, stock split | two-for-one | ||||||||||||||||
Stock split ratio | 2 | ||||||||||||||||
NPM Additional adjustment credits through 2018 | $ 5 |
Summary of Balances and Expense
Summary of Balances and Expenses for Software Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Balances: | |||
Unamortized software costs balance | $ 49 | $ 37 | |
Software costs - capitalized or included in construction-in-process | 27 | 13 | |
Expenses: | |||
Software amortization expense | $ 14 | $ 17 | $ 15 |
Certain Component of Cost of Pr
Certain Component of Cost of Products Sold (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
State Settlement Agreements | $ 2,727 | $ 2,403 | $ 1,917 |
FDA user fees | $ 194 | $ 174 | 135 |
Federal tobacco quota buyout | $ 163 |
Lorillard Merger, Divestiture56
Lorillard Merger, Divestiture and BAT Share Purchase - Additional Information (Detail) $ / shares in Units, $ in Millions | Jul. 27, 2015shares | Jun. 12, 2015USD ($)$ / sharesshares | Jul. 15, 2014USD ($) | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | ||||||||||||||
Common stock, stock split | two-for-one | |||||||||||||
Stock split ratio | 2 | |||||||||||||
Goodwill | $ 9,853 | |||||||||||||
Total net sales | $ 3,186 | $ 3,205 | $ 3,195 | $ 2,917 | $ 3,054 | $ 3,161 | $ 2,403 | $ 2,057 | $ 12,503 | 10,675 | $ 8,471 | |||
Interest expense related to acquisition | 626 | 570 | 286 | |||||||||||
Asset sale | $ 7,100 | 5,015 | 7,056 | |||||||||||
BAT investment | $ 4,700 | $ 4,700 | 4,673 | |||||||||||
Issuance of long-term debt | $ 9,000 | 8,975 | ||||||||||||
Selling, General and Administrative Expenses | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business acquisition transaction costs | 54 | $ 38 | ||||||||||||
BAT | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Shares issued after giving effect to stock split | shares | 155,360,518 | |||||||||||||
Common stock shares issued | shares | 77,680,259 | |||||||||||||
BAT and Subsidiaries | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Shares issued after giving effect to stock split | shares | 602,028,556 | |||||||||||||
Common stock shares issued | shares | 301,014,278 | |||||||||||||
BAT Affiliate | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
BAT investment | 4,673 | |||||||||||||
Percentage of RAI's outstanding common stock | 42.00% | 42.00% | 42.00% | 42.00% | ||||||||||
RJR Tobacco | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | $ 9,853 | 9,853 | ||||||||||||
Lorillard, Inc. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Conversion ratio of Lorillard common stock to RAI common stock | 0.2909 | |||||||||||||
Cash consideration per share | $ / shares | $ 50.50 | $ 50.50 | $ 50.50 | |||||||||||
Business acquisition, shares issued | shares | 104,706,847 | |||||||||||||
Shares issued, price per share | $ / shares | $ 72.15 | |||||||||||||
Shares issued after giving effect to stock split | shares | 209,413,694 | |||||||||||||
Common stock, stock split | two-for-one | |||||||||||||
Stock split ratio | 2 | |||||||||||||
Purchase price | $ 25,833 | |||||||||||||
Total net sales | 2,700 | |||||||||||||
Business combination debt issued | 9,000 | |||||||||||||
Business acquisition, debt assumed at fair value | $ 3,900 | 3,900 | ||||||||||||
Interest expense related to acquisition | $ 282 |
Schedule of Purchase Price (Det
Schedule of Purchase Price (Detail) - Lorillard, Inc. - USD ($) $ in Millions | Jun. 12, 2015 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||
Fair value of RAI common stock issued | $ 7,555 | |
Cash paid to Lorillard shareholders at $50.50 per share | $ 25,800 | 18,205 |
Cash paid for Lorillard stock options and stock appreciation rights | 73 | |
Purchase price | $ 25,833 |
Schedule of Purchase Price (Par
Schedule of Purchase Price (Parenthetical) (Detail) - $ / shares | Dec. 31, 2016 | Jun. 12, 2015 |
Lorillard, Inc. | ||
Business Acquisition [Line Items] | ||
Cash consideration per share | $ 50.50 | $ 50.50 |
Allocation of Purchase Price to
Allocation of Purchase Price to Assets Acquired and Liabilities assumed (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 12, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 1,058 | |||
Short-term investments | 347 | |||
Accounts and other receivables | 47 | |||
Inventories | 576 | |||
Income taxes receivable | 135 | |||
Other current assets | 1,673 | |||
Property, plant and equipment | 82 | |||
Trademarks and other intangible assets | 27,443 | |||
Goodwill | $ 15,992 | $ 15,993 | 9,853 | $ 8,016 |
Other assets and deferred charges | 207 | |||
Liabilities | ||||
Tobacco settlement accruals | 755 | |||
Other current liabilities | 602 | |||
Long-term debt (less current maturities) | $ 12,664 | $ 16,849 | 3,895 | |
Deferred income taxes, net | 9,998 | |||
Long-term retirement benefits (less current portion) | 274 | |||
Other noncurrent liabilities | 64 | |||
Allocation of purchase price | $ 25,833 |
Summary of Pre-tax Gain (Detail
Summary of Pre-tax Gain (Detail) - USD ($) $ in Millions | Jun. 12, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Discontinued Operations And Disposal Groups [Abstract] | |||
Purchase price | $ 7,056 | $ 5,015 | |
Net assets and liabilities divested | (2,026) | (154) | |
Goodwill associated with divested RJR Tobacco brands | (1,849) | ||
Gain on divestiture | $ 3,181 | $ 4,861 | $ 3,181 |
Sale of International Rights 61
Sale of International Rights to the Natural American Spirit Brand - Additional Information (Detail) - USD ($) $ in Millions | Jan. 13, 2016 | Jun. 12, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Sale Of International Brand Rights [Line Items] | ||||
Proceeds from divestitures | $ 7,100 | $ 5,015 | $ 7,056 | |
Pre-tax gain on divestiture | $ 3,181 | $ 4,861 | $ 3,181 | |
JTI Holding | ||||
Sale Of International Brand Rights [Line Items] | ||||
Proceeds from divestitures | $ 5,000 | |||
Pre-tax gain on divestiture | 4,900 | |||
NAS Brand | JTI Holding | ||||
Sale Of International Brand Rights [Line Items] | ||||
Proceeds from divestitures | 5,000 | |||
Pre-tax gain on divestiture | $ 4,900 | |||
Transaction period | 5 years |
Summary of Pre-tax Gain of Sale
Summary of Pre-tax Gain of Sale of International Rights (Detail) - USD ($) $ in Millions | Jun. 12, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Discontinued Operations And Disposal Groups [Abstract] | |||
Purchase price | $ 7,056 | $ 5,015 | |
Net assets and liabilities divested | (2,026) | (154) | |
Gain on divestiture | $ 3,181 | $ 4,861 | $ 3,181 |
Fair Value of Financial Assets
Fair Value of Financial Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents: | ||
Cash equivalents | $ 2,006 | $ 2,454 |
Short-term investments: | ||
Short-term investments | 149 | |
Other assets and deferred charges: | ||
Mortgage-backed security | 10 | |
Marketable equity security | 1 | |
Interest rate swaps | 53 | |
Corporate debt securities | ||
Short-term investments: | ||
Short-term investments | 96 | |
U.S. Government agency obligations | ||
Short-term investments: | ||
Short-term investments | 43 | |
Commercial paper | ||
Short-term investments: | ||
Short-term investments | 10 | |
Auction Rate Securities | ||
Other assets and deferred charges: | ||
Financial assets, fair value | 79 | |
Level 1 | ||
Cash and cash equivalents: | ||
Cash equivalents | $ 2,006 | 2,454 |
Other assets and deferred charges: | ||
Marketable equity security | 1 | |
Level 2 | ||
Other assets and deferred charges: | ||
Interest rate swaps | 53 | |
Level 2 | Corporate debt securities | ||
Short-term investments: | ||
Short-term investments | 96 | |
Level 2 | U.S. Government agency obligations | ||
Short-term investments: | ||
Short-term investments | 43 | |
Level 2 | Commercial paper | ||
Short-term investments: | ||
Short-term investments | 10 | |
Level 3 | ||
Other assets and deferred charges: | ||
Mortgage-backed security | 10 | |
Level 3 | Auction Rate Securities | ||
Other assets and deferred charges: | ||
Financial assets, fair value | $ 79 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | Jun. 12, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | |||
Fair value transfers between levels | $ 0 | $ 0 | |
Auction rate securities linked to corporate credit risk at par value | 95,000,000 | ||
Other than temporary impairment losses | 0 | 0 | |
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) | $ (13,000,000) | |
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 | ||
Interest Rate Swap | 8.125% guaranteed, notes due 2019 | RJR Tobacco | Lorillard Tobacco | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair value adjustment of notes | $ 7,000,000 |
Changes in Carrying Amounts of
Changes in Carrying Amounts of Goodwill by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Jun. 12, 2015 | Dec. 31, 2014 | ||
Goodwill [Line Items] | |||||
Goodwill | $ 19,783 | $ 19,784 | $ 11,807 | ||
Less: accumulated impairment charges | (3,791) | (3,791) | (3,791) | ||
Lorillard Merger goodwill | 9,853 | ||||
Divestiture goodwill | (1,849) | ||||
Reclassified to assets held for sale | [1] | (27) | |||
Foreign currency translation | (1) | ||||
Net goodwill balance | 15,992 | 15,993 | $ 9,853 | 8,016 | |
RJR Tobacco | |||||
Goodwill [Line Items] | |||||
Goodwill | 17,069 | 17,069 | 9,065 | ||
Less: accumulated impairment charges | (3,763) | (3,763) | (3,763) | ||
Lorillard Merger goodwill | 9,853 | 9,853 | |||
Divestiture goodwill | (1,849) | ||||
Net goodwill balance | 13,306 | 13,306 | 5,302 | ||
Santa Fe | |||||
Goodwill [Line Items] | |||||
Goodwill | 197 | 197 | 197 | ||
Net goodwill balance | 197 | 197 | 197 | ||
American Snuff | |||||
Goodwill [Line Items] | |||||
Goodwill | 2,501 | 2,501 | 2,501 | ||
Less: accumulated impairment charges | (28) | (28) | (28) | ||
Net goodwill balance | 2,473 | 2,473 | 2,473 | ||
All Other | |||||
Goodwill [Line Items] | |||||
Goodwill | 16 | 17 | 44 | ||
Reclassified to assets held for sale | [1] | (27) | |||
Foreign currency translation | (1) | ||||
Net goodwill balance | $ 16 | $ 17 | $ 44 | ||
[1] | Related to the sale of international rights to the NATURAL AMERICAN SPIRIT brand. See note 3. |
Changes in Carrying Amounts o66
Changes in Carrying Amounts of Indefinite-Lived Intangible Assets by Segment Not Subject to Amortization (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Trademarks | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Beginning Balance | $ 29,098 | $ 2,268 | |
Trademarks acquired in Lorillard Merger | 27,193 | ||
Trademarks divested | (344) | ||
Other intangibles divested | |||
Reclassified to assets held for sale | (19) | [1] | |
Ending Balance | 29,098 | 29,098 | |
Other | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Beginning Balance | 87 | 103 | |
Trademarks acquired in Lorillard Merger | |||
Trademarks divested | |||
Other intangibles divested | (12) | ||
Reclassified to assets held for sale | (4) | [1] | |
Ending Balance | 87 | 87 | |
RJR Tobacco | Trademarks | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Beginning Balance | 27,826 | 977 | |
Trademarks acquired in Lorillard Merger | 27,193 | ||
Trademarks divested | (344) | ||
Other intangibles divested | |||
Reclassified to assets held for sale | |||
Ending Balance | 27,826 | 27,826 | |
RJR Tobacco | Other | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Beginning Balance | 87 | 99 | |
Trademarks acquired in Lorillard Merger | |||
Trademarks divested | |||
Other intangibles divested | (12) | ||
Reclassified to assets held for sale | |||
Ending Balance | 87 | 87 | |
Santa Fe | Trademarks | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Beginning Balance | 136 | 155 | |
Trademarks acquired in Lorillard Merger | |||
Trademarks divested | |||
Other intangibles divested | |||
Reclassified to assets held for sale | (19) | [1] | |
Ending Balance | 136 | 136 | |
American Snuff | Trademarks | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Beginning Balance | 1,136 | 1,136 | |
Trademarks acquired in Lorillard Merger | |||
Trademarks divested | |||
Other intangibles divested | |||
Reclassified to assets held for sale | |||
Ending Balance | 1,136 | 1,136 | |
All Other | Other | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Beginning Balance | 4 | ||
Trademarks acquired in Lorillard Merger | |||
Trademarks divested | |||
Other intangibles divested | |||
Reclassified to assets held for sale | $ (4) | [1] | |
[1] | Related to the sale of international rights to the NATURAL AMERICAN SPIRIT brand. See note 3. |
Changes in Carrying Amounts o67
Changes in Carrying Amounts of Finite-lived Intangible Assets by Segment Subject to Amortization (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | $ 282 | ||
Amortization | (23) | $ (18) | $ (11) |
Ending Balance | 259 | 282 | |
Trademarks | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 23 | 19 | 26 |
Amortization | (6) | (6) | (7) |
Acquired in Merger | 10 | ||
Ending Balance | 17 | 23 | 19 |
Other | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 259 | 31 | 20 |
Amortization | (17) | (12) | (4) |
Acquired in Merger | 240 | 15 | |
Ending Balance | 242 | 259 | 31 |
RJR Tobacco | Trademarks | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 17 | 12 | 18 |
Amortization | (5) | (5) | (6) |
Acquired in Merger | 10 | ||
Ending Balance | 12 | 17 | 12 |
RJR Tobacco | Other | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 259 | 31 | 20 |
Intercompany transfer | (13) | ||
Amortization | (17) | (12) | (4) |
Acquired in Merger | 240 | 15 | |
Ending Balance | 229 | 259 | 31 |
American Snuff | Trademarks | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 6 | 7 | 8 |
Amortization | (1) | (1) | (1) |
Ending Balance | 5 | $ 6 | $ 7 |
All Other | Other | |||
Finite Lived Intangible Assets [Line Items] | |||
Intercompany transfer | 13 | ||
Ending Balance | $ 13 |
Details of Finite-Lived Intangi
Details of Finite-Lived Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Finite Lived Intangible Assets [Line Items] | ||||
Gross | $ 530 | $ 530 | ||
Accumulated Amortization | (271) | (248) | ||
Net | 259 | 282 | ||
Customer lists | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Gross | 240 | 240 | ||
Accumulated Amortization | (19) | (7) | ||
Net | 221 | 233 | ||
Contract manufacturing agreement | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Gross | 151 | 151 | ||
Accumulated Amortization | (143) | (139) | ||
Net | 8 | 12 | ||
Trademarks | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Gross | 124 | 124 | ||
Accumulated Amortization | (107) | (101) | ||
Net | 17 | 23 | $ 19 | $ 26 |
Other finite-lived intangibles | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Gross | 15 | 15 | ||
Accumulated Amortization | (2) | (1) | ||
Net | $ 13 | $ 14 |
Finite-Lived Intangible Assets
Finite-Lived Intangible Assets Future Amortization Expense (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 23 | |
2,018 | 22 | |
2,019 | 16 | |
2,020 | 15 | |
2,021 | 14 | |
Thereafter | 169 | |
Net | $ 259 | $ 282 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite Lived Intangible Assets [Line Items] | |||
Estimated future cash flows discount rate | 10.00% | 10.00% | 10.00% |
RJR Tobacco | |||
Finite Lived Intangible Assets [Line Items] | |||
Estimated future cash flows discount rate | 9.75% | 9.75% | 9.75% |
American Snuff | |||
Finite Lived Intangible Assets [Line Items] | |||
Estimated future cash flows discount rate | 9.75% | 9.75% | 9.75% |
Santa Fe | |||
Finite Lived Intangible Assets [Line Items] | |||
Estimated future cash flows discount rate | 10.25% | 10.25% | 10.25% |
Trademarks | |||
Finite Lived Intangible Assets [Line Items] | |||
Impairment of other intangible assets | $ 0 | $ 0 | $ 0 |
Asset Impairment and Exit Cha71
Asset Impairment and Exit Charges - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Schedule Of Asset Impairment And Exit Charges [Line Items] | |
Pre tax asset impairment and exit charges | $ 99 |
RJR Tobacco | |
Schedule Of Asset Impairment And Exit Charges [Line Items] | |
Pre tax asset impairment and exit charges | $ 99 |
Components of Calculation of In
Components of Calculation of Income Per Share (Detail) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | [1],[2] | Sep. 30, 2016 | [1],[2] | Jun. 30, 2016 | [1],[2] | Mar. 31, 2016 | [1],[2] | Dec. 31, 2015 | [3],[4] | Sep. 30, 2015 | [3],[4] | Jun. 30, 2015 | [3],[4] | Mar. 31, 2015 | [3],[4] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||||||||||
Income from continuing operations | $ 6,073 | $ 3,253 | $ 1,445 | ||||||||||||||||
Income from discontinued operations | 25 | ||||||||||||||||||
Net income | $ 851 | $ 861 | $ 796 | $ 3,565 | $ 279 | $ 657 | $ 1,928 | $ 389 | $ 6,073 | $ 3,253 | $ 1,470 | ||||||||
Basic weighted average shares, in thousands | 1,426,987 | 1,264,182 | 1,066,320 | ||||||||||||||||
Effect of dilutive potential shares: | |||||||||||||||||||
Restricted stock units | 2,946 | 3,533 | 3,620 | ||||||||||||||||
Diluted weighted average shares, in thousands | 1,429,933 | 1,267,715 | 1,069,940 | ||||||||||||||||
[1] | First quarter of 2016 reflects the impact of the sale of the international rights to the NATURAL AMERICAN SPIRIT brand. Fourth quarter of 2016 includes an additional MTM adjustment expense of $24 million for a total of $45 million. | ||||||||||||||||||
[2] | Includes NPM Adjustment credits of $91 million in the first quarter of 2016, $98 million in the second quarter of 2016, $104 million in the third quarter of 2016 and $97 million in the fourth quarter of 2016, see “— Cost of Products Sold” in note 1. The fourth quarter of 2016 includes an MTM adjustment of $21 million. | ||||||||||||||||||
[3] | Includes NPM Adjustment credits of $66 million in the first quarter of 2015, $69 million in the second quarter of 2015, $76 million in the third quarter of 2015 and $86 million in the fourth quarter of 2015, see “— Cost of Products Sold” in note 1. The fourth quarter of 2015 includes an MTM adjustment expense of $120 million. | ||||||||||||||||||
[4] | Second quarter of 2015 reflects the impact of the Lorillard Merger and Divestiture. Fourth quarter of 2015 includes an additional MTM adjustment expense of $126 million for a total of $246 million. |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Leaf tobacco | $ 1,436 | $ 1,495 |
Other raw materials | 77 | 110 |
Work in process | 81 | 88 |
Finished products | 165 | 173 |
Other | 25 | 22 |
Total | 1,784 | 1,888 |
LIFO allowance | (139) | (154) |
Inventory Net | $ 1,645 | $ 1,734 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |||
Inventories valued under LIFO | $ 791 | $ 922 | |
Effect of LIFO inventory liquidation on income | $ 15 | $ 50 | $ 2 |
Other Current Liabilities (Deta
Other Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Current [Abstract] | ||
Payroll and employee benefits | $ 268 | $ 210 |
Pension and postretirement benefits | 89 | 91 |
Marketing and advertising | 155 | 213 |
Excise, franchise and property tax | 172 | 217 |
Other | 352 | 503 |
Total | $ 1,036 | $ 1,234 |
Provision for Income Taxes from
Provision for Income Taxes from Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 2,794 | $ 3,313 | $ 809 |
State and other | 437 | 477 | 188 |
Subtotal | 3,231 | 3,790 | 997 |
Deferred: | |||
Federal | 350 | (597) | (151) |
State and other | 37 | (62) | (29) |
Subtotal | 387 | (659) | (180) |
Provision for income taxes | $ 3,618 | $ 3,131 | $ 817 |
Significant Components of Defer
Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Pension and postretirement liabilities | $ 759,000,000 | $ 916,000,000 |
Tobacco settlement accruals | 955,000,000 | 1,088,000,000 |
Other accrued liabilities | 169,000,000 | 175,000,000 |
Other noncurrent liabilities | 210,000,000 | 283,000,000 |
Subtotal | 2,093,000,000 | 2,462,000,000 |
Less: valuation allowance | 0 | (8,000,000) |
Deferred tax asset | 2,093,000,000 | 2,454,000,000 |
Deferred tax liabilities: | ||
LIFO inventories | (257,000,000) | (266,000,000) |
Property and equipment | (290,000,000) | (259,000,000) |
Trademarks and other intangibles | (10,972,000,000) | (11,002,000,000) |
Other | (181,000,000) | (131,000,000) |
Total deferred tax liabilities | (11,700,000,000) | (11,658,000,000) |
Net deferred tax asset (liability) | $ (9,607,000,000) | $ (9,204,000,000) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Capital loss carryforwards | $ 0 | $ 0 | |
Valuation allowance | $ 0 | 8,000,000 | |
Nondeductible goodwill | 1,849,000,000 | ||
Decrease in tax attributable to the release of a valuation allowance | (37,000,000) | ||
Federal statutory rate | 35.00% | ||
Income from discontinued operations, net of tax | $ 25,000,000 | ||
Undistributed foreign earnings | $ 393,000,000 | ||
Overseas investment of foreign earnings | 15,000,000 | ||
Planned overseas investment of foreign earnings | 52,000,000 | ||
Undistributed foreign earnings in excess of investment | 326,000,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 92,000,000 | ||
Puerto Rico subsidiaries | |||
Income Taxes [Line Items] | |||
Valuation allowance | $ 8,000,000 | ||
Puerto Rico subsidiaries | Lorillard Inc. | |||
Income Taxes [Line Items] | |||
Valuation allowance reversed | $ (8,000,000) |
Pre-Tax Income for Domestic and
Pre-Tax Income for Domestic and Foreign Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pre-tax income for domestic and foreign operations | |||
Domestic (includes U.S. exports) | $ 9,610 | $ 6,342 | $ 2,235 |
Foreign | 81 | 42 | 27 |
Income from continuing operations before income taxes | $ 9,691 | $ 6,384 | $ 2,262 |
Differences between Provision f
Differences between Provision for Income Taxes from Continuing Operations and Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Differences between the provision for income taxes from continuing operations and income taxes | |||
Income taxes computed at the statutory U.S. federal income tax rate | $ 3,392 | $ 2,233 | $ 792 |
State and local income taxes, net of federal tax benefits | 306 | 235 | 107 |
Domestic manufacturing deduction | (114) | (104) | (80) |
Nondeductible goodwill | 9 | 761 | |
Other items, net | 25 | 6 | (2) |
Provision for income taxes | $ 3,618 | $ 3,131 | $ 817 |
Effective tax rate | 37.30% | 49.00% | 36.10% |
Components of Deferred Tax Bene
Components of Deferred Tax Benefits Included in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Retirement benefits | $ 215 | $ 209 |
Long-term investments | 10 | |
Hedging instruments | 6 | |
Cumulative translation adjustment and other | 25 | 31 |
Other Comprehensive Income (Loss), Tax | $ 240 | $ 256 |
Accruals for Gross Unrecognized
Accruals for Gross Unrecognized Income Tax Benefits, Including Interest and Penalties (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 118 | $ 97 | $ 27 | $ 62 |
Accrued interest | 13 | 17 | ||
Accrued penalties | 7 | 8 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 138 | $ 122 |
Reconciliation of Gross Unrecog
Reconciliation of Gross Unrecognized Income Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of the unrecognized gross tax benefits | |||
Balance at beginning of year | $ 97 | $ 27 | $ 62 |
Gross increases related to current period tax positions | 30 | 28 | 5 |
Gross increases related to tax positions in prior periods | 3 | 46 | |
Gross decreases related to tax positions in prior periods | (3) | (1) | (31) |
Gross decreases related to audit settlements | (2) | (6) | |
Gross decreases related to lapse of applicable statute of limitations | (7) | (3) | (3) |
Balance at end of year | $ 118 | $ 97 | $ 27 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Detail) | Oct. 08, 2013USD ($) | Nov. 30, 2016 | Dec. 31, 2014USD ($) | Sep. 30, 2014 | Dec. 31, 2016USD ($)Extension | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Line Of Credit Facility [Line Items] | |||||||
Borrowings outstanding under the Credit Agreement | $ 0 | ||||||
Letters of credit outstanding amount | $ 6,000,000 | ||||||
Bridge Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Termination Date | Jun. 12, 2015 | ||||||
Amortization and fees | $ 48,000,000 | $ 39,000,000 | |||||
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 | 2,000,000,000 | |||||
Credit facility under maximum borrowing capacity | $ 2,350,000,000 | $ 2,350,000,000 | |||||
Credit facility maturity date | Dec. 18, 2019 | ||||||
New Credit Agreement | Extended Maturity | |||||||
Line Of Credit Facility [Line Items] | |||||||
Period of senior unsecured revolving credit facility | 12 months | ||||||
Credit facility, number of extensions of maturity date | Extension | 2 | ||||||
New Credit Agreement | Second Extended Maturity | |||||||
Line Of Credit Facility [Line Items] | |||||||
Period of senior unsecured revolving credit facility | 12 months | ||||||
Credit facility maturity date | Dec. 18, 2021 | ||||||
Credit Agreement | |||||||
Line Of Credit Facility [Line Items] | |||||||
Period of senior unsecured revolving credit facility | 4 years | ||||||
Credit facility under current borrowing capacity | $ 1,350,000,000 | ||||||
Sublimit on the aggregate amount of letters of credit | $ 300,000,000 | ||||||
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 Net of Discounts
Long-Term Debt Net of Discounts (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Jun. 12, 2015 | ||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 12,950 | |||
Unamortized debt issuance costs | (68) | $ (92) | ||
Total long-term debt at carrying value | 13,165 | 17,355 | ||
Less current maturities of long-term debt at carrying value | 501 | 506 | ||
Total long-term debt (less current maturities) at carrying value | 12,664 | 16,849 | $ 3,895 | |
RAI | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 12,666 | 16,723 | ||
Fair value adjustment of notes | 282 | 348 | ||
Unamortized discounts | (28) | (37) | ||
Unamortized debt issuance costs | (68) | (92) | ||
Total long-term debt at carrying value | 12,852 | 16,942 | ||
Less current maturities of long-term debt at carrying value | 448 | 420 | ||
Total long-term debt (less current maturities) at carrying value | 12,404 | 16,522 | ||
RAI | 3.500% notes due 08/04/2016 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 415 | |||
RAI | 6.750% notes due 06/15/2017 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 700 | |||
RAI | 2.300% notes due 08/21/2017 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 447 | 447 | ||
RAI | 7.750% notes due 06/01/2018 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 250 | |||
RAI | 2.300% notes due 06/12/2018 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 1,250 | 1,250 | ||
RAI | 8.125% notes due 06/23/2019 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | [1] | 669 | 669 | |
RAI | 6.875% notes due 05/01/2020 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 641 | 641 | ||
RAI | 3.250% notes due 06/12/2020 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 771 | 1,250 | ||
RAI | 4.000% notes due 06/12/2022 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 1,000 | 1,000 | ||
RAI | 3.250% notes due 11/01/2022 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 158 | 1,100 | ||
RAI | 3.750% notes due 05/20/2023 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 30 | 474 | ||
RAI | 4.850% notes due 09/15/2023 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 550 | 550 | ||
RAI | 4.450% notes due 06/12/2025 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 2,500 | 2,500 | ||
RAI | 5.700% notes due 08/15/2035 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 750 | 750 | ||
RAI | 7.250% notes due 06/15/2037 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 450 | 450 | ||
RAI | 8.125% notes due 05/01/2040 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 237 | 237 | ||
RAI | 7.000% notes due 08/04/2041 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 240 | 240 | ||
RAI | 4.750% notes due 11/01/2042 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 173 | 1,000 | ||
RAI | 6.150% notes due 09/15/2043 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 550 | 550 | ||
RAI | 5.850% notes due 08/15/2045 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 2,250 | 2,250 | ||
RJR Tobacco | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 284 | 377 | ||
Fair value adjustment of notes | 29 | 36 | ||
Total long-term debt at carrying value | 313 | 413 | ||
RJR Tobacco | 3.500% notes due 08/04/2016 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 85 | |||
RJR Tobacco | 2.300% notes due 08/21/2017 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 53 | 53 | ||
RJR Tobacco | 8.125% notes due 06/23/2019 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | [1] | 81 | 81 | |
RJR Tobacco | 6.875% notes due 05/01/2020 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 109 | 109 | ||
RJR Tobacco | 3.750% notes due 05/20/2023 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 19 | 26 | ||
RJR Tobacco | 8.125% notes due 05/01/2040 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | 13 | 13 | ||
RJR Tobacco | 7.000% notes due 08/04/2041 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 9 | $ 10 | ||
[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 Discoun86
Long-Term Debt Net of Discounts (Parenthetical) (Detail) - 8.125% notes due 2019 | 12 Months Ended |
Dec. 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 on adjusted percentage | 2.00% |
Maximum | |
Debt Instrument [Line Items] | |
Debt Instrument interest rate adjusted percentage | 8.125% |
Minimum | |
Debt Instrument [Line Items] | |
Debt Instrument interest rate adjusted percentage | 8.125% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | Mar. 05, 2016USD ($) | Feb. 22, 2016USD ($) | Oct. 31, 2012USD ($) | Dec. 31, 2016USD ($)$ / Note | Dec. 31, 2015USD ($) | Feb. 18, 2016USD ($) | Jun. 12, 2015USD ($) | May 31, 2012USD ($) | |
Debt Instrument [Line Items] | |||||||||
Repurchase of notes | $ 2,690,000,000 | ||||||||
Estimated fair value of RAI’s outstanding debt | $ 14,300,000,000 | $ 18,200,000,000 | |||||||
Debt effective interest rate | 5.00% | 4.60% | |||||||
Debt purchase amount in cash | $ 2,810,000,000 | ||||||||
Tender offer settlement date | Feb. 22, 2016 | ||||||||
Payment to repurchase tender notes excluding accrued and unpaid interest | $ 2,810,000,000 | ||||||||
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, recognized as expense | $ 16,000,000 | ||||||||
Loss on early extinguishment of debt | 90,000,000 | $ (239,000,000) | |||||||
Outstanding aggregate principle amount of debt redeemed | $ 500,000,000 | $ 450,000,000 | |||||||
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 | $ 501,000,000 | 506,000,000 | |||||||
Principal amount | 12,950,000,000 | ||||||||
Underwritten Public Offering | |||||||||
Debt Instrument [Line Items] | |||||||||
Sale of senior debt | $ 9,000,000,000 | ||||||||
Other (income) expense, net | |||||||||
Debt Instrument [Line Items] | |||||||||
Legal and bank fees | 239,000,000 | ||||||||
Expenses related to cash tender offer and redemption | $ 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 | ||||||||
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 | ||||||||
Interest Rate Swap | 6.750 % Senior Notes Due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Fair value adjustment of notes | $ 25,000,000 | ||||||||
Debt hedged with interest rate swap agreements | 700,000,000 | ||||||||
Lorillard Tobacco | |||||||||
Debt Instrument [Line Items] | |||||||||
Tender offer settlement date | Jul. 15, 2015 | ||||||||
Principal amount | $ 3,500,000,000 | ||||||||
Consideration premium per tender offer | $ / Note | 2.50 | ||||||||
Notes tendered principal amount | $ 1,000 | ||||||||
Lorillard Tobacco | 8.125% notes due 06/23/2019 | Interest Rate Swap | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate | 8.125% | ||||||||
Fair value adjustment of notes | 7,000,000 | ||||||||
RJR Tobacco | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase of notes | 8,000,000 | ||||||||
Principal amount | 284,000,000 | ||||||||
Principal Amount Notes Tendered in Exchange Offers | |||||||||
Debt Instrument [Line Items] | |||||||||
Fair value adjustment of notes | 282,000,000 | 348,000,000 | |||||||
Outstanding aggregate principle amount of debt redeemed | 415,000,000 | 450,000,000 | |||||||
Debt hedged with interest rate swap agreements | 448,000,000 | 420,000,000 | |||||||
Sale of senior debt | 12,700,000,000 | ||||||||
Principal amount | 12,666,000,000 | 16,723,000,000 | |||||||
Principal Amount Notes Tendered in Exchange Offers | 8.125% notes due 06/23/2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | [1] | 669,000,000 | $ 669,000,000 | ||||||
Principal Amount Notes Tendered in Exchange Offers | Lorillard Tobacco | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 3,100,000,000 | ||||||||
[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%. |
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 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
2,017 | $ 500 | |
2,018 | 1,250 | |
2,019 | 750 | |
2,020 | 1,521 | |
2022 and thereafter | 8,929 | |
Total principal maturities | 12,950 | |
RAI | ||
Debt Instrument [Line Items] | ||
2,017 | 447 | |
2,018 | 1,250 | |
2,019 | 669 | |
2,020 | 1,412 | |
2022 and thereafter | 8,888 | |
Total principal maturities | 12,666 | $ 16,723 |
RJR Tobacco | ||
Debt Instrument [Line Items] | ||
2,017 | 53 | |
2,019 | 81 | |
2,020 | 109 | |
2022 and thereafter | 41 | |
Total principal maturities | $ 284 |
Schedule of Securities and Tend
Schedule of Securities and Tender Offer (Detail) $ in Millions | Dec. 31, 2016USD ($)PriorityLevel | |
Debt Instrument [Line Items] | ||
Principal Amount | $ 12,950 | |
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 | 4 | [1] |
Percentage of Outstanding Tender Notes Purchased | 38.34% | [1] |
3.250% Senior Notes due 2020 | Tendered at Expiration | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 1,039 | [1] |
3.250% Senior Notes due 2020 | Accepted for Purchase | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 479 | [1] |
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 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Oct. 09, 2015Plaintiff | Dec. 31, 2016USD ($)LegalMatterTrial | Dec. 31, 2016USD ($)LegalMatterPlaintiffTrial | Dec. 31, 2015LegalMatter |
Loss Contingencies [Line Items] | ||||
Growers trust fund | $ | $ 5,200 | $ 5,200 | ||
Number of cases filed | 23 | |||
Number of cases pending | 304 | 304 | 268 | |
Number of cases pending in federal court | 34 | 34 | ||
Number of cases pending in state court | 252 | 252 | ||
UNITED STATES | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 287 | 287 | ||
Canada | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 17 | 17 | ||
Maryland | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending in state court | 52 | 52 | ||
Illinois | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending in state court | 52 | 52 | ||
Florida | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending in state court | 27 | 27 | ||
New York | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending in state court | 21 | 21 | ||
Missouri | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending in state court | 19 | 19 | ||
Massachusetts | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending in state court | 18 | 18 | ||
New Mexico | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending in state court | 14 | 14 | ||
California | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending in state court | 12 | 12 | ||
Wilcox | ||||
Loss Contingencies [Line Items] | ||||
Amount paid for verdicts including attorney's fees and interests | $ | $ 17 | |||
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 | 2,822 | 2,822 | ||
Number of plaintiffs | Plaintiff | 3,645 | |||
Number of cases pending in federal court | 13 | 13 | ||
Number of cases pending in state court | 2,809 | 2,809 | ||
Engle | Florida | ||||
Loss Contingencies [Line Items] | ||||
Number of claims filed | 10,000 | 10,000 | ||
Number of new claims filed | 0 | |||
Number of trials | Trial | 200 | 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 | 564 | ||
Number of plaintiffs | Plaintiff | 30 | 564 | ||
Broin II | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 2,406 | 2,406 | ||
Tribal Court | ||||
Loss Contingencies [Line Items] | ||||
Number of cases pending | 1 | 1 |
Categories of U.S. Tobacco-Rela
Categories of U.S. Tobacco-Related Cases Pending against RJR Tobacco (Detail) | Oct. 09, 2015Plaintiff | Dec. 31, 2016LegalMatterPlaintiff | |
Individual Smoking And Health Cases | |||
Loss Contingencies [Line Items] | |||
U.S. Case Numbers as of December 31, 2016 | 132 | ||
Change in Number of Cases Since September 30, 2016 Increase/(Decrease) | 7 | ||
West Virginia IPIC | |||
Loss Contingencies [Line Items] | |||
U.S. Case Numbers as of December 31, 2016 | [1] | 1 | |
Change in Number of Cases Since September 30, 2016 Increase/(Decrease) | [1] | 0 | |
Number of plaintiffs | Plaintiff | 30 | 564 | |
Increase/ (Decrease) in Number of Plaintiffs | Plaintiff | 0 | ||
Engle | |||
Loss Contingencies [Line Items] | |||
U.S. Case Numbers as of December 31, 2016 | [2] | 2,822 | |
Change in Number of Cases Since September 30, 2016 Increase/(Decrease) | [2] | (66) | |
Number of plaintiffs | Plaintiff | 3,645 | ||
Increase/ (Decrease) in Number of Plaintiffs | Plaintiff | (110) | ||
Broin II | |||
Loss Contingencies [Line Items] | |||
U.S. Case Numbers as of December 31, 2016 | 2,406 | ||
Change in Number of Cases Since September 30, 2016 Increase/(Decrease) | (15) | ||
Class Action | |||
Loss Contingencies [Line Items] | |||
U.S. Case Numbers as of December 31, 2016 | 25 | ||
Change in Number of Cases Since September 30, 2016 Increase/(Decrease) | 1 | ||
Filter Cases | |||
Loss Contingencies [Line Items] | |||
U.S. Case Numbers as of December 31, 2016 | 78 | ||
Change in Number of Cases Since September 30, 2016 Increase/(Decrease) | 4 | ||
Healthcare Cost Recovery Cases | |||
Loss Contingencies [Line Items] | |||
U.S. Case Numbers as of December 31, 2016 | 2 | ||
Change in Number of Cases Since September 30, 2016 Increase/(Decrease) | 0 | ||
State Settlement Agreements Enforcement And Validity Adjustments | |||
Loss Contingencies [Line Items] | |||
U.S. Case Numbers as of December 31, 2016 | 28 | ||
Change in Number of Cases Since September 30, 2016 Increase/(Decrease) | 0 | ||
Other Litigation And Developments | |||
Loss Contingencies [Line Items] | |||
U.S. Case Numbers as of December 31, 2016 | 21 | ||
Change in Number of Cases Since September 30, 2016 Increase/(Decrease) | 0 | ||
[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 will fluctuate as cases are dismissed or if any of the dismissed cases are appealed. |
Categories of U.S. Tobacco-Re92
Categories of U.S. Tobacco-Related Cases Pending against RJR Tobacco (Parenthetical) (Detail) - LegalMatter | Dec. 31, 2016 | Dec. 31, 2015 |
Loss Contingencies [Line Items] | ||
Number of cases pending | 304 | 268 |
West Virginia IPIC | ||
Loss Contingencies [Line Items] | ||
Number of cases pending | 564 |
Commitments and Contingencies93
Commitments and Contingencies - Additional Information 1 (Detail) | 1 Months Ended | |
Nov. 30, 1998LegalMatterState | Dec. 31, 2016LegalMatterCase | |
Loss Contingencies [Line Items] | ||
Number of states involved in MSA | State | 46 | |
Previously settled cases | 4 | |
Cases scheduled for trial | 49 | |
Broin II Cases | ||
Loss Contingencies [Line Items] | ||
Cases scheduled for trial | 5 | |
Individual Smoking And Health Cases | ||
Loss Contingencies [Line Items] | ||
Cases scheduled for trial | 6 | |
Filter Cases | ||
Loss Contingencies [Line Items] | ||
Cases scheduled for trial | 34 | |
Nonsmoking And Health Cases | ||
Loss Contingencies [Line Items] | ||
Cases scheduled for trial | 4 | |
Engle | ||
Loss Contingencies [Line Items] | ||
Cases scheduled for trial | 115 | |
Number of cases tried | Case | 120 | |
Individual Smoking And Health Engle Progeny Filter And Healthcare Cost Recovery Cases | ||
Loss Contingencies [Line Items] | ||
Number of cases tried | 124 | |
Number of mistrials declared | 9 | |
Verdicts returned for tobacco companies | 60 | |
Individual Smoking And Health Engle Progeny Filter And Healthcare Cost Recovery Cases | Florida | ||
Loss Contingencies [Line Items] | ||
Number of cases tried | 39 | |
Number of verdicts returned for tobacco companies by mistrial | 19 | |
Verdicts returned for plaintiff | 57 | |
Number of cases dismissed | 4 | |
Number of cases under retrial on amount of damages | 1 | |
Individual Smoking And Health Engle Progeny Filter And Healthcare Cost Recovery Cases | California | ||
Loss Contingencies [Line Items] | ||
Number of cases tried | 1 | |
Verdicts returned for plaintiff | 1 | |
Individual Smoking And Health Engle Progeny Filter And Healthcare Cost Recovery Cases | New Jersey | ||
Loss Contingencies [Line Items] | ||
Number of cases tried | 1 |
Commitments and Contingencies94
Commitments and Contingencies - Additional Information 2 (Detail) | Oct. 09, 2015PlaintiffCase | Dec. 31, 2016USD ($)LegalMatterPlaintiffCaseClaim | Dec. 31, 2015USD ($)LegalMatter | Dec. 29, 2016USD ($) | Dec. 22, 2016USD ($) | Dec. 19, 2016USD ($) | Dec. 16, 2016USD ($) | Dec. 01, 2016USD ($) | Nov. 28, 2016USD ($) | Nov. 18, 2016USD ($) | Nov. 16, 2016USD ($) | Nov. 14, 2016USD ($) | Nov. 10, 2016USD ($) | Nov. 05, 2016USD ($) | Nov. 03, 2016USD ($) | Nov. 02, 2016USD ($) | Oct. 26, 2016USD ($) | Oct. 24, 2016USD ($) | Jul. 31, 2015USD ($) | Jul. 08, 2015USD ($) | Jul. 01, 2015USD ($) | Aug. 31, 2014USD ($) | Jul. 30, 2014USD ($) | Dec. 05, 2010USD ($) | May 26, 2010USD ($) |
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of cases pending | LegalMatter | 304 | 268 | |||||||||||||||||||||||
Number of cases pending in state court | LegalMatter | 252 | ||||||||||||||||||||||||
Number of cases pending in federal court | LegalMatter | 34 | ||||||||||||||||||||||||
Florida | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of cases pending in state court | LegalMatter | 27 | ||||||||||||||||||||||||
Florida Bond Cap Total | $ 200,000,000 | ||||||||||||||||||||||||
Florida Bond Cap Per Case | $ 5,000,000 | ||||||||||||||||||||||||
Engle | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of cases tried | Case | 120 | ||||||||||||||||||||||||
Punitive damages | $ 145,000,000,000 | ||||||||||||||||||||||||
Number of cases pending | LegalMatter | 2,822 | ||||||||||||||||||||||||
Number of plaintiffs | Plaintiff | 3,645 | ||||||||||||||||||||||||
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 | 2,809 | ||||||||||||||||||||||||
Number of cases pending in federal court | LegalMatter | 13 | ||||||||||||||||||||||||
Number of cases filed but not served | LegalMatter | 9 | ||||||||||||||||||||||||
Litigation settlement, amount | $ 100,000,000 | ||||||||||||||||||||||||
Number of cases became final | LegalMatter | 37 | ||||||||||||||||||||||||
Amount paid for verdicts | $ 297,800,000 | ||||||||||||||||||||||||
Payment for compensatory and punitive damages | 216,900,000 | ||||||||||||||||||||||||
Payment for attorney fees and interest | $ 80,900,000 | ||||||||||||||||||||||||
Engle | Lorillard Tobacco | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Litigation settlement, amount | $ 15,000,000 | ||||||||||||||||||||||||
Konzelman | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault to plaintiff | 15.00% | 15.00% | |||||||||||||||||||||||
Compensatory damages | $ 8,800,000 | $ 8,800,000 | |||||||||||||||||||||||
Punitive damages | $ 20,000,000 | $ 20,000,000 | |||||||||||||||||||||||
Johnston | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault to plaintiff | 10.00% | 10.00% | |||||||||||||||||||||||
Compensatory damages | $ 7,500,000 | $ 6,750,000 | $ 7,500,000 | ||||||||||||||||||||||
Punitive damages | $ 14,000,000 | $ 14,000,000 | $ 14,000,000 | ||||||||||||||||||||||
Ledo | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault to plaintiff | 51.00% | 51.00% | |||||||||||||||||||||||
Compensatory damages | $ 6,000,000 | $ 2,940,000 | $ 6,000,000 | ||||||||||||||||||||||
Howles | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Compensatory damages | 4,000,000 | $ 4,000,000 | |||||||||||||||||||||||
Punitive damages | $ 3,000,000 | ||||||||||||||||||||||||
Howles | Other Defendant | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault | 50.00% | 50.00% | |||||||||||||||||||||||
Compensatory damages | $ 3,000,000 | ||||||||||||||||||||||||
Punitive damages | 3,000,000 | ||||||||||||||||||||||||
Ford | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault to plaintiff | 85.00% | 85.00% | |||||||||||||||||||||||
Compensatory damages | $ 1,020,000 | $ 1,020,000 | |||||||||||||||||||||||
Stanley Martin | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault to plaintiff | 32.00% | 32.00% | |||||||||||||||||||||||
Compensatory damages | $ 5,410,000 | $ 5,410,000 | |||||||||||||||||||||||
Stanley Martin | Other Defendant | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault | 46.00% | 46.00% | |||||||||||||||||||||||
Punitive damages | $ 450,000 | $ 450,000 | |||||||||||||||||||||||
Pardue | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault to plaintiff | 25.00% | 25.00% | |||||||||||||||||||||||
Compensatory damages | $ 5,900,000 | $ 5,900,000 | |||||||||||||||||||||||
Punitive damages | $ 6,750,000 | $ 6,750,000 | |||||||||||||||||||||||
Pardue | Other Defendant | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault | 25.00% | 25.00% | |||||||||||||||||||||||
Punitive damages | $ 6,750,000 | ||||||||||||||||||||||||
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 | $ 7,980,000 | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Bond | 9,100,000 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
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 pending | LegalMatter | 564 | ||||||||||||||||||||||||
Number of plaintiffs | Plaintiff | 30 | 564 | |||||||||||||||||||||||
Number of cases scheduled for trial | Case | 5 | ||||||||||||||||||||||||
Various Smokeless Manufacturers | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of plaintiffs | Plaintiff | 41 | ||||||||||||||||||||||||
Federal | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of federal cases settled | LegalMatter | 400 | ||||||||||||||||||||||||
Number of federal cases tried | LegalMatter | 12 | ||||||||||||||||||||||||
Number of cases filed by different lawyers | LegalMatter | 2 | ||||||||||||||||||||||||
RJR Tobacco or Lorillard Tobacco | Engle | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of cases tried | LegalMatter | 11 | ||||||||||||||||||||||||
RJR Tobacco or Lorillard Tobacco | Filter Cases | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of cases tried | LegalMatter | 0 | ||||||||||||||||||||||||
RJR Tobacco | Engle | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Litigation settlement, amount | $ 42,500,000 | ||||||||||||||||||||||||
RJR Tobacco | Konzelman | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault | 85.00% | 85.00% | |||||||||||||||||||||||
Compensatory damages | $ 7,480,000 | ||||||||||||||||||||||||
Punitive damages | $ 20,000,000 | ||||||||||||||||||||||||
Bond | $ 5,000,000 | ||||||||||||||||||||||||
RJR Tobacco | Johnston | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault | 90.00% | 90.00% | |||||||||||||||||||||||
RJR Tobacco | Ledo | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault | 49.00% | 49.00% | |||||||||||||||||||||||
RJR Tobacco | Howles | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault | 50.00% | 50.00% | |||||||||||||||||||||||
Compensatory damages | 2,000,000 | ||||||||||||||||||||||||
Punitive damages | $ 3,000,000 | ||||||||||||||||||||||||
RJR Tobacco | Ford | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault | 15.00% | 15.00% | |||||||||||||||||||||||
RJR Tobacco | Stanley Martin | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault | 22.00% | 22.00% | |||||||||||||||||||||||
Punitive damages | $ 200,000 | $ 200,000 | |||||||||||||||||||||||
RJR Tobacco | Pardue | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault | 50.00% | 50.00% | |||||||||||||||||||||||
Compensatory damages | $ 5,900,000 | ||||||||||||||||||||||||
Punitive damages | $ 6,750,000 | ||||||||||||||||||||||||
RJR Tobacco Indemnitee or Three | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of cases pending | LegalMatter | 132 | ||||||||||||||||||||||||
RJR Tobacco Indemnitee or Three | Individual Smoking And Health Cases | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of cases pending | LegalMatter | 1 | ||||||||||||||||||||||||
RJR Tobacco and Other Manufacturer | Major | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Allocation of fault | 33.00% | ||||||||||||||||||||||||
Compensatory damages | $ 17,740,000 | ||||||||||||||||||||||||
Reynolds Defendants | Various Smokeless Manufacturers | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of claims | Claim | 14 | ||||||||||||||||||||||||
Philip Morris | Engle | |||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Litigation settlement, amount | $ 42,500,000 |
Verdicts in Individual Engle Pr
Verdicts in Individual Engle Progeny Cases have been Tried and Remain Pending (Detail) - USD ($) | Dec. 31, 2016 | Dec. 16, 2016 | Nov. 16, 2016 | Nov. 10, 2016 | Nov. 03, 2016 | Nov. 02, 2016 | Oct. 24, 2016 | Sep. 28, 2016 | Sep. 23, 2016 | Sep. 22, 2016 | Aug. 15, 2016 | Jul. 01, 2016 | May 19, 2016 | May 16, 2016 | May 11, 2016 | Apr. 29, 2016 | Apr. 26, 2016 | Apr. 21, 2016 | Feb. 12, 2016 | Jan. 26, 2016 | Dec. 22, 2015 | Dec. 18, 2015 | Dec. 09, 2015 | Oct. 02, 2015 | Sep. 30, 2015 | Sep. 11, 2015 | Sep. 10, 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 | Aug. 28, 2014 | Jul. 17, 2014 | Jun. 23, 2014 | May 15, 2014 | Sep. 20, 2013 | Jul. 31, 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 | May 17, 2012 | Oct. 31, 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] | $ 212,186,620 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | 227,353,075 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Verdicts In Individual Cases Pending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [2] | $ 4,110,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | 25,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Putney | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | 4,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 2,500,000 | $ 2,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Putney | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 30.00% | 30.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mathis | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[3] | $ 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mathis | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 55.00% | 55.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oshinsky-Blacker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 1,539,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oshinsky-Blacker | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 25.00% | 25.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sherry Smith | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[3] | $ 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sherry Smith | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 65.00% | 65.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prentice | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 2,560,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prentice | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 40.00% | 40.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Konzelman | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 7,476,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Konzelman | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 85.00% | 85.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ledo | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 2,940,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ledo | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 49.00% | 49.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Johnston | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 6,750,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 14,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Johnston | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 90.00% | 90.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Searcy | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[3] | $ 500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 1,670,000 | $ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Searcy | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 30.00% | 30.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Howles | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Howles | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 50.00% | 50.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ford | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 153,430 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ford | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 15.00% | 15.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Martin | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 1,190,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Martin | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 22.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grossman | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | $ 11,514,000 | [1] | $ 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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) | $ 4,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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] | $ 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) | $ 13,975,000 | [1] | $ 14,000,000 | $ 21,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 25,000,000 | $ 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) | $ 670,000 | [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],[3] | $ 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
O'Hara | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | $ 14,700,000 | [1] | 14,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 20,000,000 | $ 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
O'Hara | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 85.00% | 85.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marchese | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 225,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 250,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marchese | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 22.50% | 22.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Barbose | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[3] | $ 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],[3] | $ 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],[3] | $ 5,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ahrens | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 44.00% | 44.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Turner | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 2,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Turner | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 80.00% | 80.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Enochs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 13,860,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 6,250,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Enochs | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 66.00% | 66.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dion | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[3] | $ 12,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 30,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dion | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 75.00% | 75.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nally | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[3] | $ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nally | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 75.00% | 75.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
McCabe | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 1,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 6,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
McCabe | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 30.00% | 30.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sermons | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 3,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 17,075 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sermons | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pardue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[3] | $ 3,923,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive Damages | $ 6,750,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pardue | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 50.00% | 50.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[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 approximately $13.3 million or approximately $1.6 million in attorneys’ fees and statutory interest in Ward. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | The court did not apply comparative fault in the final judgment. |
Verdicts in Individual Engle 96
Verdicts in Individual Engle Progeny Cases have been Tried and Remain Pending (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Verdicts In Individual Cases Pending | |
Loss Contingencies [Line Items] | |
Payment for attorney fees and interest | $ 13.3 |
Ward | |
Loss Contingencies [Line Items] | |
Payment for attorney fees and interest | $ 1.6 |
Commitments and Contingencies97
Commitments and Contingencies - Additional Information 3 (Detail) - USD ($) | Jan. 04, 2017 | Dec. 31, 2016 | Aug. 31, 2016 | Aug. 31, 2013 | Jul. 31, 2013 | Aug. 31, 2010 | Jun. 30, 2010 | Apr. 29, 2010 | Apr. 26, 2010 | ||
Loss Contingencies [Line Items] | |||||||||||
Compensatory damages (as adjusted) | [1] | $ 212,186,620 | |||||||||
Punitive damages - adjusted | 227,353,075 | ||||||||||
Outstanding Judgments | 439,539,695 | ||||||||||
Putney | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Compensatory damages (as adjusted) | $ 4,500,000 | ||||||||||
Punitive damages - adjusted | $ 2,500,000 | $ 2,500,000 | |||||||||
Punitive damages | $ 2,500,000 | ||||||||||
Allocation of fault to plaintiff | 35.00% | ||||||||||
Compensatory damages | $ 15,100,000 | ||||||||||
Putney | RJR Tobacco | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Punitive damages | $ 2,500,000 | ||||||||||
Allocation of fault | 30.00% | 30.00% | |||||||||
Putney | Philip Morris | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Punitive damages | $ 2,500,000 | ||||||||||
Putney | Other Defendant | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Allocation of fault | 35.00% | ||||||||||
Grossman | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Compensatory damages (as adjusted) | $ 11,514,000 | [1] | $ 484,000 | ||||||||
Punitive damages - adjusted | $ 22,500,000 | ||||||||||
Punitive damages | $ 22,500,000 | ||||||||||
Allocation of fault to plaintiff | 25.00% | 70.00% | |||||||||
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 | RJR Tobacco | Subsequent Event | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Filed motion for rehearing date | Feb. 6, 2017 | ||||||||||
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. |
Commitments and Contingencies98
Commitments and Contingencies - Additional Information 4 (Detail) - USD ($) | Dec. 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 | $ 227,353,075 | ||||||||||||
Compensatory damages (as adjusted) | [1] | 212,186,620 | |||||||||||
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 approximately $13.3 million or approximately $1.6 million in attorneys’ fees and statutory interest in Ward. |
Commitments and Contingencies99
Commitments and Contingencies - Additional Information 5 (Detail) - Calloway - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | May 31, 2012 | May 17, 2012 | |
Loss Contingencies [Line Items] | |||
Compensatory damages | $ 20,500 | ||
Allocation of fault to plaintiff | 20.50% | ||
Share of damages | $ 25,000 | ||
Notice of appeal filed date | Oct. 21, 2016 | ||
Lorillard Tobacco | |||
Loss Contingencies [Line Items] | |||
Allocation of fault | 18.00% | 18.00% | |
Punitive damages | 12,600 | ||
Other Defendant | |||
Loss Contingencies [Line Items] | |||
Allocation of fault | 34.50% | ||
RJR Tobacco | |||
Loss Contingencies [Line Items] | |||
Allocation of fault | 27.00% | 27.00% | |
Punitive damages | $ 17,250 |
Commitments and Contingencie100
Commitments and Contingencies - Additional Information 6 (Detail) - James Smith - USD ($) $ in Thousands | Dec. 31, 2016 | Oct. 18, 2012 | Oct. 17, 2012 |
Loss Contingencies [Line Items] | |||
Punitive damages | $ 20 | ||
Allocation of fault to plaintiff | 45.00% | ||
Compensatory damages | $ 600 | ||
Total damages | 620 | ||
Bond | $ 620 | ||
RJR Tobacco | |||
Loss Contingencies [Line Items] | |||
Allocation of fault | 55.00% | 55.00% |
Commitments and Contingencie101
Commitments and Contingencies - Additional Information 7 (Detail) - USD ($) | Dec. 31, 2016 | Apr. 11, 2016 | Mar. 14, 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] | $ 212,186,620 | ||||||||||||
Punitive damages - adjusted | 227,353,075 | |||||||||||||
Evers | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Allocation of fault to plaintiff | 31.00% | |||||||||||||
Compensatory damages | $ 2,950,000 | $ 3,230,000 | ||||||||||||
Punitive damages | $ 12,360,000 | $ 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 | |||||||||||||
Evers | RJR Tobacco | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Allocation of fault | 60.00% | 60.00% | ||||||||||||
Total damages | $ 1,770,000 | |||||||||||||
Bond | $ 5,000,000 | |||||||||||||
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],[2] | $ 500,000 | ||||||||||||
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 Contingencie102
Commitments and Contingencies - Additional Information 8 (Detail) - USD ($) | Dec. 31, 2016 | 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] | $ 212,186,620 | ||||||||
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 | |||||||||
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 | |||||||||
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 | |||||||||
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 approximately $13.3 million or approximately $1.6 million in attorneys’ fees and statutory interest in Ward. |
Commitments and Contingencie103
Commitments and Contingencies - Additional Information 9 (Detail) - USD ($) | Dec. 31, 2016 | Feb. 27, 2014 | Sep. 30, 2013 | Sep. 20, 2013 |
Gafney | ||||
Loss Contingencies [Line Items] | ||||
Allocation of fault to plaintiff | 34.00% | |||
Compensatory damages | $ 5,800,000 | |||
Total damages | $ 1,900,000 | |||
Gafney | Lorillard Tobacco | ||||
Loss Contingencies [Line Items] | ||||
Allocation of fault | 33.00% | 33.00% | ||
Total damages | $ 1,900,000 | |||
Gafney | RJR Tobacco | ||||
Loss Contingencies [Line Items] | ||||
Allocation of fault | 33.00% | 33.00% | ||
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 Contingencie104
Commitments and Contingencies - Additional Information 10 (Detail) - Burkhart - USD ($) $ in Thousands | Dec. 31, 2016 | May 16, 2014 | May 15, 2014 |
Loss Contingencies [Line Items] | |||
Allocation of fault to plaintiff | 50.00% | ||
Compensatory damages | $ 5,000 | ||
Lorillard Tobacco | |||
Loss Contingencies [Line Items] | |||
Allocation of fault | 10.00% | 10.00% | |
Punitive damages | $ 500 | ||
Other Defendant | |||
Loss Contingencies [Line Items] | |||
Allocation of fault | 15.00% | ||
Punitive damages | 750 | ||
RJR Tobacco | |||
Loss Contingencies [Line Items] | |||
Allocation of fault | 25.00% | 25.00% | |
Punitive damages | $ 1,250 |
Commitments and Contingencie105
Commitments and Contingencies - Additional Information 12 (Detail) - USD ($) | Nov. 30, 2016 | Oct. 27, 2016 | Dec. 31, 2016 | Feb. 28, 2015 | Jan. 27, 2015 | Sep. 24, 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] | $ 212,186,620 | ||||||||||
Bakst (Odom) | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Allocation of fault to plaintiff | 25.00% | |||||||||||
Compensatory damages | $ 6,000,000 | |||||||||||
Compensatory damages (as adjusted) | 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% | ||||||||||
Filed motion for rehearing date | Jan. 9, 2017 | |||||||||||
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 | |||||||||||
Punitive damages | $ 8,500,000 | |||||||||||
Bond | $ 5,000,000 | |||||||||||
Litigation settlement, amount | $ 17,000,000 | |||||||||||
[1] | Unless otherwise noted, compensatory damages in these cases are adjusted to reflect the jury’s allocation of comparative fault. Punitive damages are not so adjusted. The amounts listed above do not include attorneys’ fees or statutory interest that may apply to the judgments and such fees and interest may be material. | |||||||||||
[2] | The court did not apply comparative fault in the final judgment. |
Commitments and Contingencie106
Commitments and Contingencies - Additional Information 13 (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Nov. 30, 2014 | Oct. 22, 2014 | Oct. 20, 2014 | Oct. 10, 2014 | Aug. 28, 2014 |
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 Contingencie107
Commitments and Contingencies - Additional Information 14 (Detail) | Oct. 31, 1997USD ($) | Dec. 31, 2016USD ($)LegalMatter | Jan. 31, 2017USD ($) | Dec. 29, 2016USD ($) | Dec. 22, 2016USD ($) | Dec. 19, 2016USD ($) | Dec. 16, 2016USD ($) | Dec. 14, 2016USD ($) | Dec. 01, 2016USD ($) | Nov. 28, 2016USD ($) | Nov. 18, 2016USD ($) | Nov. 16, 2016USD ($) | Nov. 14, 2016USD ($) | Nov. 10, 2016USD ($) | Nov. 05, 2016USD ($) | Nov. 03, 2016USD ($) | Nov. 02, 2016USD ($) | Oct. 26, 2016USD ($) | Oct. 24, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 29, 2016USD ($) | Sep. 28, 2016USD ($) | Sep. 23, 2016USD ($) | Sep. 22, 2016USD ($) | Aug. 15, 2016USD ($) | Jul. 31, 2016USD ($) | Jul. 19, 2016USD ($) | Jul. 06, 2016USD ($) | Jul. 01, 2016USD ($) | May 27, 2016USD ($) | May 25, 2016USD ($) | May 20, 2016USD ($) | May 19, 2016USD ($) | May 17, 2016USD ($) | May 16, 2016USD ($) | May 12, 2016USD ($) | May 11, 2016USD ($) | May 09, 2016USD ($) | Apr. 29, 2016USD ($) | Apr. 27, 2016USD ($) | Apr. 26, 2016USD ($) | Apr. 22, 2016USD ($) | Apr. 21, 2016USD ($) | Apr. 13, 2016USD ($) | Mar. 31, 2016USD ($) | Feb. 29, 2016USD ($) | 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. 02, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 11, 2015USD ($) | Sep. 10, 2015USD ($) | Sep. 08, 2015USD ($) | Sep. 01, 2015USD ($) | Aug. 31, 2015USD ($) | Aug. 07, 2015USD ($) | Aug. 06, 2015USD ($) | Jul. 17, 2015USD ($) | 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 ($) | Nov. 21, 2014USD ($) | Nov. 18, 2014USD ($) | ||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 212,186,620 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | 227,353,075 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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] | $ 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) | $ 13,975,000 | [1] | $ 14,000,000 | $ 21,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 25,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 25,000,000 | $ 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deadline date to file notice of appeal | Jan. 20, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) | $ 670,000 | [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],[2] | $ 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
O'Hara | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
O'Hara | 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 | $ 450,000 | $ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 225,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 475,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | 250,000 | $ 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% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Barbose | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 15.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[2] | $ 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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],[2] | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | 12,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 12,500,000 | $ 12,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ledoux | Minimum | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ledoux | Maximum | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 2.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 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% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ahrens | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 32.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 9,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[2] | $ 5,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 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% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Turner | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 20.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 2,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Turner | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 80.00% | 80.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | 2,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Enochs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 22.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 13,900,000 | $ 21,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 13,860,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 3,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 6,250,000 | $ 6,250,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 6,250,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Enochs | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 66.00% | 66.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Enochs | Other Defendant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 12.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dion | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 25.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[2] | $ 12,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 30,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 30,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dion | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 75.00% | 75.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nally | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 25.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[2] | $ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nally | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 75.00% | 75.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
McCabe | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 70.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 1,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 6,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 6,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
McCabe | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 30.00% | 30.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sermons | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 80.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 65,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 3,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 17,075 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sermons | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 17,075 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sermons | Other Defendant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 15.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 51,225 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Varner | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 75.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 1,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Varner | Other Defendant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 25.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 375,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mathis | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[2] | $ 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mathis | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 45.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 55.00% | 55.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oshinsky-Blacker | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 15.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 6,150,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 1,539,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oshinsky-Blacker | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 25.00% | 25.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oshinsky-Blacker | Other Defendant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 60.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sherry Smith | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 35.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[2] | $ 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sherry Smith | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 65.00% | 65.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total damages | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sherry Smith | RJR Tobacco | Subsequent Event | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prentice | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 60.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 6,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 2,560,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prentice | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 40.00% | 40.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Konzelman | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 15.00% | 15.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 8,800,000 | $ 8,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | 7,476,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | 20,000,000 | $ 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Konzelman | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 85.00% | 85.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 7,480,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Johnston | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 10.00% | 10.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 7,500,000 | $ 6,750,000 | $ 7,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | 6,750,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | 14,000,000 | $ 14,000,000 | $ 14,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 14,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Johnston | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 90.00% | 90.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ledo | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 51.00% | 51.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 6,000,000 | $ 2,940,000 | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 2,940,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ledo | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 49.00% | 49.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Howles | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 4,000,000 | $ 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Howles | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 50.00% | 50.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 2,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Howles | Other Defendant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 50.00% | 50.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ford | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 85.00% | 85.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 1,020,000 | $ 1,020,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1] | $ 153,430 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ford | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 15.00% | 15.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stanley Martin | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 32.00% | 32.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 5,410,000 | $ 5,410,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stanley Martin | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 22.00% | 22.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 200,000 | 200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stanley Martin | Other Defendant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 46.00% | 46.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 450,000 | $ 450,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pardue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault to plaintiff | 25.00% | 25.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 5,900,000 | $ 5,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages (as adjusted) | [1],[2] | 3,923,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | 6,750,000 | $ 6,750,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages - adjusted | $ 6,750,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pardue | RJR Tobacco | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 50.00% | 50.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensatory damages | $ 5,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 6,750,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pardue | Other Defendant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of fault | 25.00% | 25.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Punitive damages | $ 6,750,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 2,406 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[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 Contingencie108
Commitments and Contingencies - Additional Information 15 (Detail) | 1 Months Ended | 12 Months Ended | 48 Months Ended | ||||||
Nov. 30, 1998LegalMatter | Dec. 31, 2016USD ($)LegalMatterCase | Dec. 31, 2016USD ($)LegalMatterCase | Sep. 19, 2016State | Dec. 31, 2015LegalMatter | Nov. 06, 2013USD ($) | Sep. 13, 2013USD ($) | Mar. 31, 2003USD ($) | Dec. 31, 1999USD ($) | |
Loss Contingencies [Line Items] | |||||||||
Number of cases pending | LegalMatter | 304 | 304 | 268 | ||||||
Claims resolved, Number | LegalMatter | 4 | ||||||||
Number of cases pending in state court | LegalMatter | 252 | 252 | |||||||
Filter Cases | Lorillard Tobacco and Lorillard, Inc. | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of cases pending | Case | 78 | 78 | |||||||
RJR Tobacco and Lorillard Tobacco | Filter Cases | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, amount | $ 47,600,000 | ||||||||
Claims resolved, Number | LegalMatter | 175 | ||||||||
Light Case | Philip Morris | |||||||||
Loss Contingencies [Line Items] | |||||||||
Compensatory damages | $ 7,100,000,000 | ||||||||
Punitive damages | $ 3,000,000,000 | ||||||||
Center for Environmental Health v. NJoy, Inc. | R. J. Reynolds Vapor Co. | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, amount | $ 94,750 | ||||||||
Consolidated Litigation on "Natural", "Organic" and "100% Additive-Free" Marketing | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of state's laws affected | State | 12 | ||||||||
Parsons | |||||||||
Loss Contingencies [Line Items] | |||||||||
Judgment sought against each defendant | 1,000,000 | $ 1,000,000 | |||||||
De Lisle | Filter Cases | |||||||||
Loss Contingencies [Line Items] | |||||||||
Compensatory damages | $ 8,000,000 | ||||||||
Remitted compensatory damages | $ 8,000,000 | ||||||||
De Lisle | Filter Cases | Hollingsworth & Vose | |||||||||
Loss Contingencies [Line Items] | |||||||||
Allocation of fault | 22.00% | ||||||||
De Lisle | Filter Cases | Other Defendant | |||||||||
Loss Contingencies [Line Items] | |||||||||
Allocation of fault | 56.00% | ||||||||
De Lisle | Filter Cases | Lorillard Tobacco | |||||||||
Loss Contingencies [Line Items] | |||||||||
Compensatory damages | $ 3,520,000 | ||||||||
Allocation of fault | 22.00% | ||||||||
United States v. Philip Morris USA Inc | U.S. Department of Justice Case | |||||||||
Loss Contingencies [Line Items] | |||||||||
Disgorgement charges sought | $ 280,000,000,000 | ||||||||
DOJ | |||||||||
Loss Contingencies [Line Items] | |||||||||
Accrued estimated cost for corrective communication | $ 20,000,000 | ||||||||
State Settlement Agreements | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of cases pending in state court | Case | 28 | 28 | |||||||
UNITED STATES | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of cases pending | LegalMatter | 287 | 287 | |||||||
UNITED STATES | Class Action | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of cases pending | LegalMatter | 25 | 25 |
Commitments and Contingencies R
Commitments and Contingencies Related to Settlements (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
2,014 | ||||
Master Settlement Agreement: | ||||
Annual Payments | [1] | $ 8,004,000,000 | ||
Total | 9,364,000,000 | |||
Settlement expenses | [1],[2] | $ 1,917,000,000 | ||
Settlement cash payments | [1],[2] | 1,985,000,000 | ||
2014 | Mississippi | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | 136,000,000 | ||
2014 | Florida | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | 440,000,000 | ||
2014 | Texas | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | 580,000,000 | ||
2014 | Minnesota | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | $ 204,000,000 | ||
2,015 | ||||
Master Settlement Agreement: | ||||
Annual Payments | [1] | $ 8,004,000,000 | ||
Total | 9,364,000,000 | |||
Settlement expenses | [1],[2] | 2,403,000,000 | ||
Settlement cash payments | [1],[2] | 2,166,000,000 | ||
2015 | Mississippi | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | 136,000,000 | ||
2015 | Florida | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | 440,000,000 | ||
2015 | Texas | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | 580,000,000 | ||
2015 | Minnesota | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | $ 204,000,000 | ||
2016 and thereafter | ||||
Master Settlement Agreement: | ||||
Annual Payments | [1] | 8,004,000,000 | ||
Total | 9,364,000,000 | |||
2016 and thereafter | Mississippi | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | 136,000,000 | ||
2016 and thereafter | Florida | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | 440,000,000 | ||
2016 and thereafter | Texas | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | 580,000,000 | ||
2016 and thereafter | Minnesota | ||||
First Four States' Settlements: | ||||
Annual Settlement Payment | [1] | 204,000,000 | ||
2,016 | ||||
Master Settlement Agreement: | ||||
Settlement expenses | [1],[2] | 2,727,000,000 | ||
Settlement cash payments | [1],[2] | 3,042,000,000 | ||
2017 | Minimum | ||||
Master Settlement Agreement: | ||||
Projected settlement expenses | [1],[2] | 3,000,000,000 | ||
Projected settlement cash payments | [1],[2] | 2,700,000,000 | ||
2018 and thereafter | Minimum | ||||
Master Settlement Agreement: | ||||
Projected settlement expenses | [1],[2] | 3,000,000,000 | ||
Projected settlement cash payments | [1],[2] | $ 3,000,000,000 | ||
[1] | Subject to adjustments for changes in sales volume, inflation, operating profit and other factors. Payments are allocated among the companies on the basis of relative market share or other methods. For further information, see “— State Settlement Agreements—Enforcement and Validity; Adjustments” below. | |||
[2] | The amounts above reflect the impact of the Term Sheet and the NY State Settlement described below under “— State Settlement Agreements—Enforcement and Validity; Adjustments – Partial Settlement of Certain NPM Adjustment Claims.” |
Commitments and Contingencie110
Commitments and Contingencies - Additional Information 16 (Detail) $ in Millions | Jan. 18, 2017USD ($)Brand | Nov. 03, 2011 | Oct. 31, 2015USD ($) | Sep. 30, 2013USD ($) | Jan. 31, 2009State | Dec. 31, 2016USD ($)Case | Dec. 31, 2012 | 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 | 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 | |||||||||
NPM Adjustment Claim For 2003 | Maximum | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Courts deciding whether dispute is arbitrable | Case | 48 | |||||||||
Subsequent Event | Philip Morris | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Alleged unpaid settlement payments due to settlement payment calculations | $ 40 | |||||||||
Florida | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Payment Sought Under State Settlement Agreement | $ 12.4 | |||||||||
Interest Payment Sought Under State Settlement Agreement | $ 17 | |||||||||
Florida | Subsequent Event | State Settlement Agreements | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of brand | Brand | 4 | |||||||||
Annual losses | $ 30 | |||||||||
Florida | Subsequent Event | State Settlement Agreements | Minimum | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Presently owed | $ 45 | |||||||||
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 | |||||||||
New Mexico | NPM Adjustment Claim For 2003 | Lorillard Tobacco | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Reduction in recovery from claims due to modification of judgment reduction method | $ 1 | |||||||||
New Mexico | NPM Adjustment Claim For 2003 | RJR Tobacco | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Reduction in recovery from claims due to modification of judgment reduction method | $ 5.6 |
Commitments and Contingencie111
Commitments and Contingencies - Additional Information 17 (Detail) | Oct. 31, 2015USD ($) | Oct. 20, 2015State | Jun. 30, 2014USD ($) | Jan. 31, 2009 | Dec. 31, 2016USD ($)Plaintiff | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)Plaintiff | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2012 | Feb. 17, 2016USD ($) | Jun. 26, 2014State |
Loss Contingencies [Line Items] | ||||||||||||||||||
NPM Adjustment credits | $ 290,000,000 | $ 170,000,000 | $ 97,000,000 | $ 104,000,000 | $ 98,000,000 | $ 91,000,000 | $ 86,000,000 | $ 76,000,000 | $ 69,000,000 | $ 66,000,000 | ||||||||
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 | |||||||||||||||||
Operating Leases, Rent Expense | $ 27,000,000 | $ 26,000,000 | 25,000,000 | |||||||||||||||
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 | $ 6,000,000 | 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 | $ 27,000,000 | |||||||||||||||||
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% | |||||||||||||||||
NPM Adjustment Claim For 2004 | RJR Tobacco and Lorillard Tobacco | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Arbitration Panel ruling | $ 251,000,000 | |||||||||||||||||
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 | $ 1,850,000 | ||||||||||||||||
West Virginia IPIC | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Number of plaintiffs | Plaintiff | 7 | 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 | $ 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 | $ 5,000,000 | |||||||||||||||||
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 Contingencie112
Commitments and Contingencies (Details 1) (Detail) $ in Millions | 12 Months Ended |
Dec. 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 |
Noncancellable Operating Leases
Noncancellable Operating Leases Future Minimum Lease Payments (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 20 |
2,018 | 3 |
2,019 | 2 |
2,020 | 1 |
2,021 | 1 |
Total | $ 27 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 25, 2016 | |
Shareholders Equity [Line Items] | |||||
Authorized preferred stock, shares | 100,000,000 | 100,000,000 | |||
Authorized preferred stock, par value | $ 0.01 | $ 0.01 | |||
Authorized common stock, shares | 3,200,000,000 | 3,200,000,000 | |||
Authorized common stock, par value | $ 0.0001 | $ 0.0001 | |||
Decrease in ownership percentage of RAI's common stock | 25.00% | ||||
Shares repurchased and cancelled | 3,383,544 | 1,822,197 | 15,431,526 | ||
Common stock repurchased | $ 226,000,000 | $ 124,000,000 | $ 440,000,000 | ||
Issuance of shares of RAI common stock on settlement | 2,938,567 | ||||
Cost of shares purchased that forfeited with respect to tax liabilities associated with restricted stock vesting | $ 58,000,000 | ||||
Number of shares purchased that forfeited with respect to tax liabilities associated with restricted stock vesting under its LTIP | 1,146,978 | ||||
Maximum | |||||
Shareholders Equity [Line Items] | |||||
Outstanding shares of RAI common stock | $ 2,000,000,000 | ||||
Governance Agreement | |||||
Shareholders Equity [Line Items] | |||||
Shares repurchased and cancelled | 1,817,846 | ||||
Common stock repurchased | $ 93,000,000 | ||||
Stock Repurchase Program | |||||
Shareholders Equity [Line Items] | |||||
Shares repurchased and cancelled | 1,565,698 | ||||
Common stock repurchased | $ 75,000,000 | ||||
Series A Preferred Stock | |||||
Shareholders Equity [Line Items] | |||||
Authorized preferred stock, shares | 4,000,000 | ||||
Preferred stock, issued shares | 0 | ||||
Preferred stock, outstanding shares | 0 | ||||
Series B Preferred Stock | |||||
Shareholders Equity [Line Items] | |||||
Authorized preferred stock, shares | 1,000,000 | ||||
Preferred stock, issued shares | 1,000,000 | ||||
Preferred stock, outstanding shares | 1,000,000 | ||||
Dividends declared with respect to Series B Preferred Stock | $ 43,000,000 | $ 43,000,000 | $ 43,000,000 |
Declared Quarterly Cash Dividen
Declared Quarterly Cash Dividends per Share of Common Stock (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||||||||||||||
Dividends declared per share | $ 0.46 | $ 0.46 | $ 0.42 | $ 0.42 | $ 0.360 | $ 0.360 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.335 | $ 1.76 | $ 1.39 | $ 1.34 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss Net of Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | $ (338) | $ (364) |
Other comprehensive income before reclassifications | (35) | (103) |
Amounts reclassified from accumulated other comprehensive income (loss) | 59 | 129 |
Net current-period other comprehensive income | 24 | 26 |
Ending balance | (314) | (338) |
Accumulated Defined Benefit Plans Adjustment | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (244) | (294) |
Other comprehensive income before reclassifications | (18) | (78) |
Amounts reclassified from accumulated other comprehensive income (loss) | 7 | 128 |
Net current-period other comprehensive income | (11) | 50 |
Ending balance | (255) | (244) |
Accumulated Net Unrealized Investment Gain (Loss) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (14) | (14) |
Amounts reclassified from accumulated other comprehensive income (loss) | 14 | |
Net current-period other comprehensive income | 14 | |
Ending balance | (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 income (loss) | 11 | 1 |
Net current-period other comprehensive income | 11 | 1 |
Ending balance | (11) | |
Accumulated Translation Adjustment and Other | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (69) | (44) |
Other comprehensive income before reclassifications | (17) | (25) |
Amounts reclassified from accumulated other comprehensive income (loss) | 27 | |
Net current-period other comprehensive income | 10 | (25) |
Ending balance | $ (59) | $ (69) |
Reclassification Out of Accumul
Reclassification Out of Accumulated Other Comprehensive Loss and Affected Line Items in Condensed Consolidated Statements of Income (Detail) - USD ($) $ in Millions | Jun. 12, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | [5],[6] | Jun. 30, 2016 | [5],[6] | Mar. 31, 2016 | [5],[6] | Dec. 31, 2015 | Sep. 30, 2015 | [7],[8] | Jun. 30, 2015 | [7],[8] | Mar. 31, 2015 | [7],[8] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | [1] | $ (4,841) | $ (4,688) | $ (4,058) | |||||||||||||||||
Selling, general and administrative expenses | (1,931) | (2,098) | (1,871) | ||||||||||||||||||
MTM adjustment | (45) | (246) | |||||||||||||||||||
Operating income | [2],[3],[4] | 10,569 | 6,953 | 2,531 | |||||||||||||||||
Other (income) expense, net | (260) | (5) | 14 | ||||||||||||||||||
Interest and debt expense | 626 | 570 | 286 | ||||||||||||||||||
Income from continuing operations before income taxes | 9,691 | 6,384 | 2,262 | ||||||||||||||||||
Provision for income taxes | 3,618 | 3,131 | 817 | ||||||||||||||||||
Net income | $ 851 | [5],[6] | $ 861 | $ 796 | $ 3,565 | $ 279 | [7],[8] | $ 657 | $ 1,928 | $ 389 | 6,073 | 3,253 | 1,470 | ||||||||
Gain on divestitures | $ 3,181 | 4,861 | 3,181 | ||||||||||||||||||
Cost of products sold | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | (21) | (120) | |||||||||||||||||||
Selling, General and Administrative Expenses | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | $ (24) | $ (126) | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Net income | 59 | 129 | 252 | ||||||||||||||||||
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 | (20) | (20) | (21) | ||||||||||||||||||
Selling, general and administrative expenses | (19) | (19) | (18) | ||||||||||||||||||
Operating income | 8 | 207 | 413 | ||||||||||||||||||
Other (income) expense, net | 413 | ||||||||||||||||||||
Provision for income taxes | (1) | (79) | (162) | ||||||||||||||||||
Net income | 7 | 128 | 251 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | Settlement cost | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses | 2 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | Cost of products sold | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 21 | 120 | 205 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | Selling, General and Administrative Expenses | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 24 | 126 | 247 | ||||||||||||||||||
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 | 24 | ||||||||||||||||||||
Provision for income taxes | (10) | ||||||||||||||||||||
Net income | 14 | ||||||||||||||||||||
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 | 16 | ||||||||||||||||||||
Interest and debt expense | 1 | 2 | 2 | ||||||||||||||||||
Income from continuing operations before income taxes | 17 | 2 | 2 | ||||||||||||||||||
Provision for income taxes | (6) | (1) | (1) | ||||||||||||||||||
Net income | 11 | $ 1 | $ 1 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Cumulative Translation Adjustment and Other | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Gain on divestitures | $ 27 | ||||||||||||||||||||
[1] | Excludes excise taxes of $4,343 million, $4,209 million and $3,625 million for the years ended December 31, 2016, 2015 and 2014, respectively. | ||||||||||||||||||||
[2] | Includes $99 million of asset impairment and exit charges for the year ended December 31, 2015. See note 6. | ||||||||||||||||||||
[3] | Includes MTM adjustment expense of $42 million for RJR Tobacco and $3 million for Corporate Expense for the year ended December 31, 2016. Includes MTM adjustment expense of $229 million for RJR Tobacco, $1 million for American Snuff and $16 million for Corporate Expense and All Other for the year ended December 31, 2015. Includes MTM adjustment expense of $422 million for RJR Tobacco, $4 million for American Snuff and $26 million for Corporate Expense and All Other for the year ended December 31, 2014. | ||||||||||||||||||||
[4] | Includes NPM Adjustment credits of $388 million, $293 million and $341 million for RJR Tobacco for the years ended December 31, 2016, 2015 and 2014, respectively. | ||||||||||||||||||||
[5] | First quarter of 2016 reflects the impact of the sale of the international rights to the NATURAL AMERICAN SPIRIT brand. Fourth quarter of 2016 includes an additional MTM adjustment expense of $24 million for a total of $45 million. | ||||||||||||||||||||
[6] | Includes NPM Adjustment credits of $91 million in the first quarter of 2016, $98 million in the second quarter of 2016, $104 million in the third quarter of 2016 and $97 million in the fourth quarter of 2016, see “— Cost of Products Sold” in note 1. The fourth quarter of 2016 includes an MTM adjustment of $21 million. | ||||||||||||||||||||
[7] | Includes NPM Adjustment credits of $66 million in the first quarter of 2015, $69 million in the second quarter of 2015, $76 million in the third quarter of 2015 and $86 million in the fourth quarter of 2015, see “— Cost of Products Sold” in note 1. The fourth quarter of 2015 includes an MTM adjustment expense of $120 million. | ||||||||||||||||||||
[8] | Second quarter of 2015 reflects the impact of the Lorillard Merger and Divestiture. Fourth quarter of 2015 includes an additional MTM adjustment expense of $126 million for a total of $246 million. |
Changes in Common Stock Outstan
Changes in Common Stock Outstanding (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Common Stock Outstanding [Line Items] | |||
Shares outstanding at beginning of year | 1,427,341,341 | 1,062,567,026 | 1,076,106,048 |
Tax shares repurchased and cancelled | (1,146,978) | ||
Issuance of additional shares as Lorillard Merger Consideration | 209,413,694 | ||
Issuance of additional shares for BAT Share Purchase | 155,360,518 | ||
Shares repurchased and cancelled | (3,383,544) | (1,822,197) | (15,431,526) |
Equity incentive award plan shares issued | 75,569 | 63,208 | 64,000 |
Shares outstanding at end of year | 1,425,824,955 | 1,427,341,341 | 1,062,567,026 |
Omnibus Plan | |||
Reconciliation of Common Stock Outstanding [Line Items] | |||
Tax shares repurchased and cancelled | (1,146,978) | (1,111,835) | (1,108,084) |
Shares issued from vesting of restricted stock units | 2,938,567 | 2,870,927 | 2,936,588 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Detail) $ / shares in Units, $ in Millions | Sep. 13, 2012shares | Dec. 31, 2016USD ($)StockPlan$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of stock plans | StockPlan | 2 | |||
Deferred stock units granted | 3,500 | |||
Issuable common stock under Equity Incentive Award Plan, subject to anti-dilution adjustments | 4,000,000 | |||
Shares available for grant under Equity Incentive Award Plan | 1,904,424 | |||
Common shares issuable under Omnibus Plan | 76,000,000 | |||
Restricted stock unit award adjustment upper end of range | 150.00% | |||
Weighted average grant date fair value outstanding | $ / shares | $ 36.81 | $ 28.42 | ||
Unrecognized compensation costs related to restricted stock units | $ | $ 63 | |||
Weighted-average period of unrecognized compensation costs | 1 year 8 months 12 days | |||
Excess tax benefit on stock-based compensation plans | $ | $ 28 | $ 17 | $ 12 | |
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock unit award adjustment | 50.00% | |||
One Year Grant | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock unit award adjustment upper end of range | 200.00% | |||
One Year Grant | May 1, 2016 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Ending date of performance period | Apr. 30, 2017 | |||
Equity Incentive Award Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense related to Equity Incentive Award Plan | $ | $ 14 | $ 15 | $ 10 | |
Share options outstanding | 0 | 0 | ||
Equity Incentive Award Plan | One Year Grant | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average grant date fair value outstanding | $ / shares | $ 56.04 | |||
Number of Shares Granted | 0 | |||
Omnibus Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share options outstanding | 0 | 0 |
Information Regarding Restricte
Information Regarding Restricted Stock-based Awards Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 1,354,611 |
Number of Shares Cancelled and Vested | shares | 224,490 |
Other grants | Grant Price $29.365 | Grant Year 2014 | September 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 74,266 |
Grant Price Per Share | $ 29.365 |
Vesting Date | Sep. 30, 2018 |
Other grants | Grant Price $55.100 | Grant Year 2016 | December 15, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 10,551 |
Grant Price Per Share | $ 55.100 |
Vesting Date | Dec. 15, 2017 |
Other grants | Grant Price $55.100 | Grant Year 2016 | December 15, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 10,550 |
Grant Price Per Share | $ 55.100 |
Vesting Date | Dec. 15, 2018 |
Other grants | Grant Price $46.930 | Grant Year 2016 | December 15, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 23,605 |
Grant Price Per Share | $ 46.930 |
Vesting Date | Dec. 15, 2017 |
Other grants | Grant Price $46.930 | Grant Year 2016 | December 15, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 16,094 |
Grant Price Per Share | $ 46.930 |
Vesting Date | Dec. 15, 2018 |
Restricted Stock Units | Omnibus Plan | Grant Year 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 164,841 |
Grant Price Per Share | $ 56.040 |
Vesting Date | May 1, 2017 |
Cumulative Dividends Per Share | $ 1.68 |
Ending Date of Performance Period | Apr. 30, 2017 |
Restricted Stock Units | Omnibus Plan | Grant Price $24.645 | Grant Year 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 2,098,696 |
Grant Price Per Share | $ 26.645 |
Vesting Date | Mar. 3, 2017 |
Number of Shares Cancelled and Vested | shares | 504,776 |
Cumulative Dividends Per Share | $ 4.02 |
Ending Date of Performance Period | Dec. 31, 2016 |
Restricted Stock Units | Omnibus Plan | Grant Price $29.365 | Grant Year 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 51,814 |
Grant Price Per Share | $ 29.365 |
Vesting Date | Mar. 3, 2017 |
Cumulative Dividends Per Share | $ 3.02 |
Ending Date of Performance Period | Dec. 31, 2016 |
Restricted Stock Units | Omnibus Plan | Grant Price $37.940 | Grant Year 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 1,386,180 |
Grant Price Per Share | $ 37.940 |
Vesting Date | Mar. 2, 2018 |
Number of Shares Cancelled and Vested | shares | 169,217 |
Cumulative Dividends Per Share | $ 4.02 |
Ending Date of Performance Period | Dec. 31, 2017 |
Restricted Stock Units | Omnibus Plan | Grant Price $36.300 | Grant Year 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 17,196 |
Grant Price Per Share | $ 36.300 |
Vesting Date | Mar. 2, 2018 |
Cumulative Dividends Per Share | $ 4.02 |
Ending Date of Performance Period | Dec. 31, 2017 |
Restricted Stock Units | Omnibus Plan | Grant Price $50.490 | Grant Year 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 1,071,544 |
Grant Price Per Share | $ 50.490 |
Vesting Date | Mar. 1, 2019 |
Number of Shares Cancelled and Vested | shares | 83,454 |
Cumulative Dividends Per Share | $ 5.04 |
Ending Date of Performance Period | Dec. 31, 2018 |
Restricted Stock Units | Omnibus Plan | Grant Price $50.130 | Grant Year 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 4,898 |
Grant Price Per Share | $ 50.130 |
Vesting Date | Mar. 1, 2019 |
Cumulative Dividends Per Share | $ 4.62 |
Ending Date of Performance Period | Dec. 31, 2018 |
Restricted Stock Units | Omnibus Plan | Grant Price $51.030 | Grant Year 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 1,727 |
Grant Price Per Share | $ 51.030 |
Vesting Date | Mar. 1, 2019 |
Cumulative Dividends Per Share | $ 4.20 |
Ending Date of Performance Period | Dec. 31, 2018 |
Restricted Stock Units | Omnibus Plan | Grant Price $55.100 | Grant Year 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 21,249 |
Grant Price Per Share | $ 55.100 |
Vesting Date | Mar. 1, 2019 |
Cumulative Dividends Per Share | $ 3.78 |
Ending Date of Performance Period | Dec. 31, 2018 |
Restricted Stock Units | Omnibus Plan | Grant Price $50.550 | Grant Year 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 4,581 |
Grant Price Per Share | $ 50.550 |
Vesting Date | Mar. 1, 2019 |
Cumulative Dividends Per Share | $ 4.20 |
Ending Date of Performance Period | Dec. 31, 2018 |
Restricted Stock Units | Omnibus Plan | Grant Price $56.040 | Grant Year 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares Granted | shares | 1,366 |
Grant Price Per Share | $ 56.040 |
Vesting Date | Mar. 1, 2019 |
Cumulative Dividends Per Share | $ 3.36 |
Ending Date of Performance Period | Dec. 31, 2018 |
Changes in Number of RAI Restri
Changes in Number of RAI Restricted Stock Units (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Stock Units | |
Outstanding at beginning of year | shares | 5,147,400 |
Granted | shares | 1,354,611 |
Forfeited | shares | (224,490) |
Vested | shares | (2,075,810) |
Outstanding at end of year | shares | 4,201,711 |
Weighted Average Grant Date Fair Value Per Share | |
Weighted Average Grant Date Fair Value Per Share, Outstanding at beginning of year | $ / shares | $ 28.42 |
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares | 51.15 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | $ / shares | 39.21 |
Weighted Average Grant Date Fair Value Per Share, Vested | $ / shares | 25.11 |
Weighted Average Grant Date Fair Value Per Share, Outstanding at end of year | $ / shares | $ 36.81 |
Compensation Expense Related to
Compensation Expense Related to Stock Based Compensation and Related Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total related tax benefits | $ 27 | $ 28 | $ 20 |
Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation expense | 77 | 79 | 56 |
Selling, General and Administrative Expenses | 2011 restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation expense | 3 | ||
Selling, General and Administrative Expenses | 2012 restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation expense | 3 | 14 | |
Selling, General and Administrative Expenses | 2013 restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation expense | 3 | 20 | 15 |
Selling, General and Administrative Expenses | 2014 restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation expense | 20 | 32 | $ 24 |
Selling, General and Administrative Expenses | 2015 restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation expense | 30 | $ 24 | |
Selling, General and Administrative Expenses | 2016 restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation expense | $ 24 |
Amounts Related to Unvested Omn
Amounts Related to Unvested Omnibus Plan Restricted Stock Grants (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Other current liabilities | $ 10 | $ 10 |
Other noncurrent liabilities | 7 | 8 |
Paid-in capital | $ 111 | $ 110 |
Equity Compensation Plan Inform
Equity Compensation Plan Information (Detail) | 12 Months Ended | |
Dec. 31, 2016$ / sharesshares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | 6,317,451 | [1] |
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | $ / shares | $ 0 | |
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column | 64,211,776 | |
Equity Compensation Plans Approved by Security Holders | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | 6,317,451 | [1] |
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | $ / shares | $ 0 | |
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column | 62,307,352 | |
Equity Compensation Plans Not Approved by Security Holders | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | $ / shares | $ 0 | [2] |
Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column | 1,904,424 | [2] |
[1] | Consists of restricted stock units. These restricted stock units represent the maximum number of shares to be awarded under the best-case targets, and accordingly, may overstate expected dilution. | |
[2] | The EIAP was approved by RJR’s sole shareholder, Nabisco Group Holdings Corp., prior to RJR’s spin-off on June 15, 1999. |
Changes in Benefit Obligations
Changes in Benefit Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in plan assets: | |||
Actual return on plan assets | $ 432 | $ (131) | |
Pension Benefits | |||
Change in benefit obligations: | |||
Obligations at beginning of year | 6,738 | 6,389 | |
Service cost | 16 | 26 | $ 21 |
Interest cost | 295 | 275 | 266 |
Actuarial (gain) loss | 95 | (270) | |
Merger | 756 | ||
Benefits paid | (434) | (431) | |
Settlements | (36) | (7) | |
Obligations at end of year | 6,674 | 6,738 | 6,389 |
Change in plan assets: | |||
Beginning balance | 5,351 | 5,309 | |
Actual return on plan assets | 432 | (131) | |
Employer contributions | 335 | 18 | |
Merger | 593 | ||
Benefits paid | (434) | (431) | |
Settlements | (36) | (7) | |
Ending balance | 5,648 | 5,351 | 5,309 |
Funded status | (1,026) | (1,387) | |
Postretirement Benefit | |||
Change in benefit obligations: | |||
Obligations at beginning of year | 1,210 | 1,251 | |
Service cost | 2 | 2 | 2 |
Interest cost | 49 | 50 | 53 |
Actuarial (gain) loss | (12) | (120) | |
Merger | 111 | ||
Benefits paid | (87) | (84) | |
Obligations at end of year | 1,162 | 1,210 | 1,251 |
Change in plan assets: | |||
Beginning balance | 241 | 259 | |
Actual return on plan assets | 10 | (1) | |
Employer contributions | 66 | 67 | |
Benefits paid | (87) | (84) | |
Ending balance | 230 | 241 | $ 259 |
Funded status | $ (932) | $ (969) |
Changes in Net Actuarial (Gain)
Changes in Net Actuarial (Gain) Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net actuarial (gain) loss: | |||
Change in discount rate | $ 415 | $ (91) | $ (317) |
Actual return on plan assets | 432 | (131) | |
Expected return on plan assets | 372 | 373 | |
Net actuarial (gain) loss | (25) | (127) | |
Pension Benefits | |||
Net actuarial (gain) loss: | |||
Actual return on plan assets | 432 | (131) | |
Expected return on plan assets | 372 | 373 | 360 |
Net actuarial (gain) loss | (36) | (234) | |
Pension Benefits | Funded Status | |||
Net actuarial (gain) loss: | |||
Change in discount rate | 266 | (287) | |
Change in mortality table | (101) | (128) | |
Actual return on plan assets | (432) | 131 | |
Expected return on plan assets | 372 | 373 | |
Other | (69) | 145 | |
Net actuarial (gain) loss | 36 | 234 | |
Postretirement Benefit | |||
Net actuarial (gain) loss: | |||
Actual return on plan assets | 10 | (1) | |
Expected return on plan assets | 12 | 12 | $ 12 |
Net actuarial (gain) loss | 11 | 107 | |
Postretirement Benefit | Funded Status | |||
Net actuarial (gain) loss: | |||
Change in discount rate | 38 | (37) | |
Change in mortality table | (14) | (21) | |
Actual return on plan assets | (10) | 1 | |
Expected return on plan assets | 12 | 12 | |
Other | (37) | (62) | |
Net actuarial (gain) loss | $ (11) | $ (107) |
Amounts Recognized in Consolida
Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Amounts recognized in the consolidated balance sheets consist of: | ||
Accrued benefit — other current liabilities | $ (89) | $ (91) |
Accrued benefit — long-term retirement benefits | (1,869) | (2,265) |
Pension Benefits | ||
Amounts recognized in the consolidated balance sheets consist of: | ||
Accrued benefit — other current liabilities | (11) | (10) |
Accrued benefit — long-term retirement benefits | (1,015) | (1,377) |
Net amount recognized | (1,026) | (1,387) |
Accumulated other comprehensive loss | 616 | 636 |
Net amounts recognized in the consolidated balance sheets | (410) | (751) |
Postretirement Benefit | ||
Amounts recognized in the consolidated balance sheets consist of: | ||
Accrued benefit — other current liabilities | (78) | (81) |
Accrued benefit — long-term retirement benefits | (854) | (888) |
Net amount recognized | (932) | (969) |
Accumulated other comprehensive loss | (146) | (183) |
Net amounts recognized in the consolidated balance sheets | $ (1,078) | $ (1,152) |
Amounts Included in Accumulated
Amounts Included in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (credit) | $ (88) | $ (127) |
Net actuarial (gain) loss | 558 | 580 |
Deferred income taxes | (215) | (209) |
Accumulated other comprehensive loss | 255 | 244 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (credit) | 7 | 10 |
Net actuarial (gain) loss | 609 | 626 |
Deferred income taxes | (256) | (262) |
Accumulated other comprehensive loss | 360 | 374 |
Postretirement Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost (credit) | (95) | (137) |
Net actuarial (gain) loss | (51) | (46) |
Deferred income taxes | 41 | 53 |
Accumulated other comprehensive loss | $ (105) | $ (130) |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial (gain) loss | $ 25 | $ 127 | |
Amortization of prior service cost (credit) | 39 | 39 | |
Prior service cost (credit) | (1) | ||
Settlement cost | (2) | (1) | |
MTM adjustment | (45) | (246) | |
Tax expense (benefit), retirement benefits | (6) | 32 | $ (178) |
Change in accumulated other comprehensive loss | 11 | (50) | $ 277 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial (gain) loss | 36 | 234 | |
Amortization of prior service cost (credit) | (3) | (3) | |
Settlement cost | (2) | (1) | |
MTM adjustment | (51) | (246) | |
Tax expense (benefit), retirement benefits | 6 | 6 | |
Change in accumulated other comprehensive loss | (14) | (10) | |
Postretirement Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial (gain) loss | (11) | (107) | |
Amortization of prior service cost (credit) | 42 | 42 | |
Prior service cost (credit) | (1) | ||
MTM adjustment | 6 | ||
Tax expense (benefit), retirement benefits | (12) | 26 | |
Change in accumulated other comprehensive loss | $ 25 | $ (40) |
Retirement Benefits - Additiona
Retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | $ 432 | $ (131) | |
Expected return of pension asset | 372 | 373 | |
Defined contribution plan expense | 41 | 40 | $ 37 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | 432 | (131) | |
Expected return of pension asset | 372 | 373 | 360 |
Estimated amortization of prior service cost/credit | 3 | ||
Pension expected contributions | 111 | ||
Postretirement Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | 10 | (1) | |
Expected return of pension asset | 12 | $ 12 | $ 12 |
Estimated amortization of prior service cost/credit | 36 | ||
Post Retirement expected contributions | $ 78 |
Weighted Average Assumptions Us
Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Benefits | ||
Weighted-average assumptions used to determine benefit obligations at December 31: | ||
Discount rate | 4.16% | 4.54% |
Rate of compensation increase | 4.00% | 4.00% |
Postretirement Benefit | ||
Weighted-average assumptions used to determine benefit obligations at December 31: | ||
Discount rate | 4.12% | 4.47% |
Accumulated Benefit Obligations
Accumulated Benefit Obligations (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation And Retirement Disclosure [Abstract] | ||
Projected benefit obligation | $ 6,674 | $ 6,738 |
Accumulated benefit obligation | 6,625 | 6,684 |
Plan assets | $ 5,648 | $ 5,351 |
Components of Pension Benefits
Components of Pension Benefits and Postretirement Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | $ (372) | $ (373) | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 16 | 26 | $ 21 |
Interest cost | 295 | 275 | 266 |
Expected return on plan assets | (372) | (373) | (360) |
Amortization of prior service cost (credit) | 3 | 3 | 3 |
Settlements | 2 | 1 | |
MTM adjustment | 51 | 246 | 420 |
Total benefit cost (income) | (5) | 178 | 350 |
Postretirement Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 2 |
Interest cost | 49 | 50 | 53 |
Expected return on plan assets | (12) | (12) | (12) |
Amortization of prior service cost (credit) | (42) | (42) | (42) |
MTM adjustment | (6) | 32 | |
Total benefit cost (income) | $ (9) | $ (2) | $ 33 |
Weighted Average Assumptions (D
Weighted Average Assumptions (Detail) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | |
Pension Benefits | ||||
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: | ||||
Discount rate | 4.54% | 4.14% | 4.92% | |
Expected long-term return on plan assets | 6.82% | 6.83% | 7.13% | |
Rate of compensation increase | 4.00% | 4.00% | 4.00% | |
Postretirement Benefit | ||||
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: | ||||
Discount rate | 4.47% | 4.12% | 4.87% | |
Expected long-term return on plan assets | 4.60% | 4.85% | 4.85% | |
[1] | Determined as of the beginning of year and adjusted for the Lorillard Merger in 2015. |
Weighted Average Health Care Co
Weighted Average Health Care Cost Trend (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | ||
Weighted-average health-care cost trend rate assumed for the following year | 7.00% | 7.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,025 | 2,020 |
Assumed Health Care Cost Trend
Assumed Health Care Cost Trend (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
1-Percentage Point Increase | $ 2 |
1-Percentage Point Decrease | (2) |
1-Percentage Point Increase | 58 |
1-Percentage Point Decrease | $ (49) |
Estimated Future Benefit Paymen
Estimated Future Benefit Payments (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Estimated future benefits payments | |
2,017 | $ 447 |
2,018 | 443 |
2,019 | 439 |
2,020 | 436 |
2,021 | 431 |
2022-2026 | 2,082 |
Gross Projected Benefit Payments Before Medicare Part D Subsidies | |
2,017 | 105 |
2,018 | 90 |
2,019 | 87 |
2,020 | 85 |
2,021 | 83 |
2022-2026 | 386 |
Expected Medicare Part D Subsidies | |
2,017 | (2) |
2,018 | (2) |
2,019 | (2) |
2,020 | (2) |
2,021 | (2) |
2022-2026 | (11) |
Net Projected Benefit Payments After Medicare Part D Subsidies | |
2,017 | 103 |
2,018 | 88 |
2,019 | 85 |
2,020 | 83 |
2,021 | 81 |
2022-2026 | $ 375 |
Pension and Post Retirement Pla
Pension and Post Retirement Plans Asset Allocations (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 100.00% | 100.00% |
Actual Plan Asset Allocations | 100.00% | 100.00% | |
Pension Benefits | Domestic equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 10.00% | 10.00% |
Actual Plan Asset Allocations | 12.00% | 10.00% | |
Pension Benefits | International equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 8.00% | 8.00% |
Actual Plan Asset Allocations | 8.00% | 7.00% | |
Pension Benefits | Global equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 9.00% | 9.00% |
Actual Plan Asset Allocations | 12.00% | 11.00% | |
Pension Benefits | Emerging market equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 3.00% | 3.00% |
Actual Plan Asset Allocations | 2.00% | 2.00% | |
Pension Benefits | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 53.00% | 53.00% |
Actual Plan Asset Allocations | 53.00% | 53.00% | |
Pension Benefits | Absolute Return | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 6.00% | 6.00% |
Actual Plan Asset Allocations | 7.00% | 8.00% | |
Pension Benefits | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 2.00% | 2.00% |
Actual Plan Asset Allocations | 2.00% | 2.00% | |
Pension Benefits | Real assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 5.00% | 5.00% |
Actual Plan Asset Allocations | 4.00% | 5.00% | |
Pension Benefits | Commodities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 4.00% | 4.00% |
Actual Plan Asset Allocations | 2.00% | ||
Postretirement Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 100.00% | 100.00% |
Actual Plan Asset Allocations | 100.00% | 100.00% | |
Postretirement Benefit | Domestic equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 21.00% | 21.00% |
Actual Plan Asset Allocations | 22.00% | 20.00% | |
Postretirement Benefit | International equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 21.00% | 21.00% |
Actual Plan Asset Allocations | 20.00% | 21.00% | |
Postretirement Benefit | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 55.00% | 55.00% |
Actual Plan Asset Allocations | 51.00% | 54.00% | |
Postretirement Benefit | Cash and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Plan Asset Allocations | [1] | 3.00% | 3.00% |
Actual Plan Asset Allocations | 7.00% | 5.00% | |
[1] | Allows for a rebalancing range of up to 5 percentage points around target asset allocations. |
Pension and Post Retirement 139
Pension and Post Retirement Plans Asset Allocations (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Postretirement Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Maximum Range of rebalancing of assets around target asset allocations | 5.00% | 5.00% |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Maximum Range of rebalancing of assets around target asset allocations | 5.00% | 5.00% |
Plan Assets Carried at Fair Val
Plan Assets Carried at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | $ 5,648 | $ 5,351 | $ 5,309 | |
Postretirement Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | 230 | 241 | 259 | |
Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 4 | 6 | 7 |
Level 3 | Asset backed securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 1 | 3 | $ 3 |
Recurring | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 4,422 | 4,017 | |
Investments measured at net asset value | [1],[2] | 1,250 | 1,282 | |
Fair value of pension and postretirement plan assets including investments measured at net asset value | [1] | 5,672 | 5,299 | |
Recurring | Postretirement Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 15 | 19 | |
Investments measured at net asset value | [1],[2] | 205 | 216 | |
Fair value of pension and postretirement plan assets including investments measured at net asset value | [1] | 220 | 235 | |
Recurring | Domestic equities | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 457 | 410 | |
Recurring | International equities | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 137 | 144 | |
Recurring | Global equities | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 635 | 585 | |
Recurring | Real assets | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 23 | 21 | |
Recurring | Agency Bonds | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 29 | 18 | |
Recurring | High Yield Fixed Income | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 20 | 19 | |
Recurring | Asset backed securities | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 53 | 93 | |
Recurring | Corporate bonds | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 1,798 | 1,719 | |
Recurring | Government Bonds | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 78 | 91 | |
Recurring | Mortgage Backed Securities | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 75 | 41 | |
Recurring | Cash Equivalents And Other | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 362 | 125 | |
Recurring | Cash Equivalents And Other | Postretirement Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 7 | 6 | |
Recurring | Municipal Bonds | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 201 | 201 | |
Recurring | Short-term bonds | Postretirement Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 8 | 13 | |
Recurring | Treasury Stock | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 554 | 550 | |
Recurring | Level 1 | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 1,280 | 1,193 | |
Recurring | Level 1 | Postretirement Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 8 | 13 | |
Recurring | Level 1 | Domestic equities | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 457 | 410 | |
Recurring | Level 1 | International equities | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 137 | 144 | |
Recurring | Level 1 | Global equities | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 635 | 585 | |
Recurring | Level 1 | Real assets | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 23 | 21 | |
Recurring | Level 1 | Cash Equivalents And Other | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 28 | 33 | |
Recurring | Level 1 | Short-term bonds | Postretirement Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 8 | 13 | |
Recurring | Level 2 | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 3,138 | 2,818 | |
Recurring | Level 2 | Postretirement Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 7 | 6 | |
Recurring | Level 2 | Agency Bonds | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 29 | 18 | |
Recurring | Level 2 | High Yield Fixed Income | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 20 | 19 | |
Recurring | Level 2 | Asset backed securities | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 52 | 90 | |
Recurring | Level 2 | Corporate bonds | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 1,797 | 1,718 | |
Recurring | Level 2 | Government Bonds | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 78 | 91 | |
Recurring | Level 2 | Mortgage Backed Securities | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 75 | 41 | |
Recurring | Level 2 | Cash Equivalents And Other | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 332 | 90 | |
Recurring | Level 2 | Cash Equivalents And Other | Postretirement Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 7 | 6 | |
Recurring | Level 2 | Municipal Bonds | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 201 | 201 | |
Recurring | Level 2 | Treasury Stock | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 554 | 550 | |
Recurring | Level 3 | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 4 | 6 | |
Recurring | Level 3 | Asset backed securities | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 1 | 3 | |
Recurring | Level 3 | Corporate bonds | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | 1 | 1 | |
Recurring | Level 3 | Cash Equivalents And Other | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension and postretirement plan assets | [1] | $ 2 | $ 2 | |
[1] | See note 1 for additional information on the fair value hierarchy. | |||
[2] | Prior-year amounts were reclassified in accordance with the adoption of ASU 2015-07. |
Transfer of Plan Assets by Asse
Transfer of Plan Assets by Asset Category (Detail) - Level 3 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | [1] | $ 6 | $ 7 |
Purchases, Sales, Issuances and Settlements (net) | [1] | (1) | |
Realized Gains (Losses) | [1] | (28) | |
Unrealized Gains (Losses) | [1] | 26 | |
Transferred From Other Levels | [1] | 0 | 0 |
Ending balance | [1] | 4 | 6 |
Asset backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | [1] | 3 | 3 |
Unrealized Gains (Losses) | [1] | (2) | |
Transferred From Other Levels | [1] | 0 | 0 |
Ending balance | [1] | 1 | 3 |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | [1] | 1 | 2 |
Purchases, Sales, Issuances and Settlements (net) | [1] | (1) | |
Transferred From Other Levels | [1] | 0 | 0 |
Ending balance | [1] | 1 | 1 |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | [1] | 2 | 2 |
Realized Gains (Losses) | [1] | (28) | |
Unrealized Gains (Losses) | [1] | 28 | |
Transferred From Other Levels | [1] | 0 | 0 |
Ending balance | [1] | $ 2 | $ 2 |
[1] | See note 1 for additional information on the fair value hierarchy. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - USD ($) $ in Millions | Jan. 13, 2016 | Jun. 12, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||||
Proceeds from divestitures | $ 7,100 | $ 5,015 | $ 7,056 | ||
Pre-tax gain on divestiture | $ 3,181 | 4,861 | 3,181 | ||
Foreign sales | $ 351 | $ 482 | $ 497 | ||
Sales Revenue, Net | Customer Concentration Risk | McLane Company | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk percentage | 28.00% | 28.00% | 31.00% | ||
Sales Revenue, Net | Customer Concentration Risk | Core-Mark International, Inc | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk percentage | 14.00% | 10.00% | 11.00% | ||
JTI Holding | |||||
Segment Reporting Information [Line Items] | |||||
Proceeds from divestitures | $ 5,000 | ||||
Pre-tax gain on divestiture | 4,900 | ||||
NAS Brand | JTI Holding | |||||
Segment Reporting Information [Line Items] | |||||
Proceeds from divestitures | 5,000 | ||||
Pre-tax gain on divestiture | $ 4,900 |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Millions | Jun. 12, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | $ 3,186 | $ 3,205 | $ 3,195 | $ 2,917 | $ 3,054 | $ 3,161 | $ 2,403 | $ 2,057 | $ 12,503 | $ 10,675 | $ 8,471 | ||
Operating income (loss) | [1],[2],[3] | 10,569 | 6,953 | 2,531 | |||||||||
Gain on divestitures | $ 3,181 | 4,861 | 3,181 | ||||||||||
Cash capital expenditures | 206 | 174 | 204 | ||||||||||
Depreciation and amortization expense | 123 | 122 | 106 | ||||||||||
Interest and debt expense | 626 | 570 | 286 | ||||||||||
Interest income | (8) | (6) | (3) | ||||||||||
Other (income) expense, net | 260 | 5 | (14) | ||||||||||
Income from continuing operations before income taxes | 9,691 | 6,384 | 2,262 | ||||||||||
RJR Tobacco | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Cash capital expenditures | 130 | 84 | 53 | ||||||||||
Depreciation and amortization expense | 77 | 71 | 65 | ||||||||||
Santa Fe | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Cash capital expenditures | 12 | 16 | 7 | ||||||||||
Depreciation and amortization expense | 4 | 3 | 3 | ||||||||||
American Snuff | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Cash capital expenditures | 22 | 10 | 12 | ||||||||||
Depreciation and amortization expense | 16 | 17 | 17 | ||||||||||
All Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Cash capital expenditures | 42 | 64 | 132 | ||||||||||
Depreciation and amortization expense | 26 | 31 | 21 | ||||||||||
Operating Segments | RJR Tobacco | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 10,314 | 8,634 | 6,767 | ||||||||||
Operating income (loss) | [2],[3] | 4,922 | 3,359 | 2,173 | |||||||||
Operating Segments | Santa Fe | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 973 | 818 | 658 | ||||||||||
Operating income (loss) | 546 | 449 | 337 | ||||||||||
Operating Segments | American Snuff | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 914 | 855 | 783 | ||||||||||
Operating income (loss) | [2] | 541 | 502 | 438 | |||||||||
Operating Segments | All Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 302 | 368 | 263 | ||||||||||
Operating income (loss) | [1] | (145) | (265) | (234) | |||||||||
Corporate, Non-Segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating income (loss) | [2] | $ (156) | $ (273) | $ (183) | |||||||||
[1] | Includes $99 million of asset impairment and exit charges for the year ended December 31, 2015. See note 6. | ||||||||||||
[2] | Includes MTM adjustment expense of $42 million for RJR Tobacco and $3 million for Corporate Expense for the year ended December 31, 2016. Includes MTM adjustment expense of $229 million for RJR Tobacco, $1 million for American Snuff and $16 million for Corporate Expense and All Other for the year ended December 31, 2015. Includes MTM adjustment expense of $422 million for RJR Tobacco, $4 million for American Snuff and $26 million for Corporate Expense and All Other for the year ended December 31, 2014. | ||||||||||||
[3] | Includes NPM Adjustment credits of $388 million, $293 million and $341 million for RJR Tobacco for the years ended December 31, 2016, 2015 and 2014, respectively. |
Segment Information (Parentheti
Segment Information (Parenthetical) (Detail) - USD ($) $ in Millions | Oct. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||||||||||||
NPM Adjustment credits | $ 290 | $ 170 | $ 97 | $ 104 | $ 98 | $ 91 | $ 86 | $ 76 | $ 69 | $ 66 | |||
MTM adjustment expense | $ 45 | $ 246 | |||||||||||
Asset impairment and exit charges | 99 | ||||||||||||
RJR Tobacco | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
NPM Adjustment credits | 6 | 93 | |||||||||||
MTM adjustment expense | 42 | 229 | $ 422 | ||||||||||
American Snuff | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
MTM adjustment expense | 1 | 4 | |||||||||||
All Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
MTM adjustment expense | 16 | 26 | |||||||||||
Operating Segments | RJR Tobacco | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
NPM Adjustment credits | 388 | 293 | 341 | ||||||||||
Corporate, Non-Segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
MTM adjustment expense | $ 3 | $ 16 | $ 26 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Sep. 30, 2016 | Jul. 31, 2016 | Jan. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 12, 2015 | Jul. 15, 2014 |
Related Party Transaction [Line Items] | |||||||||
Current deferred revenue | $ 66 | $ 33 | |||||||
Long-term deferred revenue | $ 39 | ||||||||
Shares repurchased | 3,383,544 | 1,822,197 | 15,431,526 | ||||||
Stock Repurchase Program | |||||||||
Related Party Transaction [Line Items] | |||||||||
Shares repurchased | 1,565,698 | ||||||||
BAT Affiliate | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of RAI's outstanding common stock | 42.00% | 42.00% | 42.00% | ||||||
Revenue percentage from related parties | 2.00% | 2.00% | 4.00% | ||||||
Current deferred revenue | $ 66 | $ 33 | |||||||
Long-term deferred revenue | $ 39 | ||||||||
Percentage of maximum purchase price | 10.00% | ||||||||
Contract manufacturing amendment fee | $ 6 | ||||||||
Common stock repurchased | $ 32 | $ 155 | |||||||
BAT Affiliate | Stock Repurchase Program | |||||||||
Related Party Transaction [Line Items] | |||||||||
Shares repurchased | 660,385 | ||||||||
Common stock repurchased | $ 32 | ||||||||
BAT Affiliate | RJR Tobacco | |||||||||
Related Party Transaction [Line Items] | |||||||||
Payment after amendment of contract | $ 7.4 | $ 89.6 | |||||||
Current deferred revenue | 40.2 | ||||||||
Long-term deferred revenue | $ 38.9 | ||||||||
BAT Affiliate | Scenario Forecast | RJR Tobacco | |||||||||
Related Party Transaction [Line Items] | |||||||||
Payment after amendment of contract | $ 82.2 |
Summary of Balances and Transac
Summary of Balances and Transactions (Detail) - USD ($) $ in Millions | Jun. 12, 2015 | Jul. 15, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current Balances: | |||||
Accounts receivable, related party | $ 113 | $ 38 | |||
Due to related party | 7 | 9 | |||
Deferred revenue, related party | 66 | 33 | |||
Other current liabilities | 1,036 | 1,234 | |||
Long-term Balances: | |||||
Long-term deferred revenue, related party | 39 | ||||
Net sales | 226 | 259 | $ 311 | ||
BAT Share Purchase | $ 4,700 | $ 4,700 | 4,673 | ||
BAT Affiliate | |||||
Current Balances: | |||||
Accounts receivable, related party | 113 | 38 | |||
Due to related party | 7 | 9 | |||
Deferred revenue, related party | 66 | 33 | |||
Other current liabilities | 2 | ||||
Long-term Balances: | |||||
Long-term deferred revenue, related party | 39 | ||||
Net sales | 226 | 259 | 311 | ||
Purchases | 21 | 38 | 28 | ||
BAT Share Purchase | 4,673 | ||||
Share repurchase agreements | 32 | 155 | |||
Research and development services billings | $ 1 | $ 3 | $ 4 |
RAI Guaranteed Unsecured Notes
RAI Guaranteed Unsecured Notes - Condensed Consolidating Financial Statements (Detail) $ in Billions | Dec. 31, 2016USD ($) |
RAI | |
Condensed Financial Statements Captions [Line Items] | |
Aggregate principal amount of unsecured notes | $ 12.7 |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Income (Detail) - USD ($) $ in Millions | Jun. 12, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Net sales | [1] | $ 12,277 | $ 10,416 | $ 8,160 | |||||||||||||||||
Net sales, related party | 226 | 259 | 311 | ||||||||||||||||||
Net sales | $ 3,186 | $ 3,205 | $ 3,195 | $ 2,917 | $ 3,054 | $ 3,161 | $ 2,403 | $ 2,057 | 12,503 | 10,675 | 8,471 | ||||||||||
Cost of products sold | [1] | 4,841 | 4,688 | 4,058 | |||||||||||||||||
Selling, general and administrative expenses, net | 1,931 | 2,098 | 1,871 | ||||||||||||||||||
(Gain) loss on divestitures | $ (3,181) | (4,861) | (3,181) | ||||||||||||||||||
Amortization expense | 23 | 18 | 11 | ||||||||||||||||||
Asset impairment and exit charges | 99 | ||||||||||||||||||||
Operating income | [2],[3],[4] | 10,569 | 6,953 | 2,531 | |||||||||||||||||
Interest and debt expense | 626 | 570 | 286 | ||||||||||||||||||
Interest income | (8) | (6) | (3) | ||||||||||||||||||
Other (income) expense, net | 260 | 5 | (14) | ||||||||||||||||||
Income from continuing operations before income taxes | 9,691 | 6,384 | 2,262 | ||||||||||||||||||
Provision for income taxes | 3,618 | 3,131 | 817 | ||||||||||||||||||
Income from continuing operations | 6,073 | 3,253 | 1,445 | ||||||||||||||||||
Income from discontinued operations, net of tax | 25 | ||||||||||||||||||||
Net income | $ 851 | [5],[6] | $ 861 | [5],[6] | $ 796 | [5],[6] | $ 3,565 | [5],[6] | $ 279 | [7],[8] | $ 657 | [7],[8] | $ 1,928 | [7],[8] | $ 389 | [7],[8] | 6,073 | 3,253 | 1,470 | ||
RAI | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses, net | 41 | 79 | 75 | ||||||||||||||||||
Operating income | (41) | (79) | (75) | ||||||||||||||||||
Interest and debt expense | 619 | 559 | 286 | ||||||||||||||||||
Interest income | (84) | (100) | (85) | ||||||||||||||||||
Other (income) expense, net | 244 | 20 | 4 | ||||||||||||||||||
Income from continuing operations before income taxes | (820) | (558) | (280) | ||||||||||||||||||
Provision for income taxes | (171) | (224) | (89) | ||||||||||||||||||
Equity income from subsidiaries | 6,722 | 3,587 | 1,661 | ||||||||||||||||||
Income from continuing operations | 1,470 | ||||||||||||||||||||
Net income | 6,073 | 3,253 | 1,470 | ||||||||||||||||||
Guarantors | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Net sales | 12,209 | 10,319 | 8,109 | ||||||||||||||||||
Net sales, related party | 226 | 259 | 311 | ||||||||||||||||||
Net sales | 12,435 | 10,578 | 8,420 | ||||||||||||||||||
Cost of products sold | 4,787 | 4,673 | 4,002 | ||||||||||||||||||
Selling, general and administrative expenses, net | 1,721 | 1,738 | 1,535 | ||||||||||||||||||
(Gain) loss on divestitures | (4,843) | (3,153) | |||||||||||||||||||
Amortization expense | 22 | 18 | 11 | ||||||||||||||||||
Asset impairment and exit charges | 99 | ||||||||||||||||||||
Operating income | 10,748 | 7,203 | 2,872 | ||||||||||||||||||
Interest and debt expense | 81 | 104 | 79 | ||||||||||||||||||
Interest income | (6) | (6) | (3) | ||||||||||||||||||
Other (income) expense, net | (30) | (42) | (44) | ||||||||||||||||||
Income from continuing operations before income taxes | 10,703 | 7,147 | 2,840 | ||||||||||||||||||
Provision for income taxes | 3,840 | 3,417 | 1,004 | ||||||||||||||||||
Equity income from subsidiaries | 4 | 46 | 26 | ||||||||||||||||||
Income from continuing operations | 1,862 | ||||||||||||||||||||
Income from discontinued operations, net of tax | 25 | ||||||||||||||||||||
Net income | 6,867 | 3,776 | 1,887 | ||||||||||||||||||
Guarantors | RJR Tobacco | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses, net | 2 | 3 | 6 | ||||||||||||||||||
Operating income | (2) | (3) | (6) | ||||||||||||||||||
Interest income | (3) | (4) | (3) | ||||||||||||||||||
Other (income) expense, net | (42) | (43) | (45) | ||||||||||||||||||
Income from continuing operations before income taxes | 43 | 44 | 42 | ||||||||||||||||||
Provision for income taxes | (1) | (1) | |||||||||||||||||||
Equity income from subsidiaries | 3,142 | 3,185 | 1,425 | ||||||||||||||||||
Income from continuing operations | 1,468 | ||||||||||||||||||||
Net income | 3,186 | 3,229 | 1,468 | ||||||||||||||||||
Non-Guarantors | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Net sales | 198 | 333 | 232 | ||||||||||||||||||
Net sales | 198 | 333 | 232 | ||||||||||||||||||
Cost of products sold | 185 | 248 | 235 | ||||||||||||||||||
Selling, general and administrative expenses, net | 167 | 281 | 261 | ||||||||||||||||||
(Gain) loss on divestitures | (16) | (28) | |||||||||||||||||||
Amortization expense | 1 | ||||||||||||||||||||
Operating income | (139) | (168) | (264) | ||||||||||||||||||
Interest and debt expense | 9 | 7 | 6 | ||||||||||||||||||
Interest income | (1) | ||||||||||||||||||||
Other (income) expense, net | 3 | (16) | (17) | ||||||||||||||||||
Income from continuing operations before income taxes | (150) | (159) | (253) | ||||||||||||||||||
Provision for income taxes | (51) | (62) | (98) | ||||||||||||||||||
Income from continuing operations | (155) | ||||||||||||||||||||
Net income | (99) | (97) | (155) | ||||||||||||||||||
Non-Guarantors | RJR Tobacco | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Net sales | 2,229 | 2,039 | 1,701 | ||||||||||||||||||
Net sales | 2,229 | 2,039 | 1,701 | ||||||||||||||||||
Cost of products sold | 837 | 746 | 686 | ||||||||||||||||||
Selling, general and administrative expenses, net | (834) | (302) | 161 | ||||||||||||||||||
(Gain) loss on divestitures | (4,861) | (5,068) | |||||||||||||||||||
Amortization expense | 7 | 6 | 7 | ||||||||||||||||||
Operating income | 7,080 | 6,657 | 847 | ||||||||||||||||||
Interest and debt expense | 86 | 94 | 67 | ||||||||||||||||||
Interest income | (2) | (1) | |||||||||||||||||||
Other (income) expense, net | 3 | (17) | (17) | ||||||||||||||||||
Income from continuing operations before income taxes | 6,993 | 6,580 | 798 | ||||||||||||||||||
Provision for income taxes | 2,543 | 2,427 | 280 | ||||||||||||||||||
Income from continuing operations | 518 | ||||||||||||||||||||
Net income | 4,450 | 4,153 | 518 | ||||||||||||||||||
RJR | RJR Tobacco | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Net sales | 10,365 | 8,714 | 6,728 | ||||||||||||||||||
Net sales, related party | 226 | 259 | 311 | ||||||||||||||||||
Net sales | 10,591 | 8,973 | 7,039 | ||||||||||||||||||
Cost of products sold | 4,323 | 4,277 | 3,641 | ||||||||||||||||||
Selling, general and administrative expenses, net | 2,719 | 2,318 | 1,629 | ||||||||||||||||||
(Gain) loss on divestitures | 1,887 | ||||||||||||||||||||
Amortization expense | 16 | 12 | 4 | ||||||||||||||||||
Asset impairment and exit charges | 99 | ||||||||||||||||||||
Operating income | 3,533 | 380 | 1,765 | ||||||||||||||||||
Interest and debt expense | 7 | 20 | 21 | ||||||||||||||||||
Interest income | (5) | (5) | (2) | ||||||||||||||||||
Other (income) expense, net | 12 | 2 | 1 | ||||||||||||||||||
Income from continuing operations before income taxes | 3,519 | 363 | 1,745 | ||||||||||||||||||
Provision for income taxes | 1,247 | 928 | 627 | ||||||||||||||||||
Equity income from subsidiaries | 850 | 3,732 | 279 | ||||||||||||||||||
Income from continuing operations | 1,397 | ||||||||||||||||||||
Income from discontinued operations, net of tax | 25 | ||||||||||||||||||||
Net income | 3,122 | 3,167 | 1,422 | ||||||||||||||||||
Eliminations | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Net sales | (130) | (236) | (181) | ||||||||||||||||||
Net sales | (130) | (236) | (181) | ||||||||||||||||||
Cost of products sold | (131) | (233) | (179) | ||||||||||||||||||
Selling, general and administrative expenses, net | 2 | ||||||||||||||||||||
(Gain) loss on divestitures | (2) | ||||||||||||||||||||
Operating income | 1 | (3) | (2) | ||||||||||||||||||
Interest and debt expense | (83) | (100) | (85) | ||||||||||||||||||
Interest income | 83 | 100 | 85 | ||||||||||||||||||
Other (income) expense, net | 43 | 43 | 43 | ||||||||||||||||||
Income from continuing operations before income taxes | (42) | (46) | (45) | ||||||||||||||||||
Equity income from subsidiaries | (6,726) | (3,633) | (1,687) | ||||||||||||||||||
Income from continuing operations | (1,732) | ||||||||||||||||||||
Net income | (6,768) | (3,679) | (1,732) | ||||||||||||||||||
Eliminations | RJR Tobacco | |||||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||||
Net sales | (317) | (337) | (269) | ||||||||||||||||||
Net sales | (317) | (337) | (269) | ||||||||||||||||||
Cost of products sold | (319) | (335) | (269) | ||||||||||||||||||
Selling, general and administrative expenses, net | 3 | ||||||||||||||||||||
Operating income | (1) | (2) | |||||||||||||||||||
Interest and debt expense | (86) | (103) | (88) | ||||||||||||||||||
Interest income | 86 | 103 | 88 | ||||||||||||||||||
Other (income) expense, net | 43 | 43 | 43 | ||||||||||||||||||
Income from continuing operations before income taxes | (44) | (45) | (43) | ||||||||||||||||||
Equity income from subsidiaries | (10,714) | (10,504) | (3,365) | ||||||||||||||||||
Income from continuing operations | (3,408) | ||||||||||||||||||||
Net income | $ (10,758) | $ (10,549) | $ (3,408) | ||||||||||||||||||
[1] | Excludes excise taxes of $4,343 million, $4,209 million and $3,625 million for the years ended December 31, 2016, 2015 and 2014, respectively. | ||||||||||||||||||||
[2] | Includes $99 million of asset impairment and exit charges for the year ended December 31, 2015. See note 6. | ||||||||||||||||||||
[3] | Includes MTM adjustment expense of $42 million for RJR Tobacco and $3 million for Corporate Expense for the year ended December 31, 2016. Includes MTM adjustment expense of $229 million for RJR Tobacco, $1 million for American Snuff and $16 million for Corporate Expense and All Other for the year ended December 31, 2015. Includes MTM adjustment expense of $422 million for RJR Tobacco, $4 million for American Snuff and $26 million for Corporate Expense and All Other for the year ended December 31, 2014. | ||||||||||||||||||||
[4] | Includes NPM Adjustment credits of $388 million, $293 million and $341 million for RJR Tobacco for the years ended December 31, 2016, 2015 and 2014, respectively. | ||||||||||||||||||||
[5] | First quarter of 2016 reflects the impact of the sale of the international rights to the NATURAL AMERICAN SPIRIT brand. Fourth quarter of 2016 includes an additional MTM adjustment expense of $24 million for a total of $45 million. | ||||||||||||||||||||
[6] | Includes NPM Adjustment credits of $91 million in the first quarter of 2016, $98 million in the second quarter of 2016, $104 million in the third quarter of 2016 and $97 million in the fourth quarter of 2016, see “— Cost of Products Sold” in note 1. The fourth quarter of 2016 includes an MTM adjustment of $21 million. | ||||||||||||||||||||
[7] | Includes NPM Adjustment credits of $66 million in the first quarter of 2015, $69 million in the second quarter of 2015, $76 million in the third quarter of 2015 and $86 million in the fourth quarter of 2015, see “— Cost of Products Sold” in note 1. The fourth quarter of 2015 includes an MTM adjustment expense of $120 million. | ||||||||||||||||||||
[8] | Second quarter of 2015 reflects the impact of the Lorillard Merger and Divestiture. Fourth quarter of 2015 includes an additional MTM adjustment expense of $126 million for a total of $246 million. |
Condensed Consolidating Stat149
Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | [1],[2] | Sep. 30, 2016 | [1],[2] | Jun. 30, 2016 | [1],[2] | Mar. 31, 2016 | [1],[2] | Dec. 31, 2015 | [3],[4] | Sep. 30, 2015 | [3],[4] | Jun. 30, 2015 | [3],[4] | Mar. 31, 2015 | [3],[4] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||
Net income (loss) | $ 851 | $ 861 | $ 796 | $ 3,565 | $ 279 | $ 657 | $ 1,928 | $ 389 | $ 6,073 | $ 3,253 | $ 1,470 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | (11) | 50 | (277) | ||||||||||||||||
Long-term investments | 14 | 2 | |||||||||||||||||
Hedging instruments | 11 | 1 | 1 | ||||||||||||||||
Cumulative translation adjustment and other | 10 | (25) | (34) | ||||||||||||||||
Comprehensive income | 6,097 | 3,279 | 1,162 | ||||||||||||||||
RAI | |||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||
Net income (loss) | 6,073 | 3,253 | 1,470 | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | (11) | 50 | (277) | ||||||||||||||||
Long-term investments | 14 | 2 | |||||||||||||||||
Hedging instruments | 11 | 1 | 1 | ||||||||||||||||
Cumulative translation adjustment and other | 10 | (25) | (34) | ||||||||||||||||
Comprehensive income | 6,097 | 3,279 | 1,162 | ||||||||||||||||
Guarantors | |||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||
Net income (loss) | 6,867 | 3,776 | 1,887 | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | (12) | 50 | (271) | ||||||||||||||||
Long-term investments | 14 | 2 | |||||||||||||||||
Cumulative translation adjustment and other | 10 | (27) | (34) | ||||||||||||||||
Comprehensive income | 6,879 | 3,799 | 1,584 | ||||||||||||||||
Guarantors | RJR Tobacco | |||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||
Net income (loss) | 3,186 | 3,229 | 1,468 | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | (10) | 51 | (261) | ||||||||||||||||
Long-term investments | 14 | 2 | |||||||||||||||||
Cumulative translation adjustment and other | 10 | (25) | (32) | ||||||||||||||||
Comprehensive income | 3,200 | 3,255 | 1,177 | ||||||||||||||||
Non-Guarantors | |||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||
Net income (loss) | (99) | (97) | (155) | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | (4) | 13 | (1) | ||||||||||||||||
Cumulative translation adjustment and other | 13 | (37) | (48) | ||||||||||||||||
Comprehensive income | (90) | (121) | (204) | ||||||||||||||||
Non-Guarantors | RJR Tobacco | |||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||
Net income (loss) | 4,450 | 4,153 | 518 | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | (5) | 12 | (11) | ||||||||||||||||
Cumulative translation adjustment and other | 10 | (26) | (33) | ||||||||||||||||
Comprehensive income | 4,455 | 4,139 | 474 | ||||||||||||||||
RJR | RJR Tobacco | |||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||
Net income (loss) | 3,122 | 3,167 | 1,422 | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | (6) | 39 | (259) | ||||||||||||||||
Long-term investments | 14 | 2 | |||||||||||||||||
Cumulative translation adjustment and other | 7 | (25) | (32) | ||||||||||||||||
Comprehensive income | 3,137 | 3,181 | 1,133 | ||||||||||||||||
Eliminations | |||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||
Net income (loss) | (6,768) | (3,679) | (1,732) | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | 16 | (63) | 272 | ||||||||||||||||
Long-term investments | (14) | (2) | |||||||||||||||||
Cumulative translation adjustment and other | (23) | 64 | 82 | ||||||||||||||||
Comprehensive income | (6,789) | (3,678) | (1,380) | ||||||||||||||||
Eliminations | RJR Tobacco | |||||||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||||||
Net income (loss) | (10,758) | (10,549) | (3,408) | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Retirement benefits, net of tax expense (benefit) (2016 - $(6); 2015 - $32; 2014 - $(178)) | 21 | (102) | 531 | ||||||||||||||||
Long-term investments | (28) | (4) | |||||||||||||||||
Cumulative translation adjustment and other | (27) | 76 | 97 | ||||||||||||||||
Comprehensive income | $ (10,792) | $ (10,575) | $ (2,784) | ||||||||||||||||
[1] | First quarter of 2016 reflects the impact of the sale of the international rights to the NATURAL AMERICAN SPIRIT brand. Fourth quarter of 2016 includes an additional MTM adjustment expense of $24 million for a total of $45 million. | ||||||||||||||||||
[2] | Includes NPM Adjustment credits of $91 million in the first quarter of 2016, $98 million in the second quarter of 2016, $104 million in the third quarter of 2016 and $97 million in the fourth quarter of 2016, see “— Cost of Products Sold” in note 1. The fourth quarter of 2016 includes an MTM adjustment of $21 million. | ||||||||||||||||||
[3] | Includes NPM Adjustment credits of $66 million in the first quarter of 2015, $69 million in the second quarter of 2015, $76 million in the third quarter of 2015 and $86 million in the fourth quarter of 2015, see “— Cost of Products Sold” in note 1. The fourth quarter of 2015 includes an MTM adjustment expense of $120 million. | ||||||||||||||||||
[4] | Second quarter of 2015 reflects the impact of the Lorillard Merger and Divestiture. Fourth quarter of 2015 includes an additional MTM adjustment expense of $126 million for a total of $246 million. |
Reclassification Out of Accu150
Reclassification Out of Accumulated Other Comprehensive Loss and Affected Line Items in Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Millions | Jun. 12, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | [5],[6] | Jun. 30, 2016 | [5],[6] | Mar. 31, 2016 | [5],[6] | Dec. 31, 2015 | Sep. 30, 2015 | [7],[8] | Jun. 30, 2015 | [7],[8] | Mar. 31, 2015 | [7],[8] | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | [1] | $ (4,841) | $ (4,688) | $ (4,058) | |||||||||||||||||
Selling, general and administrative expenses | (1,931) | (2,098) | (1,871) | ||||||||||||||||||
MTM adjustment | (45) | (246) | |||||||||||||||||||
Operating income | [2],[3],[4] | 10,569 | 6,953 | 2,531 | |||||||||||||||||
Other (income) expense, net | (260) | (5) | 14 | ||||||||||||||||||
Interest and debt expense | 626 | 570 | 286 | ||||||||||||||||||
Provision for income taxes | 3,618 | 3,131 | 817 | ||||||||||||||||||
Gain on divestitures | $ 3,181 | 4,861 | 3,181 | ||||||||||||||||||
Net income | $ 851 | [5],[6] | $ 861 | $ 796 | $ 3,565 | $ 279 | [7],[8] | $ 657 | $ 1,928 | $ 389 | 6,073 | 3,253 | 1,470 | ||||||||
RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | (42) | (229) | (422) | ||||||||||||||||||
Cost of products sold | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | (21) | (120) | |||||||||||||||||||
Selling, General and Administrative Expenses | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | $ (24) | $ (126) | |||||||||||||||||||
RAI | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses | (41) | (79) | (75) | ||||||||||||||||||
Operating income | (41) | (79) | (75) | ||||||||||||||||||
Other (income) expense, net | (244) | (20) | (4) | ||||||||||||||||||
Interest and debt expense | 619 | 559 | 286 | ||||||||||||||||||
Provision for income taxes | (171) | (224) | (89) | ||||||||||||||||||
Equity income from subsidiaries | 6,722 | 3,587 | 1,661 | ||||||||||||||||||
Net income | 6,073 | 3,253 | 1,470 | ||||||||||||||||||
Guarantors | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | (4,787) | (4,673) | (4,002) | ||||||||||||||||||
Selling, general and administrative expenses | (1,721) | (1,738) | (1,535) | ||||||||||||||||||
Operating income | 10,748 | 7,203 | 2,872 | ||||||||||||||||||
Other (income) expense, net | 30 | 42 | 44 | ||||||||||||||||||
Interest and debt expense | 81 | 104 | 79 | ||||||||||||||||||
Provision for income taxes | 3,840 | 3,417 | 1,004 | ||||||||||||||||||
Gain on divestitures | 4,843 | 3,153 | |||||||||||||||||||
Equity income from subsidiaries | 4 | 46 | 26 | ||||||||||||||||||
Net income | 6,867 | 3,776 | 1,887 | ||||||||||||||||||
Guarantors | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses | (2) | (3) | (6) | ||||||||||||||||||
Operating income | (2) | (3) | (6) | ||||||||||||||||||
Other (income) expense, net | 42 | 43 | 45 | ||||||||||||||||||
Provision for income taxes | (1) | (1) | |||||||||||||||||||
Equity income from subsidiaries | 3,142 | 3,185 | 1,425 | ||||||||||||||||||
Net income | 3,186 | 3,229 | 1,468 | ||||||||||||||||||
Non-Guarantors | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | (185) | (248) | (235) | ||||||||||||||||||
Selling, general and administrative expenses | (167) | (281) | (261) | ||||||||||||||||||
Operating income | (139) | (168) | (264) | ||||||||||||||||||
Other (income) expense, net | (3) | 16 | 17 | ||||||||||||||||||
Interest and debt expense | 9 | 7 | 6 | ||||||||||||||||||
Provision for income taxes | (51) | (62) | (98) | ||||||||||||||||||
Gain on divestitures | 16 | 28 | |||||||||||||||||||
Net income | (99) | (97) | (155) | ||||||||||||||||||
Non-Guarantors | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | (837) | (746) | (686) | ||||||||||||||||||
Selling, general and administrative expenses | 834 | 302 | (161) | ||||||||||||||||||
Operating income | 7,080 | 6,657 | 847 | ||||||||||||||||||
Other (income) expense, net | (3) | 17 | 17 | ||||||||||||||||||
Interest and debt expense | 86 | 94 | 67 | ||||||||||||||||||
Provision for income taxes | 2,543 | 2,427 | 280 | ||||||||||||||||||
Gain on divestitures | 4,861 | 5,068 | |||||||||||||||||||
Net income | 4,450 | 4,153 | 518 | ||||||||||||||||||
RJR | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | (4,323) | (4,277) | (3,641) | ||||||||||||||||||
Selling, general and administrative expenses | (2,719) | (2,318) | (1,629) | ||||||||||||||||||
Operating income | 3,533 | 380 | 1,765 | ||||||||||||||||||
Other (income) expense, net | (12) | (2) | (1) | ||||||||||||||||||
Interest and debt expense | 7 | 20 | 21 | ||||||||||||||||||
Provision for income taxes | 1,247 | 928 | 627 | ||||||||||||||||||
Gain on divestitures | (1,887) | ||||||||||||||||||||
Equity income from subsidiaries | 850 | 3,732 | 279 | ||||||||||||||||||
Net income | 3,122 | 3,167 | 1,422 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Net income | 59 | 129 | 252 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Prior Service Costs | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | (20) | (20) | (21) | ||||||||||||||||||
Selling, general and administrative expenses | (19) | (19) | (18) | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Settlement Costs | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses | 2 | ||||||||||||||||||||
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 | (20) | (20) | (21) | ||||||||||||||||||
Selling, general and administrative expenses | (19) | (19) | (18) | ||||||||||||||||||
Operating income | 8 | 207 | 413 | ||||||||||||||||||
Other (income) expense, net | 413 | ||||||||||||||||||||
Provision for income taxes | (1) | (79) | (162) | ||||||||||||||||||
Net income | 7 | 128 | 251 | ||||||||||||||||||
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 | 24 | ||||||||||||||||||||
Provision for income taxes | (10) | ||||||||||||||||||||
Net income | 14 | ||||||||||||||||||||
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 | 16 | ||||||||||||||||||||
Interest and debt expense | 1 | 2 | 2 | ||||||||||||||||||
Provision for income taxes | (6) | (1) | (1) | ||||||||||||||||||
Net income | 11 | 1 | 1 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Cumulative Translation Adjustment and Other | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Gain on divestitures | 27 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Cost of products sold | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 21 | 120 | 205 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Selling, General and Administrative Expenses | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 24 | 126 | 247 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RAI | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Equity income from subsidiaries | 44 | 124 | 245 | ||||||||||||||||||
Net income | 59 | 129 | 252 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RAI | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Operating income | 4 | 5 | 10 | ||||||||||||||||||
Other (income) expense, net | 10 | ||||||||||||||||||||
Provision for income taxes | (1) | (4) | |||||||||||||||||||
Net income | 4 | 4 | 6 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RAI | 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 | 16 | ||||||||||||||||||||
Interest and debt expense | 1 | 2 | 2 | ||||||||||||||||||
Provision for income taxes | (6) | (1) | (1) | ||||||||||||||||||
Net income | 11 | 1 | 1 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RAI | Cumulative Translation Adjustment and Other | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Equity income from subsidiaries | 44 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RAI | Selling, General and Administrative Expenses | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 4 | 5 | 10 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Net income | 44 | 124 | 244 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Equity income from subsidiaries | 39 | 118 | 234 | ||||||||||||||||||
Net income | 41 | 119 | 237 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | Amortization of Prior Service Costs | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | (20) | (20) | (21) | ||||||||||||||||||
Selling, general and administrative expenses | (19) | (19) | (18) | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | Amortization of Prior Service Costs | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses | (1) | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | Settlement Costs | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses | 2 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Operating income | 10 | 202 | 402 | ||||||||||||||||||
Provision for income taxes | (1) | (78) | (158) | ||||||||||||||||||
Net income | 9 | 124 | 244 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | Accumulated Defined Benefit Plans Adjustment | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Operating income | 2 | 2 | |||||||||||||||||||
Other (income) expense, net | 4 | ||||||||||||||||||||
Provision for income taxes | (1) | (1) | |||||||||||||||||||
Net income | 2 | 1 | 3 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | Accumulated Net Unrealized Investment Gain (Loss) | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Other (income) expense, net | 24 | ||||||||||||||||||||
Provision for income taxes | (10) | ||||||||||||||||||||
Net income | 14 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | Cumulative Translation Adjustment and Other | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Equity income from subsidiaries | 21 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | Cost of products sold | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 21 | 120 | 205 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | Selling, General and Administrative Expenses | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 26 | 121 | 236 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Guarantors | Selling, General and Administrative Expenses | Accumulated Defined Benefit Plans Adjustment | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 2 | 3 | 4 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Net income | 21 | 1 | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Net income | 24 | 4 | 8 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors | Amortization of Prior Service Costs | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | (1) | (1) | |||||||||||||||||||
Selling, general and administrative expenses | (1) | (1) | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Operating income | (6) | 1 | |||||||||||||||||||
Net income | (6) | 1 | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors | Accumulated Defined Benefit Plans Adjustment | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Operating income | (3) | 7 | |||||||||||||||||||
Other (income) expense, net | 13 | ||||||||||||||||||||
Provision for income taxes | (3) | (5) | |||||||||||||||||||
Net income | (3) | 4 | 8 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors | Cumulative Translation Adjustment and Other | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Gain on divestitures | 27 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors | Cumulative Translation Adjustment and Other | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Gain on divestitures | 27 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors | Cost of products sold | Accumulated Defined Benefit Plans Adjustment | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 1 | 10 | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors | Selling, General and Administrative Expenses | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | (6) | 1 | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Non-Guarantors | Selling, General and Administrative Expenses | Accumulated Defined Benefit Plans Adjustment | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | (3) | 8 | 5 | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Net income | 234 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Equity income from subsidiaries | 27 | ||||||||||||||||||||
Net income | 45 | 119 | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | Amortization of Prior Service Costs | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | (20) | ||||||||||||||||||||
Selling, general and administrative expenses | (17) | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | Amortization of Prior Service Costs | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | (20) | (19) | |||||||||||||||||||
Selling, general and administrative expenses | (19) | (17) | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | Settlement Costs | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses | 2 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Other (income) expense, net | 386 | ||||||||||||||||||||
Provision for income taxes | (152) | ||||||||||||||||||||
Net income | 234 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | Accumulated Defined Benefit Plans Adjustment | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Operating income | 5 | 193 | |||||||||||||||||||
Provision for income taxes | (1) | (74) | |||||||||||||||||||
Net income | 4 | 119 | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | Accumulated Net Unrealized Investment Gain (Loss) | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Other (income) expense, net | 24 | ||||||||||||||||||||
Provision for income taxes | (10) | ||||||||||||||||||||
Net income | 14 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | Cost of products sold | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 195 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | Cost of products sold | Accumulated Defined Benefit Plans Adjustment | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 21 | 119 | |||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | Selling, General and Administrative Expenses | Accumulated Defined Benefit Plans Adjustment | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 228 | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | RJR | Selling, General and Administrative Expenses | Accumulated Defined Benefit Plans Adjustment | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
MTM adjustment | 21 | 110 | |||||||||||||||||||
Eliminations | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | 131 | 233 | 179 | ||||||||||||||||||
Selling, general and administrative expenses | (2) | ||||||||||||||||||||
Operating income | 1 | (3) | (2) | ||||||||||||||||||
Other (income) expense, net | (43) | (43) | (43) | ||||||||||||||||||
Interest and debt expense | (83) | (100) | (85) | ||||||||||||||||||
Gain on divestitures | 2 | ||||||||||||||||||||
Equity income from subsidiaries | (6,726) | (3,633) | (1,687) | ||||||||||||||||||
Net income | (6,768) | (3,679) | (1,732) | ||||||||||||||||||
Eliminations | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Cost of products sold | 319 | 335 | 269 | ||||||||||||||||||
Selling, general and administrative expenses | (3) | ||||||||||||||||||||
Operating income | (1) | (2) | |||||||||||||||||||
Other (income) expense, net | (43) | (43) | (43) | ||||||||||||||||||
Interest and debt expense | (86) | (103) | (88) | ||||||||||||||||||
Equity income from subsidiaries | (10,714) | (10,504) | (3,365) | ||||||||||||||||||
Net income | (10,758) | (10,549) | (3,408) | ||||||||||||||||||
Eliminations | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Equity income from subsidiaries | (124) | (245) | |||||||||||||||||||
Net income | (65) | (124) | (245) | ||||||||||||||||||
Eliminations | Reclassification out of Accumulated Other Comprehensive Income | RJR Tobacco | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Equity income from subsidiaries | (110) | (242) | (479) | ||||||||||||||||||
Net income | (110) | $ (242) | $ (479) | ||||||||||||||||||
Eliminations | Reclassification out of Accumulated Other Comprehensive Income | Cumulative Translation Adjustment and Other | |||||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||
Equity income from subsidiaries | $ (65) | ||||||||||||||||||||
[1] | Excludes excise taxes of $4,343 million, $4,209 million and $3,625 million for the years ended December 31, 2016, 2015 and 2014, respectively. | ||||||||||||||||||||
[2] | Includes $99 million of asset impairment and exit charges for the year ended December 31, 2015. See note 6. | ||||||||||||||||||||
[3] | Includes MTM adjustment expense of $42 million for RJR Tobacco and $3 million for Corporate Expense for the year ended December 31, 2016. Includes MTM adjustment expense of $229 million for RJR Tobacco, $1 million for American Snuff and $16 million for Corporate Expense and All Other for the year ended December 31, 2015. Includes MTM adjustment expense of $422 million for RJR Tobacco, $4 million for American Snuff and $26 million for Corporate Expense and All Other for the year ended December 31, 2014. | ||||||||||||||||||||
[4] | Includes NPM Adjustment credits of $388 million, $293 million and $341 million for RJR Tobacco for the years ended December 31, 2016, 2015 and 2014, respectively. | ||||||||||||||||||||
[5] | First quarter of 2016 reflects the impact of the sale of the international rights to the NATURAL AMERICAN SPIRIT brand. Fourth quarter of 2016 includes an additional MTM adjustment expense of $24 million for a total of $45 million. | ||||||||||||||||||||
[6] | Includes NPM Adjustment credits of $91 million in the first quarter of 2016, $98 million in the second quarter of 2016, $104 million in the third quarter of 2016 and $97 million in the fourth quarter of 2016, see “— Cost of Products Sold” in note 1. The fourth quarter of 2016 includes an MTM adjustment of $21 million. | ||||||||||||||||||||
[7] | Includes NPM Adjustment credits of $66 million in the first quarter of 2015, $69 million in the second quarter of 2015, $76 million in the third quarter of 2015 and $86 million in the fourth quarter of 2015, see “— Cost of Products Sold” in note 1. The fourth quarter of 2015 includes an MTM adjustment expense of $120 million. | ||||||||||||||||||||
[8] | Second quarter of 2015 reflects the impact of the Lorillard Merger and Divestiture. Fourth quarter of 2015 includes an additional MTM adjustment expense of $126 million for a total of $246 million. |
Condensed Consolidating Stat151
Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Millions | Jun. 12, 2015 | Jul. 15, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements Captions [Line Items] | |||||
Cash flows from (used in) operating activities | $ 1,280 | $ 196 | $ 1,623 | ||
Cash flows from (used in) investing activities: | |||||
Capital expenditures | (206) | (174) | (204) | ||
Proceeds from termination of joint venture | 35 | ||||
Proceeds from settlement of investments | 266 | 332 | 4 | ||
Acquisition, net of cash acquired | (17,220) | ||||
Proceeds from divestitures | $ 7,100 | 5,015 | 7,056 | ||
Other, net | 3 | 1 | (40) | ||
Net cash flows from (used in) investing activities | 5,078 | (10,005) | (205) | ||
Cash flows from (used in) financing activities: | |||||
Dividends paid on common stock | (2,369) | (1,583) | (1,411) | ||
Repurchase of common stock | (226) | (124) | (440) | ||
Proceeds from BAT Share Purchase | $ 4,700 | $ 4,700 | 4,673 | ||
Issuance of long-term debt | 9,000 | 8,975 | |||
Repayments of long-term debt | (500) | (450) | |||
Early extinguishment of debt | (3,650) | ||||
Premiums paid for early extinguishment of debt | (207) | ||||
Proceeds from termination of interest rate swaps | 66 | ||||
Debt issuance costs and financing fees | (8) | (70) | (79) | ||
Borrowings under revolving credit facility | 1,400 | 1,000 | |||
Repayments of borrowings under revolving credit facility | (1,400) | (1,000) | |||
Excess tax benefit on stock-based compensation plans | 28 | 17 | 12 | ||
Net cash flows from (used in) financing activities | (6,866) | 11,438 | (1,918) | ||
Effect of exchange rate changes on cash and cash equivalents | (8) | (28) | (34) | ||
Net change in cash and cash equivalents | (516) | 1,601 | (534) | ||
Cash and cash equivalents at beginning of year | 2,567 | 966 | 1,500 | ||
Cash and cash equivalents at end of year | 2,051 | 2,567 | 966 | ||
RJR Tobacco | |||||
Cash flows from (used in) investing activities: | |||||
Capital expenditures | (130) | (84) | (53) | ||
RAI | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Cash flows from (used in) operating activities | (413) | (2,279) | 1,277 | ||
Cash flows from (used in) investing activities: | |||||
Acquisition, net of cash acquired | (18,278) | ||||
Proceeds from divestitures | 5,015 | 7,056 | |||
Return of intercompany investments | 2,274 | 185 | 165 | ||
Contributions to intercompany investments | (16) | (32) | |||
Other, net | 193 | 10 | 250 | ||
Net cash flows from (used in) investing activities | 7,466 | (11,027) | 383 | ||
Cash flows from (used in) financing activities: | |||||
Dividends paid on common stock | (2,369) | (1,583) | (1,411) | ||
Repurchase of common stock | (226) | (124) | (440) | ||
Proceeds from BAT Share Purchase | 4,673 | ||||
Issuance of long-term debt | 8,975 | ||||
Repayments of long-term debt | (415) | (450) | |||
Early extinguishment of debt | (3,642) | ||||
Premiums paid for early extinguishment of debt | (206) | ||||
Debt issuance costs and financing fees | (8) | (70) | (79) | ||
Borrowings under revolving credit facility | 1,400 | 1,000 | |||
Repayments of borrowings under revolving credit facility | (1,400) | (1,000) | |||
Excess tax benefit on stock-based compensation plans | 28 | 17 | 12 | ||
Dividends paid on preferred stock | (43) | (43) | (43) | ||
Other, net | (21) | 2,384 | (41) | ||
Net cash flows from (used in) financing activities | (6,902) | 13,779 | (2,002) | ||
Net change in cash and cash equivalents | 151 | 473 | (342) | ||
Cash and cash equivalents at beginning of year | 575 | 102 | 444 | ||
Cash and cash equivalents at end of year | 726 | 575 | 102 | ||
Guarantors | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Cash flows from (used in) operating activities | 3,162 | 3,219 | 1,865 | ||
Cash flows from (used in) investing activities: | |||||
Capital expenditures | (211) | (160) | (265) | ||
Proceeds from settlement of investments | 266 | 332 | 4 | ||
Acquisition, net of cash acquired | 1,001 | ||||
Return of intercompany investments | 26 | ||||
Other, net | 24 | 22 | 35 | ||
Net cash flows from (used in) investing activities | 105 | 1,195 | (226) | ||
Cash flows from (used in) financing activities: | |||||
Dividends paid on common stock | (1,152) | (709) | (1,301) | ||
Repayments of long-term debt | (85) | ||||
Early extinguishment of debt | (8) | ||||
Premiums paid for early extinguishment of debt | (1) | ||||
Proceeds from termination of interest rate swaps | 66 | ||||
Distribution of equity | (2,274) | (185) | (165) | ||
Other, net | (360) | (2,445) | (400) | ||
Net cash flows from (used in) financing activities | (3,814) | (3,339) | (1,866) | ||
Net change in cash and cash equivalents | (547) | 1,075 | (227) | ||
Cash and cash equivalents at beginning of year | 1,544 | 469 | 696 | ||
Cash and cash equivalents at end of year | 997 | 1,544 | 469 | ||
Guarantors | RJR Tobacco | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Cash flows from (used in) operating activities | 1,918 | 549 | 1,424 | ||
Cash flows from (used in) investing activities: | |||||
Proceeds from settlement of investments | 2 | ||||
Return of intercompany investments | 1,473 | 344 | 21 | ||
Other, net | 17 | 17 | 19 | ||
Net cash flows from (used in) investing activities | 1,490 | 361 | 42 | ||
Cash flows from (used in) financing activities: | |||||
Dividends paid on common stock | (1,152) | (709) | (1,301) | ||
Distribution of equity | (2,274) | (185) | (165) | ||
Net cash flows from (used in) financing activities | (3,426) | (894) | (1,466) | ||
Net change in cash and cash equivalents | (18) | 16 | |||
Cash and cash equivalents at beginning of year | 19 | 3 | 3 | ||
Cash and cash equivalents at end of year | 1 | 19 | 3 | ||
Non-Guarantors | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Cash flows from (used in) operating activities | (234) | 6 | (179) | ||
Cash flows from (used in) investing activities: | |||||
Capital expenditures | (7) | (12) | (94) | ||
Proceeds from termination of joint venture | 35 | ||||
Acquisition, net of cash acquired | 57 | ||||
Other, net | 126 | ||||
Net cash flows from (used in) investing activities | (7) | 45 | 67 | ||
Cash flows from (used in) financing activities: | |||||
Dividends paid on common stock | (28) | ||||
Distribution of equity | (26) | ||||
Receipt of equity | 16 | 32 | |||
Other, net | 167 | 30 | 149 | ||
Net cash flows from (used in) financing activities | 129 | 30 | 181 | ||
Effect of exchange rate changes on cash and cash equivalents | (8) | (28) | (34) | ||
Net change in cash and cash equivalents | (120) | 53 | 35 | ||
Cash and cash equivalents at beginning of year | 448 | 395 | 360 | ||
Cash and cash equivalents at end of year | 328 | 448 | 395 | ||
Non-Guarantors | RJR Tobacco | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Cash flows from (used in) operating activities | 827 | 422 | 524 | ||
Cash flows from (used in) investing activities: | |||||
Capital expenditures | (75) | (73) | (127) | ||
Proceeds from termination of joint venture | 35 | ||||
Acquisition, net of cash acquired | 535 | ||||
Other, net | 21 | 21 | 187 | ||
Net cash flows from (used in) investing activities | (54) | 483 | 95 | ||
Cash flows from (used in) financing activities: | |||||
Dividends paid on common stock | (555) | (209) | (250) | ||
Distribution of equity | (526) | (11) | (105) | ||
Receipt of equity | 16 | 32 | |||
Other, net | (210) | (27) | (267) | ||
Net cash flows from (used in) financing activities | (1,275) | (247) | (590) | ||
Effect of exchange rate changes on cash and cash equivalents | (8) | (28) | (34) | ||
Net change in cash and cash equivalents | (510) | 630 | (5) | ||
Cash and cash equivalents at beginning of year | 1,164 | 534 | 539 | ||
Cash and cash equivalents at end of year | 654 | 1,164 | 534 | ||
RJR | RJR Tobacco | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Cash flows from (used in) operating activities | 2,462 | 2,924 | 1,364 | ||
Cash flows from (used in) investing activities: | |||||
Capital expenditures | (143) | (99) | (232) | ||
Proceeds from settlement of investments | 266 | 332 | 2 | ||
Acquisition, net of cash acquired | 523 | ||||
Return of intercompany investments | 508 | 11 | 105 | ||
Other, net | 3 | 1 | (8) | ||
Net cash flows from (used in) investing activities | 634 | 768 | (133) | ||
Cash flows from (used in) financing activities: | |||||
Dividends paid on common stock | (1,752) | (461) | (1,377) | ||
Repayments of long-term debt | (85) | ||||
Early extinguishment of debt | (8) | ||||
Premiums paid for early extinguishment of debt | (1) | ||||
Proceeds from termination of interest rate swaps | 66 | ||||
Distribution of equity | (1,455) | (344) | (21) | ||
Other, net | (2,405) | (20) | |||
Net cash flows from (used in) financing activities | (3,235) | (3,210) | (1,418) | ||
Net change in cash and cash equivalents | (139) | 482 | (187) | ||
Cash and cash equivalents at beginning of year | 809 | 327 | 514 | ||
Cash and cash equivalents at end of year | 670 | 809 | 327 | ||
Eliminations | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Cash flows from (used in) operating activities | (1,235) | (750) | (1,340) | ||
Cash flows from (used in) investing activities: | |||||
Capital expenditures | 12 | (2) | 155 | ||
Return of intercompany investments | (2,300) | (185) | (165) | ||
Contributions to intercompany investments | 16 | 32 | |||
Other, net | (214) | (31) | (451) | ||
Net cash flows from (used in) investing activities | (2,486) | (218) | (429) | ||
Cash flows from (used in) financing activities: | |||||
Dividends paid on common stock | 1,180 | 709 | 1,301 | ||
Dividends paid on preferred stock | 43 | 43 | 43 | ||
Distribution of equity | 2,300 | 185 | 165 | ||
Receipt of equity | (16) | (32) | |||
Other, net | 214 | 31 | 292 | ||
Net cash flows from (used in) financing activities | 3,721 | 968 | 1,769 | ||
Eliminations | RJR Tobacco | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Cash flows from (used in) operating activities | (3,514) | (1,420) | (2,966) | ||
Cash flows from (used in) investing activities: | |||||
Capital expenditures | 12 | (2) | 155 | ||
Return of intercompany investments | (4,255) | (540) | (291) | ||
Contributions to intercompany investments | 16 | 32 | |||
Other, net | (231) | (48) | (488) | ||
Net cash flows from (used in) investing activities | (4,458) | (590) | (592) | ||
Cash flows from (used in) financing activities: | |||||
Dividends paid on common stock | 3,459 | 1,379 | 2,928 | ||
Dividends paid on preferred stock | 43 | 43 | 43 | ||
Distribution of equity | 4,255 | 540 | 291 | ||
Receipt of equity | (16) | (32) | |||
Other, net | 231 | 48 | 328 | ||
Net cash flows from (used in) financing activities | $ 7,972 | $ 2,010 | $ 3,558 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 12, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | |||||
Cash and cash equivalents | $ 2,051 | $ 2,567 | $ 966 | $ 1,500 | |
Short-term investments | 149 | ||||
Accounts receivable | 66 | 68 | |||
Accounts receivable, related party | 113 | 38 | |||
Other receivables | 10 | 35 | |||
Inventories | 1,645 | 1,734 | |||
Other current assets | 353 | 564 | |||
Total current assets | 4,238 | 5,155 | |||
Property, plant and equipment, net | 1,348 | 1,255 | |||
Trademarks and other intangible assets, net of accumulated amortization | 29,444 | 29,467 | |||
Goodwill | 15,992 | 15,993 | $ 9,853 | 8,016 | |
Other assets and deferred charges | 73 | 230 | |||
Total assets | 51,095 | 52,100 | |||
Liabilities and shareholders’ equity | |||||
Accounts payable | 221 | 179 | |||
Tobacco settlement accruals | 2,498 | 2,816 | |||
Due to related party | 7 | 9 | |||
Deferred revenue, related party | 66 | 33 | |||
Current maturities of long-term debt | 501 | 506 | |||
Dividends payable on common stock | 656 | 514 | |||
Other current liabilities | 1,036 | 1,234 | |||
Total current liabilities | 4,985 | 5,291 | |||
Long-term debt (less current maturities) | 12,664 | 16,849 | $ 3,895 | ||
Long-term deferred income taxes, net | 9,607 | 9,204 | |||
Long-term retirement benefits (less current portion) | 1,869 | 2,265 | |||
Long-term deferred revenue, related party | 39 | ||||
Other noncurrent liabilities | 220 | 239 | |||
Shareholders’ equity | 21,711 | 18,252 | 4,522 | 5,167 | |
Total liabilities and shareholders' equity | 51,095 | 52,100 | |||
RJR Tobacco | |||||
Assets | |||||
Goodwill | 13,306 | 13,306 | 5,302 | ||
RAI | |||||
Assets | |||||
Cash and cash equivalents | 726 | 575 | 102 | 444 | |
Other receivables | 63 | 70 | |||
Other current assets | 112 | 116 | |||
Total current assets | 901 | 761 | |||
Property, plant and equipment, net | 2 | 3 | |||
Long-term intercompany notes receivable | 1,390 | 1,583 | |||
Investment in subsidiaries | 36,865 | 37,151 | |||
Other assets and deferred charges | 80 | 189 | |||
Total assets | 39,238 | 39,687 | |||
Liabilities and shareholders’ equity | |||||
Accounts payable | 1 | 2 | |||
Current maturities of long-term debt | 448 | 420 | |||
Dividends payable on common stock | 656 | 514 | |||
Other current liabilities | 3,767 | 3,707 | |||
Total current liabilities | 4,872 | 4,643 | |||
Long-term intercompany notes payable | 148 | 169 | |||
Long-term debt (less current maturities) | 12,404 | 16,522 | |||
Long-term retirement benefits (less current portion) | 59 | 57 | |||
Other noncurrent liabilities | 44 | 44 | |||
Shareholders’ equity | 21,711 | 18,252 | |||
Total liabilities and shareholders' equity | 39,238 | 39,687 | |||
Guarantors | |||||
Assets | |||||
Cash and cash equivalents | 997 | 1,544 | 469 | 696 | |
Short-term investments | 149 | ||||
Accounts receivable | 62 | 62 | |||
Accounts receivable, related party | 113 | 38 | |||
Other receivables | 3,572 | 3,459 | |||
Inventories | 1,604 | 1,694 | |||
Other current assets | 238 | 323 | |||
Total current assets | 6,586 | 7,269 | |||
Property, plant and equipment, net | 1,314 | 1,223 | |||
Trademarks and other intangible assets, net of accumulated amortization | 29,432 | 29,467 | |||
Goodwill | 15,976 | 15,976 | |||
Long-term intercompany notes receivable | 148 | 169 | |||
Investment in subsidiaries | 333 | 662 | |||
Other assets and deferred charges | 52 | 212 | |||
Total assets | 53,841 | 54,978 | |||
Liabilities and shareholders’ equity | |||||
Accounts payable | 213 | 173 | |||
Tobacco settlement accruals | 2,498 | 2,816 | |||
Due to related party | 7 | 9 | |||
Deferred revenue, related party | 66 | 33 | |||
Current maturities of long-term debt | 53 | 86 | |||
Other current liabilities | 871 | 1,039 | |||
Total current liabilities | 3,708 | 4,156 | |||
Long-term intercompany notes payable | 900 | 1,260 | |||
Long-term debt (less current maturities) | 260 | 327 | |||
Long-term deferred income taxes, net | 9,700 | 9,410 | |||
Long-term retirement benefits (less current portion) | 1,767 | 2,153 | |||
Long-term deferred revenue, related party | 39 | ||||
Other noncurrent liabilities | 176 | 195 | |||
Shareholders’ equity | 37,291 | 37,477 | |||
Total liabilities and shareholders' equity | 53,841 | 54,978 | |||
Guarantors | RJR Tobacco | |||||
Assets | |||||
Cash and cash equivalents | 1 | 19 | 3 | 3 | |
Other receivables | 38 | 17 | |||
Total current assets | 39 | 36 | |||
Goodwill | 9,853 | 9,853 | |||
Long-term intercompany notes receivable | 73 | 90 | |||
Investment in subsidiaries | 23,938 | 24,276 | |||
Other assets and deferred charges | 11 | 14 | |||
Total assets | 33,914 | 34,269 | |||
Liabilities and shareholders’ equity | |||||
Other current liabilities | 2 | 31 | |||
Total current liabilities | 2 | 31 | |||
Long-term retirement benefits (less current portion) | 28 | 30 | |||
Shareholders’ equity | 33,884 | 34,208 | |||
Total liabilities and shareholders' equity | 33,914 | 34,269 | |||
Non-Guarantors | |||||
Assets | |||||
Cash and cash equivalents | 328 | 448 | 395 | 360 | |
Accounts receivable | 4 | 6 | |||
Other receivables | 17 | 91 | |||
Inventories | 43 | 44 | |||
Other current assets | 129 | ||||
Total current assets | 392 | 718 | |||
Property, plant and equipment, net | 32 | 29 | |||
Trademarks and other intangible assets, net of accumulated amortization | 14 | ||||
Goodwill | 16 | 17 | |||
Other assets and deferred charges | 37 | 38 | |||
Total assets | 491 | 802 | |||
Liabilities and shareholders’ equity | |||||
Accounts payable | 7 | 4 | |||
Other current liabilities | 40 | 79 | |||
Total current liabilities | 47 | 83 | |||
Long-term intercompany notes payable | 490 | 323 | |||
Long-term retirement benefits (less current portion) | 43 | 55 | |||
Shareholders’ equity | (89) | 341 | |||
Total liabilities and shareholders' equity | 491 | 802 | |||
Non-Guarantors | RJR Tobacco | |||||
Assets | |||||
Cash and cash equivalents | 654 | 1,164 | 534 | 539 | |
Accounts receivable | 39 | 20 | |||
Other receivables | 4,828 | 4,890 | |||
Inventories | 835 | 797 | |||
Other current assets | 43 | 212 | |||
Total current assets | 6,399 | 7,083 | |||
Property, plant and equipment, net | 491 | 460 | |||
Trademarks and other intangible assets, net of accumulated amortization | 29,129 | 29,121 | |||
Goodwill | 2,686 | 2,687 | |||
Long-term intercompany notes receivable | 148 | 169 | |||
Other assets and deferred charges | 13 | 9 | |||
Total assets | 38,866 | 39,529 | |||
Liabilities and shareholders’ equity | |||||
Accounts payable | 30 | 31 | |||
Tobacco settlement accruals | 172 | 143 | |||
Other current liabilities | 268 | 284 | |||
Total current liabilities | 470 | 458 | |||
Long-term intercompany notes payable | 1,463 | 1,673 | |||
Long-term deferred income taxes, net | 10,839 | 10,892 | |||
Long-term retirement benefits (less current portion) | 131 | 142 | |||
Other noncurrent liabilities | 23 | 13 | |||
Shareholders’ equity | 25,940 | 26,351 | |||
Total liabilities and shareholders' equity | 38,866 | 39,529 | |||
RJR | RJR Tobacco | |||||
Assets | |||||
Cash and cash equivalents | 670 | 809 | $ 327 | $ 514 | |
Short-term investments | 149 | ||||
Accounts receivable | 27 | 48 | |||
Accounts receivable, related party | 113 | 38 | |||
Other receivables | 5 | 30 | |||
Inventories | 812 | 941 | |||
Other current assets | 195 | 236 | |||
Total current assets | 1,822 | 2,251 | |||
Property, plant and equipment, net | 855 | 792 | |||
Trademarks and other intangible assets, net of accumulated amortization | 317 | 346 | |||
Goodwill | 3,453 | 3,453 | |||
Investment in subsidiaries | 22,954 | 23,199 | |||
Other assets and deferred charges | 1,204 | 1,711 | |||
Total assets | 30,605 | 31,752 | |||
Liabilities and shareholders’ equity | |||||
Accounts payable | 190 | 146 | |||
Tobacco settlement accruals | 2,326 | 2,673 | |||
Due to related party | 7 | 9 | |||
Deferred revenue, related party | 66 | 33 | |||
Current maturities of long-term debt | 53 | 86 | |||
Other current liabilities | 1,923 | 2,189 | |||
Total current liabilities | 4,565 | 5,136 | |||
Long-term debt (less current maturities) | 260 | 327 | |||
Long-term deferred income taxes, net | 1 | ||||
Long-term retirement benefits (less current portion) | 1,651 | 2,036 | |||
Long-term deferred revenue, related party | 39 | ||||
Other noncurrent liabilities | 153 | 182 | |||
Shareholders’ equity | 23,937 | 24,070 | |||
Total liabilities and shareholders' equity | 30,605 | 31,752 | |||
Eliminations | |||||
Assets | |||||
Other receivables | (3,642) | (3,585) | |||
Inventories | (2) | (4) | |||
Other current assets | 3 | (4) | |||
Total current assets | (3,641) | (3,593) | |||
Trademarks and other intangible assets, net of accumulated amortization | (2) | ||||
Long-term intercompany notes receivable | (1,538) | (1,752) | |||
Investment in subsidiaries | (37,198) | (37,813) | |||
Other assets and deferred charges | (96) | (209) | |||
Total assets | (42,475) | (43,367) | |||
Liabilities and shareholders’ equity | |||||
Other current liabilities | (3,642) | (3,591) | |||
Total current liabilities | (3,642) | (3,591) | |||
Long-term intercompany notes payable | (1,538) | (1,752) | |||
Long-term deferred income taxes, net | (93) | (206) | |||
Shareholders’ equity | (37,202) | (37,818) | |||
Total liabilities and shareholders' equity | (42,475) | (43,367) | |||
Eliminations | RJR Tobacco | |||||
Assets | |||||
Other receivables | (4,924) | (4,972) | |||
Inventories | (2) | (4) | |||
Other current assets | 3 | ||||
Total current assets | (4,923) | (4,976) | |||
Trademarks and other intangible assets, net of accumulated amortization | (2) | ||||
Long-term intercompany notes receivable | (1,611) | (1,842) | |||
Investment in subsidiaries | (83,757) | (84,626) | |||
Other assets and deferred charges | (1,235) | (1,693) | |||
Total assets | (91,528) | (93,137) | |||
Liabilities and shareholders’ equity | |||||
Other current liabilities | (4,924) | (4,977) | |||
Total current liabilities | (4,924) | (4,977) | |||
Long-term intercompany notes payable | (1,611) | (1,842) | |||
Long-term deferred income taxes, net | (1,232) | (1,689) | |||
Shareholders’ equity | (83,761) | (84,629) | |||
Total liabilities and shareholders' equity | $ (91,528) | $ (93,137) |
RJR Tobacco Guaranteed Unsecure
RJR Tobacco Guaranteed Unsecured Notes - Condensed Consolidating Financial Statements - Additional Information (Detail) $ in Millions | Dec. 31, 2016USD ($) |
RJR | |
Condensed Financial Statements Captions [Line Items] | |
Aggregate principal amount of unsecured notes | $ 284 |
Quarterly Results of Operati154
Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||
Income Statement [Abstract] | |||||||||||||||||||
Net sales | $ 3,186 | $ 3,205 | $ 3,195 | $ 2,917 | $ 3,054 | $ 3,161 | $ 2,403 | $ 2,057 | $ 12,503 | $ 10,675 | $ 8,471 | ||||||||
Gross profit | 1,974 | [1] | 2,016 | [1] | 1,920 | [1] | 1,752 | [1] | 1,704 | [2] | 1,757 | [2] | 1,319 | [2] | 1,207 | [2] | |||
Income from continuing operations | 6,073 | 3,253 | 1,445 | ||||||||||||||||
Income from discontinued operations, net of tax | 25 | ||||||||||||||||||
Net income | $ 851 | [1],[3] | $ 861 | [1],[3] | $ 796 | [1],[3] | $ 3,565 | [1],[3] | $ 279 | [2],[4] | $ 657 | [2],[4] | $ 1,928 | [2],[4] | $ 389 | [2],[4] | $ 6,073 | $ 3,253 | $ 1,470 |
Basic: | |||||||||||||||||||
Income from continuing operations | $ 4.26 | $ 2.57 | $ 1.36 | ||||||||||||||||
Income from discontinued operations | 0.02 | ||||||||||||||||||
Net income | $ 0.60 | [5] | $ 0.60 | [5] | $ 0.56 | [5] | $ 2.50 | [5] | $ 0.20 | [5] | $ 0.46 | [5] | $ 1.70 | [5] | $ 0.36 | [5] | 4.26 | 2.57 | 1.38 |
Diluted: | |||||||||||||||||||
Income from continuing operations | 4.25 | 2.57 | 1.35 | ||||||||||||||||
Income from discontinued operations | 0.02 | ||||||||||||||||||
Net income | $ 0.60 | [5] | $ 0.60 | [5] | $ 0.56 | [5] | $ 2.49 | [5] | $ 0.19 | [5] | $ 0.46 | [5] | $ 1.69 | [5] | $ 0.36 | [5] | $ 4.25 | $ 2.57 | $ 1.37 |
[1] | Includes NPM Adjustment credits of $91 million in the first quarter of 2016, $98 million in the second quarter of 2016, $104 million in the third quarter of 2016 and $97 million in the fourth quarter of 2016, see “— Cost of Products Sold” in note 1. The fourth quarter of 2016 includes an MTM adjustment of $21 million. | ||||||||||||||||||
[2] | Includes NPM Adjustment credits of $66 million in the first quarter of 2015, $69 million in the second quarter of 2015, $76 million in the third quarter of 2015 and $86 million in the fourth quarter of 2015, see “— Cost of Products Sold” in note 1. The fourth quarter of 2015 includes an MTM adjustment expense of $120 million. | ||||||||||||||||||
[3] | First quarter of 2016 reflects the impact of the sale of the international rights to the NATURAL AMERICAN SPIRIT brand. Fourth quarter of 2016 includes an additional MTM adjustment expense of $24 million for a total of $45 million. | ||||||||||||||||||
[4] | Second quarter of 2015 reflects the impact of the Lorillard Merger and Divestiture. Fourth quarter of 2015 includes an additional MTM adjustment expense of $126 million for a total of $246 million. | ||||||||||||||||||
[5] | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the quarters may not equal the total for the year. |
Quarterly Results of Operati155
Quarterly Results of Operations (Parenthetical) (Detail) - USD ($) $ in Millions | Oct. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
NPM Adjustment credits | $ 290 | $ 170 | $ 97 | $ 104 | $ 98 | $ 91 | $ 86 | $ 76 | $ 69 | $ 66 | ||
MTM adjustment | $ 45 | $ 246 | ||||||||||
Cost of products sold | ||||||||||||
MTM adjustment | 21 | 120 | ||||||||||
Selling, General and Administrative Expenses | ||||||||||||
MTM adjustment | $ 24 | $ 126 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event - BAT and Subsidiaries $ / shares in Units, $ in Millions | Jan. 16, 2017USD ($)$ / shares |
Subsequent Event [Line Items] | |
Shares conversion ratio in acquisition | 0.5260 |
Cash consideration per share | $ / shares | $ 29.44 |
Non-terminating party, termination fee | $ 1,000 |
Antitrust, termination fee | $ 500 |