British American Tobacco p.l.c. (BTI) 20-F 15 Mar 18 2017 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2017shares
Document And Entity Information [Abstract]
Document Type	20-F
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Trading Symbol	BTI
Entity Registrant Name	British American Tobacco p.l.c.
Entity Central Index Key	1,303,523
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	2,456,278,414

Group Income Statement

Group Income Statement - GBP (£) £ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Revenue	[1]	£ 20,292	£ 14,751	£ 13,104
Raw materials and consumables used		(4,520)	(3,777)	(3,217)
Changes in inventories of finished goods and work in progress		(513)	44	184
Employee benefit costs		(2,679)	(2,274)	(2,039)
Depreciation, amortisation and impairment costs		(902)	(607)	(428)
Other operating income		144	176	225
Other operating expenses		(5,346)	(3,658)	(3,272)
Profit from operations		6,476	4,655	4,557
Net finance (costs)/income		(1,094)	(637)	62
Share of post-tax results of associates and joint ventures		24,209	2,227	1,236
Profit before taxation		29,591	6,245	5,855
Taxation on ordinary activities		8,113	(1,406)	(1,333)
Profit for the year		37,704	4,839	4,522
Attributable to:
Owners of the parent		37,533	4,648	4,290
Non-controlling interests		£ 171	£ 191	£ 232
Earnings per share
Basic		£ 1,836.3	£ 250.2	£ 230.9
Diluted		£ 1,830	£ 249.2	£ 230.3
[1]	Revenue is net of duty, excise and other taxes of £37,780 million, £32,136 million and £27,896 million for the years ended 31 December 2017, 2016 and 2015, respectively.

Group Income Statement (Parenth

Group Income Statement (Parenthetical) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Duty excise and other taxes levied on tobacco and tobacco related products	£ 37,780	£ 32,136	£ 27,896

Group Statement of Comprehensiv

Group Statement of Comprehensive Income - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Profit for the year	£ 37,704	£ 4,839	£ 4,522
Other comprehensive (expense)/income
Items that may be reclassified subsequently to profit or loss:	(3,812)	1,760	(849)
Differences on exchange
Differences on exchange	(4,010)	2,695	(670)
Cash flow hedges
– net fair value (losses)/gains	(264)	29	(99)
– reclassified and reported in profit for the year	109	38	15
– reclassified and reported in net assets	(16)	(12)	(45)
Available-for-sale investments
– reclassified and reported in profit for the year			(10)
Net investment hedges
– net fair value gains/(losses)	425	(837)	(118)
– differences on exchange on borrowings	(68)	(124)	42
Tax on items that may be reclassified	34	(19)	21
Items that will not be reclassified subsequently to profit or loss:	681	(173)	263
Retirement benefit schemes
Tax on items that will not be reclassified	(171)	36	(23)
Total other comprehensive (expense)/income for the year, net of tax	(3,131)	1,587	(586)
Total comprehensive income for the year, net of tax	34,573	6,426	3,936
Attributable to:
Owners of the parent	34,406	6,180	3,757
Non-controlling interests	167	246	179
Total comprehensive income for the year, net of tax	34,573	6,426	3,936
Subsidiaries
Differences on exchange
Differences on exchange	(3,087)	1,270	(1,006)
Available-for-sale investments
– net fair value (losses)/gains in respect of subsidiaries	(27)		14
Retirement benefit schemes
– net actuarial gains/(losses) in respect of subsidiaries	833	(228)	283
– surplus recognition and minimum funding obligations in respect of subsidiaries	(6)	(1)
Associates
Differences on exchange
Differences on exchange	(923)	1,425	336
Differences on exchange	(923)	1,425	336
Available-for-sale investments
– net fair value gains/(losses) in respect of associates net of tax	5	(10)	1
Retirement benefit schemes
– actuarial gains in respect of associates net of tax	£ 25	£ 20	£ 3

Group Statement of Changes in E

Group Statement of Changes in Equity - GBP (£) £ in Millions	Total	Share Capital	Share Premium, Capital Redemption and Merger Reserves	Other Reserves	Retained Earnings	Total Attributable to Owners of Parent	Non- Controlling Interests
Beginning balance at Dec. 31, 2014	£ 5,814	£ 507	£ 3,923	£ (498)	£ 1,578	£ 5,510	£ 304
Total comprehensive income for the year, net of tax	3,936			(796)	4,553	3,757	179
Profit for the year	4,522				4,290	4,290	232
Other comprehensive (expense)/income for the year	(586)			(796)	263	(533)	(53)
– value of employee services	50				50	50
– proceeds from shares issued	4		4			4
– ordinary shares	(2,770)				(2,770)	(2,770)
– to non-controlling interests	(238)						(238)
– held in employee share ownership trusts	(46)				(46)	(46)
– value of employee services	50				50	50
– proceeds from shares issued	4		4			4
– ordinary shares	(2,770)				(2,770)	(2,770)
– to non-controlling interests	(238)						(238)
– held in employee share ownership trusts	(46)				(46)	(46)
Other movements	31				31	31
Ending balance at Dec. 31, 2015	5,032	507	3,927	(1,294)	1,754	4,894	138
Non-controlling interests - acquisitions	(1,749)				(1,642)	(1,642)	(107)
Total comprehensive income for the year, net of tax	6,426			1,707	4,473	6,180	246
Profit for the year	4,839				4,648	4,648	191
Other comprehensive (expense)/income for the year	1,587			1,707	(175)	1,532	55
– value of employee services	71				71	71
– proceeds from shares issued	4		4			4
– ordinary shares	(2,910)				(2,910)	(2,910)
– to non-controlling interests	(156)						(156)
– held in employee share ownership trusts	(64)				(64)	(64)
– value of employee services	71				71	71
– proceeds from shares issued	4		4			4
– ordinary shares	(2,910)				(2,910)	(2,910)
– to non-controlling interests	(156)						(156)
– held in employee share ownership trusts	(64)				(64)	(64)
Other movements	3				3	3
Ending balance at Dec. 31, 2016	8,406	507	3,931	413	3,331	8,182	224
Non-controlling interests - acquisitions					4	4	(4)
Total comprehensive income for the year, net of tax	34,573			(3,808)	38,214	34,406	167
Profit for the year	37,704				37,533	37,533	171
Other comprehensive (expense)/income for the year	(3,131)			(3,808)	681	(3,127)	(4)
– value of employee services	105				105	105
– proceeds from shares issued	5		5			5
– ordinary shares	(4,465)				(4,465)	(4,465)
– to non-controlling interests	(169)						(169)
– held in employee share ownership trusts	(205)				(205)	(205)
– value of employee services	105				105	105
– proceeds from shares issued	5		5			5
– ordinary shares	(4,465)				(4,465)	(4,465)
– to non-controlling interests	(169)						(169)
– held in employee share ownership trusts	(205)				(205)	(205)
Shares issued – RAI acquisition	22,773	107	22,666			22,773
Other movements	3				3	3
Ending balance at Dec. 31, 2017	£ 61,026	£ 614	£ 26,602	£ (3,395)	£ 36,983	£ 60,804	£ 222

Group Balance Sheet

Group Balance Sheet - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Intangible assets	£ 117,785	£ 12,117	£ 10,436
Property, plant and equipment	4,882	3,661	3,021
Investments in associates and joint ventures	1,577	9,507
Retirement benefit assets	1,123	455
Deferred tax assets	317	436
Trade and other receivables	756	599
Available-for-sale investments	42	43
Derivative financial instruments	590	596
Total non-current assets	127,072	27,414
Inventories	5,864	5,793
Income tax receivable	460	69
Trade and other receivables	4,053	3,884
Available-for-sale investments	65	15
Derivative financial instruments	228	375
Cash and cash equivalents	3,291	2,204
Total current assets other than non-current assets classified as held for sale	13,961	12,340
Assets classified as held-for-sale	5	19
Total current assets	13,966	12,359
Total assets	141,038	39,773
Equity - Capital and reserves
Share capital	614	507
Share premium, capital redemption and merger reserves	26,602	3,931
Other reserves	(3,395)	413
Retained earnings	36,983	3,331
Owners of the parent	60,804	8,182
Non-controlling interests	222	224
Total equity	61,026	8,406	£ 5,032	£ 5,814
Liabilities
Borrowings	44,027	16,488
Retirement benefit liabilities	1,821	826
Deferred tax liabilities	17,129	652
Other provisions for liabilities	354	386
Trade and other payables	1,058	1,040
Derivative financial instruments	79	119
Total non-current liabilities	64,468	19,511
Borrowings	5,423	3,007
Income tax payable	720	558
Other provisions for liabilities	399	407
Trade and other payables	8,847	7,335
Derivative financial instruments	155	549
Total current liabilities	15,544	11,856
Total equity and liabilities	£ 141,038	£ 39,773

Group Cash Flow Statement

Group Cash Flow Statement - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement Of Cash Flows [Abstract]
Profit from operations	£ 6,476	£ 4,655	£ 4,557
Adjustments for
– depreciation, amortisation and impairment costs	902	607	428
– decrease/(increase) in inventories	1,409	(638)	(520)
– (increase)/decrease in trade and other receivables	(732)	87	(508)
– increase in amounts recoverable in respect of Quebec class action	(130)	(242)	(55)
– decrease in provision for Master Settlement Agreement	(934)
– FII GLO receipts			963
– decrease in net retirement benefit liabilities	(131)	(145)	(191)
– (decrease)/increase in provisions for liabilities	(78)	141	48
– other non-cash items	86		(54)
– (decrease)/increase in trade and other payables	(749)	428	732
Cash generated from operations	6,119	4,893	5,400
Dividends received from associates	903	962	593
Tax paid	(1,675)	(1,245)	(1,273)
Net cash generated from operating activities	5,347	4,610	4,720
Cash flows from investing activities
Interest received	83	62	64
Purchases of property, plant and equipment	(791)	(586)	(483)
Proceeds on disposal of property, plant and equipment	95	93	108
Purchases of intangibles	(187)	(88)	(118)
Purchases of investments	(170)	(109)	(99)
Proceeds on disposals of investments	160	22	45
Acquisition of Reynolds American Inc. net of cash acquired	(17,657)
Investment in associates and acquisitions of other subsidiaries net of cash acquired	(77)	(57)	(3,508)
Proceeds from associates' share buy-backs		23
Net cash used in investing activities	(18,544)	(640)	(3,991)
Cash flows from financing activities
Interest paid	(1,114)	(641)	(596)
Proceeds from increases in and new borrowings	40,937	3,476	6,931
(Outflows)/inflows relating to derivative financial instruments	(406)	(26)	201
Purchases of own shares held in employee share ownership trusts	(205)	(64)	(46)
Reductions in and repayments of borrowings	(20,827)	(3,840)	(2,028)
Dividends paid to owners of the parent	(3,465)	(2,910)	(2,770)
Purchases of non-controlling interests		(70)	(1,677)
Dividends paid to non-controlling interests	(167)	(147)	(235)
Other	6	(7)	1
Net cash from/(used in) financing activities	14,759	(4,229)	(219)
Net cash flows generated from/(used in) operating, investing and financing activities	1,562	(259)	510
Differences on exchange	(391)	180	(272)
Increase/(decrease) in net cash and cash equivalents in the year	1,171	(79)	238
Net cash and cash equivalents at 1 January	1,651	1,730	1,492
Net cash and cash equivalents at 31 December	£ 2,822	£ 1,651	£ 1,730

Accounting policies

Accounting policies	12 Months Ended
	Dec. 31, 2017
Disclosure Of Accounting Policies [Abstract]
Accounting policies	Notes on Accounts 1 Accounting policies Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), IFRS as adopted by the European Union (EU), and in accordance with the provisions of the UK Companies Act 2006 applicable to companies reporting under IFRS. IFRS as adopted by the EU differs in certain respects from IFRS as issued by the IASB. The differences have no impact on the Group’s consolidated financial statements for the periods presented. The consolidated financial statements have been prepared on a going concern basis under the historical cost convention except as described in the accounting policy below on financial instruments. The Group has adopted the Amendment to IAS 7 Statement of Cash Flows with effect from 1 January 2017. This amendment requires reporting entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, by disclosing changes arising from cash flows as well as non-cash changes. These additional disclosures have been added to note 20. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. The key estimates and assumptions are set out in the accounting policies below, together with the related notes to the accounts. The critical accounting estimates include: - the review of asset values, especially goodwill and impairment testing. The key assumptions used in respect of goodwill and impairment testing are the determination of cash-generating units, the budgeted cash flows of these units, the long-term growth rate for cash flow projections and the rate used to discount the cash flow projections. These are described in note 9; - the estimation of and accounting for retirement benefit costs. The determination of the carrying value of assets and liabilities, as well as the charge for the year, and amounts recognised in other comprehensive income, involves judgements made in conjunction with independent actuaries. These involve estimates about uncertain future events based on the environment in different countries, including life expectancy of scheme members, salary and pension increases, inflation, as well as discount rates and asset values at the year end. The assumptions used by the Group and sensitivity analysis are described in note 12; - the estimation of amounts to be recognised in respect of taxation and legal matters, and the estimation of other provisions for liabilities and charges are subject to uncertain future events, may extend over several years and so the amount and/or timing may differ from current assumptions. The accounting policy for taxation is explained below. The recognised deferred tax assets and liabilities, together with a note of unrecognised amounts, are shown in note 13, and a contingent tax asset is explained in note 6(b). Other provisions for liabilities and charges are as set out in note 21. The accounting policy on contingent liabilities, which are not provided for, is set out below and the contingent liabilities of the Group are explained in note 28. The application of these accounting policies to the payments made and credits recognised under the Master Settlement Agreement by Reynolds American (“RAI”) is described in note 3(d); and - the estimation of the fair values of acquired net assets arising in a business combination and the allocation of the purchase consideration between the underlying net assets acquired, including intangible assets other than goodwill, on the basis of their fair values. These estimates are prepared in conjunction with the advice of independent valuation experts where appropriate. The relevant transactions for 2017, 2016 and 2015 are described in note 24. The critical accounting judgements include: - the definition of adjusting items, which are separately disclosed as memorandum information, is explained below and the impact of these on the calculation of adjusted earnings is described in note 7; - the determination as to whether control (subsidiaries), joint control (joint arrangements), or significant influence (associates) exists in relation to the investments held by the Group. This is assessed after taking into account the Group’s ability to appoint directors to the entity’s board, its relative shareholding compared with other shareholders, any significant contracts or arrangements with the entity or its other shareholders and other relevant facts and circumstances; and - the review of applicable exchange rates for transactions with and translation of entities in territories where there are restrictions on the free access to foreign currency, or multiple exchange rates. Such estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable in the circumstances and constitute management’s best judgement at the date of the financial statements. In the future, actual experience may deviate from these estimates and assumptions, which could affect the financial statements as the original estimates and assumptions are modified, as appropriate, in the year in which the circumstances change. These consolidated financial statements were authorised for issue by the Board of Directors on 21 February 2018. Basis of consolidation The consolidated financial information includes the financial statements of British American Tobacco p.l.c. and its subsidiary undertakings, collectively “the Group”, together with the Group’s share of the results of its associates and joint arrangements. A subsidiary is an entity controlled by the Group. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Associates comprise investments in undertakings, which are not subsidiary undertakings or joint arrangements, where the Group’s interest in the equity capital is long term and over whose operating and financial policies the Group exercises a significant influence. They are accounted for using the equity method. Joint arrangements comprise contractual arrangements where two or more parties have joint control and where decisions regarding the relevant activities of the entity require unanimous consent. Joint operations are jointly-controlled arrangements where the parties to the arrangement have rights to the underlying assets and obligations for the underlying liabilities relating to the arrangement. The Group accounts for its share of the assets, liabilities, income and expenses of any such arrangement. Joint ventures comprise arrangements where the parties to the arrangement have rights to the net assets of the arrangement. They are accounted for using the equity method. 1 Accounting policies continued Foreign currencies The functional currency of the Parent Company is sterling and this is also the presentation currency of the Group. The income and cash flow statements of Group undertakings expressed in currencies other than sterling are translated to sterling using exchange rates applicable to the dates of the underlying transactions. Average rates of exchange in each year are used where the average rate approximates the relevant exchange rate at the date of the underlying transactions. Assets and liabilities of Group undertakings are translated at the applicable rates of exchange at the end of each year. In territories where there are restrictions on the free access to foreign currency or multiple exchange rates, the applicable rates of exchange are regularly reviewed. For hyperinflationary countries, the financial statements in local currency are adjusted to reflect the impact of local inflation prior to translation into sterling. The differences between retained profits translated at average and closing rates of exchange are taken to reserves, as are differences arising on the retranslation to sterling (using closing rates of exchange) of overseas net assets at the beginning of the year, and are presented as a separate component of equity. They are recognised in the income statement when the gain or loss on disposal of a Group undertaking is recognised. Foreign currency transactions are initially recognised in the functional currency of each entity in the Group using the exchange rate ruling at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of foreign currency assets and liabilities at year end rates of exchange are recognised in the income statement, except when deferred in equity as qualifying cash flow hedges, on intercompany net investment loans and qualifying net investment hedges. Foreign exchange gains or losses recognised in the income statement are included in profit from operations or net finance costs depending on the underlying transactions that gave rise to these exchange differences. Revenue Revenue principally comprises sales of cigarettes and other tobacco products to external customers. Revenue excludes duty, excise and other taxes and is after deducting rebates, returns and other similar discounts. Revenue is recognised when the significant risks and rewards of ownership are transferred to a third party. Retirement benefit costs The Group operates both defined benefit and defined contribution schemes including post-retirement healthcare schemes. The net deficit or surplus for each defined benefit pension scheme is calculated in accordance with IAS 19 based on the present value of the defined benefit obligation at the balance sheet date less the fair value of the scheme assets adjusted, where appropriate, for any surplus restrictions or the effect of minimum funding requirements. For defined benefit schemes, the actuarial cost charged to profit from operations consists of current service cost, net interest on the net defined benefit liability or asset, past service cost and the impact of any settlements. Some benefits are provided through defined contribution schemes and payments to these are charged as an expense as they fall due. Share-based payments The Group has equity-settled and cash-settled share-based compensation plans. Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed over the vesting period, based on the Group’s estimate of awards that will eventually vest. For plans where vesting conditions are based on total shareholder returns, the fair value at date of grant reflects these conditions, whereas earnings per share vesting conditions are reflected in the calculation of awards that will eventually vest over the vesting period. For cash-settled share-based payments, a liability equal to the portion of the services received is recognised at its current fair value determined at each balance sheet date. Fair value is measured by the use of the Black-Scholes option pricing model, except where vesting is dependent on market conditions when the Monte-Carlo option pricing model is used. The expected life used in the models has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. Research and development Research expenditure is charged to income in the year in which it is incurred. Development expenditure is charged to income in the year it is incurred, unless it meets the recognition criteria of IAS 38. Taxation Taxation is that chargeable on the profits for the period, together with deferred taxation. The current income tax charge is calculated on the basis of tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group’s subsidiaries, associates and joint arrangements operate and generate taxable income. Deferred taxation is provided in full using the liability method for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax is determined using the tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or deferred tax liability is settled. Tax is recognised in the income statement except to the extent that it relates to items recognised in other comprehensive income or directly in equity, in which case it is recognised in the statement of other comprehensive income or the statement of changes in equity. The Group has exposures in respect of the payment or recovery of a number of taxes. Liabilities or assets for these payments or recoveries are recognised at such time as an outcome becomes probable and when the amount can reasonably be estimated. Goodwill Goodwill arising on acquisitions is capitalised and any impairment of goodwill is recognised immediately in the income statement and is not subsequently reversed. Goodwill in respect of subsidiaries is included in intangible assets. In respect of associates and joint ventures, goodwill is included in the carrying value of the investment in the associated company or joint venture. On disposal of a subsidiary, associate or joint venture, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. 1 Accounting policies continued Intangible assets other than goodwill The intangible assets shown on the Group balance sheet consist mainly of trademarks and similar intangibles, including certain intellectual property, acquired by the Group’s subsidiary undertakings and computer software. Acquired trademarks and similar assets are carried at cost less accumulated amortisation and impairment. Trademarks with indefinite lives are not amortised but are reviewed annually for impairment. Other trademarks and similar assets are amortised on a straight-line basis over their remaining useful lives, consistent with the pattern of economic benefits expected to be received, which do not exceed 20 years. Any impairments of trademarks are recognised in the income statement but increases in trademark values are not recognised. Computer software is carried at cost less accumulated amortisation and impairment, and, with the exception of global software solutions, is amortised on a straight-line basis over periods ranging from three years to five years. Global software solutions are software assets designed to be implemented on a global basis and used as a standard solution by all of the operating companies in the Group. These assets are amortised on a straight-line basis over periods not exceeding ten years. Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation is calculated on a straight-line basis to write off the assets over their useful economic life. No depreciation is provided on freehold land or assets classified as held-for-sale. Freehold and leasehold property are depreciated at rates between 2.5% and 4% per annum, and plant and equipment at rates between 3% and 25% per annum. Capitalised interest Borrowing costs which are directly attributable to the acquisition, construction or production of intangible assets or property, plant and equipment that takes a substantial period of time to get ready for its intended use or sale, are capitalised as part of the cost of the asset. Leased assets Assets where the Group has substantially all the risks and rewards of ownership of the leased asset are classified as finance leases and are included as part of property, plant and equipment. Finance lease assets are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, then depreciated over the shorter of the lease term and their estimated useful lives. Leasing payments consist of capital and finance charge elements and the finance element is charged to the income statement. Rental payments under operating leases are charged to the income statement on a straight-line basis over the lease term. Impairment of non-financial assets Assets are reviewed for impairment whenever events indicate that the carrying amount of a cash-generating unit may not be recoverable. In addition, assets that have indefinite useful lives are tested annually for impairment. An impairment loss is recognised to the extent that the carrying value exceeds the higher of the asset’s fair value less costs to sell and its value in use. A cash-generating unit is the smallest identifiable group of assets that generates cash flows which are largely independent of the cash flows from other assets or groups of assets. At the acquisition date, any goodwill acquired is allocated to the relevant cash-generating unit or group of cash-generating units expected to benefit from the acquisition for the purpose of impairment testing of goodwill. Impairment of financial assets Financial assets are reviewed at each balance sheet date, or whenever events indicate that the carrying amount may not be recoverable. In the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the investment below its cost is considered as an indicator that the investment is impaired. Inventories Inventories are stated at the lower of cost and net realisable value. Cost is based on the weighted average cost incurred in acquiring inventories and bringing them to their existing location and condition, which will include raw materials, direct labour and overheads, where appropriate. Net realisable value is the estimated selling price less costs to completion and sale. Tobacco inventories which have an operating cycle that exceeds 12 months are classified as current assets, consistent with recognised industry practice. Financial instruments Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the relevant instrument and derecognised when it ceases to be a party to such provisions. Such assets and liabilities are classified as current if they are expected to be realised or settled within 12 months after the balance sheet date. If not, they are classified as non-current. Financial assets and financial liabilities are initially recognised at fair value, plus directly attributable transaction costs where applicable, with subsequent measurement as set out below. Non-derivative financial assets are classified on initial recognition as available-for-sale investments, loans and receivables or cash and cash equivalents as follows: Available-for-sale investments: Available-for-sale investments are those non-derivative financial assets that cannot be classified as loans and receivables or cash and cash equivalents. Loans and receivables: These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Cash and cash equivalents: Cash and cash equivalents include cash in hand and deposits held on call, together with other short-term highly liquid investments including investments in certain money market funds. Cash equivalents normally comprise instruments with maturities of three months or less at date of acquisition. In the cash flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in the liabilities section on the balance sheet. Apart from available-for-sale investments, non-derivative financial assets are stated at amortised cost using the effective interest method, subject to reduction for allowances for estimated irrecoverable amounts. These estimates for irrecoverable amounts are recognised when there is objective evidence that the full amount receivable will not be collected according to the original terms of the asset. Available-for-sale investments are stated at fair value, with changes in fair value being recognised directly in other comprehensive income. When such investments are derecognised (e.g. through disposal) or become impaired, the accumulated gains and losses, previously recognised in other comprehensive income, are reclassified to the income statement within ‘finance income’. Dividend and interest income on available-for-sale investments are included within ‘finance income’ when the Group’s right to receive payments is established. 1 Accounting policies continued Fair values for quoted investments are based on observable market prices. If there is no active market for a financial asset, the fair value is established by using valuation techniques principally involving discounted cash flow analysis. Non-derivative financial liabilities are stated at amortised cost using the effective interest method. For borrowings, their carrying value includes accrued interest payable, as well as unamortised issue costs. Derivative financial assets and liabilities are initially recognised, and subsequently measured, at fair value, which includes accrued interest receivable and payable where relevant. Changes in their fair values are recognised as follows: - for derivatives that are designated as cash flow hedges, the changes in their fair values are recognised directly in other comprehensive income, to the extent that they are effective, with the ineffective portion being recognised in the income statement. Where the hedged item results in a non-financial asset, the accumulated gains and losses, previously recognised in other comprehensive income, are included in the initial carrying value of the asset (basis adjustment) and recognised in the income statement in the same periods as the hedged item. Where the underlying transaction does not result in such an asset, the accumulated gains and losses are reclassified to the income statement in the same periods as the hedged item; - for derivatives that are designated as fair value hedges, the carrying value of the hedged item is adjusted for the fair value changes attributable to the risk being hedged, with the corresponding entry being made in the income statement. The changes in fair value of these derivatives are also recognised in the income statement; - for derivatives that are designated as hedges of net investments in foreign operations, the changes in their fair values are recognised directly in other comprehensive income, to the extent that they are effective, with the ineffective portion being recognised in the income statement. Where non-derivatives such as foreign currency borrowings are designated as net investment hedges, the relevant exchange differences are similarly recognised. The accumulated gains and losses are reclassified to the income statement when the foreign operation is disposed of; and - for derivatives that do not qualify for hedge accounting or are not designated as hedges, the changes in their fair values are recognised in the income statement in the period in which they arise. In order to qualify for hedge accounting, the Group is required to document prospectively the relationship between the item being hedged and the hedging instrument. The Group is also required to demonstrate an assessment of the relationship between the hedged item and the hedging instrument, which shows that the hedge will be highly effective on an ongoing basis. This effectiveness testing is reperformed periodically to ensure that the hedge has remained, and is expected to remain, highly effective. Hedge accounting is discontinued when a hedging instrument is derecognised (e.g. through expiry or disposal), or no longer qualifies for hedge accounting. Where the hedged item is a highly probable forecast transaction, the related gains and losses remain in equity until the transaction takes place, when they are reclassified to the income statement in the same manner as for cash flow hedges as described above. When a hedged future transaction is no longer expected to occur, any related gains and losses, previously recognised in other comprehensive income, are immediately reclassified to the income statement. Derivative fair value changes recognised in the income statement are either reflected in arriving at profit from operations (if the hedged item is similarly reflected) or in finance costs. Dividends Dividend ( ) ( ). , , . Segmental analysis The Group is organised and managed on the basis of its geographic regions. These are the reportable segments for the Group as they form the focus of the Group’s internal reporting systems and are the basis used by the chief operating decision maker, identified as the Management Board, for assessing performance and allocating resources. The Group is primarily a single product business providing cigarettes and other tobacco products. While the Group has clearly differentiated brands, global segmentation between a wide portfolio of brands is not part of the regular internally reported financial information. The results of Next Generation Products are not currently material to the Group. The prices agreed between Group companies for intra-group sales of materials, manufactured goods, charges for royalties, commissions, services and fees, are based on normal commercial practices which would apply between independent businesses. Royalty income, less related expenditure, is included in the region in which the licensor is based. Adjusting items Adjusting items are significant items of o The to of to - of , , , , o w ich of , from , dilu ed sha e, . 1 Accounting policies continued Provisions Provisions are recognised when either a legal or constructive obligation as a result of a past event exists at the balance sheet date, it is probable that an outflow of economic resources will be required to settle the obligation and a reasonable estimate can be made of the amount of the obligation. Contingent liabilities and contingent assets Subsidiaries and associate companies are defendants in tobacco-related and other litigation. Provision for this litigation (including legal costs) is made at such time as an unfavourable outcome became probable and the amount can be reasonably estimated. Contingent assets are possible assets whose existence will only be confirmed by future events not wholly within the control of the entity and are not recognised as assets until the realisation of income is virtually certain. Where a provision has not been recognised, the Group records its external legal fees and other external defence costs for tobacco-related and other litigation as these costs are incurred. Repurchase of share capital When share capital is repurchased the amount of consideration paid, including directly attributable costs, is recognised as a deduction from equity. Repurchased shares which are not cancelled, or shares purchased for the employee share ownership trusts, are classified as treasury shares and presented as a deduction from total equity. Future changes to accounting policies Certain changes to IFRS will be applicable to the Group financial statements in future years. Set out below are those which are considered to be most relevant to the Group. IFRS 9 Financial Instruments. This standard was finalised and published in July 2014 as the replacement for IAS 39. The Group shall apply IFRS 9 with effect from 1 January 2018 with no restatement of prior periods, as permitted by the Standard. The cumulative impact of adopting the Standard, including the effect of tax entries, will be recognised as a restatement of opening reserves in 2018, and is estimated to be £37 million, arising from: - A change in the classification and measurement of financial assets : The category of available-for-sale investments (where fair value changes are deferred in reserves until disposal of the investment) will be replaced with the category of financial assets at Fair Value through Profit and Loss, and the available-for-sale reserve will be reclassified into retained earnings. In addition, certain loans and receivables which do not meet the measurement tests for amortised cost under IFRS 9 will be reclassified as financial assets at Fair Value through Profit and Loss. - Impairment of financial assets under the expected loss model: The expected loss model under IFRS 9 accelerates recognition of potential impairment on loans and trade receivables when compared with the incurred loss model under IAS 39. A simplified “lifetime expected loss model” is available for balances arising as a result of revenue recognition, by applying a standard rate of provision on initial recognition of trade debtors based upon the Group’s historical experience of credit loss, and increasing this provision to take account of overdue receivables. Applying the requirements of IFRS 9 is expected to result in a decrease of trade and other debtors of £45 million as at 1 January 2018. The Group will adopt the hedge accounting requirements of IFRS 9 prospectively from 1 January 2018. IFRS 15 Revenue from Contracts with Customers This standard was first published in May 2014, and subsequently amended in April 2016, as the replacement to IAS 18, and the mandatory effective date of implementation is 1 January 2018. The Group shall apply IFRS 15 with effect from 1 January 2018 with full restatement of prior periods, as permitted by the Standard, to ensure comparability of the income statement across prior periods. This standard changes the way the Group accounts for rebates, discounts or other consideration payable to customers, and requires certain payments to indirect customers, currently shown as marketing expenses under IAS 18, to be shown as deductions from revenue. This would have reduced revenue by £664 million in 2017 (2016: £618 million), with a corresponding reduction in operating costs. In addition, due to the timing of the recognition of certain payments to indirect customers, revenue and operating profit for the year would have been reduced by a further £64 million had the Standard been applied to 2017’s results. IFRS 16 Leases This standard was finalised and published in January 2016 with a mandatory effective date of implementation of 1 January 2019. The distinction between operating leases and finance leases enshrined in current accounting requirements (IAS 17) is removed with the effect that virtually all leasing arrangements will be brought on to the balance sheet as financial obligations and ‘right-to-use’ assets. Further due diligence will be carried out before implementation, but the anticipated impact from restatement on the Group’s reported profit and net assets for 2017 and 2016 is not expected to be material, although assets and liabilities would have been grossed up by IFRIC 23 Uncertainty over Income Tax treatments. This interpretation was finalised and published in June 2017 with a mandatory effective date of implementation, subject to EU endorsement, of 1 January 2019. The Interpretation clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments. In particular, the . In addition, a number of other interpretations and revisions to existing standards have been issued which will be applicable to the Group’s financial statements in future years, but will not have a material effect on reported profit or equity or on the disclosures in the financial statements. BAT Annual Report and Form 20-F 2017 1

Segmental analyses

Segmental analyses	12 Months Ended
	Dec. 31, 2017
Reportable Segments [Abstract]
Segmental analyses	2 Segmental analyses As the chief operating decision maker, the Management Board reviews external revenues and adjusted profit from operations to evaluate segment performance and allocate resources to the overall business. The results of Next Generation Products as a separate segment are currently not material to the Group and therefore it is not considered a reportable segment that requires separate disclosure under the requirements of IFRS 8 Operating segments The five geographic regions are the reportable segments for the Group as they form the focus of the Group’s internal reporting systems and are the basis used by the Management Board for assessing performance and allocating resources. The Management Board reviews current and prior year segmental revenue, adjusted profit from operations of subsidiaries and joint operations, and adjusted post-tax results of associates and joint ventures at constant rates of exchange. The constant rate comparison provided for reporting segment information is based on a retranslation, at prior year exchange rates, of the current year results of the Group, including intercompany royalties payable in foreign currency to UK entities. However, the Group does not adjust for the normal transactional gains and losses in operations which are generated by movements in exchange rates. In respect of the United States region, all financial statements and financial information provided by or with respect to the US business or RAI (and/or the RAI Group) are prepared on the basis of U.S. GAAP and constitute the primary financial statements or financial information of the US business or RAI (and/or the RAI Group). Solely, for the purpose of consolidation within the results of BAT p.l.c. and the BAT Group, this financial information is then converted to International Financial Reporting Standards as issued by the IASB and adopted by the European Union (IFRS). To the extent any such financial information provided in these financial statements relate to the US business or RAI (and/or the RAI Group) it is provided as an explanation of the US business' or RAI’s (and/or the RAI Group’s) primary U.S. GAAP based financial statements and information. The following table shows 2017 revenue and adjusted revenue at current rates, and 2017 adjusted revenue translated using 2016 rates of exchange. The 2016 figures are stated at the 2016 rates of exchange and are, therefore, unadjusted from those published for 2016. 2017 2016 Adjusted Revenue Constant rates £m Translation exchange £m Adjusted Revenue Current rates £m Adjusting items Current rates £m Revenue Current rates £m Revenue £m United States 4,006 205 4,211 – 4,211 – Asia-Pacific 4,320 189 4,509 – 4,509 4,266 Americas 3,178 (53 ) 3,125 – 3,125 2,868 Western Europe 4,007 267 4,274 258 4,532 3,867 EEMEA 3,773 142 3,915 – 3,915 3,750 Revenue 19,284 750 20,034 258 20,292 14,751 Note: adjusting items in revenue are in respect of excise included in goods acquired from a third party under short term arrangements and then passed on to customers. This is deemed as adjusting due to the distorting nature to revenue and operating margin. The following table shows 2016 revenue at current rates, and 2016 revenue translated using 2015 rates of exchange. The 2015 figures are stated at the 2015 rates of exchange and are, therefore, unadjusted from those published for 2015. 2016 2015 Revenue Constant rates £m Translation exchange £m Revenue Current rates £m Revenue £m Asia-Pacific 3,770 496 4,266 3,773 Americas 3,014 (146 ) 2,868 2,720 Western Europe 3,471 396 3,867 3,203 EEMEA 3,753 (3 ) 3,750 3,408 Revenue 14,008 743 14,751 13,104 2 Segmental analyses continued The following table shows 2017 profit from operations and adjusted profit from operations at current rates, and as translated using 2016 rates of exchange. The 2016 figures are stated at the 2016 rates of exchange and are, therefore, unadjusted from those published for 2016. 2017 2016 Adjusted* segment result Constant rates £ m Translation exchange £ m Adjusted* segment result Current rates £ m Adjusting* items £ m Segment result Current rates £ m Adjusted* segment result £m Adjusting* items £m Segment result £m United States 1,980 101 2,081 (763 ) 1,318 – – – Asia-Pacific 1,674 81 1,755 (117 ) 1,638 1,630 (198 ) 1,432 Americas 1,288 (32 ) 1,256 (109 ) 1,147 1,172 (155 ) 1,017 Western Europe 1,458 104 1,562 (435 ) 1,127 1,389 (345 ) 1,044 EEMEA 1,265 74 1,339 (93 ) 1,246 1,289 (107 ) 1,182 7,665 328 7,993 (1,517 ) 6,476 5,480 (805 ) 4,675 Fox River** – – (20 ) (20 ) Profit from operations 7,665 328 7,993 (1,517 ) 6,476 5,480 (825 ) 4,655 Net finance costs (833 ) (56 ) (889 ) (205 ) (1,094 ) (529 ) (108 ) (637 ) United States*** 593 31 624 23,195 23,819 991 889 1,880 Asia-Pacific 352 30 382 29 411 331 11 342 Western Europe 4 – 4 (27 ) (23 ) 3 – 3 EEMEA 2 – 2 – 2 2 – 2 Share of post-tax results of associates and joint ventures 951 61 1,012 23,197 24,209 1,327 900 2,227 Profit/(loss) before taxation 7,783 333 8,116 21,475 29,591 6,278 (33 ) 6,245 Taxation (charge)/credit on ordinary activities (2,033 ) (74 ) (2,107 ) 10,220 8,113 (1,406 ) Profit for the year 37,704 4,839 * The adjustments to profit from operations, net finance (costs) / income and the Group's share of the post-tax results of associates and joint ventures are explained in notes 3(e) to 3(i), note 4(b), note 5(a) and note 6(d) to (e) respectively. ** The Fox River charge in 2016 (see note 3(g) and note 28) has not been allocated to any segment as it neither relates to current operations nor the tobacco business. It is presented separately from the segmental reporting which is used to evaluate segment performance and to allocate resources, and is reported to the chief operating decision maker on this basis. *** The prior year comparison has been restated to reclassify the share of post-tax results in RAI from the Americas region to the new United States region. 2 Segmental analyses continued The following table shows 2016 profit from operations and adjusted profit from operations at current rates, and as translated using 2015 rates of exchange. The 2015 figures are stated at the 2015 rates of exchange and are, therefore, unadjusted from those published for 2015. 2016 2015 Adjusted* segment result Constant rates £m Translation exchange £m Adjusted* segment result Current rates £m Adjusting* items £m Segment result Current rates £m Adjusted* segment result £m Adjusting* items £m Segment result £m Asia-Pacific 1,488 142 1,630 (198 ) 1,432 1,469 (108 ) 1,361 Americas 1,202 (30 ) 1,172 (155 ) 1,017 1,169 (87 ) 1,082 Western Europe 1,236 153 1,389 (345 ) 1,044 1,146 (156 ) 990 EEMEA 1,271 18 1,289 (107 ) 1,182 1,208 (81 ) 1,127 5,197 283 5,480 (805 ) 4,675 4,992 (432 ) 4,560 Fox River** (20 ) (20 ) – – Flintkote** – – (3 ) (3 ) Profit from operations 5,197 283 5,480 (825 ) 4,655 4,992 (435 ) 4,557 Net finance (costs) / income (494 ) (35 ) (529 ) (108 ) (637 ) (427 ) 489 62 United States*** 877 114 991 889 1,880 652 277 929 Asia-Pacific 307 24 331 11 342 286 16 302 Americas*** – – – – – 4 – 4 Western Europe 4 (1 ) 3 – 3 – – – EEMEA 2 – 2 – 2 1 – 1 Share of post-tax results of associates and joint ventures 1,190 137 1,327 900 2,227 943 293 1,236 Profit/(loss) before taxation 5,893 385 6,278 (33 ) 6,245 5,508 347 5,855 Taxation on ordinary activities (1,406 ) (1,333 ) Profit for the year 4,839 4,522 * The adjustments to profit from operations, net finance (costs) / income and the Group's share of the post-tax results of associates and joint ventures are explained in notes 3(e) to 3(i), note 4(b), note 5(a) and note 6(d) to (e) respectively. ** The Fox River charge in 2016 and 2015 (see note 3(g) and note 28) and the Flintkote charge in 2015 (see note 3(i) and note 28) have not been allocated to any segment as they neither relate to current operations nor the tobacco business. They are presented separately from the segmental reporting which is used to evaluate segment performance and to allocate resources, and is reported to the chief operating decision maker on this basis. *** The prior year comparison has been restated to reclassify the share of post-tax results in RAI from the Americas region to the new United States region. 2 Segmental analyses continued Adjusted profit from operations at constant rates of £7,665 million (2016: £5,197 million; 2015: £5,620 million) excludes certain depreciation, amortisation and impairment charges as explained in notes 3(e) and 3(f). These are excluded from segmental profit from operations at constant rates as follows: 2017 2016 Adjusted depreciation, amortisation and impairment Constant rates £m Translation exchange £m Adjusted depreciation, amortisation and impairment Current rates £m Adjusting items £m Depreciation, amortisation and impairment Current rates £m Adjusted depreciation, amortisation and impairment £m Adjusting items £m Depreciation, amortisation and impairment £m United States 57 2 59 120 179 Asia-Pacific 101 3 104 22 126 105 51 156 Americas 60 3 63 39 102 86 44 130 Western Europe 105 5 110 263 373 109 103 212 EEMEA 95 3 98 24 122 95 14 109 418 16 434 468 902 395 212 607 2016 2015 Adjusted depreciation, amortisation and impairment Constant rates £m Translation exchange £m Adjusted depreciation, amortisation and impairment Current rates £m Adjusting items £m Depreciation, amortisation and impairment Current rates £m Adjusted depreciation, amortisation and impairment £m Adjusting items £m Depreciation, amortisation and impairment £m Asia-Pacific 96 9 105 51 156 95 33 128 Americas 83 3 86 44 130 84 9 93 Western Europe 100 9 109 103 212 75 39 114 EEMEA 96 (1 ) 95 14 109 83 10 93 375 20 395 212 607 337 91 428 2 Segmental analyses continued External revenue and non-current assets other than financial instruments, deferred tax assets and retirement benefit assets are analysed between the UK and all foreign countries at current rates of exchange as follows: United Kingdom All foreign countries Group Revenue is based on location of sale 2017 £m 2016 £m 2015 £m 2017 £m 2016 £m 2015 £m 2017 £m 2016 £m 2015 £m External revenue 211 272 190 20,081 14,479 12,914 20,292 14,751 13,104 United Kingdom All foreign countries Group 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Intangible assets 514 551 117,271 11,566 117,785 12,117 Property, plant and equipment 406 371 4,476 3,290 4,882 3,661 Investments in associates and joint ventures – – 1,577 9,507 1,577 9,507 In 2017, the consolidated results of RAI companies operating in the United States met the criteria for separate disclosure under the requirements of IFRS 8 Operating Segments The main acquisitions comprising the goodwill balance of £44,147 million (2016: £11,023 million; 2015: £9,324 million), included in intangible assets, are provided in note 9. Due to the purchase of the remaining shares in RAI, investments in associates and joint ventures have decreased. In 2016, the investment in RAI was £8,051 million and in 2015 it was £5,749 million. Included in investments in associates and joint ventures are amounts of £1,527 million (2016: £1,394 million; 2015: £1,136 million) attributable to the investment in ITC Ltd. Further information is provided in note 5 and note 11. Regional structure change applicable from 1 January 2018 Due to the acquisition of RAI, a new organisational structure has been announced applicable from 1 January 2018. RAI will be reported as a separate region (United States). The markets which currently comprise EEMEA will be merged into Americas, Western Europe and Asia-Pacific to form three new regions. The markets in the Middle East will merge with Asia-Pacific to form the new Asia-Pacific and Middle East region (APME). The markets in East and Central Africa, West Africa and Southern Africa will merge with the Americas region to form the new Americas and Sub-Saharan Africa region (AmSSA). The markets in Russia, Ukraine, Caucasus, Central Asia, Belarus, Turkey and North Africa will merge with the Western Europe region to form the new Europe and North Africa region (ENA). 1 BAT Annual Report and Form 20-F 2017

Profit from operations

Profit from operations	12 Months Ended
	Dec. 31, 2017
Profit From Operations [Abstract]
Profit from operations	Notes on the Accounts continued 3 Profit from operations Enumerated below are movements in costs that have impacted profit from operations in 2017, 2016 and 2015. These include changes in our underlying business performance, as well as the impact of adjusting items, as defined in note 1, in profit from operations (note 3(c), 3(d), 3(e), 3(f), 3(g), 3(h) and 3(i)). (a) Employee benefit costs 2017 £ m 2016 £m 2015 £m Wages and salaries 2,131 1,882 1,667 Social security costs 216 207 174 Other pension and retirement benefit costs (note 12) 215 101 138 Share-based payments - equity and cash-settled (note 25) 117 84 60 2,679 2,274 2,039 (b) Depreciation, amortisation and impairment costs 2017 £ m 2016 £m 2015 £m Intangibles – amortisation and impairment of trademarks and similar intangibles (note 3(f)) 383 149 65 – amortisation and impairment of other intangibles 140 81 89 Property, plant and equipment – depreciation and impairment 379 377 274 902 607 428 Included within depreciation are gains and losses recognised on the sale of property, plant and equipment. 3 Profit from operations continued (c) Other operating expenses include: 2017 £ m 2016 £m 2015 £m Research and development expenses (excluding employee benefit costs and depreciation) 80 53 60 Exchange differences (6 ) (2 ) 10 Rent of plant and equipment (operating leases) – minimum lease payments 41 20 20 Rent of property (operating leases) – minimum lease payments 85 51 52 Fees payable for audit services pursuant to legislation: – fees payable to KPMG LLP for Parent Company and Group audit 6.3 2.0 2.0 – fees payable to other KPMG LLP firms and associates for local statutory and Group reporting audits 11.3 7.2 6.7 Audit fees payable to KPMG LLP firms and associates 17.6 9.2 8.7 Audit fees payable to PricewaterhouseCoopers LLP firms and associates – – 0.6 Audit fees payable to other firms 0.2 – – Total audit fees payable 17.8 9.2 9.3 Fees payable to KPMG LLP firms and associates for other services: – audit-related assurance services 8.0 0.2 0.2 – other assurance services 4.1 0.1 0.1 – tax advisory services – 0.2 0.6 – tax compliance 0.2 0.3 0.4 – other non-audit services – 1.4 2.0 12.3 2.2 3.3 The total fees payable to KPMG firms and associates included above are £29.9 million (2016: £11.4 million; 2015: £12.0 million). During 2017, the Group incurred additional expenditure with the Group’s auditor, as part of the acquisition of the remaining shares in RAI not previously owned. This was due to the SEC listing requirements to re-audit 2015 and 2016 under Public Company Accounting Oversight Board (“PCAOB”), to audit the purchase price allocation, to provide assurance services on the registration documents and to provide, amongst other things, assurance services with regards to the planned 2018 implementation of Sarbanes-Oxley. Accordingly, the following costs, related to the acquisition of RAI and treated as an adjusting item, were incurred within the respective categories: audit-related assurance service £7.7 million and within other assurance . Under SEC regulations, the remuneration of our auditors of £30.1 million in 2017 (2016: £11.4 million; 2015: £12.6 million) is required to be presented as follows: audit fees £29.2 million (2016: £9.2 million; 2015: £9.3 million), audit-related fees £0.5 million (2016: £0.2 million; 2015: £0.2 million), tax fees £0.2 million (2016: £0.5 million; 2015: £1.0 million) and all other fees £0.2 million (2016: £1.5 million; 2015: £2.1 million). Total research and development costs including employee benefit costs and depreciation are £191 million (2016: £144 million; 2015: £148 million). 3 Profit from operations continued (d) Master Settlement Agreement In 1998, the major US cigarette manufacturers (Group subsidiaries including R. J. Reynolds Tobacco Company (RJRT), Lorillard and Brown & Williamson, businesses which are part of RAI) entered into the Master Settlement Agreement (MSA) with attorney generals representing most US states and territories. The MSA imposes a perpetual stream of future payment obligations on the major US cigarette manufacturers. The amounts of money that the participating manufacturers are required to annually contribute are based upon, amongst other things, the US volume of cigarettes sold and US market share (based on cigarette shipments in that year). Given these facts, the Group’s accounting for the MSA payments is to accrue for them in the cost of products sold as the products are shipped and no provision is made in respect of potential payments relating to future years. The event which gives rise to the obligation is the actual sales of products shipped and the MSA payments are therefore recognised as part of the costs of those business operations. During 2012, RJRT, Santa Fe Natural Tobacco Company (SFNTC), various other tobacco manufacturers, 17 states, the District of Columbia and Puerto Rico reached an agreement related to the Non-Participating Manufacturer (NPM) adjustment under MSA. Under this agreement RJRT and SFNTC will receive credits, in respect of its NPM Adjustment claims for the period 2003 to 2014. These credits are applied against the company’s MSA payments subject to, and dependent upon, meeting the various ongoing performance obligations. In 2013 and 2014, five additional states joined NPM, including two states that were found to not have diligently enforced their qualifying statutes in 2003. An additional two states joined the agreement in 2017 and, as a result, expenses for the MSA were reduced by US$17 million for the year ended 31 December 2017. As a result of meeting the performance requirements in the agreement, RJRT and SFNTC, collectively, recognised additional credits of US$130 million and US$295 million for the years ended 31 December 2017 and 31 December 2016, respectively. Credits recognised in both these years include the benefit of the additional credits received as a result of the acquisition of Lorillard, Inc. in 2015. RJRT expects to recognise additional credits through 2020. In October 2015, RJRT, SFNTC and certain other tobacco manufacturers 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 RJRT and SFNTC, collectively, with credits, of approximately US$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. RJRT and SFNTC, collectively, recognised credits of US$99 million and US$95 million as a reduction to cost of products sold for the years ended 31 December 2017 and 31 December 2016, respectively. Credits in respect of future years’ payments and the NPM adjustment would be accounted for in the applicable year and will not be treated as adjusting items. Only credits in respect of prior year payments are included in adjusting items. (e) Restructuring and integration costs Restructuring costs reflect the costs incurred as a result of initiatives to improve the effectiveness and the efficiency of the Group as a globally integrated enterprise, including the relevant operating costs of implementing the new operating model. These costs represent additional expenses incurred, which are not related to the normal business and day-to-day activities. The new operating model is underpinned by a global single instance of SAP with full deployment occurring during 2016 with benefits already realised within the business and future savings expected in the years to come. The initiatives also include a review of the Group’s trade marketing and manufacturing operations, supply chain, overheads and indirect costs, organisational structure and systems and software used. The costs of the Group’s initiatives together with the costs of integrating acquired businesses into existing operations, including acquisition costs, are included in profit from operations under the following headings: 2017 £ m 2016 £m 2015 £m Employee benefit costs 193 240 159 Depreciation, amortisation and impairment costs 85 64 26 Other operating expenses 330 325 228 Other operating income (8 ) (26 ) (46 ) 600 603 367 Restructuring and integration costs in 2017 include advisor fees and costs incurred related to the acquisition of the remaining shares in RAI not already owned by the Group, that completed on 25 July 2017. Further information is provided in note 24. It also includes the implementation of a new operating model and the cost of redundancy packages in respect of permanent headcount reductions and permanent employee benefit reductions in the Group. The costs also cover integration costs incurred as a result of the RAI acquisition, factory closure and downsizing activities in Germany and Malaysia, certain exit costs and asset write-offs related to the withdrawal from the Philippines. Since the acquisition of RAI, adjusting items also includes cost related to the Engle progeny cases as well as tobacco-related and other litigation costs. 3 Profit from operations continued Restructuring and integration costs in 2016 principally related to the restructuring initiatives directly related to implementation of a new operating model and the cost of initiatives in respect of permanent headcount reductions and permanent employee benefit reductions in the Group. The costs also covered factory closures and downsizing activities in Germany, Malaysia and Brazil, certain exit costs and asset write-offs related to the change in approach to the commercialisation of Voke, uncertainties surrounding regulatory changes and restructurings in Japan and Australia. Restructuring and integration costs in 2015 principally related to the restructuring initiatives directly related to implementation of a new operating model and the cost of initiatives in respect of permanent headcount reductions and permanent employee benefit reductions in the Group. The costs also cover factory closure and downsizing activities in Australia, certain costs related to the acquisitions undertaken (including TDR in Croatia) and restructurings in Indonesia, Canada, Switzerland and Germany. In 2017, other operating income includes gains from the sale of land and buildings in Brazil and in 2016 this included gains from the sale of land and buildings in Malaysia. In 2015, other operating income included gains from the sale of land and buildings in Australia. (f) Amortisation and impairment of trademarks and similar intangibles Business combinations in 2017 of RAI, Winnington AB and Must Have Limited, along with the acquisition of tobacco assets in Bulgartabac and Fabrika Duhana Sarajevo (see note 24), as well as business combinations of Ten Motives, CHIC, TDR, Bentoel and ST in previous years, have resulted in the capitalisation of trademarks and similar intangibles which are amortised over their expected useful lives, which do not exceed 20 years. The amortisation and impairment charge of £383 million (2016: £149 million; 2015: £65 million) is included in depreciation, amortisation and impairment costs in profit from operations. (g) Fox River As explained in note 28, a Group subsidiary has certain liabilities in respect of indemnities given on the purchase and disposal of former businesses in the United States and in 2011, the subsidiary provided £274 million in respect of claims in relation to environmental clean-up costs of the Fox River. On 30 September 2014, a Group subsidiary, NCR, Appvion and Windward Prospects entered into a Funding Agreement with regard to the costs for the clean-up of Fox River. In January 2017, NCR and Appvion entered into a consent decree with the US Government to resolve how the remaining clean-up will be funded and to resolve further outstanding claims between them. The Consent Decree was approved by a U.S. District Judge in August 2017 but is currently subject to appeal in the U.S. Seventh Circuit Court of Appeals, see note 28 for further details. In July 2016, the High Court ruled in a Group subsidiary’s favour that a dividend of €135 million paid by Windward to Sequana in May 2009 was a transaction made with the intention of putting assets beyond the reach of the Group subsidiary and of negatively impacting its interests. On 10 February 2017, further to a hearing in January 2017 to determine the relief due, the Court found in the Group subsidiary’s favour, ordering that Sequana must pay an amount up to the full value of the dividend plus interest which equates to around US$185 million, related to past and future clean-up costs. The Court granted all parties leave to appeal and Sequana a stay in respect of the above payments. The appeal hearing is expected to take place in June 2018. Due to the uncertain outcome of the case no asset has been recognised in relation to this ruling. In February 2017, Sequana entered into a process in France seeking court protection (the “Sauvegarde”), exiting the Sauvegarde in June 2017. No payments have been received. The provision is £138 million at 31 December 2017 (2016: £163 million). Based on this Funding Agreement, £25 million has been paid in 2017, which includes legal costs of £7 million (2016: £17 million, including legal costs of £11 million; 2015: £17 million, including legal costs of £8 million). In addition, in 2016 the devaluation of sterling against the US dollar lead to a charge of (h) Other adjusting items In 2017, the release of the fair value acquisition accounting adjustments to finished goods inventories of £465 million on the RAI acquisition has been adjusted within “Changes in inventories of finished goods and work in progress”. Also included in 2017 is the impairment of certain assets of £69 million related to a third-party distributor (Agrokor) in Croatia, that has been adjusted within ‘other operating expenses’. In 2016, the Board of Audit and Inspection of Korea (“BAI”) concluded its tax assessment in relation to the 2014 year-end tobacco inventory, and imposed additional sales tax (excise and VAT) and penalties. This resulted in the recognition of a £53 million charge by a Group subsidiary. Management deems the tax and penalties to be unfounded and has appealed to the tax tribunal against the assessment. Based on the legal opinion from a local law firm, management believes that this appeal will be successful, and that the findings of the BAI will be reversed. On grounds of materiality and the high likelihood of the tax and penalties being reversed in future, the Group has classified the tax and penalties charge as an adjusting item in 2016. (i) Flintkote In December 2014, a Group subsidiary entered into a settlement agreement in connection with various legal cases related to a former non-tobacco business in Canada. Under the terms of the settlement, the subsidiary will obtain protection from current and potential future Flintkote related asbestos liability claims in the US. The settlement was finalised in 2015 when approvals of certain courts in the US were obtained. This agreement has led to a charge of £nil million in 2017 (2016: £nil million; 2015: £3 million). 1 BAT Annual Report and Form 20-F 2017

Net finance costs_(income)

Net finance costs/(income)	12 Months Ended
	Dec. 31, 2017
Net Finance Costs [Abstract]
Net finance costs/(income)	4 Net finance costs/(income) (a) Net finance costs/(income) 2017 £m 2016 £m 2015 £m Interest expense 1,081 645 573 Option costs and fees (see note 4(b)(v)) – – 104 Facility fees 13 5 9 Interest related to adjusting tax payables (see note 4(b)(ii)) 43 25 8 Loss on bond redemption (see note 4(b)(iv)) – 101 – Acquisition of RAI (see note 4(b)(i)) 153 – – Fair value changes on derivative financial instruments and hedged items (149 ) (458 ) (245 ) Hedge ineffectiveness (see note 4(b)(iii)) 9 – – Exchange differences on financial liabilities 47 363 135 Finance costs 1,197 681 584 Interest and dividend income (84 ) (68 ) (79 ) Hedge ineffectiveness (see note 4(b)(iii)) – (18 ) – Deemed gain related to the investment in Reynolds (see note 4(b)(vi)) – – (601 ) Exchange differences on financial assets (19 ) 42 34 Finance income (103 ) (44 ) (646 ) Net finance costs/(income) 1,094 637 (62 ) The Group manages foreign exchange gains and losses and fair value changes on a net basis excluding adjusting items, which are explained in note 4(b) and the derivatives that generate the fair value changes are as in note 16. Facility fees principally relate to the Group's central banking facilities. (b) Adjusting items included in net finance costs/(income) Adjusting items are significant items in net finance costs/(income) which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance. The following adjusting items have been recognised: (i) the Group incurred £153 million of financing costs related to the acquisition of the shares not already owned by the Group in RAI; (ii) the Group incurred interest on adjusting tax payables of £43 million, including interest of (iii) the Group experienced significant hedge ineffectiveness, driven by market volatility following the “Brexit” referendum. The gain in 2016 of £18 million was deemed to be adjusting as it is not representative of the underlying performance of the business and so the partial reversal of £9 million in 2017 has also been deemed as an adjusting item. In 2016, the following adjusting items have been recognised: (iv) the Group redeemed a US$700 million bond, prior to its original maturity date of 15 November 2018. This led to a loss of US$130 million (£101 million), which has been treated as an adjusting item. In 2015, the following adjusting items have been recognised: (v) costs of £104 million in relation to financing activities, which includes costs on the acquisition of the non-controlling interests in the Group’s Brazilian subsidiary, Souza Cruz S.A. and the Group’s activities to maintain the then current ownership in RAI following its acquisition of Lorillard, Inc.; and (vi) the Group’s investment of US$4.7 billion in cash of RAI has realised a deemed gain of US$931 million (£601 million). The deemed gain reflects the difference between the fixed price paid by the Group to RAI and the market value of RAI shares on the day of the transaction (see note 24(d)).

Associates and joint ventures

Associates and joint ventures	12 Months Ended
	Dec. 31, 2017
Disclosure Of Associates And Joint Ventures [Abstract]
Associates and joint ventures	5 Associates and joint ventures 2017 2016 2015 Total £m Group’s share £m Total £m Group’s share £m Total £m Group’s share £m Revenue 14,085 4,794 16,491 5,997 11,186 4,215 Profit from operations* 4,342 24,854 9,379 3,740 6,117 2,391 Net finance costs (279 ) (116 ) (477 ) (200 ) (335 ) (139 ) Profit on ordinary activities before taxation 4,063 24,738 8,902 3,540 5,782 2,252 Taxation on ordinary activities (1,441 ) (522 ) (3,280 ) (1,308 ) (2,545 ) (1,013 ) Profit on ordinary activities after taxation 2,622 24,216 5,622 2,232 3,237 1,239 Non-controlling interests (22 ) (7 ) (17 ) (5 ) (12 ) (3 ) Post-tax results of associates and joint ventures 2,600 24,209 5,605 2,227 3,225 1,236 Comprised of: – adjusted share of post-tax results of associates and joint ventures 2,785 1,012 3,461 1,327 2,501 943 – issue of shares and change in shareholding 98 29 36 11 74 22 – gain on deemed divestment of RAI – 23,288 – – – – – gain on disposal of assets – – 2,231 941 879 371 – other (283 ) (120 ) (123 ) (52 ) (229 ) (100 ) 2,600 24,209 5,605 2,227 3,225 1,236 * The gain on deemed divestment of RAI is recognised in the Group’s share of associates profit from operations. Enumerated below are movements that have impacted the post-tax results of associates and joint ventures in 2017, 2016 and 2015. (a) Adjusting items In 2017, the Group’s interest in ITC Ltd. (ITC) decreased from 29.89% to 29.71% (2016: 30.06% to 29.89%; 2015: 30.26% to 30.06%) as a result of ITC issuing ordinary shares under the ITC Employee Share Option Scheme. The issue of these shares and change in the Group’s share of ITC resulted in a gain of £29 million (2016: £11 million; 2015: £22 million), which is treated as a deemed partial disposal and included in the income statement. On 25 July 2017, the Group announced the completion of the acquisition of the 57.8% of RAI the Group did not already own. As at this date RAI ceased to be reported as an associate and has become a fully owned subsidiary. Accordingly, as at that date, the Group was deemed to divest its investment in Reynolds as an associate and consolidated RAI in accordance with IFRS 10 Consolidated Financial Statements In 2017, due to a deterioration in the financial performance of Tisak d.d. (Tisak), linked to the financial difficulties associated with a third-party distributor (Agrokor) in Croatia, the Group impaired the carrying value of this investment. This resulted in a charge of £27 million to the income statement that has been reported as an “other” adjusting item. In 2016, RAI recognised a gain in relation to the sale of the international rights to Natural American Spirit to the Japan Tobacco Group of companies (JT) of US$4,861 million. The Group’s share of this net gain amounted to £941 million (net of tax). In 2015, RAI recognised a gain on the related divestiture of assets, following the Lorillard, Inc. (Lorillard) acquisition, of US$3,288 million. The Group’s share of this net gain amounted to £371 million (net of tax). 5 Associates and joint ventures continued RAI has also recognised amounts in the Group’s consolidated statements of income as “other”. In 2017, this includes transaction costs associated with the acquisition by the Group of US$125 million, the Group’s share of which is £33 million (net of tax) (2016: £nil million; 2015: £nil million), deferred tax charges in respect of temporary differences on trademarks of US$51 million, the Group’s share of which is £18 million (2016: £nil million; 2015: £nil million), restructuring charges of US$79 million, the Group’s share of which is £14 million (net of tax) (2016: US$36 million, the Group’s share of which is £7 million; 2015: US$223 million and £39 million, respectively) and costs in respect of a number of Engle progeny lawsuits and other tobacco litigation charges that amounted to US$162 million, the Group’s share of which is £32 million (net of tax) (2016: US$86 million, the Group’s share of which is £17 million (net of tax); 2015: US$152 million, the Group’s share of which is £26 million (net of tax)). Additionally, there is income of US$17 million (2016: US$6 million; 2015: US$108 million) related to the Non-Participating Manufacturer (NPM) Adjustment claims of the states no longer challenging the findings of non-diligence entered against them by an Arbitration Panel, the Group’s share of which is £4 million (net of tax) (2016: £2 million; 2015: £18 million). The remaining costs in 2016 includes income relating to the early termination of the Manufacturing Agreement between BATUS Japan Inc. and RJRT (see note 27) of US$90 million, the Group’s share of which is £18 million (net of tax) (2015: US$ nil million and £nil million, respectively) and transaction costs of US$5 million (2015: US$54 million) and financing costs of US$243 million (2015: US$60 million), connected with the acquisition of Lorillard, the Group's share is £1 million (net of tax) (2015: £12 million) and £47 million of financing costs (2015: £10 million). The remaining costs in 2015 of US$99 million are primarily in respect of asset impairment and exit charges, the Group's share of which is £25 million (net of tax). (b) Master Settlement Agreement For information on the Master Settlement Agreement applicable to RAI as an associate for the period up to and including 24 July 2017, see note 3(d). (c) Other financial information The Group’s share of the results of associates and joint ventures is shown in the table below. 2017 2016 2015 Group’s share £m Group’s share £m Group’s share £m Profit on ordinary activities after taxation – attributable to owners of the Parent 24,209 2,227 1,236 Other comprehensive income: Differences on exchange (923 ) 1,425 336 Net fair value gains/(losses) on available-for-sale investments 5 (10 ) 1 Actuarial gains relating to pensions and other post-retirement benefits (note 19) 25 20 3 Total comprehensive income (note 11) 23,316 3,662 1,576 Summarised financial information of the Group’s associates and joint ventures is shown below. 2017 RAI* £m ITC £m Others £m Total £m Revenue 5,525 6,607 1,953 14,085 Profit on ordinary activities before taxation 2,017 2,054 (8 ) 4,063 Post-tax results of associates and joint ventures 1,261 1,362 (23 ) 2,600 Other comprehensive income (595 ) (135 ) (8 ) (738 ) Total comprehensive income 666 1,227 (31 ) 1,862 * The information presented above for RAI is for the period from 1 January 2017 up to and including 24 July 2017. Further information is presented in note 24(a). 5 Associates and joint ventures continued 2016 RAI £m ITC £m Others £m Total £m Revenue 9,224 5,350 1,917 16,491 Profit on ordinary activities before taxation 7,111 1,743 48 8,902 Post-tax results of associates and joint ventures 4,457 1,114 34 5,605 Other comprehensive income 3,125 712 (178 ) 3,659 Total comprehensive income 7,582 1,826 (144 ) 9,264 2015 RAI £m ITC £m Others £m Total £m Revenue 6,986 3,839 361 11,186 Profit on ordinary activities before taxation 4,250 1,505 27 5,782 Post-tax results of associates and joint ventures 2,203 1,005 17 3,225 Other comprehensive income 684 43 (24 ) 703 Total comprehensive income 2,887 1,048 (7 ) 3,928 1 BAT Annual Report and Form 20-F 2017

Taxation on ordinary activities

Taxation on ordinary activities	12 Months Ended
	Dec. 31, 2017
Major Components Of Tax Expense Income [Abstract]
Taxation on ordinary activities	Notes on the Accounts continued 6 Taxation on ordinary activities (a) Summary of taxation on ordinary activities 2017 £m 2016 £m 2015 £m UK corporation tax 26 7 5 Overseas tax 1,617 1,395 1,324 Comprising: – current year tax expense 1,615 1,382 1,317 – adjustments in respect of prior periods 2 13 7 Total current tax 1,643 1,402 1,329 Deferred tax (9,756 ) 4 4 Comprising: – deferred tax relating to origination and reversal of temporary differences (136 ) 4 (11 ) – deferred tax relating to changes in tax rates (9,620 ) – 15 (8,113 ) 1,406 1,333 (b) Franked Investment Income Group Litigation Order The Group is the principal test claimant in an action in the United Kingdom against HM Revenue and Customs (HMRC) in the Franked Investment Income Group Litigation Order (FII GLO). There are 25 corporate groups in the FII GLO. The case concerns the treatment for UK corporate tax purposes of profits earned overseas and distributed to the UK. The original claim was filed in 2003. The trial of the claim was split broadly into issues of liability and quantification. The main liability issues were heard by the High Court, Court of Appeal and Supreme Court in the UK and the European Court of Justice in the period to November 2012. The detailed technical issues of the quantification mechanics of the claim were heard by the High Court during May and June 2014 and the judgment handed down on 18 December 2014. The High Court determined that in respect of issues concerning the calculation of unlawfully charged corporation tax and advance corporation tax, the law of restitution including the defence on change of position and questions concerning the calculation of overpaid interest, the approach of the Group was broadly preferred. The conclusion reached by the High Court would, if upheld, produce an estimated receivable of £1.2 billion for the Group. Appeals on a majority of the issues were made to the Court of Appeal, which heard the arguments in June 2016. The Court of Appeal determined in November 2016 on the majority of issues that the conclusion reached by the High Court should be upheld. The outcome of the Court of Appeal has not reduced the estimated receivable. HMRC have sought permission to appeal to the Supreme Court on all issues. The Supreme Court has deferred a decision on whether or not to grant permission pending other litigation. A decision on whether permission will be granted is anticipated in mid-2018. If permission is granted the hearing of the appeal will likely be in 2019. During 2015, HMRC paid to the Group a gross amount of £1,224 million in two separate payments. The payments made by HMRC have been made without any admission of liability and are subject to refund were HMRC to succeed on appeal. The second payment in November 2015 followed the introduction of a new 45% tax on the interest component of restitution claims against HMRC. HMRC held back £261 million from the second payment contending that it represents the new 45% tax on that payment, leading to total cash received by the Group of £963 million. Actions challenging the legality of the withholding of the 45% tax have been lodged by the Group. The First Tier Tribunal found in favour of HMRC in July 2017 and the Group’s appeal to the Upper Tribunal is scheduled to be heard in 2018. Due to the uncertainty of the amounts and eventual outcome the Group has not recognised any impact in the Income Statement in the current or prior period. The receipt, net of the deduction by HMRC, is held as deferred income as disclosed in note 22. Any future recognition as income will be treated as an adjusting item, due to the size of the amount, with interest of £ 25 6 Taxation on ordinary activities continued (c) Factors affecting the taxation charge The taxation charge differs from the standard 19% (2016: 20%; 2015: 20%) rate of corporation tax in the UK. The major causes of this difference are listed below: 2017 2016 2015 £m % £m % £m % Profit before tax 29,591 6,245 5,855 Less: share of post-tax results of associates and joint ventures (see note 5) (24,209 ) (2,227 ) (1,236 ) 5,382 4,018 4,619 Tax at 19% (2016: 20%; 2015: 20%) on the above 1,023 19.0 804 20.0 924 20.0 Factors affecting the tax rate: Tax at standard rates other than UK corporation tax rate 392 7.3 93 2.3 231 5.0 Other national tax charges 119 2.2 74 1.9 77 1.7 Permanent differences 40 0.7 143 3.6 (147 ) (3.2 ) Oversea tax on distributions 25 0.5 41 1.0 28 0.6 Overseas withholding taxes 191 3.5 200 5.0 145 3.1 Double taxation relief on UK profits (29 ) (0.5 ) (8 ) (0.2 ) (6 ) (0.1 ) (Utilised)/unutilised tax losses (38 ) (0.7 ) 32 0.8 32 0.7 Adjustments in respect of prior periods 2 – 13 0.3 7 0.2 Deferred tax relating to changes in tax rates (9,620 ) (178.7 ) – – 15 0.3 Deemed US repatriation tax 34 0.6 – – – – Release of deferred tax on unremitted earnings of associates (180 ) (3.3 ) – – – – Additional net deferred tax (credits)/charges (72 ) (1.3 ) 14 0.3 27 0.6 (8,113 ) (150.7 ) 1,406 35.0 1,333 28.9 In 2016, permanent differences include non-tax deductible expenses for a number of items including expenditure relating to restructuring and integration costs such as factory rationalisation (d) Adjusting items included in taxation On 22 December 2017, the United States Government enacted comprehensive tax legislation which, among other things, changed the Federal tax rate to 21% from 1 January 2018. This revised rate has been used to revalue net deferred tax liabilities in the United States, leading to a credit to the income statement of £9,620 million. The net deferred tax liabilities largely relate to the difference in tax value versus the fair market value of trademarks accounted for under IFRS as part of the RAI acquisition. The legislation also imposed a one-time deemed repatriation tax on accumulated foreign earnings, the impact less foreign tax credits is £34 million. IFRS also requires entities to provide deferred taxation on the undistributed earnings of associates and joint ventures. From the date of the acquisition of the remaining shares in RAI not already owned by the Group, the Group consolidates the results of RAI as a wholly owned subsidiary and as such the deferred tax liability of £180 million on unremitted earnings of RAI as an associate has been released to the income statement. In 2016, the Group’s share of the gain on the divestiture of intangibles and other assets by RAI to Japan Tobacco International is £941 million. Given that the profit on this item is recognised as an adjusting item by the Group, the additional deferred tax charge of £61 million on the potential distribution of these undistributed earnings has also been treated as adjusting. In 2015, the Group’s share of the gain on the divestiture of intangibles and other assets by RAI to ITG Brands LLC, a subsidiary of Imperial Tobacco Group PLC, is £371 million. Given that the profit on this item was recognised as an adjusting item by the Group, the additional deferred tax charge of £22 million on the potential distribution of these undistributed earnings has also being treated as adjusting. (e) Tax on adjusting items In addition, the tax on adjusting items, separated between the different categories, as per note 7, amounted to £454 million (2016: £128 million; 2015: £80 million). As described in note 4(b), in 2015, the Group’s investment of US$4.7 billion in cash in RAI realised a deemed gain of US$931 million (£601 million). The adjustment to the adjusted earnings per share (see note 7) also includes £4 million (2016: £1 million; 2015: £3 million) in respect of the non-controlling interests’ share of the adjusting items net of tax. 6 Taxation on ordinary activities continued (f) Tax on items recognised directly in other comprehensive income 2017 £m 2016 £m 2015 £m Current tax (4 ) (53 ) 7 Deferred tax (133 ) 70 (9 ) (Charged)/credited to other comprehensive income (137 ) 17 (2 ) The tax relating to each component of other comprehensive income is disclosed in note 19. BAT Annual Report and Form 20-F 2017 1

Earnings per share

Earnings per share	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Earnings per share	7 Earnings per share 2017 2016 2015 Earnings £m Weighted average number of shares m Earnings per share pence Earnings £m Weighted average number of shares m Earnings per share pence Earnings £m Weighted average number of shares m Earnings per share pence Basic earnings per share (ordinary shares of 25p each) 37,533 2,044 1,836.3 4,648 1,858 250.2 4,290 1,858 230.9 Share options – 7 (6.3 ) – 7 (1.0 ) – 5 (0.6 ) Diluted earnings per share 37,533 2,051 1,830.0 4,648 1,865 249.2 4,290 1,863 230.3 7 Earnings per share continued Adjusted earnings per share calculation Earnings have been affected by a number of adjusting items, which are described in notes 3 to 6. Adjusting items are significant items in the profit from operations, net finance costs, taxation and the Group’s share of the post-tax results of associates and joint ventures which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance. The Group believes that these items are useful to users of the Group financial statements in helping them to understand the underlying business performance. To illustrate the impact of these items, an adjusted earnings per share calculation is shown below. Diluted 2017 2016 2015 Notes Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Diluted earnings per share 37,533 1,830.0 4,648 249.2 4,290 230.3 Effect of restructuring and integration costs 3(e) 600 29.3 603 32.3 367 19.7 Tax and non-controlling interests on restructuring and integration costs (133 ) (6.5 ) (90 ) (4.8 ) (74 ) (4.0 ) Effect of amortisation and impairment of trademarks and similar intangibles 3(f) 383 18.7 149 8.0 65 3.5 Tax on amortisation and impairment of trademarks and similar intangibles (90 ) (4.4 ) (32 ) (1.7 ) (9 ) (0.5 ) Effect of associates' adjusting items net of tax 5(a) (23,197 ) (1,131.0 ) (900 ) (48.3 ) (293 ) (15.7 ) Other adjusting items 3(h) 534 26.0 53 2.9 – – Tax effect on other adjusting items (184 ) (9.0 ) (5 ) (0.3 ) – – Deferred tax relating to changes in tax rates 6(c) (9,586 ) (467.4 ) – – – – Release of deferred tax on unremitted earnings from associates 6(c) (180 ) (8.8 ) – – – – Effect of Fox River 3(g) – – 20 1.1 – – Effect of Flintkote 3(i) – – – – 3 0.2 Effect of deemed gain related to investment in RAI 4(b) – – – – (601 ) (32.3 ) Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) 6(d) – – 61 3.3 22 1.2 Effect of interest on FII GLO settlement and other 4(b) 43 2.1 25 1.3 8 0.4 Effect of adjusting finance costs in relation to acquisition of RAI 4(b) 153 7.5 – – – – Tax Effect of adjusting finance costs in relation to acquisition of RAI (49 ) (2.4 ) – – – – Effect of certain costs and fees related to the acquisition of NCI in Souza Cruz and investment in RAI 4(b) – – – – 104 5.6 Effect of hedge ineffectiveness 4(b) 9 0.4 (18 ) (1.0 ) – – Tax effect on hedge ineffectiveness (2 ) (0.1 ) – – – – Effect of US bond buy back 4(b) – – 101 5.5 – – Adjusted earnings per share (diluted) 5,834 284.4 4,615 247.5 3,882 208.4 7 Earnings per share continued Basic 2017 2016 2015 Notes Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Basic earnings per share 37,533 1,836.3 4,648 250.2 4,290 230.9 Effect of restructuring and integration costs 3(e) 600 29.4 603 32.4 367 19.7 Tax and non-controlling interests on restructuring and integration costs (133 ) (6.5 ) (90 ) (4.9 ) (74 ) (4.0 ) Effect of amortisation and impairment of trademarks and similar intangibles 3(f) 383 18.7 149 8.0 65 3.5 Tax on amortisation and impairment of trademarks and similar intangibles (90 ) (4.4 ) (32 ) (1.7 ) (9 ) (0.5 ) Effect of associates' adjusting items net of tax 5(a) (23,197 ) (1,134.9 ) (900 ) (48.4 ) (293 ) (15.8 ) Other adjusting items 3(h) 534 26.1 53 2.9 – – Tax effect on other adjusting items (184 ) (9.0 ) (5 ) (0.3 ) – – Deferred tax relating to changes in tax rates 6(c) (9,586 ) (469.0 ) – – – – Release of deferred tax on unremitted earnings from associates 6(c) (180 ) (8.8 ) – – – – Effect of Fox River 3(g) – – 20 1.1 – – Effect of Flintkote 3(i) – – – – 3 0.2 Effect of deemed gain related to investment in RAI 4(b) – – – – (601 ) (32.3 ) Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) 6(d) – – 61 3.3 22 1.2 Effect of interest on FII GLO settlement and other 4(b) 43 2.1 25 1.3 8 0.4 Effect of adjusting finance costs in relation to acquisition of RAI 4(b) 153 7.5 – – – – Tax Effect of adjusting finance costs in relation to acquisition of RAI (49 ) (2.4 ) – – – – Effect of certain costs and fees related to the acquisition of NCI in Souza Cruz and investment in RAI 4(b) – – – – 104 5.6 Effect of hedge ineffectiveness 4(b) 9 0.4 (18 ) (1.0 ) – – Tax effect on hedge ineffectiveness (2 ) (0.1 ) – – – – Effect of US bond buy back 4(b) – – 101 5.5 – – Adjusted earnings per share (basic) 5,834 285.4 4,615 248.4 3,882 208.9 7 Earnings per share continued Headline earnings per share as required by the JSE Limited The presentation of headline earnings per share, as an alternative measure of earnings per share, is mandated under the JSE Listing Requirements. It is calculated in accordance with Circular 2/2015 ‘Headline Earnings’, as issued by the South African Institute of Chartered Accountants. Diluted 2017 2016 2015 Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Diluted earnings per share 37,533 1,830.0 4,648 249.2 4,290 230.3 Effect of impairment of intangibles, property, plant and equipment and assets held for sale 179 8.6 126 6.8 27 1.4 Tax and non-controlling interests on impairment of intangibles and property, plant and equipment (35 ) (1.7 ) (35 ) (1.9 ) (6 ) (0.3 ) Effect of gains on disposal of property, plant and equipment and held-for-sale assets (48 ) (2.3 ) (59 ) (3.2 ) (60 ) (3.2 ) Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets 13 0.6 30 1.6 19 1.0 Gain on deemed disposal of RAI associate (23,288 ) (1,135.4 ) – - – - Write off of investment in associate 27 1.3 Effect of gains reclassified from the available-for-sale reserve – – – - (10 ) (0.6 ) Tax and non-controlling interests on gains reclassified from the available-for-sale reserve – – – - 3 0.2 Share of associates' impairment losses and non-current investments – – – - 17 0.9 Share of associates' gains on disposal of assets – – (941 ) (50.4 ) (371 ) (19.9 ) Tax effect of associates' disposal of assets – – 61 3.3 22 1.2 Issue of shares and change in shareholding in associate (29 ) (1.4 ) (11 ) (0.6 ) (22 ) (1.2 ) Headline earnings per share (diluted) 14,352 699.7 3,819 204.8 3,909 209.8 7 Earnings per share continued Basic 2017 2016 2015 Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Basic earnings per share 37,533 1,836.3 4,648 250.2 4,290 230.9 Effect of impairment of intangibles, property, plant and equipment and assets held for sale 179 8.7 126 6.8 27 1.4 Tax and non-controlling interests on impairment of intangibles and property, plant and equipment (35 ) (1.7 ) (35 ) (1.9 ) (6 ) (0.3 ) Effect of gains on disposal of property, plant and equipment and held-for-sale assets (48 ) (2.3 ) (59 ) (3.2 ) (60 ) (3.2 ) Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets 13 0.6 30 1.6 19 1.0 Gain on deemed disposal of RAI associate (23,288 ) (1,139.3 ) – - – - Write off of investment in associate 27 1.3 – - – - Effect of gains reclassified from the available-for-sale reserve – – – - (10 ) (0.6 ) Tax and non-controlling interests on gains reclassified from the available-for-sale reserve – – – - 3 0.2 Share of associates' impairment losses and non-current investments – – – - 17 0.9 Share of associates' gains on disposal of assets – – (941 ) (50.6 ) (371 ) (19.9 ) Tax effect of associates' disposal of assets – – 61 3.3 22 1.2 Issue of shares and change in shareholding in associate (29 ) (1.4 ) (11 ) (0.6 ) (22 ) (1.2 ) Headline earnings per share (basic) 14,352 702.2 3,819 205.6 3,909 210.4 1 BAT Annual Report and Form 20-F 2017

Dividends and other appropriati

Dividends and other appropriations	12 Months Ended
	Dec. 31, 2017
Disclosure Of Dividends [Abstract]
Dividends and other appropriations	8 Dividends and other appropriations 2017 2016 2015 Pence per share £m Pence per share £m Pence per share £m Ordinary shares Interim 2017 paid 8 February 2018 43.6 1,004 2017 paid 28 September 2017 56.5 1,284 2016 paid 28 September 2016 51.3 961 2015 paid 30 September 2015 49.4 908 Final 2016 paid 4 May 2017 118.1 2,181 2015 paid 5 May 2016 104.6 1,949 2014 paid 7 May 2015 100.6 1,862 218.2 4,469 155.9 2,910 150.0 2,770 As announced on 26 April 2017, from 1 January 2018, the Group will move to four interim quarterly dividend payments. As part of the transition, and to ensure shareholders receive the equivalent amount of total cash payments in 2018 as they would have under the previous payment policy, an additional interim dividend of 43.6 pence per share was announced on 5 December 2017 which was paid on 8 February 2018. The dividend declared in 2017 for payment on 8 February 2018 was £1,000 million and is estimated based on the number of shares and the proportion of dividends to be paid in foreign currency using the exchange rate at year end. This second interim dividend takes the total dividends declared in respect of 2017 to £4,465 million (2016: £3,155 million; 2015: £2,851 million) representing 218.2 pence per share (2016: 169.4 pence per share; 2015: 154.0 pence per share).

Intangible assets

Intangible assets	12 Months Ended
	Dec. 31, 2017
Disclosure Of Intangible Assets [Abstract]
Intangible assets	9 Intangible assets 2017 Goodwill £m Computer software £m Trademarks and similar intangibles £m Assets in the course of development £m Total £m 1 January Cost 11,023 1,054 1,255 60 13,392 Accumulated amortisation and impairment (616 ) (659 ) (1,275 ) Net book value at 1 January 11,023 438 596 60 12,117 Differences on exchange (1,189 ) (3 ) (2,669 ) – (3,861 ) Additions – internal development – – – 87 87 – acquisitions (note 24) 34,313 33 75,488 4 109,838 – separately acquired – 29 98 – 127 Reallocations – 80 – (80 ) – Amortisation charge – (88 ) (268 ) – (356 ) Impairment – (42 ) (125 ) – (167 ) 31 December Cost 44,147 1,119 74,136 71 119,473 Accumulated amortisation and impairment (672 ) (1,016 ) (1,688 ) Net book value at 31 December 44,147 447 73,120 71 117,785 9 Intangible assets continued 2016 Goodwill £m Computer software £m Trademarks and similar intangibles £m Assets in the course of development £m Total £m 1 January Cost 9,324 918 1,015 180 11,437 Accumulated amortisation and impairment (569 ) (432 ) (1,001 ) Net book value at 1 January 9,324 349 583 180 10,436 Differences on exchange 1,690 2 96 7 1,795 Additions – internal development – 11 – 49 60 – acquisitions (note 24) 9 – 33 – 42 – separately acquired – 1 21 – 22 Reallocations – 147 29 (176 ) – Amortisation charge – (72 ) (133 ) – (205 ) Impairment – – (33 ) – (33 ) 31 December Cost 11,023 1,054 1,255 60 13,392 Accumulated amortisation and impairment (616 ) (659 ) (1,275 ) Net book value at 31 December 11,023 438 596 60 12,117 Included in computer software and assets in the course of development are internally developed assets with a carrying value of £459 million (2016: £484 million). The costs of internally developed assets include capitalised expenses of employees working full time on software development projects, third party consultants, as well as software licence fees from third party suppliers. The Group has £16 million future contractual commitments (2016: £nil million) related to intangible assets. 9 Intangible assets continued Trademarks and similar Included in the net book value of trademarks and similar intangibles are trademarks relating to the acquisition of RAI £3,097 million (2016: £nil million), TDR d.o.o. £61 million (2016: £105 million), Sudan £29 million (2016: £37 million), CHIC Group £29 million (2016: £40 million), Skandinavisk Tobakskompagni (ST) £230 million (2016: £244 million), Tekel £11 million (2016: £16 million), Bentoel £8 million (2016: £15 million) and Protabaco £nil million (2016: £30 million). Trademarks and similar Included in the net book value of trademarks and similar intangibles are trademarks relating to the acquisition of RAI with indefinite lives amounting to £69,562 million. The trademarks and similar intangibles have been tested for impairment in line with the methodology outlined below. Impairment testing for intangible assets with indefinite lives including goodwill Goodwill of £44,147 million (2016: £11,023 million) is included in intangible assets in the balance sheet of which the following are the significant acquisitions: RAI £33,062 million (2016: £nil million); Rothmans Group £4,834 million (2016: £4,809 million); Imperial Tobacco Canada £2,367 million (2016: £2,420 million); ETI (Italy) £1,462 million (2016: £1,406 million) and ST (principally Scandinavia) £1,102 million (2016: £1,061 million). The principal allocations of goodwill in the Rothmans’ acquisition are to the cash-generating units of Eastern Europe, Western Europe and South Africa, with the remainder mainly relating to operations in the domestic and export markets in the United Kingdom and operations in Asia-Pacific. Due to the integrated nature of the activities, the goodwill arising from the TDR acquisition (principally Croatia) has been transferred to the Western Europe cash-generating unit with effect from 1 January 2017. In 2017, goodwill was allocated for impairment testing purposes to 19 (2016: 18) individual cash-generating units – one in the United States (2016: nil), five in Asia-Pacific (2016: five), five in the Americas (2016: five), three in Western Europe (2016: three), three in EEMEA (2016: three) and two related to Next Generation Products (2016: two). 2017 2016 Carrying amount £m Pre-tax discount rate % Carrying amount £m Pre-tax discount rate % Cash Generating Unit RAI 33,062 7.7 – – Canada 2,367 7.5 2,420 8.2 Western Europe 4,033 7.3 3,891 8.6 Eastern Europe 980 8.1 967 8.8 South Africa 661 9.6 656 10.1 Australia 775 7.9 785 8.6 Singapore 591 6.6 598 7.2 Malaysia 431 8.3 425 8.6 Other 1,247 1,281 Total 44,147 11,023 The recoverable amounts of all cash-generating units have been determined on a value-in-use basis. The key assumptions for the recoverable amounts of all units are the budgeted volumes, operating margins and long-term growth rates, which directly impact the cash flows, and the discount rates used in the calculation. The long-term growth rate used is purely for the impairment testing of goodwill under IAS 36 and does not reflect long-term planning assumptions used by the Group for investment proposals or for any other assessments. Pre-tax discount rates of between 6.6% and 19.2% (2016: 7.2% and 20.0%) were used, based on the Group's weighted average cost of capital, taking into account the cost of capital and borrowings, to which specific market-related premium adjustments are made. These adjustments are derived from external sources and are based on the spread between bonds (or credit default swaps, or similar indicators) issued by the US or comparable governments and by the local government, adjusted for the Group’s own credit market risk. For ease of use and consistency in application, these results are periodically calibrated into bands based on internationally recognised credit ratings. The long-term growth rates and discount rates have been applied to the budgeted cash flows of each cash-generating unit. These cash flows have been determined by local management based on experience, specific market and brand trends, pricing expectations and costs, and have been endorsed by Group management as part of the consolidated Group budget. 9 Intangible assets continued The value-in-use calculations use cash flows based on detailed financial budgets prepared by management covering a one-year period extrapolated over a 10-year horizon with growth of 5% in year two. Cash flows for years three to 10 are extrapolated from year two cash flows for each relevant operating unit at 4% (2016: 4%) per annum, including 1% inflation (2016: 1% inflation), where after a total growth rate of 2% (2016: 2%) has been assumed. A 10-year horizon is considered appropriate based on the Group’s history of profit and cash growth, its well balanced portfolio of brands and the industry in which it operates. In some instances, such as recent acquisitions, start-up ventures or in other specific cases, the valuation is expanded to reflect the medium-term plan of the country or market management, spanning five years or beyond. If discounted cash flows for cash-generating units should fall by 10%, or the discount rate was increased at a post-tax rate of 1%, there would be no impairment. BAT Annual Report and Form 20-F 2017 1

Property, plant and equipment

Property, plant and equipment	12 Months Ended
	Dec. 31, 2017
Disclosure Of Property Plant And Equipment [Abstract]
Property, plant and equipment	Notes on the Accounts continued 10 Property, plant and equipment 2017 Freehold property £m Leasehold property £m Plant and equipment £m Assets in the course of construction £m Total £m 1 January Cost 1,163 239 5,022 725 7,149 Accumulated depreciation and impairment (360 ) (116 ) (2,991 ) (21 ) (3,488 ) Net book value at 1 January 803 123 2,031 704 3,661 Differences on exchange (33 ) (11 ) (117 ) (49 ) (210 ) Additions – acquisitions (note 24) 349 4 626 62 1,041 – separately acquired 23 – 47 753 823 Reallocations (5 ) 35 523 (553 ) – Depreciation (29 ) (7 ) (352 ) – (388 ) Impairment (1 ) (1 ) (10 ) – (12 ) Disposals (4 ) – (12 ) – (16 ) Net reclassifications as held-for-sale (17 ) – – – (17 ) 31 December Cost 1,455 267 5,552 917 8,191 Accumulated depreciation and impairment (369 ) (124 ) (2,816 ) – (3,309 ) Net book value at 31 December 1,086 143 2,736 917 4,882 10 Property, plant and equipment continued 2016 Freehold property £m Leasehold property £m Plant and equipment £m Assets in the course of construction £m Total £m 1 January Cost 944 256 3,976 617 5,793 Accumulated depreciation and impairment (288 ) (126 ) (2,343 ) (15 ) (2,772 ) Net book value at 1 January 656 130 1,633 602 3,021 Differences on exchange 79 6 263 77 425 Additions – separately acquired 13 4 168 470 655 Reallocations 76 6 358 (440 ) – Depreciation (20 ) (9 ) (308 ) – (337 ) Impairment - (5 ) (71 ) (4 ) (80 ) Disposals 3 (4 ) (11 ) (1 ) (13 ) Net reclassifications as held-for-sale (4 ) (5 ) (1 ) – (10 ) 31 December Cost 1,163 239 5,022 725 7,149 Accumulated depreciation and impairment (360 ) (116 ) (2,991 ) (21 ) (3,488 ) Net book value at 31 December 803 123 2,031 704 3,661 Net book value of assets held under finance leases for 2017 was £29 million (2016: £27 million). In 2017, the Group’s finance lease arrangements relate principally to lease of tobacco vending machines and building by the Group’s subsidiary in Japan and Peru respectively. For 2016, the Group's finance lease arrangements related principally to the lease of vehicles and tobacco vending machines by the Group's subsidiaries in Canada and Japan respectively. Assets held under finance leases are secured under finance lease obligations included in note 20. 10 Property, plant and equipment continued As explained in note 12, contributions to the British American Tobacco UK Pension Fund are secured by a charge over the Group’s Head Office (Globe House). Globe House is included in freehold property above with a carrying value of £187 million (2016: £188 million). 2017 £m 2016 £m Cost of freehold land within freehold property on which no depreciation is provided 253 202 Leasehold property comprises – net book value of long leasehold 104 80 – net book value of short leasehold 39 43 143 123 Contracts placed for future expenditure 85 29 BAT Annual Report and Form 20-F 2017 1

Investments in associates and j

Investments in associates and joint ventures	12 Months Ended
	Dec. 31, 2017
Investments In Subsidiaries Joint Ventures And Associates [Abstract]
Investments in associates and joint ventures	Notes on the Accounts continued 11 Investments in associates and joint ventures 2017 £m 2016 £m 1 January 9,507 6,938 Total comprehensive income (note 5) 23,316 3,662 Dividends (688 ) (1,024 ) Share buy-backs – (24 ) Additions 13 – Reclassification of Reynolds American Inc. (RAI) (30,521 ) – Other equity movements (50 ) (45 ) 31 December 1,577 9,507 Non-current assets 1,127 17,831 Current assets 1,019 2,439 Non-current liabilities (67 ) (8,552 ) Current liabilities (502 ) (2,211 ) 1,577 9,507 Reynolds American Inc. (In 2016, the Group's share of the market value was £27,275 million) – 8,051 ITC Ltd. (Group's share of the market value is £11,036 million (2016: £10,430 million)) 1,527 1,394 Other listed associates (Group's share of the market value is £184 million (2016: £142 million)) 18 17 Unlisted associates 32 45 1,577 9,507 On 25 July 2017, the Group announced the completion of the acquisition of the remaining 57.8% of RAI the Group did not already own. As at this date RAI ceased to be reported as an associate and has become a fully owned subsidiary. Accordingly, as at that date, RAI has been consolidated in accordance with IFRS 10 Consolidated Financial Statements The Effects of Changes in Foreign Exchange Rates Prior to 25 July 2017, the Group accounted for RAI as an associate, having concluded that it did not have de facto control of RAI because of the operation of the governance agreement between the Group and RAI which ensured that the Group did not have the practical ability to direct relevant activities of RAI. 11 Investments in associates and joint ventures continued During 2016, the Group entered into an agreement with Tisak’s parent Agrokor d.d. (Agrokor) to convert certain outstanding trading balances into long term loans and an additional shareholding in Tisak. As part of the agreement, Agrokor has the right to reacquire the additional shareholding in Tisak. As a consequence of this, while the Group has legal ownership of the additional shareholding, it does not consider the shares to provide any additional equity interest and continues to account for 26% of the equity of Tisak. In 2017, due to the financial difficulties of Agrokor and Tisak, the Group has recognised the legal ownership of Tisak and subsequently impaired this investment. This resulted in a charge of £27 million to the income statement that has been reported as an adjusting item in note 5. Included within the dividends amount of £688 million (2016: £1,024 million) are £477 million (2016: £773 million) attributable to dividends declared by RAI and £204 million (2016: £245 million) attributable to dividends declared by ITC. The principal associate undertaking of the Group is ITC Ltd. (ITC) as shown under associates undertakings and joint ventures. ITC Ltd. ITC is an Indian conglomerate based in Kolkata and maintains a presence in cigarettes, hotels, paper and packaging, agri-business and other fast-moving goods (e.g. confectionery, IT, branded apparel, personal care, greetings cards and safety matches). BAT’s interest in ITC is 29.71%. ITC prepares accounts on a quarterly basis with a 31 March year end. As permitted by IAS 28, results up to 30 September 2017 have been used in applying the equity method. This is driven by the availability of information at the half year, to be consistent with the treatment in the Group’s interim accounts. Any further information available after the date used for reporting purposes is reviewed and any material items adjusted for in the final results. The latest published information available is at 31 December 2017. 2017 £m 2016 £m Non-current assets 3,738 3,730 Current assets 3,089 2,834 Non-current liabilities (240 ) (258 ) Current liabilities (1,446 ) (1,643 ) 5,141 4,663 Group's share of ITC Ltd. (2017: 29.71%; 2016: 29.89%) 1,527 1,394 Reynolds American Inc. 2016 £m Non-current assets 34,046 Current assets 3,480 Non-current liabilities (20,089 ) Current liabilities (3,845 ) 13,592 Group's share of Reynolds American Inc. (42.2%) 5,733 Goodwill 2,318 Total Group's share of Reynolds American Inc. 8,051 1 BAT Annual Report and Form 20-F 2017

Retirement benefit schemes

Retirement benefit schemes	12 Months Ended
	Dec. 31, 2017
Disclosure Of Defined Benefit Plans [Abstract]
Retirement benefit schemes	Notes on the Accounts continued 12 Retirement benefit schemes The Group’s subsidiary undertakings operate around 190 retirement benefit arrangements worldwide. The majority of scheme members belong to defined benefit schemes, most of which are funded externally and many of which are closed to new entrants. The Group also operates a number of defined contribution schemes. The liabilities arising in the defined benefit schemes are determined in accordance with the advice of independent, professionally qualified actuaries, using the projected unit credit method. All schemes are formally valued at least every three years. The principal schemes are in the USA, UK, Germany, Canada, The Netherlands and Switzerland. Together schemes in these territories account for over 85% of the total obligations of the Group’s defined benefit schemes. These obligations consist mainly of final salary pension schemes which provide benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits provided depends on members’ length of service and their salary in the final years leading up to retirement. In addition, the Group operates several healthcare benefit schemes, of which the most significant are in the USA and Canada. The liabilities in respect of healthcare benefits are also assessed by qualified independent actuaries, applying the projected unit credit method. All of these arrangements, including funded schemes where formal trusts or equivalents are required, have been developed and are operated in accordance with local practices and regulations where applicable in the countries concerned. For example, in the USA, the main funded pension schemes are the Reynolds American Retirement Plan and the Retirement Income Plan for Certain Affiliates, and the main funded healthcare scheme is the B&W Tobacco Corporate Welfare and Fringe Benefit Plan, all of which are established with corporate trustees that are required to run the scheme in accordance with the Scheme’s rules and to comply with all relevant legislation, including the Employee Retirement Income Security Act 1974 and US trust law. Similarly, in the UK, the main pension scheme is the British American Tobacco UK Pension Fund, which is established under trust law and has a corporate trustee that is required to run the scheme in accordance with the Scheme’s Trust Deed and Rules and to comply with the Pension Scheme Act 1993, Pensions Act 1995, Pension Act 2004 and all the relevant legislation. Responsibility for the governance of the schemes across the Group, including investment decisions and contribution schedules, generally lies with the trustees. The trustees for each arrangement will usually consist of representatives appointed by both the sponsoring company and the beneficiaries. In the USA, the corporate trustees act as custodians with local management acting in a fiduciary capacity with regard to investment decisions, risk mitigation and administration of the arrangements. The majority of schemes are subject to local regulations regarding funding requirements. Contributions to defined benefit schemes are determined after consultation with the respective trustees and actuaries of the individual externally funded schemes and after taking into account regulatory requirements in each territory. Group’s contributions to pension schemes in 2018 are expected to be £241 million in total compared to £254 million in 2017. Contributions to the various funded schemes in the USA are agreed with the relevant corporate Trustee after taking account of statutory requirements including the Pensions Protection Act 2006 which requires company pension plans in the US to become fully funded by a methodology similar to the accounting requirements under U.S. GAAP. Through its subsidiaries in the USA, the Group intends to make significant regular contributions with the aim of achieving a long-term funding status of at least 90%. The Group contributed £83 million to its funded pension plans and £20 million to its funded postretirement plans since the acquisition of Reynolds American in July 2017. During 2018, the Group expects to contribute £86 million to its funded pension plans and £54 million to its funded postretirement plans. Contributions to the British American Tobacco UK Pension Fund for 2017 and 2016 were agreed with the Trustee as part of a recovery plan to include £30 million a year to cover ongoing service costs, with additional contributions to eliminate a funding shortfall. Additional contributions were Total contributions payable to the UK Pension Fund are secured by a charge over the Group’s Head Office (Globe House) up to a maximum of £150 million. The charge would be triggered in the event that the Group defaults on agreed contributions due to the Fund or if an insolvency event occurs with respect to the UK entity responsible for making the payments. The charge is due to be released in 2039 but may be released earlier by negotiation or if the assets of the Fund are sufficient to achieve certain funding levels. Under the rules of the scheme, any future surplus would be returnable to the Group by refund at the end of the life of the scheme. The funding commitment is therefore not considered onerous and in accordance with IFRIC 14 no additional liabilities or surplus restriction have been recognised in respect of this commitment. Payments made to pensioners by the operating companies in Germany, net of income on scheme assets, are deemed to be company contributions to the Contractual Trust Arrangements and are anticipated to be around £30 million in 2018 and £38 million per annum for the four years after that. Contributions to pension schemes in Canada, The Netherlands and Switzerland in total are anticipated to be around £18 million in 2018 and then £11 million per annum for the four years after that. The majority of benefit payments are from trustee administered funds, however, there are also a number of unfunded schemes where the sponsoring company meets the benefit payment obligation as it falls due. For unfunded schemes in the USA, UK and Canada, 39% of the liabilities reported at year end are expected to be settled by the Group within ten years, 29% between ten and twenty years, 19% between twenty and thirty years, and 13% thereafter. 12 Retirement benefit schemes continued The funded arrangements in the Group have policies on investment management, including strategies over a preferred long term investment profile, and schemes in certain territories including Canada and The Netherlands manage their bond portfolios to match the weighted average duration of scheme liabilities. For funded schemes in the USA, the Group 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 (typically U.S. government and investment grade corporate bonds) 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. In addition, the main scheme in the UK has a target investment strategy such that, by 31 December 2018, the scheme will have moved to 20% return-seeking assets and 80% risk-reducing assets. Investments are diversified by type of investment, by investment sector, and where appropriate by country. Through its defined benefit pension schemes and healthcare schemes, the Group is exposed to a number of risks, including: Asset volatility: The plan liabilities are calculated using discount rates set by reference to bond yields. If plan assets underperform this yield e.g. due to stock market volatility, this will create a deficit. However, most schemes hold a proportion of assets which are expected to outperform bonds in the long term, and the majority of schemes by value are subject to local regulation regarding funding deficits. Changes in bond yields: A Inflation risk: Some of the Group’s pension obligations are linked to inflation and higher inflation will lead to higher liabilities. Although, in most cases caps on the level of inflationary increases are in place in the scheme rules, while some assets and derivatives provide specific inflation protection. Life expectancy: The majority of the schemes’ obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans’ liabilities. Assumptions regarding mortality and mortality improvements are regularly reviewed in line with actuarial tables and scheme specific experience. The amounts recognised in the balance sheet are determined as follows: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Present value of funded scheme liabilities (11,542 ) (7,139 ) (326 ) (16 ) (11,868 ) (7,155 ) Fair value of funded scheme assets 12,157 7,264 193 14 12,350 7,278 615 125 (133 ) (2 ) 482 123 Unrecognised funded scheme surpluses (23 ) (18 ) – – (23 ) (18 ) 592 107 (133 ) (2 ) 459 105 Present value of unfunded scheme liabilities (535 ) (371 ) (622 ) (105 ) (1,157 ) (476 ) 57 (264 ) (755 ) (107 ) (698 ) (371 ) The above net liability is recognised in the balance sheet as follows: – retirement benefit scheme liabilities (1,065 ) (719 ) (756 ) (107 ) (1,821 ) (826 ) – retirement benefit scheme assets 1,122 455 1 – 1,123 455 57 (264 ) (755 ) (107 ) (698 ) (371 ) 12 Retirement benefit schemes continued The net liabilities of funded pension schemes by territory are as follows: Liabilities Assets Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m – US (5,022 ) – 4,640 – (382 ) – – UK (3,133 ) (3,529 ) 4,119 3,853 986 324 – Germany (998 ) (1,020 ) 945 872 (53 ) (148 ) – Canada (782 ) (796 ) 779 806 (3 ) 10 – Netherlands (769 ) (737 ) 819 777 50 40 – Switzerland (330 ) (370 ) 285 293 (45 ) (77 ) – Rest of Group (508 ) (687 ) 570 663 62 (24 ) Funded schemes (11,542 ) (7,139 ) 12,157 7,264 615 125 Of the Group’s unfunded pension schemes 47% The amounts recognised in the income statement are as follows: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Defined benefit schemes Service cost – current service cost 104 85 – 1 104 86 – past service cost/(credit) 11 (43 ) – (1 ) 11 (44 ) Net interest on the net defined benefit liability – interest on scheme liabilities 291 229 19 6 310 235 – interest on scheme assets (276 ) (230 ) (4 ) (1 ) (280 ) (231 ) – interest on unrecognised funded scheme surpluses 2 2 – – 2 2 132 43 15 5 147 48 Defined contribution schemes 68 53 – – 68 53 Total amount recognised in the income statement (note 3(a)) 200 96 15 5 215 101 The above charges are recognised within employee benefit costs in note 3(a) and include a charge of £12 million in 2017 (2016: £17 million credit; 2015: £16 million charge) in respect of settlements, past service costs and defined contribution costs reported as part of the restructuring costs charged in arriving at profit from operations 12 Retirement benefit schemes continued The movements in scheme liabilities are as follows: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Present value at 1 January 7,510 6,220 120 100 7,630 6,320 Differences on exchange (199 ) 574 (35 ) 22 (234 ) 597 Current service cost 105 88 2 1 107 89 Past service cost/(credit) 4 (44 ) – – 4 (44 ) Settlements 7 (33 ) – (1 ) 7 (34 ) Interest on scheme liabilities 292 238 19 6 311 244 Contributions by scheme members 3 4 – – 3 4 Benefits paid (523 ) (381 ) (31 ) (8 ) (554 ) (389 ) Acquisition of subsidiaries 5,211 – 882 – 6,093 – Actuarial (gains)/losses – arising from changes in demographic assumptions (418 ) (7 ) (8 ) – (426 ) (7 ) – arising from changes in financial assumptions 92 911 9 1 101 912 Experience gains (7 ) (61 ) (10 ) (1 ) (17 ) (62 ) Present value at 31 December 12,077 7,510 948 120 13,025 7,630 Changes in financial assumptions principally relate to discount rate movements in both years. Scheme liabilities by scheme membership: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Active members 1,928 1,358 69 22 1,997 1,380 Deferred members 1,394 1,306 3 2 1,397 1,308 Retired members 8,755 4,846 876 96 9,631 4,942 Present value at 31 December 12,077 7,510 948 120 13,025 7,630 Approximately 95% of scheme liabilities in both years relate to guaranteed benefits. 12 Retirement benefit schemes continued The movements in funded scheme assets are as follows: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Fair value of scheme assets at 1 January 7,264 6,076 14 10 7,278 6,086 Differences on exchange (170 ) 541 (7 ) 5 (177 ) 546 Settlements (1 ) (33 ) - – (1 ) (33 ) Interest on scheme assets 277 238 4 1 281 239 Company contributions 232 181 22 – 254 181 Contributions by scheme members 4 5 – – 4 5 Benefits paid (509 ) (360 ) (25 ) (1 ) (534 ) (361 ) Acquisition of subsidiaries 4,574 – 180 – 4,754 – Actuarial gains/(losses) 486 616 5 (1 ) 491 615 Fair value of scheme assets at 31 December 12,157 7,264 193 14 12,350 7,278 Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Equities ‒ listed 2,444 1,697 6 5 2,450 1,702 Equities ‒ unlisted 1,337 630 71 – 1,408 630 Bonds ‒ listed 5,272 3,948 14 4 5,286 3,952 Bonds ‒ unlisted 1,346 109 84 – 1,430 109 Other assets ‒ listed 682 403 9 – 691 403 Other assets ‒ unlisted 1,076 477 9 5 1,085 482 Fair value of scheme assets at 31 December 12,157 7,264 193 14 12,350 7,278 Scheme assets have been diversified into equities, bonds and other assets and are typically invested via fund investment managers into both pooled and segregated mandates of listed and unlisted equities and bonds. In the US pension plans, 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. Allowable investment types include domestic equity, international equity, global equity, emerging market equity, fixed income, real assets, private equity and absolute return. The range of allowable investment types utilised for pension assets provides enhanced returns and more widely diversifies the plan. In addition, certain scheme assets, including a portion of the assets held in the main UK pension scheme, are further diversified by investing in equities listed on non-UK stock exchanges via investment funds. In the above analysis investments via equity-based investment funds are shown under The actuarial gains and losses in both years principally relate to movements in the fair values of scheme assets and actual returns are stated net of applicable taxes and fund management fees. The fair values of listed scheme assets were derived from observable data including quoted market prices and other market data, including market values of individual segregated investments and of pooled investment funds where quoted. The fair values of unlisted assets were derived from cash flow projections of estimated future income after taking into account the estimated recoverable value of these assets. 12 Retirement benefit schemes continued The movements in the unrecognised scheme surpluses, recognised in other comprehensive income, are as follows: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2015 £m 2017 £m 2016 £m 2015 £m 2017 £m 2016 £m 2015 £m Unrecognised funded scheme surpluses at 1 January (18 ) (11 ) (13 ) – – – (18 ) (11 ) (13 ) Differences on exchange 3 (4 ) 3 – – – 3 (4 ) 3 Interest on unrecognised funded scheme surpluses (2 ) (2 ) (1 ) – – – (2 ) (2 ) (1 ) Movement in year (note 19) (6 ) (1 ) – – – – (6 ) (1 ) – Unrecognised funded scheme surpluses at 31 December (23 ) (18 ) (11 ) – – – (23 ) (18 ) (11 ) The principal actuarial assumptions (weighted to reflect individual scheme differences) used in the following principal countries are shown below. In both years, discount rates are determined by reference to normal yields on high quality corporate bonds at the balance sheet date. For countries where there is not a deep market in such corporate bonds, the yield on government bonds is used. 2017 2016 USA UK Germany Canada Netherlands Switzerland USA UK Germany Canada Netherlands Switzerland Rate of increase in salaries (%) 3.9 3.2 2.5 3.0 2.0 1.3 – 3.3 2.5 3.0 2.0 1.3 Rate of increase in pensions in payment (%) 2.5 3.2 1.8 Nil 1.2 Nil – 3.3 1.8 Nil 1.1 Nil Rate of increase in deferred pensions (%) – 2.2 1.8 Nil 1.2 – – 2.5 Nil Nil 1.1 – Discount rate (%) 3.7 2.5 1.9 3.3 2.0 0.6 – 2.6 1.7 3.7 1.9 0.6 General inflation (%) 2.5 3.2 1.8 2.0 2.0 1.0 – 3.3 1.8 2.0 2.0 1.0 2017 2016 USA UK Germany Canada Netherlands Switzerland USA UK Germany Canada Netherlands Switzerland Weighted average duration of liabilities (years) 11.3 16.9 13.7 11.0 17.8 13.5 – 18.2 14.0 11.2 18.3 13.4 For healthcare inflation in the US, the assumption is 7.0% (2016: n/a) and in Canada, the assumption is 5.0% (2016: 4.8%). For the remaining pension schemes, typical assumptions are that real salary increases will be from 0.5% to 4.0% (2016: 0% to 5.2%) per annum and discount rates will be from 0.5% to 10.0% (2016: 0% to 7.7%) above inflation. Pension increases, where allowed for, are generally assumed to be in line with inflation. 12 Retirement benefit schemes continued Mortality assumptions are subject to regular review. The principal schemes used the following tables: US UK 2017: 2016: 2017: 2016: RP-2017 mortality tables without collar or amounts adjusted projected with MP-2017 generational projection Not applicable S2PA (YOB) with the CMI (2016) improvement model with a 1.25% longterm improvement rate 91.5% S1NA (year of birth) table with the Continuous Mortality Investigation (2013) model with a 1.75% long-term improvement rate Germany Heubeck tables 2005G (both years) Canada CPM-2014 Private Table (both years) Netherlands AG Prognosetafel 2016 (both years) Switzerland 2017: LPP/BVG 2015 base table with CMI projection factors for mortality improvements with a 1.5% long-term improvement rate 2016: LPP/BVG 2015 Generational Based on the above, the weighted average life expectancy, in years, for mortality tables used to determine benefit obligations is as follows: US UK Germany Canada Netherlands Switzerland Male Female Male Female Male Female Male Female Male Female Male Female 31 December 2016 Member age 65 (current life expectancy) – – 23.8 26.4 19.1 23.2 21.3 23.7 20.6 24.7 22.3 24.4 Member age 45 (life expectancy at age 65) – – 26.5 29.2 21.8 25.7 22.4 24.7 23.1 26.9 24.2 26.3 31 December 2017 Member age 65 (current life expectancy) 20.7 22.7 22.7 24.2 19.3 23.3 21.4 23.8 20.8 24.8 21.7 23.7 Member age 45 (life expectancy at age 65) 22.3 24.2 24.3 25.5 21.9 25.8 22.5 24.8 23.3 27.0 23.5 25.5 Valuation of retirement benefit schemes involves judgements about uncertain future events. Sensitivities in respect of the key assumptions used to measure the principal pension schemes as at 31 December 2017 are set out below. These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation, with the exception of the sensitivity to inflation which incorporates the impact of certain correlating assumptions such as salary increases. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation, while asset values also change, and the impacts may offset to some extent. 1 year increase £m 1 year decrease £m 0.25 percentage point increase £m 0.25 percentage point decrease £m Average life expectancy – increase/(decrease) of scheme liabilities 373 (373 ) Rate of inflation – increase/(decrease) of scheme liabilities 191 (179 ) Discount rate – (decrease)/increase of scheme liabilities (363 ) 384 A one percentage point increase in healthcare inflation would increase healthcare scheme liabilities by £53 million, and a one percentage point decrease would decrease liabilities by £45 million. The income statement effect of this change in assumption is not material. 1 BAT Annual Report and Form 20-F 2017

Deferred tax

Deferred tax	12 Months Ended
	Dec. 31, 2017
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Abstract]
Deferred tax	13 Deferred tax Net deferred tax assets/(liabilities) comprise: Stock relief £m Excess of capital allowances over depreciation £m Tax losses £m Undistributed earnings of associates and subsidiaries £m Retirement benefits £m Trademarks £m Other temporary differences £m Total £m At 1 January 2017 31 (58 ) 89 (392 ) 117 (95 ) 92 (216 ) Differences on exchange 2 15 (6 ) 13 (12 ) 862 (22 ) 852 Subsidiaries acquired (note 24) (375 ) (234 ) – – 514 (28,091 ) 1,115 (27,071 ) Credited/(charged) to the income statement 180 19 30 138 10 66 (307 ) 136 Credited/(charged) relating to changes in tax rates 71 84 – – (194 ) 9,935 (276 ) 9,620 (Charged)/credited to other comprehensive income – – – – (171 ) – 38 (133 ) At 31 December 2017 (91 ) (174 ) 113 (241 ) 264 (17,323 ) 640 (16,812 ) At 1 January 2016 30 (132 ) 53 (255 ) 48 (108 ) 127 (237 ) Differences on exchange 6 (18 ) 13 (41 ) 4 (20 ) 17 (39 ) Subsidiaries acquired (note 24) – (6 ) – – – – – (6 ) (Charged)/credited to the income statement (5 ) 98 23 (96 ) 1 33 (58 ) (4 ) Credited to other comprehensive income – – – – 64 – 6 70 At 31 December 2016 31 (58 ) 89 (392 ) 117 (95 ) 92 (216 ) As part of the acquisition of RAI, the Group has to account for the assets and liabilities of the Reynolds American Group of companies at fair market value at the acquisition date of 25 July 2017, as disclosed in note 24. The increase in the net asset value versus the tax bases created net deferred tax liabilities, valued within the purchase price allocation process at the prevailing Federal and State corporation tax rate at the date of the acquisition. Subsequently on 22 December 2017, the Federal corporation tax rate was changed to 21% from 1 January 2018. This revised rate has been used to revalue the net deferred tax liabilities in the United States, reducing the liability leading to a credit in the income statement of £9,620 million. The prior year analysis table has been restated to reflect deferred tax relating to trademarks in a separate column and deferred tax on fair value losses/(gains) has been combined with other temporary differences. The net deferred tax liabilities are reflected in the Group balance sheet as follows: deferred tax asset of £317 million and deferred tax liability of £17,129 million (2016: deferred tax asset of £436 million and deferred tax liability of £652 million), after offsetting assets and liabilities where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred income taxes relate to the same fiscal authority. Deferred tax expected to be recovered within 12 months includes deferred tax assets of £244 million (2016: £119 million) and deferred tax liabilities of £369 million (2016: £372 million). 13 Deferred tax continued At the balance sheet date, the Group has not recognised a deferred tax asset in respect of unused tax losses of £ 301 616 At the balance sheet date, the Group has not recognised a deferred tax asset in respect of deductible temporary differences of £ nil 140 At the balance sheet date, the Group has unused tax credits of £80 million (2016: £80 million) which have no expiry date. No amount of deferred tax has been recognised in respect of these unused tax credits. At the balance sheet date, the aggregate amount of undistributed earnings of subsidiaries which would be subject to dividend withholding tax was £ 0.7 BAT Annual Report and Form 20-F 2017 1

Trade and other receivables

Trade and other receivables	12 Months Ended
	Dec. 31, 2017
Trade And Other Receivables [Abstract]
Trade and other receivables	Notes on the Accounts continued 14 Trade and other receivables 2017 £m 2016 £m Trade receivables 3,306 2,696 Loans and other receivables 1,214 1,619 Prepayments and accrued income 289 168 4,809 4,483 Current 4,053 3,884 Non-current 756 599 4,809 4,483 Included in loans and other receivables are £603 million of legal deposits. The Group has determined that these payments are recoverable on conclusion of ongoing appeals and the deposits have not been discounted. Legal deposits include £449 million (2016: £326 million) in respect of payments made by a Group subsidiary in relation to the Quebec Class Action, as detailed in note 28. While there is uncertainty over the timeframe of the appeal process, it is estimated that had discounting been applied the carrying value of the asset would have been reduced by approximately £21 million (2016: £20 million). Amounts receivable from related parties including associated undertakings are shown in note 27. Trade and other receivables have been reported in the balance sheet net of allowances as follows: 2017 £m 2016 £m Gross trade and other receivables 4,894 4,570 Allowance account (85 ) (87 ) Net trade and other receivables per balance sheet 4,809 4,483 The movements in the allowance account are as follows: 2017 £m 2016 £m 1 January 87 51 Differences on exchange 4 11 Provided in the year 16 26 Amounts reversed during the year (22 ) (1 ) 31 December 85 87 14 Trade and other receivables continued As at 31 December 2017, trade and other receivables of £189 million (2016: £60 million) were past their contractual payment date but not impaired. These relate to a number of external parties where there is no expectation of default. The aged analysis of these trade receivables is as follows: 2017 £m 2016 £m Less than three months 147 39 Between three and six months 12 11 Between six months and one year 20 7 Greater than one year 10 3 The Group holds bank guarantees, other guarantees and credit insurance in respect of some of the past due debtor balances. Trade and other receivables are predominantly denominated in the functional currencies of subsidiary undertakings apart from the following: US dollar: 1.4% (2016: 3.8%), UK sterling: 4.3% (2016: 5.4%), Euro: 1.5% (2016: 2.8%) and other currencies: 9.6% (2016: 3.8%). There is no material difference between the above amounts for trade and other receivables and their fair value due to the short-term duration of the majority of trade and other receivables as determined using discounted cash flow analysis. There is no concentration of credit risk with respect to trade receivables as the Group has a large number of internationally dispersed customers. 1 BAT Annual Report and Form 20-F 2017

Available-for-sale investments

Available-for-sale investments	12 Months Ended
	Dec. 31, 2017
Availableforsale Financial Assets [Abstract]
Available-for-sale investments	15 Available-for-sale investments 2017 £m 2016 £m 1 January 58 72 Differences on exchange – 10 Additions 90 4 Revaluations (27 ) – Disposals (14 ) (28 ) 31 December 107 58 Current 65 15 Non-current 42 43 107 58 The classification of these investments under the IFRS 13 fair value hierarchy is given in note 23. There is no material difference between the maturity profile of investments in the table above and the maturity profile on a gross contractual basis where the values in each year include the investments maturing in that year together with forecast interest receipts on all investments which are due for all or part of that year. Investments are all denominated in the functional currency of the subsidiary undertaking holding the investments.

Derivative financial instrument

Derivative financial instruments	12 Months Ended
	Dec. 31, 2017
Disclosure Of Financial Assets And Liabilities [Abstract]
Derivative financial instruments	Notes on the Accounts continued 16 Derivative financial instruments The fair values of derivatives are determined based on market data (primarily yield curves, implied volatilities and exchange rates) to calculate the present value of all estimated flows associated with each derivative at the balance sheet date. In the absence of sufficient market data, fair values would be based on the quoted market price of similar derivatives. The classification of these derivative assets and liabilities under the IFRS 13 fair value hierarchy is given in note 23. 2017 2016 Assets £m Liabilities £m Assets £m Liabilities £m Fair value hedges – interest rate swaps 97 14 179 14 – cross-currency swaps 263 – 261 – Cash flow hedges – interest rate swaps 1 – 2 – – cross-currency swaps 187 – 106 – – forward foreign currency contracts 82 73 120 118 Net investment hedges – forward foreign currency contracts 85 39 23 233 Held-for-trading* – interest rate swaps 68 77 71 90 – cross-currency swaps – – 173 174 – forward foreign currency contracts 35 31 36 39 Total 818 234 971 668 Current 228 155 375 549 Non-current 590 79 596 119 818 234 971 668 Derivatives – in respect of net debt 640 117 809 300 – other 178 117 162 368 818 234 971 668 * IFRS requires derivatives which do not meet the tests for hedge accounting under IAS 39 to be classified as instruments held-for-trading with fair value change included in the income statement. These derivatives principally consist of forward foreign currency contracts which have not been designated as hedges due to their value changes offsetting with other components of net finance costs relating to financial assets and financial liabilities. The Group do not use derivatives for speculative purposes. All derivatives are undertaken for risk management purposes. For cash flow hedges, the timing of expected cash flows is as follows: assets of £270 million (2016: £228 million) of which £73 million (2016: £99 million) is expected within one year and £165 million (2016: £106 million) beyond 5 years and liabilities of £73 million (2016: £118 million) of which £69 million (2016: £105 million) is expected within one year. The Group’s cash flow hedges are principally in respect of sales or purchases of inventory and certain debt instruments. A certain number of forward foreign currency contracts were used to manage the currency profile of external borrowings and are reflected in the currency table in note 20. Interest rate swaps have been used to manage the interest rate profile of external borrowings and are reflected in the re-pricing table in note 20. 16 Derivative financial instruments continued The tables below set out the maturities of the Group’s derivative financial instruments on an undiscounted contractual basis, based on spot rates. The maturity dates of all gross-settled derivative financial instruments are as follows: 2017 2016 Assets Liabilities Assets Liabilities Inflow £m Outflow £m Inflow £m Outflow £m Inflow £m Outflow £m Inflow £m Outflow £m Within one year – forward foreign currency contracts 8,874 (8,702 ) 5,929 (6,059 ) 7,168 (6,943 ) 11,419 (12,024 ) – cross-currency swaps 56 (97 ) – – 391 (534 ) 499 (354 ) Between one and two years – forward foreign currency contracts 339 (328 ) 229 (230 ) 1,152 (1,104 ) 571 (630 ) – cross-currency swaps 89 (135 ) – – 37 (36 ) – – Between two and three years – forward foreign currency contracts – – – – 24 (22 ) 13 (12 ) – cross-currency swaps 60 (108 ) – – 66 (69 ) – – Between three and four years – cross-currency swaps 1,812 (1,782 ) – – 35 (40 ) – – Between four and five years – cross-currency swaps 32 (62 ) – – 802 (770 ) – – Beyond five years – cross-currency swaps 2,623 (2,366 ) – – 1,429 (1,244 ) – – 13,885 (13,580 ) 6,158 (6,289 ) 11,104 (10,762 ) 12,502 (13,020 ) The maturity dates of net-settled derivative financial instruments, which primarily relate to interest rate swaps, are as follows: 2017 2016 Assets Inflow £m Liabilities Outflow £m Assets Inflow £m Liabilities Outflow £m Within one year 44 18 102 29 Between one and two years 34 5 71 15 Between two and three years 28 6 64 14 Between three and four years 26 6 46 13 Between four and five years 12 7 26 11 Beyond five years 28 51 40 22 172 93 349 104 1 BAT Annual Report and Form 20-F 2017

Inventories

Inventories	12 Months Ended
	Dec. 31, 2017
Classes Of Inventories [Abstract]
Inventories	17 Inventories 2017 £m 2016 £m Raw materials and consumables 3,027 2,230 Finished goods and work in progress 2,692 3,312 Goods purchased for resale 145 251 5,864 5,793 Inventories pledged as security for liabilities amount to £7 million (2016: £nil million). Write-offs taken to other operating expenses in the Group income statement comprise £114 million (2016: £127 million; 2015: £73 million), including amounts relating to restructuring costs.

Cash and cash equivalents

Cash and cash equivalents	12 Months Ended
	Dec. 31, 2017
Cash And Cash Equivalents [Abstract]
Cash and cash equivalents	18 Cash and cash equivalents 2017 £m 2016 £m Cash and bank balances 1,967 1,628 Cash equivalents 1,324 576 3,291 2,204 The carrying value of cash and cash equivalents approximates their fair value. Cash and cash equivalents are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below: 2017 £m 2016 £m Functional currency 2,842 1,748 US dollar 161 195 Euro 159 159 Other currency 129 102 3,291 2,204 In the Group cash flow statement, net cash and cash equivalents are shown after deducting bank overdrafts and accrued interest where applicable, as follows: 2017 £m 2016 £m Cash and cash equivalents as above 3,291 2,204 Less overdrafts and accrued interest (469 ) (553 ) Net cash and cash equivalents 2,822 1,651 Cash and cash equivalents include restricted amounts of £160 million (2016: £157 million), principally due to exchange control regulations in certain countries.

Capital and reserves _ reconcil

Capital and reserves – reconciliation of movement in total equity	12 Months Ended
	Dec. 31, 2017
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Abstract]
Capital and reserves – reconciliation of movement in total equity	19 Capital and reserves – reconciliation of movement in total equity Attributable to owners of the parent Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 1 January 2017 507 3,931 413 3,331 8,182 224 8,406 Comprehensive income and expense Profit for the year – – – 37,533 37,533 171 37,704 Differences on exchange – subsidiaries – – (3,085 ) – (3,085 ) (2 ) (3,087 ) – associates – – (923 ) – (923 ) – (923 ) Cash flow hedges – net fair value losses – – (263 ) – (263 ) (1 ) (264 ) – reclassified and reported in profit for the year – – 109 – 109 – 109 – reclassified and reported in net assets – – (16 ) – (16 ) – (16 ) Available-for-sale investments – net fair value losses in respect of subsidiaries – – (27 ) – (27 ) – (27 ) – net fair value gains in respect of associates net of tax – – 5 – 5 – 5 Net investment hedges – net fair value gains – – 425 – 425 – 425 – differences on exchange on borrowings – – (67 ) – (67 ) (1 ) (68 ) Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – 34 – 34 – 34 Retirement benefit schemes – – – net actuarial gains in respect of subsidiaries (note 12) – – – 832 832 1 833 – surplus recognition and minimum funding obligations in respect of subsidiaries (note 12) – – – (5 ) (5 ) (1 ) (6 ) – actuarial gains in respect of associates net of tax (note 5) – – – 25 25 – 25 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – (171 ) (171 ) – (171 ) Other changes in equity Employee share options – value of employee services – – – 105 105 – 105 – proceeds from shares issued – 5 – – 5 – 5 Dividends and other appropriations – ordinary shares (note 8) – – – (4,465 ) (4,465 ) – (4,465 ) – to non-controlling interests – – – – – (169 ) (169 ) Purchase of own shares – held in employee share ownership trusts – – – (205 ) (205 ) – (205 ) Shares issued – RAI acquisition (note 24(a)) 107 22,666 – – 22,773 – 22,773 Other movements – – – 3 3 – 3 31 December 2017 614 26,602 (3,395 ) 36,983 60,804 222 61,026 19 Capital and reserves – reconciliation of movement in total equity continued Attributable to owners of the parent Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 1 January 2016 507 3,927 (1,294 ) 1,754 4,894 138 5,032 Comprehensive income and expense Profit for the year – – – 4,648 4,648 191 4,839 Differences on exchange – subsidiaries – – 1,218 – 1,218 52 1,270 – associates – – 1,425 – 1,425 – 1,425 Cash flow hedges – net fair value gains – – 28 – 28 1 29 – reclassified and reported in profit for the year – – 38 – 38 – 38 – reclassified and reported in net assets – – (12 ) – (12 ) – (12 ) Available-for-sale investments – net fair value losses in respect of associates net of tax – – (10 ) – (10 ) – (10 ) Net investment hedges – net fair value losses – – (837 ) – (837 ) – (837 ) – differences on exchange on borrowings – – (124 ) – (124 ) – (124 ) Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – (19 ) – (19 ) – (19 ) Retirement benefit schemes – net actuarial losses in respect of subsidiaries (note 12) – – – (231 ) (231 ) 3 (228 ) – surplus recognition and minimum funding obligations in respect of subsidiaries (note 12) – – – – – (1 ) (1 ) – actuarial gains in respect of associates net of tax (note 5) – – – 20 20 – 20 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – 36 36 – 36 Other changes in equity Employee share options – value of employee services – – – 71 71 – 71 – proceeds from shares issued – 4 – – 4 – 4 Dividends and other appropriations – ordinary shares (note 8) – – – (2,910 ) (2,910 ) – (2,910 ) – to non-controlling interests – – – – – (156 ) (156 ) Purchase of own shares – held in employee share ownership trusts – – – (64 ) (64 ) – (64 ) Non-controlling interests - acquisitions (note 24(c)) – – – 4 4 (4 ) – Other movements – – – 3 3 – 3 31 December 2016 507 3,931 413 3,331 8,182 224 8,406 19 Capital and reserves – reconciliation of movement in total equity continued Attributable to owners of the parent Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 1 January 2015 507 3,923 (498 ) 1,578 5,510 304 5,814 Comprehensive income and expense Profit for the year – – – 4,290 4,290 232 4,522 Differences on exchange – subsidiaries – – (953 ) – (953 ) (53 ) (1,006 ) – associates – – 336 – 336 – 336 Cash flow hedges – net fair value losses – – (98 ) – (98 ) (1 ) (99 ) – reclassified and reported in profit for the year – – 14 – 14 1 15 – reclassified and reported in net assets – – (45 ) – (45 ) – (45 ) Available-for-sale investments – net fair value gains in respect of subsidiaries – – 14 – 14 – 14 – reclassified and reported in profit for the year – – (10 ) – (10 ) – (10 ) – net fair value gains in respect of associates net of tax – – 1 – 1 – 1 Net investment hedges – net fair value losses – – (118 ) – (118 ) – (118 ) – differences on exchange on borrowings – – 42 – 42 – 42 Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – 21 – 21 – 21 Retirement benefit schemes – net actuarial gains in respect of subsidiaries (note 12) – – – 283 283 – 283 – actuarial gains in respect of associates net of tax (note 5) – – – 3 3 – 3 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – (23 ) (23 ) – (23 ) Other changes in equity Employee share options – value of employee services – – – 50 50 – 50 – proceeds from shares issued – 4 – – 4 – 4 Dividends and other appropriations – ordinary shares (note 8) – – – (2,770 ) (2,770 ) – (2,770 ) – to non-controlling interests – – – – – (238 ) (238 ) Purchase of own shares – held in employee share ownership trusts – – – (46 ) (46 ) – (46 ) Non-controlling interests - acquisitions (note 24(c)) – – – (1,642 ) (1,642 ) (107 ) (1,749 ) Other movements – – – 31 31 – 31 31 December 2015 507 3,927 (1,294 ) 1,754 4,894 138 5,032 19 Capital and reserves – reconciliation of movement in total equity continued (a) Share premium account, capital redemption reserves and merger reserves comprise: Share premium account £m Capital redemption reserves £m Merger reserves £m Total £m 31 December 2017 87 101 26,414 26,602 31 December 2016 82 101 3,748 3,931 31 December 2015 78 101 3,748 3,927 1 January 2015 74 101 3,748 3,923 The share premium account includes the difference between the value of shares issued and their nominal value. The increase of £5 million (2016: £4 million; 2015: £4 million) relates solely to ordinary shares issued under the Company’s share option schemes. On the purchase of own shares as part of the share buy-back programme for shares which are cancelled, a transfer is made from retained earnings to the capital redemption reserve equivalent to the nominal value of shares purchased. Purchased shares which are not cancelled are classified as treasury shares and presented as a deduction from total equity. In 1999, shares were issued for the acquisition of the Rothmans International B.V. Group, and the difference between the fair value of shares issued and their nominal value of £3,748 million was credited to merger reserves. On 25 July 2017, the Group announced the completion of the acquisition of the remaining 57.8% of RAI not already owned by the Group. Shares were issued for the acquisition and the difference between the fair value of shares issued and their nominal value of £22,666 million was credited to merger reserves. Total equity attributable to owners of the parent is stated after deducting the cost of treasury shares which include £4,845 million (2016: £4,845 million; 2015: £4,845 million) for shares repurchased and not cancelled and £350 million (2016: £208 million; 2015 £204 million) in respect of the cost of own shares held in employee share ownership trusts. During 2014, 23 million shares were bought back at a cost of £795 million, excluding transaction costs of £5 million. The share buy-back programme was suspended from 30 July 2014. As at 31 December 2017, treasury shares include 6,750,597 (2016: 5,137,602; 19 Capital and reserves – reconciliation of movement in total equity continued Other movements in shareholders’ funds principally relate to the release of treasury shares as a result of the exercise of share options. Called up share capital Ordinary shares of 25p each Number of shares £m Allotted and fully paid 1 January 2017 2,027,019,508 506.75 Changes during the year – share option schemes 213,144 0.05 – Issue of shares RAI acquisition 429,045,762 107.26 31 December 2017 2,456,278,414 614.06 Allotted and fully paid 1 January 2016 2,026,866,724 506.71 Changes during the year – share option schemes 152,784 0.04 31 December 2016 2,027,019,508 506.75 Allotted and fully paid 1 January 2015 2,026,693,029 506.67 Changes during the year – share option schemes 173,695 0.04 31 December 2015 2,026,866,724 506.71 (b) Information on the principal components of non-controlling interests is provided in note 29. 19 Capital and reserves – reconciliation of movement in total equity continued Movements in other reserves and retained earnings (which are after deducting treasury shares) shown above comprise: Retained earnings Translation reserve £m Hedging reserve £m Available- for-sale reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 1 January 2017 (382 ) 4 39 179 573 413 (5,053 ) 8,384 Comprehensive income and expense Profit for the year – – – – – – – 37,533 Differences on exchange – subsidiaries (3,085 ) – – – – (3,085 ) – – – associates (923 ) – – – – (923 ) – – Cash flow hedges – net fair value losses – (263 ) – – – (263 ) – – – reclassified and reported in profit for the year – 109 – – – 109 – – – reclassified and reported in net assets – (16 ) – – – (16 ) – – Available-for-sale investments – net fair value losses in respect of subsidiaries – – (27 ) – – (27 ) – – – net fair value gains in respect of associates net of tax – – 5 – – 5 – – Net investment hedges – net fair value gains 425 – – – – 425 – – – differences on exchange on borrowings (67 ) – – – – (67 ) – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – 34 – – – 34 – – Retirement benefit schemes – net actuarial gains in respect of subsidiaries (note 12) – – – – – – – 832 – surplus recognition and minimum funding obligations respect of subsidiaries (note 5) – – – – – – – (5 ) – actuarial gains in respect of associates net of tax (note 5) – – – – – – – 25 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – – – – – (171 ) Other changes in equity Employee share options – value of employee services – – – – – – – 105 Dividends and other appropriations – ordinary shares (note 8) – – – – – – – (4,465 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (205 ) – Other movements – – – – – – 63 (60 ) 31 December 2017 (4,032 ) (132 ) 17 179 573 (3,395 ) (5,195 ) 42,178 19 Capital and reserves – reconciliation of movement in total equity continued Retained earnings Translation reserve £m Hedging reserve £m Available- for-sale reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 1 January 2016 (2,062 ) (33 ) 49 179 573 (1,294 ) (5,049 ) 6,803 Comprehensive income and expense Profit for the year – – – – – – – 4,648 Differences on exchange – subsidiaries 1,218 – – – – 1,218 – – – associates 1,425 – – – – 1,425 – – Cash flow hedges – net fair value gains – 28 – – – 28 – – – reclassified and reported in profit for the year – 38 – – – 38 – – – reclassified and reported in net assets – (12 ) – – – (12 ) – – Available-for-sale investments – net fair value losses in respect of associates net of tax – – (10 ) – – (10 ) – – Net investment hedges – net fair value losses (837 ) – – – – (837 ) – – – differences on exchange on borrowings (124 ) – – – – (124 ) – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) (2 ) (17 ) – – – (19 ) – – Retirement benefit schemes – net actuarial losses in respect of subsidiaries (note 12) – – – – – – – (231 ) – actuarial gains in respect of associates net of tax (note 5) – – – – – – – 20 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – – – – – 36 Other changes in equity Employee share options – value of employee services – – – – – – – 71 Dividends and other appropriations – ordinary shares (note 8) – – – – – – – (2,910 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (64 ) – Non-controlling interests - acquisitions (note 24(c)) – – – – – – – 4 Other movements – – – – – – 60 (57 ) 31 December 2016 (382 ) 4 39 179 573 413 (5,053 ) 8,384 19 Capital and reserves – reconciliation of movement in total equity continued Retained earnings Translation reserve £m Hedging reserve £m Available- for-sale reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 1 January 2015 (1,369 ) 75 44 179 573 (498 ) (5,073 ) 6,651 Comprehensive income and expense Profit for the year – – – – – – – 4,290 Differences on exchange – subsidiaries (953 ) – – – – (953 ) – – – associates 336 – – – – 336 – – Cash flow hedges – net fair value losses – (98 ) – – – (98 ) – – – reclassified and reported in profit for the year – 14 – – – 14 – – – reclassified and reported in net assets – (45 ) – – – (45 ) – – Available-for-sale investments – net fair value gains in respect of subsidiaries – – 14 – – 14 – – – reclassified and reported in profit for the year – – (10 ) – – (10 ) – – – net fair values gains in respect of associates net of tax – – 1 – – 1 – – Net investment hedges – net fair value losses (118 ) – – – – (118 ) – – – differences on exchange on borrowings 42 – – – – 42 – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss – 21 – – – 21 – – Retirement benefit schemes – net actuarial losses in respect of subsidiaries (note 12) – – – – – – – 283 – actuarial losses in respect of associates net of tax (note 5) – – – – – – – 3 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss – – – – – – – (23 ) Other changes in equity Employee share options – value of employee services – – – – – – – 50 Dividends and other appropriations – ordinary shares (note 8) – – – – – – – (2,770 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (46 ) – Non-controlling interests - acquisitions (note 24(c)) – – – – – – – (1,642 ) Other movements – – – – – – 70 (39 ) 31 December 2015 (2,062 ) (33 ) 49 179 573 (1,294 ) (5,049 ) 6,803 The translation reserve is explained in the accounting policy on foreign currencies in note 1. The hedging reserve and the available-for-sale reserve are explained in the accounting policy on financial instruments in note 1. The revaluation reserve relates to the acquisition of the cigarette and snus business of ST in 2008. Of the amounts released from the hedging reserve during the year, a gain of £52 million (2016: £142 million loss; 2015: £50 million loss) and a loss of £27 million (2016: £2 million loss; 2015: £22 million gain) were reported within revenue and raw materials and consumables respectively, together with a gain of £4 million (2016: £6 million loss; 2015: £8 million loss) reported in other operating expenses, £nil million (2016: £9 million gain; 2015: £nil million) reported in other operating income and a gain of £80 million (2016: £93 million gain; 2015: £18 million gain) reported within net finance costs. In 2017, included within the £923 million of differences on exchange in respect of associates is debit of £545 million in respect of foreign exchange recycled from reserves as a result of the divestment of the RAI associate. This has been reported in the Group’s share of post-tax results of associates and joint ventures . 19 Capital and reserves – reconciliation of movement in total equity continued Other reserves comprise: (a) £483 million which arose in 1998 from merger accounting in a Scheme of Arrangement and Reconstruction whereby British American Tobacco p.l.c. acquired the entire share capital of B.A.T Industries p.l.c. and the share capital of that company’s principal financial services subsidiaries was distributed, so effectively demerging them; and (b) In the Rothmans transaction, convertible redeemable preference shares were issued as part of the consideration. The discount on these shares was amortised by crediting other reserves and charging retained earnings. The £90 million balance in other reserves comprises the accumulated balance in respect of the preference shares converted during 2004. The tax attributable to components of other comprehensive income is as follows: 2017 £m 2016 £m 2015 £m Translation reserve Net investment hedges – net fair value gains/(losses) – (2 ) – – (2 ) – Hedging reserve Cash flow hedges – net fair value losses/(gains) 34 (11 ) 38 – reclassified and reported in profit for the year – (6 ) (17 ) 34 (17 ) 21 Retained earnings – actuarial (gains)/losses in respect of subsidiaries (171 ) 36 (23 ) (171 ) 36 (23 ) Owners of the parent (137 ) 17 (2 ) Non-controlling interests – – – Total tax recognised in other comprehensive income for the year (note 6(f)) (137 ) 17 (2 ) 1 BAT Annual Report and Form 20-F 2017

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2017
Disclosure Of Detailed Information About Borrowings [Abstract]
Borrowings	Notes on the Accounts continued 20 Borrowings Currency Maturity dates Interest rates 2017 £m 2016 £m Eurobonds Euro 2019 to 2045 0.4% to 4.9% 8,585 7,704 Euro 2018 to 2021 3m EURIBOR +50bps 1,326 341 UK sterling 2019 to 2055 1.8% to 7.3% 4,680 4,241 US dollar 2019 1.6% 482 527 Swiss franc 2021 to 2026 0.6% to 1.4% 498 526 Bonds issued pursuant to Rules under the US Securities Act (as amended) US dollar 2018 to 2047 1.9% to 8.1% 25,545 4,472 US dollar 2018 to 2022 USD 3m LIBOR + 51bps to 88bps 1,665 405 Bonds and notes 42,781 18,216 Commercial paper 1,200 254 Other loans 4,466 110 Bank loans 512 336 Bank overdrafts 469 553 Finance leases 22 26 49,450 19,495 20 Borrowings continued The interest on the commercial paper referred to in the table above is based on USD LIBOR plus a margin ranging between 19 and 38 basis points and EURIBOR plus a margin ranging between 10 and 24 basis points (2016: USD LIBOR plus a margin ranging between 22 and 77 basis points and EURIBOR plus a margin ranging between 20 and 29 basis points). Current borrowings per the balance sheet include interest payable of £445 million at 31 December 2017 (2016: £229 million). Included within borrowings are £6,690 million (2016: £7,157 million) of borrowings subject to fair value hedges where their amortised cost has been increased by £208 million (2016: £295 million) in the table above. The fair value of borrowings is estimated to be £50,449 million (2016: £20,592 million). £43,780 million (2016: £19,126 million) has been calculated using quoted market prices and is within level 1 of the fair value hierarchy. £6,669 million (2016: £1,466 million) has been calculated based on discounted cash flow analysis and is within level 2 of the fair value hierarchy. The amounts secured on Group assets as at 31 December 2017 is £159 million (2016: £26 million), including finance leases of £20 million (2016: £26 million) and amounts secured on certain inventory of the Group (see note 17). Borrowings are repayable as follows: Per balance sheet Contractual gross maturities 2017 £m 2016 £m 2017 £m 2016 £m Within one year 5,423 3,007 6,381 3,587 Between one and two years 2,344 1,391 3,609 1,870 Between two and three years 7,011 1,756 8,141 2,220 Between three and four years 2,913 1,577 4,034 1,961 Between four and five years 6,857 1,925 7,836 2,292 Beyond five years 24,902 9,839 34,842 12,560 49,450 19,495 64,843 24,490 The contractual gross maturities in each year include the borrowings maturing in that year together with forecast interest payments on all borrowings which are outstanding for all or part of that year. Borrowings are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below: Functional currency £m US dollar £m UK sterling £m Euro £m Canadian dollar £m Other currencies £m Total £m 31 December 2017 Total borrowings 32,580 4,789 450 10,837 – 794 49,450 Effect of derivative financial instruments – cross-currency swaps 3,903 16 (450 ) (3,613 ) – (243 ) (387 ) – forward foreign currency contracts (1,142 ) 922 – (388 ) 215 388 (5 ) 35,341 5,727 – 6,836 215 939 49,058 31 December 2016 Total borrowings 5,088 5,524 – 8,066 – 817 19,495 Effect of derivative financial instruments – cross-currency swaps 1,866 18 – (1,895 ) – (255 ) (266 ) – forward foreign currency contracts (770 ) 524 – (547 ) 220 497 (76 ) 6,184 6,066 – 5,624 220 1,059 19,153 20 Borrowings continued The exposure to interest rate changes when borrowings are re-priced is as follows: Within 1 year £m Between 1-2 years £m Between 2-3 years £m Between 3-4 years £m Between 4-5 years £m Beyond 5 years £m Total £m 31 December 2017 Total borrowings 12,516 2,325 4,321 1,941 4,332 24,015 49,450 Effect of derivative financial instruments – interest rate swaps 2,995 – (554 ) (533 ) (222 ) (1,686 ) – – cross-currency swaps 1,287 (17 ) – (775 ) – (882 ) (387 ) 16,798 2,308 3,767 633 4,110 21,447 49,063 31 December 2016 Total borrowings 3,753 624 1,756 1,576 1,925 9,861 19,495 Effect of derivative financial instruments – interest rate swaps 2,241 (202 ) (250 ) (1,119 ) (755 ) 85 – – cross-currency swaps 1,884 – – (17 ) – (2,133 ) (266 ) 7,878 422 1,506 440 1,170 7,813 19,229 Finance lease liabilities per the balance sheet and on a contractual gross maturity basis are payable as follows: Finance lease liabilities per the balance sheet and on a contractual gross maturity basis with £10 million (2016: £10 million) repayable within one year and £12 million (2016: £16 million) repayable between one and five years. The Group’s undrawn committed borrowing facilities (see note 23) total £5,400 million (2016: £3,212 million) with £2,400 million (2016: £nil) maturing within one year and with £3,000 million expiring between three and four years (2016: £3,000 million expiring between four and five years). The Group defines net debt as follows: 2017 £m 2016 £m Borrowings* 49,450 19,495 Derivatives in respect of net debt: – assets (note 16) (640 ) (809 ) – liabilities (note 16) 117 300 Cash and cash equivalents (note 18) (3,291 ) (2,204 ) Current available-for-sale investments (note 15) (65 ) (15 ) 45,571 16,767 * Borrowings as at 31 December 2017 include £947 million in respect of the purchase price adjustments relating to the acquisition of Reynolds. 20 Borrowings continued The movements in net debt are presented below: 2017 £m Opening balance Subsidiaries acquired Cash flow Foreign exchange, accrued interest and other Closing balance Borrowings 19,495 11,203 20,024 (1,272 ) 49,450 Derivatives in respect of net debt: – assets (note 16) (809 ) – 106 63 (640 ) – liabilities (note 16) 300 – (380 ) 197 117 Cash and cash equivalents (note 18) (2,204 ) (1,288 ) 57 144 (3,291 ) Current available-for-sale investments (note 15) (15 ) – (44 ) (6 ) (65 ) 16,767 9,915 19,763 (874 ) 45,571 2016 £m Opening balance Cash flow Foreign exchange, accrued interest and other Closing balance Borrowings 17,001 (252 ) 2,746 19,495 Derivatives in respect of net debt: – assets (note 16) (373 ) 258 (694 ) (809 ) – liabilities (note 16) 164 (22 ) 158 300 Cash and cash equivalents (note 18) (1,963 ) 157 (398 ) (2,204 ) Current available-for-sale investments (note 15) (35 ) 22 (2 ) (15 ) 14,794 163 1,810 16,767 BAT Annual Report and Form 20-F 2017 1

Provisions for liabilities

Provisions for liabilities	12 Months Ended
	Dec. 31, 2017
Disclosure Of Other Provisions [Abstract]
Provisions for liabilities	Notes on the Accounts continued 21 Provisions for liabilities Restructuring of existing businesses £m Employee related benefits £m Fox River £m Other provisions £m Total £m 1 January 2017 190 40 163 400 793 Differences on exchange 4 (3 ) – (22 ) (21 ) Subsidiaries acquired – – – 42 42 Provided in respect of the year 172 15 – 95 282 Utilised during the year (208 ) (12 ) (25 ) (98 ) (343 ) 31 December 2017 158 40 138 417 753 Analysed on the balance sheet as – current 87 24 22 266 399 – non-current 71 16 116 151 354 158 40 138 417 753 Restructuring of existing businesses £m Employee related benefits £m Fox River £m Other provisions £m Total £m 1 January 2016 89 38 160 282 569 Differences on exchange 15 8 – 46 69 Provided in respect of the year 120 14 20 150 304 Utilised during the year (34 ) (20 ) (17 ) (78 ) (149 ) 31 December 2016 190 40 163 400 793 Analysed on the balance sheet as – current 86 27 19 275 407 – non-current 104 13 144 125 386 190 40 163 400 793 The restructuring provisions relate to the restructuring and integration costs incurred and reported as adjusting items in the income statement. The principal restructuring activities in 2017 and 2016 are as described in note 3(e). While some elements of the non-current provisions of £71 million will unwind over several years, as termination payments are made over extended periods in some countries, it is estimated that approximately 35% will unwind within five years. Employee related benefits mainly relate to employee benefits other than post-employment benefits. The principal components of these provisions are gratuity and termination awards, and ‘jubilee’ payments due after a certain service period. It is estimated that approximately 22% of the non-current provisions of £16 million will unwind within five years. A provision of £274 million was made in 2011 for a potential claim under a 1998 settlement agreement entered into by a Group subsidiary in respect of the clean-up of sediment in the Fox River. On 30 September 2014, the Group, NCR, Appvion and Windward Prospects entered into a funding agreement; the details of this agreement are explained in note 28. This agreement led to payments of £18 million in 2017 (2016: £6 million). In addition, the Group incurred legal costs of £7 million (2016: £11 million), which were also charged against the provision. In light of the conclusion of the funding agreement, the sums that the Group agreed to pay thereunder, as well as the available information in relation to the extent of the clean-up related costs, the Group reviewed the Fox River provision and increased the provision by £20 million in 2016 owing to the significant devaluation of the GBP against the USD. It is expected that the non-current provision will unwind within five years. 21 Provisions for liabilities continued On 10 February 2017, a decision was delivered on the further hearing related to a payment of dividends by Windward to Sequana in May 2009. Further details are provided in note 28. Other provisions comprise balances set up in the ordinary course of general business that cannot be classified within the other categories, such as sales returns and onerous contracts, together with amounts in respect of supplier, excise and other disputes. The nature of the amounts provided in respect of disputes is such that the extent and timing of cash flows are difficult to estimate and the ultimate liability may vary from the amounts provided. Amounts provided above are shown net of reversals of unused provisions which include reversals of £7 million (2016: £41 million) for restructuring of existing businesses, £5 million (2016: £2 million) for employee benefits and £49 million (2016: £61 million) for other provisions. 1 BAT Annual Report and Form 20-F 2017

Trade and other payables

Trade and other payables	12 Months Ended
	Dec. 31, 2017
Trade And Other Current Payables [Abstract]
Trade and other payables	22 Trade and other payables 2017 £m 2016 £m Trade payables 2,298 1,281 Duty, excise and other taxes 3,577 4,573 Accrued charges and deferred income 1,746 1,140 FII GLO deferred income (note 6(b)) 963 963 Social security and other taxation 50 21 Sundry payables 1,271 397 9,905 8,375 Current 8,847 7,335 Non-current 1,058 1,040 9,905 8,375 Accrued charges and deferred income include £8 million of deferred income (2016: £19 million) and £16 million (2016: £8 million) in respect of interest payable. FII GLO deferred income of £963 million relates to receipts in 2015, in respect of the Franked Investment Income Government Litigation Order (see note 6(b)). Amounts payable to related parties including associated undertakings are shown in note 27. There is no material difference between the above amounts for trade and other payables and their fair value due to the short-term duration of the majority of trade and other payables, as determined using discounted cash flow analysis. Trade and other payables are predominantly denominated in the functional currencies of subsidiary undertakings with less than 5% in other currencies (2016: less than 5%).

Financial instruments and risk

Financial instruments and risk management	12 Months Ended
	Dec. 31, 2017
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract]
Financial instruments and risk management	23 Financial instruments and risk management Management of financial risks One of the principal responsibilities of Treasury is to manage the financial risks arising from the Group’s underlying operations. Specifically Treasury manages, within an overall policy framework set by the Group’s Main Board and Corporate Finance Committee (CFC), the Group’s exposure to funding and liquidity, interest rate, foreign exchange and counterparty risks. The Group’s treasury position is monitored by the CFC which meets regularly throughout the year and is chaired by the Group Finance Director. The approach is one of risk reduction within an overall framework of delivering total shareholder return. The Group defines capital as net debt (see note 20) and equity (see note 19). The only externally imposed capital requirement for the Group is interest cover as described under interest rate risk below. The Group assesses its financial capacity by reference to cash flow, net debt and interest cover. Group policies include a set of financing principles and key performance indicators including the monitoring of credit ratings, interest cover and liquidity. These provide a framework within which the Group’s capital base is managed and, in particular, the policies on dividends (as a percentage of long-term sustainable earnings) and share buy-back are decided. The key objective of the financing principles is to appropriately balance the interests of equity and debt holders in driving an efficient financing mix for the Group. The Group’s average cost of debt in 2017 is 3.3% (2016: 3.1%). The Group manages its financial risks in line with the classification of its financial assets and liabilities in the Group's balance sheet and related notes. The Group’s management of specific risks is dealt with as follows: 23 Financial instruments and risk management continued Liquidity risk The Treasury function is responsible for raising finance for the Group, managing the Group’s cash resources and financial risks arising from underlying operations. All of these activities are carried out under defined policies, procedures and limits. The Group targets an average centrally managed debt maturity of at least five years with no more than 20% of centrally managed debt maturing in a rolling 12-month period. As at 31 December 2017, the average centrally managed debt maturity was 9.2 years (2016: 8.2 years) and the peak maturity of centrally managed debt maturing in a rolling 12-month period was 13.2% (2016: 18.1%). In March and April 2017, the Group arranged short term bilateral facilities with core relationship banks for a total amount of approximately £1.6 billion. These facilities provided an alternative source of cost-effective short-term funding for the Group and all matured prior to year-end 2017. In June 2017, the Group repaid US $600 1.25 US$500 . In July 2017, following the shareholder approvals of acquisition of RAI, the Group utilised its US$25 billion acquisition facility provided by a syndicate of relationship banks, comprising US$15 billion and US$5 billion bridge facilities with one and two year maturities respectively. In addition, the acquisition facility included two US$2.5 billion term loans with maturity in 2020 and 2022 respectively. In August 2017, the bridge facilities were refinanced in the US and European capital markets. Eight USD denominated bonds were issued pursuant to Rule 144A with registration rights totalling US$17.25 billion. The issue comprised of two bonds totalling US$3.25 billion maturing in August 2020, two bonds totalling US$3 billion maturing in August 2022, one US$2.5 billion maturing in August 2024, one US$3.5 billion bond maturing in August 2027, one US$2.5 billion bond maturing in August 2037 and one US$2.5 billion bond maturing in August 2047. Four series of bonds were issued pursuant to the EMTN programme and comprised of a £450 million bond maturing in August 2025 and three euro denominated bonds totalling €3.1 billion, comprising of a €1.1 billion bond maturing in August 2021, a €750 million bond maturing in November 2023 and a €1.25 billion bond maturing in January 2030. Additionally, the Group replaced its existing £3 billion revolving credit facility maturing in 2021 with a new two-tranche £6 billion revolving credit facility. This consists of a 364-day revolving credit facility of £3 billion (with a one-year extension and a one-year term out option), and a £3 billion revolving credit facility maturing in 2021. At 31 December 2017, £600 million was drawn down (2016: £ The Group has also increased the EMTN programme from £15 billion to £25 billion and increased its US and European commercial paper programmes from US$3 billion to US$4 billion and from £1 billion to £3 billion, respectively, to accommodate the liquidity needs of the enlarged Group. It is Group policy that sources of short-term funds (including issuance under the Group’s commercial paper programmes) are backed by undrawn committed lines of credit and cash. Commercial paper is issued by B.A.T. International Finance p.l.c. and B.A.T Capital Corporation and guaranteed by British American Tobacco p.l.c. At 31 December 2017, £1,200 million commercial paper was outstanding (2016: £254 million). The Group utilises cash pooling and zero balancing bank account structures in addition to intercompany loans and borrowings to mobilise cash efficiently within the Group. The key objectives of Treasury in respect of cash and cash equivalents are to protect their principal value, to concentrate cash at the centre to minimise the required long-term debt issuance and to optimise the yield earned. The amount of debt issued by the Group is determined by forecasting the net debt requirement after the mobilisation of cash. 23 Financial instruments and risk management continued The Group continues to target a solid investment-grade credit rating. In October 2016, following the proposed offer to acquire the remaining 57.8% of Reynolds American Inc. not already own by the Group, Moody’s placed the rating (A3) under review for downgrade. S&P also placed the credit rating (A-) on Credit Watch with negative implications. Following announcement of an agreement in January 2017, Moody’s and S&P revised the Group’s rating to Baa2 and BBB+ with stable outlook respectively. The Group intends to follow disciplined deleveraging post completion of the transaction and is seeking to recover to Baa1/BBB+ in the medium term. The Group is confident of its continued ability to successfully access the debt capital markets. As part of its short-term cash management, the Group invests in a range of cash and cash equivalents, including money market funds, which are regarded as highly liquid and are not exposed to significant changes in fair value. These are kept under continuous review as described in the credit risk section below. At 31 December 2017, cash and cash equivalents include £668 million invested in money market funds (2016: £193 million). Subsidiary companies are funded by share capital and retained earnings, loans from the central finance companies on commercial terms, or through local borrowings by the subsidiaries in appropriate currencies. All contractual borrowing covenants have been met and none of them is expected to inhibit the Group’s operations or funding plans. Currency risk The Group is subject to exposure on the translation of the net assets of foreign currency subsidiaries and associates into its reporting currency, sterling. The Group’s primary balance sheet translation exposures are to the US dollar, Canadian dollar, euro, Danish krone, Swiss franc, South African rand, Russian rouble, Brazilian real, Australian dollar, Malaysian ringgit, Singaporean dollar and Indian Rupees. These exposures are kept under continuous review. The Group's policy on borrowings is to broadly match the currency of these borrowings with the currency of cash flows arising from the Group's underlying operations. Within this overall policy, the Group aims to minimise all balance sheet translation exposure where it is practicable and cost-effective to do so through matching currency assets with currency borrowings. The main objective of these policies is to protect shareholder value by increasing certainty and minimising volatility in earnings per share. At 31 December 2017, the currency profile of the Group’s gross debt, after taking into account derivative contracts, was 62% US dollar (2016: 31%), 14% euro (2016: 29%), 0% Canadian dollar (2016: 1%), 20% sterling (2016: 28%), and 4% other currencies (2016: 11%). The Group faces currency exposures arising from the translation of profits earned in foreign currency subsidiaries and associates and joint arrangements; these exposures are not normally hedged. Exposures also arise from: (i) foreign currency denominated trading transactions undertaken by subsidiaries. These exposures comprise committed and highly probable forecast sales and purchases, which are offset wherever possible. The remaining exposures are hedged within the Treasury policies and procedures with forward foreign exchange contracts and options, which are designated as hedges of the foreign exchange risk of the identified future transactions; and (ii) forecast dividend flows from subsidiaries to the centre. To ensure cash flow certainty, the Group enters into forward foreign exchange contracts which are designated as net investment hedges of the foreign exchange risk arising from the investments in these subsidiaries. IFRS 7 requires a sensitivity analysis that shows the impact on the income statement and on items recognised directly in other comprehensive income of hypothetical changes of exchange rates in respect of non-functional currency financial assets and liabilities held across the Group. All other variables are held constant although, in practice, market rates rarely change in isolation. Financial assets and liabilities held in the functional currency of the Group’s subsidiaries, as well as non-financial assets and liabilities and translation risk, are not included in the analysis. The Group considers a 10% strengthening or weakening of the A 10% strengthening of functional currencies against non-functional currencies would result in pre-tax profit being £14 million lower (2016: £2 million higher; 2015: £3 million lower) and items recognised directly in other comprehensive income being £148 million higher (2016: £413 million higher; 2015: £326 million higher). A 10% weakening of functional currencies against non-functional currencies would result in pre-tax profit being £4 million higher (2016: £4 million lower; 2015: £2 million higher) and items recognised directly in other comprehensive income being £148 million lower (2016: £505 million lower; 2015: £398 million lower). The exchange sensitivities on items recognised directly in other comprehensive income relate to hedging of certain net asset currency positions in the Group, as well as on cash flow hedges in respect of future transactions, but does not include sensitivities in respect of exchange on non-financial assets or liabilities. Interest rate risk The objectives of the Group’s interest rate risk management policy are to lessen the impact of adverse interest rate movements on the earnings, cash flow and economic value of the Group and to safeguard against any possible breach of its financial covenants. Additional objectives are to minimise the cost of hedging and the associated counterparty risk. 23 Financial instruments and risk management c ontinued The Group targets an interest cover ratio, as calculated under its key central banking facilities, of greater than 5 and for 2017 it is 7.8 times (2016: 12.2 times; 2015: 11.6 times). The only externally imposed capital requirement the Group has is in respect of its centrally managed banking facilities, which require a gross interest cover of at least 4.5 times. In order to manage its interest rate risk, the Group maintains both floating rate and fixed rate debt. The Group sets targets (within overall guidelines) for the desired ratio of floating to fixed rate debt on a net basis (at least 50% fixed on a net basis in the short to medium term); market conditions and the strategy are reviewed by the Corporate Finance Committee on a regular basis. At 31 December 2017, the relevant ratios of floating to fixed rate borrowings were 25:75 (2016: 26:74) on a gross basis and 19:81 (2016: 15:85) on a net basis. Underlying borrowings are arranged on both a fixed rate and a floating rate basis and, where appropriate, the Group uses derivatives, primarily interest rate swaps, to vary the fixed and floating mix. The interest rate profile of liquid assets is taken into account in determining the net interest rate exposure. IFRS 7 requires a sensitivity analysis that shows the impact on the income statement and on items recognised directly in other comprehensive income of hypothetical changes of interest rates in respect of financial assets and liabilities of the Group. All other variables are held constant although, in practice, market rates rarely change in isolation. For the purposes of this sensitivity analysis, financial assets and liabilities with fixed interest rates are not included. The Group considers a 100 basis point change in interest rates a reasonably possible change except where rates are less than 100 basis points. In these instances it is assumed that the interest rates increase by 100 basis points and decrease to zero for the purpose of performing the sensitivity analysis. The impact is calculated with reference to the financial asset or liability held as at the year-end, unless this is unrepresentative of the position during the year. A 100 basis point increase in interest rates would result in pre-tax profit being £108 million lower (2016: £37 million lower; 2015: £65 million lower). A 100 basis point decrease in interest rates, or less where applicable, would result in pre-tax profit being £77 million higher (2016: £16 million higher; 2015: £40 million higher). The effect of these interest rate changes on items recognised directly in other comprehensive income is not material in either year. Credit risk The Group has no significant concentrations of customer credit risk. Subsidiaries have policies in place requiring appropriate credit checks on potential customers before sales commence. The process for monitoring and managing credit risk once sales to customers have been made varies depending on local practice in the countries concerned. Certain territories have bank guarantees, other guarantees or credit insurance provided in the Group’s favour in respect of Group trade receivables, the issuance and terms of which are dependent on local practices in the countries concerned. All derivatives are subject to ISDA agreements or equivalent documentation. Cash deposits and other financial instruments give rise to credit risk on the amounts due from the related counterparties. Generally the Group aims to transact with counterparties with strong investment grade credit ratings. However, the Group recognises that due to the need to operate over a large geographic footprint, this will not always be possible. Counterparty credit risk is managed on a global basis by limiting the aggregate amount and duration of exposure to any one counterparty, taking into account its credit rating. The credit ratings of all counterparties are reviewed regularly. The Group ensures that it has sufficient counterparty credit capacity of requisite quality to undertake all anticipated transactions throughout its geographic footprint, while at the same time ensuring that there is no geographic concentration in the location of counterparties. With the following exceptions, the maximum exposure to the credit risk of financial assets at the balance sheet date is reflected by the carrying values included in the Group’s balance sheet. In 2014, the Group entered into a guarantee arrangement in respect of the borrowings of the non-controlling interest in relation to the capital injection made to the Group’s Algerian business. The maximum exposure under the arrangement would be £3 million (2016: £4 million). In addition, the Group has entered into short term risk participation agreements in relation to certain leaf supply arrangements and the maximum exposure under these would be £96 million (2016: £105 million). Price risk The Group is exposed to equity price risk on equity investments held by the Group, which are included in available-for-sale investments on the consolidated balance sheet, but the quantum of such is not material. Hedge accounting In order to qualify for hedge accounting, the Group is required to document prospectively the relationship between the item being hedged and the hedging instrument. The Group is also required to demonstrate an assessment of the relationship between the hedged item and the hedging instrument, which shows that the hedge will be highly effective on an ongoing basis. This effectiveness testing is repeated periodically to ensure that the hedge has remained, and is expected to remain highly effective. 23 Financial instruments and risk management c ontinued Fair value estimation The fair values of financial assets and liabilities with maturities of less than one year, other than derivatives, are assumed to approximate their book values. For other financial instruments which are measured at fair value in the balance sheet, the basis for fair values is described below. Fair value hierarchy The following table presents the Group's financial assets and liabilities that are measured at fair value in accordance with IFRS 13 classification hierarchy: 2017 2016 Level 1 £m Level 2 £m Level 3 £m Total £m Level 1 £m Level 2 £m Level 3 £m Total £m Assets at fair value Available-for-sale investments (note 15) 91 – 16 107 15 – 43 58 Derivatives relating to – interest rate swaps (note 16) – 166 – 166 – 252 – 252 – cross-currency swaps (note 16) – 450 – 450 – 540 – 540 – forward foreign currency contracts (note 16) – 202 – 202 – 179 – 179 Assets at fair value 91 818 16 925 15 971 43 1,029 Liabilities at fair value Derivatives relating to – interest rate swaps (note 16) – 91 – 91 – 104 – 104 – cross-currency swaps (note 16) – – – – – 174 – 174 – forward foreign currency contracts (note 16) – 143 – 143 – 390 – 390 Liabilities at fair value – 234 – 234 – 668 – 668 Level 2 financial instruments are not traded in an active market, but the fair values are based on quoted market prices, broker/dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The Group’s level 2 financial instruments include OTC derivatives. 23 Financial instruments and risk management continued Netting arrangements of derivative financial instruments The gross fair value of derivative financial instruments as presented in the Group balance sheet, together with the Group's rights of offset associated with recognised financial assets and recognised financial liabilities subject to enforceable master netting arrangements and similar agreements, is summarised as follows: 2017 2016 Amount presented in the Group balance sheet* £m Related amounts not offset in the Group balance sheet £m Net amount £m Amount presented in the Group balance sheet* £m Related amounts not offset in the Group balance sheet £m Net amount £m Financial Assets – Derivative Financial Instruments (note 16) 818 (211 ) 607 971 (502 ) 469 Financial Liabilities – Derivative Financial Instruments (note 16) (234 ) 211 (23 ) (668 ) 502 (166 ) 584 – 584 303 – 303 * No financial instruments have been offset in the Group balance sheet. The Group is subject to master netting arrangements in force with financial counterparties with whom the Group trades derivatives. The master netting arrangements determine the proceedings should either party default on their obligations. In case of any event of default: the non-defaulting party will calculate the sum of the replacement cost of outstanding transactions and amounts owed to it by the defaulting party. If that sum exceeds the amounts owed to the defaulting party, the defaulting party will pay the balance to the non-defaulting party. If the sum is less than the amounts owed to the defaulting party, the non-defaulting party will pay the balance to the defaulting party. BAT Annual Report and Form 20-F 2017 1

Business combinations, disposal

Business combinations, disposals and other changes in the Group	12 Months Ended
	Dec. 31, 2017
Disclosure Of Business Combinations [Abstract]
Business combinations, disposals and other changes in the Group	Notes on the Accounts continued 24 Business combinations, disposals and other changes in the Group (a) Reynolds American Inc. (“RAI”) On 25 July 2017, the Group announced the completion of the acquisition of the remaining 57.8% of Reynolds American Inc. not already owned by the Group for a consideration of £41.8 billion. RAI ceased to be reported as an associate and has been consolidated as a wholly owned subsidiary from the acquisition date. RAI shareholders received, for each share of RAI common stock, US$29.44 in cash, without interest, and 0.5260 BAT ordinary shares represented by BAT ADSs listed on the New York Stock Exchange. Management anticipate that the acquisition of RAI and subsequent integration into the enlarged Group creates a stronger, truly global tobacco and Next Generation Products (“NGP”) entity benefiting from utilising the best talent from both organisations to deliver sustained long-term profit growth and returns. The enlarged Group will have a balanced presence in high growth emerging markets and high profitability developed markets, combined with direct access to the attractive US market, and a portfolio of strong, growing global brands, bringing together ownership of Newport, Kent and Pall Mall. In accordance with IFRS 3, the step-acquisition of RAI has been accounted for as if the Group has contributed its previously held equity interest in RAI at fair value as part of the consideration for acquiring 100% of the net assets of RAI. The difference between the fair value and the carrying value of the previously held equity interest has been recognised as a gain in the income statement. 24 Business combinations, disposals and other changes in the Group continued The goodwill of £34,280 million on the acquisition of RAI, stated at the exchange rates ruling at the date of the transaction, arises as follows: Fair value £m Intangible assets 75,482 Property, plant and equipment 1,039 Deferred tax assets 293 Trade and other receivables 145 Inventories 1,751 Income tax asset 200 Cash and cash equivalents 1,285 Borrowings (11,197 ) Retirement benefit liabilities (1,339 ) Deferred tax liabilities (27,358 ) Other provisions for liabilities and charges (42 ) Trade and other payables (2,516 ) Income tax liability (108 ) Net identifiable assets acquired 37,635 Goodwill 34,280 Total 71,915 Consideration paid to Reynolds shareholders (57.8%) 41,770 Value attributable to BAT shareholding (42.2%) 30,145 Total 71,915 The goodwill of £34,280 million on the acquisition of the business represents a strategic premium to enter the United States market as well as synergies and cost savings that are anticipated to be realised post-acquisition. Included in the fair value of consideration paid to RAI shareholders is £22,828 million of non-cash consideration of which £22,773 million arises from the issue of BAT ordinary shares (note 19). Acquisition related costs of £130 million (2016: £11 million) have been expensed as part of other operating expenses within restructuring and integration costs (note 3(e)). In addition, the Group incurred £153 million of financing costs related to the acquisition (note 4(b)), and the Group’s share of costs net of tax incurred by Reynolds American as an associate was £33 million (note 5(a)). In the period from 25 July 2017 to 31 December 2017 the acquired business contributed revenue of £4,211 million and a profit from operations of £1,448 million. If the acquisition had occurred on 1 January 2017, before accounting for anticipated synergies and restructuring benefits, it is currently estimated that Group revenue would have been £25,749 million and Group profit from operations would have been £8,576 million for the 12 months to 31 December 2017. These amounts have been estimated based on RAI’s US GAAP results for the period prior to acquisition, adjusted to reflect changes arising from differences in accounting policies and accounting bases, following the procedures outlined in note 2, and are after charging £243 million for amortisation of acquired intangibles, £465 million in respect of the release of fair value uplifts on inventory and £125 million in respect of restructuring and integration costs. (b) Other acquisitions and changes in the Group During 2017, 2016 and 2015, the Group acquired certain businesses and other tobacco assets as noted below. The financial impact of these transactions to the Group were immaterial individually and in aggregate. Except as noted, there were no material differences between the fair value and book values of net assets acquired in business combinations. On 4 January 2017, the Group completed the acquisition of 100% of Winnington Holding AB, a Swedish manufacturer of “white” snus, for a purchase price of £31 million, of which £8 million is contingent on post-acquisition targets being met. Goodwill of £8 million and brands and similar intangibles of £28 million were recognised. On 5 April 2017, the Group acquired the business and certain assets of Must Have Limited (trading as ViP Electronic Cigarette (“ViP”)), a company in administration. ViP is one the largest e-cigarette retailers in the UK with a large point of sale network. The assets acquired, including goodwill of £1 million, intellectual property and other intangibles of £9 million, and other assets, were purchased for a total consideration of £12 million. On 5 May 2017, the Group acquired certain tobacco assets, including a distribution company, Express Logistic and Distribution EOOD, from Bulgartabac Holding AD in Bulgaria. The assets acquired, including provisional goodwill of £22 million, brands and other intangibles of £95 million, and other assets, were purchased for a total consideration of £110 million, of which £28 million is contingent upon future performance in the market. On 1 August 2017, the Group acquired certain tobacco assets, including a distribution company, Tobacco Press d.o.o. Mostar, from Fabrika Duhana Sarajevo d.d in Bosnia-Herzegovina. The assets acquired, including goodwill of £2 million, brands and other intangibles of £39 million, and other assets, were purchased for a total consideration of £39 million. 24 Business combinations, disposals and other changes in the Group c ontinued On 20 April 2016, the Group completed the acquisition of 100% of Ten Motives Limited and 10 Motives Limited, a UK based e-cigarette business. The fair value of consideration payable was £56 million, of which £6 million is contingent on post-acquisition targets being met. The fair values and book values of net assets acquired were not materially different except for the recognition of trademarks and similar intangibles of £33 million. Goodwill of £21 million arising on this transaction represents a strategic premium to increase the Group’s share of the UK non-tobacco market. On 30 May 2015, the Group signed an agreement to acquire TDR and other tobacco and retail assets from Adris Grupa d.d. for a total enterprise value of €550 million. The transaction was completed on 30 September 2015. Part of the consideration is contingent upon certain targets being met post-acquisition, and £5 million of this was paid in January 2017. On 22 September 2015, the Group announced the agreement to acquire 100% of the CHIC Group from private shareholders and the transaction concluded on 30 December 2015. The fair value of the consideration payable was £82 million, of which £30 million is contingent on achievement of certain post-acquisition targets. £6 million of this was paid during 2016 and £13 million during 2017. The fair value and book values of net assets acquired were not materially different except for the recognition of trademarks and similar intangibles of £45 million and the recognition of a deferred tax liability of £8 million. Goodwill of £40 million arising on this transaction represents a strategic premium to enter the non-tobacco market. In addition, on 17 November 2015, the Group acquired 100% of Blue Nile Cigarette Company Limited from a private shareholder. The fair value of the consideration payable was £45 million of which £8 million is contingent on achievement of certain post-acquisition targets. Subsequent payments in respect of this was £1 million in 2016 and £5 million in 2017. The fair value and book values of net assets acquired were not materially different except for the recognition of trademarks and similar intangibles of £34 million. Goodwill of £7 million arising on this transaction represents a strategic premium to enter this market and acquire a manufacturing base in Sudan. (c) Non-controlling interests IPRESS d.o.o. During 2017, the Group acquired the remaining 49% interest in IPRESS d.o.o.(see note 27). Souza Cruz S.A. On 16 October 2015, the Group announced that it had concluded the auction related to its public tender offer in Brazil to acquire up to all of the 24.7% of Souza Cruz shares not currently owned by the Group and to delist the company. As at 31 December 2015 the Group owned 99.1% of Souza Cruz. The cost of acquiring these shares up to end of December 2015 was £1,660 million. The compulsory acquisition of the remaining minority shares was approved on 5 February 2016, with Souza Cruz becoming a wholly-owned subsidiary as at that date. The cost of acquiring the remaining shares was £70 million. BAT Chile Operaciones S.A. During 2015, the Group acquired a further 0.2% interest in BAT Chile Operaciones S.A. at a cost of £1 million. This increased the Group's shareholding to 99%. A further 0.01% interest was acquired during 2017. BAT Central America S.A. During 2015, the Group acquired a further 9% interest in BAT Central America S.A. at a cost of £16 million. This increased the Group's shareholding to approximately 88%. This transaction is shown as a £14 million reduction to reserves attributable to the owners of the parent and a £2 million reduction in reserves attributable to non-controlling interests in note 19. (d) Associates and joint ventures Reynolds American Inc. (“RAI”) On 12 June 2015 the Group invested US$4.7 billion (£3.0 billion) of cash into RAI to maintain its 42% equity position in the enlarged business, as part of RAI’s acquisition of Lorillard Inc. (e) Other acquisitions Twisp Proprietary Limited On 21 December 2017, the Group signed an agreement to acquire 100% of the share capital of Twisp Propriety Limited, a South African e-cigarette / nicotine vapour company. Completion of the proposed acquisition is conditional upon South African anti-trust approval and other conditions, and is expected to complete by mid-2018. BAT Annual Report and Form 20-F 2017 1

Share-based payments

Share-based payments	12 Months Ended
	Dec. 31, 2017
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Abstract]
Share-based payments	Notes on the Accounts continued 25 Share-based payments The Group operates a number of share-based payment arrangements of which the two principal ones are: Long-Term Incentive Plan (LTIP) Nil-cost options exercisable after three years from date of grant with a contractual life of ten years. Payout is subject to performance conditions based on earnings per share (40% of grant (2016: 40%; 2015: 50%)), operating cash flow (20% of grant (2016: 20%; 2015: 0%)), total shareholder return (20% of grant (2016: 20%; 2015: 25%)) and net turnover (20% of grant (2016: 20%; 2015: 25%)). Total shareholder return combines the share price and dividend performance of the Company by reference to one comparator group. Participants are not entitled to dividends prior to the exercise of the options. A cash equivalent dividend accrues through the vesting period and is paid on vesting. Both equity and cash-settled LTIPs were granted in March of 2017 (2016: May; 2015: March). Following the acquisition of RAI on 25 July 2017, underlying RAI shares for LTIPs were replaced with B.A.T American Depositary Shares “ADS”. LTIP for ADSs are measured against the performance conditions of RAI at the maximum of 150% at the vesting date. Equity settled LTIPs were granted by RAI on 1 January 2017 with options exercisable after 3 years from the date of grant with the payment made no later than 90 days from date of vesting. Participants are not entitled to dividends prior to exercise of the options. Deferred Share Bonus Scheme (DSBS) Free ordinary shares released three years from date of grant and may be subject to forfeit if a participant leaves employment before the end of the three year holding period. Participants receive a separate payment equivalent to a proportion of the dividend payment during the holding period. Both equity and cash-settled deferred shares are granted in March each year. The Group also has a number of other arrangements which are not material for the Group and these are as follows: Sharesave Scheme (SAYE) Options granted in March each year from 2011 onwards (previously November until 2009 and no options were granted during 2010) by invitation at a 20% discount to the market price. Options to this equity-settled scheme are exercisable at the end of a three year or five year savings contract. Participants are not entitled to dividends prior to the exercise of the options. The maximum amount that can be saved by a participant in this way is £6,000 in any tax year. Share Reward Scheme (SRS) and International Share Reward Scheme (ISRS) Free shares granted in April each year (maximum £3,600 in 2017 (2016: £3,600; 2015: £3,000)) under the equity-settled scheme are subject to a three year holding period. Participants receive dividends during the holding period which are reinvested to buy further shares. Partnership Share Scheme Open to all eligible employees, where employees can allocate part of their pre-tax salary to purchase shares in British American Tobacco p.l.c. The maximum amount that can be allocated in this way to any individual is £1,800 in any tax year. The shares purchased are held in a UK-based trust and are normally capable of transfer to participants tax free after a five year holding period. Share-based payment expense The amounts recognised in the income statement in respect of share-based payments were as follows: 2017 2016 2015 Equity- settled £m Cash- settled £m Equity- settled £m Cash- settled £m Equity- settled £m Cash- settled £m LTIP (note (a)) 56 3 25 6 1 3 DSBS (note (b)) 42 9 40 7 44 7 Other schemes 7 – 6 – 5 – Total recognised in the income statement (note 3(a)) 105 12 71 13 50 10 Share-based payment liability The Group issues to certain employees cash-settled share-based payments that require the Group to pay the intrinsic value of these share-based payments to the employee at the date of exercise. The Group has recorded liabilities in respect of vested and unvested grants at the end of 2017 and 2016: 2017 2016 Vested £m Unvested £m Vested £m Unvested £m LTIP 0.3 9.1 1.1 8.9 DSBS 0.3 11.6 0.3 11.3 Total liability 0.6 20.7 1.4 20.2 25 Share-based payments c ontinued (a) Long-Term incentive Plan Details of the movements for the equity and cash-settled LTIP scheme during the years ended 31 December 2017 and 31 December 2016, were as follows: 2017 2016 Equity-settled Number of options in thousands Cash-settled Number of options in thousands Equity-settled Number of options in thousands Cash-settled Number of options in thousands Outstanding at start of year 5,337 407 5,225 414 Granted during the period 1,690 152 1,772 139 Acquired from RAI 904 – - - Exercised during the period (746 ) (65 ) (262 ) (77 ) Forfeited during the period (1,155 ) (116 ) (1,398 ) (69 ) Outstanding at end of year 6,030 378 5,337 407 Exercisable at end of year 653 7 148 23 6,030,000 outstanding shares for the year ended 31 December 2017 includes 891,677 shares which are related to RAI LTIP from which 327,463 are exercisable at the end of the year. The weighted average British American Tobacco p.l.c. share price at the date of exercise for share options exercised during the period was £51.95 (2016: £45.80; 2015: £35.39) for equity-settled and £52.08 (2016: £47.00; 2015: £35.52) for cash-settled options. The weighted average British American Tobacco p.l.c. share price for ADS on New York Stock Exchange at the date of exercise for share options exercised during the period relating to equity-settled RAI LTIP was £46.32. The outstanding shares for the year ended 31 December 2017 had a weighted average remaining contractual life of 8.1 years (2016: 8.2 years; 2015: 8.2 years) for the equity-settled scheme, 2.17 years for RAI equity-settled scheme, and 8.3 years (2016: 7.9 years; 2015: 7.9 years) for the cash-settled share-based payment arrangements. (b) Deferred Share Bonus Scheme Details of the movements for the equity and cash-settled DSBS scheme during the years ended 31 December 2017 and 31 December 2016, were as follows: 2017 2016 Equity-settled Number of options in thousands Cash-settled Number of options in thousands Equity-settled Number of options in thousands Cash-settled Number of options in thousands Outstanding at start of year 3,225 423 3,395 451 Granted during the period 1,079 136 1,316 148 Exercised during the period (1,267 ) (165 ) (1,395 ) (161 ) Forfeited during the period (75 ) (12 ) (91 ) (15 ) Outstanding at end of year 2,962 382 3,225 423 Exercisable at end of year 61 5 35 4 The weighted average British American Tobacco p.l.c. share price at the date of exercise for share options exercised during the financial year was £52.52 (2016: £42.26; 2015: £35.05) for equity-settled and £52.50 (2016: £41.97; 2015: £34.42) for cash-settled options. The outstanding shares for the year ended 31 December 2017 had a weighted average remaining contractual life of 1.3 years (2016: 1.3 years; 2015: 1.2 years) for the equity-settled scheme and 1.2 years (2016: 1.2 years; 2015: 1.3 years) for the cash-settled scheme. 25 Share-based payments c ontinued Valuation assumptions Assumptions used in the Black-Scholes models to determine the fair value of share options at grant date were as follows: 2017 2016 LTIP DSBS LTIP DSBS Expected volatility (%) 18 18 18 17 Average expected term to exercise (years) 3.5 3.0 3.5 3.0 Risk-free rate (%) 0.3 0.3 0.6 0.6 Expected dividend yield (%) 3.2 3.2 3.6 3.7 Share price at date of grant (£) 52.11 52.11 42.34 40.08 Fair value at grant date (£) 41.04 47.27 26.53 35.82 Market condition features were incorporated into the Monte-Carlo models for the total shareholder return elements of the LTIP, in determining fair value at grant date. Assumptions used in these models were as follows: 2017 2016 LTIP LTIP Average share price volatility FMCG comparator group (%) 19 19 Average correlation FMCG comparator group (%) 31 36 Fair values determined from the Black-Scholes and Monte-Carlo models use assumptions revised at the end of each reporting period for cash-settled share-based payment arrangements. The expected British American Tobacco p.l.c. share price volatility was determined taking account of the return index (the share price index plus the dividend reinvested) over a five year period. The FMCG share price volatility and correlation was also determined over the same periods. The average expected term to exercise used in the models has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural conditions, forfeiture and historical experience. The risk-free rate has been determined from market yield curves for government gilts with outstanding terms equal to the average expected term to exercise for each relevant grant. The expected dividend yield was determined by calculating the yield from the last two declared dividends divided by the grant share price. In addition to these valuation assumptions, LTIP awards contain earnings per share performance conditions. As these are non-market performance conditions they are not included in the determination of fair value of share options at the grant date, however they are used to estimate the number of awards expected to vest. This pay-out calculation is based on expectations published in analysts' forecasts. 1 BAT Annual Report and Form 20-F 2017

Group employees

Group employees	12 Months Ended
	Dec. 31, 2017
Number And Average Number Of Employees [Abstract]
Group employees	26 Group employees The average number of persons employed by the Group and its associates during the year, including Directors, was 91,402 (2016: 85,335). 2017 Number 2016 Number United States 2,168 - Asia-Pacific 13,293 13,002 Americas 15,929 14,691 Western Europe 16,644 13,444 EEMEA 12,559 11,569 Subsidiary undertakings 60,593 52,706 Associates 30,809 32,629 91,402 85,335 Included within the employee numbers for Western Europe are certain employees in the UK in respect of central functions. Some of the costs of these employees are allocated or charged to the various regions and markets in the Group. The average number of employees in respect of RAI have been included in the associate employees up to the date of acquisition (see note 24), after which, they have been included in the United States region. BAT Annual Report and Form 20-F 2017 1

Related party disclosures

Related party disclosures	12 Months Ended
	Dec. 31, 2017
Disclosure Of Transactions Between Related Parties [Abstract]
Related party disclosures	27 Related party disclosures The Group has a number of transactions and relationships with related parties, as defined in IAS 24 Related Party Disclosures As explained in note 24, during the year the Group completed the acquisition of the remaining 57.8% of RAI not already owned. This transaction has not been included in the table below. Transactions and balances with associates relate mainly to the sale and purchase of cigarettes and tobacco leaf. Amounts receivable from associates in respect of dividends included in the table below were £nil million (2016: £221 million; 2015: £145 million). The Group’s share of dividends from associates, included in other net income in the table below, was £688 million (2016: £1,024 million; 2015: £640 million). 2017 £m 2016 £m 2015 £m Transactions – revenue 366 370 38 – purchases (218 ) (298 ) (270 ) – other net income 699 1,023 639 Amounts receivable at 31 December 40 270 190 Amounts payable at 31 December (1 ) (2 ) (20 ) On 17 December 2012, a wholly owned subsidiary of the Group, BATUS Japan Inc. (BATUSJ), entered into an Amendment and Extension Agreement (referred to as the Amendment) with a wholly owned subsidiary of RAI, R.J. Reynolds Tobacco Company (referred to as RJRTC). The Amendment modifies the American-blend Cigarette Manufacturing Agreement (referred to as the 2010 Agreement), effective as of 1 January 2010. Prior to the Amendment, the term of the 2010 Agreement was scheduled to expire on 31 December 2014, subject to early termination and extension provisions. Pursuant to the Amendment, the Manufacturing Agreement would remain in effect beyond 31 December 2014, provided that either RJRTC or BATUSJ may terminate the Manufacturing Agreement by furnishing three years’ notice to the other party, such notice was given in January 2016. As a result of early termination of this agreement the Group agreed to a compensation payment of US$90 million of which US$7 million were paid to RJRTC on 22 September 2016, with the Group recognising the full expense of US$90 million as required by IFRS in 2016. The balance was paid in March 2017. During 2017, the Group acquired the remaining 49% interest in IPRESS d.o.o. and a further 0.01% interest in BAT Chile Operaciones S.A. The combined costs are less than a £1 million. During 2016, the Group received proceeds of £23 million in respect of its participation in the share buy-back programme conducted by RAI. This programme ceased in the fourth quarter of 2016. During 2016, the Group acquired the remaining 1% interest in Souza Cruz at a cost of £70 million. This transaction is shown as a £4 million increase in reserves attributable to the owners of the parent and a £4 million reduction in reserves attributable to non-controlling interests in note 19. As explained in note 12, contributions to the British American Tobacco UK Pension Fund are secured by a charge over the Group’s Head Office (Globe House) up to a maximum of £150 million. 27 Related party disclosures c ontinued The key management personnel of British American Tobacco consist of the members of the Board of Directors of British American Tobacco p.l.c. and the members of the Management Board. No such person had any material interest during the year in a contract of significance (other than a service contract) with the Company or any subsidiary company. The term key management personnel in this context includes their close family members. 2017 £m 2016 £m 2015 £m The total compensation for key management personnel, including Directors, was: – salaries and other short-term employee benefits 24 18 20 – post-employment benefits 5 3 4 – share-based payments 16 12 11 45 33 35 The following table shows the aggregate emoluments of the Directors of the Company. Executive Directors Chairman Non-Executive Directors Total 2017 £'000 2016 £'000 2015 £'000 2017 £'000 2016 £'000 2015 £'000 2017 £'000 2016 £'000 2015 £'000 2017 £'000 2016 £'000 2015 £'000 Salary; fees; benefits; incentives – salary 2,122 2,057 2,042 – – – - - - 2,122 2,057 2,042 – fees – – – 660 645 642 1,042 1,051 1,138 1,702 1,696 1,780 – taxable benefits 385 335 259 129 106 85 195 122 153 709 563 497 – short-term incentives 4,689 4,622 3,940 – – – - – – 4,689 4,622 3,940 – long-term incentives 10,192 4,483 647 – – – - – – 10,192 4,483 647 Sub-total 17,388 11,497 6,888 789 751 727 1,237 1,173 1,291 19,414 13,421 8,906 Pension; other emoluments – pension 612 634 936 – – – – – – 612 634 936 – other emoluments 50 44 51 – – – – – – 50 44 51 Sub-total 662 678 987 – – – – – – 662 678 987 Total emoluments 18,050 12,175 7,875 789 751 727 1,237 1,173 1,291 20,076 14,099 9,893 27 Related party disclosures c ontinued Aggregate gains on LTIP shares exercised in the year Award Exercised LTIP shares Exercise date Price per share (£) Aggregate gain (£) Nicandro Durante 28 Mar 2014 62,123 28 Mar 2017 52.11 3,237,230 Ben Stevens 28 Mar 2014 34,605 03 Apr 2017 52.92 1,831,297 LTIP - Value of awards 2014 Shares Price per share (£) 1 Face value (£) Nicandro Durante 135,052 32.58 4,399,994 Ben Stevens 75,230 32.58 2,450,993 1 For information only as awards are made as nil cost options. Sharesave - Aggregate Gains 2017 Award date Shares Exercise date Price per share (£) Aggregate gain (£) Nicandro Durante 28 Mar 2012 591 16 Oct 2017 48.49 13,667 Sharesave - Value of award 2012 Shares Price per share (£) Face value (£) Nicandro Durante 591 25.36 14,988 1 BAT Annual Report and Form 20-F 2017

Contingent liabilities and fina

Contingent liabilities and financial commitments	12 Months Ended
	Dec. 31, 2017
Disclosure Of Contingent Liabilities [Abstract]
Contingent liabilities and financial commitments	Notes on the Accounts continued 28 Contingent liabilities and financial commitments 1. The Group is subject to contingencies pursuant to requirements that it complies with relevant laws, regulations and standards. 2. Failure to comply could result in restrictions in operations, damages, fines, increased tax, increased cost of compliance, interest charges, reputational damage or other sanctions. These matters are inherently difficult to quantify. In cases where the Group has an obligation as a result of a past event existing at the balance sheet date, if it is probable that an outflow of economic resources will be required to settle the obligation and if the amount of the obligation can be reliably estimated, a provision will be recognised based on best estimates and management judgement. 3. There are, however, contingent liabilities in respect of litigation, taxes in some countries and guarantees for which no General Litigation Overview 4. There are a number of legal and regulatory actions, proceedings and claims against Group companies related to tobacco products that are pending in a number of jurisdictions. These proceedings include claims for personal injury (both individual claims and class actions) and claims for economic loss arising from the treatment of smoking and health-related diseases (such as medical recoupment claims brought by local governments). 5. The plaintiffs in these cases 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 competition and antitrust laws. 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, attorneys' fees, and injunctive and other equitable relief. 6. 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 pounds. 7. With the exception of the Engle Engle 8. Group companies generally do not settle claims. However, Group companies 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 and Filter Cases, as defined below. An "offer of judgment," if rejected by the plaintiff, preserves the Group's right to recover attorneys’ fees under certain statutes in the event of a verdict favourable to the Group. Such offers are sometimes made through court-ordered mediations. Other settlements by Group companies include the State Settlement Agreements (described below), the funding by various tobacco companies of a US$5.2 billion trust fund contemplated by the Master Settlement Agreement to benefit tobacco growers, the original Broin Engle 9. Although the Group believes that the Group's companies have valid bases for appeals of adverse verdicts in their pending cases and valid defences to all actions and intends to defend them vigorously, litigation is subject to many uncertainties, and generally, it is not possible to predict the outcome of any particular litigation pending against Group companies, or to reasonably estimate the amount or range of any possible loss. Furthermore, 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. US Litigation 10. Group companies, notably R.J. Reynolds Tobacco Company ("RJRT") (individually and as successor by merger to Lorillard Tobacco Company ("Lorillard Tobacco")) and Brown & Williamson Holdings, Inc. (formerly Brown & Williamson Tobacco Corporation) ("B&W") as well as other leading cigarette manufacturers, are defendants in a number of product liability cases. In a number of these cases, the amounts of compensatory and punitive damages sought are significant. 11. On 30 July 2004, B&W completed the combination of the assets, liabilities and operations of its US tobacco business with RJRT, a wholly owned subsidiary of R.J. Reynolds Tobacco Holdings, Inc. (the "Business Combination"). As part of the Business Combination, B&W contributed to RJRT all of the assets and liabilities, including its tobacco-related litigation liabilities, of its US cigarette and tobacco business, subject to specified exceptions, in exchange for an approximately 42.2% equity ownership interest in Reynolds American Inc. ("RAI"), which was formed as a new holding company for these combined businesses. 12. As a result of the Business Combination, RJRT assumed all liabilities of B&W (except liabilities to the extent relating to businesses and assets not contributed by B&W to RJRT and other limited categories of liabilities) and contributed subsidiaries or otherwise to the extent related to B&W’s tobacco business as conducted in the United States on or prior to 30 July 2004. In addition, RJRT agreed to indemnify B&W and each of its affiliates (other than RAI and its subsidiaries) against, among other matters, certain losses (including those arising from Environmental Tobacco Smoke (“ETS”) claims), liabilities, damages, expenses, judgments and attorneys’ fees, to the extent relating to or arising from such assumed liabilities or the assets contributed by B&W to RJRT (the “RJRT Indemnification”). 13. The scope of the RJRT Indemnification included certain expenses and contingent liabilities in connection with litigation to the extent relating to or arising from B&W’s US tobacco business as conducted on or prior to 30 July 2004, including smoking and health tobacco litigation, whether the litigation is commenced before or after 30 July 2004. 14. Effective 25 July 2017, the Company completed the acquisition of the approximately 57.8% of RAI that the Company did not already own. As a result of that acquisition, RJRT has become an indirect, wholly owned subsidiary of the Company. Given the completion of this acquisition, the RJRT Indemnification is therefore between members of the Group, and as such the Group no longer has the benefit from an indemnification by an external party. 28 Contingent liabilities and financial commitments c ontinued 15. Certain terms and phrases used in this note 28 may require some explanation. a. "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. b. "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 wilfully, 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 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. c. "Settlement" refers to certain types of cases in which cigarette manufacturers, including RJRT, B&W and Lorillard Tobacco, have agreed to resolve disputes with certain plaintiffs without resolving the cases through trial. 16. Prior to the Company’s acquisition of the approximately 57.8% of RAI that the Company did not already own, the US Litigation section included significant cases where B&W and/or a UK-based Group company is named as a defendant and all cases where RJRT is named as a defendant as a successor to B&W. Given the Company's completion of its acquisition of RAI, the US Litigation section now also includes discussion of significant cases in which RJRT (individually and as successor by merger to Lorillard Tobacco), its affiliates and B&W are defendants, in addition to those cases in which a UK-based Group company is named as a defendant. 17. The total number of US tobacco product liability cases pending at 31 December 2017 involving RJRT, Lorillard Tobacco and/or B&W was approximately 5,688. (Of these, approximately 4,594 pending cases involved B&W, compared to approximately 4,925 in 2016). As at 31 December 2017, British American Tobacco (Investments) Limited (“Investments”) has been served as a co-defendant in one of those cases (2016:one). No other UK-based Group company has been served as a co-defendant in any US tobacco product liability case pending as at 31 December 2017. 18. Since many of these pending cases seek unspecified damages, it is not possible to quantify the total amounts being claimed, but the aggregate amounts involved in such litigation are significant, possibly totalling billions of US dollars. The cases fall into four broad categories: medical reimbursement cases; class actions; individual cases and other claims. 19. RJRT (individually and as successor by merger to Lorillard Tobacco), American Snuff Co., Santa Fe Natural Tobacco Company, Inc. (“SFNTC”), R.J. Reynolds Vapor Company (“RJR Vapor”), RAI, Lorillard, other RAI affiliates and indemnitees, including but not limited to B&W (collectively, the "Reynolds Defendants"), believe that they have valid defences to the tobacco-related litigation claims against them, as well as valid bases for appeal of adverse verdicts against them. The 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 defences that they and their counsel believe have a valid basis in law and fact. 20. Scheduled trials . Trial schedules are subject to change, and many cases are dismissed before trial. In the US, there are 41 cases, exclusive of progeny cases, scheduled for trial as of 31 December 2017 through 31 December 2018, for the Reynolds Defendants: nine individual smoking and health cases, 29 Filter Cases, and three other non-smoking and health cases. There are also approximately 126 progeny cases against RJRT (individually and as successor to Lorillard Tobacco) and B&W set for trial through 31 December 2018. It is not known how many of these cases will actually be tried. 21. Trial results . From 1 January 2015 through 31 December 2017, 111 individual smoking and health, Engle progeny, filter and health-care cost recovery cases in which the Reynolds Defendants were defendants were tried, including six trials for cases where mistrials were declared in the original proceedings. Verdicts in favour of the Reynolds Defendants and, in some cases, other defendants, were returned in 29 cases, tried in Florida (27), California (1) and New Jersey (1). There were also 22 mistrials in Florida. Verdicts in favour of the plaintiffs were returned in 51 cases tried in Florida. Six cases in Florida were dismissed during trial. Two cases were continued during trial. 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. (a) Medical Reimbursement Cases 22. These civil actions seek to recover amounts spent by government entities and other third party providers on healthcare and welfare costs claimed to result from illnesses associated with smoking. 23. At 31 December 2017, one US medical reimbursement suit (Crow Creek Sioux Tribe v American Tobacco Co.) was pending against RJRT, Lorillard Tobacco and B&W in a Native American tribal court in South Dakota. The plaintiffs seek to recover actual and punitive damages, restitution, funding of a clinical cessation program, funding of a corrective public education program, and disgorgement of unjust profits from sales to minors. No other medical reimbursement suits are pending against these companies by county or other political subdivisions of the states. US Department of Justice action 24. On 22 September 1999, the US Department of Justice brought an action in the US District Court for the District of Columbia against various industry members, including RJRT, Lorillard Tobacco, B&W, B.A.T Industries p.l.c. ("Industries") and Investments ( United States v Philip Morris USA Inc. 28 Contingent liabilities and financial commitments c ontinued 25. Industries was dismissed for lack of personal jurisdiction on 28 September 2000. In addition, Investments was a defendant at the trial, but intervening changes in controlling law post-trial led to a 28 March 2011 court ruling that the court's Final Judgment and Remedial Order no longer applied to Investments prospectively, and for this reason, Investments would not have to comply with any of the remaining injunctive remedies being sought by the government. As the government did not appeal the 28 March 2011 ruling, this means that Investments is no longer in the case and is not subject to any injunctive relief that the court is expected to order against the remaining defendants. As the case continued as against RJRT and Lorillard Tobacco with respect to injunctive relief and related matters, the following is noted. 26. The non-jury trial of the RICO portion of the claim began on 21 September 2004, and ended on 9 June 2005. On 17 August 2006, the federal district court issued its Final Judgment and Remedial Order, which found certain defendants, including RJRT, B&W, Lorillard Tobacco and Investments, had violated RICO, but did not impose any direct financial penalties. The district court instead enjoined the defendants from committing future racketeering acts, participating in certain trade organisations, making misrepresentations concerning smoking and health and youth marketing, and using certain brand descriptors such as "low tar", "light", "ultra light", "mild" and "natural". The district court also ordered the defendants to issue "corrective communications" on five subjects, including smoking and health and addiction, and to comply with further undertakings, including maintaining web sites of historical corporate documents and disseminating certain marketing information on a confidential basis to the government. In addition, the district court placed restrictions on the defendants' ability to dispose of certain assets for use in the United States, unless the transferee agrees to abide by the terms of the district court's order, and ordered certain defendants to reimburse the US Department of Justice its taxable costs incurred in connection with the case. 27. Defendants, including RJRT, Lorillard Tobacco, B&W and Investments, appealed, and the US government cross-appealed to the DC Circuit. On 22 May 2009, the DC Circuit affirmed the federal district court's RICO liability judgment, but vacated the order and remanded for further factual findings and clarification as to whether liability should be imposed against B&W, based on changes in the nature of B&W's business operations (including the extent of B&W's control over tobacco operations). The court also remanded on three other discrete issues relating to the injunctive remedies, including for the district court "to reformulate" the injunction on the use of low-tar descriptors "to exempt foreign activities that have no substantial, direct, and foreseeable domestic effects", and for the district court to evaluate whether corrective communications could be required at point-of-sale displays (which requirement the DC Circuit vacated). On 28 June 2010, the US Supreme Court denied the parties' petitions for further review. 28. On 22 December 2010, the district court dismissed B&W from the litigation. In November 2012, the trial court entered an order setting forth the text of the corrective statements and directed the parties to engage in discussions with the Special Master to implement them. After various proceedings and appeals, the federal district court in October 2017 ordered RJRT and the other US tobacco company defendants to fund the publishing of compelled public statements in various US media outlets, including in newspapers, and on television, the companies' websites and cigarette packaging. The corrective communications commenced running regularly in major US newspapers and television networks on 26 November 2017, and will appear in newspapers for four months and on television for one year. In light of the corrective communications implementation requirements, a US$20 million accrual was made for the estimated costs of the corrective communications (a portion of which has been utilised). (b) Class Actions 29. At 31 December 2017, RJRT, Lorillard Tobacco and B&W were named as a defendant in seven separate actions attempting to assert claims on behalf of classes of persons allegedly injured or financially impacted through smoking, and SFNTC was named in 17 separate cases where plaintiffs alleged that use of the words “natural”, “additive-free”, or “organic” in NATURAL AMERICAN SPIRIT advertising and promotional materials suggests that those cigarettes are less harmful than other cigarettes and, for that reason, violated state consumer protection statutes or amounted to fraud or a negligent or intentional misrepresentation. If the classes are or remain certified, separate trials may be needed to assess individual plaintiffs' damages. “Lights” Cases 30. Four of the class actions against RJRT, its affiliates and/or B&W allege that the use of the terms "lights" and "ultralights" constituted unfair and deceptive trade practices under state law or violates federal RICO laws. The classes in these cases generally seek to recover compensatory and punitive damages, injunctive and other forms of relief, and attorneys' fees and costs from RJRT and/or B&W. In general, the plaintiffs allege that RJRT or B&W made false and misleading claims that "lights" cigarettes were lower in tar and nicotine and/or were less hazardous or less mutagenic than other cigarettes. The cases typically are filed pursuant to state consumer protection and related statutes. Similar class action suits have been filed in a number of states against individual cigarette manufacturers and their parent corporations. a. Turner v R.J. Reynolds Tobacco Co . is a "lights" class action filed in February 2000 against RJRT in the Circuit Court, Madison County, Illinois. In November 2001, the trial court certified a class of purchasers of RJRT "lights" cigarettes. In November 2003, the case was stayed pending resolution of ., the seminal "lights" putative class action case filed in the same court and involving RJRT's competitor, Philip Morris. In , the trial court in March 2003 entered judgment against Philip Morris in the amount of US$7.1 billion in compensatory damages and US$3 billion in punitive damages. The Illinois Supreme Court reversed that judgment in December 2005, and after further appeals that court reaffirmed its decision in November 2015. The US Supreme Court denied plaintiffs' petition to review the decision in June 2016, concluding the case. The stay in subsequently expired, and the court accordingly scheduled a series of status conferences, all of which were continued by agreement of the parties. The status conference scheduled for 29 March 2017 did not occur and has not been rescheduled. b. Howard v Brown & Williamson Tobacco Corp . is a "lights" class action filed in February 2000 against B&W in the Circuit Court, Madison County, Illinois. In December 2001, the trial court certified a class of purchasers of B&W "lights" cigarettes. In June 2003, the trial judge issued an order staying all proceedings pending resolution of the Price case described above. In August 2005, an Illinois appellate court affirmed the trial court's stay order. There is currently no activity in the case. c. Black v Brown & Williamson Tobacco Corp . is a "lights" class action filed in November 2000, which in 2008, the Circuit Court, City of St. Louis, Missouri stayed pending US Supreme Court review in . The case is brought by a putative class of purchasers of B&W "lights" cigarettes. A status conference is scheduled for 4 June 2018. d. Collora v R.J. Reynolds Tobacco Co. is a "lights" class action filed in 2000 against RJRT in the Circuit Court, City of St. Louis, Missouri. The trial court certified a class of purchasers of RJRT "lights" cigarettes in December 2003. A status conference is scheduled for 4 June 2018. 28 Contingent liabilities and financial commitments c ontinued 31. In the event RJRT, its affiliates or indemnitees lose one or more of the pending “lights” class-action suits, RJRT, depending upon the amount of any damages ordered, could face difficulties in its ability to pay the judgment or obtain any bond required to stay execution of the judgment which could have a material adverse effect on RJRT’s, and consequently RAI’s, results of operations, cash flows or financial position. No Additive/Natural/Organic Claim Cases 32. A total of 16 putative class actions have been filed in nine US federal district courts against SFNTC, a subsidiary of RAI, which cases generally allege, in various combinations, violations of state deceptive and unfair trade practice statutes, and claim state common law fraud, negligent misrepresentation, and unjust enrichment based on the use of descriptors such as "natural", "organic" and "100% additive-free" in the marketing, labelling, advertising, and promotion of SFNTC's Natural American Spirit brand cigarettes. The actions seek various categories of recovery, including economic damages, injunctive relief (including medical monitoring and cessation programs), interest, restitution, disgorgement, treble and punitive damages, and attorneys' fees and costs. In April 2016, in response to a motion by the various plaintiffs, the US Judicial Panel on Multidistrict Litigation ("JPML") consolidated these cases for pre-trial purposes before a federal court in New Mexico. That court heard argument on defendants' motion to dismiss the current consolidated complaint on 9 June 2017.On 21 December 2017, the district court granted the motion in part, dismissing a number of claims with prejudice, and denied it in part. Plaintiffs' motion for class certification is due 19 July 2018. A hearing on class certification is set for October 2018. 33. On 7 November 2016, a public health advocacy organisation filed a putative class action ( Breathe DC v Santa Fe Natural Tobacco Co., Inc Other Putative Class Actions 34. Jones v American Tobacco Co ., Inc. is a putative class action filed in December 1998 in the Circuit Court, Jackson County, Missouri. The action was brought by a plaintiff on behalf of a putative class of Missouri tobacco product users and purchasers against various defendants, including RJRT, Lorillard Tobacco and B&W, alleging that the plaintiffs' use of the defendants' tobacco products has caused them to become addicted to nicotine, and seeking an unspecified amount of compensatory and punitive damages. There is currently no activity in this case. 35. Parsons v A C & S, Inc . is a case filed in February 1998 in the Circuit Court, Ohio County, West Virginia against various defendants, including RJRT and B&W, on behalf of a putative class of persons who allegedly have personal injury claims arising from their exposure to respirable asbestos fibres and cigarette smoke. The case is currently stayed pending final resolution of a motion brought by the plaintiffs, and because three defendants filed bankruptcy petitions. 36. Young v American Tobacco Co., Inc. is a case filed in November 1997 in the Circuit Court, Orleans Parish, Louisiana against various US cigarette manufacturers, including RJRT and B&W, and parent companies of such manufacturers. This putative ETS class action was brought on behalf of a putative class of Louisiana residents who , though not themselves cigarette smokers, have been exposed to second-hand smoke from cigarettes manufactured by the defendants, and who allegedly suffered injury as a result of that exposure, seeks an unspecified amount of compensatory and punitive damages. In March 2016, the court entered an order staying the case, including all discovery, pending the completion of the smoking cessation program ordered by the court in Engle Class Action and Engle Progeny Cases (Florida) 37. In July 1998, trial began in Engle v R.J. Reynolds Tobacco Co 38. In July 2000, the jury in Phase II awarded the class a total of approximately US$145 billion in punitive damages, apportioned US$36.3 billion to RJRT, US$17.6 billion to B&W, and US$16.3 billion to Lorillard Tobacco. The three class representatives in the Engle 39. This decision was appealed and ultimately resulted in the Florida Supreme Court in December 2006 decertifying the class and allowing judgments entered for only two of the three Engle Engle progeny cases 40. During 2015, RJRT and Lorillard Tobacco, together with Philip Morris USA Inc. ("PM USA"), settled virtually all of the Engle Engle 41. As at 31 December 2017, there were approximately 2,569 Engle Engle 28 Contingent liabilities and financial commitments c ontinued 42. 107 Engle 43. In addition, accruals for damages and attorneys' fees and statutory interest for 13 cases ( Starr-Blundell v R.J. Reynolds Tobacco Co., Monroe v R.J. Reynolds Tobacco Co., Lourie v R.J. Reynolds Tobacco Co., Lewis v R.J. Reynolds Tobacco Co., Block v R.J. Reynolds Tobacco Co., Turner v R.J. Reynolds Tobacco Co., Schoeff v R.J. Reynolds Tobacco Co., Ahrens v R.J. Reynolds Tobacco Co., Evers v R.J. Reynolds Tobacco Co., Ledoux v R.J. Reynolds Tobacco Co., Mathis v R.J. Reynolds Tobacco Co., Marchese v R.J. Reynolds Tobacco Co. and Graham v R.J. Reynolds Tobacco Co Ward v R.J. Reynolds Tobacco Co Engle 28 Contingent liabilities and financial commitments c ontinued Phase three trials/verdicts/judgments/appeals of individual Engle progeny cases 1 January 2015 to 31 December 2017: Total number of trials 107 Number of trials resulting in plaintiffs’ verdicts 49 Total damages awarded in final judgments against RJRT US$336,757,755 Amount of overall damages comprising ‘compensatory damages’ (approximately) US$159,170,680 (of overall US$336,757,755) Amount of overall damages comprising ‘punitive damages’ (approximately) US$177,587,075 (of overall US$336,757,755) Number of adverse judgments appealed by RJRT 39* Number of adverse judgments (not yet appealed), in which RJRT still has time to file an appeal 7 * Of the 39 adverse judgments appealed by RJRT: a. 21 appeals remain undecided in the District Courts of Appeal, one additional case has a decision but has a rehearing motion pending so the opinion is not final, one case has a rehearing time pending so opinion is not final, there are seven cases with petitions for review pending in the Florida Supreme Court and nil cases with petitions for review pending in the US Supreme Court; and b. nine were decided and/or closed. Of these nine appeals, five were affirmed in favour of plaintiff (further appeal time remains pending in one), one had the liability findings affirmed but was reversed for reinstatement of full compensatory damages amount (further appeal time remains pending), and two were reversed and the matter remanded to the trial court for a new trial on all issues (one has further appeal time running) and one was an appeal of the partial judgment which was subsequently dismissed. RJRT has paid damages to plaintiffs in three cases that were not appealed that are now closed. The total damages awarded may vary depending on the outcome of pending appeals. 44. By statute, Florida applies a US$200 million bond cap to all Engle Engle Engle Engle (c) Individual Cases 45. As of 31 December 2017, 99 individual cases were pending in the United States against RJRT, Lorillard Tobacco and/or B&W. 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 West Virginia personal injury cases (“ West Virginia IPIC Broin II 46. The following chart identifies the number of individual cases pending as of 31 December 2017 as against the number pending as of 31 December 2016, along with the number of West Virginia IPIC cases, Engle progeny cases, Broin II 28 Contingent liabilities and financial commitments c ontinued Case Type US Case Numbers 31 December 2017 US Case Numbers 31 December 2016 Change in Number Increase / (Decrease) Individual smoking and health cases 99 132 (33) West Virginia IPIC (number of plaintiffs)* 1 1 No Change Engle progeny cases (number of plaintiffs)** 2,569 (3,276) 2,822 (3,645) (253) (369) Broin II cases*** 2,321 2,406 (85) Filter cases**** 71 78 (7) * The West Virginia IPIC **The number of Engle *** Broin v Philip Morris, Inc ****Includes claims brought against Lorillard Tobacco and Lorillard by individuals who seek damages resulting from their alleged exposure to asbestos fibres that were incorporated into filter material used in one brand of cigarettes manufactured by a predecessor to Lorillard Tobacco for a limited period of time ending more than 50 years ago. Pursuant to the terms of a 1952 agreement between P. Lorillard Company and H&V Specialties Co., Inc. (the manufacturer of the filter material), Lorillard Tobacco is required to indemnify Hollingsworth & Vose for legal fees, expenses, judgments and resolutions in cases and claims alleging injury from finished products sold by P. Lorillard Company that contained the filter material. As of 31 December 2017, Lorillard Tobacco and/or Lorillard was a defendant in 71 Filter Cases. Since 1 January 2015, Lorillard Tobacco and RJRT have paid, or have reached agreement to pay, a total of approximately US$32.8 million in settlements to resolve 135 Filter Cases. 28 Contingent liabilities and financial commitments c ontinued (d) State Settlement Agreements 47. In November 1998, the major US cigarette manufacturers, including RJRT, B&W and Lorillard Tobacco, entered into the Master Settlement Agreement ("MSA") with attorneys general representing 46 US states, the District of Columbia and certain US 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 (collectively and with the MSA, the "State Settlement Agreements"). 48. These State Settlement Agreements settled all health-care cost recovery actions brought by, or on behalf of, the settling jurisdictions; released the defending major US cigarette manufacturers from various additional present and potential future claims; imposed future payment obligations in perpetuity on RJRT, B&W, Lorillard Tobacco and other major US cigarette manufacturers; and placed significant restrictions on their ability to market and sell cigarettes and smokeless tobacco products. In accordance with the MSA, various tobacco companies agreed to fund a US$5.2 billion trust fund to be used to address the possible adverse economic impact of the MSA on tobacco growers. 49. RJRT and SFNTC are subject to the substantial payment obligations under the State Settlement Agreements. Payments under the State Settlement Agreements are subject to various adjustments for, among other things, the volume of cigarettes sold, relative market share, op

Interests in subsidiaries

Interests in subsidiaries	12 Months Ended
	Dec. 31, 2017
Disclosure Of Significant Investments In Subsidiaries [Abstract]
Interests in subsidiaries	29 Interests in subsidiaries Subsidiaries with material non-controlling interests Non-controlling interests principally arise from the Group's listed investment in Malaysia (British American Tobacco (Malaysia) Berhad), where the Group held 50% of the listed holding company in both 2016 and 2015. The Group has assessed that it exercises de facto control over Malaysia as it has the practical ability to direct the business through effective control of the company’s board as a result of the Group controlling the largest shareholding block in comparison to other shareholdings which are widely dispersed. Summarised financial information for Malaysia is shown below as required by IFRS 12. As part of the Group’s reporting processes, Malaysia report consolidated financial information for the Malaysia group which has been adjusted to comply with Group accounting policies which may differ to local accounting practice. Goodwill in respect of Malaysia, which arose as a result of the acquisition of the Rothmans group referred to in note 9, has not been included as part of the net assets below. In addition, no adjustments have been made to the information below for the elimination of intercompany transactions and balances with the rest of the Group. Summarised financial information 2017 £m 2016 £m 2015 £m Revenue 253 334 422 Profit for the year 89 129 152 – Attributable to non-controlling interests 44 64 76 Total comprehensive income 87 146 136 – Attributable to non-controlling interests 43 73 68 Dividends paid to non-controlling interests (64 ) (59 ) (75 ) Summary net assets: Non-current assets 18 31 43 Current assets 101 103 74 Non-current liabilities (5 ) (4 ) (8 ) Current liabilities (120 ) (94 ) (99 ) Total equity at the end of the year (6 ) 36 10 – Attributable to non-controlling interests (3 ) 18 5 Net cash generated from operating activities 67 108 164 Net cash generated in investing activities 14 45 1 Net cash used in financing activities (86 ) (151 ) (161 ) Differences on exchange (1 ) 1 Increase/(decrease) in net cash and cash equivalents (6 ) 3 4 Net cash and cash equivalents at 1 January 8 5 1 Net cash and cash equivalents at 31 December 2 8 5 Other shareholdings The Group holds 92% (2016: 92%; 2015: 85%) of the equity shares of PT Bentoel Internasional Investama Tbk (“Bentoel”). In 2011, the Group sold 984 million shares, representing approximately 14% of Bentoel’s share capital, for the purposes of fulfilling certain obligations pursuant to Bapepam LK (Indonesia) takeover regulations. The Group simultaneously entered into a total return swap on 971 million of the shares. In June 2016, the Group and other investors participated in a rights issue by Bentoel, increasing its stake in Bentoel to 92%. Simultaneously, the Group amended the total return swap to take account of an addition 1,684 million shares. The shares subject to the total return swap now represent 7% of Bentoel’s issued capital. While the Group does not have legal ownership of these shares, it retains the risks and rewards associated with them which results in the Group continuing to recognise an effective interest in 99% of Bentoel’s net assets and results. For information on the Group’s 42% investment in Tisak d.d. see note 11.

Condensed consolidating financi

Condensed consolidating financial information	12 Months Ended
	Dec. 31, 2017
Disclosure Of Condensed Consolidating Financial Information [Abstract]
Condensed consolidating financial information	Notes on the Accounts continued 30 Condensed consolidating financial information The following condensed consolidating financial information relates to the guarantees of: US$12.2 billion RAI unsecured notes (referred to as “RB” below) and US$231 million of Lorillard unsecured notes (referred to as “LB” below). The subsidiaries disclosed below are wholly owned and the guarantees provided are full and unconditional, and joint and several. The following condensed consolidating financial information includes the accounts and activities of: a. British American Tobacco p.l.c. (parent guarantor of RB and LB), referred to as “BAT p.l.c.” in financials below; b. Reynolds American Inc. (issuer of RB, subsidiary guarantor of LB), referred to as “RAI” in financials below; c. R.J. Reynolds Tobacco Company (issuer of LB), referred to as “RJRT” in financials below; d. R.J. Reynolds Tobacco Holdings Inc. (subsidiary guarantor of RB and LB), referred to as “RJRTH” in financials below; e. other direct and indirect subsidiaries of the BAT Group that are not guarantors; f. elimination entries necessary to consolidate the parent with the issuer, the subsidiary guarantors and non-guarantor subsidiaries; and g. the BAT Group on a consolidated basis. 30 Condensed consolidating financial information continued The condensed consolidating financial information has been prepared as a requirement of the Regulation S-X 3-10. All financial statements and financial information provided by or with respect to the US business or RAI (and/or the RAI Group) are prepared on the basis of U.S. GAAP and constitute the primary financial statements or financial information of the US business or RAI (and/or the RAI Group). Solely for the purpose of consolidation within the results of BAT p.l.c. and the BAT Group, this financial information is then converted to International Financial Reporting Standards as issued by the IASB and adopted by the European Union (IFRS). To the extent any such financial information provided in these financial statements relates to the US business or RAI (and/or the RAI Group) it is provided as an explanation of the US business’ or RAI’s (and/or the RAI Group’s) primary U.S. GAAP based financial statements and information. Condensed Consolidated Income Statement 2017 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Revenue — 3,517 — — 16,886 (111 ) 20,292 Raw materials and consumables used — (346 ) — — (4,286 ) 112 (4,520 ) Changes in inventories of finished goods and work in progress — (7 ) — — (507 ) 1 (513 ) Employee benefit costs (8 ) (117 ) (35 ) (2 ) (2,525 ) 8 (2,679 ) Depreciation, amortisation and impairment costs — (28 ) — — (874 ) — (902 ) Other operating income — 7 34 — 1,859 (1,756 ) 144 Other operating expenses (101 ) (2,889 ) (6 ) — (4,207 ) 1,857 (5,346 ) (Loss)/profit from operations (109 ) 137 (7 ) (2 ) 6,346 111 6,476 Net finance income/(costs) 3 11 (190 ) 9 (916 ) (11 ) (1,094 ) Share of post-tax results of associates and joint ventures — — — — 24,209 — 24,209 Profit before taxation (106 ) 148 (197 ) 7 29,639 100 29,591 Taxation on ordinary activities — (255 ) 61 (3 ) 8,310 — 8,113 Equity income from subsidiaries 37,704 3,870 4,259 3,893 — (49,726 ) — Profit for the year 37,598 3,763 4,123 3,897 37,949 (49,626 ) 37,704 Attributable to: Owners of the parent 37,598 3,763 4,123 3,897 37,778 (49,626 ) 37,533 Non-controlling interests — — — — 171 — 171 37,598 3,763 4,123 3,897 37,949 (49,626 ) 37,704 30 Condensed consolidating financial information continued Condensed Consolidated Income Statement 2016 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Revenue — — — — 14,751 — 14,751 Raw materials and consumables used — — — — (3,777 ) — (3,777 ) Changes in inventories of finished goods and work in progress — — — — 44 — 44 Employee benefit costs (7 ) — — — (2,274 ) 7 (2,274 ) Depreciation, amortisation and impairment costs — — — — (607 ) — (607 ) Other operating income — — — — 176 — 176 Other operating expenses (75 ) — — — (3,658 ) 75 (3,658 ) (Loss)/profit from operations (82 ) — — — 4,655 82 4,655 Net finance (costs)/income (54 ) — — — (637 ) 54 (637 ) Share of post-tax results of associates and joint ventures — — — — 2,227 — 2,227 Profit before taxation (136 ) — — — 6,245 136 6,245 Taxation on ordinary activities — — — — (1,406 ) — (1,406 ) Equity income from subsidiaries 4,839 — — — — (4,839 ) — Profit for the year 4,703 — — — 4,839 (4,703 ) 4,839 Attributable to: Owners of the parent 4,703 — — — 4,648 (4,703 ) 4,648 Non-controlling interests — — — — 191 — 191 4,703 — — — 4,839 (4,703 ) 4,839 30 Condensed consolidating financial information continued Condensed Consolidated Income Statement 2015 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Revenue — — — — 13,104 — 13,104 Raw materials and consumables used — — — — (3,217 ) — (3,217 ) Changes in inventories of finished goods and work in progress — — — — 184 — 184 Employee benefit costs (2 ) — — — (2,039 ) 2 (2,039 ) Depreciation, amortisation and impairment costs — — — — (428 ) — (428 ) Other operating income — — — — 225 — 225 Other operating expenses (66 ) — — — (3,272 ) 66 (3,272 ) (Loss)/profit from operations (68 ) — — — 4,557 68 4,557 Net finance (costs)/income (36 ) — — — 62 36 62 Share of post-tax results of associates and joint ventures — — — — 1,236 — 1,236 Profit before taxation (104 ) — — — 5,855 104 5,855 Taxation on ordinary activities — — — — (1,333 ) — (1,333 ) Equity income from subsidiaries 4,522 — — — — (4,522 ) — Profit for the year 4,418 — — — 4,522 (4,418 ) 4,522 Attributable to: Owners of the parent 4,418 — — — 4,290 (4,418 ) 4,290 Non-controlling interests — — — — 232 — 232 4,418 — — — 4,522 (4,418 ) 4,522 30 Condensed consolidating financial information continued Condensed Consolidated Statement of Comprehensive Income 2017 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Profit for the year 37,598 3,763 4,123 3,897 37,949 (49,626 ) 37,704 Other comprehensive expense Items that may be reclassified subsequently to profit or loss: — — — — (3,812 ) — (3,812 ) Differences on exchange — — — — (4,010 ) — (4,010 ) Cash flow hedges — — — — (171 ) — (171 ) Available-for-sale investments — — — — (22 ) — (22 ) Net investment hedges — — — — 357 — 357 Tax on items that may be reclassified — — — — 34 — 34 Items that will not be reclassified subsequently to profit or loss: — — — — 681 — 681 Retirement benefit schemes — — — — 852 — 852 Tax on items that will not be reclassified — — — — (171 ) — (171 ) Total other comprehensive expense for the year, net of tax — — — — (3,131 ) — (3,131 ) Share of subsidiaries OCI (other reserves) 681 — — — — (681 ) — Share of subsidiaries OCI (retained earnings) (3,812 ) — — — — 3,812 — Total comprehensive income for the year, net of tax 34,467 3,763 4,123 3,897 34,818 (46,495 ) 34,573 Attributable to: Owners of the parent 34,467 3,763 4,123 3,897 34,651 (46,495 ) 34,406 Non-controlling interests — — — — 167 — 167 34,467 3,763 4,123 3,897 34,818 (46,495 ) 34,573 30 Condensed consolidating financial information continued Condensed Consolidated Statement of Comprehensive Income 2016 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Profit for the year 4,703 — — — 4,839 (4,703 ) 4,839 Other comprehensive income Items that may be reclassified subsequently to profit or loss: — — — — 1,760 — 1,760 Differences on exchange — — — — 2,695 — 2,695 Cash flow hedges — — — — 55 — 55 Available-for-sale investments — — — — (10 ) — (10 ) Net investment hedges — — — — (961 ) — (961 ) Tax on items that may be reclassified — — — — (19 ) — (19 ) Items that will not be reclassified subsequently to profit or loss: — — — — (173 ) — (173 ) Retirement benefit schemes — — — — (209 ) — (209 ) Tax on items that will not be reclassified — — — — 36 — 36 Total other comprehensive income for the year, net of tax — — — — 1,587 — 1,587 Share of subsidiaries OCI (other reserves) (173 ) — — — — 173 — Share of subsidiaries OCI (retained earnings) 1,760 — — — — (1,760 ) — Total comprehensive income for the year, net of tax 6,290 — — — 6,426 (6,290 ) 6,426 Attributable to: Owners of the parent 6,290 — — — 6,180 (6,290 ) 6,180 Non-controlling interests — — — — 246 — 246 6,290 — — — 6,426 (6,290 ) 6,426 30 Condensed consolidating financial information continued Condensed Consolidated Statement of Comprehensive Income 2015 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Profit for the year 4,418 — — — 4,522 (4,418 ) 4,522 Other comprehensive expense Items that may be reclassified subsequently to profit or loss: — — — — (849 ) — (849 ) Differences on exchange — — — — (670 ) — (670 ) Cash flow hedges — — — — (129 ) — (129 ) Available-for-sale investments — — — — 5 — 5 Net investment hedges — — — — (76 ) — (76 ) Tax on items that may be reclassified — — — — 21 — 21 Items that will not be reclassified subsequently to profit or loss: — — — — 263 — 263 Retirement benefit schemes — — — — 286 — 286 Tax on items that will not be reclassified — — — — (23 ) — (23 ) Total other comprehensive expense for the year, net of tax — — — — (586 ) — (586 ) Share of subsidiaries OCI (other reserves) 263 — — — — (263 ) — Share of subsidiaries OCI (retained earnings) (849 ) — — — — 849 — Total comprehensive income for the year, net of tax 3,832 — — — 3,936 (3,832 ) 3,936 Attributable to: Owners of the parent 3,832 — — — 3,757 (3,832 ) 3,757 Non-controlling interests — — — — 179 — 179 3,832 — — — 3,936 (3,832 ) 3,936 30 Condensed consolidating financial information continued Condensed Consolidated Balance Sheet 2017 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Assets Intangible assets — 2,780 — 7,284 107,722 (1 ) 117,785 Property, plant and equipment — 677 2 — 4,204 (1 ) 4,882 Investments in subsidiaries 58,300 17,217 29,165 18,972 — (123,654 ) — Investments in associates and joint ventures — — — — 1,577 — 1,577 Retirement benefit assets — — — — 1,123 — 1,123 Deferred tax assets — 306 16 4 (9 ) — 317 Trade and other receivables — 23 860 42 826 (995 ) 756 Available-for-sale investments — — — — 42 — 42 Derivative financial instruments — — — — 590 — 590 Total non-current assets 58,300 21,003 30,043 26,302 116,075 (124,651 ) 127,072 Inventories — 721 — — 5,144 (1 ) 5,864 Income tax receivable — — 339 — 121 — 460 Trade and other receivables 7,365 — 571 9 5,725 (9,617 ) 4,053 Available-for-sale investments — — — — 65 — 65 Derivative financial instruments — — — — 228 — 228 Cash and cash equivalents 5 2 2 — 3,287 (5 ) 3,291 7,370 723 912 9 14,570 (9,623 ) 13,961 Assets classified as held-for-sale — — — — 5 — 5 Total current assets 7,370 723 912 9 14,575 (9,623 ) 13,966 Total assets 65,670 21,726 30,955 26,311 130,650 (134,274 ) 141,038 Equity - Capital and reserves Share capital 614 14,070 13,509 21,260 1,297 (50,136 ) 614 Share premium, capital redemption and merger reserves 22,939 — — — 26,602 (22,939 ) 26,602 Other reserves 805 (25 ) (24 ) (24 ) (3,395 ) (732 ) (3,395 ) Retained earnings 36,556 5,170 6,276 5,055 37,409 (53,483 ) 36,983 Owners of the parent 60,914 19,215 19,761 26,291 61,913 (127,290 ) 60,804 Non-controlling interests — — — — 222 — 222 Total equity 60,914 19,215 19,761 26,291 62,135 (127,290 ) 61,026 Liabilities Borrowings 1,571 186 8,212 — 35,629 (1,571 ) 44,027 Retirement benefit liabilities — 926 42 20 833 — 1,821 Deferred tax liabilities — — — — 17,129 — 17,129 Other provisions for liabilities — 1 — — 353 — 354 Trade and other payables 8 18 102 — 1,933 (1,003 ) 1,058 Derivative financial instruments — — — — 79 — 79 Total non-current liabilities 1,579 1,131 8,356 20 55,956 (2,574 ) 64,468 Borrowings 2,058 40 1,009 — 4,374 (2,058 ) 5,423 Income tax payable — 23 — — 698 (1 ) 720 Other provisions for liabilities — 4 — — 395 — 399 Trade and other payables 1,119 1,313 1,829 — 6,937 (2,351 ) 8,847 Derivative financial instruments — — — — 155 — 155 Total current liabilities 3,177 1,380 2,838 — 12,559 (4,410 ) 15,544 Total equity and liabilities 65,670 21,726 30,955 26,311 130,650 (134,274 ) 141,038 30 Condensed consolidating financial information continued Condensed Consolidated Balance Sheet 2016 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Assets Intangible assets — — — — 12,117 — 12,117 Property, plant and equipment — — — — 3,661 — 3,661 Investments in subsidiaries 7,667 — — — — (7,667 ) — Investments in associates and joint ventures — — — — 9,507 — 9,507 Retirement benefit assets — — — — 455 — 455 Deferred tax assets — — — — 436 — 436 Trade and other receivables — — — — 599 — 599 Available-for-sale investments — — — — 43 — 43 Derivative financial instruments — — — — 596 — 596 Total non-current assets 7,667 — — — 27,414 (7,667 ) 27,414 Inventories — — — — 5,793 — 5,793 Income tax receivable — — — — 69 — 69 Trade and other receivables 7,289 — — — 3,884 (7,289 ) 3,884 Available-for-sale investments — — — — 15 — 15 Derivative financial instruments — — — — 375 — 375 Cash and cash equivalents 5 — — — 2,204 (5 ) 2,204 7,294 — — — 12,340 (7,294 ) 12,340 Assets classified as held-for-sale — — — — 19 — 19 Total current assets 7,294 — — — 12,359 (7,294 ) 12,359 Total assets 14,961 — — — 39,773 (14,961 ) 39,773 Equity - Capital and reserves Share capital 507 — — — 507 (507 ) 507 Share premium, capital redemption and merger reserves 268 — — — 3,931 (268 ) 3,931 Other reserves (362 ) — — — 413 362 413 Retained earnings 10,829 — — — 3,351 (10,849 ) 3,331 Owners of the parent 11,242 — — — 8,202 (11,262 ) 8,182 Non-controlling interests — — — — 224 — 224 Total equity 11,242 — — — 8,426 (11,262 ) 8,406 Liabilities Borrowings — — — — 16,488 — 16,488 Retirement benefit liabilities — — — — 826 — 826 Deferred tax liabilities — — — — 652 — 652 Other provisions for liabilities — — — — 386 — 386 Trade and other payables 8 — — — 1,040 (8 ) 1,040 Derivative financial instruments — — — — 119 — 119 Total non-current liabilities 8 — — — 19,511 (8 ) 19,511 Borrowings 3,621 — — — 3,007 (3,621 ) 3,007 Income tax payable — — — — 558 — 558 Other provisions for liabilities — — — — 407 — 407 Trade and other payables 90 — — — 7,315 (70 ) 7,335 Derivative financial instruments — — — — 549 — 549 Total current liabilities 3,711 — — — 11,836 (3,691 ) 11,856 Total equity and liabilities 14,961 — — — 39,773 (14,961 ) 39,773 30 Condensed consolidating financial information continued Condensed Consolidated Cash Flow Statement 2017 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Net cash (used in)/generated from operating activities (12 ) (1,860 ) (270 ) (11 ) 7,488 12 5,347 Net cash (used in)/generated from investing activities 2 (88 ) 1,116 1 (19,512 ) (63 ) (18,544 ) Net cash (used in)/generated from financing activities 10 1,950 (844 ) 10 21,030 (7,397 ) 14,759 Net cash flows (used in)/generated from operating, investing and financing activities — 2 2 — 9,006 (7,448 ) 1,562 Differences on exchange — — — — (391 ) — (391 ) (Decrease)/increase in net cash and cash equivalents in the year — 2 2 — 8,615 (7,448 ) 1,171 Net cash and cash equivalents at 1 January* 5 — — — 1,646 — 1,651 Net cash and cash equivalents at 31 December 5 2 2 — 10,261 (7,448 ) 2,822 Condensed Consolidated Cash Flow Statement 2016 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Net cash (used in)/generated from operating activities (23 ) — — — 4,610 23 4,610 Net cash (used in)/generated from investing activities 24 — — — (571 ) (93 ) (640 ) Net cash (used in)/generated from financing activities — — — — 1,746 (5,975 ) (4,229 ) Net cash flows (used in)/generated from operating, investing and financing activities 1 — — — 5,785 (6,045 ) (259 ) Differences on exchange 1 — — — 179 — 180 (Decrease)/increase in net cash and cash equivalents in the year 2 — — — 5,964 (6,045 ) (79 ) Net cash and cash equivalents at 1 January* 3 — — — 1,727 — 1,730 Net cash and cash equivalents at 31 December 5 — — — 7,691 (6,045 ) 1,651 30 Condensed consolidating financial information continued Condensed Consolidated Cash Flow Statement 2015 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Net cash (used in)/generated from operating activities 61 — — — 4,712 (53 ) 4,720 Net cash (used in)/generated from investing activities 34 — — — (3,920 ) (105 ) (3,991 ) Net cash (used in)/generated from financing activities (95 ) — — — 982 (1,106 ) (219 ) Net cash flows (used in)/generated from operating, investing and financing activities — — — — 1,774 (1,264 ) 510 Differences on exchange (1 ) — — — (271 ) — (272 ) (Decrease)/increase in net cash and cash equivalents in the year (1 ) — — — 1,503 (1,264 ) 238 Net cash and cash equivalents at 1 January* 4 — — — 1,488 — 1,492 Net cash and cash equivalents at 31 December 3 — — — 2,991 (1,264 ) 1,730 *The opening balance of net cash and cash equivalents represents external cash held by the parent guarantor, issuers, subsidiary guarantors and non-guarantor subsidiaries. BAT Annual Report and Form 20-F 2017 1

Accounting policies (Policies)

Accounting policies (Policies)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Accounting Policies [Abstract]
Basis of preparation	Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), IFRS as adopted by the European Union (EU), and in accordance with the provisions of the UK Companies Act 2006 applicable to companies reporting under IFRS. IFRS as adopted by the EU differs in certain respects from IFRS as issued by the IASB. The differences have no impact on the Group’s consolidated financial statements for the periods presented. The consolidated financial statements have been prepared on a going concern basis under the historical cost convention except as described in the accounting policy below on financial instruments. The Group has adopted the Amendment to IAS 7 Statement of Cash Flows with effect from 1 January 2017. This amendment requires reporting entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, by disclosing changes arising from cash flows as well as non-cash changes. These additional disclosures have been added to note 20. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. The key estimates and assumptions are set out in the accounting policies below, together with the related notes to the accounts. The critical accounting estimates include: - the review of asset values, especially goodwill and impairment testing. The key assumptions used in respect of goodwill and impairment testing are the determination of cash-generating units, the budgeted cash flows of these units, the long-term growth rate for cash flow projections and the rate used to discount the cash flow projections. These are described in note 9; - the estimation of and accounting for retirement benefit costs. The determination of the carrying value of assets and liabilities, as well as the charge for the year, and amounts recognised in other comprehensive income, involves judgements made in conjunction with independent actuaries. These involve estimates about uncertain future events based on the environment in different countries, including life expectancy of scheme members, salary and pension increases, inflation, as well as discount rates and asset values at the year end. The assumptions used by the Group and sensitivity analysis are described in note 12; - the estimation of amounts to be recognised in respect of taxation and legal matters, and the estimation of other provisions for liabilities and charges are subject to uncertain future events, may extend over several years and so the amount and/or timing may differ from current assumptions. The accounting policy for taxation is explained below. The recognised deferred tax assets and liabilities, together with a note of unrecognised amounts, are shown in note 13, and a contingent tax asset is explained in note 6(b). Other provisions for liabilities and charges are as set out in note 21. The accounting policy on contingent liabilities, which are not provided for, is set out below and the contingent liabilities of the Group are explained in note 28. The application of these accounting policies to the payments made and credits recognised under the Master Settlement Agreement by Reynolds American (“RAI”) is described in note 3(d); and - the estimation of the fair values of acquired net assets arising in a business combination and the allocation of the purchase consideration between the underlying net assets acquired, including intangible assets other than goodwill, on the basis of their fair values. These estimates are prepared in conjunction with the advice of independent valuation experts where appropriate. The relevant transactions for 2017, 2016 and 2015 are described in note 24. The critical accounting judgements include: - the definition of adjusting items, which are separately disclosed as memorandum information, is explained below and the impact of these on the calculation of adjusted earnings is described in note 7; - the determination as to whether control (subsidiaries), joint control (joint arrangements), or significant influence (associates) exists in relation to the investments held by the Group. This is assessed after taking into account the Group’s ability to appoint directors to the entity’s board, its relative shareholding compared with other shareholders, any significant contracts or arrangements with the entity or its other shareholders and other relevant facts and circumstances; and - the review of applicable exchange rates for transactions with and translation of entities in territories where there are restrictions on the free access to foreign currency, or multiple exchange rates. Such estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable in the circumstances and constitute management’s best judgement at the date of the financial statements. In the future, actual experience may deviate from these estimates and assumptions, which could affect the financial statements as the original estimates and assumptions are modified, as appropriate, in the year in which the circumstances change. These consolidated financial statements were authorised for issue by the Board of Directors on 21 February 2018.
Basis of consolidation	Basis of consolidation The consolidated financial information includes the financial statements of British American Tobacco p.l.c. and its subsidiary undertakings, collectively “the Group”, together with the Group’s share of the results of its associates and joint arrangements. A subsidiary is an entity controlled by the Group. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Associates comprise investments in undertakings, which are not subsidiary undertakings or joint arrangements, where the Group’s interest in the equity capital is long term and over whose operating and financial policies the Group exercises a significant influence. They are accounted for using the equity method. Joint arrangements comprise contractual arrangements where two or more parties have joint control and where decisions regarding the relevant activities of the entity require unanimous consent. Joint operations are jointly-controlled arrangements where the parties to the arrangement have rights to the underlying assets and obligations for the underlying liabilities relating to the arrangement. The Group accounts for its share of the assets, liabilities, income and expenses of any such arrangement. Joint ventures comprise arrangements where the parties to the arrangement have rights to the net assets of the arrangement. They are accounted for using the equity method.
Foreign currencies	Foreign currencies The functional currency of the Parent Company is sterling and this is also the presentation currency of the Group. The income and cash flow statements of Group undertakings expressed in currencies other than sterling are translated to sterling using exchange rates applicable to the dates of the underlying transactions. Average rates of exchange in each year are used where the average rate approximates the relevant exchange rate at the date of the underlying transactions. Assets and liabilities of Group undertakings are translated at the applicable rates of exchange at the end of each year. In territories where there are restrictions on the free access to foreign currency or multiple exchange rates, the applicable rates of exchange are regularly reviewed. For hyperinflationary countries, the financial statements in local currency are adjusted to reflect the impact of local inflation prior to translation into sterling. The differences between retained profits translated at average and closing rates of exchange are taken to reserves, as are differences arising on the retranslation to sterling (using closing rates of exchange) of overseas net assets at the beginning of the year, and are presented as a separate component of equity. They are recognised in the income statement when the gain or loss on disposal of a Group undertaking is recognised. Foreign currency transactions are initially recognised in the functional currency of each entity in the Group using the exchange rate ruling at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of foreign currency assets and liabilities at year end rates of exchange are recognised in the income statement, except when deferred in equity as qualifying cash flow hedges, on intercompany net investment loans and qualifying net investment hedges. Foreign exchange gains or losses recognised in the income statement are included in profit from operations or net finance costs depending on the underlying transactions that gave rise to these exchange differences.
Revenue	Revenue Revenue principally comprises sales of cigarettes and other tobacco products to external customers. Revenue excludes duty, excise and other taxes and is after deducting rebates, returns and other similar discounts. Revenue is recognised when the significant risks and rewards of ownership are transferred to a third party.
Retirement benefit costs	Retirement benefit costs The Group operates both defined benefit and defined contribution schemes including post-retirement healthcare schemes. The net deficit or surplus for each defined benefit pension scheme is calculated in accordance with IAS 19 based on the present value of the defined benefit obligation at the balance sheet date less the fair value of the scheme assets adjusted, where appropriate, for any surplus restrictions or the effect of minimum funding requirements. For defined benefit schemes, the actuarial cost charged to profit from operations consists of current service cost, net interest on the net defined benefit liability or asset, past service cost and the impact of any settlements. Some benefits are provided through defined contribution schemes and payments to these are charged as an expense as they fall due.
Share-based payments	Share-based payments The Group has equity-settled and cash-settled share-based compensation plans. Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed over the vesting period, based on the Group’s estimate of awards that will eventually vest. For plans where vesting conditions are based on total shareholder returns, the fair value at date of grant reflects these conditions, whereas earnings per share vesting conditions are reflected in the calculation of awards that will eventually vest over the vesting period. For cash-settled share-based payments, a liability equal to the portion of the services received is recognised at its current fair value determined at each balance sheet date. Fair value is measured by the use of the Black-Scholes option pricing model, except where vesting is dependent on market conditions when the Monte-Carlo option pricing model is used. The expected life used in the models has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
Research and development	Research and development Research expenditure is charged to income in the year in which it is incurred. Development expenditure is charged to income in the year it is incurred, unless it meets the recognition criteria of IAS 38.
Taxation	Taxation Taxation is that chargeable on the profits for the period, together with deferred taxation. The current income tax charge is calculated on the basis of tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group’s subsidiaries, associates and joint arrangements operate and generate taxable income. Deferred taxation is provided in full using the liability method for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax is determined using the tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or deferred tax liability is settled. Tax is recognised in the income statement except to the extent that it relates to items recognised in other comprehensive income or directly in equity, in which case it is recognised in the statement of other comprehensive income or the statement of changes in equity. The Group has exposures in respect of the payment or recovery of a number of taxes. Liabilities or assets for these payments or recoveries are recognised at such time as an outcome becomes probable and when the amount can reasonably be estimated.
Goodwill	Goodwill Goodwill arising on acquisitions is capitalised and any impairment of goodwill is recognised immediately in the income statement and is not subsequently reversed. Goodwill in respect of subsidiaries is included in intangible assets. In respect of associates and joint ventures, goodwill is included in the carrying value of the investment in the associated company or joint venture. On disposal of a subsidiary, associate or joint venture, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
Intangible assets other than goodwill	Intangible assets other than goodwill The intangible assets shown on the Group balance sheet consist mainly of trademarks and similar intangibles, including certain intellectual property, acquired by the Group’s subsidiary undertakings and computer software. Acquired trademarks and similar assets are carried at cost less accumulated amortisation and impairment. Trademarks with indefinite lives are not amortised but are reviewed annually for impairment. Other trademarks and similar assets are amortised on a straight-line basis over their remaining useful lives, consistent with the pattern of economic benefits expected to be received, which do not exceed 20 years. Any impairments of trademarks are recognised in the income statement but increases in trademark values are not recognised. Computer software is carried at cost less accumulated amortisation and impairment, and, with the exception of global software solutions, is amortised on a straight-line basis over periods ranging from three years to five years. Global software solutions are software assets designed to be implemented on a global basis and used as a standard solution by all of the operating companies in the Group. These assets are amortised on a straight-line basis over periods not exceeding ten years.
Property, plant and equipment	Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation is calculated on a straight-line basis to write off the assets over their useful economic life. No depreciation is provided on freehold land or assets classified as held-for-sale. Freehold and leasehold property are depreciated at rates between 2.5% and 4% per annum, and plant and equipment at rates between 3% and 25% per annum.
Capitalised interest	Capitalised interest Borrowing costs which are directly attributable to the acquisition, construction or production of intangible assets or property, plant and equipment that takes a substantial period of time to get ready for its intended use or sale, are capitalised as part of the cost of the asset.
Leased assets	Leased assets Assets where the Group has substantially all the risks and rewards of ownership of the leased asset are classified as finance leases and are included as part of property, plant and equipment. Finance lease assets are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, then depreciated over the shorter of the lease term and their estimated useful lives. Leasing payments consist of capital and finance charge elements and the finance element is charged to the income statement. Rental payments under operating leases are charged to the income statement on a straight-line basis over the lease term.
Impairment of non-financial assets	Impairment of non-financial assets Assets are reviewed for impairment whenever events indicate that the carrying amount of a cash-generating unit may not be recoverable. In addition, assets that have indefinite useful lives are tested annually for impairment. An impairment loss is recognised to the extent that the carrying value exceeds the higher of the asset’s fair value less costs to sell and its value in use. A cash-generating unit is the smallest identifiable group of assets that generates cash flows which are largely independent of the cash flows from other assets or groups of assets. At the acquisition date, any goodwill acquired is allocated to the relevant cash-generating unit or group of cash-generating units expected to benefit from the acquisition for the purpose of impairment testing of goodwill.
Impairment of financial assets	Impairment of financial assets Financial assets are reviewed at each balance sheet date, or whenever events indicate that the carrying amount may not be recoverable. In the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the investment below its cost is considered as an indicator that the investment is impaired.
Inventories	Inventories Inventories are stated at the lower of cost and net realisable value. Cost is based on the weighted average cost incurred in acquiring inventories and bringing them to their existing location and condition, which will include raw materials, direct labour and overheads, where appropriate. Net realisable value is the estimated selling price less costs to completion and sale. Tobacco inventories which have an operating cycle that exceeds 12 months are classified as current assets, consistent with recognised industry practice.
Financial instruments	Financial instruments Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the relevant instrument and derecognised when it ceases to be a party to such provisions. Such assets and liabilities are classified as current if they are expected to be realised or settled within 12 months after the balance sheet date. If not, they are classified as non-current. Financial assets and financial liabilities are initially recognised at fair value, plus directly attributable transaction costs where applicable, with subsequent measurement as set out below. Non-derivative financial assets are classified on initial recognition as available-for-sale investments, loans and receivables or cash and cash equivalents as follows: Available-for-sale investments: Available-for-sale investments are those non-derivative financial assets that cannot be classified as loans and receivables or cash and cash equivalents. Loans and receivables: These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Fair values for quoted investments are based on observable market prices. If there is no active market for a financial asset, the fair value is established by using valuation techniques principally involving discounted cash flow analysis. Non-derivative financial liabilities are stated at amortised cost using the effective interest method. For borrowings, their carrying value includes accrued interest payable, as well as unamortised issue costs. Derivative financial assets and liabilities are initially recognised, and subsequently measured, at fair value, which includes accrued interest receivable and payable where relevant. Changes in their fair values are recognised as follows: - for derivatives that are designated as cash flow hedges, the changes in their fair values are recognised directly in other comprehensive income, to the extent that they are effective, with the ineffective portion being recognised in the income statement. Where the hedged item results in a non-financial asset, the accumulated gains and losses, previously recognised in other comprehensive income, are included in the initial carrying value of the asset (basis adjustment) and recognised in the income statement in the same periods as the hedged item. Where the underlying transaction does not result in such an asset, the accumulated gains and losses are reclassified to the income statement in the same periods as the hedged item; - for derivatives that are designated as fair value hedges, the carrying value of the hedged item is adjusted for the fair value changes attributable to the risk being hedged, with the corresponding entry being made in the income statement. The changes in fair value of these derivatives are also recognised in the income statement; - for derivatives that are designated as hedges of net investments in foreign operations, the changes in their fair values are recognised directly in other comprehensive income, to the extent that they are effective, with the ineffective portion being recognised in the income statement. Where non-derivatives such as foreign currency borrowings are designated as net investment hedges, the relevant exchange differences are similarly recognised. The accumulated gains and losses are reclassified to the income statement when the foreign operation is disposed of; and - for derivatives that do not qualify for hedge accounting or are not designated as hedges, the changes in their fair values are recognised in the income statement in the period in which they arise. In order to qualify for hedge accounting, the Group is required to document prospectively the relationship between the item being hedged and the hedging instrument. The Group is also required to demonstrate an assessment of the relationship between the hedged item and the hedging instrument, which shows that the hedge will be highly effective on an ongoing basis. This effectiveness testing is reperformed periodically to ensure that the hedge has remained, and is expected to remain, highly effective. Hedge accounting is discontinued when a hedging instrument is derecognised (e.g. through expiry or disposal), or no longer qualifies for hedge accounting. Where the hedged item is a highly probable forecast transaction, the related gains and losses remain in equity until the transaction takes place, when they are reclassified to the income statement in the same manner as for cash flow hedges as described above. When a hedged future transaction is no longer expected to occur, any related gains and losses, previously recognised in other comprehensive income, are immediately reclassified to the income statement. Derivative fair value changes recognised in the income statement are either reflected in arriving at profit from operations (if the hedged item is similarly reflected) or in finance costs.
Dividends	Dividends Dividend ( ) ( ). , , .
Segmental analysis	Segmental analysis The Group is organised and managed on the basis of its geographic regions. These are the reportable segments for the Group as they form the focus of the Group’s internal reporting systems and are the basis used by the chief operating decision maker, identified as the Management Board, for assessing performance and allocating resources. The Group is primarily a single product business providing cigarettes and other tobacco products. While the Group has clearly differentiated brands, global segmentation between a wide portfolio of brands is not part of the regular internally reported financial information. The results of Next Generation Products are not currently material to the Group. The prices agreed between Group companies for intra-group sales of materials, manufactured goods, charges for royalties, commissions, services and fees, are based on normal commercial practices which would apply between independent businesses. Royalty income, less related expenditure, is included in the region in which the licensor is based.
Adjusting items	Adjusting items are significant items of o The to of to - of , , , , o w ich of , from , dilu ed sha e, .
Provisions	Provisions Provisions are recognised when either a legal or constructive obligation as a result of a past event exists at the balance sheet date, it is probable that an outflow of economic resources will be required to settle the obligation and a reasonable estimate can be made of the amount of the obligation.
Contingent liabilities and contingent assets	Contingent liabilities and contingent assets Subsidiaries and associate companies are defendants in tobacco-related and other litigation. Provision for this litigation (including legal costs) is made at such time as an unfavourable outcome became probable and the amount can be reasonably estimated. Contingent assets are possible assets whose existence will only be confirmed by future events not wholly within the control of the entity and are not recognised as assets until the realisation of income is virtually certain. Where a provision has not been recognised, the Group records its external legal fees and other external defence costs for tobacco-related and other litigation as these costs are incurred.
Repurchase of share capital	Repurchase of share capital When share capital is repurchased the amount of consideration paid, including directly attributable costs, is recognised as a deduction from equity. Repurchased shares which are not cancelled, or shares purchased for the employee share ownership trusts, are classified as treasury shares and presented as a deduction from total equity.
Future changes to accounting policies	Future changes to accounting policies Certain changes to IFRS will be applicable to the Group financial statements in future years. Set out below are those which are considered to be most relevant to the Group. IFRS 9 Financial Instruments. This standard was finalised and published in July 2014 as the replacement for IAS 39. The Group shall apply IFRS 9 with effect from 1 January 2018 with no restatement of prior periods, as permitted by the Standard. The cumulative impact of adopting the Standard, including the effect of tax entries, will be recognised as a restatement of opening reserves in 2018, and is estimated to be £37 million, arising from: - A change in the classification and measurement of financial assets : The category of available-for-sale investments (where fair value changes are deferred in reserves until disposal of the investment) will be replaced with the category of financial assets at Fair Value through Profit and Loss, and the available-for-sale reserve will be reclassified into retained earnings. In addition, certain loans and receivables which do not meet the measurement tests for amortised cost under IFRS 9 will be reclassified as financial assets at Fair Value through Profit and Loss. - Impairment of financial assets under the expected loss model: The expected loss model under IFRS 9 accelerates recognition of potential impairment on loans and trade receivables when compared with the incurred loss model under IAS 39. A simplified “lifetime expected loss model” is available for balances arising as a result of revenue recognition, by applying a standard rate of provision on initial recognition of trade debtors based upon the Group’s historical experience of credit loss, and increasing this provision to take account of overdue receivables. Applying the requirements of IFRS 9 is expected to result in a decrease of trade and other debtors of £45 million as at 1 January 2018. The Group will adopt the hedge accounting requirements of IFRS 9 prospectively from 1 January 2018. IFRS 15 Revenue from Contracts with Customers This standard was first published in May 2014, and subsequently amended in April 2016, as the replacement to IAS 18, and the mandatory effective date of implementation is 1 January 2018. The Group shall apply IFRS 15 with effect from 1 January 2018 with full restatement of prior periods, as permitted by the Standard, to ensure comparability of the income statement across prior periods. This standard changes the way the Group accounts for rebates, discounts or other consideration payable to customers, and requires certain payments to indirect customers, currently shown as marketing expenses under IAS 18, to be shown as deductions from revenue. This would have reduced revenue by £664 million in 2017 (2016: £618 million), with a corresponding reduction in operating costs. In addition, due to the timing of the recognition of certain payments to indirect customers, revenue and operating profit for the year would have been reduced by a further £64 million had the Standard been applied to 2017’s results. IFRS 16 Leases This standard was finalised and published in January 2016 with a mandatory effective date of implementation of 1 January 2019. The distinction between operating leases and finance leases enshrined in current accounting requirements (IAS 17) is removed with the effect that virtually all leasing arrangements will be brought on to the balance sheet as financial obligations and ‘right-to-use’ assets. Further due diligence will be carried out before implementation, but the anticipated impact from restatement on the Group’s reported profit and net assets for 2017 and 2016 is not expected to be material, although assets and liabilities would have been grossed up by IFRIC 23 Uncertainty over Income Tax treatments. This interpretation was finalised and published in June 2017 with a mandatory effective date of implementation, subject to EU endorsement, of 1 January 2019. The Interpretation clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments. In particular, the . In addition, a number of other interpretations and revisions to existing standards have been issued which will be applicable to the Group’s financial statements in future years, but will not have a material effect on reported profit or equity or on the disclosures in the financial statements.

Segmental analyses (Tables)

Segmental analyses (Tables)	12 Months Ended
	Dec. 31, 2017
Reportable Segments [Abstract]
Disclosure of Revenue, Adjusted Revenue at Constant And Current Rates of Exchange	The following table shows 2017 revenue and adjusted revenue at current rates, and 2017 adjusted revenue translated using 2016 rates of exchange. The 2016 figures are stated at the 2016 rates of exchange and are, therefore, unadjusted from those published for 2016. 2017 2016 Adjusted Revenue Constant rates £m Translation exchange £m Adjusted Revenue Current rates £m Adjusting items Current rates £m Revenue Current rates £m Revenue £m United States 4,006 205 4,211 – 4,211 – Asia-Pacific 4,320 189 4,509 – 4,509 4,266 Americas 3,178 (53 ) 3,125 – 3,125 2,868 Western Europe 4,007 267 4,274 258 4,532 3,867 EEMEA 3,773 142 3,915 – 3,915 3,750 Revenue 19,284 750 20,034 258 20,292 14,751 Note: adjusting items in revenue are in respect of excise included in goods acquired from a third party under short term arrangements and then passed on to customers. This is deemed as adjusting due to the distorting nature to revenue and operating margin. The following table shows 2016 revenue at current rates, and 2016 revenue translated using 2015 rates of exchange. The 2015 figures are stated at the 2015 rates of exchange and are, therefore, unadjusted from those published for 2015. 2016 2015 Revenue Constant rates £m Translation exchange £m Revenue Current rates £m Revenue £m Asia-Pacific 3,770 496 4,266 3,773 Americas 3,014 (146 ) 2,868 2,720 Western Europe 3,471 396 3,867 3,203 EEMEA 3,753 (3 ) 3,750 3,408 Revenue 14,008 743 14,751 13,104
Disclosure of Segment Results at Constant And Current Rates of Exchange	Notes on the Accounts continued The following table shows 2017 profit from operations and adjusted profit from operations at current rates, and as translated using 2016 rates of exchange. The 2016 figures are stated at the 2016 rates of exchange and are, therefore, unadjusted from those published for 2016. 2017 2016 Adjusted* segment result Constant rates £ m Translation exchange £ m Adjusted* segment result Current rates £ m Adjusting* items £ m Segment result Current rates £ m Adjusted* segment result £m Adjusting* items £m Segment result £m United States 1,980 101 2,081 (763 ) 1,318 – – – Asia-Pacific 1,674 81 1,755 (117 ) 1,638 1,630 (198 ) 1,432 Americas 1,288 (32 ) 1,256 (109 ) 1,147 1,172 (155 ) 1,017 Western Europe 1,458 104 1,562 (435 ) 1,127 1,389 (345 ) 1,044 EEMEA 1,265 74 1,339 (93 ) 1,246 1,289 (107 ) 1,182 7,665 328 7,993 (1,517 ) 6,476 5,480 (805 ) 4,675 Fox River** – – (20 ) (20 ) Profit from operations 7,665 328 7,993 (1,517 ) 6,476 5,480 (825 ) 4,655 Net finance costs (833 ) (56 ) (889 ) (205 ) (1,094 ) (529 ) (108 ) (637 ) United States*** 593 31 624 23,195 23,819 991 889 1,880 Asia-Pacific 352 30 382 29 411 331 11 342 Western Europe 4 – 4 (27 ) (23 ) 3 – 3 EEMEA 2 – 2 – 2 2 – 2 Share of post-tax results of associates and joint ventures 951 61 1,012 23,197 24,209 1,327 900 2,227 Profit/(loss) before taxation 7,783 333 8,116 21,475 29,591 6,278 (33 ) 6,245 Taxation (charge)/credit on ordinary activities (2,033 ) (74 ) (2,107 ) 10,220 8,113 (1,406 ) Profit for the year 37,704 4,839 * The adjustments to profit from operations, net finance (costs) / income and the Group's share of the post-tax results of associates and joint ventures are explained in notes 3(e) to 3(i), note 4(b), note 5(a) and note 6(d) to (e) respectively. ** The Fox River charge in 2016 (see note 3(g) and note 28) has not been allocated to any segment as it neither relates to current operations nor the tobacco business. It is presented separately from the segmental reporting which is used to evaluate segment performance and to allocate resources, and is reported to the chief operating decision maker on this basis. *** The prior year comparison has been restated to reclassify the share of post-tax results in RAI from the Americas region to the new United States region. 2 Segmental analyses continued The following table shows 2016 profit from operations and adjusted profit from operations at current rates, and as translated using 2015 rates of exchange. The 2015 figures are stated at the 2015 rates of exchange and are, therefore, unadjusted from those published for 2015. 2016 2015 Adjusted* segment result Constant rates £m Translation exchange £m Adjusted* segment result Current rates £m Adjusting* items £m Segment result Current rates £m Adjusted* segment result £m Adjusting* items £m Segment result £m Asia-Pacific 1,488 142 1,630 (198 ) 1,432 1,469 (108 ) 1,361 Americas 1,202 (30 ) 1,172 (155 ) 1,017 1,169 (87 ) 1,082 Western Europe 1,236 153 1,389 (345 ) 1,044 1,146 (156 ) 990 EEMEA 1,271 18 1,289 (107 ) 1,182 1,208 (81 ) 1,127 5,197 283 5,480 (805 ) 4,675 4,992 (432 ) 4,560 Fox River** (20 ) (20 ) – – Flintkote** – – (3 ) (3 ) Profit from operations 5,197 283 5,480 (825 ) 4,655 4,992 (435 ) 4,557 Net finance (costs) / income (494 ) (35 ) (529 ) (108 ) (637 ) (427 ) 489 62 United States*** 877 114 991 889 1,880 652 277 929 Asia-Pacific 307 24 331 11 342 286 16 302 Americas*** – – – – – 4 – 4 Western Europe 4 (1 ) 3 – 3 – – – EEMEA 2 – 2 – 2 1 – 1 Share of post-tax results of associates and joint ventures 1,190 137 1,327 900 2,227 943 293 1,236 Profit/(loss) before taxation 5,893 385 6,278 (33 ) 6,245 5,508 347 5,855 Taxation on ordinary activities (1,406 ) (1,333 ) Profit for the year 4,839 4,522 * The adjustments to profit from operations, net finance (costs) / income and the Group's share of the post-tax results of associates and joint ventures are explained in notes 3(e) to 3(i), note 4(b), note 5(a) and note 6(d) to (e) respectively. ** The Fox River charge in 2016 and 2015 (see note 3(g) and note 28) and the Flintkote charge in 2015 (see note 3(i) and note 28) have not been allocated to any segment as they neither relate to current operations nor the tobacco business. They are presented separately from the segmental reporting which is used to evaluate segment performance and to allocate resources, and is reported to the chief operating decision maker on this basis. *** The prior year comparison has been restated to reclassify the share of post-tax results in RAI from the Americas region to the new United States region. 1 BAT Annual Report and Form 20-F 2017
Summary of Depreciation Amortisation and Impairment Charges	Adjusted profit from operations at constant rates of £7,665 million (2016: £5,197 million; 2015: £5,620 million) excludes certain depreciation, amortisation and impairment charges as explained in notes 3(e) and 3(f). These are excluded from segmental profit from operations at constant rates as follows: 2017 2016 Adjusted depreciation, amortisation and impairment Constant rates £m Translation exchange £m Adjusted depreciation, amortisation and impairment Current rates £m Adjusting items £m Depreciation, amortisation and impairment Current rates £m Adjusted depreciation, amortisation and impairment £m Adjusting items £m Depreciation, amortisation and impairment £m United States 57 2 59 120 179 Asia-Pacific 101 3 104 22 126 105 51 156 Americas 60 3 63 39 102 86 44 130 Western Europe 105 5 110 263 373 109 103 212 EEMEA 95 3 98 24 122 95 14 109 418 16 434 468 902 395 212 607 2016 2015 Adjusted depreciation, amortisation and impairment Constant rates £m Translation exchange £m Adjusted depreciation, amortisation and impairment Current rates £m Adjusting items £m Depreciation, amortisation and impairment Current rates £m Adjusted depreciation, amortisation and impairment £m Adjusting items £m Depreciation, amortisation and impairment £m Asia-Pacific 96 9 105 51 156 95 33 128 Americas 83 3 86 44 130 84 9 93 Western Europe 100 9 109 103 212 75 39 114 EEMEA 96 (1 ) 95 14 109 83 10 93 375 20 395 212 607 337 91 428
Disclosure of Geographical Information of External Revenue and Non-Current Assets	External revenue and non-current assets other than financial instruments, deferred tax assets and retirement benefit assets are analysed between the UK and all foreign countries at current rates of exchange as follows: United Kingdom All foreign countries Group Revenue is based on location of sale 2017 £m 2016 £m 2015 £m 2017 £m 2016 £m 2015 £m 2017 £m 2016 £m 2015 £m External revenue 211 272 190 20,081 14,479 12,914 20,292 14,751 13,104 United Kingdom All foreign countries Group 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Intangible assets 514 551 117,271 11,566 117,785 12,117 Property, plant and equipment 406 371 4,476 3,290 4,882 3,661 Investments in associates and joint ventures – – 1,577 9,507 1,577 9,507

Profit from operations (Tables)

Profit from operations (Tables)	12 Months Ended
	Dec. 31, 2017
Profit From Operations [Abstract]
Summary of Employee Benefit Costs	(a) Employee benefit costs 2017 £ m 2016 £m 2015 £m Wages and salaries 2,131 1,882 1,667 Social security costs 216 207 174 Other pension and retirement benefit costs (note 12) 215 101 138 Share-based payments - equity and cash-settled (note 25) 117 84 60 2,679 2,274 2,039
Summary of Depreciation Amortisation and Impairment Costs	(b) Depreciation, amortisation and impairment costs 2017 £ m 2016 £m 2015 £m Intangibles – amortisation and impairment of trademarks and similar intangibles (note 3(f)) 383 149 65 – amortisation and impairment of other intangibles 140 81 89 Property, plant and equipment – depreciation and impairment 379 377 274 902 607 428
Summary of Other Operating Expenses	3 Profit from operations continued (c) Other operating expenses include: 2017 £ m 2016 £m 2015 £m Research and development expenses (excluding employee benefit costs and depreciation) 80 53 60 Exchange differences (6 ) (2 ) 10 Rent of plant and equipment (operating leases) – minimum lease payments 41 20 20 Rent of property (operating leases) – minimum lease payments 85 51 52 Fees payable for audit services pursuant to legislation: – fees payable to KPMG LLP for Parent Company and Group audit 6.3 2.0 2.0 – fees payable to other KPMG LLP firms and associates for local statutory and Group reporting audits 11.3 7.2 6.7 Audit fees payable to KPMG LLP firms and associates 17.6 9.2 8.7 Audit fees payable to PricewaterhouseCoopers LLP firms and associates – – 0.6 Audit fees payable to other firms 0.2 – – Total audit fees payable 17.8 9.2 9.3 Fees payable to KPMG LLP firms and associates for other services: – audit-related assurance services 8.0 0.2 0.2 – other assurance services 4.1 0.1 0.1 – tax advisory services – 0.2 0.6 – tax compliance 0.2 0.3 0.4 – other non-audit services – 1.4 2.0 12.3 2.2 3.3
Summary of Restructuring and Integration Costs	2017 £ m 2016 £m 2015 £m Employee benefit costs 193 240 159 Depreciation, amortisation and impairment costs 85 64 26 Other operating expenses 330 325 228 Other operating income (8 ) (26 ) (46 ) 600 603 367

Net Finance Costs_(Income) (Tab

Net Finance Costs/(Income) (Tables)	12 Months Ended
	Dec. 31, 2017
Net Finance Costs [Abstract]
Summary of Net Finance Costs/(Income)	(a) Net finance costs/(income) 2017 £m 2016 £m 2015 £m Interest expense 1,081 645 573 Option costs and fees (see note 4(b)(v)) – – 104 Facility fees 13 5 9 Interest related to adjusting tax payables (see note 4(b)(ii)) 43 25 8 Loss on bond redemption (see note 4(b)(iv)) – 101 – Acquisition of RAI (see note 4(b)(i)) 153 – – Fair value changes on derivative financial instruments and hedged items (149 ) (458 ) (245 ) Hedge ineffectiveness (see note 4(b)(iii)) 9 – – Exchange differences on financial liabilities 47 363 135 Finance costs 1,197 681 584 Interest and dividend income (84 ) (68 ) (79 ) Hedge ineffectiveness (see note 4(b)(iii)) – (18 ) – Deemed gain related to the investment in Reynolds (see note 4(b)(vi)) – – (601 ) Exchange differences on financial assets (19 ) 42 34 Finance income (103 ) (44 ) (646 ) Net finance costs/(income) 1,094 637 (62 )

Associates and joint ventures (

Associates and joint ventures (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Associates And Joint Ventures [Abstract]
Schedule of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method	2017 2016 2015 Total £m Group’s share £m Total £m Group’s share £m Total £m Group’s share £m Revenue 14,085 4,794 16,491 5,997 11,186 4,215 Profit from operations* 4,342 24,854 9,379 3,740 6,117 2,391 Net finance costs (279 ) (116 ) (477 ) (200 ) (335 ) (139 ) Profit on ordinary activities before taxation 4,063 24,738 8,902 3,540 5,782 2,252 Taxation on ordinary activities (1,441 ) (522 ) (3,280 ) (1,308 ) (2,545 ) (1,013 ) Profit on ordinary activities after taxation 2,622 24,216 5,622 2,232 3,237 1,239 Non-controlling interests (22 ) (7 ) (17 ) (5 ) (12 ) (3 ) Post-tax results of associates and joint ventures 2,600 24,209 5,605 2,227 3,225 1,236 Comprised of: – adjusted share of post-tax results of associates and joint ventures 2,785 1,012 3,461 1,327 2,501 943 – issue of shares and change in shareholding 98 29 36 11 74 22 – gain on deemed divestment of RAI – 23,288 – – – – – gain on disposal of assets – – 2,231 941 879 371 – other (283 ) (120 ) (123 ) (52 ) (229 ) (100 ) 2,600 24,209 5,605 2,227 3,225 1,236 * The gain on deemed divestment of RAI is recognised in the Group’s share of associates profit from operations.
Summary of Group's Share of the Result of Associates and Joint Ventures	The Group’s share of the results of associates and joint ventures is shown in the table below. 2017 2016 2015 Group’s share £m Group’s share £m Group’s share £m Profit on ordinary activities after taxation – attributable to owners of the Parent 24,209 2,227 1,236 Other comprehensive income: Differences on exchange (923 ) 1,425 336 Net fair value gains/(losses) on available-for-sale investments 5 (10 ) 1 Actuarial gains relating to pensions and other post-retirement benefits (note 19) 25 20 3 Total comprehensive income (note 11) 23,316 3,662 1,576
Summary of Financial Information of the Group's Associates and Joint Ventures	Summarised financial information of the Group’s associates and joint ventures is shown below. 2017 RAI* £m ITC £m Others £m Total £m Revenue 5,525 6,607 1,953 14,085 Profit on ordinary activities before taxation 2,017 2,054 (8 ) 4,063 Post-tax results of associates and joint ventures 1,261 1,362 (23 ) 2,600 Other comprehensive income (595 ) (135 ) (8 ) (738 ) Total comprehensive income 666 1,227 (31 ) 1,862 2016 RAI £m ITC £m Others £m Total £m Revenue 9,224 5,350 1,917 16,491 Profit on ordinary activities before taxation 7,111 1,743 48 8,902 Post-tax results of associates and joint ventures 4,457 1,114 34 5,605 Other comprehensive income 3,125 712 (178 ) 3,659 Total comprehensive income 7,582 1,826 (144 ) 9,264 2015 RAI £m ITC £m Others £m Total £m Revenue 6,986 3,839 361 11,186 Profit on ordinary activities before taxation 4,250 1,505 27 5,782 Post-tax results of associates and joint ventures 2,203 1,005 17 3,225 Other comprehensive income 684 43 (24 ) 703 Total comprehensive income 2,887 1,048 (7 ) 3,928

Taxation on ordinary activiti43

Taxation on ordinary activities (Tables)	12 Months Ended
	Dec. 31, 2017
Major Components Of Tax Expense Income [Abstract]
Summary of Taxation on Ordinary Activities	(a) Summary of taxation on ordinary activities 2017 £m 2016 £m 2015 £m UK corporation tax 26 7 5 Overseas tax 1,617 1,395 1,324 Comprising: – current year tax expense 1,615 1,382 1,317 – adjustments in respect of prior periods 2 13 7 Total current tax 1,643 1,402 1,329 Deferred tax (9,756 ) 4 4 Comprising: – deferred tax relating to origination and reversal of temporary differences (136 ) 4 (11 ) – deferred tax relating to changes in tax rates (9,620 ) – 15 (8,113 ) 1,406 1,333
Summary of Factors Affecting Taxation Charge	The taxation charge differs from the standard 19% (2016: 20%; 2015: 20%) rate of corporation tax in the UK. The major causes of this difference are listed below: 2017 2016 2015 £m % £m % £m % Profit before tax 29,591 6,245 5,855 Less: share of post-tax results of associates and joint ventures (see note 5) (24,209 ) (2,227 ) (1,236 ) 5,382 4,018 4,619 Tax at 19% (2016: 20%; 2015: 20%) on the above 1,023 19.0 804 20.0 924 20.0 Factors affecting the tax rate: Tax at standard rates other than UK corporation tax rate 392 7.3 93 2.3 231 5.0 Other national tax charges 119 2.2 74 1.9 77 1.7 Permanent differences 40 0.7 143 3.6 (147 ) (3.2 ) Oversea tax on distributions 25 0.5 41 1.0 28 0.6 Overseas withholding taxes 191 3.5 200 5.0 145 3.1 Double taxation relief on UK profits (29 ) (0.5 ) (8 ) (0.2 ) (6 ) (0.1 ) (Utilised)/unutilised tax losses (38 ) (0.7 ) 32 0.8 32 0.7 Adjustments in respect of prior periods 2 – 13 0.3 7 0.2 Deferred tax relating to changes in tax rates (9,620 ) (178.7 ) – – 15 0.3 Deemed US repatriation tax 34 0.6 – – – – Release of deferred tax on unremitted earnings of associates (180 ) (3.3 ) – – – – Additional net deferred tax (credits)/charges (72 ) (1.3 ) 14 0.3 27 0.6 (8,113 ) (150.7 ) 1,406 35.0 1,333 28.9
Summary of Tax on Items Recognised Directly in Other Comprehensive Income	(f) Tax on items recognised directly in other comprehensive income 2017 £m 2016 £m 2015 £m Current tax (4 ) (53 ) 7 Deferred tax (133 ) 70 (9 ) (Charged)/credited to other comprehensive income (137 ) 17 (2 )

Earnings per share (Tables)

Earnings per share (Tables)	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Summary of Earnings Per Share	2017 2016 2015 Earnings £m Weighted average number of shares m Earnings per share pence Earnings £m Weighted average number of shares m Earnings per share pence Earnings £m Weighted average number of shares m Earnings per share pence Basic earnings per share (ordinary shares of 25p each) 37,533 2,044 1,836.3 4,648 1,858 250.2 4,290 1,858 230.9 Share options – 7 (6.3 ) – 7 (1.0 ) – 5 (0.6 ) Diluted earnings per share 37,533 2,051 1,830.0 4,648 1,865 249.2 4,290 1,863 230.3
Summary of Adjusted Earnings Per Share	Earnings have been affected by a number of adjusting items, which are described in notes 3 to 6. Adjusting items are significant items in the profit from operations, net finance costs, taxation and the Group’s share of the post-tax results of associates and joint ventures which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance. The Group believes that these items are useful to users of the Group financial statements in helping them to understand the underlying business performance. To illustrate the impact of these items, an adjusted earnings per share calculation is shown below. Diluted 2017 2016 2015 Notes Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Diluted earnings per share 37,533 1,830.0 4,648 249.2 4,290 230.3 Effect of restructuring and integration costs 3(e) 600 29.3 603 32.3 367 19.7 Tax and non-controlling interests on restructuring and integration costs (133 ) (6.5 ) (90 ) (4.8 ) (74 ) (4.0 ) Effect of amortisation and impairment of trademarks and similar intangibles 3(f) 383 18.7 149 8.0 65 3.5 Tax on amortisation and impairment of trademarks and similar intangibles (90 ) (4.4 ) (32 ) (1.7 ) (9 ) (0.5 ) Effect of associates' adjusting items net of tax 5(a) (23,197 ) (1,131.0 ) (900 ) (48.3 ) (293 ) (15.7 ) Other adjusting items 3(h) 534 26.0 53 2.9 – – Tax effect on other adjusting items (184 ) (9.0 ) (5 ) (0.3 ) – – Deferred tax relating to changes in tax rates 6(c) (9,586 ) (467.4 ) – – – – Release of deferred tax on unremitted earnings from associates 6(c) (180 ) (8.8 ) – – – – Effect of Fox River 3(g) – – 20 1.1 – – Effect of Flintkote 3(i) – – – – 3 0.2 Effect of deemed gain related to investment in RAI 4(b) – – – – (601 ) (32.3 ) Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) 6(d) – – 61 3.3 22 1.2 Effect of interest on FII GLO settlement and other 4(b) 43 2.1 25 1.3 8 0.4 Effect of adjusting finance costs in relation to acquisition of RAI 4(b) 153 7.5 – – – – Tax Effect of adjusting finance costs in relation to acquisition of RAI (49 ) (2.4 ) – – – – Effect of certain costs and fees related to the acquisition of NCI in Souza Cruz and investment in RAI 4(b) – – – – 104 5.6 Effect of hedge ineffectiveness 4(b) 9 0.4 (18 ) (1.0 ) – – Tax effect on hedge ineffectiveness (2 ) (0.1 ) – – – – Effect of US bond buy back 4(b) – – 101 5.5 – – Adjusted earnings per share (diluted) 5,834 284.4 4,615 247.5 3,882 208.4 Basic 2017 2016 2015 Notes Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Basic earnings per share 37,533 1,836.3 4,648 250.2 4,290 230.9 Effect of restructuring and integration costs 3(e) 600 29.4 603 32.4 367 19.7 Tax and non-controlling interests on restructuring and integration costs (133 ) (6.5 ) (90 ) (4.9 ) (74 ) (4.0 ) Effect of amortisation and impairment of trademarks and similar intangibles 3(f) 383 18.7 149 8.0 65 3.5 Tax on amortisation and impairment of trademarks and similar intangibles (90 ) (4.4 ) (32 ) (1.7 ) (9 ) (0.5 ) Effect of associates' adjusting items net of tax 5(a) (23,197 ) (1,134.9 ) (900 ) (48.4 ) (293 ) (15.8 ) Other adjusting items 3(h) 534 26.1 53 2.9 – – Tax effect on other adjusting items (184 ) (9.0 ) (5 ) (0.3 ) – – Deferred tax relating to changes in tax rates 6(c) (9,586 ) (469.0 ) – – – – Release of deferred tax on unremitted earnings from associates 6(c) (180 ) (8.8 ) – – – – Effect of Fox River 3(g) – – 20 1.1 – – Effect of Flintkote 3(i) – – – – 3 0.2 Effect of deemed gain related to investment in RAI 4(b) – – – – (601 ) (32.3 ) Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) 6(d) – – 61 3.3 22 1.2 Effect of interest on FII GLO settlement and other 4(b) 43 2.1 25 1.3 8 0.4 Effect of adjusting finance costs in relation to acquisition of RAI 4(b) 153 7.5 – – – – Tax Effect of adjusting finance costs in relation to acquisition of RAI (49 ) (2.4 ) – – – – Effect of certain costs and fees related to the acquisition of NCI in Souza Cruz and investment in RAI 4(b) – – – – 104 5.6 Effect of hedge ineffectiveness 4(b) 9 0.4 (18 ) (1.0 ) – – Tax effect on hedge ineffectiveness (2 ) (0.1 ) – – – – Effect of US bond buy back 4(b) – – 101 5.5 – – Adjusted earnings per share (basic) 5,834 285.4 4,615 248.4 3,882 208.9
Summary of Headline Earnings Per Share	The presentation of headline earnings per share, as an alternative measure of earnings per share, is mandated under the JSE Listing Requirements. It is calculated in accordance with Circular 2/2015 ‘Headline Earnings’, as issued by the South African Institute of Chartered Accountants. Diluted 2017 2016 2015 Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Diluted earnings per share 37,533 1,830.0 4,648 249.2 4,290 230.3 Effect of impairment of intangibles, property, plant and equipment and assets held for sale 179 8.6 126 6.8 27 1.4 Tax and non-controlling interests on impairment of intangibles and property, plant and equipment (35 ) (1.7 ) (35 ) (1.9 ) (6 ) (0.3 ) Effect of gains on disposal of property, plant and equipment and held-for-sale assets (48 ) (2.3 ) (59 ) (3.2 ) (60 ) (3.2 ) Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets 13 0.6 30 1.6 19 1.0 Gain on deemed disposal of RAI associate (23,288 ) (1,135.4 ) – - – - Write off of investment in associate 27 1.3 Effect of gains reclassified from the available-for-sale reserve – – – - (10 ) (0.6 ) Tax and non-controlling interests on gains reclassified from the available-for-sale reserve – – – - 3 0.2 Share of associates' impairment losses and non-current investments – – – - 17 0.9 Share of associates' gains on disposal of assets – – (941 ) (50.4 ) (371 ) (19.9 ) Tax effect of associates' disposal of assets – – 61 3.3 22 1.2 Issue of shares and change in shareholding in associate (29 ) (1.4 ) (11 ) (0.6 ) (22 ) (1.2 ) Headline earnings per share (diluted) 14,352 699.7 3,819 204.8 3,909 209.8 Basic 2017 2016 2015 Earnings £m Earnings per share pence Earnings £m Earnings per share pence Earnings £m Earnings per share pence Basic earnings per share 37,533 1,836.3 4,648 250.2 4,290 230.9 Effect of impairment of intangibles, property, plant and equipment and assets held for sale 179 8.7 126 6.8 27 1.4 Tax and non-controlling interests on impairment of intangibles and property, plant and equipment (35 ) (1.7 ) (35 ) (1.9 ) (6 ) (0.3 ) Effect of gains on disposal of property, plant and equipment and held-for-sale assets (48 ) (2.3 ) (59 ) (3.2 ) (60 ) (3.2 ) Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets 13 0.6 30 1.6 19 1.0 Gain on deemed disposal of RAI associate (23,288 ) (1,139.3 ) – - – - Write off of investment in associate 27 1.3 – - – - Effect of gains reclassified from the available-for-sale reserve – – – - (10 ) (0.6 ) Tax and non-controlling interests on gains reclassified from the available-for-sale reserve – – – - 3 0.2 Share of associates' impairment losses and non-current investments – – – - 17 0.9 Share of associates' gains on disposal of assets – – (941 ) (50.6 ) (371 ) (19.9 ) Tax effect of associates' disposal of assets – – 61 3.3 22 1.2 Issue of shares and change in shareholding in associate (29 ) (1.4 ) (11 ) (0.6 ) (22 ) (1.2 ) Headline earnings per share (basic) 14,352 702.2 3,819 205.6 3,909 210.4

Dividends and other appropria45

Dividends and other appropriations (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Dividends [Abstract]
Summary of Detailed Information About Dividends	2017 2016 2015 Pence per share £m Pence per share £m Pence per share £m Ordinary shares Interim 2017 paid 8 February 2018 43.6 1,004 2017 paid 28 September 2017 56.5 1,284 2016 paid 28 September 2016 51.3 961 2015 paid 30 September 2015 49.4 908 Final 2016 paid 4 May 2017 118.1 2,181 2015 paid 5 May 2016 104.6 1,949 2014 paid 7 May 2015 100.6 1,862 218.2 4,469 155.9 2,910 150.0 2,770

Intangible assets (Tables)

Intangible assets (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Intangible Assets [Abstract]
Schedule of Movement In Intangible Assets	2017 Goodwill £m Computer software £m Trademarks and similar intangibles £m Assets in the course of development £m Total £m 1 January Cost 11,023 1,054 1,255 60 13,392 Accumulated amortisation and impairment (616 ) (659 ) (1,275 ) Net book value at 1 January 11,023 438 596 60 12,117 Differences on exchange (1,189 ) (3 ) (2,669 ) – (3,861 ) Additions – internal development – – – 87 87 – acquisitions (note 24) 34,313 33 75,488 4 109,838 – separately acquired – 29 98 – 127 Reallocations – 80 – (80 ) – Amortisation charge – (88 ) (268 ) – (356 ) Impairment – (42 ) (125 ) – (167 ) 31 December Cost 44,147 1,119 74,136 71 119,473 Accumulated amortisation and impairment (672 ) (1,016 ) (1,688 ) Net book value at 31 December 44,147 447 73,120 71 117,785 2016 Goodwill £m Computer software £m Trademarks and similar intangibles £m Assets in the course of development £m Total £m 1 January Cost 9,324 918 1,015 180 11,437 Accumulated amortisation and impairment (569 ) (432 ) (1,001 ) Net book value at 1 January 9,324 349 583 180 10,436 Differences on exchange 1,690 2 96 7 1,795 Additions – internal development – 11 – 49 60 – acquisitions (note 24) 9 – 33 – 42 – separately acquired – 1 21 – 22 Reallocations – 147 29 (176 ) – Amortisation charge – (72 ) (133 ) – (205 ) Impairment – – (33 ) – (33 ) 31 December Cost 11,023 1,054 1,255 60 13,392 Accumulated amortisation and impairment (616 ) (659 ) (1,275 ) Net book value at 31 December 11,023 438 596 60 12,117
Schedule of Cash Generating Unit	2017 2016 Carrying amount £m Pre-tax discount rate % Carrying amount £m Pre-tax discount rate % Cash Generating Unit RAI 33,062 7.7 – – Canada 2,367 7.5 2,420 8.2 Western Europe 4,033 7.3 3,891 8.6 Eastern Europe 980 8.1 967 8.8 South Africa 661 9.6 656 10.1 Australia 775 7.9 785 8.6 Singapore 591 6.6 598 7.2 Malaysia 431 8.3 425 8.6 Other 1,247 1,281 Total 44,147 11,023

Property, plant and equipment (

Property, plant and equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Property Plant And Equipment [Abstract]
Schedule of Property, Plant and Equipment	Notes on the Accounts continued 2017 Freehold property £m Leasehold property £m Plant and equipment £m Assets in the course of construction £m Total £m 1 January Cost 1,163 239 5,022 725 7,149 Accumulated depreciation and impairment (360 ) (116 ) (2,991 ) (21 ) (3,488 ) Net book value at 1 January 803 123 2,031 704 3,661 Differences on exchange (33 ) (11 ) (117 ) (49 ) (210 ) Additions – acquisitions (note 24) 349 4 626 62 1,041 – separately acquired 23 – 47 753 823 Reallocations (5 ) 35 523 (553 ) – Depreciation (29 ) (7 ) (352 ) – (388 ) Impairment (1 ) (1 ) (10 ) – (12 ) Disposals (4 ) – (12 ) – (16 ) Net reclassifications as held-for-sale (17 ) – – – (17 ) 31 December Cost 1,455 267 5,552 917 8,191 Accumulated depreciation and impairment (369 ) (124 ) (2,816 ) – (3,309 ) Net book value at 31 December 1,086 143 2,736 917 4,882 10 Property, plant and equipment continued 2016 Freehold property £m Leasehold property £m Plant and equipment £m Assets in the course of construction £m Total £m 1 January Cost 944 256 3,976 617 5,793 Accumulated depreciation and impairment (288 ) (126 ) (2,343 ) (15 ) (2,772 ) Net book value at 1 January 656 130 1,633 602 3,021 Differences on exchange 79 6 263 77 425 Additions – separately acquired 13 4 168 470 655 Reallocations 76 6 358 (440 ) – Depreciation (20 ) (9 ) (308 ) – (337 ) Impairment - (5 ) (71 ) (4 ) (80 ) Disposals 3 (4 ) (11 ) (1 ) (13 ) Net reclassifications as held-for-sale (4 ) (5 ) (1 ) – (10 ) 31 December Cost 1,163 239 5,022 725 7,149 Accumulated depreciation and impairment (360 ) (116 ) (2,991 ) (21 ) (3,488 ) Net book value at 31 December 803 123 2,031 704 3,661 1 BAT Annual Report and Form 20-F 2017
Schedule of Cost of Freehold Land, Net Book Value of Leasehold Properties and Contracts Placed for Future Expenditure	2017 £m 2016 £m Cost of freehold land within freehold property on which no depreciation is provided 253 202 Leasehold property comprises – net book value of long leasehold 104 80 – net book value of short leasehold 39 43 143 123 Contracts placed for future expenditure 85 29

Investments in associates and48

Investments in associates and joint ventures (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Summary of Investments In Associates And Joint Ventures	2017 £m 2016 £m 1 January 9,507 6,938 Total comprehensive income (note 5) 23,316 3,662 Dividends (688 ) (1,024 ) Share buy-backs – (24 ) Additions 13 – Reclassification of Reynolds American Inc. (RAI) (30,521 ) – Other equity movements (50 ) (45 ) 31 December 1,577 9,507 Non-current assets 1,127 17,831 Current assets 1,019 2,439 Non-current liabilities (67 ) (8,552 ) Current liabilities (502 ) (2,211 ) 1,577 9,507 Reynolds American Inc. (In 2016, the Group's share of the market value was £27,275 million) – 8,051 ITC Ltd. (Group's share of the market value is £11,036 million (2016: £10,430 million)) 1,527 1,394 Other listed associates (Group's share of the market value is £184 million (2016: £142 million)) 18 17 Unlisted associates 32 45 1,577 9,507
ITC Ltd.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Summary of Latest Published Information	2017 £m 2016 £m Non-current assets 3,738 3,730 Current assets 3,089 2,834 Non-current liabilities (240 ) (258 ) Current liabilities (1,446 ) (1,643 ) 5,141 4,663 Group's share of ITC Ltd. (2017: 29.71%; 2016: 29.89%) 1,527 1,394
Reynolds American Inc.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Summary of Latest Published Information	Reynolds American Inc. 2016 £m Non-current assets 34,046 Current assets 3,480 Non-current liabilities (20,089 ) Current liabilities (3,845 ) 13,592 Group's share of Reynolds American Inc. (42.2%) 5,733 Goodwill 2,318 Total Group's share of Reynolds American Inc. 8,051

Retirement Benefit Schemes (Tab

Retirement Benefit Schemes (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Defined Benefit Plans [Abstract]
Schedule of Defined Benefit Amounts Recognised in Balance Sheets	The amounts recognised in the balance sheet are determined as follows: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Present value of funded scheme liabilities (11,542 ) (7,139 ) (326 ) (16 ) (11,868 ) (7,155 ) Fair value of funded scheme assets 12,157 7,264 193 14 12,350 7,278 615 125 (133 ) (2 ) 482 123 Unrecognised funded scheme surpluses (23 ) (18 ) – – (23 ) (18 ) 592 107 (133 ) (2 ) 459 105 Present value of unfunded scheme liabilities (535 ) (371 ) (622 ) (105 ) (1,157 ) (476 ) 57 (264 ) (755 ) (107 ) (698 ) (371 ) The above net liability is recognised in the balance sheet as follows: – retirement benefit scheme liabilities (1,065 ) (719 ) (756 ) (107 ) (1,821 ) (826 ) – retirement benefit scheme assets 1,122 455 1 – 1,123 455 57 (264 ) (755 ) (107 ) (698 ) (371 ) The net liabilities of funded pension schemes by territory are as follows: Liabilities Assets Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m – US (5,022 ) – 4,640 – (382 ) – – UK (3,133 ) (3,529 ) 4,119 3,853 986 324 – Germany (998 ) (1,020 ) 945 872 (53 ) (148 ) – Canada (782 ) (796 ) 779 806 (3 ) 10 – Netherlands (769 ) (737 ) 819 777 50 40 – Switzerland (330 ) (370 ) 285 293 (45 ) (77 ) – Rest of Group (508 ) (687 ) 570 663 62 (24 ) Funded schemes (11,542 ) (7,139 ) 12,157 7,264 615 125 The movements in funded scheme assets are as follows: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Fair value of scheme assets at 1 January 7,264 6,076 14 10 7,278 6,086 Differences on exchange (170 ) 541 (7 ) 5 (177 ) 546 Settlements (1 ) (33 ) - – (1 ) (33 ) Interest on scheme assets 277 238 4 1 281 239 Company contributions 232 181 22 – 254 181 Contributions by scheme members 4 5 – – 4 5 Benefits paid (509 ) (360 ) (25 ) (1 ) (534 ) (361 ) Acquisition of subsidiaries 4,574 – 180 – 4,754 – Actuarial gains/(losses) 486 616 5 (1 ) 491 615 Fair value of scheme assets at 31 December 12,157 7,264 193 14 12,350 7,278 Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Equities ‒ listed 2,444 1,697 6 5 2,450 1,702 Equities ‒ unlisted 1,337 630 71 – 1,408 630 Bonds ‒ listed 5,272 3,948 14 4 5,286 3,952 Bonds ‒ unlisted 1,346 109 84 – 1,430 109 Other assets ‒ listed 682 403 9 – 691 403 Other assets ‒ unlisted 1,076 477 9 5 1,085 482 Fair value of scheme assets at 31 December 12,157 7,264 193 14 12,350 7,278
Schedule of Defined Benefit Amounts Recognised in Income Statement	The amounts recognised in the income statement are as follows: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Defined benefit schemes Service cost – current service cost 104 85 – 1 104 86 – past service cost/(credit) 11 (43 ) – (1 ) 11 (44 ) Net interest on the net defined benefit liability – interest on scheme liabilities 291 229 19 6 310 235 – interest on scheme assets (276 ) (230 ) (4 ) (1 ) (280 ) (231 ) – interest on unrecognised funded scheme surpluses 2 2 – – 2 2 132 43 15 5 147 48 Defined contribution schemes 68 53 – – 68 53 Total amount recognised in the income statement (note 3(a)) 200 96 15 5 215 101 The movements in scheme liabilities are as follows: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Present value at 1 January 7,510 6,220 120 100 7,630 6,320 Differences on exchange (199 ) 574 (35 ) 22 (234 ) 597 Current service cost 105 88 2 1 107 89 Past service cost/(credit) 4 (44 ) – – 4 (44 ) Settlements 7 (33 ) – (1 ) 7 (34 ) Interest on scheme liabilities 292 238 19 6 311 244 Contributions by scheme members 3 4 – – 3 4 Benefits paid (523 ) (381 ) (31 ) (8 ) (554 ) (389 ) Acquisition of subsidiaries 5,211 – 882 – 6,093 – Actuarial (gains)/losses – arising from changes in demographic assumptions (418 ) (7 ) (8 ) – (426 ) (7 ) – arising from changes in financial assumptions 92 911 9 1 101 912 Experience gains (7 ) (61 ) (10 ) (1 ) (17 ) (62 ) Present value at 31 December 12,077 7,510 948 120 13,025 7,630 Scheme liabilities by scheme membership: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2017 £m 2016 £m 2017 £m 2016 £m Active members 1,928 1,358 69 22 1,997 1,380 Deferred members 1,394 1,306 3 2 1,397 1,308 Retired members 8,755 4,846 876 96 9,631 4,942 Present value at 31 December 12,077 7,510 948 120 13,025 7,630
Disclosure - Retirement Benefit Schemes - Summary of Movements in the Unrecognised Scheme Surpluses Recognised in Other Comprehensive Income	The movements in the unrecognised scheme surpluses, recognised in other comprehensive income, are as follows: Pension schemes Healthcare schemes Total 2017 £m 2016 £m 2015 £m 2017 £m 2016 £m 2015 £m 2017 £m 2016 £m 2015 £m Unrecognised funded scheme surpluses at 1 January (18 ) (11 ) (13 ) – – – (18 ) (11 ) (13 ) Differences on exchange 3 (4 ) 3 – – – 3 (4 ) 3 Interest on unrecognised funded scheme surpluses (2 ) (2 ) (1 ) – – – (2 ) (2 ) (1 ) Movement in year (note 19) (6 ) (1 ) – – – – (6 ) (1 ) – Unrecognised funded scheme surpluses at 31 December (23 ) (18 ) (11 ) – – – (23 ) (18 ) (11 )
Disclosure - Retirement Benefit Schemes - Summary of Actuarial Assumptions Rate for Valuations Plans	The principal actuarial assumptions (weighted to reflect individual scheme differences) used in the following principal countries are shown below. In both years, discount rates are determined by reference to normal yields on high quality corporate bonds at the balance sheet date. For countries where there is not a deep market in such corporate bonds, the yield on government bonds is used. 2017 2016 USA UK Germany Canada Netherlands Switzerland USA UK Germany Canada Netherlands Switzerland Rate of increase in salaries (%) 3.9 3.2 2.5 3.0 2.0 1.3 – 3.3 2.5 3.0 2.0 1.3 Rate of increase in pensions in payment (%) 2.5 3.2 1.8 Nil 1.2 Nil – 3.3 1.8 Nil 1.1 Nil Rate of increase in deferred pensions (%) – 2.2 1.8 Nil 1.2 – – 2.5 Nil Nil 1.1 – Discount rate (%) 3.7 2.5 1.9 3.3 2.0 0.6 – 2.6 1.7 3.7 1.9 0.6 General inflation (%) 2.5 3.2 1.8 2.0 2.0 1.0 – 3.3 1.8 2.0 2.0 1.0 2017 2016 USA UK Germany Canada Netherlands Switzerland USA UK Germany Canada Netherlands Switzerland Weighted average duration of liabilities (years) 11.3 16.9 13.7 11.0 17.8 13.5 – 18.2 14.0 11.2 18.3 13.4 12 Retirement benefit schemes continued Mortality assumptions are subject to regular review. The principal schemes used the following tables: US UK 2017: 2016: 2017: 2016: RP-2017 mortality tables without collar or amounts adjusted projected with MP-2017 generational projection Not applicable S2PA (YOB) with the CMI (2016) improvement model with a 1.25% longterm improvement rate 91.5% S1NA (year of birth) table with the Continuous Mortality Investigation (2013) model with a 1.75% long-term improvement rate Germany Heubeck tables 2005G (both years) Canada CPM-2014 Private Table (both years) Netherlands AG Prognosetafel 2016 (both years) Switzerland 2017: LPP/BVG 2015 base table with CMI projection factors for mortality improvements with a 1.5% long-term improvement rate 2016: LPP/BVG 2015 Generational Based on the above, the weighted average life expectancy, in years, for mortality tables used to determine benefit obligations is as follows: US UK Germany Canada Netherlands Switzerland Male Female Male Female Male Female Male Female Male Female Male Female 31 December 2016 Member age 65 (current life expectancy) – – 23.8 26.4 19.1 23.2 21.3 23.7 20.6 24.7 22.3 24.4 Member age 45 (life expectancy at age 65) – – 26.5 29.2 21.8 25.7 22.4 24.7 23.1 26.9 24.2 26.3 31 December 2017 Member age 65 (current life expectancy) 20.7 22.7 22.7 24.2 19.3 23.3 21.4 23.8 20.8 24.8 21.7 23.7 Member age 45 (life expectancy at age 65) 22.3 24.2 24.3 25.5 21.9 25.8 22.5 24.8 23.3 27.0 23.5 25.5 Valuation of retirement benefit schemes involves judgements about uncertain future events. Sensitivities in respect of the key assumptions used to measure the principal pension schemes as at 31 December 2017 are set out below. These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation, with the exception of the sensitivity to inflation which incorporates the impact of certain correlating assumptions such as salary increases. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation, while asset values also change, and the impacts may offset to some extent. 1 year increase £m 1 year decrease £m 0.25 percentage point increase £m 0.25 percentage point decrease £m Average life expectancy – increase/(decrease) of scheme liabilities 373 (373 ) Rate of inflation – increase/(decrease) of scheme liabilities 191 (179 ) Discount rate – (decrease)/increase of scheme liabilities (363 ) 384

Deferred tax (Tables)

Deferred tax (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Abstract]
Summary of Reconciliation of Net Deferred Tax Assets/(Liabilities)	Net deferred tax assets/(liabilities) comprise: Stock relief £m Excess of capital allowances over depreciation £m Tax losses £m Undistributed earnings of associates and subsidiaries £m Retirement benefits £m Trademarks £m Other temporary differences £m Total £m At 1 January 2017 31 (58 ) 89 (392 ) 117 (95 ) 92 (216 ) Differences on exchange 2 15 (6 ) 13 (12 ) 862 (22 ) 852 Subsidiaries acquired (note 24) (375 ) (234 ) – – 514 (28,091 ) 1,115 (27,071 ) Credited/(charged) to the income statement 180 19 30 138 10 66 (307 ) 136 Credited/(charged) relating to changes in tax rates 71 84 – – (194 ) 9,935 (276 ) 9,620 (Charged)/credited to other comprehensive income – – – – (171 ) – 38 (133 ) At 31 December 2017 (91 ) (174 ) 113 (241 ) 264 (17,323 ) 640 (16,812 ) At 1 January 2016 30 (132 ) 53 (255 ) 48 (108 ) 127 (237 ) Differences on exchange 6 (18 ) 13 (41 ) 4 (20 ) 17 (39 ) Subsidiaries acquired (note 24) – (6 ) – – – – – (6 ) (Charged)/credited to the income statement (5 ) 98 23 (96 ) 1 33 (58 ) (4 ) Credited to other comprehensive income – – – – 64 – 6 70 At 31 December 2016 31 (58 ) 89 (392 ) 117 (95 ) 92 (216 )

Trade and Other Receivables (Ta

Trade and Other Receivables (Tables)	12 Months Ended
	Dec. 31, 2017
Trade And Other Receivables [Abstract]
Summary of trade and other receivables	2017 £m 2016 £m Trade receivables 3,306 2,696 Loans and other receivables 1,214 1,619 Prepayments and accrued income 289 168 4,809 4,483 Current 4,053 3,884 Non-current 756 599 4,809 4,483
Summary of trade and other receivables reported in balance sheet net of allowances	Trade and other receivables have been reported in the balance sheet net of allowances as follows: 2017 £m 2016 £m Gross trade and other receivables 4,894 4,570 Allowance account (85 ) (87 ) Net trade and other receivables per balance sheet 4,809 4,483
Summary of movements in allowance account	The movements in the allowance account are as follows: 2017 £m 2016 £m 1 January 87 51 Differences on exchange 4 11 Provided in the year 16 26 Amounts reversed during the year (22 ) (1 ) 31 December 85 87
Summary of aged analysis of trade receivables	The aged analysis of these trade receivables is as follows: 2017 £m 2016 £m Less than three months 147 39 Between three and six months 12 11 Between six months and one year 20 7 Greater than one year 10 3

Available-for-sale investments

Available-for-sale investments (Tables)	12 Months Ended
	Dec. 31, 2017
Availableforsale Financial Assets [Abstract]
Schedule of Available-for-sale Investments	2017 £m 2016 £m 1 January 58 72 Differences on exchange – 10 Additions 90 4 Revaluations (27 ) – Disposals (14 ) (28 ) 31 December 107 58 Current 65 15 Non-current 42 43 107 58

Derivative Financial Instrume53

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Financial Assets And Liabilities [Line Items]
Summary of derivatives	2017 2016 Assets £m Liabilities £m Assets £m Liabilities £m Fair value hedges – interest rate swaps 97 14 179 14 – cross-currency swaps 263 – 261 – Cash flow hedges – interest rate swaps 1 – 2 – – cross-currency swaps 187 – 106 – – forward foreign currency contracts 82 73 120 118 Net investment hedges – forward foreign currency contracts 85 39 23 233 Held-for-trading* – interest rate swaps 68 77 71 90 – cross-currency swaps – – 173 174 – forward foreign currency contracts 35 31 36 39 Total 818 234 971 668 Current 228 155 375 549 Non-current 590 79 596 119 818 234 971 668 Derivatives – in respect of net debt 640 117 809 300 – other 178 117 162 368 818 234 971 668 * IFRS requires derivatives which do not meet the tests for hedge accounting under IAS 39 to be classified as instruments held-for-trading with fair value change included in the income statement. These derivatives principally consist of forward foreign currency contracts which have not been designated as hedges due to their value changes offsetting with other components of net finance costs relating to financial assets and financial liabilities. The Group do not use derivatives for speculative purposes. All derivatives are undertaken for risk management purposes.
Summary of maturity dates of derivative financial instruments	The maturity dates of all gross-settled derivative financial instruments are as follows: 2017 2016 Assets Liabilities Assets Liabilities Inflow £m Outflow £m Inflow £m Outflow £m Inflow £m Outflow £m Inflow £m Outflow £m Within one year – forward foreign currency contracts 8,874 (8,702 ) 5,929 (6,059 ) 7,168 (6,943 ) 11,419 (12,024 ) – cross-currency swaps 56 (97 ) – – 391 (534 ) 499 (354 ) Between one and two years – forward foreign currency contracts 339 (328 ) 229 (230 ) 1,152 (1,104 ) 571 (630 ) – cross-currency swaps 89 (135 ) – – 37 (36 ) – – Between two and three years – forward foreign currency contracts – – – – 24 (22 ) 13 (12 ) – cross-currency swaps 60 (108 ) – – 66 (69 ) – – Between three and four years – cross-currency swaps 1,812 (1,782 ) – – 35 (40 ) – – Between four and five years – cross-currency swaps 32 (62 ) – – 802 (770 ) – – Beyond five years – cross-currency swaps 2,623 (2,366 ) – – 1,429 (1,244 ) – – 13,885 (13,580 ) 6,158 (6,289 ) 11,104 (10,762 ) 12,502 (13,020 )
Net-settled Derivative Financial Instruments
Disclosure Of Financial Assets And Liabilities [Line Items]
Summary of maturity dates of derivative financial instruments	The maturity dates of net-settled derivative financial instruments, which primarily relate to interest rate swaps, are as follows: 2017 2016 Assets Inflow £m Liabilities Outflow £m Assets Inflow £m Liabilities Outflow £m Within one year 44 18 102 29 Between one and two years 34 5 71 15 Between two and three years 28 6 64 14 Between three and four years 26 6 46 13 Between four and five years 12 7 26 11 Beyond five years 28 51 40 22 172 93 349 104

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2017
Classes Of Inventories [Abstract]
Summary of Inventories	2017 £m 2016 £m Raw materials and consumables 3,027 2,230 Finished goods and work in progress 2,692 3,312 Goods purchased for resale 145 251 5,864 5,793

Cash and cash equivalents (Tabl

Cash and cash equivalents (Tables)	12 Months Ended
	Dec. 31, 2017
Cash And Cash Equivalents [Abstract]
Schedule Representing Cash and Cash Equivalents	2017 £m 2016 £m Cash and bank balances 1,967 1,628 Cash equivalents 1,324 576 3,291 2,204
Summary of Cash and Cash Equivalents Denominated in the Functional Currency of the Subsidiary Undertaking or Other Currencies	Cash and cash equivalents are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below: 2017 £m 2016 £m Functional currency 2,842 1,748 US dollar 161 195 Euro 159 159 Other currency 129 102 3,291 2,204
Summary of Net Cash and Cash Equivalents Shown After Deducting Bank Overdrafts and Accrued Interest	In the Group cash flow statement, net cash and cash equivalents are shown after deducting bank overdrafts and accrued interest where applicable, as follows: 2017 £m 2016 £m Cash and cash equivalents as above 3,291 2,204 Less overdrafts and accrued interest (469 ) (553 ) Net cash and cash equivalents 2,822 1,651

Capital and reserves _ reconc56

Capital and reserves – reconciliation of movement in total equity (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Abstract]
Summary of Capital and Reserves – Reconciliation of Movement in Total Equity	Attributable to owners of the parent Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 1 January 2017 507 3,931 413 3,331 8,182 224 8,406 Comprehensive income and expense Profit for the year – – – 37,533 37,533 171 37,704 Differences on exchange – subsidiaries – – (3,085 ) – (3,085 ) (2 ) (3,087 ) – associates – – (923 ) – (923 ) – (923 ) Cash flow hedges – net fair value losses – – (263 ) – (263 ) (1 ) (264 ) – reclassified and reported in profit for the year – – 109 – 109 – 109 – reclassified and reported in net assets – – (16 ) – (16 ) – (16 ) Available-for-sale investments – net fair value losses in respect of subsidiaries – – (27 ) – (27 ) – (27 ) – net fair value gains in respect of associates net of tax – – 5 – 5 – 5 Net investment hedges – net fair value gains – – 425 – 425 – 425 – differences on exchange on borrowings – – (67 ) – (67 ) (1 ) (68 ) Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – 34 – 34 – 34 Retirement benefit schemes – – – net actuarial gains in respect of subsidiaries (note 12) – – – 832 832 1 833 – surplus recognition and minimum funding obligations in respect of subsidiaries (note 12) – – – (5 ) (5 ) (1 ) (6 ) – actuarial gains in respect of associates net of tax (note 5) – – – 25 25 – 25 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – (171 ) (171 ) – (171 ) Other changes in equity Employee share options – value of employee services – – – 105 105 – 105 – proceeds from shares issued – 5 – – 5 – 5 Dividends and other appropriations – ordinary shares (note 8) – – – (4,465 ) (4,465 ) – (4,465 ) – to non-controlling interests – – – – – (169 ) (169 ) Purchase of own shares – held in employee share ownership trusts – – – (205 ) (205 ) – (205 ) Shares issued – RAI acquisition (note 24(a)) 107 22,666 – – 22,773 – 22,773 Other movements – – – 3 3 – 3 31 December 2017 614 26,602 (3,395 ) 36,983 60,804 222 61,026 Attributable to owners of the parent Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 1 January 2016 507 3,927 (1,294 ) 1,754 4,894 138 5,032 Comprehensive income and expense Profit for the year – – – 4,648 4,648 191 4,839 Differences on exchange – subsidiaries – – 1,218 – 1,218 52 1,270 – associates – – 1,425 – 1,425 – 1,425 Cash flow hedges – net fair value gains – – 28 – 28 1 29 – reclassified and reported in profit for the year – – 38 – 38 – 38 – reclassified and reported in net assets – – (12 ) – (12 ) – (12 ) Available-for-sale investments – net fair value losses in respect of associates net of tax – – (10 ) – (10 ) – (10 ) Net investment hedges – net fair value losses – – (837 ) – (837 ) – (837 ) – differences on exchange on borrowings – – (124 ) – (124 ) – (124 ) Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – (19 ) – (19 ) – (19 ) Retirement benefit schemes – net actuarial losses in respect of subsidiaries (note 12) – – – (231 ) (231 ) 3 (228 ) – surplus recognition and minimum funding obligations in respect of subsidiaries (note 12) – – – – – (1 ) (1 ) – actuarial gains in respect of associates net of tax (note 5) – – – 20 20 – 20 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – 36 36 – 36 Other changes in equity Employee share options – value of employee services – – – 71 71 – 71 – proceeds from shares issued – 4 – – 4 – 4 Dividends and other appropriations – ordinary shares (note 8) – – – (2,910 ) (2,910 ) – (2,910 ) – to non-controlling interests – – – – – (156 ) (156 ) Purchase of own shares – held in employee share ownership trusts – – – (64 ) (64 ) – (64 ) Non-controlling interests - acquisitions (note 24(c)) – – – 4 4 (4 ) – Other movements – – – 3 3 – 3 31 December 2016 507 3,931 413 3,331 8,182 224 8,406 Attributable to owners of the parent Share capital £m Share premium, capital redemption and merger reserves £m Other reserves £m Retained earnings £m Total attributable to owners of the parent £m Non- controlling interests £m Total equity £m 1 January 2015 507 3,923 (498 ) 1,578 5,510 304 5,814 Comprehensive income and expense Profit for the year – – – 4,290 4,290 232 4,522 Differences on exchange – subsidiaries – – (953 ) – (953 ) (53 ) (1,006 ) – associates – – 336 – 336 – 336 Cash flow hedges – net fair value losses – – (98 ) – (98 ) (1 ) (99 ) – reclassified and reported in profit for the year – – 14 – 14 1 15 – reclassified and reported in net assets – – (45 ) – (45 ) – (45 ) Available-for-sale investments – net fair value gains in respect of subsidiaries – – 14 – 14 – 14 – reclassified and reported in profit for the year – – (10 ) – (10 ) – (10 ) – net fair value gains in respect of associates net of tax – – 1 – 1 – 1 Net investment hedges – net fair value losses – – (118 ) – (118 ) – (118 ) – differences on exchange on borrowings – – 42 – 42 – 42 Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – – 21 – 21 – 21 Retirement benefit schemes – net actuarial gains in respect of subsidiaries (note 12) – – – 283 283 – 283 – actuarial gains in respect of associates net of tax (note 5) – – – 3 3 – 3 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – (23 ) (23 ) – (23 ) Other changes in equity Employee share options – value of employee services – – – 50 50 – 50 – proceeds from shares issued – 4 – – 4 – 4 Dividends and other appropriations – ordinary shares (note 8) – – – (2,770 ) (2,770 ) – (2,770 ) – to non-controlling interests – – – – – (238 ) (238 ) Purchase of own shares – held in employee share ownership trusts – – – (46 ) (46 ) – (46 ) Non-controlling interests - acquisitions (note 24(c)) – – – (1,642 ) (1,642 ) (107 ) (1,749 ) Other movements – – – 31 31 – 31 31 December 2015 507 3,927 (1,294 ) 1,754 4,894 138 5,032
Summary of Composition of Share Premium Account, Capital Redemption Reserves and Merger Reserves	Share premium account, capital redemption reserves and merger reserves comprise: Share premium account £m Capital redemption reserves £m Merger reserves £m Total £m 31 December 2017 87 101 26,414 26,602 31 December 2016 82 101 3,748 3,931 31 December 2015 78 101 3,748 3,927 1 January 2015 74 101 3,748 3,923
Summary of Movements of Called Up Share Capital	Called up share capital Ordinary shares of 25p each Number of shares £m Allotted and fully paid 1 January 2017 2,027,019,508 506.75 Changes during the year – share option schemes 213,144 0.05 – Issue of shares RAI acquisition 429,045,762 107.26 31 December 2017 2,456,278,414 614.06 Allotted and fully paid 1 January 2016 2,026,866,724 506.71 Changes during the year – share option schemes 152,784 0.04 31 December 2016 2,027,019,508 506.75 Allotted and fully paid 1 January 2015 2,026,693,029 506.67 Changes during the year – share option schemes 173,695 0.04 31 December 2015 2,026,866,724 506.71
Summary of Movements in Other Reserves and Retained Earnings	Movements in other reserves and retained earnings (which are after deducting treasury shares) shown above comprise: Retained earnings Translation reserve £m Hedging reserve £m Available- for-sale reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 1 January 2017 (382 ) 4 39 179 573 413 (5,053 ) 8,384 Comprehensive income and expense Profit for the year – – – – – – – 37,533 Differences on exchange – subsidiaries (3,085 ) – – – – (3,085 ) – – – associates (923 ) – – – – (923 ) – – Cash flow hedges – net fair value losses – (263 ) – – – (263 ) – – – reclassified and reported in profit for the year – 109 – – – 109 – – – reclassified and reported in net assets – (16 ) – – – (16 ) – – Available-for-sale investments – net fair value losses in respect of subsidiaries – – (27 ) – – (27 ) – – – net fair value gains in respect of associates net of tax – – 5 – – 5 – – Net investment hedges – net fair value gains 425 – – – – 425 – – – differences on exchange on borrowings (67 ) – – – – (67 ) – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) – 34 – – – 34 – – Retirement benefit schemes – net actuarial gains in respect of subsidiaries (note 12) – – – – – – – 832 – surplus recognition and minimum funding obligations respect of subsidiaries (note 5) – – – – – – – (5 ) – actuarial gains in respect of associates net of tax (note 5) – – – – – – – 25 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – – – – – (171 ) Other changes in equity Employee share options – value of employee services – – – – – – – 105 Dividends and other appropriations – ordinary shares (note 8) – – – – – – – (4,465 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (205 ) – Other movements – – – – – – 63 (60 ) 31 December 2017 (4,032 ) (132 ) 17 179 573 (3,395 ) (5,195 ) 42,178 Retained earnings Translation reserve £m Hedging reserve £m Available- for-sale reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 1 January 2016 (2,062 ) (33 ) 49 179 573 (1,294 ) (5,049 ) 6,803 Comprehensive income and expense Profit for the year – – – – – – – 4,648 Differences on exchange – subsidiaries 1,218 – – – – 1,218 – – – associates 1,425 – – – – 1,425 – – Cash flow hedges – net fair value gains – 28 – – – 28 – – – reclassified and reported in profit for the year – 38 – – – 38 – – – reclassified and reported in net assets – (12 ) – – – (12 ) – – Available-for-sale investments – net fair value losses in respect of associates net of tax – – (10 ) – – (10 ) – – Net investment hedges – net fair value losses (837 ) – – – – (837 ) – – – differences on exchange on borrowings (124 ) – – – – (124 ) – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss (note 6(f)) (2 ) (17 ) – – – (19 ) – – Retirement benefit schemes – net actuarial losses in respect of subsidiaries (note 12) – – – – – – – (231 ) – actuarial gains in respect of associates net of tax (note 5) – – – – – – – 20 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss (note 6(f)) – – – – – – – 36 Other changes in equity Employee share options – value of employee services – – – – – – – 71 Dividends and other appropriations – ordinary shares (note 8) – – – – – – – (2,910 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (64 ) – Non-controlling interests - acquisitions (note 24(c)) – – – – – – – 4 Other movements – – – – – – 60 (57 ) 31 December 2016 (382 ) 4 39 179 573 413 (5,053 ) 8,384 Retained earnings Translation reserve £m Hedging reserve £m Available- for-sale reserve £m Revaluation reserve £m Other £m Total other reserves £m Treasury shares £m Other £m 1 January 2015 (1,369 ) 75 44 179 573 (498 ) (5,073 ) 6,651 Comprehensive income and expense Profit for the year – – – – – – – 4,290 Differences on exchange – subsidiaries (953 ) – – – – (953 ) – – – associates 336 – – – – 336 – – Cash flow hedges – net fair value losses – (98 ) – – – (98 ) – – – reclassified and reported in profit for the year – 14 – – – 14 – – – reclassified and reported in net assets – (45 ) – – – (45 ) – – Available-for-sale investments – net fair value gains in respect of subsidiaries – – 14 – – 14 – – – reclassified and reported in profit for the year – – (10 ) – – (10 ) – – – net fair values gains in respect of associates net of tax – – 1 – – 1 – – Net investment hedges – net fair value losses (118 ) – – – – (118 ) – – – differences on exchange on borrowings 42 – – – – 42 – – Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss – 21 – – – 21 – – Retirement benefit schemes – net actuarial losses in respect of subsidiaries (note 12) – – – – – – – 283 – actuarial losses in respect of associates net of tax (note 5) – – – – – – – 3 Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss – – – – – – – (23 ) Other changes in equity Employee share options – value of employee services – – – – – – – 50 Dividends and other appropriations – ordinary shares (note 8) – – – – – – – (2,770 ) Purchase of own shares – held in employee share ownership trusts – – – – – – (46 ) – Non-controlling interests - acquisitions (note 24(c)) – – – – – – – (1,642 ) Other movements – – – – – – 70 (39 ) 31 December 2015 (2,062 ) (33 ) 49 179 573 (1,294 ) (5,049 ) 6,803
Summary of Tax Attributable to Components of Other Comprehensive Income	The tax attributable to components of other comprehensive income is as follows: 2017 £m 2016 £m 2015 £m Translation reserve Net investment hedges – net fair value gains/(losses) – (2 ) – – (2 ) – Hedging reserve Cash flow hedges – net fair value losses/(gains) 34 (11 ) 38 – reclassified and reported in profit for the year – (6 ) (17 ) 34 (17 ) 21 Retained earnings – actuarial (gains)/losses in respect of subsidiaries (171 ) 36 (23 ) (171 ) 36 (23 ) Owners of the parent (137 ) 17 (2 ) Non-controlling interests – – – Total tax recognised in other comprehensive income for the year (note 6(f)) (137 ) 17 (2 )

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Detailed Information About Borrowings [Abstract]
Schedule of Detailed Information About Borrowings	Currency Maturity dates Interest rates 2017 £m 2016 £m Eurobonds Euro 2019 to 2045 0.4% to 4.9% 8,585 7,704 Euro 2018 to 2021 3m EURIBOR +50bps 1,326 341 UK sterling 2019 to 2055 1.8% to 7.3% 4,680 4,241 US dollar 2019 1.6% 482 527 Swiss franc 2021 to 2026 0.6% to 1.4% 498 526 Bonds issued pursuant to Rules under the US Securities Act (as amended) US dollar 2018 to 2047 1.9% to 8.1% 25,545 4,472 US dollar 2018 to 2022 USD 3m LIBOR + 51bps to 88bps 1,665 405 Bonds and notes 42,781 18,216 Commercial paper 1,200 254 Other loans 4,466 110 Bank loans 512 336 Bank overdrafts 469 553 Finance leases 22 26 49,450 19,495
Schedule of Detailed Information About Repayment of Borrowings	Borrowings are repayable as follows: Per balance sheet Contractual gross maturities 2017 £m 2016 £m 2017 £m 2016 £m Within one year 5,423 3,007 6,381 3,587 Between one and two years 2,344 1,391 3,609 1,870 Between two and three years 7,011 1,756 8,141 2,220 Between three and four years 2,913 1,577 4,034 1,961 Between four and five years 6,857 1,925 7,836 2,292 Beyond five years 24,902 9,839 34,842 12,560 49,450 19,495 64,843 24,490
Schedule of Analysis of Borrowings by Currency	Borrowings are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below: Functional currency £m US dollar £m UK sterling £m Euro £m Canadian dollar £m Other currencies £m Total £m 31 December 2017 Total borrowings 32,580 4,789 450 10,837 – 794 49,450 Effect of derivative financial instruments – cross-currency swaps 3,903 16 (450 ) (3,613 ) – (243 ) (387 ) – forward foreign currency contracts (1,142 ) 922 – (388 ) 215 388 (5 ) 35,341 5,727 – 6,836 215 939 49,058 31 December 2016 Total borrowings 5,088 5,524 – 8,066 – 817 19,495 Effect of derivative financial instruments – cross-currency swaps 1,866 18 – (1,895 ) – (255 ) (266 ) – forward foreign currency contracts (770 ) 524 – (547 ) 220 497 (76 ) 6,184 6,066 – 5,624 220 1,059 19,153
Schedule of Analysis of Borrowings by Interest Rate Changes	The exposure to interest rate changes when borrowings are re-priced is as follows: Within 1 year £m Between 1-2 years £m Between 2-3 years £m Between 3-4 years £m Between 4-5 years £m Beyond 5 years £m Total £m 31 December 2017 Total borrowings 12,516 2,325 4,321 1,941 4,332 24,015 49,450 Effect of derivative financial instruments – interest rate swaps 2,995 – (554 ) (533 ) (222 ) (1,686 ) – – cross-currency swaps 1,287 (17 ) – (775 ) – (882 ) (387 ) 16,798 2,308 3,767 633 4,110 21,447 49,063 31 December 2016 Total borrowings 3,753 624 1,756 1,576 1,925 9,861 19,495 Effect of derivative financial instruments – interest rate swaps 2,241 (202 ) (250 ) (1,119 ) (755 ) 85 – – cross-currency swaps 1,884 – – (17 ) – (2,133 ) (266 ) 7,878 422 1,506 440 1,170 7,813 19,229
Schedule of Analysis of Net Debt	The Group defines net debt as follows: 2017 £m 2016 £m Borrowings* 49,450 19,495 Derivatives in respect of net debt: – assets (note 16) (640 ) (809 ) – liabilities (note 16) 117 300 Cash and cash equivalents (note 18) (3,291 ) (2,204 ) Current available-for-sale investments (note 15) (65 ) (15 ) 45,571 16,767 * Borrowings as at 31 December 2017 include £947 million in respect of the purchase price adjustments relating to the acquisition of Reynolds.
Schedule of Analysis of Net Debt Movements	The movements in net debt are presented below: 2017 £m Opening balance Subsidiaries acquired Cash flow Foreign exchange, accrued interest and other Closing balance Borrowings 19,495 11,203 20,024 (1,272 ) 49,450 Derivatives in respect of net debt: – assets (note 16) (809 ) – 106 63 (640 ) – liabilities (note 16) 300 – (380 ) 197 117 Cash and cash equivalents (note 18) (2,204 ) (1,288 ) 57 144 (3,291 ) Current available-for-sale investments (note 15) (15 ) – (44 ) (6 ) (65 ) 16,767 9,915 19,763 (874 ) 45,571 2016 £m Opening balance Cash flow Foreign exchange, accrued interest and other Closing balance Borrowings 17,001 (252 ) 2,746 19,495 Derivatives in respect of net debt: – assets (note 16) (373 ) 258 (694 ) (809 ) – liabilities (note 16) 164 (22 ) 158 300 Cash and cash equivalents (note 18) (1,963 ) 157 (398 ) (2,204 ) Current available-for-sale investments (note 15) (35 ) 22 (2 ) (15 ) 14,794 163 1,810 16,767

Provisions for liabilities (Tab

Provisions for liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Other Provisions [Abstract]
Summary of Provisions Excluding Post-Retirement Benefits	Restructuring of existing businesses £m Employee related benefits £m Fox River £m Other provisions £m Total £m 1 January 2017 190 40 163 400 793 Differences on exchange 4 (3 ) – (22 ) (21 ) Subsidiaries acquired – – – 42 42 Provided in respect of the year 172 15 – 95 282 Utilised during the year (208 ) (12 ) (25 ) (98 ) (343 ) 31 December 2017 158 40 138 417 753 Analysed on the balance sheet as – current 87 24 22 266 399 – non-current 71 16 116 151 354 158 40 138 417 753 Restructuring of existing businesses £m Employee related benefits £m Fox River £m Other provisions £m Total £m 1 January 2016 89 38 160 282 569 Differences on exchange 15 8 – 46 69 Provided in respect of the year 120 14 20 150 304 Utilised during the year (34 ) (20 ) (17 ) (78 ) (149 ) 31 December 2016 190 40 163 400 793 Analysed on the balance sheet as – current 86 27 19 275 407 – non-current 104 13 144 125 386 190 40 163 400 793

Trade and other payables (Table

Trade and other payables (Tables)	12 Months Ended
	Dec. 31, 2017
Trade And Other Current Payables [Abstract]
Summary of Trade and Other Payables	2017 £m 2016 £m Trade payables 2,298 1,281 Duty, excise and other taxes 3,577 4,573 Accrued charges and deferred income 1,746 1,140 FII GLO deferred income (note 6(b)) 963 963 Social security and other taxation 50 21 Sundry payables 1,271 397 9,905 8,375 Current 8,847 7,335 Non-current 1,058 1,040 9,905 8,375

Financial instruments and ris60

Financial instruments and risk management (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Abstract]
Summary of Assets and Liabilities Measured at Fair Value	The following table presents the Group's financial assets and liabilities that are measured at fair value in accordance with IFRS 13 classification hierarchy: 2017 2016 Level 1 £m Level 2 £m Level 3 £m Total £m Level 1 £m Level 2 £m Level 3 £m Total £m Assets at fair value Available-for-sale investments (note 15) 91 – 16 107 15 – 43 58 Derivatives relating to – interest rate swaps (note 16) – 166 – 166 – 252 – 252 – cross-currency swaps (note 16) – 450 – 450 – 540 – 540 – forward foreign currency contracts (note 16) – 202 – 202 – 179 – 179 Assets at fair value 91 818 16 925 15 971 43 1,029 Liabilities at fair value Derivatives relating to – interest rate swaps (note 16) – 91 – 91 – 104 – 104 – cross-currency swaps (note 16) – – – – – 174 – 174 – forward foreign currency contracts (note 16) – 143 – 143 – 390 – 390 Liabilities at fair value – 234 – 234 – 668 – 668
Summary of Derivative Financial Asset and Liabilities Offsetting Arrangements	The gross fair value of derivative financial instruments as presented in the Group balance sheet, together with the Group's rights of offset associated with recognised financial assets and recognised financial liabilities subject to enforceable master netting arrangements and similar agreements, is summarised as follows: 2017 2016 Amount presented in the Group balance sheet* £m Related amounts not offset in the Group balance sheet £m Net amount £m Amount presented in the Group balance sheet* £m Related amounts not offset in the Group balance sheet £m Net amount £m Financial Assets – Derivative Financial Instruments (note 16) 818 (211 ) 607 971 (502 ) 469 Financial Liabilities – Derivative Financial Instruments (note 16) (234 ) 211 (23 ) (668 ) 502 (166 ) 584 – 584 303 – 303 * No financial instruments have been offset in the Group balance sheet.

Business combinations, dispos61

Business combinations, disposals and other changes in the Group (Tables)	12 Months Ended
	Dec. 31, 2017
Reynolds American Inc.
Disclosure Of Business Combinations [Line Items]
Schedule of Fair Values Assigned to the Asset Acquired and Liabilities Assumed on Acquisition Date	Notes on the Accounts continued 24 Business combinations, disposals and other changes in the Group continued The goodwill of £34,280 million on the acquisition of RAI, stated at the exchange rates ruling at the date of the transaction, arises as follows: Fair value £m Intangible assets 75,482 Property, plant and equipment 1,039 Deferred tax assets 293 Trade and other receivables 145 Inventories 1,751 Income tax asset 200 Cash and cash equivalents 1,285 Borrowings (11,197 ) Retirement benefit liabilities (1,339 ) Deferred tax liabilities (27,358 ) Other provisions for liabilities and charges (42 ) Trade and other payables (2,516 ) Income tax liability (108 ) Net identifiable assets acquired 37,635 Goodwill 34,280 Total 71,915 Consideration paid to Reynolds shareholders (57.8%) 41,770 Value attributable to BAT shareholding (42.2%) 30,145 Total 71,915 1 BAT Annual Report and Form 20-F 2017

Share-based Payments (Tables)

Share-based Payments (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Summary of Share-based Payment Expense	The amounts recognised in the income statement in respect of share-based payments were as follows: 2017 2016 2015 Equity- settled £m Cash- settled £m Equity- settled £m Cash- settled £m Equity- settled £m Cash- settled £m LTIP (note (a)) 56 3 25 6 1 3 DSBS (note (b)) 42 9 40 7 44 7 Other schemes 7 – 6 – 5 – Total recognised in the income statement (note 3(a)) 105 12 71 13 50 10
Summary of Share-based Payment Liability	The Group has recorded liabilities in respect of vested and unvested grants at the end of 2017 and 2016: 2017 2016 Vested £m Unvested £m Vested £m Unvested £m LTIP 0.3 9.1 1.1 8.9 DSBS 0.3 11.6 0.3 11.3 Total liability 0.6 20.7 1.4 20.2
Summary of Valuation Assumptions Used to Determine Fair Value of Share Options	Assumptions used in the Black-Scholes models to determine the fair value of share options at grant date were as follows: 2017 2016 LTIP DSBS LTIP DSBS Expected volatility (%) 18 18 18 17 Average expected term to exercise (years) 3.5 3.0 3.5 3.0 Risk-free rate (%) 0.3 0.3 0.6 0.6 Expected dividend yield (%) 3.2 3.2 3.6 3.7 Share price at date of grant (£) 52.11 52.11 42.34 40.08 Fair value at grant date (£) 41.04 47.27 26.53 35.82
Summary of Valuation Assumptions Used in Monte-Carlo Models	Market condition features were incorporated into the Monte-Carlo models for the total shareholder return elements of the LTIP, in determining fair value at grant date. Assumptions used in these models were as follows: 2017 2016 LTIP LTIP Average share price volatility FMCG comparator group (%) 19 19 Average correlation FMCG comparator group (%) 31 36
Long Term Incentive Plan
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Summary of Movements for Equity and Cash-Settled Share-based Awards	Details of the movements for the equity and cash-settled LTIP scheme during the years ended 31 December 2017 and 31 December 2016, were as follows: 2017 2016 Equity-settled Number of options in thousands Cash-settled Number of options in thousands Equity-settled Number of options in thousands Cash-settled Number of options in thousands Outstanding at start of year 5,337 407 5,225 414 Granted during the period 1,690 152 1,772 139 Acquired from RAI 904 – - - Exercised during the period (746 ) (65 ) (262 ) (77 ) Forfeited during the period (1,155 ) (116 ) (1,398 ) (69 ) Outstanding at end of year 6,030 378 5,337 407 Exercisable at end of year 653 7 148 23
Deferred Share Bonus Scheme
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Summary of Movements for Equity and Cash-Settled Share-based Awards	Details of the movements for the equity and cash-settled DSBS scheme during the years ended 31 December 2017 and 31 December 2016, were as follows: 2017 2016 Equity-settled Number of options in thousands Cash-settled Number of options in thousands Equity-settled Number of options in thousands Cash-settled Number of options in thousands Outstanding at start of year 3,225 423 3,395 451 Granted during the period 1,079 136 1,316 148 Exercised during the period (1,267 ) (165 ) (1,395 ) (161 ) Forfeited during the period (75 ) (12 ) (91 ) (15 ) Outstanding at end of year 2,962 382 3,225 423 Exercisable at end of year 61 5 35 4

Group Employees (Tables)

Group Employees (Tables)	12 Months Ended
	Dec. 31, 2017
Number And Average Number Of Employees [Abstract]
Summary of Average Number of Persons Employed by Group and Associates	2017 Number 2016 Number United States 2,168 - Asia-Pacific 13,293 13,002 Americas 15,929 14,691 Western Europe 16,644 13,444 EEMEA 12,559 11,569 Subsidiary undertakings 60,593 52,706 Associates 30,809 32,629 91,402 85,335

Related Party Disclosures (Tabl

Related Party Disclosures (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Transactions Between Related Parties [Abstract]
Summary of Transactions Between Related Parties	2017 £m 2016 £m 2015 £m Transactions – revenue 366 370 38 – purchases (218 ) (298 ) (270 ) – other net income 699 1,023 639 Amounts receivable at 31 December 40 270 190 Amounts payable at 31 December (1 ) (2 ) (20 )
Summary of Amounts Incurred by Entity for Provision of Key Management Personnel Services	2017 £m 2016 £m 2015 £m The total compensation for key management personnel, including Directors, was: – salaries and other short-term employee benefits 24 18 20 – post-employment benefits 5 3 4 – share-based payments 16 12 11 45 33 35 The following table shows the aggregate emoluments of the Directors of the Company. Executive Directors Chairman Non-Executive Directors Total 2017 £'000 2016 £'000 2015 £'000 2017 £'000 2016 £'000 2015 £'000 2017 £'000 2016 £'000 2015 £'000 2017 £'000 2016 £'000 2015 £'000 Salary; fees; benefits; incentives – salary 2,122 2,057 2,042 – – – - - - 2,122 2,057 2,042 – fees – – – 660 645 642 1,042 1,051 1,138 1,702 1,696 1,780 – taxable benefits 385 335 259 129 106 85 195 122 153 709 563 497 – short-term incentives 4,689 4,622 3,940 – – – - – – 4,689 4,622 3,940 – long-term incentives 10,192 4,483 647 – – – - – – 10,192 4,483 647 Sub-total 17,388 11,497 6,888 789 751 727 1,237 1,173 1,291 19,414 13,421 8,906 Pension; other emoluments – pension 612 634 936 – – – – – – 612 634 936 – other emoluments 50 44 51 – – – – – – 50 44 51 Sub-total 662 678 987 – – – – – – 662 678 987 Total emoluments 18,050 12,175 7,875 789 751 727 1,237 1,173 1,291 20,076 14,099 9,893
Summary of Aggregate Gains on LTIP Shares Exercised	Aggregate gains on LTIP shares exercised in the year Award Exercised LTIP shares Exercise date Price per share (£) Aggregate gain (£) Nicandro Durante 28 Mar 2014 62,123 28 Mar 2017 52.11 3,237,230 Ben Stevens 28 Mar 2014 34,605 03 Apr 2017 52.92 1,831,297 LTIP - Value of awards 2014 Shares Price per share (£) 1 Face value (£) Nicandro Durante 135,052 32.58 4,399,994 Ben Stevens 75,230 32.58 2,450,993 1 For information only as awards are made as nil cost options. Sharesave - Aggregate Gains 2017 Award date Shares Exercise date Price per share (£) Aggregate gain (£) Nicandro Durante 28 Mar 2012 591 16 Oct 2017 48.49 13,667 Sharesave - Value of award 2012 Shares Price per share (£) Face value (£) Nicandro Durante 591 25.36 14,988

Contingent liabilities and fi65

Contingent liabilities and financial commitments (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Commitments And Contingencies [Line Items]
Operating Subsidiaries' Expenses and Payments under State Settlement Agreements	1. RAI's operating subsidiaries' expenses and payments under the State Settlement Agreements for 2015, 2016, 2017 and the projected expenses and payments for 2018 onwards are set forth below (in millions of US dollars)*: 2015 2016 2017 2018 2019 and thereafter Settlement expenses $2,403 $2,727 $2,856 – Settlement cash payments $2,166 $3,042 $4,612 – Projected settlement expenses $>3,000 $>3,000 Projected settlement cash payments $>1,000 $>3,000
Summary of Current Status of Litigation Cases	Canadian province Act pursuant to which Claim was brought Companies named as Defendants Current stage British Columbia Tobacco Damages and Health Care Costs Recovery Act 2000 Imperial Investments Industries RJR Companies Other former Rothmans Group companies All have been served. The defences of Imperial, the UK Companies and the RJR Companies have been filed, and document production and discoveries are ongoing. On 13 February 2017 the province delivered an expert report dated October 2016, quantifying its damages in the amount of CAD$118 billion. No trial date has been set. The federal government is seeking CAD$5 million jointly from all the defendants in respect of costs. New Brunswick Tobacco Damages and Health Care Costs Recovery Act 2006 Imperial, the UK Companies and RJR Companies have all been named as defendants and served. The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production and discoveries are substantially complete. Damages have been calculated by the province in the range of CAD$25-$60 billion from 1954 to 2060. Following a motion to set a trial date, the court has ordered that trial commence on 4 November 2019. Ontario Tobacco Damages and Health Care Costs Recovery Act 2009 Imperial the UK Companies and RJR Companies have all been named as defendants and served. This case is at an early case management stage. Imperial, the UK Companies and the RJR Companies have filed defences. The parties completed significant document production in summer of 2017 and discoveries are expected to commence in 2018. The province has stated its claim to be worth CAD$50 billion. No trial date has been set. Newfoundland and Labrador Tobacco Health Care Costs Recovery Act 2006 Imperial, the UK Companies and the RJR Companies have all been named as defendants and served. The case is under case management and Imperial, the UK Companies and the RJR Companies have filed defences. Damages have not been quantified by the province. No trial date has been set. Saskatchewan Tobacco Damages and Health Care Costs Recovery Act 2012 Imperial, the UK Companies and the RJR Companies have all been named as defendants and served. This case is at an early case management stage. Defences were filed by Imperial, the UK Companies and the RJR Companies and the matter will remain in abeyance for the time being. Damages have not been quantified by the province. No trial date has been set. Manitoba Tobacco Damages Health Care Costs Recovery Act 2006 Imperial, the UK Companies and RJR Companies have all been named as defendants and served. This case is at an early case management stage. Defences were filed by Imperial, the UK Companies and the RJR Companies and document production is underway. Damages have not been quantified by the province. No trial date has been set. Alberta Crown’s Right of Recovery Act 2009 Imperial, the UK Companies and RJR Companies have all been named as defendants and served. This case is at an early case management stage and Imperial, the UK Companies and the RJR Companies have filed defences. The province has stated its claim to be worth CAD$10 billion. No trial date has been set. Quebec Tobacco Related Damages and Health Care Costs Recovery Act 2005 Imperial, Investments, Industries, the RJR Companies and Carreras Rothmans Limited have been named as defendants and served. The case is at an early case management stage. Defences of Imperial, the UK Companies and the RJR Companies have been filed. Motions over admissibility of documents and damages discovery have been filed but not heard. The province is seeking CAD$60 billion. No trial date has been set. Prince Edward Island Tobacco Damages and Health Care Costs Recovery Act 2009 Imperial, the UK Companies and RJR Companies have all been named as defendants and served. This case is at an early case management stage. Defences were filed by Imperial, the UK Companies and the RJR Companies and the next step will be document production, which the parties have deferred for the time being. Damages have not been quantified by the province. No trial date has been set. Nova Scotia Tobacco Health Care Costs Recovery Act 2005 Imperial, the UK Companies and RJR Companies have all been named as defendants and served. This case is at an early case management stage. Defences were filed by Imperial, the UK Companies and the RJR Companies and the next step will be document production which the parties have deferred for the time being. Damages have not been quantified by the province. No trial date has been set.
Closed Litigation Matters Explanatory	1. The following matters on which the Company reported in the contingent liabilities and financial commitments note 28 to the Company's 2016 financial statements have been dismissed, concluded or resolved as noted below: Matter Jurisdiction Companies named as Defendants Description Disposition Ratcliff US (Seattle, Washington) Company Product liability asbestos matter Dismissed as to the Company effective 30 May 2017 Khosravi England Company, B.A.T (U.K and Export), B.A.T. Pars Company Alleged wrongdoing by former distributor Claim dismissed at first instance and permission to appeal refused. Georgian Competition Claim Georgia British American Tobacco Georgia Alleged breach of local tobacco control and competition laws Court of Appeal overturned the negative judgment and permission to appeal to the Supreme Court was refused.
Schedule of Total Future Minimum Lease Payments under Non-cancellable Operating Leases	Total future minimum lease payments under non-cancellable operating leases comprise leases where payments fall due: 2017 £m 2016 £m Property Within one year 75 45 Between one and five years 183 104 Beyond five years 117 50 375 199 Plant and equipment Within one year 32 18 Between one and five years 38 23 70 41
Engle Progeny Cases
Disclosure Of Commitments And Contingencies [Line Items]
Summary of Cases	Phase three trials/verdicts/judgments/appeals of individual Engle progeny cases 1 January 2015 to 31 December 2017: Total number of trials 107 Number of trials resulting in plaintiffs’ verdicts 49 Total damages awarded in final judgments against RJRT US$336,757,755 Amount of overall damages comprising ‘compensatory damages’ (approximately) US$159,170,680 (of overall US$336,757,755) Amount of overall damages comprising ‘punitive damages’ (approximately) US$177,587,075 (of overall US$336,757,755) Number of adverse judgments appealed by RJRT 39* Number of adverse judgments (not yet appealed), in which RJRT still has time to file an appeal 7 * Of the 39 adverse judgments appealed by RJRT: a. 21 appeals remain undecided in the District Courts of Appeal, one additional case has a decision but has a rehearing motion pending so the opinion is not final, one case has a rehearing time pending so opinion is not final, there are seven cases with petitions for review pending in the Florida Supreme Court and nil cases with petitions for review pending in the US Supreme Court; and b. nine were decided and/or closed. Of these nine appeals, five were affirmed in favour of plaintiff (further appeal time remains pending in one), one had the liability findings affirmed but was reversed for reinstatement of full compensatory damages amount (further appeal time remains pending), and two were reversed and the matter remanded to the trial court for a new trial on all issues (one has further appeal time running) and one was an appeal of the partial judgment which was subsequently dismissed. RJRT has paid damages to plaintiffs in three cases that were not appealed that are now closed. The total damages awarded may vary depending on the outcome of pending appeals.
Individual Cases
Disclosure Of Commitments And Contingencies [Line Items]
Summary of Cases	Individual Cases 28 Contingent liabilities and financial commitments c ontinued Case Type US Case Numbers 31 December 2017 US Case Numbers 31 December 2016 Change in Number Increase / (Decrease) Individual smoking and health cases 99 132 (33) West Virginia IPIC (number of plaintiffs)* 1 1 No Change Engle progeny cases (number of plaintiffs)** 2,569 (3,276) 2,822 (3,645) (253) (369) Broin II cases*** 2,321 2,406 (85) Filter cases**** 71 78 (7)

Interests in subsidiaries (Tabl

Interests in subsidiaries (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Significant Investments In Subsidiaries [Abstract]
Summary of Financial Information of Subsidiaries with Material Non-controlling Interests	Summarised financial information 2017 £m 2016 £m 2015 £m Revenue 253 334 422 Profit for the year 89 129 152 – Attributable to non-controlling interests 44 64 76 Total comprehensive income 87 146 136 – Attributable to non-controlling interests 43 73 68 Dividends paid to non-controlling interests (64 ) (59 ) (75 ) Summary net assets: Non-current assets 18 31 43 Current assets 101 103 74 Non-current liabilities (5 ) (4 ) (8 ) Current liabilities (120 ) (94 ) (99 ) Total equity at the end of the year (6 ) 36 10 – Attributable to non-controlling interests (3 ) 18 5 Net cash generated from operating activities 67 108 164 Net cash generated in investing activities 14 45 1 Net cash used in financing activities (86 ) (151 ) (161 ) Differences on exchange (1 ) 1 Increase/(decrease) in net cash and cash equivalents (6 ) 3 4 Net cash and cash equivalents at 1 January 8 5 1 Net cash and cash equivalents at 31 December 2 8 5

Condensed consolidating finan67

Condensed consolidating financial information (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure Of Condensed Consolidating Financial Information [Abstract]
Condensed Consolidated Income Statement	Condensed Consolidated Income Statement 2017 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Revenue — 3,517 — — 16,886 (111 ) 20,292 Raw materials and consumables used — (346 ) — — (4,286 ) 112 (4,520 ) Changes in inventories of finished goods and work in progress — (7 ) — — (507 ) 1 (513 ) Employee benefit costs (8 ) (117 ) (35 ) (2 ) (2,525 ) 8 (2,679 ) Depreciation, amortisation and impairment costs — (28 ) — — (874 ) — (902 ) Other operating income — 7 34 — 1,859 (1,756 ) 144 Other operating expenses (101 ) (2,889 ) (6 ) — (4,207 ) 1,857 (5,346 ) (Loss)/profit from operations (109 ) 137 (7 ) (2 ) 6,346 111 6,476 Net finance income/(costs) 3 11 (190 ) 9 (916 ) (11 ) (1,094 ) Share of post-tax results of associates and joint ventures — — — — 24,209 — 24,209 Profit before taxation (106 ) 148 (197 ) 7 29,639 100 29,591 Taxation on ordinary activities — (255 ) 61 (3 ) 8,310 — 8,113 Equity income from subsidiaries 37,704 3,870 4,259 3,893 — (49,726 ) — Profit for the year 37,598 3,763 4,123 3,897 37,949 (49,626 ) 37,704 Attributable to: Owners of the parent 37,598 3,763 4,123 3,897 37,778 (49,626 ) 37,533 Non-controlling interests — — — — 171 — 171 37,598 3,763 4,123 3,897 37,949 (49,626 ) 37,704 30 Condensed consolidating financial information continued Condensed Consolidated Income Statement 2016 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Revenue — — — — 14,751 — 14,751 Raw materials and consumables used — — — — (3,777 ) — (3,777 ) Changes in inventories of finished goods and work in progress — — — — 44 — 44 Employee benefit costs (7 ) — — — (2,274 ) 7 (2,274 ) Depreciation, amortisation and impairment costs — — — — (607 ) — (607 ) Other operating income — — — — 176 — 176 Other operating expenses (75 ) — — — (3,658 ) 75 (3,658 ) (Loss)/profit from operations (82 ) — — — 4,655 82 4,655 Net finance (costs)/income (54 ) — — — (637 ) 54 (637 ) Share of post-tax results of associates and joint ventures — — — — 2,227 — 2,227 Profit before taxation (136 ) — — — 6,245 136 6,245 Taxation on ordinary activities — — — — (1,406 ) — (1,406 ) Equity income from subsidiaries 4,839 — — — — (4,839 ) — Profit for the year 4,703 — — — 4,839 (4,703 ) 4,839 Attributable to: Owners of the parent 4,703 — — — 4,648 (4,703 ) 4,648 Non-controlling interests — — — — 191 — 191 4,703 — — — 4,839 (4,703 ) 4,839 30 Condensed consolidating financial information continued Condensed Consolidated Income Statement 2015 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Revenue — — — — 13,104 — 13,104 Raw materials and consumables used — — — — (3,217 ) — (3,217 ) Changes in inventories of finished goods and work in progress — — — — 184 — 184 Employee benefit costs (2 ) — — — (2,039 ) 2 (2,039 ) Depreciation, amortisation and impairment costs — — — — (428 ) — (428 ) Other operating income — — — — 225 — 225 Other operating expenses (66 ) — — — (3,272 ) 66 (3,272 ) (Loss)/profit from operations (68 ) — — — 4,557 68 4,557 Net finance (costs)/income (36 ) — — — 62 36 62 Share of post-tax results of associates and joint ventures — — — — 1,236 — 1,236 Profit before taxation (104 ) — — — 5,855 104 5,855 Taxation on ordinary activities — — — — (1,333 ) — (1,333 ) Equity income from subsidiaries 4,522 — — — — (4,522 ) — Profit for the year 4,418 — — — 4,522 (4,418 ) 4,522 Attributable to: Owners of the parent 4,418 — — — 4,290 (4,418 ) 4,290 Non-controlling interests — — — — 232 — 232 4,418 — — — 4,522 (4,418 ) 4,522 1 BAT Annual Report and Form 20-F 2017
Condensed Consolidated Statement of Comprehensive Income	Notes on the Accounts continued Condensed Consolidated Statement of Comprehensive Income 2017 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Profit for the year 37,598 3,763 4,123 3,897 37,949 (49,626 ) 37,704 Other comprehensive expense Items that may be reclassified subsequently to profit or loss: — — — — (3,812 ) — (3,812 ) Differences on exchange — — — — (4,010 ) — (4,010 ) Cash flow hedges — — — — (171 ) — (171 ) Available-for-sale investments — — — — (22 ) — (22 ) Net investment hedges — — — — 357 — 357 Tax on items that may be reclassified — — — — 34 — 34 Items that will not be reclassified subsequently to profit or loss: — — — — 681 — 681 Retirement benefit schemes — — — — 852 — 852 Tax on items that will not be reclassified — — — — (171 ) — (171 ) Total other comprehensive expense for the year, net of tax — — — — (3,131 ) — (3,131 ) Share of subsidiaries OCI (other reserves) 681 — — — — (681 ) — Share of subsidiaries OCI (retained earnings) (3,812 ) — — — — 3,812 — Total comprehensive income for the year, net of tax 34,467 3,763 4,123 3,897 34,818 (46,495 ) 34,573 Attributable to: Owners of the parent 34,467 3,763 4,123 3,897 34,651 (46,495 ) 34,406 Non-controlling interests — — — — 167 — 167 34,467 3,763 4,123 3,897 34,818 (46,495 ) 34,573 30 Condensed consolidating financial information continued Condensed Consolidated Statement of Comprehensive Income 2016 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Profit for the year 4,703 — — — 4,839 (4,703 ) 4,839 Other comprehensive income Items that may be reclassified subsequently to profit or loss: — — — — 1,760 — 1,760 Differences on exchange — — — — 2,695 — 2,695 Cash flow hedges — — — — 55 — 55 Available-for-sale investments — — — — (10 ) — (10 ) Net investment hedges — — — — (961 ) — (961 ) Tax on items that may be reclassified — — — — (19 ) — (19 ) Items that will not be reclassified subsequently to profit or loss: — — — — (173 ) — (173 ) Retirement benefit schemes — — — — (209 ) — (209 ) Tax on items that will not be reclassified — — — — 36 — 36 Total other comprehensive income for the year, net of tax — — — — 1,587 — 1,587 Share of subsidiaries OCI (other reserves) (173 ) — — — — 173 — Share of subsidiaries OCI (retained earnings) 1,760 — — — — (1,760 ) — Total comprehensive income for the year, net of tax 6,290 — — — 6,426 (6,290 ) 6,426 Attributable to: Owners of the parent 6,290 — — — 6,180 (6,290 ) 6,180 Non-controlling interests — — — — 246 — 246 6,290 — — — 6,426 (6,290 ) 6,426 30 Condensed consolidating financial information continued Condensed Consolidated Statement of Comprehensive Income 2015 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Profit for the year 4,418 — — — 4,522 (4,418 ) 4,522 Other comprehensive expense Items that may be reclassified subsequently to profit or loss: — — — — (849 ) — (849 ) Differences on exchange — — — — (670 ) — (670 ) Cash flow hedges — — — — (129 ) — (129 ) Available-for-sale investments — — — — 5 — 5 Net investment hedges — — — — (76 ) — (76 ) Tax on items that may be reclassified — — — — 21 — 21 Items that will not be reclassified subsequently to profit or loss: — — — — 263 — 263 Retirement benefit schemes — — — — 286 — 286 Tax on items that will not be reclassified — — — — (23 ) — (23 ) Total other comprehensive expense for the year, net of tax — — — — (586 ) — (586 ) Share of subsidiaries OCI (other reserves) 263 — — — — (263 ) — Share of subsidiaries OCI (retained earnings) (849 ) — — — — 849 — Total comprehensive income for the year, net of tax 3,832 — — — 3,936 (3,832 ) 3,936 Attributable to: Owners of the parent 3,832 — — — 3,757 (3,832 ) 3,757 Non-controlling interests — — — — 179 — 179 3,832 — — — 3,936 (3,832 ) 3,936 BAT Annual Report and Form 20-F 2017 1
Condensed Consolidated Balance Sheet	Condensed Consolidated Balance Sheet 2017 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Assets Intangible assets — 2,780 — 7,284 107,722 (1 ) 117,785 Property, plant and equipment — 677 2 — 4,204 (1 ) 4,882 Investments in subsidiaries 58,300 17,217 29,165 18,972 — (123,654 ) — Investments in associates and joint ventures — — — — 1,577 — 1,577 Retirement benefit assets — — — — 1,123 — 1,123 Deferred tax assets — 306 16 4 (9 ) — 317 Trade and other receivables — 23 860 42 826 (995 ) 756 Available-for-sale investments — — — — 42 — 42 Derivative financial instruments — — — — 590 — 590 Total non-current assets 58,300 21,003 30,043 26,302 116,075 (124,651 ) 127,072 Inventories — 721 — — 5,144 (1 ) 5,864 Income tax receivable — — 339 — 121 — 460 Trade and other receivables 7,365 — 571 9 5,725 (9,617 ) 4,053 Available-for-sale investments — — — — 65 — 65 Derivative financial instruments — — — — 228 — 228 Cash and cash equivalents 5 2 2 — 3,287 (5 ) 3,291 7,370 723 912 9 14,570 (9,623 ) 13,961 Assets classified as held-for-sale — — — — 5 — 5 Total current assets 7,370 723 912 9 14,575 (9,623 ) 13,966 Total assets 65,670 21,726 30,955 26,311 130,650 (134,274 ) 141,038 Equity - Capital and reserves Share capital 614 14,070 13,509 21,260 1,297 (50,136 ) 614 Share premium, capital redemption and merger reserves 22,939 — — — 26,602 (22,939 ) 26,602 Other reserves 805 (25 ) (24 ) (24 ) (3,395 ) (732 ) (3,395 ) Retained earnings 36,556 5,170 6,276 5,055 37,409 (53,483 ) 36,983 Owners of the parent 60,914 19,215 19,761 26,291 61,913 (127,290 ) 60,804 Non-controlling interests — — — — 222 — 222 Total equity 60,914 19,215 19,761 26,291 62,135 (127,290 ) 61,026 Liabilities Borrowings 1,571 186 8,212 — 35,629 (1,571 ) 44,027 Retirement benefit liabilities — 926 42 20 833 — 1,821 Deferred tax liabilities — — — — 17,129 — 17,129 Other provisions for liabilities — 1 — — 353 — 354 Trade and other payables 8 18 102 — 1,933 (1,003 ) 1,058 Derivative financial instruments — — — — 79 — 79 Total non-current liabilities 1,579 1,131 8,356 20 55,956 (2,574 ) 64,468 Borrowings 2,058 40 1,009 — 4,374 (2,058 ) 5,423 Income tax payable — 23 — — 698 (1 ) 720 Other provisions for liabilities — 4 — — 395 — 399 Trade and other payables 1,119 1,313 1,829 — 6,937 (2,351 ) 8,847 Derivative financial instruments — — — — 155 — 155 Total current liabilities 3,177 1,380 2,838 — 12,559 (4,410 ) 15,544 Total equity and liabilities 65,670 21,726 30,955 26,311 130,650 (134,274 ) 141,038 30 Condensed consolidating financial information continued Condensed Consolidated Balance Sheet 2016 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Assets Intangible assets — — — — 12,117 — 12,117 Property, plant and equipment — — — — 3,661 — 3,661 Investments in subsidiaries 7,667 — — — — (7,667 ) — Investments in associates and joint ventures — — — — 9,507 — 9,507 Retirement benefit assets — — — — 455 — 455 Deferred tax assets — — — — 436 — 436 Trade and other receivables — — — — 599 — 599 Available-for-sale investments — — — — 43 — 43 Derivative financial instruments — — — — 596 — 596 Total non-current assets 7,667 — — — 27,414 (7,667 ) 27,414 Inventories — — — — 5,793 — 5,793 Income tax receivable — — — — 69 — 69 Trade and other receivables 7,289 — — — 3,884 (7,289 ) 3,884 Available-for-sale investments — — — — 15 — 15 Derivative financial instruments — — — — 375 — 375 Cash and cash equivalents 5 — — — 2,204 (5 ) 2,204 7,294 — — — 12,340 (7,294 ) 12,340 Assets classified as held-for-sale — — — — 19 — 19 Total current assets 7,294 — — — 12,359 (7,294 ) 12,359 Total assets 14,961 — — — 39,773 (14,961 ) 39,773 Equity - Capital and reserves Share capital 507 — — — 507 (507 ) 507 Share premium, capital redemption and merger reserves 268 — — — 3,931 (268 ) 3,931 Other reserves (362 ) — — — 413 362 413 Retained earnings 10,829 — — — 3,351 (10,849 ) 3,331 Owners of the parent 11,242 — — — 8,202 (11,262 ) 8,182 Non-controlling interests — — — — 224 — 224 Total equity 11,242 — — — 8,426 (11,262 ) 8,406 Liabilities Borrowings — — — — 16,488 — 16,488 Retirement benefit liabilities — — — — 826 — 826 Deferred tax liabilities — — — — 652 — 652 Other provisions for liabilities — — — — 386 — 386 Trade and other payables 8 — — — 1,040 (8 ) 1,040 Derivative financial instruments — — — — 119 — 119 Total non-current liabilities 8 — — — 19,511 (8 ) 19,511 Borrowings 3,621 — — — 3,007 (3,621 ) 3,007 Income tax payable — — — — 558 — 558 Other provisions for liabilities — — — — 407 — 407 Trade and other payables 90 — — — 7,315 (70 ) 7,335 Derivative financial instruments — — — — 549 — 549 Total current liabilities 3,711 — — — 11,836 (3,691 ) 11,856 Total equity and liabilities 14,961 — — — 39,773 (14,961 ) 39,773 BAT Annual Report and Form 20-F 2017 1
Condensed Consolidated Cash Flow Statement	Condensed Consolidated Cash Flow Statement 2017 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Net cash (used in)/generated from operating activities (12 ) (1,860 ) (270 ) (11 ) 7,488 12 5,347 Net cash (used in)/generated from investing activities 2 (88 ) 1,116 1 (19,512 ) (63 ) (18,544 ) Net cash (used in)/generated from financing activities 10 1,950 (844 ) 10 21,030 (7,397 ) 14,759 Net cash flows (used in)/generated from operating, investing and financing activities — 2 2 — 9,006 (7,448 ) 1,562 Differences on exchange — — — — (391 ) — (391 ) (Decrease)/increase in net cash and cash equivalents in the year — 2 2 — 8,615 (7,448 ) 1,171 Net cash and cash equivalents at 1 January* 5 — — — 1,646 — 1,651 Net cash and cash equivalents at 31 December 5 2 2 — 10,261 (7,448 ) 2,822 Condensed Consolidated Cash Flow Statement 2016 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Net cash (used in)/generated from operating activities (23 ) — — — 4,610 23 4,610 Net cash (used in)/generated from investing activities 24 — — — (571 ) (93 ) (640 ) Net cash (used in)/generated from financing activities — — — — 1,746 (5,975 ) (4,229 ) Net cash flows (used in)/generated from operating, investing and financing activities 1 — — — 5,785 (6,045 ) (259 ) Differences on exchange 1 — — — 179 — 180 (Decrease)/increase in net cash and cash equivalents in the year 2 — — — 5,964 (6,045 ) (79 ) Net cash and cash equivalents at 1 January* 3 — — — 1,727 — 1,730 Net cash and cash equivalents at 31 December 5 — — — 7,691 (6,045 ) 1,651 30 Condensed consolidating financial information continued Condensed Consolidated Cash Flow Statement 2015 £m BAT p.l.c. RJRT RAI RJRTH All other companies BAT Group Parent guarantor Issuer (LB) Issuer (RB) Subsidiary guarantor (LB) Subsidiary guarantor (LB & RB) Non-guarantor subsidiaries Eliminations Consolidated Net cash (used in)/generated from operating activities 61 — — — 4,712 (53 ) 4,720 Net cash (used in)/generated from investing activities 34 — — — (3,920 ) (105 ) (3,991 ) Net cash (used in)/generated from financing activities (95 ) — — — 982 (1,106 ) (219 ) Net cash flows (used in)/generated from operating, investing and financing activities — — — — 1,774 (1,264 ) 510 Differences on exchange (1 ) — — — (271 ) — (272 ) (Decrease)/increase in net cash and cash equivalents in the year (1 ) — — — 1,503 (1,264 ) 238 Net cash and cash equivalents at 1 January* 4 — — — 1,488 — 1,492 Net cash and cash equivalents at 31 December 3 — — — 2,991 (1,264 ) 1,730 *The opening balance of net cash and cash equivalents represents external cash held by the parent guarantor, issuers, subsidiary guarantors and non-guarantor subsidiaries. BAT Annual Report and Form 20-F 2017 1

Accounting policies - Additiona

Accounting policies - Additional Information (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Accounting Policies [Line Items]
Decrease in revenue	£ 664	£ 618
Increase (decrease) in assets and liabilities in leasing commitments	370	£ 282
IFRS 15 Revenue
Disclosure Of Accounting Policies [Line Items]
Decrease in revenue	64
Trade Debtors
Disclosure Of Accounting Policies [Line Items]
Decrease in trade receivable	£ 45
Freehold Land or Assets Classified as Held-for-sale
Disclosure Of Accounting Policies [Line Items]
Property Plant And Equipment Depreciation Rates	0.00%
Top of Range
Disclosure Of Accounting Policies [Line Items]
Property Plant And Equipment Depreciation Rates	25.00%
Top of Range | Freehold and Leasehold Property
Disclosure Of Accounting Policies [Line Items]
Property Plant And Equipment Depreciation Rates	4.00%
Top of Range | Other Trademarks and Similar Assets
Disclosure Of Accounting Policies [Line Items]
Intangible assets, remaining useful lives	20 years
Top of Range | Computer Software
Disclosure Of Accounting Policies [Line Items]
Intangible assets, remaining useful lives	five years
Top of Range | Global Software Solutions
Disclosure Of Accounting Policies [Line Items]
Intangible assets, remaining useful lives	ten years
Bottom of Range
Disclosure Of Accounting Policies [Line Items]
Property Plant And Equipment Depreciation Rates	3.00%
Bottom of Range | Freehold and Leasehold Property
Disclosure Of Accounting Policies [Line Items]
Property Plant And Equipment Depreciation Rates	2.50%
Bottom of Range | Computer Software
Disclosure Of Accounting Policies [Line Items]
Intangible assets, remaining useful lives	three years

Segmental Analyses - Disclosure

Segmental Analyses - Disclosure of Revenues at Current Rates and Revenues Translated (Details) - GBP (£) £ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Geographical Areas [Line Items]
Revenue	[1]	£ 20,292	£ 14,751	£ 13,104
Translation exchange		750	743
Constant Rates
Disclosure Of Geographical Areas [Line Items]
Revenue			14,008
Constant Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		19,284
Current Rates
Disclosure Of Geographical Areas [Line Items]
Revenue		20,292	14,751
Current Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		20,034
Current Rates | Adjusting Items
Disclosure Of Geographical Areas [Line Items]
Adjusting items Current rates		258
United States
Disclosure Of Geographical Areas [Line Items]
Revenue		4,211
Translation exchange		205
United States | Constant Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		4,006
United States | Current Rates
Disclosure Of Geographical Areas [Line Items]
Revenue		4,211
United States | Current Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		4,211
Asia-Pacific
Disclosure Of Geographical Areas [Line Items]
Revenue			4,266	3,773
Translation exchange		189	496
Asia-Pacific | Constant Rates
Disclosure Of Geographical Areas [Line Items]
Revenue			3,770
Asia-Pacific | Constant Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		4,320
Asia-Pacific | Current Rates
Disclosure Of Geographical Areas [Line Items]
Revenue		4,509	4,266
Asia-Pacific | Current Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		4,509
Americas
Disclosure Of Geographical Areas [Line Items]
Revenue			2,868	2,720
Translation exchange		(53)	(146)
Americas | Constant Rates
Disclosure Of Geographical Areas [Line Items]
Revenue			3,014
Americas | Constant Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		3,178
Americas | Current Rates
Disclosure Of Geographical Areas [Line Items]
Revenue		3,125	2,868
Americas | Current Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		3,125
Western Europe
Disclosure Of Geographical Areas [Line Items]
Revenue			3,867	3,203
Translation exchange		267	396
Western Europe | Constant Rates
Disclosure Of Geographical Areas [Line Items]
Revenue			3,471
Western Europe | Constant Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		4,007
Western Europe | Current Rates
Disclosure Of Geographical Areas [Line Items]
Revenue		4,532	3,867
Western Europe | Current Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		4,274
Western Europe | Current Rates | Adjusting Items
Disclosure Of Geographical Areas [Line Items]
Adjusting items Current rates		258
EEMEA
Disclosure Of Geographical Areas [Line Items]
Revenue			3,750	£ 3,408
Translation exchange		142	(3)
EEMEA | Constant Rates
Disclosure Of Geographical Areas [Line Items]
Revenue			3,753
EEMEA | Constant Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		3,773
EEMEA | Current Rates
Disclosure Of Geographical Areas [Line Items]
Revenue		3,915	£ 3,750
EEMEA | Current Rates | Adjusted Revenue
Disclosure Of Geographical Areas [Line Items]
Revenue		£ 3,915
[1]	Revenue is net of duty, excise and other taxes of £37,780 million, £32,136 million and £27,896 million for the years ended 31 December 2017, 2016 and 2015, respectively.

Segmental Analyses - Additional

Segmental Analyses - Additional Information (Details) £ in Millions		12 Months Ended
		Dec. 31, 2017GBP (£)Segment	Dec. 31, 2016GBP (£)	Dec. 31, 2015GBP (£)
Disclosure Of Geographical Areas [Line Items]
Number of reportable segment | Segment		5
Revenue from operations	[1]	£ 20,292	£ 14,751	£ 13,104
Non-current assets for operations		127,072	27,414
Goodwill		44,147	11,023	9,324
Investments in associates and joint ventures		1,577	9,507
Associates And Joint Ventures
Disclosure Of Geographical Areas [Line Items]
Revenue from operations		14,085	16,491	11,186
Non-current assets for operations		1,127	17,831
Investments in associates and joint ventures		1,577	9,507	6,938
Reynolds American Inc. | Associates And Joint Ventures
Disclosure Of Geographical Areas [Line Items]
Investments in associates and joint ventures			8,051	5,749
ITC Ltd. | Associates And Joint Ventures
Disclosure Of Geographical Areas [Line Items]
Investments in associates and joint ventures		1,527	1,394	1,136
United States
Disclosure Of Geographical Areas [Line Items]
Revenue from operations		4,211
Non-current assets for operations		107,139
Constant Rates | Previously Stated
Disclosure Of Geographical Areas [Line Items]
Profit (loss) from continuing operations		£ 7,665	£ 5,197	£ 5,620
[1]	Revenue is net of duty, excise and other taxes of £37,780 million, £32,136 million and £27,896 million for the years ended 31 December 2017, 2016 and 2015, respectively.

Segmental Analyses - Disclosu71

Segmental Analyses - Disclosure of Operating Segment Information (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Operating Segments [Line Items]
Net finance (costs)/income	£ (1,094)	£ (637)	£ 62
Share of post-tax results of associates and joint ventures	24,209	2,227	1,236
Profit/(loss) before taxation	29,591	6,245	5,855
Taxation on ordinary activities	8,113	(1,406)	(1,333)
Profit for the year	37,704	4,839	4,522
Adjusted Segment Result
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		5,480	4,992
Net finance (costs)/income		(529)	(427)
Share of post-tax results of associates and joint ventures		1,327	943
Profit/(loss) before taxation		6,278	5,508
Adjusted Segment Result | United States
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures		991	652
Adjusted Segment Result | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures		331	286
Adjusted Segment Result | Americas
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures			4
Adjusted Segment Result | Western Europe
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures		3
Adjusted Segment Result | EEMEA
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures		2	1
Adjusting Items
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	(1,517)	(825)	(435)
Net finance (costs)/income	(205)	(108)	489
Share of post-tax results of associates and joint ventures	23,197	900	293
Profit/(loss) before taxation	21,475	(33)	347
Taxation on ordinary activities	10,220
Adjusting Items | United States
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	23,195	889	277
Adjusting Items | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	29	11	16
Adjusting Items | Western Europe
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	(27)
Segment Result
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		4,655	4,557
Net finance (costs)/income		(637)	62
Share of post-tax results of associates and joint ventures		2,227	1,236
Profit/(loss) before taxation		6,245	5,855
Taxation on ordinary activities		(1,406)	(1,333)
Profit for the year		4,839	4,522
Segment Result | United States
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures		1,880	929
Segment Result | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures		342	302
Segment Result | Americas
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures			4
Segment Result | Western Europe
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures		3
Segment Result | EEMEA
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures		2	1
Operating Segments | Adjusted Segment Result
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		5,480	4,992
Operating Segments | Adjusted Segment Result | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		1,630	1,469
Operating Segments | Adjusted Segment Result | Americas
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		1,172	1,169
Operating Segments | Adjusted Segment Result | Western Europe
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		1,389	1,146
Operating Segments | Adjusted Segment Result | EEMEA
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		1,289	1,208
Operating Segments | Adjusting Items
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	(1,517)	(805)	(432)
Operating Segments | Adjusting Items | United States
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	(763)
Operating Segments | Adjusting Items | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	(117)	(198)	(108)
Operating Segments | Adjusting Items | Americas
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	(109)	(155)	(87)
Operating Segments | Adjusting Items | Western Europe
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	(435)	(345)	(156)
Operating Segments | Adjusting Items | EEMEA
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	(93)	(107)	(81)
Operating Segments | Segment Result
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		4,675	4,560
Operating Segments | Segment Result | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		1,432	1,361
Operating Segments | Segment Result | Americas
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		1,017	1,082
Operating Segments | Segment Result | Western Europe
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		1,044	990
Operating Segments | Segment Result | EEMEA
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		1,182	1,127
Unallocated Amounts | Adjusting Items | Fox River
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		(20)
Unallocated Amounts | Adjusting Items | Flintkote
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations			(3)
Unallocated Amounts | Segment Result | Fox River
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		(20)
Unallocated Amounts | Segment Result | Flintkote
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations			£ (3)
Constant Rates | Adjusted Segment Result
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	7,665	5,197
Net finance (costs)/income	(833)	(494)
Share of post-tax results of associates and joint ventures	951	1,190
Profit/(loss) before taxation	7,783	5,893
Taxation on ordinary activities	(2,033)
Constant Rates | Adjusted Segment Result | United States
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	593	877
Constant Rates | Adjusted Segment Result | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	352	307
Constant Rates | Adjusted Segment Result | Western Europe
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	4	4
Constant Rates | Adjusted Segment Result | EEMEA
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	2	2
Constant Rates | Operating Segments | Adjusted Segment Result
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	7,665	5,197
Constant Rates | Operating Segments | Adjusted Segment Result | United States
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,980
Constant Rates | Operating Segments | Adjusted Segment Result | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,674	1,488
Constant Rates | Operating Segments | Adjusted Segment Result | Americas
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,288	1,202
Constant Rates | Operating Segments | Adjusted Segment Result | Western Europe
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,458	1,236
Constant Rates | Operating Segments | Adjusted Segment Result | EEMEA
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,265	1,271
Translation Exchange
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	328	283
Net finance (costs)/income	(56)	(35)
Share of post-tax results of associates and joint ventures	61	137
Profit/(loss) before taxation	333	385
Taxation on ordinary activities	(74)
Translation Exchange | United States
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	31	114
Translation Exchange | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	30	24
Translation Exchange | Western Europe
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures		(1)
Translation Exchange | Operating Segments
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	328	283
Translation Exchange | Operating Segments | United States
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	101
Translation Exchange | Operating Segments | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	81	142
Translation Exchange | Operating Segments | Americas
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	(32)	(30)
Translation Exchange | Operating Segments | Western Europe
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	104	153
Translation Exchange | Operating Segments | EEMEA
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	74	18
Current Rates | Adjusted Segment Result
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	7,993	5,480
Net finance (costs)/income	(889)	(529)
Share of post-tax results of associates and joint ventures	1,012	1,327
Profit/(loss) before taxation	8,116	6,278
Taxation on ordinary activities	(2,107)
Current Rates | Adjusted Segment Result | United States
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	624	991
Current Rates | Adjusted Segment Result | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	382	331
Current Rates | Adjusted Segment Result | Western Europe
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	4	3
Current Rates | Adjusted Segment Result | EEMEA
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	2	2
Current Rates | Segment Result
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	6,476	4,655
Net finance (costs)/income	(1,094)	(637)
Share of post-tax results of associates and joint ventures	24,209	2,227
Profit/(loss) before taxation	29,591	6,245
Taxation on ordinary activities	8,113	(1,406)
Profit for the year	37,704	4,839
Current Rates | Segment Result | United States
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	23,819	1,880
Current Rates | Segment Result | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	411	342
Current Rates | Segment Result | Western Europe
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	(23)	3
Current Rates | Segment Result | EEMEA
Disclosure Of Operating Segments [Line Items]
Share of post-tax results of associates and joint ventures	2	2
Current Rates | Operating Segments | Adjusted Segment Result
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	7,993	5,480
Current Rates | Operating Segments | Adjusted Segment Result | United States
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	2,081
Current Rates | Operating Segments | Adjusted Segment Result | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,755	1,630
Current Rates | Operating Segments | Adjusted Segment Result | Americas
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,256	1,172
Current Rates | Operating Segments | Adjusted Segment Result | Western Europe
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,562	1,389
Current Rates | Operating Segments | Adjusted Segment Result | EEMEA
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,339	1,289
Current Rates | Operating Segments | Segment Result
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	6,476	4,675
Current Rates | Operating Segments | Segment Result | United States
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,318
Current Rates | Operating Segments | Segment Result | Asia-Pacific
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,638	1,432
Current Rates | Operating Segments | Segment Result | Americas
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,147	1,017
Current Rates | Operating Segments | Segment Result | Western Europe
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	1,127	1,044
Current Rates | Operating Segments | Segment Result | EEMEA
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations	£ 1,246	1,182
Current Rates | Unallocated Amounts | Segment Result | Fox River
Disclosure Of Operating Segments [Line Items]
Profit (loss) from continuing operations		£ (20)

Segmental Analyses - Summary of

Segmental Analyses - Summary of Depreciation Amortisation and Impairment Charges (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	£ 902	£ 607	£ 428
Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment		395	337
Adjusting items
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	468	212	91
Constant Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	418	375
Translation Exchange | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	16	20
Current Rates
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	902	607
Current Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	434	395
United States | Adjusting items
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	120
United States | Constant Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	57
United States | Translation Exchange | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	2
United States | Current Rates
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	179
United States | Current Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	59
Asia-Pacific
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment		156	128
Asia-Pacific | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment		105	95
Asia-Pacific | Adjusting items
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	22	51	33
Asia-Pacific | Constant Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	101	96
Asia-Pacific | Translation Exchange | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	3	9
Asia-Pacific | Current Rates
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	126	156
Asia-Pacific | Current Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	104	105
Americas
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment		130	93
Americas | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment		86	84
Americas | Adjusting items
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	39	44	9
Americas | Constant Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	60	83
Americas | Translation Exchange | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	3	3
Americas | Current Rates
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	102	130
Americas | Current Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	63	86
Western Europe
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment		212	114
Western Europe | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment		109	75
Western Europe | Adjusting items
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	263	103	39
Western Europe | Constant Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	105	100
Western Europe | Translation Exchange | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	5	9
Western Europe | Current Rates
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	373	212
Western Europe | Current Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	110	109
EEMEA
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment		109	93
EEMEA | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment		95	83
EEMEA | Adjusting items
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	24	14	£ 10
EEMEA | Constant Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	95	96
EEMEA | Translation Exchange | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	3	(1)
EEMEA | Current Rates
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	122	109
EEMEA | Current Rates | Adjusted depreciation, amortisation and impairment
Disclosure Of Depreciation Amortization And Impairment [Line Items]
Depreciation, amortisation and impairment	£ 98	£ 95

Segmental Analyses - Disclosu73

Segmental Analyses - Disclosure of Geographical Information of External Revenue (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items]
External revenue	£ 20,292	£ 14,751	£ 13,104
Intangible assets	117,785	12,117	10,436
Property, plant and equipment	4,882	3,661	3,021
Investments in associates and joint ventures	1,577	9,507
United Kingdom
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items]
External revenue	211	272	190
Intangible assets	514	551
Property, plant and equipment	406	371
All foreign countries
Disclosure Of Geographical Information Of External Revenue Non Current Assets [Line Items]
External revenue	20,081	14,479	£ 12,914
Intangible assets	117,271	11,566
Property, plant and equipment	4,476	3,290
Investments in associates and joint ventures	£ 1,577	£ 9,507

Profit from Operations - Summar

Profit from Operations - Summary of Employee Benefit Costs (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Profit From Operations [Abstract]
Wages and salaries	£ 2,131	£ 1,882	£ 1,667
Social security costs	216	207	174
Other pension and retirement benefit costs (note 12)	215	101	138
Share-based payments - equity and cash-settled (note 25)	117	84	60
Employee benefit costs	£ 2,679	£ 2,274	£ 2,039

Profit from Operations - Summ75

Profit from Operations - Summary of Depreciation Amortisation and Impairment Costs (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Depreciation Amortisation And Impairment Costs [Line Items]
Depreciation, amortisation and impairment costs	£ 902	£ 607	£ 428
Property, Plant and Equipment
Depreciation Amortisation And Impairment Costs [Line Items]
Depreciation and impairment of property, plant and equipment	379	377	274
Trademarks and Similar Intangibles
Depreciation Amortisation And Impairment Costs [Line Items]
Amortisation and impairment of intangibles	383	149	65
Other Intangibles
Depreciation Amortisation And Impairment Costs [Line Items]
Amortisation and impairment of intangibles	£ 140	£ 81	£ 89

Profit from Operations - Summ76

Profit from Operations - Summary of Other Operating Expenses (Details) - GBP (£)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Operating Expenses [Line Items]
Research and development expenses (excluding employee benefit costs and depreciation)	£ 80,000,000	£ 53,000,000	£ 60,000,000
Exchange differences	(6,000,000)	(2,000,000)	10,000,000
Total audit fees payable	17,800,000	9,200,000	9,300,000
Fees payable for other services	200,000	1,500,000	2,100,000
Plant and Equipment
Other Operating Expenses [Line Items]
Minimum lease payments	41,000,000	20,000,000	20,000,000
Property
Other Operating Expenses [Line Items]
Minimum lease payments	85,000,000	51,000,000	52,000,000
KPMG LLP
Other Operating Expenses [Line Items]
Total audit fees payable	29,200,000	9,200,000	9,300,000
KPMG LLP | Parent Company and Group Audit
Other Operating Expenses [Line Items]
Total audit fees payable	6,300,000	2,000,000	2,000,000
KPMG LLP Firms and Associates
Other Operating Expenses [Line Items]
Total audit fees payable	17,600,000	9,200,000	8,700,000
Fees payable for other services	12,300,000	2,200,000	3,300,000
KPMG LLP Firms and Associates | Audit Related Assurance Services
Other Operating Expenses [Line Items]
Fees payable for other services	8,000,000	200,000	200,000
KPMG LLP Firms and Associates | Other Assurance Services
Other Operating Expenses [Line Items]
Fees payable for other services	4,100,000	100,000	100,000
KPMG LLP Firms and Associates | Tax Advisory Services
Other Operating Expenses [Line Items]
Fees payable for other services		200,000	600,000
KPMG LLP Firms and Associates | Tax Compliance
Other Operating Expenses [Line Items]
Fees payable for other services	200,000	300,000	400,000
KPMG LLP Firms and Associates | Other Non Audit Services
Other Operating Expenses [Line Items]
Fees payable for other services		1,400,000	2,000,000
KPMG LLP Firms and Associates | Local Statutory and Group Reporting Audits
Other Operating Expenses [Line Items]
Total audit fees payable	11,300,000	£ 7,200,000	6,700,000
Pricewaterhouse Coopers L L P
Other Operating Expenses [Line Items]
Total audit fees payable			£ 600,000
Other Firms
Other Operating Expenses [Line Items]
Total audit fees payable	£ 200,000

Profit from Operations - Other

Profit from Operations - Other Operating Expenses - Additional Information (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Operating Expenses [Line Items]
Total fees payable	£ 30.1	£ 11.4	£ 12.6
Remuneration of auditor, all other fees	0.2	1.5	2.1
Remuneration of auditor, audit fees	17.8	9.2	9.3
Remuneration of auditor, other audit-related fees	0.5	0.2	0.2
Remuneration of auditor, tax fees	0.2	0.5	1
Reynolds American Inc. | Audit Related Assurance Services
Other Operating Expenses [Line Items]
Remuneration of auditor, all other fees	7.7
Reynolds American Inc. | Other Assurance Services
Other Operating Expenses [Line Items]
Remuneration of auditor, all other fees	3.5
KPMG LLP Firms and Associates
Other Operating Expenses [Line Items]
Total fees payable	29.9	11.4	12
Remuneration of auditor, all other fees	12.3	2.2	3.3
Remuneration of auditor, audit fees	17.6	9.2	8.7
Research and development costs including employee benefit costs and depreciation	191	144	148
KPMG LLP Firms and Associates | Audit Related Assurance Services
Other Operating Expenses [Line Items]
Remuneration of auditor, all other fees	8	0.2	0.2
KPMG LLP Firms and Associates | Other Assurance Services
Other Operating Expenses [Line Items]
Remuneration of auditor, all other fees	4.1	0.1	0.1
KPMG LLP
Other Operating Expenses [Line Items]
Remuneration of auditor, audit fees	£ 29.2	£ 9.2	£ 9.3

Profit from Operations - Master

Profit from Operations - Master Settlements Agreement - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
NY Settlement Agreement | RJRT and SFNTC
Profit From Operations [Line Items]
Additional credit recognised	$ 99	$ 95
Non-Participating Manufacturer Adjustment Claims Related to Period from 2003 to 2012 | Master Settlement Agreement
Profit From Operations [Line Items]
Reduction of expenses related to payment obligation	17
Non-Participating Manufacturer Adjustment Claims Related to Period from 2003 to 2012 | Master Settlement Agreement | RJRT and SFNTC
Profit From Operations [Line Items]
Additional credit recognised	130	$ 295
Non Participating Manufacturer Adjustment Claims Related To Period From 2004 To 2014 | NY Settlement Agreement | RJRT and SFNTC
Profit From Operations [Line Items]
Reduction of expenses related to payment obligation	$ 290

Profit from Operations - Summ79

Profit from Operations - Summary Costs of Integrating Acquired Businesses into Existing Operations (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Benefit Costs and Depreciation, Amortisation and Impairment [Line Items]
Employee benefit costs	£ 2,679	£ 2,274	£ 2,039
Depreciation, amortisation and impairment costs	902	607	428
Other operating expenses	5,346	3,658	3,272
Other operating income	(144)	(176)	(225)
Restructuring and Integration Costs
Employee Benefit Costs and Depreciation, Amortisation and Impairment [Line Items]
Employee benefit costs	193	240	159
Depreciation, amortisation and impairment costs	85	64	26
Other operating expenses	330	325	228
Other operating income	(8)	(26)	(46)
Business combination integration cost	£ 600	£ 603	£ 367

Profit from Operations - Restru

Profit from Operations - Restructuring and Integration Costs - Additional Information (Details) - Trademarks and Similar Intangibles - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Expense Of Restructuring Activities [Line Items]
Amortisation and impairment of intangibles	£ 383	£ 149	£ 65
Top of Range
Expense Of Restructuring Activities [Line Items]
Intangibles assets expected useful lives	20 years

Profit from Operations - Fox Ri

Profit from Operations - Fox River - Additional Information (Details) € in Millions, $ in Millions	Feb. 10, 2017USD ($)	Jul. 31, 2016EUR (€)	Dec. 31, 2017GBP (£)	Dec. 31, 2016GBP (£)	Dec. 31, 2015GBP (£)	Dec. 31, 2009EUR (€)	Dec. 31, 2008EUR (€)
NCR And Appvion
Profit From Operations [Line Items]
Assets recognised			£ 0
Payments received			0
Windward Dividend Claim
Profit From Operations [Line Items]
Dividend paid to Sequana | €		€ 135				€ 135	€ 443
Windward Dividend Claim | Windward
Profit From Operations [Line Items]
Litigation settlement amount | $	$ 185
Fox River
Profit From Operations [Line Items]
Claims in relation to environmental clean up costs			274,000,000
Fox River | N C R Appvion And Windward Prospects
Profit From Operations [Line Items]
Payments for environmental clean up and legal costs			25,000,000	£ 17,000,000	£ 17,000,000
Payment for legal costs			7,000,000	11,000,000	8,000,000
Fox River | N C R Appvion And Windward Prospects | Funding
Profit From Operations [Line Items]
Devaluation of currency charge net				20,000,000	£ 0
Fox river provision			£ 138,000,000	£ 163,000,000

Profit from Operations - Othe82

Profit from Operations - Other Adjusting Items - Additional Information (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Profit From Operations [Line Items]
Changes in inventories of finished goods and work in progress	£ 513	£ (44)	£ (184)
South Korea Sales Tax
Profit From Operations [Line Items]
Recognized sales tax and penalties		£ 53
Agrokor
Profit From Operations [Line Items]
Impairment of assets	69
Reynolds American Inc.
Profit From Operations [Line Items]
Changes in inventories of finished goods and work in progress	£ 465

Profit from Operations - Flintk

Profit from Operations - Flintkote - Additional Information (Details) - GBP (£)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Subsidiaries | Flintkote
Profit From Operations [Line Items]
Final settlement agreement charge	£ 0	£ 0	£ 3,000,000

Net Finance Costs_(Income) - Su

Net Finance Costs/(Income) - Summary of Net Finance Costs/(Income) (Details) £ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017GBP (£)	Dec. 31, 2016GBP (£)	Dec. 31, 2016USD ($)	Dec. 31, 2015GBP (£)
Disclosure of Finance Income and Costs [Line Items]
Interest expense	£ 1,081	£ 645		£ 573
Option costs and fees				104
Facility fees	13	5		9
Interest related to adjusting tax payables	43	25		8
Loss on bond redemption		101	$ 130
Fair value changes on derivative financial instruments and hedged items	(149)	(458)		(245)
Hedge ineffectiveness	9	(18)
Exchange differences on financial liabilities	47	363		135
Finance costs	1,197	681		584
Interest and dividend income	(84)	(68)		(79)
Exchange differences on financial assets	(19)	42		34
Finance income	(103)	(44)		(646)
Net finance costs/(income)	1,094	£ 637		(62)
Reynolds American Inc.
Disclosure of Finance Income and Costs [Line Items]
Acquisition of RAI	£ 153
Deemed gain related to the investment in Reynolds				£ (601)

Net Finance Costs_(Income) - Ad

Net Finance Costs/(Income) - Additional Information (Details) £ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017GBP (£)	Dec. 31, 2016GBP (£)	Dec. 31, 2016USD ($)	Dec. 31, 2015GBP (£)	Dec. 31, 2015USD ($)
Disclosure of Finance Income and Costs [Line Items]
Interest related to adjusting tax payables	£ 43	£ 25		£ 8
Hedge ineffectiveness	(9)	£ 18
Reversal charge of hedge ineffectiveness	9
Bond redeemed amount | $			$ 700
Bond maturity date		Nov. 15, 2018	Nov. 15, 2018
Loss on bond redemption		£ 101	$ 130
Option costs and fees				104
Investments in associates and joint ventures	1,577	9,507
Interest on tax payables including FIIGLO
Disclosure of Finance Income and Costs [Line Items]
Interest related to adjusting tax payables	43	25		8
Reynolds American Inc.
Disclosure of Finance Income and Costs [Line Items]
Finance costs related to acquisition of shares	£ 153
Investments in associates and joint ventures		£ 13,592			$ 4,700
Deemed gain related to investment			$ 931	£ 601	$ 931

Associates and Joint Ventures -

Associates and Joint Ventures - Schedule of Profit Loss of Associates and Joint Ventures Accounted for Using Equity Method (Details) - GBP (£) £ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Transactions Between Related Parties [Line Items]
Revenue	[1]	£ 20,292	£ 14,751	£ 13,104
Profit from operations		6,476	4,655	4,557
Net finance costs		(1,094)	(637)	62
Profit before taxation		29,591	6,245	5,855
Taxation on ordinary activities		8,113	(1,406)	(1,333)
Profit on ordinary activities after taxation		37,533	4,648	4,290
Non-controlling interests		171	191	232
Profit for the year		37,704	4,839	4,522
Associates And Joint Ventures
Disclosure Of Transactions Between Related Parties [Line Items]
Revenue		14,085	16,491	11,186
Profit from operations		4,342	9,379	6,117
Net finance costs		(279)	(477)	(335)
Profit before taxation		4,063	8,902	5,782
Taxation on ordinary activities		(1,441)	(3,280)	(2,545)
Profit on ordinary activities after taxation		2,622	5,622	3,237
Non-controlling interests		(22)	(17)	(12)
Profit for the year		2,600	5,605	3,225
– adjusted share of post-tax results of associates and joint ventures		2,785	3,461	2,501
– issue of shares and change in shareholding		98	36	74
– gain on disposal of assets			2,231	879
– other		(283)	(123)	(229)
Groups Share in Associates and Joint Ventures
Disclosure Of Transactions Between Related Parties [Line Items]
Revenue		4,794	5,997	4,215
Profit from operations		24,854	3,740	2,391
Net finance costs		(116)	(200)	(139)
Profit before taxation		24,738	3,540	2,252
Taxation on ordinary activities		(522)	(1,308)	(1,013)
Profit on ordinary activities after taxation		24,216	2,232	1,239
Non-controlling interests		(7)	(5)	(3)
Profit for the year		24,209	2,227	1,236
– adjusted share of post-tax results of associates and joint ventures		1,012	1,327	943
– issue of shares and change in shareholding		29	11	22
– gain on deemed divestment of RAI		23,288
– gain on disposal of assets			941	371
– other		£ (120)	£ (52)	£ (100)
[1]	Revenue is net of duty, excise and other taxes of £37,780 million, £32,136 million and £27,896 million for the years ended 31 December 2017, 2016 and 2015, respectively.

Associates and Joint Ventures87

Associates and Joint Ventures - Additional Information (Details)	Jun. 12, 2015	Jul. 30, 2004	Dec. 31, 2017GBP (£)	Dec. 31, 2017USD ($)	Dec. 31, 2016GBP (£)	Dec. 31, 2016USD ($)	Dec. 31, 2015GBP (£)	Dec. 31, 2015USD ($)	Dec. 31, 2014	Jul. 25, 2017
Disclosure Of Transactions Between Related Parties [Line Items]
Deferred tax charges			£ (72,000,000)		£ 14,000,000		£ 27,000,000
Restructuring charges			14,000,000		7,000,000		39,000,000
Tobacco litigation charges			32,000,000		17,000,000		26,000,000
Termination of manufacturing agreement					18,000,000		0
Associates And Joint Ventures
Disclosure Of Transactions Between Related Parties [Line Items]
Ownership interest acquired										57.80%
Subsidiaries
Disclosure Of Transactions Between Related Parties [Line Items]
Gains (losses) on remeasuring available-for-sale financial assets, before tax			(27,000,000)				14,000,000
Groups Share in Associates and Joint Ventures
Disclosure Of Transactions Between Related Parties [Line Items]
– gain on deemed divestment of RAI			23,288,000,000
Transaction costs			33,000,000		0		0
Deferred tax charges			18,000,000		0		0
Income related to NPM adjustment			£ 4,000,000		£ 2,000,000		£ 18,000,000
ITC Ltd.
Disclosure Of Transactions Between Related Parties [Line Items]
Percentage of interest in associate			29.71%	29.71%	29.89%	29.89%	30.06%	30.06%	30.26%
Gain on sale of interest in associate			£ 29,000,000		£ 11,000,000		£ 22,000,000
ITC Ltd. | Associates And Joint Ventures
Disclosure Of Transactions Between Related Parties [Line Items]
Percentage of interest in associate			29.71%	29.71%	29.89%	29.89%
Reynolds American Inc.
Disclosure Of Transactions Between Related Parties [Line Items]
Percentage of interest in associate	42.00%	42.20%
Ownership interest acquired										57.80%
Gain on sale of international rights | $						$ 4,861,000,000
Share of net gain sale of assets					£ 941,000,000		371,000,000
Transaction costs | $				$ 125,000,000		5,000,000		$ 54,000,000
Deferred tax charges				51,000,000	61,000,000		22,000,000
Restructuring charges | $				79,000,000		36,000,000		223,000,000
Tobacco litigation charges | $				162,000,000		86,000,000		152,000,000
Income related to NPM adjustment | $				$ 17,000,000		6,000,000		108,000,000
Termination of manufacturing agreement | $						90,000,000		0
Financing costs | $						$ 243,000,000		60,000,000
Asset impairment and exit charges | $								99,000,000
Reynolds American Inc. | Associates And Joint Ventures
Disclosure Of Transactions Between Related Parties [Line Items]
Ownership interest acquired										57.80%
Reynolds American Inc. | Groups Share in Associates and Joint Ventures
Disclosure Of Transactions Between Related Parties [Line Items]
Transaction costs					1,000,000		12,000,000
Financing costs					£ 47,000,000		10,000,000
Asset impairment and exit charges							25,000,000
Groups Share in Associates and Joint Ventures
Disclosure Of Transactions Between Related Parties [Line Items]
– gain on deemed divestment of RAI			£ 23,288,000,000
Lorillard Inc
Disclosure Of Transactions Between Related Parties [Line Items]
Gain on divestiture of assets | $								$ 3,288,000,000
Share of net gain sale of assets							£ 371,000,000

Associates and Joint Ventures88

Associates and Joint Ventures - Summary of Group's Share of the Result of Associates and Joint Ventures (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items]
Profit on ordinary activities after taxation – attributable to owners of the Parent	£ 37,533	£ 4,648	£ 4,290
Other comprehensive income:
Total comprehensive income for the year, net of tax	34,573	6,426	3,936
Groups Share in Associates and Joint Ventures
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items]
Profit on ordinary activities after taxation – attributable to owners of the Parent	24,209	2,227	1,236
Other comprehensive income:
Differences on exchange	(923)	1,425	336
– net fair value gains/(losses) in respect of associates net of tax	5	(10)	1
Actuarial gains relating to pensions and other post-retirement benefits	25	20	3
Total comprehensive income for the year, net of tax	£ 23,316	£ 3,662	£ 1,576

Associates and Joint Ventures89

Associates and Joint Ventures - Summary of Financial Information of the Group's Associates and Joint Ventures (Details) - GBP (£) £ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items]
Revenue	[1]	£ 20,292	£ 14,751	£ 13,104
Profit/(loss) before taxation		29,591	6,245	5,855
Post-tax results of associates and joint ventures		37,704	4,839	4,522
Other comprehensive income		(3,131)	1,587	(586)
Total comprehensive income		34,573	6,426	3,936
Associates And Joint Ventures
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items]
Revenue		14,085	16,491	11,186
Profit/(loss) before taxation		4,063	8,902	5,782
Post-tax results of associates and joint ventures		2,600	5,605	3,225
Other comprehensive income		(738)	3,659	703
Total comprehensive income		1,862	9,264	3,928
Reynolds American Inc.
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items]
Revenue		5,525	9,224	6,986
Profit/(loss) before taxation		2,017	7,111	4,250
Post-tax results of associates and joint ventures		1,261	4,457	2,203
Other comprehensive income		(595)	3,125	684
Total comprehensive income		666	7,582	2,887
ITC Ltd.
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items]
Revenue		6,607	5,350	3,839
Profit/(loss) before taxation		2,054	1,743	1,505
Post-tax results of associates and joint ventures		1,362	1,114	1,005
Other comprehensive income		(135)	712	43
Total comprehensive income		1,227	1,826	1,048
Other Associates
Disclosure of Associate and Joint Venture Results and Other Comprehensive Income [Line Items]
Revenue		1,953	1,917	361
Profit/(loss) before taxation		(8)	48	27
Post-tax results of associates and joint ventures		(23)	34	17
Other comprehensive income		(8)	(178)	(24)
Total comprehensive income		£ (31)	£ (144)	£ (7)
[1]	Revenue is net of duty, excise and other taxes of £37,780 million, £32,136 million and £27,896 million for the years ended 31 December 2017, 2016 and 2015, respectively.

Taxation on Ordinary Activiti90

Taxation on Ordinary Activities - Summary of Taxation on Ordinary Activities (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Taxation on Ordinary Activities [Line Items]
Total current tax	£ 1,643	£ 1,402	£ 1,329
– adjustments in respect of prior periods	2	13	7
Deferred tax	(9,756)	4	4
– deferred tax relating to origination and reversal of temporary differences	(136)	4	(11)
– deferred tax relating to changes in tax rates	(9,620)		15
Taxation on ordinary activities	(8,113)	1,406	1,333
United Kingdom
Disclosure Of Taxation on Ordinary Activities [Line Items]
Total current tax	26	7	5
All foreign countries
Disclosure Of Taxation on Ordinary Activities [Line Items]
Total current tax	1,617	1,395	1,324
– current year tax expense	1,615	1,382	1,317
– adjustments in respect of prior periods	£ 2	£ 13	£ 7

Taxation on Ordinary Activiti91

Taxation on Ordinary Activities - Additional Information (Details) £ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017GBP (£)CorporateGroup	Dec. 31, 2017USD ($)CorporateGroup	Dec. 31, 2016GBP (£)	Dec. 31, 2016USD ($)	Dec. 31, 2015GBP (£)	Dec. 31, 2015USD ($)
Income Tax Disclosure [Line Items]
– FII GLO receipts						£ 963
Corporation tax rate		19.00%	19.00%	20.00%	20.00%	20.00%	20.00%
Income tax benefit		£ 9,620				£ (15)
Release of deferred tax on unremitted earnings of associates		180
Additional deferred tax charge		(72)		£ 14		27
Tax on adjusting items		454		128		80
Investments in associates and joint ventures		1,577		9,507
Non-controlling interests’ share of the adjusting items net of tax		4		1		3
Scenario, Forecast
Income Tax Disclosure [Line Items]
Effective income tax rate	21.00%
Reynolds American Inc.
Income Tax Disclosure [Line Items]
Deemed repatriation tax		34
Release of deferred tax on unremitted earnings of associates		£ 180
Share of net gain sale of assets				941		371
Additional deferred tax charge			$ 51	61		22
Deemed gain related to investment					$ 931	£ 601	$ 931
Investments in associates and joint ventures				£ 13,592			$ 4,700
United Kingdom
Income Tax Disclosure [Line Items]
Corporation tax rate		19.00%	19.00%	20.00%	20.00%	20.00%	20.00%
Interest on tax payables including FIIGLO
Income Tax Disclosure [Line Items]
Number of corporate groups in FII GLO | CorporateGroup		25	25
Litigation settlement amount ordered by court		£ 1,200
Litigation settlement amount received						£ 1,224
Tax on litigation settlement						£ 261
Tax rate on litigation settlement						45.00%	45.00%
– FII GLO receipts						£ 963
Interest related to FII GLO		£ 25		£ 25		£ 8

Taxation on Ordinary Activiti92

Taxation on Ordinary Activities - Summary of Factors Affecting the Taxation Charge (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation Of Accounting Profit Multiplied By Applicable Tax Rates [Abstract]
Profit before tax	£ 29,591	£ 6,245	£ 5,855
Less: share of post-tax results of associates and joint ventures	(24,209)	(2,227)	(1,236)
Profit net of tax	5,382	4,018	4,619
Tax at 19% (2016: 20%; 2015: 20%) on the above	1,023	804	924
Tax at standard rates other than UK corporation tax rate	392	93	231
Other national tax charges	119	74	77
Permanent differences	40	143	(147)
Oversea tax on distributions	25	41	28
Overseas withholding taxes	191	200	145
Double taxation relief on UK profits	(29)	(8)	(6)
(Utilised)/unutilised tax losses	(38)	32	32
– adjustments in respect of prior periods	2	13	7
– deferred tax relating to changes in tax rates	(9,620)		15
Deemed US repatriation tax	34
Release of deferred tax on unremitted earnings of associates	(180)
Additional net deferred tax (credits)/charges	(72)	14	27
Tax, net of factors affecting the tax rate	£ (8,113)	£ 1,406	£ 1,333
Corporation tax rate	19.00%	20.00%	20.00%
Tax at standard rates other than UK corporation tax rate, percentage	7.30%	2.30%	5.00%
Other national tax charges, percentage	2.20%	1.90%	1.70%
Permanent differences, percentage	0.70%	3.60%	(3.20%)
Overseas tax on distributions, percentage	0.50%	1.00%	0.60%
Overseas withholding taxes, percentage	3.50%	5.00%	3.10%
Double taxation relief on UK profits, percentage	(0.50%)	(0.20%)	(0.10%)
(Utilised)/unutilised tax losses, percentage	(0.70%)	0.80%	0.70%
Adjustments in respect of prior periods, percentage		0.30%	0.20%
Deferred tax relating to changes in tax rates, percentage	(178.70%)		0.30%
Deemed US repatriation tax, percentage	0.60%
Release of deferred tax on unremitted earnings of associates, percentage	(3.30%)
Additional net deferred tax (credits)/charges, percentage	(1.30%)	0.30%	0.60%
Tax, net of factors affecting the tax rate, percentage	(150.70%)	35.00%	28.90%

Taxation on Ordinary Activiti93

Taxation on Ordinary Activities - Summary of Factors Affecting the Taxation Charge (Parenthetical) (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Reconciliation Of Effective Tax Rate [Line Items]
Corporation tax rate	19.00%	20.00%	20.00%
United Kingdom
Disclosure Of Reconciliation Of Effective Tax Rate [Line Items]
Corporation tax rate	19.00%	20.00%	20.00%

Taxation on Ordinary Activiti94

Taxation on Ordinary Activities - Summary of Tax on Items Recognised Directly in Other Comprehensive Income (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Tax On Items Recognised Directly In Other Comprehensive Income [Abstract]
Current tax	£ (4)	£ (53)	£ 7
Deferred tax	(133)	70	(9)
(Charged)/credited to other comprehensive income	£ (137)	£ 17	£ (2)

Earnings Per Share - Summary of

Earnings Per Share - Summary of Earnings Per Share (Details) - GBP (£) £ / shares in Units, £ in Millions, shares in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Line Items]
Basic earnings per share (ordinary shares of 25p each), Earnings	£ 37,533	£ 4,648	£ 4,290
Diluted earnings per share, Earnings	£ 37,533	£ 4,648	£ 4,290
Basic earnings per share (ordinary shares of 25p each), Weighted average number of shares	2,044	1,858	1,858
Diluted earnings per share, Weighted average number of shares	2,051	1,865	1,863
Basic earnings per share (ordinary shares of 25p each), Earnings per share pence	£ 1,836.3	£ 250.2	£ 230.9
Diluted earnings per share, Earnings per share pence	£ 1,830	£ 249.2	£ 230.3
Share Options
Earnings Per Share [Line Items]
Share options, Weighted average number of shares	7	7	5
Share options, Earnings per share pence	£ (6.3)	£ (1)	£ (0.6)

Earnings Per Share - Summary 96

Earnings Per Share - Summary of Earnings Per Share (Parenthetical) (Details)	12 Months Ended
	Dec. 31, 2017£ / shares
Earnings Per Share [Abstract]
Ordinary price per shares	£ 0.25

Earnings Per Share - Summary 97

Earnings Per Share - Summary of Adjusted Earnings Per Share (Details) - GBP (£) £ / shares in Units, £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Adjusted Earnings Per Share [Line Items]
Diluted earnings per share	£ 37,533	£ 4,648	£ 4,290
Effect of restructuring and integration costs (diluted)	600	603	367
Tax and non-controlling interests on restructuring and integration costs (diluted)	(133)	(90)	(74)
Effect of amortisation and impairment of trademarks and similar intangibles (diluted)	383	149	65
Tax on amortisation and impairment of trademarks and similar intangibles (diluted)	(90)	(32)	(9)
Effect of associates' adjusting items net of tax (diluted)	(23,197)	(900)	(293)
Other adjusting items (diluted)	534	53
Tax effect on other adjusting items (diluted)	(184)	(5)
Deferred tax relating to changes in tax rates (diluted)	(9,586)
Release of deferred tax on unremitted earnings from associates (diluted)	(180)
Effect of certain costs and fees related to the acquisition of NCI in Souza Cruz and investment in RAI (diluted)			104
Effect of hedge ineffectiveness (diluted)	9	(18)
Tax effect on hedge ineffectiveness (diluted)	(2)
Effect of US bond buy back (diluted)		101
Adjusted earnings per share (diluted)	£ 5,834	£ 4,615	£ 3,882
Diluted earnings per share	£ 1,830	£ 249.2	£ 230.3
Effect of restructuring and integration costs per share (diluted)	29.3	32.3	19.7
Tax and non-controlling interests on restructuring and integration costs per share (diluted)	(6.5)	(4.8)	(4)
Effect of amortisation and impairment of trademarks and similar intangibles per share (diluted)	18.7	8	3.5
Tax on amortisation and impairment of trademarks and similar intangibles per share (diluted)	(4.4)	(1.7)	(0.5)
Effect of associates' adjusting items net of tax per share (diluted)	(1,131)	(48.3)	(15.7)
Other adjusting items per share (diluted)	26	2.9
Tax effect on other adjusting items per share (diluted)	(9)	(0.3)
Deferred tax relating to changes in tax rates per share (diluted)	(467.4)
Release of deferred tax on unremitted earnings from associates per share (diluted)	(8.8)
Effect of certain costs and fees related to the acquisition of NCI in Souza Cruz and investment in RAI per share (diluted)			5.6
Effect of hedge ineffectiveness per share (diluted)	0.4	(1)
Tax effect on hedge ineffectiveness per share (diluted)	(0.1)
Effect of US bond buy back per share (diluted)		5.5
Adjusted earnings per share (diluted)	£ 284.4	£ 247.5	£ 208.4
Basic earnings per share	£ 37,533	£ 4,648	£ 4,290
Effect of restructuring and integration costs (basic)	600	603	367
Tax and non-controlling interests on restructuring and integration costs (basic)	(133)	(90)	(74)
Effect of amortisation and impairment of trademarks and similar intangibles (basic)	383	149	65
Tax on amortisation and impairment of trademarks and similar intangibles (basic)	(90)	(32)	(9)
Effect of associates' adjusting items net of tax (basic)	(23,197)	(900)	(293)
Other adjusting items (basic)	534	53
Tax effect on other adjusting items (basic)	(184)	(5)
Deferred tax relating to changes in tax rates (basic)	(9,586)
Release of deferred tax on unremitted earnings from associates (basic)	(180)
Effect of certain costs and fees related to the acquisition of NCI in Souza Cruz and investment in RAI (basic)			104
Effect of hedge ineffectiveness (basic)	9	(18)
Tax effect on hedge ineffectiveness (basic)	(2)
Effect of US bond buy back (basic)		101
Adjusted earnings per share (basic)	£ 5,834	£ 4,615	£ 3,882
Basic earnings per share (ordinary shares of 25p each), Earnings per share pence	£ 1,836.3	£ 250.2	£ 230.9
Effect of restructuring and integration costs per share (basic)	29.4	32.4	19.7
Tax and non-controlling interests on restructuring and integration costs per share (basic)	(6.5)	(4.9)	(4)
Effect of amortisation and impairment of trademarks and similar intangibles per share (basic)	18.7	8	3.5
Tax on amortisation and impairment of trademarks and similar intangibles per share (basic)	(4.4)	(1.7)	(0.5)
Effect of associates' adjusting items net of tax per share (basic)	(1,134.9)	(48.4)	(15.8)
Other adjusting items per share (basic)	26.1	2.9
Tax effect on other adjusting items per share (basic)	(9)	(0.3)
Deferred tax relating to changes in tax rates per share (basic)	(469)
Release of deferred tax on unremitted earnings from associates per share (basic)	(8.8)
Effect of certain costs and fees related to the acquisition of NCI in Souza Cruz and investment in RAI per share (basic)			5.6
Effect of hedge ineffectiveness per share (basic)	0.4	(1)
Tax effect on hedge ineffectiveness per share (basic)	(0.1)
Effect of US bond buy back per share (basic)		5.5
Adjusted earnings per share (basic)	£ 285.4	£ 248.4	£ 208.9
Fox River
Adjusted Earnings Per Share [Line Items]
Effect of currency charge (diluted)		£ 20
Effect of currency charge per share (diluted)		£ 1.1
Effect of currency charge (basic)		£ 20
Effect of currency charge per share (basic)		£ 1.1
Flintkote
Adjusted Earnings Per Share [Line Items]
Effect of currency charge (diluted)			£ 3
Effect of currency charge per share (diluted)			£ 0.2
Effect of currency charge (basic)			£ 3
Effect of currency charge per share (basic)			£ 0.2
FIIGLO
Adjusted Earnings Per Share [Line Items]
Effect of interest on FII GLO settlement and other (diluted)	£ 43	£ 25	£ 8
Effect of interest on FII GLO settlement and other per share (diluted)	£ 2.1	£ 1.3	£ 0.4
Effect of interest on FII GLO settlement and other (basic)	£ 43	£ 25	£ 8
Effect of interest on FII GLO settlement and other per share (basic)	£ 2.1	£ 1.3	£ 0.4
Reynolds American Inc.
Adjusted Earnings Per Share [Line Items]
Effect of deemed gain related to investment in RAI (diluted)			£ (601)
Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) (diluted)		£ 61	£ 22
Effect of adjusting finance costs in relation to acquisition of RAI (diluted)	£ 153
Tax Effect of adjusting finance costs in relation to acquisition of RAI (diluted)	£ (49)
Effect of deemed gain related to investment in RAI per share (diluted)			£ (32.3)
Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) per share (diluted)		£ 3.3	£ 1.2
Effect of adjusting finance costs in relation to acquisition of RAI per share (diluted)	£ 7.5
Tax Effect of adjusting finance costs in relation to acquisition of RAI per share (diluted)	£ (2.4)
Effect of deemed gain related to investment in RAI (basic)			£ (601)
Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) (basic)		£ 61	£ 22
Effect of adjusting finance costs in relation to acquisition of RAI (basic)	£ 153
Tax Effect of adjusting finance costs in relation to acquisition of RAI (basic)	£ (49)
Effect of deemed gain related to investment in RAI per share (basic)			£ (32.3)
Effect of additional deferred tax charge from gain on divestiture of assets by associate (RAI) per share (basic)		£ 3.3	£ 1.2
Effect of adjusting finance costs in relation to acquisition of RAI per share (basic)	£ 7.5
Tax Effect of adjusting finance costs in relation to acquisition of RAI per share (basic)	£ (2.4)

Earnings Per Share - Summary 98

Earnings Per Share - Summary of Headline Earnings Per Share (Details) - GBP (£) £ / shares in Units, £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Headline Earnings Loss [Abstract]
Diluted earnings per share	£ 37,533	£ 4,648	£ 4,290
Effect of impairment of intangibles, property, plant and equipment, and assets held for sale (diluted)	179	126	27
Tax and non-controlling interests on impairment of intangibles, and property, plant and equipment (diluted)	(35)	(35)	(6)
Effect of gains on disposal of property, plant and equipment and held-for-sale assets (diluted)	(48)	(59)	(60)
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets (diluted)	13	30	19
Gain on deemed disposal of RAI associate (diluted)	(23,288)
Write off of investment in associate (diluted)	27
Effect of gains reclassified from the available-for-sale reserve (diluted)			(10)
Tax and non-controlling interests on gains reclassified from the available-for-sale reserve (diluted)			3
Share of associates' impairment losses and non-current investments (diluted)			17
Share of associates' gains on disposal of assets (diluted)		(941)	(371)
Tax effect of associates' disposal of assets (diluted)		61	22
Issue of shares and change in shareholding in associate (diluted)	(29)	(11)	(22)
Headline earnings per share (diluted)	£ 14,352	£ 3,819	£ 3,909
Diluted earnings per share	£ 1,830	£ 249.2	£ 230.3
Effect of impairment of intangibles, property, plant and equipment, and assets held for sale per share (diluted)	8.6	6.8	1.4
Tax and non-controlling interests on impairment of intangibles, and property, plant and equipment per share (diluted)	(1.7)	(1.9)	(0.3)
Effect of gains on disposal of property, plant and equipment and held-for-sale assets per share (diluted)	(2.3)	(3.2)	(3.2)
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets per share (diluted)	0.6	1.6	1
Gain on deemed disposal of RAI associate per share (diluted)	(1,135.4)
Write off of investment in associate per share (diluted)	1.3
Effect of gains reclassified from the available-for-sale reserve per share (diluted)			(0.6)
Tax and non-controlling interests on gains reclassified from the available-for-sale reserve per share (diluted)			0.2
Share of associates' impairment losses and non-current investments per share (diluted)			0.9
Share of associates' gains on disposal of assets per share (diluted)		(50.4)	(19.9)
Tax effect of associates' disposal of assets per share (diluted)		3.3	1.2
Issue of shares and change in shareholding in associate per share (diluted)	(1.4)	(0.6)	(1.2)
Headline earnings per share (diluted)	£ 699.7	£ 204.8	£ 209.8
Basic earnings per share	£ 37,533	£ 4,648	£ 4,290
Effect of impairment of intangibles, property, plant and equipment and assets held for sale	179	126	27
Tax and non-controlling interests on impairment of intangibles and property, plant and equipment	(35)	(35)	(6)
Effect of gains on disposal of property, plant and equipment and held-for-sale assets	(48)	(59)	(60)
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets	13	30	19
Gain on deemed disposal of RAI associate	(23,288)
Write off of investment in associate	27
Effect of gains reclassified from the available-for-sale reserve			(10)
Tax and non-controlling interests on gains reclassified from the available-for-sale reserve			3
Share of associates' impairment losses and non-current investments (basic)			17
Share of associates' gains on disposal of assets		(941)	(371)
Tax effect of associates' disposal of assets		61	22
Issue of shares and change in shareholding in associate	(29)	(11)	(22)
Headline earnings per share (basic)	£ 14,352	£ 3,819	£ 3,909
Basic earnings per share (ordinary shares of 25p each), Earnings per share pence	£ 1,836.3	£ 250.2	£ 230.9
Effect of impairment of intangibles, property, plant and equipment, and assets held for sale (basic)	8.7	6.8	1.4
Tax and non-controlling interests on impairment of intangibles, and property, plant and equipment per share (basic)	(1.7)	(1.9)	(0.3)
Effect of gains on disposal of property, plant and equipment and held-for-sale assets per share (basic)	(2.3)	(3.2)	(3.2)
Tax and non-controlling interests on disposal of property, plant and equipment and held-for-sale assets per share (basic)	0.6	1.6	1
Gain on deemed disposal of RAI associate per share (basic)	(1,139.3)
Write off of investment in associate per share (basic)	1.3
Effect of gains reclassified from the available-for-sale reserve per share (basic)			(0.6)
Tax and non-controlling interests on gains reclassified from the available-for-sale reserve per share (basic)			0.2
Share of associates' impairment losses and non-current investments per share (basic)			0.9
Share of associates' gains on disposal of assets per share (basic)		(50.6)	(19.9)
Tax effect of associates' disposal of assets per share (basic)		3.3	1.2
Issue of shares and change in shareholding in associate per share (basic)	(1.4)	(0.6)	(1.2)
Headline earnings per share (basic)	£ 702.2	£ 205.6	£ 210.4

Dividends and Other Appropria99

Dividends and Other Appropriations - Summary of Detailed Information About Dividends (Details) - GBP (£)	Feb. 08, 2018	May 04, 2017	Feb. 28, 2017	Sep. 28, 2016	May 05, 2016	Sep. 30, 2015	May 07, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Dividends [Abstract]
GBP per share	£ 43.6	£ 118.1	£ 56.5	£ 51.3	£ 104.6	£ 49.4	£ 100.6	£ 218.2	£ 155.9	£ 150
Ordinary shares	£ 1,004,000,000	£ 2,181,000,000	£ 1,284,000,000	£ 961,000,000	£ 1,949,000,000	£ 908,000,000	£ 1,862,000,000	£ 4,469,000,000	£ 2,910,000,000	£ 2,770,000,000

Dividends and Other Appropri100

Dividends and Other Appropriations - Additional Information (Details) £ / shares in Units, £ in Millions	Feb. 08, 2018GBP (£)	Dec. 31, 2017GBP (£)InterimDividend£ / shares	Dec. 31, 2016GBP (£)£ / shares	Dec. 31, 2015GBP (£)£ / shares
Disclosure Of Dividends [Line Items]
Number of interim quarterly dividend payments | InterimDividend		4
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | £ / shares		£ 0.436
Interim dividend payable date		Feb. 8, 2018
Dividend declared per share | £ / shares		£ 218.2	£ 169.4	£ 154
Dividend declared | £		£ 4,465	£ 3,155	£ 2,851
Major Ordinary Share Transactions
Disclosure Of Dividends [Line Items]
Dividend declared | £	£ 1,000

Intangible Assets - Schedule of

Intangible Assets - Schedule of Movement In Intangible Assets (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Intangible Assets [Line Items]
Cost	£ 12,117	£ 10,436
Differences on exchange	(3,861)	1,795
– internal development	87	60
– acquisitions	109,838	42
– separately acquired	127	22
Amortisation charge	(356)	(205)
Impairment	(167)	(33)
Cost	117,785	12,117
Cost
Disclosure Of Intangible Assets [Line Items]
Cost	13,392	11,437
Cost	119,473	13,392
Accumulated amortisation and impairment
Disclosure Of Intangible Assets [Line Items]
Accumulated amortisation and impairment	(1,688)	(1,275)	£ (1,001)
Goodwill
Disclosure Of Intangible Assets [Line Items]
Cost	11,023	9,324
Differences on exchange	(1,189)	1,690
– acquisitions	34,313	9
Cost	44,147	11,023
Goodwill | Cost
Disclosure Of Intangible Assets [Line Items]
Cost	11,023	9,324
Cost	44,147	11,023
Computer Software
Disclosure Of Intangible Assets [Line Items]
Cost	438	349
Differences on exchange	(3)	2
– internal development		11
– acquisitions	33
– separately acquired	29	1
Reallocations	80	147
Amortisation charge	(88)	(72)
Impairment	(42)
Cost	447	438
Computer Software | Cost
Disclosure Of Intangible Assets [Line Items]
Cost	1,054	918
Cost	1,119	1,054
Computer Software | Accumulated amortisation and impairment
Disclosure Of Intangible Assets [Line Items]
Accumulated amortisation and impairment	(672)	(616)	(569)
Trademarks and Similar Intangibles
Disclosure Of Intangible Assets [Line Items]
Cost	596	583
Differences on exchange	(2,669)	96
– acquisitions	75,488	33
– separately acquired	98	21
Reallocations		29
Amortisation charge	(268)	(133)
Impairment	(125)	(33)
Cost	73,120	596
Trademarks and Similar Intangibles | Cost
Disclosure Of Intangible Assets [Line Items]
Cost	1,255	1,015
Cost	74,136	1,255
Trademarks and Similar Intangibles | Accumulated amortisation and impairment
Disclosure Of Intangible Assets [Line Items]
Accumulated amortisation and impairment	(1,016)	(659)	£ (432)
Assets In the Course of Development
Disclosure Of Intangible Assets [Line Items]
Cost	60	180
Differences on exchange		7
– internal development	87	49
– acquisitions	4
Reallocations	(80)	(176)
Cost	71	60
Assets In the Course of Development | Cost
Disclosure Of Intangible Assets [Line Items]
Cost	60	180
Cost	£ 71	£ 60

Intangible Assets - Additional

Intangible Assets - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017GBP (£)CashGeneratingUnit	Dec. 31, 2016GBP (£)CashGeneratingUnit	Jul. 25, 2017GBP (£)	Dec. 31, 2015GBP (£)
Disclosure Of Intangible Assets [Line Items]
Internally developed assets, carrying value	£ 87,000,000	£ 60,000,000
Future contractual commitments	16,000,000	0
Goodwill	£ 44,147,000,000	£ 11,023,000,000		£ 9,324,000,000
Number of cash-generating units assessed for impairment | CashGeneratingUnit	19	18
Percentage of growth of cash flow in financial budget In year 2	5.00%
Percentage of growth of operating units in financial budget In year 3 to 10 per annum	4.00%	4.00%
Percentage of inflation rate in financial budget	1.00%	1.00%
Percentage of total growth rate assumed	2.00%	2.00%
Sensitivity analysis - reduction in cash flows	10.00%
Sensitivity analysis - increase in post-tax discount rate	1.00%
Impairment amount if discount rate increase at post rate of one percent	0.00%
Bottom of Range
Disclosure Of Intangible Assets [Line Items]
Pre-tax discount rate	6.60%	7.20%
Top of Range
Disclosure Of Intangible Assets [Line Items]
Pre-tax discount rate	19.20%	20.00%
Next Generation Products
Disclosure Of Intangible Assets [Line Items]
Number of cash-generating units assessed for impairment | CashGeneratingUnit	2	2
United States
Disclosure Of Intangible Assets [Line Items]
Number of cash-generating units assessed for impairment | CashGeneratingUnit	1	0
Asia-Pacific
Disclosure Of Intangible Assets [Line Items]
Number of cash-generating units assessed for impairment | CashGeneratingUnit	5	5
Americas
Disclosure Of Intangible Assets [Line Items]
Number of cash-generating units assessed for impairment | CashGeneratingUnit	5	5
Western Europe
Disclosure Of Intangible Assets [Line Items]
Number of cash-generating units assessed for impairment | CashGeneratingUnit	3	3
EEMEA
Disclosure Of Intangible Assets [Line Items]
Number of cash-generating units assessed for impairment | CashGeneratingUnit	3	3
Reynolds American Inc.
Disclosure Of Intangible Assets [Line Items]
Goodwill	£ 33,062,000,000	£ 0	£ 34,280,000,000
Reynolds American Inc. | Trademarks and Similar Intangibles
Disclosure Of Intangible Assets [Line Items]
Intangible assets	69,562,000,000
Skandinavisk Tobakskompagni
Disclosure Of Intangible Assets [Line Items]
Goodwill	1,102,000,000	1,061,000,000
Rothmans Group
Disclosure Of Intangible Assets [Line Items]
Goodwill	4,834,000,000	4,809,000,000
Imperial Tobacco Canada
Disclosure Of Intangible Assets [Line Items]
Goodwill	2,367,000,000	2,420,000,000
ETI
Disclosure Of Intangible Assets [Line Items]
Goodwill	1,462,000,000	1,406,000,000
Trademarks and Similar Intangibles | Reynolds American Inc.
Disclosure Of Intangible Assets [Line Items]
Intangible assets	3,097,000,000	0
Trademarks and Similar Intangibles | TDR D.O.O
Disclosure Of Intangible Assets [Line Items]
Intangible assets	61,000,000	105,000,000
Trademarks and Similar Intangibles | Sudan
Disclosure Of Intangible Assets [Line Items]
Intangible assets	29,000,000	37,000,000
Trademarks and Similar Intangibles | Chic
Disclosure Of Intangible Assets [Line Items]
Intangible assets	29,000,000	40,000,000
Trademarks and Similar Intangibles | Skandinavisk Tobakskompagni
Disclosure Of Intangible Assets [Line Items]
Intangible assets	230,000,000	244,000,000
Trademarks and Similar Intangibles | Tekel
Disclosure Of Intangible Assets [Line Items]
Intangible assets	11,000,000	16,000,000
Trademarks and Similar Intangibles | Bentoel
Disclosure Of Intangible Assets [Line Items]
Intangible assets	8,000,000	15,000,000
Trademarks and Similar Intangibles | Protabaco
Disclosure Of Intangible Assets [Line Items]
Intangible assets	0	30,000,000
Carrying Value | Computer Software and Assets in the Course of Development | Internally Developed
Disclosure Of Intangible Assets [Line Items]
Internally developed assets, carrying value	£ 459,000,000	£ 484,000,000

Intangible Assets - Schedule103

Intangible Assets - Schedule of Cash Generating Unit (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items]
Goodwill	£ 44,147	£ 11,023	£ 9,324
Individual Assets Or Cash Generating Units
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items]
Goodwill	44,147	11,023
Individual Assets Or Cash Generating Units | Reynolds American Inc.
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items]
Goodwill	£ 33,062
Pre-tax discount rate	7.70%
Individual Assets Or Cash Generating Units | Canada
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items]
Goodwill	£ 2,367	£ 2,420
Pre-tax discount rate	7.50%	8.20%
Individual Assets Or Cash Generating Units | Western Europe
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items]
Goodwill	£ 4,033	£ 3,891
Pre-tax discount rate	7.30%	8.60%
Individual Assets Or Cash Generating Units | Eastern Europe
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items]
Goodwill	£ 980	£ 967
Pre-tax discount rate	8.10%	8.80%
Individual Assets Or Cash Generating Units | South Africa
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items]
Goodwill	£ 661	£ 656
Pre-tax discount rate	9.60%	10.10%
Individual Assets Or Cash Generating Units | Australia
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items]
Goodwill	£ 775	£ 785
Pre-tax discount rate	7.90%	8.60%
Individual Assets Or Cash Generating Units | Singapore
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items]
Goodwill	£ 591	£ 598
Pre-tax discount rate	6.60%	7.20%
Individual Assets Or Cash Generating Units | Malaysia
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items]
Goodwill	£ 431	£ 425
Pre-tax discount rate	8.30%	8.60%
Individual Assets Or Cash Generating Units | Other
Disclosure Of Information For Individual Asset Or Cashgenerating Unit With Significant Amount Of Goodwill Or Intangible Assets With Indefinite Useful Lives [Line Items]
Goodwill	£ 1,247	£ 1,281

Property, Plant and Equipment -

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Property Plant And Equipment [Line Items]
Net book value	£ 3,661	£ 3,021
Differences on exchange	(210)	425
– acquisitions (note 24)	1,041
– separately acquired	823	655
Depreciation	(388)	(337)
Impairment	(12)	(80)
Disposals	(16)	(13)
Net reclassifications as held-for-sale	(17)	(10)
Net book value	4,882	3,661
Cost
Disclosure Of Property Plant And Equipment [Line Items]
Net book value	7,149	5,793
Net book value	8,191	7,149
Accumulated amortisation and impairment
Disclosure Of Property Plant And Equipment [Line Items]
Accumulated depreciation and impairment	(3,309)	(3,488)	£ (2,772)
Freehold Property
Disclosure Of Property Plant And Equipment [Line Items]
Net book value	803	656
Differences on exchange	(33)	79
– acquisitions (note 24)	349
– separately acquired	23	13
Reallocations	(5)	76
Depreciation	(29)	(20)
Impairment	(1)
Disposals	(4)	3
Net reclassifications as held-for-sale	(17)	(4)
Net book value	1,086	803
Freehold Property | Cost
Disclosure Of Property Plant And Equipment [Line Items]
Net book value	1,163	944
Net book value	1,455	1,163
Freehold Property | Accumulated amortisation and impairment
Disclosure Of Property Plant And Equipment [Line Items]
Accumulated depreciation and impairment	(369)	(360)	(288)
Leasehold Property
Disclosure Of Property Plant And Equipment [Line Items]
Net book value	123	130
Differences on exchange	(11)	6
– acquisitions (note 24)	4
– separately acquired		4
Reallocations	35	6
Depreciation	(7)	(9)
Impairment	(1)	(5)
Disposals		(4)
Net reclassifications as held-for-sale		(5)
Net book value	143	123
Leasehold Property | Cost
Disclosure Of Property Plant And Equipment [Line Items]
Net book value	239	256
Net book value	267	239
Leasehold Property | Accumulated amortisation and impairment
Disclosure Of Property Plant And Equipment [Line Items]
Accumulated depreciation and impairment	(124)	(116)	(126)
Plant and Equipment
Disclosure Of Property Plant And Equipment [Line Items]
Net book value	2,031	1,633
Differences on exchange	(117)	263
– acquisitions (note 24)	626
– separately acquired	47	168
Reallocations	523	358
Depreciation	(352)	(308)
Impairment	(10)	(71)
Disposals	(12)	(11)
Net reclassifications as held-for-sale		(1)
Net book value	2,736	2,031
Plant and Equipment | Cost
Disclosure Of Property Plant And Equipment [Line Items]
Net book value	5,022	3,976
Net book value	5,552	5,022
Plant and Equipment | Accumulated amortisation and impairment
Disclosure Of Property Plant And Equipment [Line Items]
Accumulated depreciation and impairment	(2,816)	(2,991)	(2,343)
Assets in the Course of Construction
Disclosure Of Property Plant And Equipment [Line Items]
Net book value	704	602
Differences on exchange	(49)	77
– acquisitions (note 24)	62
– separately acquired	753	470
Reallocations	(553)	(440)
Impairment		(4)
Disposals		(1)
Net book value	917	704
Assets in the Course of Construction | Cost
Disclosure Of Property Plant And Equipment [Line Items]
Net book value	725	617
Net book value	£ 917	725
Assets in the Course of Construction | Accumulated amortisation and impairment
Disclosure Of Property Plant And Equipment [Line Items]
Accumulated depreciation and impairment		£ (21)	£ (15)

Property, Plant and Equipmen105

Property, Plant and Equipment - Additional Information (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Property Plant And Equipment [Line Items]
Net book value of assets held under finance leases	£ 29	£ 27
Property, plant and equipment	4,882	3,661	£ 3,021
Freehold Property
Disclosure Of Property Plant And Equipment [Line Items]
Property, plant and equipment	1,086	803	656
Carrying Value
Disclosure Of Property Plant And Equipment [Line Items]
Property, plant and equipment	8,191	7,149	5,793
Carrying Value | Freehold Property
Disclosure Of Property Plant And Equipment [Line Items]
Property, plant and equipment	1,455	1,163	£ 944
Carrying Value | Freehold Property | Globe House
Disclosure Of Property Plant And Equipment [Line Items]
Property, plant and equipment	£ 187	£ 188

Property, Plant and Equipmen106

Property, Plant and Equipment - Schedule of Cost of Freehold Land, Net Book Value of Leasehold Properties and Contracts Placed for Future Expenditure (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Property Plant And Equipment [Line Items]
Property, plant and equipment	£ 4,882	£ 3,661	£ 3,021
Contracts placed for future expenditure	85	29
Cost
Disclosure Of Property Plant And Equipment [Line Items]
Property, plant and equipment	8,191	7,149	5,793
Freehold Land within Freehold Property on Which no Depreciate is Provided | Cost
Disclosure Of Property Plant And Equipment [Line Items]
Property, plant and equipment	253	202
Leasehold Property
Disclosure Of Property Plant And Equipment [Line Items]
Property, plant and equipment	143	123	130
Leasehold Property | Cost
Disclosure Of Property Plant And Equipment [Line Items]
Property, plant and equipment	267	239	£ 256
Long Leasehold
Disclosure Of Property Plant And Equipment [Line Items]
Property, plant and equipment	104	80
Short Leasehold
Disclosure Of Property Plant And Equipment [Line Items]
Property, plant and equipment	£ 39	£ 43

Investments in Associates an107

Investments in Associates and Joint Ventures - Summary of Investments In Associates And Joint Ventures (Details) £ in Millions, $ in Billions	12 Months Ended
	Dec. 31, 2017GBP (£)	Dec. 31, 2016GBP (£)	Dec. 31, 2015GBP (£)	Dec. 31, 2015USD ($)
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Investments in associates and joint ventures	£ 9,507
Dividends paid by the associate	(688)	£ (1,024)
Proceeds from associates' share buy-backs		23
Investments in associates and joint ventures	1,577	9,507
Non-current assets for operations	127,072	27,414
Current assets	13,966	12,359
Non-current liabilities	(64,468)	(19,511)
Current liabilities	(15,544)	(11,856)
Reynolds American Inc.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Investments in associates and joint ventures	13,592
Dividends paid by the associate	(477)	(773)
Reclassification of Reynolds American Inc. (RAI)			£ 601
Investments in associates and joint ventures		13,592		$ 4.7
Non-current assets for operations		34,046
Current assets		3,480
Non-current liabilities		(20,089)
Current liabilities		(3,845)
ITC Ltd.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Investments in associates and joint ventures	4,663
Dividends paid by the associate	(204)	(245)
Investments in associates and joint ventures	5,141	4,663
Non-current assets for operations	3,738	3,730
Current assets	3,089	2,834
Non-current liabilities	(240)	(258)
Current liabilities	(1,446)	(1,643)
Associates And Joint Ventures
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Investments in associates and joint ventures	9,507	6,938
Total comprehensive income (note 5)	23,316	3,662
Dividends paid by the associate	(688)	(1,024)
Proceeds from associates' share buy-backs		(24)
Additions	13
Reclassification of Reynolds American Inc. (RAI)	(30,521)
Other equity movements	(50)	(45)
Investments in associates and joint ventures	1,577	9,507	£ 6,938
Non-current assets for operations	1,127	17,831
Current assets	1,019	2,439
Non-current liabilities	(67)	(8,552)
Current liabilities	(502)	(2,211)
Associates And Joint Ventures | Reynolds American Inc.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Investments in associates and joint ventures	8,051
Reclassification of Reynolds American Inc. (RAI)	(30,521)
Investments in associates and joint ventures		8,051
Associates And Joint Ventures | ITC Ltd.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Investments in associates and joint ventures	1,394
Investments in associates and joint ventures	1,527	1,394
Associates And Joint Ventures | Other Listed Associates
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Investments in associates and joint ventures	17
Investments in associates and joint ventures	18	17
Associates And Joint Ventures | Unlisted Associates
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Investments in associates and joint ventures	45
Investments in associates and joint ventures	£ 32	£ 45

Investments in Associates an108

Investments in Associates and Joint Ventures - Summary of Investments In Associates And Joint Ventures (Parenthetical) (Details) - Associates And Joint Ventures - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Reynolds American Inc.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Market value of investments in associates		£ 27,275
ITC Ltd.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Market value of investments in associates	£ 11,036	10,430
Other Listed Associates
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Market value of investments in associates	£ 184	£ 142

Investments in Associates an109

Investments in Associates and Joint Ventures - Additional Information (Details) - GBP (£) £ in Millions	Jun. 12, 2015	Jul. 30, 2004	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jul. 25, 2017
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Dividends paid by the associate			£ 688	£ 1,024
Reynolds American Inc.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Ownership interest acquired							57.80%
Deemed gain related to the investment in Reynolds					£ (601)
Dividends paid by the associate			477	£ 773
Percentage of interest in associate	42.00%	42.20%
Agrokor d.d.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Shares owned by related party in non-controlling interest				26.00%
ITC Ltd.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Dividends paid by the associate			£ 204	£ 245
Percentage of interest in associate			29.71%	29.89%	30.06%	30.26%
Associates And Joint Ventures
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Ownership interest acquired							57.80%
Deemed gain related to the investment in Reynolds			£ 30,521
Dividends paid by the associate			688	£ 1,024
Associates And Joint Ventures | Reynolds American Inc.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Ownership interest acquired							57.80%
Deemed gain related to the investment in Reynolds			30,521
Gains on disposals of investment			£ 23,288
Associates And Joint Ventures | ITC Ltd.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Percentage of interest in associate			29.71%	29.89%
Subsidiaries
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Gains (losses) on remeasuring available-for-sale financial assets, before tax			£ (27)		£ 14

Investments in Associates an110

Investments in Associates and Joint Ventures - Summary of Principal Associate Undertakings (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Significant Investments In Associates [Line Items]
Non-current assets for operations	£ 127,072	£ 27,414
Current assets	13,966	12,359
Non-current liabilities	(64,468)	(19,511)
Current liabilities	(15,544)	(11,856)
Investments in associates and joint ventures	1,577	9,507
ITC Ltd.
Disclosure Of Significant Investments In Associates [Line Items]
Non-current assets for operations	3,738	3,730
Current assets	3,089	2,834
Non-current liabilities	(240)	(258)
Current liabilities	(1,446)	(1,643)
Investments in associates and joint ventures	5,141	4,663
Associates And Joint Ventures
Disclosure Of Significant Investments In Associates [Line Items]
Non-current assets for operations	1,127	17,831
Current assets	1,019	2,439
Non-current liabilities	(67)	(8,552)
Current liabilities	(502)	(2,211)
Investments in associates and joint ventures	1,577	9,507	£ 6,938
Associates And Joint Ventures | ITC Ltd.
Disclosure Of Significant Investments In Associates [Line Items]
Investments in associates and joint ventures	£ 1,527	£ 1,394

Investments in Associates an111

Investments in Associates and Joint Ventures - Summary of Principal Associate Undertakings (Parenthetical) (Details) - ITC Ltd.	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure Of Significant Investments In Associates [Line Items]
Percentage of interest in associate	29.71%	29.89%	30.06%	30.26%
Associates And Joint Ventures
Disclosure Of Significant Investments In Associates [Line Items]
Percentage of interest in associate	29.71%	29.89%

Investments in Associates an112

Investments in Associates and Joint Ventures - Summary of Latest Published Information (Details) £ in Millions, $ in Billions	Dec. 31, 2017GBP (£)	Dec. 31, 2016GBP (£)	Dec. 31, 2015GBP (£)	Dec. 31, 2015USD ($)
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Non-current assets for operations	£ 127,072	£ 27,414
Current assets	13,966	12,359
Non-current liabilities	(64,468)	(19,511)
Current liabilities	(15,544)	(11,856)
Investments in associates and joint ventures	1,577	9,507
Goodwill	44,147	11,023	£ 9,324
Reynolds American Inc.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Non-current assets for operations		34,046
Current assets		3,480
Non-current liabilities		(20,089)
Current liabilities		(3,845)
Investments in associates and joint ventures		13,592		$ 4.7
Associates And Joint Ventures
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Non-current assets for operations	1,127	17,831
Current assets	1,019	2,439
Non-current liabilities	(67)	(8,552)
Current liabilities	(502)	(2,211)
Investments in associates and joint ventures	£ 1,577	9,507	£ 6,938
Associates And Joint Ventures | Reynolds American Inc.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Investments in associates and joint ventures		8,051
Group's share in associates excluding goodwill		5,733
Goodwill		£ 2,318

Investments in Associates an113

Investments in Associates and Joint Ventures - Summary of Latest Published Information (Parenthetical) (Details)	Dec. 31, 2016
Associates And Joint Ventures | Reynolds American Inc.
Disclosure Of Significant Investments In Associates And Joint Ventures [Line Items]
Percentage of interest in associate	42.20%

Retirement Benefit Schemes - Ad

Retirement Benefit Schemes - Additional Information (Details)	6 Months Ended	12 Months Ended
	Dec. 31, 2017GBP (£)RetirementBenefitArrangement	Dec. 31, 2018GBP (£)	Dec. 31, 2017GBP (£)RetirementBenefitArrangement	Dec. 31, 2016GBP (£)	Dec. 31, 2015GBP (£)
Disclosure Of Defined Benefit Plans [Line Items]
Number of retirement benefit arrangements operated by the Group’s subsidiary undertakings | RetirementBenefitArrangement	190		190
Description of basis of valuation of assets available for benefits			All schemes are formally valued at least every three years.
Percentage of principal schemes to total defined benefit schemes			85.00%
Description of basis of valuation of defined benefit schemes			For unfunded schemes in the USA, UK and Canada, 39% of the liabilities reported at year end are expected to be settled by the Group within ten years, 29% between ten and twenty years, 19% between twenty and thirty years, and 13% thereafter
Employee benefit costs, in respect of settlements, past service costs and defined contribution costs reported as part of restructuring costs			£ (12,000,000)	£ 17,000,000	£ (16,000,000)
Percentage of scheme liabilities relate to guaranteed benefits	95.00%		95.00%
Increase of actuarial assumption	£ 373,000,000		£ 373,000,000
Decrease of actuarial assumption	£ (373,000,000)		£ (373,000,000)
United Kingdom
Disclosure Of Defined Benefit Plans [Line Items]
Percentage of return-seeking assets scheme			20.00%
Percentage of risk-reducing assets scheme			80.00%
General inflation (%)	3.20%		3.20%	3.30%
Rate of increase in salaries (%)	3.20%		3.20%	3.30%
Discount rate (%)	2.50%		2.50%	2.60%
Germany
Disclosure Of Defined Benefit Plans [Line Items]
General inflation (%)	1.80%		1.80%	1.80%
Rate of increase in salaries (%)	2.50%		2.50%	2.50%
Discount rate (%)	1.90%		1.90%	1.70%
US
Disclosure Of Defined Benefit Plans [Line Items]
General inflation (%)	2.50%		2.50%	0.00%
Rate of increase in salaries (%)	3.90%		3.90%	0.00%
Discount rate (%)	3.70%		3.70%	0.00%
Canada
Disclosure Of Defined Benefit Plans [Line Items]
General inflation (%)	2.00%		2.00%	2.00%
Rate of increase in salaries (%)	3.00%		3.00%	3.00%
Discount rate (%)	3.30%		3.30%	3.70%
Funded Pension Plans
Disclosure Of Defined Benefit Plans [Line Items]
Pension schemes contribution	£ 83,000,000
Funded Postretirement Plans
Disclosure Of Defined Benefit Plans [Line Items]
Pension schemes contribution	20,000,000
Pension Schemes | United Kingdom
Disclosure Of Defined Benefit Plans [Line Items]
Value contributed to cover on-going service costs and additional contributions to eliminate a funding shortfall			£ 30,000,000
Additional contributions to cover on-going service costs and additional contributions to eliminate a funding shortfall			78,000,000	£ 78,000,000
Contributions to be paid to meet cost of future benefit accruals			18,000,000
Additional contributions to cover on-going service costs and additional contributions to eliminate a funding shortfall in 2018			11,000,000
Maximum charge to secure total contributions payable over the Group’s Head Office			£ 150,000,000
Year in which charge is due to be released			2,039
Percentage of unfunded benefit schemes			47.00%	64.00%
Pension Schemes | Germany
Disclosure Of Defined Benefit Plans [Line Items]
Company contributions to pension schemes, 2018	30,000,000		£ 30,000,000
Company contributions to pension schemes, 2019	38,000,000		38,000,000
Company contributions to pension schemes. 2020	38,000,000		38,000,000
Company contributions to pension schemes, 2021	38,000,000		38,000,000
Company contributions to pension schemes, 2022	38,000,000		38,000,000
Pension Schemes | Canada, the Netherlands and Switzerland
Disclosure Of Defined Benefit Plans [Line Items]
Company contributions to pension schemes, 2018	18,000,000		18,000,000
Company contributions to pension schemes, 2019	11,000,000		11,000,000
Company contributions to pension schemes. 2020	11,000,000		11,000,000
Company contributions to pension schemes, 2021	11,000,000		11,000,000
Company contributions to pension schemes, 2022	11,000,000		£ 11,000,000
Pension Schemes | US
Disclosure Of Defined Benefit Plans [Line Items]
Percentage of unfunded benefit schemes			33.00%
Healthcare Schemes
Disclosure Of Defined Benefit Plans [Line Items]
Increase of actuarial assumption	53,000,000		£ 53,000,000
Decrease of actuarial assumption	£ (45,000,000)		£ (45,000,000)
Healthcare Schemes | US
Disclosure Of Defined Benefit Plans [Line Items]
Percentage of unfunded benefit schemes			86.00%
General inflation (%)	7.00%		7.00%
Healthcare Schemes | Canada
Disclosure Of Defined Benefit Plans [Line Items]
General inflation (%)	5.00%		5.00%	4.80%
Healthcare Schemes | All Other Countries | Bottom of Range
Disclosure Of Defined Benefit Plans [Line Items]
Rate of increase in salaries (%)	0.50%		0.50%	0.00%
Discount rate (%)	0.50%		0.50%	0.00%
Healthcare Schemes | All Other Countries | Top of Range
Disclosure Of Defined Benefit Plans [Line Items]
Rate of increase in salaries (%)	4.00%		4.00%	5.20%
Discount rate (%)	10.00%		10.00%	7.70%
Administration Costs
Disclosure Of Defined Benefit Plans [Line Items]
Current service costs			£ 16,000,000	£ 4,000,000
Pension Scheme Contribution
Disclosure Of Defined Benefit Plans [Line Items]
Pension schemes contribution		£ 241,000,000	£ 254,000,000
Pension Scheme Contribution | Funded Pension Plans
Disclosure Of Defined Benefit Plans [Line Items]
Pension schemes contribution		86,000,000
Pension Scheme Contribution | Funded Postretirement Plans
Disclosure Of Defined Benefit Plans [Line Items]
Pension schemes contribution		£ 54,000,000

Retirement Benefit Schemes - Sc

Retirement Benefit Schemes - Schedule of Defined Benefit Amounts Recognised in Balance Sheets (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Present value of funded scheme liabilities	£ (13,025)	£ (7,630)
Unrecognised funded scheme surpluses	(23)	(18)	£ (11)	£ (13)
Net defined benefit liability	(698)	(371)
Funded Defined Benefit Obligation
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Present value of funded scheme liabilities	(11,868)	(7,155)
Fair value of funded scheme assets	12,350	7,278
Surplus (deficit) in plan	482	123
Unrecognised funded scheme surpluses	(23)	(18)
Surplus Deficit In Plan Net Unrecognised Funded	459	105
Unfunded Defined Benefit Obligation
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Present value of unfunded scheme liabilities	(1,157)	(476)
Net defined benefit liability	(698)	(371)
Pension Schemes
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Present value of funded scheme liabilities	(12,077)	(7,510)
Unrecognised funded scheme surpluses	(23)	(18)	£ (11)	£ (13)
Net defined benefit liability	57	(264)
Pension Schemes | Funded Defined Benefit Obligation
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Present value of funded scheme liabilities	(11,542)	(7,139)
Fair value of funded scheme assets	12,157	7,264
Surplus (deficit) in plan	615	125
Unrecognised funded scheme surpluses	(23)	(18)
Surplus Deficit In Plan Net Unrecognised Funded	592	107
Pension Schemes | Unfunded Defined Benefit Obligation
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Present value of unfunded scheme liabilities	(535)	(371)
Net defined benefit liability	57	(264)
Healthcare Schemes
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Present value of funded scheme liabilities	(948)	(120)
Net defined benefit liability	(755)	(107)
Healthcare Schemes | Funded Defined Benefit Obligation
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Present value of funded scheme liabilities	(326)	(16)
Fair value of funded scheme assets	193	14
Surplus (deficit) in plan	(133)	(2)
Surplus Deficit In Plan Net Unrecognised Funded	(133)	(2)
Healthcare Schemes | Unfunded Defined Benefit Obligation
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Present value of unfunded scheme liabilities	(622)	(105)
Net defined benefit liability	£ (755)	£ (107)

Retirement Benefit Schemes -116

Retirement Benefit Schemes - Schedule of Defined Net Liability Recognised in Balance Sheets (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
– retirement benefit scheme liabilities	£ (1,821)	£ (826)
– retirement benefit scheme assets	1,123	455
Net defined benefit liability	(698)	(371)
Pension Schemes
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
– retirement benefit scheme liabilities	(1,065)	(719)
– retirement benefit scheme assets	1,122	455
Net defined benefit liability	57	(264)
Healthcare Schemes
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
– retirement benefit scheme liabilities	(756)	(107)
– retirement benefit scheme assets	1
Net defined benefit liability	£ (755)	£ (107)

Retirement Benefit Schemes -117

Retirement Benefit Schemes - Schedule of Net Liabilities of Funded Pension Schemes by Territory (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Liabilities	£ (13,025)	£ (7,630)
Funded Defined Benefit Obligation
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Liabilities	(11,868)	(7,155)
Assets	12,350	7,278
Surplus (deficit) in plan	482	123
Pension Schemes
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Liabilities	(12,077)	(7,510)
Pension Schemes | Funded Defined Benefit Obligation
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Liabilities	(11,542)	(7,139)
Assets	12,157	7,264
Surplus (deficit) in plan	615	125
Pension Schemes | US
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Liabilities	(5,022)
Assets	4,640
Surplus (deficit) in plan	(382)
Pension Schemes | United Kingdom
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Liabilities	(3,133)	(3,529)
Assets	4,119	3,853
Surplus (deficit) in plan	986	324
Pension Schemes | Germany
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Liabilities	(998)	(1,020)
Assets	945	872
Surplus (deficit) in plan	(53)	(148)
Pension Schemes | Canada
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Liabilities	(782)	(796)
Assets	779	806
Surplus (deficit) in plan	(3)	10
Pension Schemes | Netherlands
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Liabilities	(769)	(737)
Assets	819	777
Surplus (deficit) in plan	50	40
Pension Schemes | Switzerland
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Liabilities	(330)	(370)
Assets	285	293
Surplus (deficit) in plan	(45)	(77)
Pension Schemes | Rest of Group
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Liabilities	(508)	(687)
Assets	570	663
Surplus (deficit) in plan	£ 62	£ (24)

Retirement Benefit Schemes -118

Retirement Benefit Schemes - Schedule of Defined Benefit Amounts Recognised in Income Statement (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Defined Benefit Plans [Line Items]
– current service cost	£ 104	£ 86
– past service cost/(credit)	11	(44)
– interest on scheme liabilities	310	235
– interest on scheme assets	(280)	(231)
– interest on unrecognised funded scheme surpluses	2	2	£ 1
Defined benefit schemes	147	48
Defined contribution schemes	68	53
Total amount recognised in the income statement	215	101	138
Pension Schemes
Disclosure Of Defined Benefit Plans [Line Items]
– current service cost	104	85
– past service cost/(credit)	11	(43)
– interest on scheme liabilities	291	229
– interest on scheme assets	(276)	(230)
– interest on unrecognised funded scheme surpluses	2	2	£ 1
Defined benefit schemes	132	43
Defined contribution schemes	68	53
Total amount recognised in the income statement	200	96
Healthcare Schemes
Disclosure Of Defined Benefit Plans [Line Items]
– current service cost		1
– past service cost/(credit)		(1)
– interest on scheme liabilities	19	6
– interest on scheme assets	(4)	(1)
Defined benefit schemes	15	5
Total amount recognised in the income statement	£ 15	£ 5

Retirement Benefit Schemes -119

Retirement Benefit Schemes - Schedule of Movements in Scheme Liabilities (Details) - Liabilities [Member] - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Defined Benefit Plans [Line Items]
Present value beginning balance	£ 7,630	£ 6,320
Differences on exchange	(234)	597
Current service costs	107	89
Past service cost/(credit)	4	(44)
Settlements	7	(34)
Interest on scheme liabilities	311	244
Contributions by scheme members	3	4
Benefits paid	(554)	(389)
Acquisition of subsidiaries	6,093
Actuarial losses/(gains)– arising from changes in demographic assumptions	(426)	(7)
Actuarial losses/(gains)– arising from changes in financial assumptions	101	912
Experience gains	(17)	(62)
Present value ending balance	13,025	7,630
Pension Schemes
Disclosure Of Defined Benefit Plans [Line Items]
Present value beginning balance	7,510	6,220
Differences on exchange	(199)	574
Current service costs	105	88
Past service cost/(credit)	4	(44)
Settlements	7	(33)
Interest on scheme liabilities	292	238
Contributions by scheme members	3	4
Benefits paid	(523)	(381)
Acquisition of subsidiaries	5,211
Actuarial losses/(gains)– arising from changes in demographic assumptions	(418)	(7)
Actuarial losses/(gains)– arising from changes in financial assumptions	92	911
Experience gains	(7)	(61)
Present value ending balance	12,077	7,510
Healthcare Schemes
Disclosure Of Defined Benefit Plans [Line Items]
Present value beginning balance	120	100
Differences on exchange	(35)	22
Current service costs	2	1
Settlements		(1)
Interest on scheme liabilities	19	6
Benefits paid	(31)	(8)
Acquisition of subsidiaries	882
Actuarial losses/(gains)– arising from changes in demographic assumptions	(8)
Actuarial losses/(gains)– arising from changes in financial assumptions	9	1
Experience gains	(10)	(1)
Present value ending balance	£ 948	£ 120

Retirement Benefit Schemes -120

Retirement Benefit Schemes - Schedule of Scheme Liabilities by Scheme Membership (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Defined Benefit Plans [Line Items]
Present value	£ 13,025	£ 7,630
Active Members
Disclosure Of Defined Benefit Plans [Line Items]
Present value	1,997	1,380
Deferred Members
Disclosure Of Defined Benefit Plans [Line Items]
Present value	1,397	1,308
Retired Members
Disclosure Of Defined Benefit Plans [Line Items]
Present value	9,631	4,942
Pension Schemes
Disclosure Of Defined Benefit Plans [Line Items]
Present value	12,077	7,510
Pension Schemes | Active Members
Disclosure Of Defined Benefit Plans [Line Items]
Present value	1,928	1,358
Pension Schemes | Deferred Members
Disclosure Of Defined Benefit Plans [Line Items]
Present value	1,394	1,306
Pension Schemes | Retired Members
Disclosure Of Defined Benefit Plans [Line Items]
Present value	8,755	4,846
Healthcare Schemes
Disclosure Of Defined Benefit Plans [Line Items]
Present value	948	120
Healthcare Schemes | Active Members
Disclosure Of Defined Benefit Plans [Line Items]
Present value	69	22
Healthcare Schemes | Deferred Members
Disclosure Of Defined Benefit Plans [Line Items]
Present value	3	2
Healthcare Schemes | Retired Members
Disclosure Of Defined Benefit Plans [Line Items]
Present value	£ 876	£ 96

Retirement Benefit Schemes - Su

Retirement Benefit Schemes - Summary of Movements in Funded Scheme Assets (Details) - Plan assets [member] - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Fair value of scheme assets at 1 January	£ 7,278	£ 6,086
Differences on exchange	(177)	546
Settlements	(1)	(33)
Interest on scheme assets	281	239
Company contributions	254	181
Contributions by scheme members	4	5
Benefits paid	(534)	(361)
Acquisition of subsidiaries	4,754
Actuarial gains/(losses)	491	615
Fair value of scheme assets at 31 December	12,350	7,278
Assets	12,350	7,278
Listed
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Equities	2,450	1,702
Bonds	5,286	3,952
Other assets	691	403
Unlisted
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Equities	1,408	630
Bonds	1,430	109
Other assets	1,085	482
Pension Schemes
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Fair value of scheme assets at 1 January	7,264	6,076
Differences on exchange	(170)	541
Settlements	(1)	(33)
Interest on scheme assets	277	238
Company contributions	232	181
Contributions by scheme members	4	5
Benefits paid	(509)	(360)
Acquisition of subsidiaries	4,574
Actuarial gains/(losses)	486	616
Fair value of scheme assets at 31 December	12,157	7,264
Assets	12,157	7,264
Pension Schemes | Listed
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Equities	2,444	1,697
Bonds	5,272	3,948
Other assets	682	403
Pension Schemes | Unlisted
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Equities	1,337	630
Bonds	1,346	109
Other assets	1,076	477
Healthcare Schemes
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Fair value of scheme assets at 1 January	14	10
Differences on exchange	(7)	5
Interest on scheme assets	4	1
Company contributions	22
Benefits paid	(25)	(1)
Acquisition of subsidiaries	180
Actuarial gains/(losses)	5	(1)
Fair value of scheme assets at 31 December	193	14
Assets	193	14
Healthcare Schemes | Listed
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Equities	6	5
Bonds	14	4
Other assets	9
Healthcare Schemes | Unlisted
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Equities	71
Bonds	84
Other assets	£ 9	£ 5

Retirement Benefit Schemes -122

Retirement Benefit Schemes - Summary of Movements in the Unrecognised Scheme Surpluses Recognised in Other Comprehensive Income (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Unrecognised funded scheme surpluses, beginning balance	£ (18)	£ (11)	£ (13)
Differences on exchange	3	(4)	3
Interest on unrecognised funded scheme surpluses	(2)	(2)	(1)
Movement in year	(6)	(1)
Unrecognised funded scheme surpluses, ending balance	(23)	(18)	(11)
Pension Schemes
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Unrecognised funded scheme surpluses, beginning balance	(18)	(11)	(13)
Differences on exchange	3	(4)	3
Interest on unrecognised funded scheme surpluses	(2)	(2)	(1)
Movement in year	(6)	(1)
Unrecognised funded scheme surpluses, ending balance	£ (23)	£ (18)	£ (11)

Retirement Benefit Schemes -123

Retirement Benefit Schemes - Summary of Actuarial Assumptions Rate for Valuations Plans (Details) - GBP (£)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
USA
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Rate of increase in salaries (%)	3.90%	0.00%
Rate of increase in pensions in payment (%)	2.50%	0.00%
Rate of increase in deferred pensions (%)	0.00%	0.00%
Discount rate (%)	3.70%	0.00%
General inflation (%)	2.50%	0.00%
Weighted average duration of liabilities (years)	11.3
United Kingdom
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Rate of increase in salaries (%)	3.20%	3.30%
Rate of increase in pensions in payment (%)	3.20%	3.30%
Rate of increase in deferred pensions (%)	2.20%	2.50%
Discount rate (%)	2.50%	2.60%
General inflation (%)	3.20%	3.30%
Weighted average duration of liabilities (years)	16.9	18.2
Germany
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Rate of increase in salaries (%)	2.50%	2.50%
Rate of increase in pensions in payment (%)	1.80%	1.80%
Rate of increase in deferred pensions (%)	1.80%	0.00%
Discount rate (%)	1.90%	1.70%
General inflation (%)	1.80%	1.80%
Weighted average duration of liabilities (years)	13.7	14
Canada
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Rate of increase in salaries (%)	3.00%	3.00%
Rate of increase in pensions in payment (%)	0.00%	0.00%
Rate of increase in deferred pensions (%)	0.00%	0.00%
Discount rate (%)	3.30%	3.70%
General inflation (%)	2.00%	2.00%
Weighted average duration of liabilities (years)	11	11.2
Netherlands
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Rate of increase in salaries (%)	2.00%	2.00%
Rate of increase in pensions in payment (%)	1.20%	1.10%
Rate of increase in deferred pensions (%)	1.20%	1.10%
Discount rate (%)	2.00%	1.90%
General inflation (%)	2.00%	2.00%
Weighted average duration of liabilities (years)	17.8	18.3
Switzerland
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
Rate of increase in salaries (%)	1.30%	1.30%
Rate of increase in pensions in payment (%)	0.00%	0.00%
Rate of increase in deferred pensions (%)	0.00%	0.00%
Discount rate (%)	0.60%	0.60%
General inflation (%)	1.00%	1.00%
Weighted average duration of liabilities (years)	13.5	13.4

Retirement Benefit Schemes -124

Retirement Benefit Schemes - Summary of Principal Schemes Used (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
US
Disclosure Of Actuarial Assumptions Used [Line Items]
Mortality assumptions	RP-2017 mortality tables without collar or amounts adjusted projected with MP-2017 generational projection	Not applicable
United Kingdom
Disclosure Of Actuarial Assumptions Used [Line Items]
Mortality assumptions	S2PA (YOB) with the CMI (2016) improvement model with a 1.25% long term improvement rate	91.5% S1NA (year of birth) table with the Continuous Mortality Investigation (2013) model with a 1.75% long-term improvement rate
Germany
Disclosure Of Actuarial Assumptions Used [Line Items]
Mortality assumptions	Heubeck tables 2005G	Heubeck tables 2005G
Canada
Disclosure Of Actuarial Assumptions Used [Line Items]
Mortality assumptions	CPM-2014 Private Table	CPM-2014 Private Table
Netherlands
Disclosure Of Actuarial Assumptions Used [Line Items]
Mortality assumptions	AG Prognosetafel 2016	AG Prognosetafel 2016
Switzerland
Disclosure Of Actuarial Assumptions Used [Line Items]
Mortality assumptions	LPP/BVG 2015 base table with CMI projection factors for mortality improvements with a 1.5% long-term improvement rate	LPP/BVG 2015 Generational

Retirement Benefit Schemes -125

Retirement Benefit Schemes - Summary of Weighted Average Life Expectancy Used to Determine Benefit Obligations (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
US
Disclosure Of Life Expectancy [Line Items]
Member age 65 (current life expectancy), Male	20 years 8 months 12 days
Member age 65 (current life expectancy), Female	22 years 8 months 12 days
Member age 45 (life expectancy at age 65), Male	22 years 3 months 19 days
Member age 45 (life expectancy at age 65), Female	24 years 2 months 12 days
United Kingdom
Disclosure Of Life Expectancy [Line Items]
Member age 65 (current life expectancy), Male	22 years 8 months 12 days	23 years 9 months 18 days
Member age 65 (current life expectancy), Female	24 years 2 months 12 days	26 years 4 months 24 days
Member age 45 (life expectancy at age 65), Male	24 years 3 months 19 days	26 years 6 months
Member age 45 (life expectancy at age 65), Female	25 years 6 months	29 years 2 months 12 days
Germany
Disclosure Of Life Expectancy [Line Items]
Member age 65 (current life expectancy), Male	19 years 3 months 19 days	19 years 1 month 6 days
Member age 65 (current life expectancy), Female	23 years 3 months 19 days	23 years 2 months 12 days
Member age 45 (life expectancy at age 65), Male	21 years 10 months 25 days	21 years 9 months 18 days
Member age 45 (life expectancy at age 65), Female	25 years 9 months 18 days	25 years 8 months 12 days
Canada
Disclosure Of Life Expectancy [Line Items]
Member age 65 (current life expectancy), Male	21 years 4 months 24 days	21 years 3 months 19 days
Member age 65 (current life expectancy), Female	23 years 9 months 18 days	23 years 8 months 12 days
Member age 45 (life expectancy at age 65), Male	22 years 6 months	22 years 4 months 24 days
Member age 45 (life expectancy at age 65), Female	24 years 9 months 18 days	24 years 8 months 12 days
Netherlands
Disclosure Of Life Expectancy [Line Items]
Member age 65 (current life expectancy), Male	20 years 9 months 18 days	20 years 7 months 6 days
Member age 65 (current life expectancy), Female	24 years 9 months 18 days	24 years 8 months 12 days
Member age 45 (life expectancy at age 65), Male	23 years 3 months 19 days	23 years 1 month 6 days
Member age 45 (life expectancy at age 65), Female	27 years	26 years 10 months 25 days
Switzerland
Disclosure Of Life Expectancy [Line Items]
Member age 65 (current life expectancy), Male	21 years 8 months 12 days	22 years 3 months 19 days
Member age 65 (current life expectancy), Female	23 years 8 months 12 days	24 years 4 months 24 days
Member age 45 (life expectancy at age 65), Male	23 years 6 months	24 years 2 months 12 days
Member age 45 (life expectancy at age 65), Female	25 years 6 months	26 years 3 months 19 days

Retirement Benefit Schemes -126

Retirement Benefit Schemes - Summary of Sensitivity Analysis (Details) £ in Millions	Dec. 31, 2017GBP (£)
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
1 year increase	£ 373
1 year decrease	(373)
Rate of Inflation – Increase/(Decrease) of Scheme Liabilities
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
0.25 percentage point increase	191
0.25 percentage point decrease	(179)
Discount Rate – (Decrease)/Increase of Scheme Liabilities
Disclosure Of Sensitivity Analysis For Actuarial Assumptions [Line Items]
0.25 percentage point increase	(363)
0.25 percentage point decrease	£ 384

Deferred Tax - Summary of Recon

Deferred Tax - Summary of Reconciliation of Net Deferred Tax Assets/(Liabilities) (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
At 1 January	£ (216)	£ (237)
Differences on exchange	852	(39)
Subsidiaries acquired	(27,071)	(6)
(Charged)/credited to the income statement	136	(4)	£ 11
– deferred tax relating to changes in tax rates	(9,620)		15
(Charged)/credited to other comprehensive income	(133)	70	(9)
At 31 December	(16,812)	(216)	(237)
Stock relief
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
At 1 January	31	30
Differences on exchange	2	6
Subsidiaries acquired	(375)
(Charged)/credited to the income statement	180	(5)
– deferred tax relating to changes in tax rates	71
At 31 December	(91)	31	30
Excess of capital allowances over depreciation
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
At 1 January	(58)	(132)
Differences on exchange	15	(18)
Subsidiaries acquired	(234)	(6)
(Charged)/credited to the income statement	19	98
– deferred tax relating to changes in tax rates	84
At 31 December	(174)	(58)	(132)
Tax losses
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
At 1 January	89	53
Differences on exchange	(6)	13
(Charged)/credited to the income statement	30	23
At 31 December	113	89	53
Undistributed earnings of associates and subsidiaries
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
At 1 January	(392)	(255)
Differences on exchange	13	(41)
(Charged)/credited to the income statement	138	(96)
At 31 December	(241)	(392)	(255)
Retirement benefits
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
At 1 January	117	48
Differences on exchange	(12)	4
Subsidiaries acquired	514
(Charged)/credited to the income statement	10	1
– deferred tax relating to changes in tax rates	(194)
(Charged)/credited to other comprehensive income	(171)	64
At 31 December	264	117	48
Trademarks
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
At 1 January	(95)	(108)
Differences on exchange	862	(20)
Subsidiaries acquired	(28,091)
(Charged)/credited to the income statement	66	33
– deferred tax relating to changes in tax rates	9,935
At 31 December	(17,323)	(95)	(108)
Other temporary differences
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
At 1 January	92	127
Differences on exchange	(22)	17
Subsidiaries acquired	1,115
(Charged)/credited to the income statement	(307)	(58)
– deferred tax relating to changes in tax rates	(276)
(Charged)/credited to other comprehensive income	38	6
At 31 December	£ 640	£ 92	£ 127

Deferred Tax - Additional Infor

Deferred Tax - Additional Information (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
Income tax benefit		£ 9,620		£ (15)
Deferred tax assets		317	£ 436
Deferred tax liabilities		17,129	652
Undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised		700	700
Within 12 months
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
Deferred tax assets		244	119
Deferred tax liabilities		£ 369	£ 372
No expiry date
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
Expiry period for which no deferred tax asset recognised		no expiry date	no expiry date
Unused tax credits for which no deferred tax asset recognised		£ 80	£ 80
No expiry date | Unused tax losses
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
Expiry period for which no deferred tax asset recognised		no expiry date	no expiry date
Unused tax losses for which no deferred tax asset recognised		£ 301	£ 542
No expiry date | Deductible temporary differences
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
Expiry period for which no deferred tax asset recognised		no expiry date	no expiry date
Deductible temporary differences for which no deferred tax asset recognised		£ 0	£ 534
Within next 10 years | Unused tax losses
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
Expiry period for which no deferred tax asset recognised		within the next 10 years	within the next 10 years
Unused tax losses for which no deferred tax asset recognised		£ 616	£ 761
Within next 10 years | Deductible temporary differences
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
Expiry period for which no deferred tax asset recognised		within the next 10 years	within the next 10 years
Deductible temporary differences for which no deferred tax asset recognised		£ 140	£ 191
Scenario, Forecast
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
Effective income tax rate	21.00%
Reynolds American Inc.
Disclosure of Temporary Difference Unused Tax Losses and Unused Tax Credits
Name of acquiree		RAI
Date of acquisition		Jul. 25, 2017

Trade and Other Receivables - S

Trade and Other Receivables - Summary of Trade and Other Receivables (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Trade And Other Receivables [Abstract]
Trade receivables	£ 3,306	£ 2,696
Loans and other receivables	1,214	1,619
Prepayments and accrued income	289	168
Net trade and other receivables per balance sheet	4,809	4,483
Trade and other receivables, Current	4,053	3,884
Trade and other receivables, Non-current	£ 756	£ 599

Trade and Other Receivables - A

Trade and Other Receivables - Additional Information (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Trade And Other Receivables [Line Items]
Legal deposits	£ 603
Recoverable payments under Quebec Class Action	449	£ 326
Recoverable payments under Quebec Class Action, discount effect	21	20
Trade and other receivables	£ 4,809	£ 4,483
US Dollar
Disclosure Of Trade And Other Receivables [Line Items]
Percentage of trade and other receivables denominated in other currencies	1.40%	3.80%
UK sterling
Disclosure Of Trade And Other Receivables [Line Items]
Percentage of trade and other receivables denominated in other currencies	4.30%	5.40%
Euro
Disclosure Of Trade And Other Receivables [Line Items]
Percentage of trade and other receivables denominated in other currencies	1.50%	2.80%
Other Currencies
Disclosure Of Trade And Other Receivables [Line Items]
Percentage of trade and other receivables denominated in other currencies	9.60%	3.80%
Financial Assets Past Due But Not Impaired
Disclosure Of Trade And Other Receivables [Line Items]
Trade and other receivables	£ 189	£ 60

Trade and Other Receivables 131

Trade and Other Receivables - Summary of Trade and Other Receivables Reported in Balance Sheet Net of Allowances (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Trade And Other Receivables [Line Items]
Net trade and other receivables per balance sheet	£ 4,809	£ 4,483
Carrying Value
Disclosure Of Trade And Other Receivables [Line Items]
Net trade and other receivables per balance sheet	4,894	4,570
Allowance Account
Disclosure Of Trade And Other Receivables [Line Items]
Net trade and other receivables per balance sheet	£ (85)	£ (87)

Trade and Other Receivables 132

Trade and Other Receivables - Summary of Movements in Allowance Account (Details) - Trade And Other Receivables - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Trade And Other Receivables [Line Items]
1 January	£ 87	£ 51
Differences on exchange	4	11
Provided in the year	16	26
Amounts reversed during the year	(22)	(1)
31 December	£ 85	£ 87

Trade and Other Receivables 133

Trade and Other Receivables - Summary of Aged Analysis of Trade Receivables (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Trade And Other Receivables [Line Items]
Trade and other receivables	£ 4,809	£ 4,483
Financial Assets Past Due But Not Impaired
Disclosure Of Trade And Other Receivables [Line Items]
Trade and other receivables	189	60
Less Than Three Months | Financial Assets Past Due But Not Impaired
Disclosure Of Trade And Other Receivables [Line Items]
Trade and other receivables	147	39
Between Three and Six Months | Financial Assets Past Due But Not Impaired
Disclosure Of Trade And Other Receivables [Line Items]
Trade and other receivables	12	11
Between Six Months and One Year | Financial Assets Past Due But Not Impaired
Disclosure Of Trade And Other Receivables [Line Items]
Trade and other receivables	20	7
Greater Than One Year | Financial Assets Past Due But Not Impaired
Disclosure Of Trade And Other Receivables [Line Items]
Trade and other receivables	£ 10	£ 3

Available-for-sale Investmen134

Available-for-sale Investments - Schedule of Available-for-sale Investments (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Financial Assets [Line Items]
Available-for-sale investments	£ 58
Available-for-sale investments	107	£ 58
Available-for-sale investments, Current	65	15
Available-for-sale investments, Non-current	42	43
Financial Assets Available-for-sale
Disclosure Of Financial Assets [Line Items]
Available-for-sale investments	58	72
Differences on exchange		10
Additions	90	4
Revaluations	(27)
Disposals	(14)	(28)
Available-for-sale investments	£ 107	£ 58

Derivative Financial Instrum135

Derivative Financial Instruments - Summary of Derivatives (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	£ 818	£ 971
Liabilities	234	668
Derivative financial instruments	228	375
Derivative financial instruments	590	596
Derivative financial instruments	155	549
Derivative financial instruments	79	119
Assets, Derivatives – in respect of net debt	640	809
Assets, Derivatives – other	178	162
Liabilities, Derivatives – in respect of net debt	117	300
Liabilities, Derivatives – other	117	368
Interest Rate Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	166	252
Liabilities	91	104
Fair Value Hedges | Interest Rate Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	97	179
Liabilities	14	14
Fair Value Hedges | Cross-currency Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	263	261
Cash Flow Hedges
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	270	228
Liabilities	73	118
Cash Flow Hedges | Interest Rate Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	1	2
Cash Flow Hedges | Cross-currency Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	187	106
Cash Flow Hedges | Forward Foreign Currency Contracts
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	82	120
Liabilities	73	118
Net Investment Hedges | Forward Foreign Currency Contracts
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	85	23
Liabilities	39	233
Held-for-trading | Interest Rate Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	68	71
Liabilities	77	90
Held-for-trading | Cross-currency Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets		173
Liabilities		174
Held-for-trading | Forward Foreign Currency Contracts
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	35	36
Liabilities	£ 31	£ 39

Derivative Financial Instrum136

Derivative Financial Instruments - Additional Information (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	£ 818	£ 971
Liabilities	234	668
Cash Flow Hedges
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	270	228
Liabilities	73	118
Cash Flow Hedges | Within 12 months
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	73	99
Liabilities	69	105
Cash Flow Hedges | Beyond 5 Years
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets	£ 165	£ 106

Derivative Financial Instrum137

Derivative Financial Instruments - Summary of Maturity Dates of Gross-settled Derivative Financial Instruments (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	£ 13,885	£ 11,104
Assets Outflow	(13,580)	(10,762)
Liabilities Inflow	6,158	12,502
Liabilities Outflow	(6,289)	(13,020)
Within 12 months | Forward Foreign Currency Contracts
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	8,874	7,168
Assets Outflow	(8,702)	(6,943)
Liabilities Inflow	5,929	11,419
Liabilities Outflow	(6,059)	(12,024)
Within 12 months | Cross-currency Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	56	391
Assets Outflow	(97)	(534)
Liabilities Inflow		499
Liabilities Outflow		(354)
Between One and Two Years | Forward Foreign Currency Contracts
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	339	1,152
Assets Outflow	(328)	(1,104)
Liabilities Inflow	229	571
Liabilities Outflow	(230)	(630)
Between One and Two Years | Cross-currency Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	89	37
Assets Outflow	(135)	(36)
Between Two and Three Years | Forward Foreign Currency Contracts
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow		24
Assets Outflow		(22)
Liabilities Inflow		13
Liabilities Outflow		(12)
Between Two and Three Years | Cross-currency Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	60	66
Assets Outflow	(108)	(69)
Between Three and Four Years | Cross-currency Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	1,812	35
Assets Outflow	(1,782)	(40)
Between Four and Five Years | Cross-currency Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	32	802
Assets Outflow	(62)	(770)
Beyond Five Years | Cross-currency Swaps
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	2,623	1,429
Assets Outflow	£ (2,366)	£ (1,244)

Derivative Financial Instrum138

Derivative Financial Instruments - Summary of Maturity Dates of Net-settled Derivative Financial Instruments (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	£ 172	£ 349
Liabilities Outflow	93	104
Interest Rate Swaps | Within 12 months
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	44	102
Liabilities Outflow	18	29
Interest Rate Swaps | Between One and Two Years
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	34	71
Liabilities Outflow	5	15
Interest Rate Swaps | Between Two and Three Years
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	28	64
Liabilities Outflow	6	14
Interest Rate Swaps | Between Three and Four Years
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	26	46
Liabilities Outflow	6	13
Interest Rate Swaps | Between Four and Five Years
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	12	26
Liabilities Outflow	7	11
Interest Rate Swaps | Beyond Five Years
Disclosure Of Financial Assets And Liabilities [Line Items]
Assets Inflow	28	40
Liabilities Outflow	£ 51	£ 22

Inventories - Summary of Invent

Inventories - Summary of Inventories (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Classes Of Inventories [Abstract]
Raw materials and consumables	£ 3,027	£ 2,230
Finished goods and work in progress	2,692	3,312
Goods purchased for resale	145	251
Inventories	£ 5,864	£ 5,793

Inventories - Additional Inform

Inventories - Additional Information (Details) - GBP (£)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Classes Of Inventories [Abstract]
Inventories pledged as security for liabilities	£ 7,000,000	£ 0
Inventory write-offs	£ 114,000,000	£ 127,000,000	£ 73,000,000

Cash and Cash Equivalents - Sch

Cash and Cash Equivalents - Schedule Representing Cash and Cash Equivalents (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Cash And Cash Equivalents [Abstract]
Cash and bank balances	£ 1,967	£ 1,628
Cash equivalents	1,324	576
Cash and cash equivalents	£ 3,291	£ 2,204

Cash and Cash Equivalents - Sum

Cash and Cash Equivalents - Summary of Cash and Cash Equivalents Denominated in the Functional Currency of the Subsidiary Undertaking or Other Currencies (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Cash And Cash Equivalent [Line Items]
Cash and cash equivalents	£ 3,291	£ 2,204
Functional Currency
Cash And Cash Equivalent [Line Items]
Cash and cash equivalents	2,842	1,748
US Dollar
Cash And Cash Equivalent [Line Items]
Cash and cash equivalents	161	195
Euro
Cash And Cash Equivalent [Line Items]
Cash and cash equivalents	159	159
Other Currency
Cash And Cash Equivalent [Line Items]
Cash and cash equivalents	£ 129	£ 102

Cash and Cash Equivalents - 143

Cash and Cash Equivalents - Summary of Net Cash and Cash Equivalents Shown After Deducting Bank Overdrafts and Accrued Interest (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash And Cash Equivalents [Abstract]
Cash and cash equivalents	£ 3,291	£ 2,204
Less overdrafts and accrued interest	(469)	(553)
Net cash and cash equivalents	£ 2,822	£ 1,651	£ 1,730	£ 1,492

Cash and Cash Equivalents - Add

Cash and Cash Equivalents - Additional Information (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Cash And Cash Equivalents [Abstract]
Restricted cash and cash equivalents	£ 160	£ 157

Capital and Reserves - Reconcil

Capital and Reserves - Reconciliation of Movement in Total Equity - Summary of Capital and Reserves - Reconciliation of Movement in Total Equity (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Beginning balance	£ 8,406	£ 5,032	£ 5,814
Comprehensive income and expense
Profit for the year	37,704	4,839	4,522
Differences on exchange
Differences on exchange	(4,010)	2,695	(670)
Cash flow hedges
– net fair value (losses)/gains	(264)	29	(99)
– reclassified and reported in profit for the year	109	38	15
– reclassified and reported in net assets	(16)	(12)	(45)
Available-for-sale investments
– reclassified and reported in profit for the year			(10)
Net investment hedges
– net fair value gains/(losses)	425	(837)	(118)
– differences on exchange on borrowings	(68)	(124)	42
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss	34	(19)	21
Retirement benefit schemes
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss	(171)	36	(23)
Employee share options
– value of employee services	105	71	50
– proceeds from shares issued	5	4	4
Dividends and other appropriations
– ordinary shares	(4,465)	(2,910)	(2,770)
– to non-controlling interests	(169)	(156)	(238)
Purchase of own shares
– held in employee share ownership trusts	(205)	(64)	(46)
Shares issued – RAI acquisition	22,773
Other movements	3	3	31
Non-controlling interests - acquisitions			(1,749)
Ending balance	61,026	8,406	5,032
Subsidiaries
Differences on exchange
Differences on exchange	(3,087)	1,270	(1,006)
Available-for-sale investments
– net fair value (losses)/gains in respect of subsidiaries	(27)		14
Retirement benefit schemes
– net actuarial gains/(losses) in respect of subsidiaries	833	(228)	283
– surplus recognition and minimum funding obligations in respect of subsidiaries	(6)	(1)
Associates
Differences on exchange
Differences on exchange	(923)	1,425	336
Available-for-sale investments
– net fair value gains/(losses) in respect of associates net of tax	5	(10)	1
Retirement benefit schemes
– actuarial gains in respect of associates net of tax	25	20	3
Share Capital
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Beginning balance	507	507	507
Purchase of own shares
Shares issued – RAI acquisition	107
Ending balance	614	507	507
Share Premium, Capital Redemption and Merger Reserves
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Beginning balance	3,931	3,927	3,923
Employee share options
– proceeds from shares issued	5	4	4
Purchase of own shares
Shares issued – RAI acquisition	22,666
Ending balance	26,602	3,931	3,927
Other Reserves
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Beginning balance	413	(1,294)	(498)
Cash flow hedges
– net fair value (losses)/gains	(263)	28	(98)
– reclassified and reported in profit for the year	109	38	14
– reclassified and reported in net assets	(16)	(12)	(45)
Available-for-sale investments
– reclassified and reported in profit for the year			(10)
Net investment hedges
– net fair value gains/(losses)	425	(837)	(118)
– differences on exchange on borrowings	(67)	(124)	42
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss	34	(19)	21
Purchase of own shares
Ending balance	(3,395)	413	(1,294)
Other Reserves | Subsidiaries
Differences on exchange
Differences on exchange	(3,085)	1,218	(953)
Available-for-sale investments
– net fair value (losses)/gains in respect of subsidiaries	(27)		14
Other Reserves | Associates
Differences on exchange
Differences on exchange	(923)	1,425	336
Available-for-sale investments
– net fair value gains/(losses) in respect of associates net of tax	5	(10)	1
Retained Earnings
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Beginning balance	3,331	1,754	1,578
Comprehensive income and expense
Profit for the year	37,533	4,648	4,290
Retirement benefit schemes
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss	(171)	36	(23)
Employee share options
– value of employee services	105	71	50
Dividends and other appropriations
– ordinary shares	(4,465)	(2,910)	(2,770)
Purchase of own shares
– held in employee share ownership trusts	(205)	(64)	(46)
Other movements	3	3	31
Non-controlling interests - acquisitions		4	(1,642)
Ending balance	36,983	3,331	1,754
Retained Earnings | Subsidiaries
Retirement benefit schemes
– net actuarial gains/(losses) in respect of subsidiaries	832	(231)	283
– surplus recognition and minimum funding obligations in respect of subsidiaries	(5)
Retained Earnings | Associates
Retirement benefit schemes
– actuarial gains in respect of associates net of tax	25	20	3
Total Attributable to Owners of Parent
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Beginning balance	8,182	4,894	5,510
Comprehensive income and expense
Profit for the year	37,533	4,648	4,290
Cash flow hedges
– net fair value (losses)/gains	(263)	28	(98)
– reclassified and reported in profit for the year	109	38	14
– reclassified and reported in net assets	(16)	(12)	(45)
Available-for-sale investments
– reclassified and reported in profit for the year			(10)
Net investment hedges
– net fair value gains/(losses)	425	(837)	(118)
– differences on exchange on borrowings	(67)	(124)	42
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss	34	(19)	21
Retirement benefit schemes
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss	(171)	36	(23)
Employee share options
– value of employee services	105	71	50
– proceeds from shares issued	5	4	4
Dividends and other appropriations
– ordinary shares	(4,465)	(2,910)	(2,770)
Purchase of own shares
– held in employee share ownership trusts	(205)	(64)	(46)
Shares issued – RAI acquisition	22,773
Other movements	3	3	31
Non-controlling interests - acquisitions		4	(1,642)
Ending balance	60,804	8,182	4,894
Total Attributable to Owners of Parent | Subsidiaries
Differences on exchange
Differences on exchange	(3,085)	1,218	(953)
Available-for-sale investments
– net fair value (losses)/gains in respect of subsidiaries	(27)		14
Retirement benefit schemes
– net actuarial gains/(losses) in respect of subsidiaries	832	(231)	283
– surplus recognition and minimum funding obligations in respect of subsidiaries	(5)
Total Attributable to Owners of Parent | Associates
Differences on exchange
Differences on exchange	(923)	1,425	336
Available-for-sale investments
– net fair value gains/(losses) in respect of associates net of tax	5	(10)	1
Retirement benefit schemes
– actuarial gains in respect of associates net of tax	25	20	3
Non- Controlling Interests
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Beginning balance	224	138	304
Comprehensive income and expense
Profit for the year	171	191	232
Cash flow hedges
– net fair value (losses)/gains	(1)	1	(1)
– reclassified and reported in profit for the year			1
Net investment hedges
– differences on exchange on borrowings	(1)
Dividends and other appropriations
– to non-controlling interests	(169)	(156)	(238)
Purchase of own shares
Non-controlling interests - acquisitions		(4)	(107)
Ending balance	222	224	138
Non- Controlling Interests | Subsidiaries
Differences on exchange
Differences on exchange	(2)	52	£ (53)
Retirement benefit schemes
– net actuarial gains/(losses) in respect of subsidiaries	1	3
– surplus recognition and minimum funding obligations in respect of subsidiaries	£ (1)	£ (1)

Capital and Reserves - Recon146

Capital and Reserves - Reconciliation of Movement in Total Equity - Summary of Composition of Share Premium Account, Capital Redemption Reserves and Merger Reserves (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Equity	£ 61,026	£ 8,406	£ 5,032	£ 5,814
Share Premium Account
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Equity	87	82	78	74
Capital Redemption Reserve
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Equity	101	101	101	101
Merger Reserves
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Equity	26,414	3,748	3,748	3,748
Share Premium, Capital Redemption and Merger Reserves
Disclosure Of Capital And Reserve Reconciliation Of Movement In Equity [Line Items]
Equity	£ 26,602	£ 3,931	£ 3,927	£ 3,923

Capital and Reserves - Recon147

Capital and Reserves - Reconciliation of Movement in Total Equity - Additional Information (Details) - GBP (£)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jul. 25, 2017	Dec. 31, 1999
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items]
Shares issued under share option schemes	£ 105,000,000	£ 71,000,000	£ 50,000,000
Equity	61,026,000,000	8,406,000,000	5,032,000,000	£ 5,814,000,000
Cost of treasury shares repurchased	4,845,000,000	4,845,000,000	4,845,000,000
Cost of own shares held in employee share ownership trusts	£ 350,000,000	£ 208,000,000	£ 204,000,000
Shares bought back				23,000,000
Shares bought back at cost				£ 795,000,000
Shares bought back transaction costs				5,000,000
Treasury shares held in trust	6,750,597	5,137,602	5,356,084
Treasury shares repurchased	162,645,590	162,645,590	162,645,590
Gain (loss) reported in operating income	£ 144,000,000	£ 176,000,000	£ 225,000,000
Net finance (costs)/income	(1,094,000,000)	(637,000,000)	62,000,000
Differences on exchange	(4,010,000,000)	2,695,000,000	(670,000,000)
Debit on exchange	(545,000,000)
Other reserves	(3,395,000,000)	413,000,000
B A T Industries Plc
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items]
Other reserves	483,000,000
Associates
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items]
Differences on exchange	(923,000,000)	1,425,000,000	336,000,000
Reynolds American Inc.
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items]
Ownership interest acquired					57.80%
Merger Reserves
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items]
Equity	26,414,000,000	3,748,000,000	3,748,000,000	£ 3,748,000,000
Merger Reserves | Reynolds American Inc.
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items]
Equity					£ 22,666,000,000
Merger Reserves | Rothmans International B.V. Group
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items]
Equity						£ 3,748,000,000
Hedging Reserve
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items]
Gain (loss) reported in revenue	52,000,000	(142,000,000)	(50,000,000)
Gain (loss) reported in raw materials and consumables	(27,000,000)	(2,000,000)	22,000,000
Gain (loss) reported in operating expenses	4,000,000	(6,000,000)	(8,000,000)
Gain (loss) reported in operating income		9,000,000	0
Net finance (costs)/income	80,000,000	93,000,000	18,000,000
Ordinary Shares
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items]
Shares issued under share option schemes	5,000,000	£ 4,000,000	£ 4,000,000
Convertible Redeemable Preference Shares | Rothmans
Disclosure Of Share Capital Reserves And Other Equity Interest [Line Items]
Other reserves	£ 90,000,000

Capital and Reserves - Recon148

Capital and Reserves - Reconciliation of Movement in Total Equity - Summary of Movements of Called Up Share Capital (Details) - Ordinary Shares	12 Months Ended
	Dec. 31, 2017GBP (£)shares	Dec. 31, 2016GBP (£)shares	Dec. 31, 2015GBP (£)shares
Disclosure Of Classes Of Share Capital [Line Items]
Allotted and fully paid beginning balance | shares	2,027,019,508	2,026,866,724	2,026,693,029
Changes during the year– share option schemes | shares	213,144	152,784	173,695
Changes during the year– Issue of shares RAI acquisition | shares	429,045,762
Allotted and fully paid ending balance | shares	2,456,278,414	2,027,019,508	2,026,866,724
Allotted and fully paid beginning balance | £	£ 506,750,000	£ 506,710,000	£ 506,670,000
Changes during the year– share option schemes | £	50,000	40,000	40,000
– Issue of shares RAI acquisition | £	107,260,000
Allotted and fully paid ending balance | £	£ 614,060,000	£ 506,750,000	£ 506,710,000

Capital and Reserves - Recon149

Capital and Reserves - Reconciliation of Movement in Total Equity - Summary of Movements of Called Up Share Capital (Parenthetical) (Details) - £ / shares	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Ordinary Shares
Disclosure Of Classes Of Share Capital [Line Items]
Value per share	£ 0.25	£ 0.25	£ 0.25

Capital and Reserves - Recon150

Capital and Reserves - Reconciliation of Movement in Total Equity - Summary of Movements in Other Reserves and Retained Earnings (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Reserves Within Equity [Line Items]
Beginning balance	£ 8,406	£ 5,032	£ 5,814
Comprehensive income and expense
Profit for the year	37,704	4,839	4,522
Differences on exchange
Differences on exchange	(4,010)	2,695	(670)
Cash flow hedges
– net fair value (losses)/gains	(264)	29	(99)
– reclassified and reported in profit for the year	109	38	15
– reclassified and reported in net assets	(16)	(12)	(45)
Available-for-sale investments
– reclassified and reported in profit for the year			(10)
Net investment hedges
– net fair value gains/(losses)	425	(837)	(118)
– differences on exchange on borrowings	(68)	(124)	42
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss	34	(19)	21
Retirement benefit schemes
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss	(171)	36	(23)
Employee share options
– value of employee services	105	71	50
– ordinary shares	(4,465)	(2,910)	(2,770)
– held in employee share ownership trusts	(205)	(64)	(46)
Dividends and other appropriations
– ordinary shares	(4,465)	(2,910)	(2,770)
Purchase of own shares
– held in employee share ownership trusts	(205)	(64)	(46)
Non-controlling interests - acquisitions			(1,749)
Other movements	3	3	31
Ending balance	61,026	8,406	5,032
Subsidiaries
Differences on exchange
Differences on exchange	(3,087)	1,270	(1,006)
Available-for-sale investments
– net fair value (losses)/gains in respect of subsidiaries	(27)		14
Retirement benefit schemes
– net actuarial gains/(losses) in respect of subsidiaries	833	(228)	283
– surplus recognition and minimum funding obligations in respect of subsidiaries	(6)	(1)
Associates
Differences on exchange
Differences on exchange	(923)	1,425	336
Available-for-sale investments
– net fair value gains/(losses) in respect of associates net of tax	5	(10)	1
Retirement benefit schemes
– actuarial gains in respect of associates net of tax	25	20	3
Translation Reserve
Disclosure Of Reserves Within Equity [Line Items]
Beginning balance	(382)	(2,062)	(1,369)
Net investment hedges
– net fair value gains/(losses)	425	(837)	(118)
– differences on exchange on borrowings	(67)	(124)	42
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss		(2)
Purchase of own shares
Ending balance	(4,032)	(382)	(2,062)
Translation Reserve | Subsidiaries
Differences on exchange
Differences on exchange	(3,085)	1,218	(953)
Translation Reserve | Associates
Differences on exchange
Differences on exchange	(923)	1,425	336
Hedging Reserve
Disclosure Of Reserves Within Equity [Line Items]
Beginning balance	4	(33)	75
Cash flow hedges
– net fair value (losses)/gains	(263)	28	(98)
– reclassified and reported in profit for the year	109	38	14
– reclassified and reported in net assets	(16)	(12)	(45)
Net investment hedges
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss	34	(17)	21
Purchase of own shares
Ending balance	(132)	4	(33)
Available for Sale Reserve
Disclosure Of Reserves Within Equity [Line Items]
Beginning balance	39	49	44
Available-for-sale investments
– reclassified and reported in profit for the year			(10)
Purchase of own shares
Ending balance	17	39	49
Available for Sale Reserve | Subsidiaries
Available-for-sale investments
– net fair value (losses)/gains in respect of subsidiaries	(27)		14
Available for Sale Reserve | Associates
Available-for-sale investments
– net fair value gains/(losses) in respect of associates net of tax	5	(10)	1
Revaluation Reserve
Disclosure Of Reserves Within Equity [Line Items]
Beginning balance	179	179	179
Purchase of own shares
Ending balance	179	179	179
Other
Disclosure Of Reserves Within Equity [Line Items]
Beginning balance	573	573	573
Purchase of own shares
Ending balance	573	573	573
Other Reserves
Disclosure Of Reserves Within Equity [Line Items]
Beginning balance	413	(1,294)	(498)
Cash flow hedges
– net fair value (losses)/gains	(263)	28	(98)
– reclassified and reported in profit for the year	109	38	14
– reclassified and reported in net assets	(16)	(12)	(45)
Available-for-sale investments
– reclassified and reported in profit for the year			(10)
Net investment hedges
– net fair value gains/(losses)	425	(837)	(118)
– differences on exchange on borrowings	(67)	(124)	42
Tax on items recognised directly in other comprehensive income that may be reclassified subsequently to profit or loss	34	(19)	21
Purchase of own shares
Ending balance	(3,395)	413	(1,294)
Other Reserves | Subsidiaries
Differences on exchange
Differences on exchange	(3,085)	1,218	(953)
Available-for-sale investments
– net fair value (losses)/gains in respect of subsidiaries	(27)		14
Other Reserves | Associates
Differences on exchange
Differences on exchange	(923)	1,425	336
Available-for-sale investments
– net fair value gains/(losses) in respect of associates net of tax	5	(10)	1
Treasury Shares
Disclosure Of Reserves Within Equity [Line Items]
Beginning balance	(5,053)	(5,049)	(5,073)
Employee share options
– held in employee share ownership trusts	(205)	(64)	(46)
Purchase of own shares
– held in employee share ownership trusts	(205)	(64)	(46)
Other movements	63	60	70
Ending balance	(5,195)	(5,053)	(5,049)
Retained Earnings Other
Disclosure Of Reserves Within Equity [Line Items]
Beginning balance	8,384	6,803	6,651
Comprehensive income and expense
Profit for the year	37,533	4,648	4,290
Retirement benefit schemes
Tax on items recognised directly in other comprehensive income that will not be reclassified subsequently to profit or loss	(171)	36	(23)
Employee share options
– value of employee services	105	71	50
– ordinary shares	(4,465)	(2,910)	(2,770)
Dividends and other appropriations
– ordinary shares	(4,465)	(2,910)	(2,770)
Purchase of own shares
Non-controlling interests - acquisitions		4	(1,642)
Other movements	(60)	(57)	(39)
Ending balance	42,178	8,384	6,803
Retained Earnings Other | Subsidiaries
Retirement benefit schemes
– net actuarial gains/(losses) in respect of subsidiaries	832	(231)	283
– surplus recognition and minimum funding obligations in respect of subsidiaries	(5)
Retained Earnings Other | Associates
Retirement benefit schemes
– actuarial gains in respect of associates net of tax	£ 25	£ 20	£ 3

Capital and Reserves - Recon151

Capital and Reserves - Reconciliation of Movement in Total Equity - Summary of Tax Attributable to Components of Other Comprehensive Income (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items]
Total tax recognised in other comprehensive income for the year	£ (137)	£ 17	£ (2)
Translation Reserve | Net Investment Hedges
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items]
– net fair value gains/(losses)		(2)
Total tax recognised in other comprehensive income for the year		(2)
Hedging Reserve | Cash Flow Hedges
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items]
– net fair value gains/(losses)	34	(11)	38
– reclassified and reported in profit for the year		(6)	(17)
Total tax recognised in other comprehensive income for the year	34	(17)	21
Retained Earnings
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items]
– actuarial losses/(gains) in respect of subsidiaries	(171)	36	(23)
Total tax recognised in other comprehensive income for the year	(171)	36	(23)
Owners of the Parent
Disclosure Of Analysis Of Other Comprehensive Income By Item [Line Items]
Total tax recognised in other comprehensive income for the year	£ (137)	£ 17	£ (2)

Borrowings - Schedule of Detail

Borrowings - Schedule of Detailed Information About Borrowings (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Detailed Information About Borrowings [Line Items]
Bonds and notes	£ 42,781	£ 18,216
Commercial paper	1,200	254
Other loans	4,466	110
Bank loans	512	336
Bank overdrafts	469	553
Finance leases	22	26
Borrowings	£ 49,450	19,495
Eurobonds One
Disclosure Of Detailed Information About Borrowings [Line Items]
Currency	Euro
Bonds and notes	£ 8,585	7,704
Eurobonds One | Bottom of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,019
Borrowings, interest rate	0.40%
Eurobonds One | Top of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,045
Borrowings, interest rate	4.90%
Eurobonds Two
Disclosure Of Detailed Information About Borrowings [Line Items]
Currency	Euro
Borrowings, interest rate basis	3m EURIBOR +50bps
Bonds and notes	£ 1,326	341
Adjustment to interest rate basis	0.50%
Eurobonds Two | Bottom of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,018
Eurobonds Two | Top of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,021
Eurobonds Three
Disclosure Of Detailed Information About Borrowings [Line Items]
Currency	UK sterling
Bonds and notes	£ 4,680	4,241
Eurobonds Three | Bottom of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,019
Borrowings, interest rate	1.80%
Eurobonds Three | Top of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,055
Borrowings, interest rate	7.30%
Eurobonds Four
Disclosure Of Detailed Information About Borrowings [Line Items]
Currency	US dollar
Borrowings, maturity	2,019
Borrowings, interest rate	1.60%
Bonds and notes	£ 482	527
Eurobonds Five
Disclosure Of Detailed Information About Borrowings [Line Items]
Currency	Swiss franc
Bonds and notes	£ 498	526
Eurobonds Five | Bottom of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,021
Borrowings, interest rate	0.60%
Eurobonds Five | Top of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,026
Borrowings, interest rate	1.40%
Bonds Issued One
Disclosure Of Detailed Information About Borrowings [Line Items]
Currency	US dollar
Bonds and notes	£ 25,545	4,472
Bonds Issued One | Bottom of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,018
Borrowings, interest rate	1.90%
Bonds Issued One | Top of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,047
Borrowings, interest rate	8.10%
Bonds Issued Two
Disclosure Of Detailed Information About Borrowings [Line Items]
Currency	US dollar
Borrowings, interest rate basis	USD 3m LIBOR + 51bps to 88bps
Bonds and notes	£ 1,665	£ 405
Bonds Issued Two | Bottom of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,018
Adjustment to interest rate basis	0.51%
Bonds Issued Two | Top of Range
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, maturity	2,022
Adjustment to interest rate basis	0.88%

Borrowings - Additional Informa

Borrowings - Additional Information (Details) - GBP (£)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Detailed Information About Borrowings [Line Items]
Interest payable	£ 445,000,000	£ 229,000,000
Borrowings	49,450,000,000	19,495,000,000
Borrowings subject to fair value hedges, Increase in amortised cost	208,000,000	295,000,000
Borrowing amounts secured on group assets	159,000,000	26,000,000
Finance leases secured on group assets	20,000,000	26,000,000
Finance leases	22,000,000	26,000,000
Undrawn committed borrowing facilities	5,400,000,000	3,212,000,000
Within 12 months
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	5,423,000,000	3,007,000,000
Finance leases	10,000,000	10,000,000
Undrawn committed borrowing facilities	2,400,000,000	0
Between One and Five Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Finance leases	12,000,000	16,000,000
Between Three and Four Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	2,913,000,000	1,577,000,000
Undrawn committed borrowing facilities	3,000,000,000
Between Four and Five Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	6,857,000,000	1,925,000,000
Undrawn committed borrowing facilities		3,000,000,000
At Fair Value
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	50,449,000,000	20,592,000,000
At Fair Value | Quoted Market Prices | Level 1
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	43,780,000,000	19,126,000,000
At Fair Value | Discounted Cash Flow | Level 2
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	6,669,000,000	1,466,000,000
Borrowings Subject to Fair Value Hedges
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	£ 6,690,000,000	£ 7,157,000,000
Commercial Papers
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings, interest rate basis	USD LIBOR plus a margin ranging between 19 and 38 basis points and EURIBOR plus a margin ranging between 10 and 24 basis points (2016: USD LIBOR plus a margin ranging between 22 and 77 basis points and EURIBOR plus a margin ranging between 20 and 29 basis points
USD LIBOR | Bottom of Range | Commercial Papers
Disclosure Of Detailed Information About Borrowings [Line Items]
Adjustment to interest rate basis	0.19%	0.22%
USD LIBOR | Top of Range | Commercial Papers
Disclosure Of Detailed Information About Borrowings [Line Items]
Adjustment to interest rate basis	0.38%	0.77%
EURIBOR | Bottom of Range | Commercial Papers
Disclosure Of Detailed Information About Borrowings [Line Items]
Adjustment to interest rate basis	0.10%	0.20%
EURIBOR | Top of Range | Commercial Papers
Disclosure Of Detailed Information About Borrowings [Line Items]
Adjustment to interest rate basis	0.24%	0.29%

Borrowings - Schedule of Det154

Borrowings - Schedule of Detailed Information About Repayment of Borrowings (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	£ 49,450	£ 19,495
Contractual Gross Maturities
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	64,843	24,490
Within 12 months
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	5,423	3,007
Within 12 months | Contractual Gross Maturities
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	6,381	3,587
Between One and Two Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	2,344	1,391
Between One and Two Years | Contractual Gross Maturities
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	3,609	1,870
Between Two and Three Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	7,011	1,756
Between Two and Three Years | Contractual Gross Maturities
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	8,141	2,220
Between Three and Four Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	2,913	1,577
Between Three and Four Years | Contractual Gross Maturities
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	4,034	1,961
Between Four and Five Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	6,857	1,925
Between Four and Five Years | Contractual Gross Maturities
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	7,836	2,292
Beyond 5 Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	24,902	9,839
Beyond 5 Years | Contractual Gross Maturities
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings	£ 34,842	£ 12,560

Borrowings - Schedule of Analys

Borrowings - Schedule of Analysis of Borrowings by Currency (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	£ 49,450	£ 19,495
Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	49,450	19,495
Borrowings net, derivative instruments adjustment	49,058	19,153
Cross-currency Swaps | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(387)	(266)
Forward Foreign Currency Contracts | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(5)	(76)
Functional Currency | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	32,580	5,088
Borrowings net, derivative instruments adjustment	35,341	6,184
Functional Currency | Cross-currency Swaps | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	3,903	1,866
Functional Currency | Forward Foreign Currency Contracts | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(1,142)	(770)
US Dollar | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	4,789	5,524
Borrowings net, derivative instruments adjustment	5,727	6,066
US Dollar | Cross-currency Swaps | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	16	18
US Dollar | Forward Foreign Currency Contracts | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	922	524
UK sterling | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	450
UK sterling | Cross-currency Swaps | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(450)
Euro | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	10,837	8,066
Borrowings net, derivative instruments adjustment	6,836	5,624
Euro | Cross-currency Swaps | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(3,613)	(1,895)
Euro | Forward Foreign Currency Contracts | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(388)	(547)
Canadian Dollar | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Borrowings net, derivative instruments adjustment	215	220
Canadian Dollar | Forward Foreign Currency Contracts | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	215	220
Other Currencies | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	794	817
Borrowings net, derivative instruments adjustment	939	1,059
Other Currencies | Cross-currency Swaps | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(243)	(255)
Other Currencies | Forward Foreign Currency Contracts | Currency Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	£ 388	£ 497

Borrowings - Schedule of Ana156

Borrowings - Schedule of Analysis of Borrowings by Interest Rate Changes (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	£ 49,450	£ 19,495
Interest Rate Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	49,450	19,495
Borrowings net, derivative instruments adjustment	49,063	19,229
Interest Rate Risk | Cross-currency Swaps
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(387)	(266)
Within 1 Year
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	5,423	3,007
Within 1 Year | Interest Rate Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	12,516	3,753
Borrowings net, derivative instruments adjustment	16,798	7,878
Within 1 Year | Interest Rate Risk | Interest Rate Swaps
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	2,995	2,241
Within 1 Year | Interest Rate Risk | Cross-currency Swaps
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	1,287	1,884
Between 1-2 Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	2,344	1,391
Between 1-2 Years | Interest Rate Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	2,325	624
Borrowings net, derivative instruments adjustment	2,308	422
Between 1-2 Years | Interest Rate Risk | Interest Rate Swaps
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments		(202)
Between 1-2 Years | Interest Rate Risk | Cross-currency Swaps
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(17)
Between 2-3 Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	7,011	1,756
Between 2-3 Years | Interest Rate Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	4,321	1,756
Borrowings net, derivative instruments adjustment	3,767	1,506
Between 2-3 Years | Interest Rate Risk | Interest Rate Swaps
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(554)	(250)
Between 3-4 Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	2,913	1,577
Between 3-4 Years | Interest Rate Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	1,941	1,576
Borrowings net, derivative instruments adjustment	633	440
Between 3-4 Years | Interest Rate Risk | Interest Rate Swaps
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(533)	(1,119)
Between 3-4 Years | Interest Rate Risk | Cross-currency Swaps
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(775)	(17)
Between 4-5 Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	6,857	1,925
Between 4-5 Years | Interest Rate Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	4,332	1,925
Borrowings net, derivative instruments adjustment	4,110	1,170
Between 4-5 Years | Interest Rate Risk | Interest Rate Swaps
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(222)	(755)
Beyond Five Years
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	24,902	9,839
Beyond Five Years | Interest Rate Risk
Disclosure Of Detailed Information About Borrowings [Line Items]
Total borrowings	24,015	9,861
Borrowings net, derivative instruments adjustment	21,447	7,813
Beyond Five Years | Interest Rate Risk | Interest Rate Swaps
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	(1,686)	85
Beyond Five Years | Interest Rate Risk | Cross-currency Swaps
Disclosure Of Detailed Information About Borrowings [Line Items]
Effect of derivative financial instruments	£ (882)	£ (2,133)

Borrowings - Schedule of Ana157

Borrowings - Schedule of Analysis of Net Debt (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Detailed Information About Borrowings [Abstract]
Borrowings	£ 49,450	£ 19,495
Derivatives in respect of net debt, assets	(640)	(809)
Liabilities, Derivatives – in respect of net debt	117	300
Cash and cash equivalents (note 18)	(3,291)	(2,204)
Current available-for-sale investments (note 15)	(65)	(15)
Net Debt	£ 45,571	£ 16,767	£ 14,794

Borrowings - Schedule of Ana158

Borrowings - Schedule of Analysis of Net Debt (Parenthetical) (Details) £ in Millions	Dec. 31, 2017GBP (£)
Reynolds American Inc.
Disclosure Of Detailed Information About Borrowings [Line Items]
Purchase price adjustments relating to acquisition	£ 947

Borrowings - Schedule of Ana159

Borrowings - Schedule of Analysis of Net Debt Movements (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Detailed Information About Borrowings [Line Items]
Net debt, Opening balance	£ 16,767	£ 14,794
Net debt, Subsidiaries acquired	9,915
Net debt, Cash flow	19,763	163
Net debt, Foreign exchange, accrued interest and other	(874)	1,810
Net debt, Closing balance	45,571	16,767
Borrowings
Disclosure Of Detailed Information About Borrowings [Line Items]
Net debt, Opening balance	19,495	17,001
Net debt, Subsidiaries acquired	11,203
Net debt, Cash flow	20,024	(252)
Net debt, Foreign exchange, accrued interest and other	(1,272)	2,746
Net debt, Closing balance	49,450	19,495
Derivatives in Respect of Net Debt, Assets
Disclosure Of Detailed Information About Borrowings [Line Items]
Net debt, Opening balance	(809)	(373)
Net debt, Cash flow	106	258
Net debt, Foreign exchange, accrued interest and other	63	(694)
Net debt, Closing balance	(640)	(809)
Derivatives in Respect of Net Debt, Liabilities
Disclosure Of Detailed Information About Borrowings [Line Items]
Net debt, Opening balance	300	164
Net debt, Cash flow	(380)	(22)
Net debt, Foreign exchange, accrued interest and other	197	158
Net debt, Closing balance	117	300
Cash and Cash Equivalents
Disclosure Of Detailed Information About Borrowings [Line Items]
Net debt, Opening balance	(2,204)	(1,963)
Net debt, Subsidiaries acquired	(1,288)
Net debt, Cash flow	57	157
Net debt, Foreign exchange, accrued interest and other	144	(398)
Net debt, Closing balance	(3,291)	(2,204)
Current Available-for-sale Investments
Disclosure Of Detailed Information About Borrowings [Line Items]
Net debt, Opening balance	(15)	(35)
Net debt, Cash flow	(44)	22
Net debt, Foreign exchange, accrued interest and other	(6)	(2)
Net debt, Closing balance	£ (65)	£ (15)

Provisions for liabilities - Su

Provisions for liabilities - Summary of Provisions Excluding Post-Retirement Benefits (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Other Provisions [Line Items]
Beginning balance	£ 793	£ 569
Differences on exchange	(21)	69
Subsidiaries acquired	42
Provided in respect of the year	282	304
Utilised during the year	(343)	(149)
Ending balance	753	793
– current	399	407
– non-current	354	386
Restructuring of Existing Businesses
Disclosure Of Other Provisions [Line Items]
Beginning balance	190	89
Differences on exchange	4	15
Provided in respect of the year	172	120
Utilised during the year	(208)	(34)
Ending balance	158	190
– current	87	86
– non-current	71	104
Employee Related Benefits
Disclosure Of Other Provisions [Line Items]
Beginning balance	40	38
Differences on exchange	(3)	8
Provided in respect of the year	15	14
Utilised during the year	(12)	(20)
Ending balance	40	40
– current	24	27
– non-current	16	13
Fox River
Disclosure Of Other Provisions [Line Items]
Beginning balance	163	160
Provided in respect of the year		20
Utilised during the year	(25)	(17)
Ending balance	138	163
– current	22	19
– non-current	116	144
Other Provisions
Disclosure Of Other Provisions [Line Items]
Beginning balance	400	282
Differences on exchange	(22)	46
Subsidiaries acquired	42
Provided in respect of the year	95	150
Utilised during the year	(98)	(78)
Ending balance	417	400
– current	266	275
– non-current	£ 151	£ 125

Provisions for liabilities - Ad

Provisions for liabilities - Additional Information (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2011
Disclosure Of Other Provisions [Line Items]
Payments for funding agreement	£ 18	£ 6
Restructuring of Existing Businesses
Disclosure Of Other Provisions [Line Items]
Noncurrent provisions relates to termination payments	£ 71
Estimated unwind percentage of noncurrent provisions relates to termination payments	35.00%
Reversals of unused provisions	£ 7	41
Employee Related Benefits
Disclosure Of Other Provisions [Line Items]
Noncurrent provisions	£ 16
Estimated unwind percentage of noncurrent provisions	22.00%
Reversals of unused provisions	£ 5	2
Fox River
Disclosure Of Other Provisions [Line Items]
Provision made during period			£ 274
Legal costs incurred	7	11
Increased amount in provision		20
Other Provisions
Disclosure Of Other Provisions [Line Items]
Reversals of unused provisions	£ 49	£ 61
Top of Range | Restructuring of Existing Businesses
Disclosure Of Other Provisions [Line Items]
Expected unwind period	5 years
Top of Range | Employee Related Benefits
Disclosure Of Other Provisions [Line Items]
Expected unwind period	5 years
Top of Range | Fox River
Disclosure Of Other Provisions [Line Items]
Expected unwind period		5 years

Trade and Other Payables - Summ

Trade and Other Payables - Summary of Trade and Other Payables (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Trade And Other Payables [Abstract]
Trade payables	£ 2,298	£ 1,281
Duty, excise and other taxes	3,577	4,573
Accrued charges and deferred income	1,746	1,140
FII GLO deferred income	963	963
Social security and other taxation	50	21
Sundry payables	1,271	397
Trade and other payables	9,905	8,375
Trade and other payables, current	8,847	7,335
Trade and other payables, non-current	£ 1,058	£ 1,040

Trade and Other Payables - Addi

Trade and Other Payables - Additional Information (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Trade And Other Current Payables [Abstract]
Interest payable	£ 16	£ 8
Deferred income	8	19
FII GLO deferred income	£ 963	£ 963
Percentage of trade and other payables denominated in other than the functional currency of the subsidiary	5.00%	5.00%

Financial Instruments and Ri164

Financial Instruments and Risk Management - Additional Information (Details) € in Millions, $ in Millions

1 Months Ended

12 Months Ended

Aug. 31, 2017USD ($)

Jul. 31, 2017USD ($)

Jun. 30, 2017USD ($)

Jun. 30, 2017EUR (€)

Oct. 31, 2016

Dec. 31, 2017GBP (£)Bond

Dec. 31, 2016GBP (£)

Dec. 31, 2015GBP (£)

Dec. 31, 2017USD ($)

Dec. 31, 2017EUR (€)

Apr. 30, 2017GBP (£)

Mar. 31, 2017GBP (£)

Dec. 31, 2016USD ($)

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Proportion of average cost of debt

3.30%

3.10%

Bank loans

£ 512,000,000

£ 336,000,000

Cash and cash equivalents

3,291,000,000

2,204,000,000

Impact of 10% strengthening of functional currencies against non-functional currencies on pre-tax profit

(14,000,000)

2,000,000

£ (3,000,000)

Impact of 10% strengthening of functional currencies against non-functional currencies on items recognised directly in other comprehensive income

148,000,000

413,000,000

326,000,000

Impact of 10% weakening of functional currencies against non-functional currencies on pre-tax profit

4,000,000

(4,000,000)

2,000,000

Impact of 10% weakening of functional currencies against non-functional currencies on items recognised directly in other comprehensive income

148,000,000

505,000,000

398,000,000

Maximum exposure to credit risk

£ 3,000,000

4,000,000

Financial assets maturity period

1 year

Financial Liabilities maturity period

1 year

Leaf Supply Arrangements

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Maximum exposure to credit risk

£ 96,000,000

105,000,000

US Dollar

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Cash and cash equivalents

161,000,000

195,000,000

Euro

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Cash and cash equivalents

159,000,000

159,000,000

UK sterling

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Cash and cash equivalents

2,842,000,000

£ 1,748,000,000

Short Term Credit Facility

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Maximum exposure to credit risk

£ 116,000,000

Liquidity Risk

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Target average centrally managed debt maturity

5 years

Average centrally managed debt maturity

9 years 2 months 12 days

8 years 2 months 12 days

Peak maturity of centrally managed debt maturing in a rolling 12-month period

13.20%

18.10%

13.20%

13.20%

18.10%

Bonds issued

£ 1,600,000,000

£ 1,600,000,000

Repayments of bonds at maturity

$ 500

$ 600

€ 1,250

Bank loans | $

$ 25,000

Number of series of bonds issued under EMTN programme | Bond

4

EMTN Programme

£ 25,000,000,000

£ 15,000,000,000

Outstanding amount on commercial paper

1,200,000,000

254,000,000

Liquidity Risk | Reynolds American Inc.

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Percentage of equity interest proposed to acquire

57.80%

Liquidity Risk | US Commercial Paper Programme

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Short-term funds | $

$ 4,000

$ 3,000

Liquidity Risk | Euro Commercial Paper (ECP) Programme

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Short-term funds

3,000,000,000

1,000,000,000

Liquidity Risk | Money Market Funds

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Cash and cash equivalents

£ 668,000,000

193,000,000

Liquidity Risk | Bridge Facilities One Year Maturity

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bank loans | $

$ 15,000

Period of borrowings maturity

1 year

Liquidity Risk | Bridge Facilities Two Year Maturity

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bank loans | $

$ 5,000

Period of borrowings maturity

2 years

Liquidity Risk | Term Loans With Maturity In 2020

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bank loans | $

$ 2,500

Borrowings, maturity

2,020

Liquidity Risk | Term Loans With Maturity In 2022

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bank loans | $

$ 2,500

Borrowings, maturity

2,022

Liquidity Risk | USD Denominated Bonds

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued | $

17,250

Number of bonds | Bond

8

Liquidity Risk | USD Denominated Bonds Maturing on August 2020

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued | $

3,250

Borrowings, maturity

August 2,020

Number of bonds | Bond

2

Liquidity Risk | USD Denominated Bonds Maturing on August 2022

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued | $

3,000

Borrowings, maturity

August 2,022

Number of bonds | Bond

2

Liquidity Risk | USD Denominated Bonds Maturing on August 2024

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued | $

2,500

Borrowings, maturity

August 2,024

Number of bonds | Bond

1

Liquidity Risk | USD Denominated Bonds Maturing on August 2027

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued | $

3,500

Borrowings, maturity

August 2,027

Number of bonds | Bond

1

Liquidity Risk | USD Denominated Bonds Maturing on August 2037

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued | $

2,500

Borrowings, maturity

August 2,037

Number of bonds | Bond

1

Liquidity Risk | USD Denominated Bonds Maturing on August 2047

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued | $

$ 2,500

Borrowings, maturity

August 2,047

Number of bonds | Bond

1

Liquidity Risk | Bonds Under EMTN Programme Maturing in August 2025

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued

£ 450,000,000

Borrowings, maturity

August 2,025

Liquidity Risk | Euro Denominated Bonds Under EMTN Programme

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued | €

€ 3,100

Number of bonds | Bond

3

Liquidity Risk | Euro Denominated Bonds Under EMTN Programme Maturing in August 2021

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued | €

1,100

Borrowings, maturity

August 2,021

Liquidity Risk | Euro Denominated Bonds Under EMTN Programme Maturing in November 2023

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued | €

750

Borrowings, maturity

November 2,023

Liquidity Risk | Euro Denominated Bonds Under EMTN Programme Maturing in January 2030

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Bonds issued | €

€ 1,250

Borrowings, maturity

January 2,030

Liquidity Risk | Revolving Credit Facility Maturing in 2021

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Borrowings capacity

£ 3,000,000,000

Drawings from current borrowing capacity

600,000,000

£ 0

Liquidity Risk | Two-tranche Revolving Credit Facility

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Borrowings capacity

£ 6,000,000,000

Liquidity Risk | 364-day Revolving Credit Facility

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Period of borrowings maturity

364 days

Borrowings capacity

£ 3,000,000,000

Extension option on borrowings

1 year

Term out option on borrowings

1 year

Liquidity Risk | New Revolving Credit Facility Maturing in 2021

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Borrowings, maturity

2,021

Borrowings capacity

£ 3,000,000,000

Liquidity Risk | Top of Range

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Target centrally managed debt maturing in a rolling 12-month period

20.00%

Currency Risk | US Dollar

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Percentage of gross debt after taking into account derivative contracts

62.00%

31.00%

62.00%

62.00%

31.00%

Currency Risk | Euro

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Percentage of gross debt after taking into account derivative contracts

14.00%

29.00%

14.00%

14.00%

29.00%

Currency Risk | Canadian Dollar

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Percentage of gross debt after taking into account derivative contracts

0.00%

1.00%

0.00%

0.00%

1.00%

Currency Risk | UK sterling

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Percentage of gross debt after taking into account derivative contracts

20.00%

28.00%

20.00%

20.00%

28.00%

Currency Risk | Rest of Group

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Percentage of gross debt after taking into account derivative contracts

4.00%

11.00%

4.00%

4.00%

11.00%

Interest Rate Risk

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Description of hedging instruments

The Group targets an interest cover ratio, as calculated under its key central banking facilities, of greater than 5 and for 2017 it is 7.8 times (2016: 12.2 times; 2015: 11.6 times). The only externally imposed capital requirement the Group has is in respect of its centrally managed banking facilities, which require a gross interest cover of at least 4.5 times.

Description of interest rate sensitivity

IFRS 7 requires a sensitivity analysis that shows the impact on the income statement and on items recognised directly in other comprehensive income of hypothetical changes of interest rates in respect of financial assets and liabilities of the Group. All other variables are held constant although, in practice, market rates rarely change in isolation. For the purposes of this sensitivity analysis, financial assets and liabilities with fixed interest rates are not included. The Group considers a 100 basis point change in interest rates a reasonably possible change except where rates are less than 100 basis points. In these instances it is assumed that the interest rates increase by 100 basis points and decrease to zero for the purpose of performing the sensitivity analysis. The impact is calculated with reference to the financial asset or liability held as at the year-end, unless this is unrepresentative of the position during the year.

Borrowings, interest rate basis

1.00%

1.00%

1.00%

Decrease in pre-tax profit based on 100 basis point increase in interest rates

£ 108,000,000

£ 37,000,000

65,000,000

Increase in pre-tax profit based on 100 basis point decrease in interest rates, or less

£ 77,000,000

£ 16,000,000

£ 40,000,000

Interest Rate Risk | Fixed Rate

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Target for floating to fixed rate debt

50.00%

50.00%

50.00%

Borrowings, adjustment to interest rate on a gross basis

33.33%

35.13%

33.33%

33.33%

35.13%

Borrowings, adjustment to interest rate on a fixed basis

23.46%

17.65%

23.46%

23.46%

17.65%

Credit Risk

Disclosure Of Fair Value Measurement Of Liabilities [Line Items]

Concentrations of customer credit risk

No significant concentrations of customer credit risk

Financial Instruments and Ri165

Financial Instruments and Risk Management - Summary of Assets and Liabilities Measured at Fair Value (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]
Available-for-sale investments (note 15)	£ 107	£ 58
Assets	818	971
Assets at fair value	925	1,029
Liabilities	234	668
Liabilities at fair value	234	668
Level 1
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]
Available-for-sale investments (note 15)	91	15
Assets at fair value	91	15
Level 2
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]
Assets at fair value	818	971
Liabilities at fair value	234	668
Level 3
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]
Available-for-sale investments (note 15)	16	43
Assets at fair value	16	43
Interest Rate Swaps
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]
Assets	166	252
Liabilities	91	104
Interest Rate Swaps | Level 2
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]
Assets	166	252
Liabilities	91	104
Cross-Currency Swaps
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]
Assets	450	540
Liabilities		174
Cross-Currency Swaps | Level 2
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]
Assets	450	540
Liabilities		174
Forward Foreign Currency Contracts
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]
Assets	202	179
Liabilities	143	390
Forward Foreign Currency Contracts | Level 2
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items]
Assets	202	179
Liabilities	£ 143	£ 390

Financial Instruments and Ri166

Financial Instruments and Risk Management - Summary of Derivative Financial Asset and Liabilities Offsetting Arrangements (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
Derivative Financial Asset And Liabilities Offsetting Arrangements [Line Items]
Amount presented in the Group balance sheet	£ 584	£ 303
Net amount	584	303
Financial Derivative Assets
Derivative Financial Asset And Liabilities Offsetting Arrangements [Line Items]
Amount presented in the Group balance sheet	818	971
Related amounts not offset in the Group balance sheet	(211)	(502)
Net amount	607	469
Financial Derivative Liabilities
Derivative Financial Asset And Liabilities Offsetting Arrangements [Line Items]
Amount presented in the Group balance sheet	(234)	(668)
Related amounts not offset in the Group balance sheet	211	502
Net amount	£ (23)	£ (166)

Business Combinations, Dispo167

Business Combinations, Disposals and Other Changes in the Group - Additional Information (Details) $ / shares in Units, € in Millions, £ in Millions, $ in Millions	Dec. 21, 2017	Aug. 01, 2017GBP (£)	Jul. 25, 2017GBP (£)shares	Jul. 25, 2017GBP (£)$ / sharesshares	May 05, 2017GBP (£)	Apr. 05, 2017GBP (£)	Jan. 04, 2017GBP (£)	Apr. 20, 2016GBP (£)	Feb. 05, 2016GBP (£)	Dec. 30, 2015GBP (£)	Nov. 17, 2015GBP (£)	Oct. 16, 2015	Jun. 12, 2015GBP (£)	Jun. 12, 2015USD ($)	May 30, 2015EUR (€)	Jul. 30, 2004	Jan. 31, 2017GBP (£)	Dec. 31, 2017GBP (£)	Dec. 31, 2017GBP (£)	Dec. 31, 2017USD ($)	Dec. 31, 2016GBP (£)	Dec. 31, 2016USD ($)	Dec. 31, 2015GBP (£)	Dec. 31, 2015USD ($)
Disclosure Of Business Combinations [Line Items]
Acquisition percentage																		57.80%	57.80%
Goodwill																		£ 44,147	£ 44,147		£ 11,023		£ 9,324
Financing cost																			1,197		681		584
Amortisation of acquired intangibles																			356		205
Consideration paid for additional interest acquired																					70		£ 1,677
Reynolds American Inc.
Disclosure Of Business Combinations [Line Items]
Transaction costs | $																				$ 125		$ 5		$ 54
Cash invested													£ 3,000	$ 4,700
Percentage of interest in associate													42.00%	42.00%		42.20%
Reynolds American Inc.
Disclosure Of Business Combinations [Line Items]
Date of acquisition			Jul. 25, 2017
Percentage of equity interest proposed to acquire			57.80%
Consideration paid			£ 41,800
Cash Consideration Paid | $ / shares				$ 29.44
Share Consideration Received | shares			0.5260	0.5260
Acquisition percentage			100.00%	100.00%
Goodwill			£ 34,280	$ 34,280														33,062	33,062		0
Non-cash consideration paid to its subsidiaries			22,828
Non-cash consideration paid to its subsidiaries by issuing shares			£ 22,773
Transaction costs																			130		11
Financing cost																			153
Cost incurred by associates																			33
Contributed Revenue																		4,211
Contributed Profit Loss																		£ 1,448
Amortisation of acquired intangibles																			243
Release of fair value uplifts on inventory																			465
Restructuring and integration cost																			125
Revenue of Combined Entity																			25,749
Profit Loss of Combined Entity																			8,576
Ownership percentage after additional acquisition			57.80%
Percentage of interest in associate			42.20%
Winnington Holding AB
Disclosure Of Business Combinations [Line Items]
Date of acquisition							Jan. 4, 2017
Acquisition percentage							100.00%
Fair value of consideration							£ 31
Contingent consideration payable							8
Goodwill							8
Intangible assets							£ 28
Must Have Limited
Disclosure Of Business Combinations [Line Items]
Date of acquisition						Apr. 5, 2017
Fair value of consideration						£ 12
Goodwill						1
Intangible assets						£ 9
Bulgartabac Holding AD
Disclosure Of Business Combinations [Line Items]
Date of acquisition					May 5, 2017
Fair value of consideration					£ 110
Contingent consideration payable					28
Goodwill					22
Intangible assets					£ 95
Fabrika Duhana Sarajevo d.d
Disclosure Of Business Combinations [Line Items]
Date of acquisition		Aug. 1, 2017
Fair value of consideration		£ 39
Goodwill		2
Intangible assets		£ 39
Ten Motives Limited
Disclosure Of Business Combinations [Line Items]
Date of acquisition								Apr. 20, 2016
Acquisition percentage								100.00%
Goodwill								£ 21
Fair value of consideration								56
Contingent consideration payable								6
Intangible assets								£ 33
TDR
Disclosure Of Business Combinations [Line Items]
Date of acquisition															May 30, 2015
Consideration paid																	£ 5
Fair value of consideration | €															€ 550
Final agreement, adjustment to net assets																					12
Final agreement, reduction in goodwill resulting from transfer and other changes to net assets																					(12)
CHIC Group
Disclosure Of Business Combinations [Line Items]
Date of acquisition										Dec. 30, 2015
Consideration paid																			13		6
Acquisition percentage										100.00%
Goodwill										£ 40
Fair value of consideration										82
Contingent consideration payable										30
Intangible assets										45
Deferred tax liabilities recognised										£ 8
Blue Nile Cigarette Company Limited
Disclosure Of Business Combinations [Line Items]
Date of acquisition											Nov. 17, 2015
Consideration paid																			£ 5		£ 1
Acquisition percentage											100.00%
Goodwill											£ 7
Fair value of consideration											45
Contingent consideration payable											8
Intangible assets											£ 34
IPRESS.d.o.o
Disclosure Of Business Combinations [Line Items]
Acquisition percentage																		49.00%	49.00%
Souza Cruz S.A.
Disclosure Of Business Combinations [Line Items]
Date of acquisition												Oct. 16, 2015
Acquisition percentage																							24.70%
Ownership percentage after additional acquisition																							99.10%	99.10%
Consideration paid for additional interest acquired									£ 70														£ 1,660
BAT Chile Operaciones, SA
Disclosure Of Business Combinations [Line Items]
Acquisition percentage																		0.01%	0.01%				0.20%
Ownership percentage after additional acquisition																							99.00%	99.00%
Consideration paid for additional interest acquired																							£ 1
BAT Central America S.A.
Disclosure Of Business Combinations [Line Items]
Acquisition percentage																							9.00%
Ownership percentage after additional acquisition																							88.00%	88.00%
Consideration paid for additional interest acquired																							£ 16
BAT Central America S.A. | Total Attributable to Owners of Parent
Disclosure Of Business Combinations [Line Items]
Reduction to reserves																							14
BAT Central America S.A. | Non- Controlling Interests
Disclosure Of Business Combinations [Line Items]
Reduction to reserves																							£ 2
Twisp Proprietary Limited
Disclosure Of Business Combinations [Line Items]
Date of acquisition	Dec. 21, 2017
Acquisition percentage	100.00%

Business Combinations, Dispo168

Business Combinations, Disposals and Other Changes in the Group - Schedule of Fair Values Assigned to the Asset Acquired and Liabilities Assumed on Acquisition Date (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Jul. 25, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Business Combinations [Line Items]
Goodwill	£ 44,147		£ 11,023	£ 9,324
Reynolds American Inc.
Disclosure Of Business Combinations [Line Items]
Goodwill	£ 33,062	£ 34,280	£ 0
Reynolds American Inc. | At Fair Value
Disclosure Of Business Combinations [Line Items]
Intangible assets		75,482
Property, plant and equipment		1,039
Deferred tax assets		293
Trade and other receivables		145
Inventories		1,751
Income tax asset		200
Cash and cash equivalents		1,285
Borrowings		(11,197)
Retirement benefit liabilities		(1,339)
Deferred tax liabilities		(27,358)
Other provisions for liabilities and charges		(42)
Trade and other payables		(2,516)
Income tax liability		(108)
Net identifiable assets acquired		37,635
Goodwill		34,280
Total		71,915
Consideration paid to Reynolds shareholders (57.8%)		41,770
Value attributable to BAT shareholding (42.2%)		£ 30,145

Business Combinations, Dispo169

Business Combinations, Disposals and Other Changes in the Group - Schedule of Fair Values Assigned to the Asset Acquired and Liabilities Assumed on Acquisition Date (Parenthetical) (Details) - Reynolds American Inc.	Jul. 25, 2017
Disclosure Of Business Combinations [Line Items]
Ownership percentage in subsidiary	57.80%
Percentage of interest in associate	42.20%

Share-based Payments - Addition

Share-based Payments - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017GBP (£)sharesyr	Dec. 31, 2016GBP (£)sharesyr	Dec. 31, 2015GBP (£)sharesyr	Dec. 31, 2010shares
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options outstanding	6,030,000
Share price volatility calculation period	five year
Expected dividend yield calculation determination	The expected dividend yield was determined by calculating the yield from the last two declared dividends divided by the grant share price.
Sharesave Scheme (SAYE)
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Discount percentage on market price	20.00%
Number of options granted				0
Maximum savings by participant to buy shares in any tax year | £	£ 6,000
Sharesave Scheme (SAYE) | Bottom of Range
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Options exercisable period	3 years
Sharesave Scheme (SAYE) | Top of Range
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Options exercisable period	5 years
Share Reward Scheme (SRS) and International Share Reward Scheme (ISRS)
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Maximum amount of free shares that can be granted | £	£ 3,600
Free shares granted | £		£ 3,600	£ 3,000
Investment holding period	3 years
Partnership Share Scheme
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Maximum amount allocated to purchase shares | £	£ 1,800
Period taken to transfer to participants tax free	5 years
LTIP, Equity-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options granted	1,690,000	1,772,000
Number of options outstanding	6,030,000	5,337,000	5,225,000
Number of share options exercisable	653,000	148,000
Weighted average share price at date of exercise for share options exercised | £	£ 51.95	£ 45.80	£ 35.39
Weighted average remaining contractual life of outstanding shares | yr	8.1	8.2	8.2
LTIP, Cash-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options granted	152,000	139,000
Number of options outstanding	378,000	407,000	414,000
Number of share options exercisable	7,000	23,000
Weighted average share price at date of exercise for share options exercised | £	£ 52.08	£ 47	£ 35.52
Weighted average remaining contractual life of outstanding shares | yr	8.3	7.9	7.9
DSBS, Equity-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options granted	1,079,000	1,316,000
Number of options outstanding	2,962,000	3,225,000	3,395,000
Number of share options exercisable	61,000	35,000
Weighted average share price at date of exercise for share options exercised | £	£ 52.52	£ 42.26	£ 35.05
Weighted average remaining contractual life of outstanding shares | yr	1.3	1.3	1.2
DSBS, Cash-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options granted	136,000	148,000
Number of options outstanding	382,000	423,000	451,000
Number of share options exercisable	5,000	4,000
Weighted average share price at date of exercise for share options exercised | £	£ 52.50	£ 41.97	£ 34.42
Weighted average remaining contractual life of outstanding shares | yr	1.2	1.2	1.3
Reynolds American Inc.
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options outstanding	891,677
Number of share options exercisable	327,463
Weighted average share price at date of exercise for share options exercised | £	£ 46.32
Reynolds American Inc. | LTIP, Equity-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Weighted average remaining contractual life of outstanding shares | yr	2.17
Long Term Incentive Plan
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Nil-cost options exercisable - contractual life in years	10 years
Options exercisable period	3 years
Long Term Incentive Plan | Earnings Per Share
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Percentage of grant	40.00%	40.00%	50.00%
Long Term Incentive Plan | Operating Cash Flow
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Percentage of grant	20.00%	20.00%	0.00%
Long Term Incentive Plan | Total Shareholder Return
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Percentage of grant	20.00%	20.00%	25.00%
Long Term Incentive Plan | Net Turnover
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Percentage of grant	20.00%	20.00%	25.00%
Long Term Incentive Plan | Reynolds American Inc.
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Percentage of grant	150.00%
Date of acquisition	Jul. 25, 2017

Share-based Payments - Summary

Share-based Payments - Summary of Share-based Payment Expense (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based payments - equity and cash-settled (note 25)	£ 117	£ 84	£ 60
LTIP, Cash-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based payments - equity and cash-settled (note 25)	3	6	3
DSBS, Cash-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based payments - equity and cash-settled (note 25)	9	7	7
Cash-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based payments - equity and cash-settled (note 25)	12	13	10
LTIP, Equity-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based payments - equity and cash-settled (note 25)	56	25	1
DSBS, Equity-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based payments - equity and cash-settled (note 25)	42	40	44
Other schemes, Equity-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based payments - equity and cash-settled (note 25)	7	6	5
Equity-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Share-based payments - equity and cash-settled (note 25)	£ 105	£ 71	£ 50

Share-based Payments - Summa172

Share-based Payments - Summary of Share-based Payment Liability (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016
LTIP, Vested
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Total liability	£ 0.3	£ 1.1
DSBS, Vested
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Total liability	0.3	0.3
Vested
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Total liability	0.6	1.4
LTIP, Unvested
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Total liability	9.1	8.9
LTIP, Unvested
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Total liability	11.6	11.3
Unvested
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Total liability	£ 20.7	£ 20.2

Share-based Payments - Summa173

Share-based Payments - Summary of Movements for Equity and Cash-Settled LTIP Scheme (Details) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options, Outstanding at end of year	6,030,000
LTIP, Equity-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options, Outstanding at start of year	5,337,000	5,225,000
Number of options granted	1,690,000	1,772,000
Number of options, Acquired from RAI	904,000
Number of options, Exercised during the period	(746,000)	(262,000)
Number of options, Forfeited during the period	(1,155,000)	(1,398,000)
Number of options, Outstanding at end of year	6,030,000	5,337,000
Number of options, Exercisable at end of year	653,000	148,000
LTIP, Cash-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options, Outstanding at start of year	407,000	414,000
Number of options granted	152,000	139,000
Number of options, Exercised during the period	(65,000)	(77,000)
Number of options, Forfeited during the period	(116,000)	(69,000)
Number of options, Outstanding at end of year	378,000	407,000
Number of options, Exercisable at end of year	7,000	23,000

Share-based Payments - Summa174

Share-based Payments - Summary of Movements for Equity and Cash-Settled DSBS Scheme (Details) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options, Outstanding at end of year	6,030,000
DSBS, Equity-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options, Outstanding at start of year	3,225,000	3,395,000
Number of options granted	1,079,000	1,316,000
Number of options, Exercised during the period	(1,267,000)	(1,395,000)
Number of options, Forfeited during the period	(75,000)	(91,000)
Number of options, Outstanding at end of year	2,962,000	3,225,000
Number of options, Exercisable at end of year	61,000	35,000
DSBS, Cash-settled
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Number of options, Outstanding at start of year	423,000	451,000
Number of options granted	136,000	148,000
Number of options, Exercised during the period	(165,000)	(161,000)
Number of options, Forfeited during the period	(12,000)	(15,000)
Number of options, Outstanding at end of year	382,000	423,000
Number of options, Exercisable at end of year	5,000	4,000

Share-based Payments - Valuatio

Share-based Payments - Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2017GBP (£)yr	Dec. 31, 2016GBP (£)yr
Long Term Incentive Plan
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Expected volatility (%)	18.00%	18.00%
Average expected term to exercise (years) | yr	3.5	3.5
Risk-free rate (%)	0.30%	0.60%
Percentage of grant	3.20%	3.60%
Share price at date of grant (£)	£ 52.11	£ 42.34
Fair value at grant date (£)	£ 41.04	£ 26.53
Deferred Share Bonus Scheme
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Expected volatility (%)	18.00%	17.00%
Average expected term to exercise (years) | yr	3	3
Risk-free rate (%)	0.30%	0.60%
Percentage of grant	3.20%	3.70%
Share price at date of grant (£)	£ 52.11	£ 40.08
Fair value at grant date (£)	£ 47.27	£ 35.82

Share-based Payments - Summa176

Share-based Payments - Summary of Valuation Assumptions Used in Models (Details) - Long Term Incentive Plan	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items]
Average share price volatility FMCG comparator group (%)	19.00%	19.00%
Average correlation FMCG comparator group (%)	31.00%	36.00%

Group Employees - Additional In

Group Employees - Additional Information (Details) - Employee	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number And Average Number Of Employees [Abstract]
Average number of employees	91,402	85,335

Group Employees - Summary of Av

Group Employees - Summary of Average Number of Persons Employed by Group and Associates (Details) - Employee	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number and Average Number of Employees [Line Items]
Average number of employees	91,402	85,335
Associates
Number and Average Number of Employees [Line Items]
Average number of employees	30,809	32,629
Subsidiaries
Number and Average Number of Employees [Line Items]
Average number of employees	60,593	52,706
Subsidiaries | Asia-Pacific
Number and Average Number of Employees [Line Items]
Average number of employees	13,293	13,002
Subsidiaries | Americas
Number and Average Number of Employees [Line Items]
Average number of employees	15,929	14,691
Subsidiaries | Western Europe
Number and Average Number of Employees [Line Items]
Average number of employees	16,644	13,444
Subsidiaries | EEMEA
Number and Average Number of Employees [Line Items]
Average number of employees	12,559	11,569
Subsidiaries | US
Number and Average Number of Employees [Line Items]
Average number of employees	2,168

Related Party Disclosures - Add

Related Party Disclosures - Additional information (Details) $ in Millions	Sep. 22, 2016USD ($)	Dec. 31, 2017GBP (£)	Dec. 31, 2017USD ($)	Dec. 31, 2016GBP (£)	Dec. 31, 2015GBP (£)
Disclosure Of Transactions Between Related Parties [Line Items]
Acquisition percentage		57.80%
Proceeds from share buy-back programme by RAI				£ 23,000,000
Consideration paid for additional interest acquired				70,000,000	£ 1,677,000,000
IPRESS.d.o.o
Disclosure Of Transactions Between Related Parties [Line Items]
Acquisition percentage		49.00%
B A T Chile Operaciones S A
Disclosure Of Transactions Between Related Parties [Line Items]
Acquisition percentage		0.01%			0.20%
Consideration paid for additional interest acquired					£ 1,000,000
B A T Chile Operaciones S A And I P R E S S D O O
Disclosure Of Transactions Between Related Parties [Line Items]
Acquisition related cost		£ 1,000,000
Associates
Disclosure Of Transactions Between Related Parties [Line Items]
Share of dividends from associates in respect of dividends		688,000,000		1,024,000,000	640,000,000
Associates | Dividends Receivable
Disclosure Of Transactions Between Related Parties [Line Items]
Amounts receivable from associates in respect of dividends		£ 0		221,000,000	£ 145,000,000
RJ Reynolds Tobacco Company | 2010 Agreement
Disclosure Of Transactions Between Related Parties [Line Items]
Agreement termination date		Dec. 31, 2014	Dec. 31, 2014
Agreement notice period		three years	three years
Early termination compensation recognized | $			$ 90
Early termination compensation paid | $	$ 7
BATUS Japan Inc
Disclosure Of Transactions Between Related Parties [Line Items]
Proceeds from share buy-back programme by RAI				£ 23,000,000
Subsidiaries | Souza Cruz
Disclosure Of Transactions Between Related Parties [Line Items]
Acquisition percentage				1.00%
Consideration paid for additional interest acquired				£ 70,000,000
Increase in reserves attributable to the owners of the parent				4,000,000
Decrease in reserves attributable to non-controlling interests				£ 4,000,000
Globe House
Disclosure Of Transactions Between Related Parties [Line Items]
Maximum charge to secure total contributions payable over the Group’s Head Office		£ 150,000,000

Related Party Disclosures - Sum

Related Party Disclosures - Summary of Transactions Between Related Parties (Details) - Related Parties - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Transactions
– revenue	£ 366	£ 370	£ 38
– purchases	(218)	(298)	(270)
– other net income	699	1,023	639
Amounts receivable at 31 December	40	270	190
Amounts payable at 31 December	£ (1)	£ (2)	£ (20)

Related Party Disclosures - 181

Related Party Disclosures - Summary of Amounts Incurred by Entity for Provision of Key Management Personnel Services (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Amounts Incurred By Entity For Provision Of Key Management Personnel Services Provided By Separate Management Entities [Line Items]
Key management personnel compensation – salaries and other short-term employee benefits	£ 24	£ 18	£ 20
Key management personnel compensation – post-employment benefits	5	3	4
Key management personnel compensation – share-based payments	16	12	11
Key management personnel compensation - total	45	33	35
Salary; fees; benefits; incentives
– salary	2,122	2,057	2,042
– fees	1,702	1,696	1,780
– taxable benefits	709	563	497
– short-term incentives	4,689	4,622	3,940
– long-term incentives	10,192	4,483	647
Sub-total	19,414	13,421	8,906
Pension; other emoluments
– pension	612	634	936
– other emoluments	50	44	51
Sub-total	662	678	987
Total emoluments	20,076	14,099	9,893
Executive Directors [Member]
Salary; fees; benefits; incentives
– salary	2,122	2,057	2,042
– taxable benefits	385	335	259
– short-term incentives	4,689	4,622	3,940
– long-term incentives	10,192	4,483	647
Sub-total	17,388	11,497	6,888
Pension; other emoluments
– pension	612	634	936
– other emoluments	50	44	51
Sub-total	662	678	987
Total emoluments	18,050	12,175	7,875
Chairman [Member]
Salary; fees; benefits; incentives
– fees	660	645	642
– taxable benefits	129	106	85
Sub-total	789	751	727
Pension; other emoluments
Total emoluments	789	751	727
Non-Executive Directors [Member]
Salary; fees; benefits; incentives
– fees	1,042	1,051	1,138
– taxable benefits	195	122	153
Sub-total	1,237	1,173	1,291
Pension; other emoluments
Total emoluments	£ 1,237	£ 1,173	£ 1,291

Related Party Disclosures - 182

Related Party Disclosures - Summary of Aggregate Gains on LTIP Shares Exercised (Details)	12 Months Ended
	Dec. 31, 2017GBP (£)shares
Long Term Incentive Plan | Nicandro Durante
Disclosure Of Transactions Between Related Parties [Line Items]
Award Date	Mar. 28, 2014
Exercised, shares | shares	62,123
Exercise date	Mar. 28, 2017
Price per share	£ 52.11
Aggregate gain	£ 3,237,230
Shares | shares	135,052
Price per share	£ 32.58
Face Value	£ 4,399,994
Long Term Incentive Plan | Ben Stevens
Disclosure Of Transactions Between Related Parties [Line Items]
Award Date	Mar. 28, 2014
Exercised, shares | shares	34,605
Exercise date	Apr. 3, 2017
Price per share	£ 52.92
Aggregate gain	£ 1,831,297
Shares | shares	75,230
Price per share	£ 32.58
Face Value	£ 2,450,993
Sharesave | Nicandro Durante
Disclosure Of Transactions Between Related Parties [Line Items]
Award Date	Mar. 28, 2012
Exercised, shares | shares	591
Exercise date	Oct. 16, 2017
Price per share	£ 48.49
Aggregate gain	£ 13,667
Shares | shares	591
Price per share	£ 25.36
Face Value	£ 14,988

Related Party Disclosures - 183

Related Party Disclosures - Summary of Aggregate Gains on LTIP Shares Exercised (Parenthetical) (Details) - Long Term Incentive Plan	12 Months Ended
	Dec. 31, 2017GBP (£)
Nicandro Durante
Disclosure Of Transactions Between Related Parties [Line Items]
Cost of options	£ 0
Ben Stevens
Disclosure Of Transactions Between Related Parties [Line Items]
Cost of options	£ 0

Contingent Liabilities and F184

Contingent Liabilities and Financial Commitments - General Litigation Overview - Additional Information (Details) - Group Companies Litigation $ in Billions	12 Months Ended
	Dec. 31, 2017USD ($)Case
Disclosure Of Commitments And Contingencies [Line Items]
Provisions Under State Settlement Agreements | $	$ 5.2
Initial number of cases	4,000
Number of cases after reduction	400

Contingent Liabilities and F185

Contingent Liabilities and Financial Commitments - US Litigation - Additional Information (Details) £ in Millions, $ in Billions	Jun. 12, 2015	Jul. 30, 2004	Mar. 31, 2003USD ($)	Dec. 31, 2017CaseClassAction	Dec. 31, 2016Case	Dec. 31, 2017Case	Oct. 31, 2017GBP (£)	Jul. 25, 2017	Sep. 22, 1999GBP (£)
Disclosure Of Commitments And Contingencies [Line Items]
Industry claim for disgorgement | £									£ 280,000
Engle Progeny Cases
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases tried				13
Turner v R. J. Reynolds Tobacco Co.
Disclosure Of Commitments And Contingencies [Line Items]
Lawsuit filing date				2000-02
Howard v Brown & Williamson Tobacco Corp
Disclosure Of Commitments And Contingencies [Line Items]
Lawsuit filing date				2000-02
Black v Brown & Williamson Tobacco Corp.
Disclosure Of Commitments And Contingencies [Line Items]
Lawsuit filing date				2000-11
Collora v R. J. Reynolds Tobacco Co.
Disclosure Of Commitments And Contingencies [Line Items]
Lawsuit filing year				2,000
Philip Morris Inc.
Disclosure Of Commitments And Contingencies [Line Items]
Amount of compensatory damages | $			$ 7.1
Amount of punitive damages | $			$ 3
SFNTC [Member]
Disclosure Of Commitments And Contingencies [Line Items]
Total number of putative class actions filed | ClassAction				16
Motion in part granted, date				Dec. 21, 2017
Plaintiffs motion for class certification due date				Jul. 19, 2018
Plaintiffs motion for class certification hearing date				Oct. 31, 2018
US
Disclosure Of Commitments And Contingencies [Line Items]
Category of case				4
Number of cases tried						111
Corrective communications through newspaper				4 months
Corrective communications through television				1 year
Estimated costs of corrective communications accrued | £							£ 20
Florida
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases, mistrials declared						22
Number of cases dismissed						6
Total number of cases affirmed in favour of plaintiffs						51
Number of cases continued						2
Florida | Engle Progeny Cases
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases tried						107
US
Disclosure Of Commitments And Contingencies [Line Items]
Total number of tobacco product liability case				4,594	4,925
Number of successor case				5,688
US | Engle Progeny Cases
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases scheduled for trial				126		126
US | Reynolds Defendants
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases scheduled for trial				41		41
US | Reynolds Defendants | Individual Smoking and Health Cases
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases scheduled for trial				9		9
US | Reynolds Defendants | Filter Cases
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases scheduled for trial				29		29
US | Reynolds Defendants | Other Non-smoking and Health Cases
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases scheduled for trial				3		3
Reynolds American Inc.
Disclosure Of Commitments And Contingencies [Line Items]
Percentage of interest in associate	42.00%	42.20%
Ownership interest acquired								57.80%
Reynolds Defendants | US
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases, mistrials declared						6
Total number of cases affirmed in favour of defendants						29
Reynolds Defendants | Florida
Disclosure Of Commitments And Contingencies [Line Items]
Total number of cases affirmed in favour of defendants						27
Reynolds Defendants | California
Disclosure Of Commitments And Contingencies [Line Items]
Total number of cases affirmed in favour of defendants						1
Reynolds Defendants | New Jersey
Disclosure Of Commitments And Contingencies [Line Items]
Total number of cases affirmed in favour of defendants						1

Contingent Liabilities and F186

Contingent Liabilities and Financial Commitments - Engle Class Action and Engle Progeny Cases - Additional Information (Details) $ in Millions	Feb. 17, 2017	Jan. 18, 2017USD ($)	Jul. 31, 2000USD ($)	Nov. 30, 1998CaseState	Dec. 31, 2017GBP (£)CasePlaintiff	Dec. 31, 2017USD ($)CasePlaintiff	Dec. 31, 2016Case	Dec. 31, 2015USD ($)	Dec. 31, 2017USD ($)Case	Dec. 31, 2012USD ($)State
Disclosure Of Commitments And Contingencies [Line Items]
Total number of cases | Case					99	99
Number of Cases Accruals for Attorneys Fees and Statutory Interest | Case					1	1
Number of states not deligently enforced qualifying statuses | State										6
Bottom of Range
Disclosure Of Commitments And Contingencies [Line Items]
Proceeds from credits										$ 1,100
Phase II
Disclosure Of Commitments And Contingencies [Line Items]
Amount of overall damages comprising punitive damages (approximately)			$ 145,000
Loss Contingency Amount of Overall Damages comprising Compensatory Damages			12.7
Engle Progeny Cases
Disclosure Of Commitments And Contingencies [Line Items]
Litigation settlement amount								$ 100	$ 173.5
Total number of cases | Case					2,569	2,569	2,822
Number of plaintiffs | Plaintiff					3,276	3,276
Number of additional cases | Case					9	9
Number of cases tried | Case					13	13
Number of paid judgments | Case									20
Payment for compensatory and punitive damages									$ 116.6
Amount paid for attorneys fees and statutory interest									$ 56.9
Engle Progeny Cases | Florida
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases tried | Case									107
Total bond cap						$ 200
RJ Reynolds Tobacco Company
Disclosure Of Commitments And Contingencies [Line Items]
Net operating profit penalty						99.4
Penalty due | £					£ 0
RJ Reynolds Tobacco Company | Florida
Disclosure Of Commitments And Contingencies [Line Items]
Net operating profit penalty						83.5
RJ Reynolds Tobacco Company | Phase II
Disclosure Of Commitments And Contingencies [Line Items]
Amount of overall damages comprising punitive damages (approximately)			36,300
RJ Reynolds Tobacco Company | Engle Progeny Cases
Disclosure Of Commitments And Contingencies [Line Items]
Litigation settlement amount								42.5
Brown and Williamson Holdings Inc | Phase II
Disclosure Of Commitments And Contingencies [Line Items]
Amount of overall damages comprising punitive damages (approximately)			17,600
Lorillard Inc | Phase II
Disclosure Of Commitments And Contingencies [Line Items]
Amount of overall damages comprising punitive damages (approximately)			$ 16,300
PM USA
Disclosure Of Commitments And Contingencies [Line Items]
Net operating profit penalty						$ 15.9
PM USA | Engle Progeny Cases
Disclosure Of Commitments And Contingencies [Line Items]
Litigation settlement amount								42.5
Lorillard Tobacco | Engle Progeny Cases
Disclosure Of Commitments And Contingencies [Line Items]
Litigation settlement amount								$ 15
R J Reynolds Tobacco Company Lorillard Tobacco And Brown And Williamson Holdings Inc | Master Settlement Agreement
Disclosure Of Commitments And Contingencies [Line Items]
Number of states representing Master Settlement Agreement | State				46
Number of previously settled cases brought forward | Case				4
ITG
Disclosure Of Commitments And Contingencies [Line Items]
State settlement agreement		$ 45
Future annual losses		$ 30
Lawsuit filing date	Feb. 17, 2017

Contingent Liabilities and F187

Contingent Liabilities and Financial Commitments - Summary of Engle Progeny Cases (Details) - Engle Progeny Cases	36 Months Ended
	Dec. 31, 2017USD ($)TrialAdverseJudgement
Disclosure Of Commitments And Contingencies [Line Items]
Total number of trials | Trial	107
Number of trials resulting in plaintiffs’ verdicts | Trial	49
Subsidiaries
Disclosure Of Commitments And Contingencies [Line Items]
Total damages awarded in final judgments against RJRT	$ 336,757,755
Loss Contingency Amount of Overall Damages comprising Compensatory Damages	159,170,680
Amount of overall damages comprising punitive damages (approximately)	$ 177,587,075
Number of adverse judgments appealed by RJRT | AdverseJudgement	39
Number of adverse judgments (not yet appealed), in which RJRT still has time to file an appeal | AdverseJudgement	7

Contingent Liabilities and F188

Contingent Liabilities and Financial Commitments - Summary of Engle Progeny Cases (Parenthetical) (Details) - Subsidiaries - Engle Progeny Cases	36 Months Ended
	Dec. 31, 2017Case
Disclosure of Finance Income and Costs [Line Items]
Total number of cases remain undecided	21
Number of pending to review	7
Total number of claims settled and taken to trial	9
Total number of cases affirmed in favour of plaintiffs	5
Total number of cases affirmed pending appeal	1
Number of cases affirmed in favour of plaintiffs but not yet paid	1
Number of cases amended which is affirmed in favour of plaintiffs but not yet paid	2
Number of cases subsequently dismissed	1
Number of cases for which damages paid to plaintiffs	3

Contingent Liabilities and F189

Contingent Liabilities and Financial Commitments - Summary of Individual Cases (Details) - Case	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Commitments And Contingencies [Line Items]
Total number of cases	99
Broin
Disclosure Of Commitments And Contingencies [Line Items]
Total number of cases	2,321	2,406
Change in Number Increase / (Decrease)	(85)
Individual Smoking and Health Cases
Disclosure Of Commitments And Contingencies [Line Items]
Total number of cases	99	132
Change in Number Increase / (Decrease)	(33)
West Virginia IPIC
Disclosure Of Commitments And Contingencies [Line Items]
Total number of cases	1	1
Change in Number Increase / (Decrease)	0
Engle Progeny Cases
Disclosure Of Commitments And Contingencies [Line Items]
Total number of cases	2,569	2,822
Change in Number Increase / (Decrease)	(253)
Number of plaintiffs	3,276	3,645
Change in Number Increase / (Decrease)	369
Filter Cases
Disclosure Of Commitments And Contingencies [Line Items]
Total number of cases	71	78
Change in Number Increase / (Decrease)	(7)

Contingent Liabilities and F190

Contingent Liabilities and Financial Commitments - Summary of Individual Cases (Parenthetical) (Details)	Dec. 31, 2017Case	Jan. 01, 1999Plaintiff	Oct. 31, 1997USD ($)Instalment	Nov. 30, 2017	Dec. 31, 2017USD ($)CasePlaintiff	Dec. 31, 2007USD ($)Plaintiff	Dec. 31, 2017Case
Filter Cases
Disclosure Of Commitments And Contingencies [Line Items]
Litigation settlement amount					$ 32,800,000
Number of cases for which damages paid to plaintiffs | Case					135
Filter Cases | Lorillard Tobacco
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases | Case	71
West Virginia | West Virginia IPIC
Disclosure Of Commitments And Contingencies [Line Items]
Number of cases | Plaintiff		1,200
Number of plaintiffs qualified to pursue narrow claim | Plaintiff						30
Litigation settlement amount per case						$ 7,000
Number of plaintiffs sought for damages | Plaintiff					41
West Virginia | Top of Range | West Virginia IPIC
Disclosure Of Commitments And Contingencies [Line Items]
Loss contingency, right to re-file plaintiffs, period				2 years
Florida | Broin v Philip Morris, Inc
Disclosure Of Commitments And Contingencies [Line Items]
Litigation settlement amount			$ 300,000,000
Number of annual installment for payment | Instalment			3
Litigation settlement, annual installment amount			$ 100,000,000
Number of plaintiffs sought for damages			49,000,000
Total number of trials | Case							0
Florida | Broin v Philip Morris, Inc | RJ Reynolds Tobacco Company
Disclosure Of Commitments And Contingencies [Line Items]
Loss contingency, right to re-file plaintiffs, period			86,000,000
Total number of trials | Case							0
Florida | Broin v Philip Morris, Inc | Lorillard Tobacco
Disclosure Of Commitments And Contingencies [Line Items]
Loss contingency, right to re-file plaintiffs, period			57,000,000
Total number of trials | Case							0
Florida | Broin v Philip Morris, Inc | Brown and Williamson Holdings Inc
Disclosure Of Commitments And Contingencies [Line Items]
Loss contingency, right to re-file plaintiffs, period			$ 31,000,000
Total number of trials | Case							0

Contingent Liabilities and F191

Contingent Liabilities and Financial Commitments - Operating Subsidiaries' Expenses and Payments under State Settlement Agreements (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Commitments And Contingencies [Line Items]
Settlement expenses	$ 2,856,000,000	$ 2,727,000,000	$ 2,403,000,000
Settlement cash payments	4,612,000,000	$ 3,042,000,000	$ 2,166,000,000
Bottom of Range | Within 12 months
Disclosure Of Commitments And Contingencies [Line Items]
Projected settlement expenses	3,000,000,000
Projected settlement cash payments	1,000,000,000
Bottom of Range | Greater Than One Year
Disclosure Of Commitments And Contingencies [Line Items]
Projected settlement expenses	3,000,000,000
Projected settlement cash payments	$ 3,000,000,000

Contingent Liabilities and F192

Contingent Liabilities and Financial Commitments - Product Liability Outside the United States - Additional Information (Details) £ in Millions, $ in Millions, ₩ in Billions, ₦ in Trillions

Dec. 31, 2016CAD ($)Case

Sep. 30, 2016CAD ($)

Jun. 30, 2016CAD ($)

Mar. 31, 2016CAD ($)

Dec. 31, 2015CAD ($)

Oct. 27, 2015CAD ($)

Jun. 26, 2015CAD ($)

May 27, 2015CAD ($)

Nov. 06, 2007GBP (£)

Nov. 06, 2007NGN (₦)

Feb. 21, 2005ClassActionCigarette

Apr. 30, 2014GBP (£)

Apr. 30, 2014KRW (₩)

Jun. 30, 2012ClassAction

Jul. 31, 2010ClassActionCigarette

Jun. 30, 2010ClassActionCigarette

Jun. 30, 2009ClassAction

Dec. 31, 2017CAD ($)ClassActionMarketCigarette

Disclosure Of Commitments And Contingencies [Line Items]

Case dismissed date

Aug. 23, 2017

Nigerian Court

Disclosure Of Commitments And Contingencies [Line Items]

Litigation damages sought value

£ 21,800

₦ 10.6

Lawsuit action commencement date

Feb. 24, 2017

Federal High Court

Disclosure Of Commitments And Contingencies [Line Items]

Lawsuit filing date

Nov. 6, 2007

Outside US

Disclosure Of Commitments And Contingencies [Line Items]

Number of markets outside US | Market

15

Angola

Disclosure Of Commitments And Contingencies [Line Items]

Lawsuit filing date

2016-11

Filing of response to claim

Dec. 5, 2016

Brazil

Disclosure Of Commitments And Contingencies [Line Items]

Number of class actions in lawsuit | ClassAction

2

Number of active individual cases on personal injury claims | Case

69

Brazil | Souza Cruz S.A.

Disclosure Of Commitments And Contingencies [Line Items]

Lawsuit filing date

2007-08

Case dismissed date

Oct. 4, 2011

Kano

Disclosure Of Commitments And Contingencies [Line Items]

Lawsuit action commencement date

May 9, 2007

Oyo

Disclosure Of Commitments And Contingencies [Line Items]

Lawsuit action commencement date

May 30, 2007

Oyo | Nigerian Court

Disclosure Of Commitments And Contingencies [Line Items]

Lawsuit action commencement date

Nov. 13, 2015

Lagos

Disclosure Of Commitments And Contingencies [Line Items]

Lawsuit action commencement date

Mar. 13, 2008

Ogun

Disclosure Of Commitments And Contingencies [Line Items]

Lawsuit action commencement date

Feb. 26, 2008

Gombe

Disclosure Of Commitments And Contingencies [Line Items]

Lawsuit action commencement date

Oct. 17, 2008

South Korea | National Health Insurance Service

Disclosure Of Commitments And Contingencies [Line Items]

Litigation damages sought value

£ 37.5

₩ 54

Canada

Disclosure Of Commitments And Contingencies [Line Items]

Number of class actions in lawsuit | ClassAction

11

Number of active individual cases on personal injury claims | Case

6

Canada | Federal Government

Disclosure Of Commitments And Contingencies [Line Items]

Litigation damages sought value

$ 5

Plaintiffs motion for class certification hearing date

Jun. 23, 2017

Canada | Growers Class Action

Disclosure Of Commitments And Contingencies [Line Items]

Litigation damages sought value

$ 50

Canada | Quebec Class Actions

Disclosure Of Commitments And Contingencies [Line Items]

Number of class actions in lawsuit | ClassAction

2

Litigation settlement amount

$ 15,600

Litigation settlement provisional execution amount

$ 1,131,000

Litigation settlement guarantee amount

5,000

Security amount to be posted by parties

$ 984

Payment of security amount by parties

$ 108

$ 108

$ 108

$ 108

$ 108

Claims brought on behalf of minimum number of cigarette consumed | Cigarette

12

15

Conditions in granted by superior court as certification

: There are currently two class actions in Quebec. On 21 February 2005, the Quebec Superior Court granted certification in two class actions against Imperial and two other domestic manufacturers. The Court certified two classes, with the class definitions being revised in the judgment rendered 27 May 2015. One class consists of residents of Quebec who (a) smoked before 20 November 1998 at least 12 packs a year of cigarettes manufactured by the Defendants; and (b) were diagnosed before 12 March 2012 with: lung cancer, or cancer (squamous cell carcinoma) of the throat, or emphysema. The group also includes the heirs of persons deceased after 20 November 1998 who meet the criteria described above. The second consists of residents of Quebec who, as of 30 September 1998, were addicted to nicotine contained in cigarettes and who in addition meet the following three criteria: (a) they started smoking before 30 September 1994 by smoking cigarettes manufactured by the Defendants; (b) between 1 September and 30 September 1998 they smoked on average at least 15 cigarettes manufactured by the Defendants on a daily basis; and (c) they still smoked an average of at least 15 cigarettes manufactured by the Defendants as of 21 February 2005, or until their death if it occurred before that date.

Canada | Quebec Class Actions | Imperial

Disclosure Of Commitments And Contingencies [Line Items]

Litigation settlement amount

$ 10,400

Litigation settlement provisional execution amount

$ 742

Security amount to be posted by parties

$ 758

Canada | Other Canadian Smoking and Health Class Actions

Disclosure Of Commitments And Contingencies [Line Items]

Number of class actions in lawsuit | ClassAction

4

7

British Columbia | Other Canadian Smoking and Health Class Actions

Disclosure Of Commitments And Contingencies [Line Items]

Number of class actions in lawsuit | ClassAction

2

2

Claims brought on behalf of minimum number of cigarette consumed | Cigarette

25,000

25,000

Ontario

Disclosure Of Commitments And Contingencies [Line Items]

Number of class actions in lawsuit | ClassAction

1

Italy

Disclosure Of Commitments And Contingencies [Line Items]

Number of class actions in lawsuit | ClassAction

1

Number of active individual cases on personal injury claims | Case

24

Chile

Disclosure Of Commitments And Contingencies [Line Items]

Number of active individual cases on personal injury claims | Case

7

Argentina

Disclosure Of Commitments And Contingencies [Line Items]

Number of active individual cases on personal injury claims | Case

7

Ireland

Disclosure Of Commitments And Contingencies [Line Items]

Number of active individual cases on personal injury claims | Case

2

Other Jurisdiction

Disclosure Of Commitments And Contingencies [Line Items]

Number of active individual cases on personal injury claims | Case

5

Contingent Liabilities and F193

Contingent Liabilities and Financial Commitments - Summary of Current Status of Litigation Cases (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017CAD ($)
British Columbia
Disclosure of Current Status of Litigation Cases [Line Items]
Act pursuant to which Claim was brought	Tobacco Damages and Health Care Costs Recovery Act 2000
Companies named as Defendants	Imperial Investments Industries RJR Companies Other former Rothmans Group companies All have been served.
Current stage	The defences of Imperial, the UK Companies and the RJR Companies have been filed, and document production and discoveries are ongoing. On 13 February 2017 the province delivered an expert report dated October 2016, quantifying its damages in the amount of CAD$118 billion. No trial date has been set. The federal government is seeking CAD$5 million jointly from all the defendants in respect of costs.
Damages sought by the provincial government	$ 118,000
Damages sought by the federal government	$ 5
New Brunswick
Disclosure of Current Status of Litigation Cases [Line Items]
Act pursuant to which Claim was brought	Tobacco Damages and Health Care Costs Recovery Act 2006
Companies named as Defendants	Imperial, the UK Companies and RJR Companies have all been named as defendants and served.
Current stage	The defences of Imperial, the UK Companies and the RJR Companies have been filed and document production and discoveries are substantially complete. Damages have been calculated by the province in the range of CAD$25-$60 billion from 1954 to 2060. Following a motion to set a trial date, the court has ordered that trial commence on 4 November 2019.
New Brunswick | Bottom of Range
Disclosure of Current Status of Litigation Cases [Line Items]
Damages sought by the provincial government	$ 25,000
New Brunswick | Top of Range
Disclosure of Current Status of Litigation Cases [Line Items]
Damages sought by the provincial government	$ 60,000
Ontario
Disclosure of Current Status of Litigation Cases [Line Items]
Act pursuant to which Claim was brought	Tobacco Damages and Health Care Costs Recovery Act 2009
Companies named as Defendants	Imperial the UK Companies and RJR Companies have all been named as defendants and served.
Current stage	This case is at an early case management stage. Imperial, the UK Companies and the RJR Companies have filed defences. The parties completed significant document production in summer of 2017 and discoveries are expected to commence in 2018. The province has stated its claim to be worth CAD$50 billion. No trial date has been set.
Damages sought by the provincial government	$ 50,000
Newfoundland and Labrador
Disclosure of Current Status of Litigation Cases [Line Items]
Act pursuant to which Claim was brought	Tobacco Health Care Costs Recovery Act 2006
Companies named as Defendants	Imperial, the UK Companies and the RJR Companies have all been named as defendants and served.
Current stage	The case is under case management and Imperial, the UK Companies and the RJR Companies have filed defences. Damages have not been quantified by the province. No trial date has been set.
Saskatchewan
Disclosure of Current Status of Litigation Cases [Line Items]
Act pursuant to which Claim was brought	Tobacco Damages and Health Care Costs Recovery Act 2012
Companies named as Defendants	Imperial, the UK Companies and the RJR Companies have all been named as defendants and served.
Current stage	This case is at an early case management stage. Defences were filed by Imperial, the UK Companies and the RJR Companies and the matter will remain in abeyance for the time being. Damages have not been quantified by the province. No trial date has been set.
Manitoba
Disclosure of Current Status of Litigation Cases [Line Items]
Act pursuant to which Claim was brought	Tobacco Damages Health Care Costs Recovery Act 2006
Companies named as Defendants	Imperial, the UK Companies and RJR Companies have all been named as defendants and served.
Current stage	This case is at an early case management stage. Defences were filed by Imperial, the UK Companies and the RJR Companies and document production is underway. Damages have not been quantified by the province. No trial date has been set.
Alberta
Disclosure of Current Status of Litigation Cases [Line Items]
Act pursuant to which Claim was brought	Crown’s Right of Recovery Act 2009
Companies named as Defendants	Imperial, the UK Companies and RJR Companies have all been named as defendants and served.
Current stage	This case is at an early case management stage and Imperial, the UK Companies and the RJR Companies have filed defences. The province has stated its claim to be worth CAD$10 billion. No trial date has been set.
Damages sought by the provincial government	$ 10,000
Quebec
Disclosure of Current Status of Litigation Cases [Line Items]
Act pursuant to which Claim was brought	Tobacco Related Damages and Health Care Costs Recovery Act 2005
Companies named as Defendants	Imperial, Investments, Industries, the RJR Companies and Carreras Rothmans Limited have been named as defendants and served.
Current stage	The case is at an early case management stage. Defences of Imperial, the UK Companies and the RJR Companies have been filed. Motions over admissibility of documents and damages discovery have been filed but not heard. The province is seeking CAD$60 billion. No trial date has been set.
Damages sought by the provincial government	$ 60,000
Prince Edward Island
Disclosure of Current Status of Litigation Cases [Line Items]
Act pursuant to which Claim was brought	Tobacco Damages and Health Care Costs Recovery Act 2009
Companies named as Defendants	Imperial, the UK Companies and RJR Companies have all been named as defendants and served.
Current stage	This case is at an early case management stage. Defences were filed by Imperial, the UK Companies and the RJR Companies and the next step will be document production, which the parties have deferred for the time being. Damages have not been quantified by the province. No trial date has been set.
Nova Scotia
Disclosure of Current Status of Litigation Cases [Line Items]
Act pursuant to which Claim was brought	Tobacco Health Care Costs Recovery Act 2005
Companies named as Defendants	Imperial, the UK Companies and RJR Companies have all been named as defendants and served.
Current stage	This case is at an early case management stage. Defences were filed by Imperial, the UK Companies and the RJR Companies and the next step will be document production which the parties have deferred for the time being. Damages have not been quantified by the province. No trial date has been set.

Contingent Liabilities and F194

Contingent Liabilities and Financial Commitments - Non-Tobacco Related Litigation - Additional Information (Details) € in Millions, £ in Millions

Nov. 29, 2017Case

Oct. 11, 2017

May 09, 2017PatentPetition

Mar. 01, 2017Patent

Feb. 10, 2017USD ($)

Jun. 29, 2016Case

Jun. 22, 2016Patent

May 03, 2016Patent

Apr. 04, 2016Patent

Jun. 12, 2015

Jul. 15, 2014

Jul. 30, 2004

Jul. 31, 2016EUR (€)

Sep. 30, 2014USD ($)

May 31, 2012

Dec. 31, 2015USD ($)

Dec. 31, 2017GBP (£)

Dec. 31, 2016GBP (£)

Dec. 31, 2014USD ($)

Dec. 31, 2009EUR (€)

Dec. 31, 2008EUR (€)

Jul. 25, 2017

Feb. 17, 2016USD ($)

Disclosure Of Commitments And Contingencies [Line Items]

Case dismissed date

Aug. 23, 2017

Percentage of environmental clean-up costs demanded

60.00%

Percentage of environmental clean-up costs commitment allocated to later period

50.00%

Payments for funding agreement | £

£ 18

£ 6

Environmental clean-up costs outstanding | £

159

Provision for environmental clean-up costs | £

£ 163

Windward Dividend Claim

Disclosure Of Commitments And Contingencies [Line Items]

Dividend paid to Sequana | €

€ 135

€ 135

€ 443

Fox River

Disclosure Of Commitments And Contingencies [Line Items]

Percentage of environmental clean-up costs obligation commitment with NCR

60.00%

Percentage of environmental clean-up costs commitment with NCR

50.00%

Fox River | Windward

Disclosure Of Commitments And Contingencies [Line Items]

Environmental clean-up costs paid by related party

$ 10,000,000

Fox River | Appvion

Disclosure Of Commitments And Contingencies [Line Items]

Environmental clean-up costs paid by related party

25,000,000

Kalamazoo River | Operable Unit Five

Disclosure Of Commitments And Contingencies [Line Items]

Cost of performing future remediation

$ 670,000,000

Kalamazoo River | Appvion

Disclosure Of Commitments And Contingencies [Line Items]

Environmental clean-up costs paid by related party

$ 25,000,000

Fox River

Disclosure Of Commitments And Contingencies [Line Items]

Total estimated clean-up costs

$ 825,000,000

Case dismissed date

Oct. 11, 2017

Bottom of Range | Fox River

Disclosure Of Commitments And Contingencies [Line Items]

Total NRDs

0

Top of Range | Fox River

Disclosure Of Commitments And Contingencies [Line Items]

Total NRDs

$ 246,000,000

Fontem Patent Litigation

Disclosure Of Commitments And Contingencies [Line Items]

Number of patents | Patent

4

Number of additional patents | Patent

8

1

2

Number of cases | Case

3

Number of petitions | Petition

17

Number of petitions granted | Petition

4

Number of petitions denied | Petition

13

Number of asserted patents | Patent

15

Number of asserted patents for review | Patent

7

Windward | Windward Dividend Claim

Disclosure Of Commitments And Contingencies [Line Items]

Litigation settlement amount

$ 185,000,000

Initial litigation settlement amount awarded to Windward

$ 138,400,000

NCR And Appvion | Kalamazoo River | Funding

Disclosure Of Commitments And Contingencies [Line Items]

Recovery amount for Future Sites

$ 25,000,000

NCR | Kalamazoo River

Disclosure Of Commitments And Contingencies [Line Items]

Estimated recovery percentage by related party

60.00%

Reynolds American Inc.

Disclosure Of Commitments And Contingencies [Line Items]

Percentage of interest in associate

42.00%

42.20%

Ownership interest acquired

57.80%

Number of dissenting stockholders | Case

20

Non-Tobacco Related Litigation | Reynolds American Inc.

Disclosure Of Commitments And Contingencies [Line Items]

Attorney fees and costs

$ 415,000

Non-Tobacco Related Litigation | Reynolds American Inc. | Lorillard Inc

Disclosure Of Commitments And Contingencies [Line Items]

Definitive merger agreement announced date

Jul. 15, 2014

Percentage of interest in associate

42.20%

Contingent Liabilities and F195

Contingent Liabilities and Financial Commitments - Closed Litigation Matters Explanatory (Details)	12 Months Ended
	Dec. 31, 2017
Ratcliff | US
Disclosure of Current Status of Litigation Cases [Line Items]
Matter	Ratcliff
Jurisdiction	US (Seattle, Washington)
Companies named as Defendants	Company
Description	Product liability asbestos matter
Disposition	Dismissed as to the Company effective 30 May 2017
Khosravi | United Kingdom
Disclosure of Current Status of Litigation Cases [Line Items]
Matter	Khosravi
Jurisdiction	England
Companies named as Defendants	Company, B.A.T (U.K and Export), B.A.T. Pars Company
Description	Alleged wrongdoing by former distributor
Disposition	Claim dismissed at first instance and permission to appeal refused.
Georgian Competition Claim | Georgia
Disclosure of Current Status of Litigation Cases [Line Items]
Matter	Georgian Competition Claim
Jurisdiction	Georgia
Companies named as Defendants	British American Tobacco Georgia
Description	Alleged breach of local tobacco control and competition laws
Disposition	Court of Appeal overturned the negative judgment and permission to appeal to the Supreme Court was refused.

Contingent Liabilities and F196

Contingent Liabilities and Financial Commitments - Other contingencies - Additional Information (Details) £ in Millions	Jun. 12, 2015Cigarette	Dec. 31, 2017GBP (£)ClassAction
Disclosure Of Commitments And Contingencies [Line Items]
Purchase agreement Date		Mar. 9, 1999
Purchase agreement Amendment Date		May 11, 1999
Loews
Disclosure Of Commitments And Contingencies [Line Items]
Loss contingency number of cases affirmed in favour of defendants | ClassAction		3
Winston Kool Salem Or Maverick
Disclosure Of Commitments And Contingencies [Line Items]
Purchase agreement Date		Jun. 12, 2015
Cigarette brand subjected to indemnity | Cigarette	1
Investments Indemnity
Disclosure Of Commitments And Contingencies [Line Items]
Litigation damages sought value | £		£ 40

Contingent Liabilities and F197

Contingent Liabilities and Financial Commitments - Tax Disputes - Additional Information (Details) € in Millions, £ in Millions, R$ in Millions, R in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2017GBP (£)	Dec. 31, 2017EUR (€)	Dec. 31, 2017BRL (R$)	Dec. 31, 2017ZAR (R)
Disclosure Of Commitments And Contingencies [Line Items]
Reassessment, statute of limitation period	5 years
Brazil | Tax Reassessment | Souza Cruz
Disclosure Of Commitments And Contingencies [Line Items]
Tax reassessed amount		£ 320		R$ 1436
South Africa | Tax Reassessment | British American Tobacco South Africa
Disclosure Of Commitments And Contingencies [Line Items]
Tax reassessed amount		120			R 2,010
Netherlands | Tax Reassessment
Disclosure Of Commitments And Contingencies [Line Items]
Tax reassessed amount		177	€ 199
Additional tax reassessment amount		57	€ 64
Bangladesh | Tax Reassessment
Disclosure Of Commitments And Contingencies [Line Items]
Tax reassessed amount		£ 160

Contingent Liabilities and F198

Contingent Liabilities and Financial Commitments - Schedule of Total Future Minimum Lease Payments under Non-cancellable Operating Leases (Details) - GBP (£)	Dec. 31, 2017	Dec. 31, 2016
Property
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Total future minimum lease payments	£ 375,000,000	£ 199,000,000
Plant and Equipment
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Total future minimum lease payments	70,000,000	41,000,000
Within 12 months | Property
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Total future minimum lease payments	75,000,000	45,000,000
Within 12 months | Plant and Equipment
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Total future minimum lease payments	32,000,000	18,000,000
Between One and Five Years | Property
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Total future minimum lease payments	183,000,000	104,000,000
Between One and Five Years | Plant and Equipment
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Total future minimum lease payments	38,000,000	23,000,000
Beyond 5 Years | Property
Disclosure Of Finance Lease And Operating Lease By Lessee [Line Items]
Total future minimum lease payments	£ 117,000,000	£ 50,000,000

Contingent Liabilities and F199

Contingent Liabilities and Financial Commitments - Performance Guarantees - Additional Information (Details) - Croatia - Increase (Decrease) due to Corrections of Prior Period Errors - GBP (£)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Commitments And Contingencies [Line Items]
Maximum exposure under guarantees	£ 46,000,000	£ 42,000,000
Bottom of Range
Disclosure Of Commitments And Contingencies [Line Items]
Performance guarantees period under acquisition	5 years

Interests in Subsidiaries - Add

Interests in Subsidiaries - Additional Information (Details) - shares shares in Millions	1 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2011
Disclosure of Significant Investments in Subsidiaries [Line Items]
Ownership held in non-controlling interest			50.00%	50.00%
Bentoel
Disclosure of Significant Investments in Subsidiaries [Line Items]
Ownership held in non-controlling interest	92.00%	92.00%	92.00%	85.00%
Shares sold in non-controlling interest					984
Percentage of share sold in non-controlling interest					14.00%
Total return swap entered, shares	1,684	971
Percentage of total return swap of issued capital		7.00%
Effective interest recognise of net assets		99.00%
Tisak d.d.
Disclosure of Significant Investments in Subsidiaries [Line Items]
Investment percentage		42.00%

Interests in Subsidiaries - Sum

Interests in Subsidiaries - Summary of Financial Information of Subsidiaries with Material Non-controlling Interests (Details) - GBP (£) £ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summarised Financial Information of Subsidiaries with Material Non-controlling Interests [Line Items]
Revenue	[1]	£ 20,292	£ 14,751	£ 13,104
Profit for the year		37,704	4,839	4,522
– Attributable to non-controlling interests		171	191	232
Total comprehensive income		34,573	6,426	3,936
– Attributable to non-controlling interests		167	246	179
Summary net assets:
Non-current assets for operations		127,072	27,414
Current assets		13,966	12,359
Non-current liabilities		(64,468)	(19,511)
Current liabilities		(15,544)	(11,856)
Total equity		61,026	8,406	5,032	£ 5,814
Net cash generated from operating activities		5,347	4,610	4,720
Net cash generated in investing activities		(18,544)	(640)	(3,991)
Net cash used in financing activities		14,759	(4,229)	(219)
Differences on exchange		(391)	180	(272)
Increase/(decrease) in net cash and cash equivalents in the year		1,171	(79)	238
Net cash and cash equivalents at 1 January		1,651	1,730	1,492
Net cash and cash equivalents at 31 December		2,822	1,651	1,730
Subsidiaries with Material Non-controlling Interests
Summarised Financial Information of Subsidiaries with Material Non-controlling Interests [Line Items]
Revenue		253	334	422
Profit for the year		89	129	152
– Attributable to non-controlling interests		44	64	76
Total comprehensive income		87	146	136
– Attributable to non-controlling interests		43	73	68
Dividends paid to non-controlling interests		(64)	(59)	(75)
Summary net assets:
Non-current assets for operations		18	31	43
Current assets		101	103	74
Non-current liabilities		(5)	(4)	(8)
Current liabilities		(120)	(94)	(99)
Total equity		(6)	36	10
– Attributable to non-controlling interests		(3)	18	5
Net cash generated from operating activities		67	108	164
Net cash generated in investing activities		14	45	1
Net cash used in financing activities		(86)	(151)	(161)
Differences on exchange		(1)	1
Increase/(decrease) in net cash and cash equivalents in the year		(6)	3	4
Net cash and cash equivalents at 1 January		8	5	1
Net cash and cash equivalents at 31 December		£ 2	£ 8	£ 5
[1]	Revenue is net of duty, excise and other taxes of £37,780 million, £32,136 million and £27,896 million for the years ended 31 December 2017, 2016 and 2015, respectively.

Condensed consolidating fina202

Condensed consolidating financial information - Additional Information (Details) $ in Millions	Dec. 31, 2017USD ($)
Reynolds American Inc.
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Unsecured notes	$ 12,200
Lorillard Inc
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Unsecured notes	$ 231

Condensed consolidating fina203

Condensed consolidating financial information - Condensed Consolidated Income Statement (Details) - GBP (£) £ in Millions		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Revenue	[1]	£ 20,292	£ 14,751	£ 13,104
Raw materials and consumables used		(4,520)	(3,777)	(3,217)
Changes in inventories of finished goods and work in progress		(513)	44	184
Employee benefit costs		(2,679)	(2,274)	(2,039)
Depreciation, amortisation and impairment costs		(902)	(607)	(428)
Other operating income		144	176	225
Other operating expenses		(5,346)	(3,658)	(3,272)
Profit from operations		6,476	4,655	4,557
Net finance (costs)/income		(1,094)	(637)	62
Share of post-tax results of associates and joint ventures		24,209	2,227	1,236
Profit before taxation		29,591	6,245	5,855
Taxation on ordinary activities		8,113	(1,406)	(1,333)
Profit for the year		37,704	4,839	4,522
Attributable to:
Owners of the parent		37,533	4,648	4,290
Non-controlling interests		171	191	232
BAT p.l.c., Parent guarantor
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Employee benefit costs		(8)	(7)	(2)
Other operating expenses		(101)	(75)	(66)
Profit from operations		(109)	(82)	(68)
Net finance (costs)/income		3	(54)	(36)
Profit before taxation		(106)	(136)	(104)
Equity income from subsidiaries		37,704	4,839	4,522
Profit for the year		37,598	4,703	4,418
Attributable to:
Owners of the parent		37,598	4,703	4,418
RJRT, Issuer (LB)
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Revenue		3,517
Raw materials and consumables used		(346)
Changes in inventories of finished goods and work in progress		(7)
Employee benefit costs		(117)
Depreciation, amortisation and impairment costs		(28)
Other operating income		7
Other operating expenses		(2,889)
Profit from operations		137
Net finance (costs)/income		11
Profit before taxation		148
Taxation on ordinary activities		(255)
Equity income from subsidiaries		3,870
Profit for the year		3,763
Attributable to:
Owners of the parent		3,763
RAI, Issuer (RB), Subsidiary guarantor (LB)
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Employee benefit costs		(35)
Other operating income		34
Other operating expenses		(6)
Profit from operations		(7)
Net finance (costs)/income		(190)
Profit before taxation		(197)
Taxation on ordinary activities		61
Equity income from subsidiaries		4,259
Profit for the year		4,123
Attributable to:
Owners of the parent		4,123
RJRTH, Subsidiary guarantor (LB & RB)
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Employee benefit costs		(2)
Profit from operations		(2)
Net finance (costs)/income		9
Profit before taxation		7
Taxation on ordinary activities		(3)
Equity income from subsidiaries		3,893
Profit for the year		3,897
Attributable to:
Owners of the parent		3,897
All other companies, Non-guarantor subsidiaries
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Revenue		16,886	14,751	13,104
Raw materials and consumables used		(4,286)	(3,777)	(3,217)
Changes in inventories of finished goods and work in progress		(507)	44	184
Employee benefit costs		(2,525)	(2,274)	(2,039)
Depreciation, amortisation and impairment costs		(874)	(607)	(428)
Other operating income		1,859	176	225
Other operating expenses		(4,207)	(3,658)	(3,272)
Profit from operations		6,346	4,655	4,557
Net finance (costs)/income		(916)	(637)	62
Share of post-tax results of associates and joint ventures		24,209	2,227	1,236
Profit before taxation		29,639	6,245	5,855
Taxation on ordinary activities		8,310	(1,406)	(1,333)
Profit for the year		37,949	4,839	4,522
Attributable to:
Owners of the parent		37,778	4,648	4,290
Non-controlling interests		171	191	232
Eliminations
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Revenue		(111)
Raw materials and consumables used		112
Changes in inventories of finished goods and work in progress		1
Employee benefit costs		8	7	2
Other operating income		(1,756)
Other operating expenses		1,857	75	66
Profit from operations		111	82	68
Net finance (costs)/income		(11)	54	36
Profit before taxation		100	136	104
Equity income from subsidiaries		(49,726)	(4,839)	(4,522)
Profit for the year		(49,626)	(4,703)	(4,418)
Attributable to:
Owners of the parent		£ (49,626)	£ (4,703)	£ (4,418)
[1]	Revenue is net of duty, excise and other taxes of £37,780 million, £32,136 million and £27,896 million for the years ended 31 December 2017, 2016 and 2015, respectively.

Condensed consolidating fina204

Condensed consolidating financial information - Condensed Consolidated Statement of Comprehensive Income (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Profit for the year	£ 37,704	£ 4,839	£ 4,522
Other comprehensive (expense)/income
Items that may be reclassified subsequently to profit or loss:	(3,812)	1,760	(849)
Differences on exchange	(4,010)	2,695	(670)
Cash flow hedges	(171)	55	(129)
Available-for-sale investments	(22)	(10)	5
Net investment hedges	357	(961)	(76)
Tax on items that may be reclassified	34	(19)	21
Items that will not be reclassified subsequently to profit or loss:	681	(173)	263
Retirement benefit schemes	852	(209)	286
Tax on items that will not be reclassified	(171)	36	(23)
Total other comprehensive (expense)/income for the year, net of tax	(3,131)	1,587	(586)
Total comprehensive income for the year, net of tax	34,573	6,426	3,936
Attributable to:
Owners of the parent	34,406	6,180	3,757
Non-controlling interests	167	246	179
BAT p.l.c., Parent guarantor
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Profit for the year	37,598	4,703	4,418
Other comprehensive (expense)/income
Total comprehensive income for the year, net of tax	34,467	6,290	3,832
Attributable to:
Owners of the parent	34,467	6,290	3,832
RJRT, Issuer (LB)
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Profit for the year	3,763
Other comprehensive (expense)/income
Total comprehensive income for the year, net of tax	3,763
Attributable to:
Owners of the parent	3,763
RAI, Issuer (RB), Subsidiary guarantor (LB)
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Profit for the year	4,123
Other comprehensive (expense)/income
Total comprehensive income for the year, net of tax	4,123
Attributable to:
Owners of the parent	4,123
RJRTH, Subsidiary guarantor (LB & RB)
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Profit for the year	3,897
Other comprehensive (expense)/income
Total comprehensive income for the year, net of tax	3,897
Attributable to:
Owners of the parent	3,897
All other companies, Non-guarantor subsidiaries
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Profit for the year	37,949	4,839	4,522
Other comprehensive (expense)/income
Items that may be reclassified subsequently to profit or loss:	(3,812)	1,760	(849)
Differences on exchange	(4,010)	2,695	(670)
Cash flow hedges	(171)	55	(129)
Available-for-sale investments	(22)	(10)	5
Net investment hedges	357	(961)	(76)
Tax on items that may be reclassified	34	(19)	21
Items that will not be reclassified subsequently to profit or loss:	681	(173)	263
Retirement benefit schemes	852	(209)	286
Tax on items that will not be reclassified	(171)	36	(23)
Total other comprehensive (expense)/income for the year, net of tax	(3,131)	1,587	(586)
Total comprehensive income for the year, net of tax	34,818	6,426	3,936
Attributable to:
Owners of the parent	34,651	6,180	3,757
Non-controlling interests	167	246	179
Eliminations
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Profit for the year	(49,626)	(4,703)	(4,418)
Other comprehensive (expense)/income
Total comprehensive income for the year, net of tax	(46,495)	(6,290)	(3,832)
Attributable to:
Owners of the parent	(46,495)	(6,290)	(3,832)
Other Reserves
Other comprehensive (expense)/income
Tax on items that may be reclassified	34	(19)	21
Total other comprehensive (expense)/income for the year, net of tax	(3,808)	1,707	(796)
Total comprehensive income for the year, net of tax	(3,808)	1,707	(796)
Other Reserves | BAT p.l.c., Parent guarantor
Other comprehensive (expense)/income
Share of subsidiaries OCI	681	(173)	263
Other Reserves | Eliminations
Other comprehensive (expense)/income
Share of subsidiaries OCI	(681)	173	(263)
Retained Earnings
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Profit for the year	37,533	4,648	4,290
Other comprehensive (expense)/income
Tax on items that will not be reclassified	(171)	36	(23)
Total other comprehensive (expense)/income for the year, net of tax	681	(175)	263
Total comprehensive income for the year, net of tax	38,214	4,473	4,553
Retained Earnings | BAT p.l.c., Parent guarantor
Other comprehensive (expense)/income
Share of subsidiaries OCI	(3,812)	1,760	(849)
Retained Earnings | Eliminations
Other comprehensive (expense)/income
Share of subsidiaries OCI	£ 3,812	£ (1,760)	£ 849

Condensed consolidating fina205

Condensed consolidating financial information - Condensed Consolidated Balance Sheet (Details) - GBP (£) £ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Intangible assets	£ 117,785	£ 12,117	£ 10,436
Property, plant and equipment	4,882	3,661	3,021
Investments in associates and joint ventures	1,577	9,507
Retirement benefit assets	1,123	455
Deferred tax assets	317	436
Trade and other receivables	756	599
Available-for-sale investments	42	43
Derivative financial instruments	590	596
Total non-current assets	127,072	27,414
Inventories	5,864	5,793
Income tax receivable	460	69
Trade and other receivables	4,053	3,884
Available-for-sale investments	65	15
Derivative financial instruments	228	375
Cash and cash equivalents	3,291	2,204
Total current assets other than non-current assets classified as held for sale	13,961	12,340
Assets classified as held-for-sale	5	19
Total current assets	13,966	12,359
Total assets	141,038	39,773
Equity - Capital and reserves
Share capital	614	507
Share premium, capital redemption and merger reserves	26,602	3,931
Other reserves	(3,395)	413
Retained earnings	36,983	3,331
Owners of the parent	60,804	8,182
Non-controlling interests	222	224
Total equity	61,026	8,406	£ 5,032	£ 5,814
Liabilities
Borrowings	44,027	16,488
Retirement benefit liabilities	1,821	826
Deferred tax liabilities	17,129	652
Other provisions for liabilities	354	386
Trade and other payables	1,058	1,040
Derivative financial instruments	79	119
Total non-current liabilities	64,468	19,511
Borrowings	5,423	3,007
Income tax payable	720	558
Other provisions for liabilities	399	407
Trade and other payables	8,847	7,335
Derivative financial instruments	155	549
Total current liabilities	15,544	11,856
Total equity and liabilities	141,038	39,773
BAT p.l.c., Parent guarantor
Assets
Investments in subsidiaries	58,300	7,667
Total non-current assets	58,300	7,667
Trade and other receivables	7,365	7,289
Cash and cash equivalents	5	5
Total current assets other than non-current assets classified as held for sale	7,370	7,294
Total current assets	7,370	7,294
Total assets	65,670	14,961
Equity - Capital and reserves
Share capital	614	507
Share premium, capital redemption and merger reserves	22,939	268
Other reserves	805	(362)
Retained earnings	36,556	10,829
Owners of the parent	60,914	11,242
Total equity	60,914	11,242
Liabilities
Borrowings	1,571
Trade and other payables	8	8
Total non-current liabilities	1,579	8
Borrowings	2,058	3,621
Trade and other payables	1,119	90
Total current liabilities	3,177	3,711
Total equity and liabilities	65,670	14,961
RJRT, Issuer (LB)
Assets
Intangible assets	2,780
Property, plant and equipment	677
Investments in subsidiaries	17,217
Deferred tax assets	306
Trade and other receivables	23
Total non-current assets	21,003
Inventories	721
Cash and cash equivalents	2
Total current assets other than non-current assets classified as held for sale	723
Total current assets	723
Total assets	21,726
Equity - Capital and reserves
Share capital	14,070
Other reserves	(25)
Retained earnings	5,170
Owners of the parent	19,215
Total equity	19,215
Liabilities
Borrowings	186
Retirement benefit liabilities	926
Other provisions for liabilities	1
Trade and other payables	18
Total non-current liabilities	1,131
Borrowings	40
Income tax payable	23
Other provisions for liabilities	4
Trade and other payables	1,313
Total current liabilities	1,380
Total equity and liabilities	21,726
RAI, Issuer (RB), Subsidiary guarantor (LB)
Assets
Property, plant and equipment	2
Investments in subsidiaries	29,165
Deferred tax assets	16
Trade and other receivables	860
Total non-current assets	30,043
Income tax receivable	339
Trade and other receivables	571
Cash and cash equivalents	2
Total current assets other than non-current assets classified as held for sale	912
Total current assets	912
Total assets	30,955
Equity - Capital and reserves
Share capital	13,509
Other reserves	(24)
Retained earnings	6,276
Owners of the parent	19,761
Total equity	19,761
Liabilities
Borrowings	8,212
Retirement benefit liabilities	42
Trade and other payables	102
Total non-current liabilities	8,356
Borrowings	1,009
Trade and other payables	1,829
Total current liabilities	2,838
Total equity and liabilities	30,955
RJRTH, Subsidiary guarantor (LB & RB)
Assets
Intangible assets	7,284
Investments in subsidiaries	18,972
Deferred tax assets	4
Trade and other receivables	42
Total non-current assets	26,302
Trade and other receivables	9
Total current assets other than non-current assets classified as held for sale	9
Total current assets	9
Total assets	26,311
Equity - Capital and reserves
Share capital	21,260
Other reserves	(24)
Retained earnings	5,055
Owners of the parent	26,291
Total equity	26,291
Liabilities
Retirement benefit liabilities	20
Total non-current liabilities	20
Total equity and liabilities	26,311
All other companies, Non-guarantor subsidiaries
Assets
Intangible assets	107,722	12,117
Property, plant and equipment	4,204	3,661
Investments in associates and joint ventures	1,577	9,507
Retirement benefit assets	1,123	455
Deferred tax assets	(9)	436
Trade and other receivables	826	599
Available-for-sale investments	42	43
Derivative financial instruments	590	596
Total non-current assets	116,075	27,414
Inventories	5,144	5,793
Income tax receivable	121	69
Trade and other receivables	5,725	3,884
Available-for-sale investments	65	15
Derivative financial instruments	228	375
Cash and cash equivalents	3,287	2,204
Total current assets other than non-current assets classified as held for sale	14,570	12,340
Assets classified as held-for-sale	5	19
Total current assets	14,575	12,359
Total assets	130,650	39,773
Equity - Capital and reserves
Share capital	1,297	507
Share premium, capital redemption and merger reserves	26,602	3,931
Other reserves	(3,395)	413
Retained earnings	37,409	3,351
Owners of the parent	61,913	8,202
Non-controlling interests	222	224
Total equity	62,135	8,426
Liabilities
Borrowings	35,629	16,488
Retirement benefit liabilities	833	826
Deferred tax liabilities	17,129	652
Other provisions for liabilities	353	386
Trade and other payables	1,933	1,040
Derivative financial instruments	79	119
Total non-current liabilities	55,956	19,511
Borrowings	4,374	3,007
Income tax payable	698	558
Other provisions for liabilities	395	407
Trade and other payables	6,937	7,315
Derivative financial instruments	155	549
Total current liabilities	12,559	11,836
Total equity and liabilities	130,650	39,773
Eliminations
Assets
Intangible assets	(1)
Property, plant and equipment	(1)
Investments in subsidiaries	(123,654)	(7,667)
Trade and other receivables	(995)
Total non-current assets	(124,651)	(7,667)
Inventories	(1)
Trade and other receivables	(9,617)	(7,289)
Cash and cash equivalents	(5)	(5)
Total current assets other than non-current assets classified as held for sale	(9,623)	(7,294)
Total current assets	(9,623)	(7,294)
Total assets	(134,274)	(14,961)
Equity - Capital and reserves
Share capital	(50,136)	(507)
Share premium, capital redemption and merger reserves	(22,939)	(268)
Other reserves	(732)	362
Retained earnings	(53,483)	(10,849)
Owners of the parent	(127,290)	(11,262)
Total equity	(127,290)	(11,262)
Liabilities
Borrowings	(1,571)
Trade and other payables	(1,003)	(8)
Total non-current liabilities	(2,574)	(8)
Borrowings	(2,058)	(3,621)
Income tax payable	(1)
Trade and other payables	(2,351)	(70)
Total current liabilities	(4,410)	(3,691)
Total equity and liabilities	£ (134,274)	£ (14,961)

Condensed consolidating fina206

Condensed consolidating financial information - Condensed Consolidated Cash Flow Statement (Details) - GBP (£) £ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Net cash (used in)/generated from operating activities	£ 5,347	£ 4,610	£ 4,720
Net cash (used in)/generated from investing activities	(18,544)	(640)	(3,991)
Net cash (used in)/generated from financing activities	14,759	(4,229)	(219)
Net cash flows (used in)/generated from operating, investing and financing activities	1,562	(259)	510
Differences on exchange	(391)	180	(272)
Increase/(decrease) in net cash and cash equivalents in the year	1,171	(79)	238
Net cash and cash equivalents at 1 January	1,651	1,730	1,492
Net cash and cash equivalents at 31 December	2,822	1,651	1,730
BAT p.l.c., Parent guarantor
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Net cash (used in)/generated from operating activities	(12)	(23)	61
Net cash (used in)/generated from investing activities	2	24	34
Net cash (used in)/generated from financing activities	10		(95)
Net cash flows (used in)/generated from operating, investing and financing activities		1
Differences on exchange		1	(1)
Increase/(decrease) in net cash and cash equivalents in the year		2	(1)
Net cash and cash equivalents at 1 January	5	3	4
Net cash and cash equivalents at 31 December	5	5	3
RJRT, Issuer (LB)
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Net cash (used in)/generated from operating activities	(1,860)
Net cash (used in)/generated from investing activities	(88)
Net cash (used in)/generated from financing activities	1,950
Net cash flows (used in)/generated from operating, investing and financing activities	2
Increase/(decrease) in net cash and cash equivalents in the year	2
Net cash and cash equivalents at 31 December	2
RAI, Issuer (RB), Subsidiary guarantor (LB)
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Net cash (used in)/generated from operating activities	(270)
Net cash (used in)/generated from investing activities	1,116
Net cash (used in)/generated from financing activities	(844)
Net cash flows (used in)/generated from operating, investing and financing activities	2
Increase/(decrease) in net cash and cash equivalents in the year	2
Net cash and cash equivalents at 31 December	2
RJRTH, Subsidiary guarantor (LB & RB)
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Net cash (used in)/generated from operating activities	(11)
Net cash (used in)/generated from investing activities	1
Net cash (used in)/generated from financing activities	10
All other companies, Non-guarantor subsidiaries
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Net cash (used in)/generated from operating activities	7,488	4,610	4,712
Net cash (used in)/generated from investing activities	(19,512)	(571)	(3,920)
Net cash (used in)/generated from financing activities	21,030	1,746	982
Net cash flows (used in)/generated from operating, investing and financing activities	9,006	5,785	1,774
Differences on exchange	(391)	179	(271)
Increase/(decrease) in net cash and cash equivalents in the year	8,615	5,964	1,503
Net cash and cash equivalents at 1 January	1,646	1,727	1,488
Net cash and cash equivalents at 31 December	10,261	7,691	2,991
Eliminations
Disclosure Of Condensed Consolidating Financial Information [Line Items]
Net cash (used in)/generated from operating activities	12	23	(53)
Net cash (used in)/generated from investing activities	(63)	(93)	(105)
Net cash (used in)/generated from financing activities	(7,397)	(5,975)	(1,106)
Net cash flows (used in)/generated from operating, investing and financing activities	(7,448)	(6,045)	(1,264)
Increase/(decrease) in net cash and cash equivalents in the year	(7,448)	(6,045)	(1,264)
Net cash and cash equivalents at 31 December	£ (7,448)	£ (6,045)	£ (1,264)